FBM 1684.57 -5.36pts (-0.32%) Volume 1,145mil Value RM1,340mil
1) KLCI eased from its high of 1693.72 (+3.79pts) with index closing at day's low as investors took profit on recent outperformers while plantation-0.48% after MPOB showed stocks reached all time high of 2.62mil tonnes. Local market bucked the positive regionals which rose after China reported December export jumped to 14.1%. Market breadth was negative with decliners edging gainers 386:310. Future closed 1689.5 (5points premium).
2) Heavyweights: IOICORP-1.76% RM5.03, DIGI-1.34% RM5.15, GENTING-0.61% RM9.74, SIME-0.31% RM9.57, MAYBANK-0.22% RM9.02, ASTRO-2.3% RM2.98, YTL-1.09% RM1.82, YTLPOWR-1.8% RM1.64
3) DBT: IRIS 18.037mil @ RM0.15 (1.14% PUC, 14.3% discount), RGB 10mil @ RM0.08, DIALOG 3mil @ RM2.42, MBMR 2.957mil @ RM3.41
4) Situational:
DRBHCOM+2.66% RM2.70: News reported that Tan Sri Syed Mokhtar Albukhary who via his private Etika Strategi Sdn Bhd controls 56% of DRBHicom plans to privatise and delist the conglomerate between Rm3.50 and Rm4.00 a share. Hong leong bank and Public bank will be the banks that will help provide the financing for the exercise and is scheduled to take place in 1Q FY13.
5) HSL : announced that it has secured a project worth RM48.9m from RECODA ( administrative body of SCORE) in Samalaju, Bintulu Division. The contract entitled "Proposed Infrastructural works at Samalaju Industrial Park Phase 3 Stage 2" includes site clearing, earthworks, drainage, pavement works & external works for a major road of 5km that will serve the expanding industrial park.Site handover is at end January 2013 with a contract period of 18 months ; +ve, this is HSL's first major tender win in 2013, after bagging some RM525m worth of contracts in 2012 & RM313m in 2011. Group's OB stands at just over RM1.9b. Trading at FY12/13 PE of 8.5x and known for it's execution track record, strong presence in Sarawak, no gearing presently & cash reserves of some RM200m - BUY.
6) Mkt: is expected to continue its consolidation of recent gains. Any weakness is an opportunity to accumulate into selective stocks - Naim, Perdana, Alam, Dialog, MISC, Scomi, LionInd, DRB.