Wednesday, October 24, 2012

Market Roundup | 23 Oct 2012

FBM30 1664.90     +2.95points (+0.18%)  Volume 1,011mil   Value 1,358mil
 
1) KLCI recovered from its morning weakness (Low: 1658.03 -3.92pts) with index trending higher after midday on support of key heavyweights led by Telcos after DIGI announced its 3QFY2012 results at midday. Overall market sentiment remained cautious inline with regionals which ended mixed on weaker corporate earnings. Market breadth stayed negative with decliners leading advancers 372:299. Futures closed 1669.5pts (4.6 points premium).
 
2) Heavyweights: DIGI+0.74% RM5.48, TM+1.17% RM6.06, PPB+2.28% RM13.44, BAT+1.79% RM65.00, IOICORP+0.6% RM5.06, PBBANK+0.27% RM14.98, PCHEM-0.92% RM6.45, AMBANK-0.63% RM6.35
 
3) DBT: SUNWAY 12.4mil @ RM2.30 (1% PUC, 8.7% discount), SHL 4.5mil @ RM1.27 (1.1% PUC, 12% premium), LEESK 4.2mil @ RM0.11 (15.4% discount)
 
4) Situationals:
KLCCP+0.5% RM6.10: Share price rose after news reported that company may list its assets worth over RM12bn in a REIT in 6-9months time frame. This includes Petronas Twin Towers office and Suria KLCC Shopping Mall. A High level source says that there are still "some tax-related issues" that needs to be sorted out first.
 
5) PHARMANIAGA
Pharmaniaga Marketing Sdn Bhd entered into a Memorandum of Understanding with Pusat Pakar Dialysis Traktif Sdn Bhd ("PPDT"), for the initial intention and understanding to explore the opportunity in dialysis business and to enter into a strategic partnership in the business of haemodialysis.  Objectives of the MOU The Parties are interested in exploring the possibility of engaging in a mutual beneficial business relationship in which the Parties would create strategic partnership in the business of hemodialysis and such other business arrangements as may be mutually agreed upon in writing by the Parties from time to time.
 
The MOU shall be valid for a period of one (1) year commencing from the Effective Date. +ve as Pharma continues to seek other forms of revenue streams in healthcare and become less reliant on the Govt concession to produce generic drugs which expires in seven years.
 
6) Market - Rotational play to continue as evident by the number of mid caps dominating the volume board. Astro which has suffered its third day of sell off since its initial listing last Friday could possibly see bargain hunting below the RM2.70 levels as this marks the low end of the bidding range pre IPO.