Market Roundup | 13 August 2013

FBMKLCI   1795.09  +10.52pts  (+0.59%)   Volume  1.995b   Value RM1.870b

 1) The KLCI extended gains for a 2nd day as Asian markets were firmer following better economic data in China last week as well as optimism China's government are looking to ease curbs on fundraising by property companies. A strong US retail data due today will further solidify investors' confidence in the recovery of global economy.  In the local scene, penny stocks continued to dominate volumes while Plantaion+0.43% after CPO prices rallied to a 3 week high on cut in USDA's soybean crop forecast. Market breadth was positive with gainers leading losers by 555 : 241. Futures closed 1800.5pts (5.5 pts premium).

2) Heavyweights : CIMB +1.38% RM8.07, GENM +3.74% RM4.43, PETGAS +1.72% RM21.28, TENAGA +0.78% RM8.99, IHH +2.00% RM4.08, AMBANK +1.38% RM8.08, DIGI +1.07% RM4.70, AXIATA +0.43% RM6.93.

3) DBT :  HUBLINE 68mil @ RM0.05 (2.089% PUC), TROP 50mil @ RM1.77 (4.536% PUC @ RM3.5% premium), TGOFFS 3mil @ RM0.60 (1.00% PUC @ 10.5% discount).

4) Situational:-

LBS +5.12% RM1.64 - LBS Bina Group has completed the sale of its China assets worth HK$1.65 billion (RM681.28 million) to Hong Kong-listed Zhuhai Holdings Investment Group Ltd. The sales proceeds will be satisfied by a combination of HK$500 million in cash (30.3%), 225.56 million shares in Zhuhai Holdings priced at HK$1.33 each or HK$300 million (18.2%), and promissory notes for HK$850 million payable progressively over next four years (51.5%).

 5) AirAsia

The company has experienced another hiccup with its(IPO) in Indonesia delayed to the fourth quarter of this year or the first quarter of next year according to its Group Chief Executive Officer Tan Sri Tony Fernandes . The IPO has been targetted for the third quarter of this year. AirAsia, which has a 49 per cent stake in PT Indonesia AirAsia.

The budget carrier, which originally planned to raise US$200 million through the IPO by offering 20 per cent of AirAsia Indonesia shares shelved the plan in July last year.

Prefer a trading buy on AAX if price continues to weaken to around the RM1.15 levels.

6) Market - Reporting season this period to be a key focus as market now generally perceived to be fairly valued thus a weaker set of earnings numbers could trigger a downgrade in key sectors particularly Banking.