Market Roundup | 17 April 2013

FBMKLCI  1710.97           +10.44pts (+0.61%)             Volume  986.98mil     Value RM2,198mil

 1) KLCI continued to outperform the regional markets with index closing near its day's high backed by persistent buying interest in key heavyweights Tenaga+4% and IOICORP+1.8%. Regional were also higher in the morning after seeing DOW jumped on better housing starts and earnings before fizzling on concerns of global economic growth. Market breadth turned positive with advancers thumping decliners 530:228. Futures closed 1700.5pts (10.5pts discount).

2) Heavyweights: TENAGA+3.9% RM7.99, IOICORP+1.79% RM5.12, YTL+1.86% RM1.64, AXIATA+0.45% RM6.71, GENM+1.34% RM3.77, UMW+1.66% RM13.50, TM+0.92% RM5.50, PETGAS+0.84% RM19.20

3) DBT: GKENT 22mil @ RM0.87 (9.7% PUC), APEX 1.64mil @ RM1.12, DIJACOR 1.5mil @ RM1.50

4) Situationals:

INGRESS+8.56% RM1.78: Ingress Corp Bhd has received a takeover offer from its substantial shareholder and executive vice-chairman Datuk Rameli Musa and co-founder and group executive advisor Datuk Dr Ab Wahab Ismail for the 59.24 million shares or 70.19% of the shares not owned by them for RM1.85 per share, valuing the company at RM156.14 million.

5) EKOVEST

At its EGM today shareholders approved all the resolutions as set out in the Notice of EGM dated 26 March 2013.

i) The proposed transfer of 100% in Wira Kristal Sdn Bhd in exchange for new Ekovest shares totaling 126,723,735 new Ekovest shares at RM2.57 per share for a total consideration of RM325.68m

ii) Exemption to Tan Sri Dato Lim Kang Hoo and persons acting in concert from the obligation of extending a take over for all remaining shares.

Wira Kristal owns 70% of Nuzen Corp which operates the 34yr concession of the Duta-Ulu Kelang Expressway (Duke). Tan Sri Lim Kang Hoo who is a majority shareholder of Ekovest owns 40% in WK. Upon completion of transaction Tan Sri Lim will see his stake in Ekovest increase to 30.34%.

+ve as Duke has seen steady growth in revenue collected and has been net cashflow positive since 2011. Traffic volume is forecasted to increase 15.84% for 2013. Duke is expected to contribute positively to Ekovest earnings starting from FY14 as concession allows Duke to raise toll rates by 25% to 31% by 2014 with Phase two in negotiations. BUY

6) Market - The KLCI has been the out performing market +5.12% in Asia ex Japan over the past month. Increased uncertainties in the global arena could see this phenomenon continuing despite GE13 worries as foreign funds seek higher returns with YTD performance still lagging the region at +1.3%.