FBMKLCI 1652.83
+8.94pts (+0.54%)
Volume 822.2mil Value RM1,948mil
1) KLCI outperformed the regionals and rallied to a high
of 1660.80 (+16.91pts) on gains seen in key heavyweights led by GENTING, CIMB,
UMW and MAYBANK after a foreign house upgraded Malaysia to overweight. Regional
were weaker due to ongoing concerns over risks in the Cyprus financial bailout.
Index pared its gains as investors took profit ahead of the GE13. Market
breadth were positive as advancers led decliners 379:285. Future closed 1656
(3points premium)
2) Heavyweights: GENTING+2.8% RM9.90, CIMB+0.96% RM7.36,
UMW+3.2% RM13.50, MAYBANK+0.65% RM9.29, PBBANK+0.5% RM16.10, DIGI+1.33% RM4.59,
AXIATA+0.62% RM6.49, TM+1.32% RM5.37
3) DBT: SUNREIT 6.64mil @ RM1.50, MQTECH 2.425mil @
RM0.08, INTEGRA 1mil @ RM1.28
4) Situational:
ALAM+1.09% RM0.93: Alam Maritim Resources Bhd's
subsidiary Alam Maritim (M) Sdn Bhd has been awarded a RM182 million contract
by an independent oil and gas exploration and production company. The job will
be for the provision of underwater services comprising subsea inspection,
maintenance and repair. The contract is for a period of three years with an
extension option exercisable by the client for another one year.
5) SIME
Sime Darby, proposes to establish a joint venture with AH
Holdings Health Care Pty Ltd, a wholly-owned subsidiary of Ramsay Health Care
Ltd, whereby SD Holdings will inject its healthcare and education business, and
AHHC will inject its Indonesian healthcare business into Sime Darby Global
Healthcare Sdn Bhd ("SDGH"). SDGH will subsequently be renamed as
Ramsay Sime Darby Health Care Sdn Bhd. SD Holdings and AHHC will each have an
end shareholding in SDGH of 50%. SDGH will acquire:
(a) from SD Holdings, pursuant to the terms of the
Malaysian Share Sale Agreement, 100% of the shares in Sime Darby Healthcare Sdn
Bhd ("SD Healthcare") for a consideration to be satisfied through the
issuance of new SDGH Shares, which will result in SD Holdings having an initial
ownership interest of 75.7% in SDGH, subject to adjustment; and (b) from AHHC, pursuant to the terms of the Indonesian
Share Sale Agreement, 100% of the shares in Affinity Health Care Holdings Pty
Ltd ("AHCH") for a consideration to be satisfied through issuance of
new SDGH Shares, which will result in AHHC having an initial ownership interest
of 24.3% in SDGH.
SD Holdings will sell such number of SDGH Shares to AHHC
to equalise the shareholding of SD Holdings and AHHC in SDGH. SD Holdings will
transfer approximately 25.7% SDGH Shares to AHHC for a total cash consideration
of RM390 million (RM187.3 million on Completion Date; and remaining RM202.7
million to SD Holdings over a 3-year period in accordance with the terms of the
Shareholder Equalisation Agreement.
The JV is part of the Sime Darby Group's strategy to
accelerate the growth plans of its healthcare business to penetrate and capture
the rapidly growing opportunities in Asia. The JV represents an opportunity for
Sime Darby to partner with Ramsay, a financially sound and reputable healthcare
group, and to leverage on Ramsay's core competencies in managing private
hospitals given its extensive experience in the healthcare sector globally. The
JV also offers an opportunity for Sime Darby to gain a foothold in the Indonesian
healthcare market which has attractive economic and demographic fundamentals
and opportunities in the mid to long term.
In addition, the JV will enable Sime Darby to monetise
its 50% investment in SD Healthcare by recognising an estimated net gain on
disposal of RM340 million.
+ve as this could be a major transformation for its
healthcare unit which historically only contributes up to RM30m PBT/pa.
6) Market - Follow through buying especially in the
financial which have generally been lagging could see the KLCI trend higher.
The breach above 1665pts would see momentum carry the market closer back to the
1680pts levels.
