Market Roundup | 3 jan 2013

FBM 1692.65 +17.93pts (+1.07%) Volume  1,124mil  Value RM1,820mil

 

1) KLCI rebounded and closed at all time high as global markets continued to rally following an agreement preventing the US from going off the fiscal cliff. China also showed its services sector expanded in December ensuring China economy expansion remains firmly intact. Key heavyweights were well supported with late surge in DIGI, UMW, GENM saw index adding 4 points at auction. Market breadth was positive with gainers thumping decliners 538:203. Future closed 1697.5 (5points premium). 

2) Heavyweights: AXIATA+3.5% RM6.81, DIGI+2.11% RM5.31, SIME+1.37% RM9.59, GENTING+2.26% RM9.50, UMW+4.5% RM12.50, GENM+2.8% RM3.67, PPB+4% RM12.48, CIMB+0.53% RM7.64 

3) DBT: WCT 3mil @ RM2.31, PRTASCO 2.5mil @ RM1.10 (11.6% premium)

4) Situational:

JCY+4.7% RM0.665: Share price rose after JCY could be a beneficiary from the fire that occurred at Notion VTec Bhd main manufacturing plant in Klang, Selangor. Following this tragedy about 10% of the groups revenue could be affected. Notion is taking steps to start rehabilitation of the affected building and other measures to try and recover the installed capacity within 4 months.

5) Boustead Holdings : Further to it's announcement dated Dec 27 on the acquisition of a 80% stake in Astacanggih SB and the proposed acquisition by Astacanggih & Bakti Wira Development (100% subsid of Boustead) of a piece of freehold development land measuring 200 acres in Kelang, Selangor, Boustead said that the acquisition was part of a corporate exercise that will present the group with an opportunity to increase it's landbank & enjoy economies of scale by combining it with the adjacent 700 acres that it already co-owns. The total price works out to RM160m or RM18.37 psf. Boustead was only able to conclude the final arrangements in the third week of December, and guided that it will be able to generate a return on development cost of 25% from the RM160m investment; +ve

 

6) Mkt: strong market momentum will ensure continued buoyant trading with recent laggards awakening from their slumber while FBMKLCI may consolidate as it approaches the psychological 1700 level resistance.