1)The KLCI opened 10 pts higher and closed at an all-time
high above the 1800 level after the US market closed higher overnight behind
weaker housing data and earnings from companies which fuelled speculation that
stimulus would continue. In the regional market, SHCOMP index +1.95% rose the
most in almost two weeks as the government hints on more capex spending on
railroads and environmental gear to maintain 7% GDP. In the local market,
INDUSTRIAL index +0.77% outperformed with gains in BAT +1.53%, SIME +0.42%,
MISC +1.21%. Market breadth was slightly positive with gainers leading losers
by 415 : 392. Futures closed 1808 (3 pts premium)
2) Heavyweights : MAYBANK +0.56% RM10.72, CIMB +0.47%
RM8.52, PBBANK +0.35% RM17.10, IHH +1.46% RM4.15, GENM +1.28% RM3.95, BAT
+1.53% RM60.70, SIME +0.42% RM9.54, GENTING-0.60% RM9.84
3) DBT : MNC 22mil
@ RM0.25 (23.287% PUC @ 24% discount), KRETAM 3.5mil @ RM2.50 (7.5% discount),
FARLIM 2.257mil @ RM0.33 (1.608% PUC @ 4.4% discount).
4) Situational:-
AFUJIYA +3.33% RM0.62 - Sarawak-based ABM Fujiya made a
firm debut on Bursa Malaysia on Tuesday at 65 sen, which was five sen above its
initial offer price (IPO) of 60 sen a share. Its IPO of 10.5 million shares
available for public application was oversubscribed 9.77 times. The IPO exercise is expected to raise RM13.8
million and the proceeds will be used for repayment of bank borrowings (6
million), working capital (6 million) and payment of listing expenses (RM1.8
million). Founded in 1971, ABM Fujiya manufactures various types of automotive
batteries, which are used in a wide range of Malaysian, Japanese, Korean and
European motor vehicles. the company has four plants in Kuching with a total
production capacity of 1.6 million batteries per annum and 2.9 million units of
battery covers and containers per annum. The company exports its products to
more than 50 countries globally with the Malaysian and overseas markets
contributing 51.6% and 48.4% of its FY12 revenue respectively.
5) Perdana
Announced that the Company's wholly owned subsidiary,
Petra Offshore Limited entered into a
Memorandum of Agreement with Nam Cheong International Ltd for the acquisition of one unit of
Accommodation/Work Barge having the Hull Number SK312 at a consideration of USD29.5 million.
The total purchase consideration of USD29.5 million for
the Vessel would be funded by internally generated funds and bank borrowings.
Twenty percent (20%) of the total purchase consideration would be paid as
deposit and the balance of the total purchase consideration of USD23.6 million
shall be paid upon delivery of the Vessel expected in the third quarter 2014.
+ve as considered a timely acquisition with the Pan
Malaysian HUC contracts secured by Dayang requiring a significant number of
marine vessels for their Shell contract. Full year earnings effect expected
only in 2014 with net profits levels set to hit around the RM80m levels valuing
it at undemanding PE of 13x (@ Rm2.00). Accumulate.
6) Market - Continued rotational play on mid cap names on
the back of a firmer undertone.