FBM30 1660.67
+7.15points (+0.43%) Volume
1,302mil Value 2014.5mil
1) KLCI surged to close above 1660pts mark boosted by
gains in banks including Maybank and CIMB as regionals were positive after U.S. industrial production beat estimates and Spain kept its
investment grade credit rating from Moody's. Rotational play saw tech+3% with
gains seen in JCY+7%, UNISEM+4% and ETITECH+11%. Market breadth was positive
with advancer leading decliners 403:304. Futures closed 1665pts (4.5 points
premium).
2) Heavyweights: MAYBANK+2.2% RM9.28, CIMB+1.32% RM7.65,
PBBANK+0.96% RM14.68, PCHEM+1.23% RM6.59, AXIATA+0.62% RM6.51, SIME+0.41%
RM9.79, TM-2.09% RM6.10, PETDAG-1.34% RM22.06
3) DBT: ASIABIO 8.8mil @ RM0.075 (2.3% PUC), PESONA
6.4mil @ RM0.25 (12% discount), BENALEC 5mil @ RM1.32 (3% discount), MAHSING
5mil @ RM2.25 (6.25% discount)
4) Situationals:
GPACKET: According to the news report which quoted
executives familiar with the matter, GPacket has received bids for its 61%
stake in Packet One. It was reported that there are three foreign and two local
bidders respectively for the stake. SK Telecom first emerged as a substantial
shareholder of P1 in 2010 when it bought a 26% stake from GPacket in two
tranches for RM374 million. The sale of the strategic sales value P1 at RM1.44 billion. After selling off P1, GPacket will only
have its solutions business, which sells software and equipment such as modems
to mobile operators.
5) MAYBANK
As part of their dividend reinvestment plan,, Maybank
will be issuing 173,144,233 new Maybank Shares pursuant to the dividend
reinvestment plan in respect of the interim cash dividend of Maybank for the
financial year ending 31 December 2012. The new Maybank Shares to be issued
represent approximately 88.19% of the total number of 196,338,821 new Maybank
Shares that would have been issued pursuant to the 5th DRP had all the entitled
shareholders of Maybank elected to reinvest their respective electable portions
into new Maybank Shares.
This new issue plus the recent 412m new shares @ RM8.88
via private placement will be dilutive in earnings to the tune of around 5% and
will be an overhang over its share price. We recommend a trim with a possible
buy back at support levels of RM8.80 and RM8.40.
6) Market - Strengthening global market sentiment
continue to spillover into the local bourse. We continue to recommend a switch
into laggards for a year end 1Q play. Stock we like include TimeCom, Waseong,
Maybulk.