FBM30 1659.40
-3.92points (-0.24%) Volume
912.5mil Value 1,407mil
1) KLCI closed
lower inline with the weaker regionals which fell on concerns slowdown in
global growth could hurt corporate earnings. Eurozone debt situation also weighed on the market as
Spain delays request for bailout. Index was hit down at close after GENM and
SIME was sold down. Market breadth was negative with decliners leading gainers
380:302. Futures closed 1661pts (1.5 points discount).
2) Heavyweights: GENM-4.74% RM3.62, SIME-0.61% RM9.72,
GENTING-0.92% RM8.65, AXIATA-0.3% RM6.71, TM-0.63% RM6.27, UEMLAND-3.8% RM1.77, PBBANK+0.28% RM14.60, RHBCAP+1.38% RM7.35
3) DBT: MAYBANK 25mil @ RM8.97, EFFICEN 13mil @ RM0.155
(1.8% PUC, 6.9% premium), TRIUMPL 12.2mil @ RM0.86 (14% PUC, 9.5% discount)
4) Situationals:
MPHB+1.41% RM3.60:
Announced disposal of AA Anthony Securities to UOB KayHian Holdings for approximately RM170mil. The group
said that this disposal is part of its plan to streamline the group's business
operation and strategy so it can focus on the gaming business after the
demerger of the group's gaming business.
5) Malton
Silver Setup Sdn Bhd ("SSSB")a wholly-owned
subsidiary of Malton, had entered into a Joint Development Agreement with Batu
Kawan Development Sdn Bhd ("BKDSB") for the proposed joint
development of a piece of land situated at Batu Kawan, Pulau Pinang ("Land"),
measuring approximately
300 acres. The Land consists of a piece of land
identified as Parcel 4 which is situated at Batu Kawan, Mukim 13 Seberang Perai
Selatan, Pulau Pinang, measuring approximately 300 acres. On 31 March 2011,
BKDSB had entered into a sale and purchase agreement with the Penang
Development Corporation for the acquisition of the Land for purpose of mixed
development. The completion of the acquisition of the Land by BKDSB is
presently pending alienation of the Land to PDC (for a term of 99 years under
Qualified Title and ultimately to be held under a state lease) and full payment
of the consideration pursuant to the PDC-SPA by BKDSB to PDC.
The proposed development under the JDA is expected to
comprise mixed commercial and residential development. Based on the preliminary
plans, the gross development value of the Proposed Development is estimated to
be RM3.8 billion over 10 years.
BKDSB's entitlement under the JDA is 18% of the Gross
Development Value of the Proposed Development, subject to not less than RM300
million, which represents the minimum return expected by BKDSB from the Joint
Venture. SSSB shall be entitled to the remaining 82% of the Gross Development
Value of the Proposed Development. Under the JDA, SSSB is solely responsible to
meet the costs of the Proposed Development. Upon signing of the JDA, SSSB has
paid a sum of RM20 million as deposit to BKDSB as part of BKDSB's entitlement
under the JDA ("Deposit"). The entitlements of BKDSB shall be in kind
being parcel or parcels and/or units comprised in the Proposed Development,
whereby SSSB shall have the right to sell the BKDSB's entitlement on behalf of
BKDSB.
SSSB is responsible for the entire development financing,
which will be funded by internal generated funds and/or bank borrowings, the
proportion to be determined later. Under the JDA, SSSB is entitled to charge
the Land as security for development financing. This could stretch Malton's balance sheet especially if
they are eyeing any other high profile development projects.
6) Market - Current rotational play to continue with KLCI
capped around the 1660 levels as today's high inventory numbers for CPO in
September will weigh down on prices.
