FBMKLCI
1687.99 -0.66pts
(-0.04%) Volume 1,074mil Value RM1,824mil
1) KLCI ended marginally lower, ending a 4 days winning
streak as market took a breather following recent record rally and inline with
cautious regional market that saw US falling on weaker labor report. Market
were also weighted by effects of the bird flu outbreak on the regional economy
should it worsen. Glover markers TOPGLOV+4%, KOSSAN+2% and SUPERMX+6% rose in
expectation of higher demand. Market breadth was positive with gainers
outpacing decliners 472:268. Futures closed 1683pts (5pts discount).
2) Heavyweights: MAYBANK-0.62% RM9.64, IOICORP-1.04%
RM4.75, GENTING-0.79% RM10.10, AMBANK-1.37% RM6.48, TENAGA+1.20% RM7.61,
CIMB+0.66% RM7.67, PCHEM+0.95% RM6.35, DIGI+0.87% RM4.63
3) DBT: BJLAND 10.388mil @ RM0.815, EFFICEN 3.9mil @
RM0.13, SUNWAY 2.3mil @ RM3.05 (2.4% discount)
4) Situationals:
5) Oldtown
The company entered a SPA with Chan Koon Hung, Law Cho
Hong and Lee Siu Chung the vendors, to acquire 1.4m shares in Advance City Ltd
representing 70% of the PUC of ACL for HK67m.
ACL is principally engaged in the trading and
distribution of coffee products in HK, Macau and Guangdong, China. The company
recorded a PAT of HK14.2m for FYE 2012 on NA of HK29.928m or 6.7x PE and 3x
P/NA.
Funding for the acquisition will come from Oldtown's
private placement proceed completed in Dec 2012.
ACL will source coffee products directly from White
Coffee S/B a wholly owned subs for distribution and allow OldTown greater
management control.
6) Market - Situational plays continue to drive a
positive market breath despite stagnating KLCI. We expect this phenomenon to
continue up to the polling dates with the Election committee set to announce
dates on April 11.