FBMKLCI
1738.19pts -17.66pts (-1.01%)
Volume 1.671b Value RM2.188b
1) The KLCI closed lower for a fourth consecutive day
inline with the regional market led by SHCOMP -5.30% after banks stocks plunged
due to concerns over the credit crunch. In the local market, PROPERTY index
continue to lose ground on speculation the DIBS scheme could be abolished by
the government in the near term to curb rising property prices. This led to
property stock seeing heavy losses led by UEMS -5.21%, UOADEV -9%, MAHSING -7%,
SUNWAY -5%, CRESNDO-12%. Market breadth was mostly negative with losers
significantly higher than gainers 797 : 121. Futures closed 1739 pts (1 pts
premium).
2) Heavyweights : MAYBANK-1.17% RM10.14, PETGAS-2.89%
RM20.16, SKPETRO-2.43% RM4.02, BAT-4.17% RM 57.02, TENAGA-1.33 RM8.19,
CIMB-0.85% RM8.13, GENM-2.37% RM3.71, UEMLAND-5.21% RM2.91
3) DBT : CONNECT 5.948mil @ RM0.10 (3.81% PUC), ETITECH
3mil @ RM0.1350 (80% premium), BAHVEST 2.545 @ RM1.3371, THHEAVY 2.5mil @
RM0.62 (12.7% discount)
4) Situational:-
TAANN+3.35% RM3.70: Ta Ann announced that its 88%-owned
subsidiary, Ta Ann Tasmania ("TAT") had agreed to surrender partially
its peeler wood supply entitlement held under contracts with Forestry Tasmania.
In return, the Australian Government agreed to a conditional compensation of
AUD28.6m (equivalent to RM85.8m). TAT is surrendering 108,000 m3 per annum of
its native forest veneer peeler billet supply. As its original supply
entitlement is 265,000 m3, this will reduce its supply to 157,000 m3.
5) SIME/ TNB
TNB announce that its wholly-owned subsidiary TNB Energy
Services Sdn. Bhd has, entered into a Shareholders Agreement with Sime Darby
Plantation Sdn. Bhd, a wholly-owned subsidiary of Sime Darby Berhad, whereby
the parties has agreed to establish a joint venture with each other and to
incorporate a joint venture company to undertake biogas project development
from agricultural waste product. Sime will hold 51% with TNB 49% of the JV.
It is the intention of both SDP and TNBES to develop
renewable energy plants using biogas converted from palm oil mill effluent
("POME") with the objective of selling the electricity generated to
the National Grid. The JV is part of the sustainability initiatives and
corporate agenda in promoting sustainable development.
Subject to the JV Co being granted with a Provisional
License under the Renewable Energy Act 2011, the JV Co shall be engaged in the
business of operating and maintaining the Flemington and Hadapan power plants
which power plants will generate power utilising methane gas recovered from
POME from the palm oil mills operated by SDP at its palm oil plantations known
as Flemington and Hadapan Estates respectively and the sale of such power to
distribution licencee(s) licensed under the Feed-in-Tariff scheme.
Minimum immediate impact to both companies, we have a
hold rating for TNB and Sime.
6) Market - Weakness in global markets likely to continue
as efforts to curb US stimulus remains a main concern over higher rates. The
sharp dips experienced across the region are eventually taking its toll on the
KLCI, where we see initial strong support around the 1700pts levels.
