FBMKLCI 1614.14
-19.21pts (-1.18%)
Volume 1,081mil Value RM2,013mil
1) KLCI were confronted with constant selling pressure as
index fell to a low of 1610.05 (-23.3pts) on concerns of the impending GE13 and
ahead of the CNY long weekend. Key heavyweights paced losses led by Telco's,
YTL and GENM. Market value traded breached RM2bn as market breadth was firmly
negative with decliners more than tripling advancers 547:175. Future closed
1600 (14points discount)
2) Heavyweights: DIGI-5.3% RM4.66, AXIATA-1.86% RM6.16,
TM-2.74% RM5.33, GENM-3.45% RM3.64, YTL-4.24% RM1.58, GENTING-1.25% RM9.46,
KLK-2.78% RM20.98, HLBANK-2.06% RM14.30
3) DBT: HYTEXIN 41.84mil @ RM0.12 (27.89% PUC, 45.5% discount),
CSL 3mil @ RM0.88 (21% Premium)
4) Situational:
SUNREIT-0.65% RM1.53: Sunreit has fixed the issue price
of its 214.77 million new placement shares at RM1.49 each to raise RM320
million. Group stated that the proceeds from the exercise will be used to fully
repay the company's bank loans used to finance the acquisition of the Sunway
Medical Centre property from Sunway Bhd for RM310 million, and defray related
expenses.
5) MAS
Proposed to reduce comp PUC via the cancellation of
RM0.90 of its par value, giving rise to a credit amount of RM3.008bn which will
be utilized to partially set off their accum losses of RM7.86bn. It also plans
to reduce the company's share premium acc by up to RM4.995bn to also off set
its accum loss.
After this capital restructuring, the company then
intends to under go a rights issue to raise gross proceeds of RM3.1bn. The
actual capital outlay required by shareholders to subscribe for their
entitlements will depend on the final entitlement basis and issue price.
The gross proceeds will be utilized in the following
manner; working capital RM1.33bn, capex RM987m, repayment of borrowings RM777m.
The on going fleet renewal program should help enhance
the group's fuel efficiency which now accounts for 38% of monthly operating
cost.
We remain overall cautious over the industry.
6) Market - Election fever once again shook sentiment and
this phenomenon is expected to continue with traders reducing exposure ahead of
the Lunar New year holidays. KLCI next support levels seen around the
1580-1600pts.