FBM KLCI 1766.72
-16.31pts (-0.91%) Volume 2.498b
Value RM2.401b
1)The KLCI fell steeply behind suspected fund selling
after the country reported weaker than expected GDP growth (4.1% act from 6.5%
previously) for the 1QFY13. Plantation
index fell 1.70% led by IOI -3.97% and
KLK-1.64% behind weaker country export data; similarly the construction sector
saw more profit taking on names that thrived after GE13 such as GAMUDA -1.0%
and SENDAI -3.7% Regionals were marginally firmer after DOW closed at record
levels overnight. Market breadth was negative with losers surpassing gainers by
591:309. Futures closed 1766.5 (parity).
2) Heavyweights: IOICORP -3.97% RM5.07, GENTING -2.93%
RM10.58, MAYBANK -1.18% RM10.02, CIMB -0.714% RM8.34, TENAGA -0.94% RM8.22, YTL -2.77% RM1.75, SIME -0.73% RM9.50, PETGAS
+1.76% RM21.90
3) DBT: REDTONE- LA 42.791mil @ 0.19 ( 17% PUC @ 2.6%
premium), DIJACOR 20mil @ 1.62 (2.324% PUC @ 1.2% premium), MENANG 6.983m @
0.32 (2.6% PUC @ 5.9% discount).
4) Situational;
ASTRO +0.317% RM3.16, MHB -2.88% RM3.71: Astro Bhd will
be included as a component of the 42-stock MSCI Malaysia Index replacing
Malaysia Marine and Heavy Engineering with effect from May 31 onwards.
PARKSON -5% RM3.99 : Parkson Retail Group Ltd. (3368)
declined 8% in Hong Kong, heading for the lowest close since January 2006. Net
income in the first quarter fell 27% to 226.8 million yuan. Weaker results were behind slower same store
sales growth which declined 2% and higher rental expenses that increased 31%. Also,
due to weaker market conditions and increased competition, merchandise margin
for the quarter dropped by 0.7% to 17.3% compared to the same period last year.
5) GOLDIS BHD : The Board announced that Crest Spring Pte
Ltd (CSPL), a wholly-owned subsidiary of Goldis has on 16 May 2013 entered into
a BOT Concession Agreement with Yantai Economic and Technical Development Zone
City Management and Environmental Protection Bureau ("Yantai DZEPB").
Pursuant to the BOT Concession Agreement, a project company will be set-up to
undertake the upgrading and expansion of the existing Sewage Treatment Plant in
Yantai Economic Development Zone.
The project company will be set up (i) to upgrade
emission standard on the first phase of the existing project operated by YXCWT.
The BOT Concession Agreement is for a period of 23 years, (ii) to expand the
water treatment capacity to 20,000 tonnes per day on the second phase of the existing
project operated by YXCWT. The project investment cost and other related terms
and conditions will be determined in a supplementary agreement to be signed
later. The proposed registered capital of the project company is USD5 million
(equivalent to RM15.2m). Crest Spring will fund the proposed investment in the
project company through internally generated funds and bank borrowings;
+ve, the rationale for the proposed investment is to
enable Goldis Group to further enhance and broaden Goldis Group involvement in
the water treatment business by tapping into the growth potential and lucrative
revenue offered by the China market in line with China's rapid urbanization and
awareness in environmental protection. The proposed investment is expected to
be completed within 9 months upon obtaining the approvals of regulatory
authorities in China.
6) Market : Market:
Profit taking is set to continue with immediate support at 1750;
accumulate on weakness Perisai, Maybank, CIMB, MRCB, Armada, Naim, Pantech,
Perdana.
