Friday, May 3, 2013

Market Roundup | 2 May 2013


FBMKLCI  1713.46       -4.19pts (-0.24%)         Volume  809.033mil            Value RM1,986mil
 
The index saw an immediate correction at the opening after it closed at an all-time high on Tuesday due to the month end window dressing. The earlier session started with aggressive profit taking albeit thin volume but recovered most of its earlier losses to close just 4 pts lower. Investors prefer to stay on the sidelines following the weaker regionals and evidence of slower growth in the US and China as well as concerns fuelled by the looming elections this weekend. The Oil and Gas sector tumbled today as we witness recent outperformers fall, DAYANG -5.2%, PERDANA -4.7%, KNM -3.4% and SKPETRO -3.1%. Market breadth throughout the day was negative with decliners thumping gainers 516 : 210. Futures closed 1705.5 (8 pts discount).
  
2) Heavyweights: SIME-0.6% RM9.38, TENAGA-0.6% RM7.79, AXIATA-0.3% RM6.74, CIMB-0.3% RM7.71, GENM-0.4% RM3.72, IOICORP-0.3% RM5.00, PCHEM-0.3% RM6.50, PETGAS+0.28% RM20.00 
 
3) DBT: MEGB @ 72mil @ RM0.40 (17.5% PUC, 30% discount), MTRONIC 10mil @ RM0.10 (1.57% PUC, 5% premium), DIJACOR 4.5mil @ RM1.50 (0.5% PUC, 1.3% discount), MUDAJYA 4mil @ RM2.42 (0.7% PUC)
 
4) Situationals:
 
KNM-3.48% RM0.415: Process equipment maker KNM Group Bhd has reported a deviation of more than 10% in its announced unaudited accounts and audited net profit for the financial year ended Dec 31, 2012. The unaudited net profit announced before was RM130.6mil vis-a-vis the audited figure of RM82.03mil. The company told Bursa Malaysia that this was due to the adjustments from normal operations and the significant audit adjustments to its Brazilian operations which includes impairment of deferred tax assets and property, plant and equipment, and provision for contingency cost. 
 
5) GADANG
 
 The Company's indirect wholly-owned subsidiary, Asian Utilities Pte Ltd ("AUPL  entered into a Shares Subscription Agreement ("SSA") with PT. Ikhwan Power Indonesia ("PTIPI"), PT. Megatama Powerindo ("PTMP") and PT. Ikhwan Mega Power ("PTIMP") to subscribe for 9,000 (nine thousand) new shares of Rupiah (IDR) 1,000,000 (one million Rupiah) each ("Shares") representing 60% of the enlarged issued share capital of PTIMP for a total cash subscription price of IDR 9,000,000,000 (nine billion Rupiah) (equivalent to about RM3.0 million)
 
PTIMP has executed a Power Purchase Agreement ("PPA") with PT. Perusahaan Listrik Negara ("PLN"), the state owned power supply company of Indonesia to develop and supply power to PLN for the duration of the PPA period, which is 15 years, from a 9 Megawatt (MW) Mini Hydro Power Plant ("the Project"). The Mini Hydro Power Plant will be located in Kabupaten Tanah Datar, Sumatera Barat.
 
+ve to expanding its foray into power assets overseas. 
 
6) Market - Maintain current trend with results on May 5 to dictate short term outlook.