Market Roundup | 5 August 2013

FBMKLCI   1785.14  +2.63pts  (+0.15%)   Volume  1.590b   Value RM1.556b

 

1) The KLCI rose for its 3rd straight day after the US closed up  on hopes the Fed's would not trim stimulus just yet following disappointing job numbers. In the region, NIKKEI -1.44% was lower behind firmer yen while SHCOMP +1.04% rose for a 5th day after service reports accelerated for the first time since March. In the local market, TECHNOLOGY index +1.14% outperformed lead by gains in GTRONIC +4.88%, JCY +1.48%, and ETITECH +40% behind the recent weakness in MYR. Market breadth was positive as gainers led losers by 402 : 346. Futures closed 1784.5 (1pt discount).

 

2) Heavyweights : AMBANK +3.70% RM8.05, MAYBANK +0.77% RM10.40, PBBANK +0.46% RM17.46, PETDAG+2.34% RM27.06, TM +0.95% RM5.30, GENM -2.22% RM4.40, SKPETRO -2.04% RM3.86, MISC -1.70% RM5.20.

 

3) DBT :  NEXTNAT 32mil @ RM0.10 (3.78% PUC @ 11% premium), INARI 26mil @ RM0.79 (5.83% PUC @ 7.7% discount), OCK 16.835mil @ RM0.47 (6.5% PUC @ 19.7% discount).

 4) Situational:-

IRIS +11.9% RM0.235/FGV RM4.47 +0.22% - Iris announced that it had received an offer from Felda where the latter would subscribe for up to 394.1 million new shares, or  25% of the paid-up capital at 28 sen, thus raising some RM110.3mil. The reason for FGV buying into IRIS is to use the latter as a vehicle to partake the development project to build houses for the Felda settlers.

 

5) FABER (FGB) : Board announced today that they have received a offer letter from UEM Group Berhad which sets out an offer to dispose the entire equity interest in Opus Group Berhad ( OPUS ) held by UEM Group Berhad  and 100% equity interest in Projek Penyelengaraan Lebuhraya Berhad ("PROPEL") held by UEM Builders Berhad ("UEMBB") to FGB ("Offer") at a minimum offer price of RM1,127,500,000 or maximum offer price of RM1,151,000,000. The disposal will present an offer to FGV to merge & streamline the Asset & Facility Management (AFM) businesses of the 3 parties under FGB. Merger will enable to FGB's to diversify it's current focus on the healthcare sector to include infrastructure & commercial sectors as well & cement it's position as the largest AFM company in Malaysia. Merger will also allow potential synergies to be extracted such as expertise, shared services, market know how & cost. PROPEL & OPUS are being priced at c9.3x & 8x FY12/12 earnings respectively. The offer will lapse Aug 30; Positive, a welcomed development for FGB, especially after group has been hit by a series of unfortunate events in the past 2 years ( concession business taken a cut, non concession business at a low & landbanking drawing an end). Concession business will continue yielding free cash flows of cRM35m pa for the next 10 years.

 

6) Market : Market:  Sideways, narrow-ranged  lacklustre trading is likely to continue ahead of the Hari Raya Puasa holidays. Stocks at attractive levels are SKPetro, Dayang, MHB, Perisai & Perdana.