Market Roundup | 15 July 2013

FBMKLCI   1786.67pts  +1.02pts  (+0.06%)   Volume  1.121b   Value RM1.615b

 

 1)The KLCI opened lower on Monday following the US market that closed flattish after investors remained cautious ahead of the release of China GDP data today. The index remained listless and traded in the negative region for most of the day before edging higher at auction. SHCOMP saw volatile trading throughout the day with banking stocks leading the recovery of the index to close+0.98% after China GDP came inline at 7.5%. In the local market, penny names dominated the volume list led by LUSTER-5%, CSL+2%, FLONIC+10% and THHEAVY+1%. Market breadth was skewed towards the positive with gainers inching pass losers by 372 : 356. Futures closed at 1784.5 (2pts discount).

 

2) Heavyweights : MAYBANK +0.96% RM10.50 , PBBANK +0.47% RM17.04, MISC +2.48% RM5.38, CIMB +0.36% RM8.35%, DIGI +0.65% RM4.67, TENAGA -0.58% RM8.60, AXIATA -0.44% RM 6.79%, MAXIS -0.73% RM6.80

  

3) DBT : PJDEV 9.796mil @ RM0.82 (2.148% PUC @ 13.7% discount), SCOPE 4.7mil @ RM0.22, CHINWEL 3mil @ RM1.23 (1.10% PUC).

 

4) Situational:- 

KEURO RM1.30-0.76%: Cash-rich MWE Holdings is buying a 22% stake in KEuro and will emerge as the largest shareholder. MWE entered into a share sale agreement with Tan Sri Chan Ah Chye and Sze Hoon Holdings to buy RM115m KEuro shares for RM155.9m cash (RM1.35/share). Tan Sri Chan Ah Chye's stake will reduce to 4.5% from 26%. IJM Corp is the second largest shareholders in KEuro with a 22.9% stake.

 

  

5) ZECON 

The company today announced a selective capital reduction and repayment plus the acceleration of the maturity of all outstanding warrants 2007/2017 and cancellation.

 

Entitled shareholders will receive a total cash payment of RM35.77m representing a cash repayment of RM0.80/share for each ord share.  All warrant holders will receive a cash amount of 5sen for each warrant held on entitlement date.

 

The offer represents a 34% discount to the NA of the company as at Mar 2013.

  

6) Market - Current uptrend likely capped on the CI at around 1800pts with no major rerating catalyst for the big caps. Interest to continue to smaller situationals.