FBM30 1643.31
+6.65 points (+0.41%) Volume
807.5mil Value 1,068il
1) KLCI continued to rise post Budget aided by gains in
tobacco and gaming stocks following Governments' decision not to increase
taxes. Index recovered from its low of 1633.39 (-3.27pts)
bucking the weaker regional which fell on disappointing economic data in China
and Japan that offset positive Spanish stress test results. Market breadth was
positive with gainers leading losers 342:318. Futures closed 1649pts (5.7 points discount).
2) Heavyweights: GENTING+2.18% RM8.90, CIMB+0.8% RM7.56,
PETGAS+2.11% RM19.40, MAYBANK+0.56% RM9.06, GENM+2.57% RM3.59, IOICORP+1%
RM5.03, AXIATA+0.46% RM6.53, DIGI-0.57% RM5.25
3) DBT: INARI 1.6mil @ RM0.20 (41% discount), MFCB 1.3mil
@ RM1.64
4) Situationals:
MBMR+3.57% RM3.48: MBMR has entered a 42:58 JV with Japan's Hino Motors Ltd to establish a manufacturing plant in Malaysia. The
plant which involve an initial investments of RM140mil will be sited on 17
hectares in Sendayan Tech Valley, Negeri Sembilan is expected to begin
construction by Feb 2013. With Annual production capacity of 10k, the plant
will manufacture full range of small, medium, heavy duty Hino trucks as well as
buses.
5) WASEONG
The company via wholly owned subsidiary Total Oil Tech
Sdn Bhd has entered a stock redemption agreement with DeepWater Corrosion
services Inc, James Britton and Valarie Britton for the disposal of 51% in DCS
via a stock redemption by DCS for a cash consideration of USD3.2m. DCS is
involved in the manufacturing and the provision of services for offshore
corrosion control systems. The valuation is based from the average EBITA multiples of O&G service companies in
the USA. Neutral
6) Market - The market greeted the BUDGET with a muted
response with the cheers mainly reserved for the gaming, liquor and tobacco
sectors who all were relieved when no new sin taxes were announced. In view of
the continued uncertainties over the global recovery, the gaming sector remains
a good bet with decent valuations and attractive yields. Our top picks remain
MPHB and GentingMsia.