FBMKLCI
1762.34pts -10.54pts (-0.59%)
Volume 1.638b Value RM2.017b
1)The KLCI remained in negative territory thruout the
trading session to close lower today at 1762pts. This is inline with the US
overnight as stocks were sold down after Fed's Chairman Ben Bernanke's comment
to taper bond purchases later this year. In the regional market, HSI -2.99% and
SHCOMP -2.77% were sharply lower after the release of the HSBC's preliminary
China Data that came in lower(48.3 act vs 49.2 previously). In the local
market, the PROPERTY-1.89% weighed down by UEMS -4.29%, IJMLAND -2.78%, SPSETIA
-1.17%, TAGB -4.84%. Market breadth was negative with losers significantly
higher than gainers at 668 : 172. Futures closed 1758.5 (3.5pts discount).
2) Heavyweights : IOICORP -2.23% RM5.26, PETGAS -2.09%
RM20.64, CIMB-0.84% RM8.22, GENTING -1.35% RM10.16, MAYBANK-0.58% RM10.36, SIME
-0.73% RM9.49, GENM -2.06% RM3.80, ARMADA -3.85% RM3.75.
3) DBT : CONNECT 7.771mil @ RM0.10 (4.976% PUC @ 20%
discount), MAYBANK 6.979mil @ RM10.25, SEG 6.204mil @ RM1.60 (0.93% PUC)
4) Situational:-
MRCB -1.29% RM1.55 : MRCB approved merger with NGD today
despite being sued to stop the deal by PKNS. Nusa Gapurna had also rejected a
bid by PKNS to buy NGD's 70% share in PJ sentral. In today's EGM, 92% of MRCB's
shareholders voted to keep its offer of RM814 million for NGD including its
stake in PJ Sentral development. The deal will increase the KL Sentral
developer's land bank for future development.
5) KULIM : Board
announced that Kulim intends to make a Partial Offer to acquire up to a further
20.00% of New Britain Palm Oil Ltd (NBPOL) of West New Britain Province,
PNG.The Partial Offer will involve Kulim offering to acquire up to 30,009,621
Offer Shares from the shareholders of NBPOL at the offer price of GBP5.50 per
Offer Share to be satisfied entirely in cash. As NBPOL is currently a 48.97%
associate company of Kulim, the Partial Offer will enable Kulim to potentially
increase its stake in NBPOL to up to 68.97%. The total consideration of
approximately GBP165.05 million (which is equivalent to approximately RM812.30
million) to be satisfied entirely in cash. The Partial Offer will be
conditional upon Kulim having received before the close of the offer period,
valid acceptances, which when aggregated will result in Kulim holding more than
50.00% of the voting shares of NBPOL. The cash consideration for the Partial
Offer will be funded by a combination of internally generated funds and bank
borrowings;
Mildly +ve. The Partial Offer is in line with Kulim's
strategy of enhancing its core plantation business following the completion of
the capital repayment exercise by QSR Brands Bhd and KFC Holdings (Malaysia)
Bhd in early 2013. NBPOL has been a significant contributor to the Kulim
group's plantation earnings in the past, and hence the Partial Offer will
enable Kulim to capture a larger share of NBPOL's financial results upon
consolidation.
6) Market: The FTSE All-World stock weightings review and
changes in in components of the FBM KLCI will kick in at tomorrow close. These
two changes coupled with the uncertain global markets will increase trading
volatility in Bursa tomorrow.
