1) KLCI closed sharply lower weighted by telco names
AXIATA and DIGI as investors took profits after US House Republican leaders
canceled a planned vote that would permit higher taxes as optimism of a budget
resolution fades. Index ended at day’s low as key heavyweights AXIATA, BAT,
DIGI and HLFG were hit down at close. Market breadth turned negative with
decliners trouncing gainers 380:264. Future closed 1665 (6points premium).
2) Heavyweights: DIGI-2.8% RM5.21, AXIATA-1.65% RM6.57, IOICORP-1.6% RM4.92, GENM-3.33% RM3.48, BAT-4.1% RM58.02, CIMB-0.65% RM7.63, HLFG-4% RM13.04, IHH+2.07% RM3.45
3) DBT: ASTRO 10.285mil @ RM2.899, PRTASCO 9.763mil @
RM1.20 (3.25% PUC, 21% premium),
4) Situational:
XINQUAN+3.95% RM0.79: Xingquan International Sports
Holdings will continue to expand their business in China, targeting a setup of
between 30-50 new self-operated shops for its Gertop brand in 2013. Group plans
to invest RMB1.5 million to open these self-operated shops for the next two
years. These shops will be set up mainly in shopping centers, a change from the
company’s procedure of selling through distributors.
5) TH HEAVY
TH Heavy entered into the following agreements:
(i) a share purchase agreement with McDermott (M)
Holdings Sdn Bhd for the proposed acquisition by THHE of such numbers of
ordinary shares of RM1.00 each in BMD, representing 30% equity interest in BMD
from MDHSB, for an indicative RM cash consideration equivalent to USD25.466
million; and
(ii) an SPA with McDermott Capital Malaysia Sdn Bhd, for
the proposed disposal by THHE of such numbers of ordinary shares of RM1.00 each
in THF, representing 30% equity interest in THF to MDC, for an indicative RM
cash consideration equivalent to USD25.466 million.
TH Heavy will enter into various joint venture agreements
upon the completion of the Proposed Acquisition of BMD and Proposed Disposal of
THF for the purpose of the establishment of joint ventures with MDHSB., JR
McDermott, BMD, also MDC,THF, JRMSA.
The Proposals will enhance THHE‟s service offerings from the existing fabrication construction services to create a fully integrated EPCI services company. Upon completion of the Proposals, THHE will be able to offer a one stop end-to-end EPCI service solution, enter into a higher value added business sector, cross selling of additional services to existing customer base and embark on higher margin integrated EPCI jobs with PETRONAS and other oil majors and thus elevate THHE into a Tier 1 player in the oil and gas sector in Malaysia. The Proposals are expected to provide an opportunity for THHE and its subsidiaries to actively pursue local and international potential projects and diversify its client base by providing more complex, larger scale and higher value conventional, floating and subsea, umbilicals, risers and flow lines (“SURF”) related solutions within the upstream offshore oil and gas markets. +ve
6) Market – Choppy trading pattern on thin volumes again
as concerns swing once again towards the US Fiscal cliff.