FBMKLCI 1642.08
+6.10pts (+0.37%)
Volume 966.73mil Value RM1,797mil
1) KLCI were firmer closing near its day's high of
1643.42 (+7.44pts) as global markets were boosted by speculation that central
banks around the world will continue with measures to support economic recovery
and China's pledge to boost fiscal spending to maintained its economic growth
target of 7.5% for 2013. Property+1.21% continued to outperform led by
UEMLAND+3.6%, SPSETIA+1.82% and IJMLAND+3.26% while market breadth turned
positive with advancers almost doubling decliners 432:230. Future closed 1640.5
(1.5points discount)
2) Heavyweights: DIGI+2.40% RM4.68, MAYBANK+0.55% RM9.10,
IOICORP+1.03% RM4.90, UMW+3.6% RM12.98, GENTING+0.61% RM9.85, TENAGA+0.58%
RM6.96, PPB-2.1% RM12.12, PCHEM-0.63% RM6.36
3) DBT: HUBLINE 42mil @ RM0.06, PMETAL 1.5mil @ RM1.80
4) Situational:
MAS+2.94% RM0.70: Shareholders have approved the proposed
capital reduction and rights issue in the EGM today. MAS will reduce its par
value by 90sen and aims to raise RM3.1bn to be utilized for capital
expenditure, repayment of borrowings and working capital. This will reduce its
gearing from 5.44x to below 2x.
5) Top Glove
The company has proposed to subscribe for 2.7m ord shares
and 9.504m Class A pref shares in Value Add Sdn Bhd representing 27% of the
total equity of VA for a total consideration of RM12.2m via two tranches. Upon completion of the first subscribtion, VA
has entered a S&P with T.S Law Realty S/B to acquire the commercial
building known as East Wing Icon @ Tun Razak for RM226m, consisting of a gross
built up area of 278,182 sq ft and net lettable area of 267,907 sq ft including
301 parking bays. The building is 3 years old and is 98% occupied. The purchase
consideration will be funded via a combination of borrowings and equity through
subscription of shares in VA by its shareholders. The property was aquired at RM226.8m by TS Law in 2009.
The purchase consideration seems fair at RM812/sq ft for
a grade A class building in the KLCC area but its net cash position of approx
RM230m, may have been better utilized in consolidating its market leader
position via possible M&As.
6) Market - Surprisingly resilient despite the looming GE
and problems faced in Sabah. We would advocate a sell into strength especially
above the 1650pts as we don't for see a break out above the 1700pts levels
until the political uncertainty is resolved.
