FBM 1627.73 pts
-9.6 pts (-0.59%) Volume: 1.16b Value: RM2.0b
1) The KLCI again demonstrated it's vulnerability towards
domestic uncertainties, despite the firmer regional markets which benefited
from a combination of improving global liquidity, stronger economic numbers
from China & amid speculation that the Federal Reserve will renew it's
commitment to asset purchase. Election fear again resurfaced in mid-morning,
sending the index to it's low of -24 points before recovering gradually to
close the day 9 points lower. Notable was the impressive main market debut of
China Automobiles Parts Holdings Ltd ( CAP), chalking a peak premium of 88% over it's IPO price of 68s, before
retreating to close +15%. Market breath remained negative, with losers
outnumbering gainers 529:209. Futures closed 1625 points ( 2.7 pts disc).
2) Heavyweights : IHH +1.2% RM3.25, LMCEMNT-2.8% RM9.37,
YTLPWR-2.5% RM1.53, PPB-2% RM12.44, GENTING-1.8% RM9.35, KLK-1.5% RM21.74,
IJM-1% RM5.02, DRB -1.1% RM2.59, MISC-0.9% RM4.49.
3) DBT : HUBLINE 70m @ RM0.06 ( 2.2% PUC), HUBLINE-WA 70m
@ RM0.02 ( 4.6% puc), TECFAST 21.9m @ RM0.08 ( 14% PUC, 30% discount).
4) Situationals :
SIGGAS -3.6% RM0.66: after it was announced that Co had
entered into several agreements for it's proposed acquisition of the entire
equity interest in Sing Swee Bee Enterprise Pte Ltd & SBB Cryogenic
Equipment Pte Ltd for RM151.2m. The
purchase will be financed via a combination of issuance of new SIG shares at
60s per share and cash. The move will allow SIG to enhance it's involvement in
the industrial gas business & tap into the businesse of the 2 acquiree
companies.
FGV unch RM4.59 : Co announced that it has accepted the
takeover offer for it's 20% stake in Tradewinds (M) Bhd for a cash offer price
of RM9.30 per share. Rational to accept the offer is the opportunity to realise
an attractive return of 165% within 3 years of the investment. It's estimate
that FGV will receive cash of RM551m and is expected to book a gain of RM57.5m
upon completion of the acceptance deal. The proceeds will be used for business
expansion & working capital.
5) SALCON
The company has been awarded two contracts;
i) Design, Construction, Commissioning, Completion, Operation and
Maintenance of the First Module (35,000 PE) of the 65,000 PE Sewage Treatment
Plant and Pumping Station (35,000 PE) at Elmina East Development, Shah Alam
over a period of 65 weeks commencing from 12 February 2013 to 13 May 2014 worth
RM11.7m.
ii) Design, Construction, Testing and Commissioning Completion and Handover
of one Module of 20,000 PE
Intermittently Decanted Extended Aeration (IDEA) Activated Sludge Sewage
Treatment Plant (Module No.5) on Part of Centralised Sepang Permai Catchment
Area (GSG146) for Mixed Development at Daerah Sepang, Negeri Selangor Darul for
12 months commencing from 21 January 2013 to 20 January 2014 worth RM3.62m.
On another note, The Board has confirmed that it is
Salcon's plan to grow the Company's water assets in China from the current
capacity of 1,300 million litres per day (MLD) to about 3,000 MLD for a
meaningful listing in China.
In order to achieve the objective, Salcon has to further
expand the capacity of the China water assets by acquiring water assets which
meet the Company's investment criteria and/or seek partners who share similar
objective.
6) Market -
Quieter ahead of holiday shorten weeks in the days ahead. Markets will be
closed on 1.11,12 Feb.
