Market Roundup | 17 Jan 2013

FBMKLCI 1681.09      -1.86pts (-0.11%)           Volume  1,446mil         Value RM1,814mil

 1) KLCI fell erasing earlier gains as investors grew cautious after The World Bank cut its global growth forecast for this year as austerity measures, high unemployment and low business confidence weigh on economies in developed nations. Rotational play saw property developers firmer led by UEMLAND+4%, KSL+9%, IGB+2%. Market breadth turned negative with losers leading gainers 385:330. Future closed 1684.5 (3.5points premium)

2) Heavyweights: SIME-0.73% RM9.52, CIMB-0.65% RM7.61, DIGI-0.58% RM5.14, AMBANK-0.9% RM6.59, MAYBANK-0.22% RM9.02, GENM+4% RM3.67, GENTING+1.14% RM9.78, UEMLAND+4.09% RM2.29

3) DBT: MARCO 53.72mil @ RM0.145 (7.3% PUC), HUBLINE 17mil @ RM1.02, BAHVEST 10mil @ RM0.77 (2.86% PUC, 9.7% discount)

4) Situational:

SCOMI+2.78% RM0.37: Scomi announced that it will hold an extraordinary general meeting on January 31st to vote on the proposed issuance of bonds worth RM110mil to IJM corp. after conversion of the bonds, this would make IJM the largest shareholder with about 25% stake. This move paves the way for IJM corp to become a strategic partner in Scomi.

5) KIM LUN

Announce that its had accepted the letter of award from Setia Indah Sdn. Bhd for the construction of apartments and ancillary buildings in Johor Bahru, Johor. The contract sum for the Project is Ringgit Malaysia Eighty Seven Million Seven Hundred Forty Thousand One Hundred Sixteen and Cents Ninety. The construction work is expected to be completed by January 2015.

6) Market - Renewed talk of Elections will continue to set the cautious mood with the KLCI stuck below the key resistance of 1700pts. We deem this to be an opportunity to accumulate stocks that have lagged, including MISC, MPHB, SPSetia