FBMKLCI
1696.20 +5.93pts
(+0.35%) Volume 1,131mil Value RM1,716mil
1) KLCI erased early losses and closed 4points off its
all time high as buying interest continued after the Election Commission
announced polling dates to be 5th May. Plantation names were higher led by KLK,
IOICORP, FGV as MPOB reported inventory fell 11% MoM to 2.17mt in March which
is lower than estimates.
Market breadth turned negative with decliners leading
advancers 398:331. Futures closed 1698pts (2pts premium).
2) Heavyweights: MAXIS+2.4% RM6.74, TENAGA+1.05% RM7.70,
YTLPOWR+3.38% RM1.53, KLK+1.32% RM21.58, CIMB+0.39% RM7.77, IOICORP+0.63%
RM4.78, AMBANK+0.93% RM6.51, FGV+1.09% RM4.64
3) DBT: CLIQ 3.027mil @ RM0.58, SUNWAY 1.83mil @ RM3.03
(1.6% premium)
4) Situationals:
L&G-6.6% RM0.425: proposed a cash call worth
RM77.78mil to fund its acquisition of a 13-storey office tower in Putrajaya for
RM72.49mil cash from a subsidiary of Malaysia Land Properties Sdn Bhd. Company
proposed a rights issue of RM77.78mil nominal value of five-year, 1%,
irredeemable convertible unsecured loan stocks (Iculs) at 100% of the nominal
value of 13 sen each on the basis of 13 sen for every L&G share held.
GBGAQRS+1.08% RM0.94: It said it was disposing 2 parcels
of freehold land in Juru, Seberang Perai Tengah, for RM50m cash to Ocean Mix
Sdn Bhd. Company expects to record RM15m net gain from the sale.
5) LBS
LBS and Dragon Hill entered into a conditional sale and
purchase agreement with Zhuhai Holdings and Jiuzhou Tourism Property for the
proposed disposal by Dragon Hill to Jiuzhou Tourism Property of the following:-
i. Lamdeal Consolidated Development Limited for a total sale consideration of
HKD1,559.50 million (equivalent to approximately RM621.62 million); and ii.
Lamdeal Golf & Country Club Limited representing the entire issued and
fully paid-up share capital of Lamdeal Golf, for a total sale consideration of
HKD90.50 million (equivalent to approximately RM36.07 million). . The Disposal Consideration was arrived at on
a willing buyer-willing seller basis, after taking into consideration the
adjusted net asset value.
Mode of settlement via cash HKD500m, HKD300m via
225,563,909 new ordinary shares of HKD0.10 each in Zhuhai Holdings ( at an
issue price of HKD1.33 per, and HKD850m via Deferred cash payment.
Utilisation of the HKD500m will be for general working
capital HKD234m and reduction in bank borrowings HKD250m. Borrowings will thus
be reduced from RM429.3m to RM379.3m bringing gearing down to 0.55x.
6) Market - With election date now set on 5 May, the next
three weeks of campaigning is expected to see volatility in the market with
focus remaining on mid cap situationals.