FBM 1614.32
-4.23pts (-0.26% )
Volume 1,004mil Value RM1,491mil
1) Investors continued to shy away from local market as
KLCI fell for the 3rd consecutive days bucking the regional markets which rose
on optimism from recent positive economic data in US and China. Index were
weighted by key heavyweights with telcos, PCHEM and MHB leading the major
losers. Market breadth was negative with decliners doubling advancers 435:216.
Future closed 1608.5 (6 pts discount).
2) Heavyweights: DIGI-2.73% RM4.64, PCHEM-1.74% RM6.20,
AXIATA-0.68% RM5.83, PETDAG-2.4% RM21.94, MHB-5.39% RM4.39, YTL+2.87% RM1.79,PBBANK+0.26% RM15.40, GENM+1.16% RM3.50
3) DBT: HUBLINE 108mil @ RM0.07 (3.3% PUC, 16% premium),
HOVID 20mil @ RM0.25 (2.62% PUC)
4) Situational:
GAB+0.24% RM16.58: Guinness Anchor Bhd is likely to
increase beer prices by 2% to 4% within the next 12 months, said its managing
director Charles Ireland. GAB had increased the price of Heineken at the end of
July this year, following a rebranding of the beer. The hike was also in line
with Heineken's global pricing strategy to be a premium beer, which is priced
about 30% higher than mainstream beer such as Tiger.
5) KPJ
Entered a conditional sale and purchase agreement with
Aureos SEA Fund and GSB Private Funds to acquire their entire equity in VPCL of
8m pref shares for a consideration of RM60.5m. VCP operates Vejithani Hospital,
a multi specialty private hospital in Bangkok. It registered a PBT of THB77.5m
and has net assets of THB269.9m for FYE Dec 2011. The preference shares are
entitled to a THB0.75 dividend, convertible to ordinary shares at 1:1 and
posses 23.37% of voting rights. The purchase consideration was based on 9x
estimated EBITDA less net debt for FYE Dec 2012.
This expands KPJ's foreign assets which include 2
hospitals in Indonesia and a retirement village in Australia. +ve for regional
growth.
6) Market - The KLCI has been one of the worst performing
markets in the region for the past month falling in excess of 3% mainly due to
uninspiring result season thus far and continued election worries. This sell
off has provided a good opportunity to accumulate quality counters at
reasonable prices ahead of the traditional 1Q rally. Buy MISC,