FBMKLCI
1797.74 +6.20pts (+0.35%)
Volume 1.649b Value RM2.366b
1) THE KLCI shrugged off negative sentiments from
regional markets as it closed just slightly below the 1800pts mark at 1797
after the US market rose overnight on the back of lower jobless claims data and
better Philly Fed manufacturing numbers for July. In the region, SHCOMP -1.52%
and HSI +0.08% were weighed down by developers and properties stocks. In the
local market, bluechip stocks outperformed, lead by gains in TENAGA +3.22%,
YTLP +3.57%, AMBANK +1.40%, MAYBANK+0.37% . Market breadth was positive with
gainers edging losers 425: 380. Futures closed 1798.5 ( 1 pt premium).
2) Heavyweights: TENAGA +3.22% RM9.30, IOICORP +1.30%
RM5.45, AMBANK +1.40% RM7.96, MAYBANK +0.37% RM10.64, IHH +1.52% RM4.01, AXIATA
+0.29% RM6.78, SKPETRO -0.98% RM4.06, DIGI -0.43% RM4.60.
3) DBT : WILLOW
38mil @ RM0.50 ( 15.323% PUC @ 9.1% discount), MINETEC 11.4mil @ RM0.1416
(3.769% PUC @ 11.5% discount), SCOPE 11mil @ RM0.2145 (2.198% PUC @ 6.8%
discount).
4) Situational:-
HOHUP +1.81% RM0.84 - Ho Hup Construction will buy Zen
Courts Sdn Bhd's 30% stake in Bukit Jalil Development Sdn Bhd (BJD) for
RM35.97m. Ho Hup said the High Court had fixed the price for the acquisition of
the stake in BJD, which is a subsidiary of Zen Courts. The High Court had in
Mar-2012, orders Ho Hup to buy out Zen Courts following the breach of mutual
trust between BJD's shareholders - Ho Hup and Zen Courts. While the buyout
would give Ho Hup full control of BJD and an exit for Zen Courts, most
importantly is that BJD itself is undertaking a development project in Bukit
Jalil. The project involves a 60-acre freehold site.
5) GENTING : The Board announced that Genting Power China
Limited (GPCL), an indirect wholly-owned subsidiary of the Company has today
entered into a SSPA in respect of the proposed disposal by GPCL of the entire
issued and paid-up share capitals of Coastal Gusu Heat & Power Ltd
("CGHP") and Coastal Suzhou Power Ltd ("CSP") to Wah Sun
Investments Limited ("WSIL") for a total cash consideration of
RMB44/- million (cRM22m). CGHP and CSP are both investment holding companies
which collectively own 60% equity interest in Suzhou Coastal Cogeneration Power
Company Ltd ("SCCPC"). SCCPC owns and operated a 107MW peaking power
plant in Suzhou, Jiangsu Province, China. The Suzhou Power Plant was shut down
in 2008; Neutral, the proposed disposal is not expected to have any material
impact on GENT earnings or net assets FY2013. The power division recorded a
139.9% YoY increase in EBITDA in 1QFY13 underpinned by a higher despatch from
the Meizhouwan power plant in China and construction revenue from the power
plant in Indonesia. We understand that group is currently carrying out
development works at the coal-fired power plant in West Java & had already
signed the power purchase agreement for Banten Power Plant with the
authorities.
6) Market : Profit taking fairly well absorbed, can
expect further range bound trading next week. O&G an Construction names
likely to remain in favour.