FBM30 1661.47
+11.72points (+0.71%) Volume
965mil Value 1,96mil
1) KLCI hit a new all-time high of 1662.14 (+12.39pts)
buoyed by recovery of plantation names led by SIME and KLK while Tenaga reached
its highest since 2008. Regionals were also marginally positive following
positive service sector data overnight with attention now on ECB meeting
tonight. Market breadth was positive with advancers leading losers 400:298.
Futures closed 1665.5pts (4points premium).
2) Heavyweights: SIME+2.87% RM9.68, TENAGA+2.59% RM7.13,
CIMB+0.93% RM7.63, PETGAS+2.13% RM20.16, KLK+2.97% RM21.52, IOICORP+1.01%
RM5.02, XIATA+0.45% RM6.70, GENM+1.61% RM3.78
3) DBT: GLOTEC 40mil @ RM0.07, ETITECH 10mil @ RM0.095,
KINSTEL 10mil @ M0.40
4) Situationals:
AZRB+2.14% RM0.715: Share price rose after PNB awarded a
RM673mil contract to AZRB to build a 50 storey hotel tower which
will be situation in the old MAS building in Jalan Sultan Ismail. This contract
brings AZRB's orderbook to RM2.42bn.
5) KLK
Kuala Lumpur Kepong Berhad entered into a Sale and Purchase Agreement
with Mr. Hii Eii Sing ("the Vendor"), a Malaysian national, to
acquire approximately 51% of the issued and paid-up share capital of
Collingwood Plantations Pte Ltd ("CPPL"), a Singapore registered
company for approximately USD8.67m. . The principal activities of CPPL are
forestry, tug and barging services, and investment holdings. CPPL's sole
wholly-owned subsidiary is Ang Agro Forest Management Ltd ("ANG"), a
company incorporated in Papua New Guinea with registered rights over the
following pieces of land in PNG totaling 44342ha with leases ranging from
49years to 99 years around the town of Tufi in Oro Province. ANG intends to
develop the PNG Land into oil palm plantations in due course.
Pursuant to the SA, the Vendor will grant to KLK an
option to acquire approximately 4.4% of CPPL, exercisable in 6 equal tranches
of approximately 0.73% of CPPL every year for 6 years. KLK acknowledges that
infrastructure and accessibility are currently difficult at this stage and
development costs will be high, these disadvantages are counterbalanced by the
fertile soil and friendly terrain of the PNG Land.
Expect this trend to continue as more plantation
companies explore green field areas as far as Africa as cost here of land
domestically is no longer viable to support expansion.
6) Market - The surprising push on the KLCI today to
another record close highlights the high liquidity of the domestic funds in
search of a better return. This could see strategic accumulation into the
underperforming O&G sector for a play in 2013. Stocks in this sector at
attractive levels include, Dayang, Coastal, Yinson, Waseong, Petra Energy,
Uzma.