1) The KLCI continued its winning streak for a 4th day
behind the US market which closed just slightly higher after Fed's chairman
Bernanke says that the tapering of QE will be determined by the data and not on
a preset course. In the regional market, NIKKEI+1.32% and ASX +0.24% closed
higher inline with the US but SHCOMP-1.05% and HSI -0.12% retreated after
Chinese Finance Minister Lou Jiwei said that the government was unlikely to
implement a massive fiscal stimulus. In the local market, penny stocks continue
to be actively traded with KINSTEL -15.15%, TDM +4.19%, THHEAVY+2.19% leading
the pack in terms of volume. Market breadth closed slightly positive with 547 :
280. Futures closed 1793 (1.5pts premium)
2) Heavyweights : TENAGA +1.80% RM 9.01, MAYBANK +0.95%
RM10.60, MAXIS +1.30% RM 7.01, MISC +2.68% RM5.75, CIMB +0.47% RM8.46, PCHEM
+0.611% RM6.59, IOICORP -2.53% RM 5.38, GENM -1,02% RM 3.86.
3) DBT : LEWEKO 11.576mil @ RM0.145 (4.79% PUC @ 3.4%
discount), MQTECH 10mil @ RM0.12 (4.33% PUC @ 9 % premium), IBRACO 3mil @
RM1.50 ( 2.39% PUC @ 3.9% discount).
4) Situational:-
AEON +1.19% RM15.24 - AEON Bhd has bought three parcels
of land in Tebrau, Johor Baru, for RM70m to build a car park, department store
and supermarket. The total land size of 8.3ha will form part of the Bandar
Dato' Onn mixed development project. AEON said the acquisition is in line with
its strategy to expand its retail business through the opening of new malls.
The purchase will be fully satisfied by cash and funded by the company's
internally-generated funds.
5) FGV
Proposed to undertake the Offer to acquire all the voting
shares of RM1.00 each in Pontian not already owned by FGV for a cash
consideration of RM140.00 per Offer Share via a voluntary conditional take-over
offer.The authorised share capital of Pontian is RM10,000,000 comprising
10,000,000 ordinary shares of RM1.00 each, of which 8,648,280 Pontian Shares
have been issued and fully paid-up. The principal activities of Pontian's
subsidiaries are investment holding, cultivation of oil palm, extraction of crude
palm oil and palm kernel for sale, general insurance agency, property
investment and money lending. Pontian and its subsidiaries have approximately
40,000 acres of oil palm plantation land located primarily in Sabah.Based on
the audited consolidated financial statements for the financial year ended 31
December 2012, the profit after tax and minority interest and net assets of the
Pontian Group are approximately RM39.48 million and RM414.01 million
respectively.
As at 18 July 2013, FGV has obtained irrevocable
undertakings from selected shareholders of Pontian to accept the Offer in
respect of their Pontian Shares totalling 23.8%. Assuming full acceptances to
the Offer, the maximum cash consideration payable shall amount to approximately
RM1,210.76 million.
The consideration shall be funded by internally generated
funds, proceeds raised from FGV's initial public offering and/or bank
borrowings.
Prefer IOIC in the plantation sector which trades at a
lower PE multiple with the unlocking of its property division as an immediate
catalyst.
6) Market - Stock picking remains key as the KLCI
continues to be stuck in a tight trading range. O&G related names to remain
top favourites.
