FBMKLCI
1770.80 -1.60pts (-0.09%)
Volume 1.233b Value 1.383b
1) The KLCI opened lower after the US halted its 7 day
winning streak as investors weighed the prospects for Fed's Reserve stimulus
cut which will be revealed next Tuesday during the FOMC meeting. In the
regional market, bourses were mixed as the NIKKEI +0.12% rose on high trading
volume and weaker yen against the dollar while the SHCOMP -0.86% and HSI -0.17%
close slightly lower on more correction from the recent bull run. In the local
market, volume was thinner than usual as profit taking continue to set in with
TECHNOLOGY index losing most grounds with names like TIME -3.57%, GPACKET
-3.40%, CENSOF -6.18% dragging it down. Market breadth was negative with
decliners leading gainers 391:300. Futures closed 1765 (6points discount)
2) Heavyweights : SKPETRO -1.63% RM3.61, BAT-1.72%
RM62.40, UMW -1.60% RM12.26, PETGAS -0.65% RM21.10, PETDAG-1.2% RM28.00, PPB
-0.83% RM14.30, DIGI +0.62% RM4.83, GENTING +0.50% RM10.00
3) DBT : KAMDAR 5mil @ RM0.50 (2.52% PUC @ 3% premium),
UEMS 2.565mil @ RM2.38 (4.1% discount), CRESBLD 2.234mil @ RM1.29 (1.395% PUC @
2.1% discount).
4) Situational:-
SALCON -2.17% RM0.675 - Salcon rose to a high of 71.5sen
after it proposed to sell all its water treatment concessions in China for
RM518.28m cash. After netting of liabilities and minority interest, Salcon
would pocket RM284m cash. Salcon is considering capital repayment or special
dividend to return part of the proceeds to shareholders. With fresh cash in
hand, Salcon will team up with Eco World Development, which is controlled by
Tan Sri Liew Kee Sin of SP Setia, to develop two tracts in Johor Baru that Eco
World bought in Jan.
5) TROPICANA
The company announced a Sale and Purchase Agreement with
Lee Pineapple Company Limited whereby the Vendor agreed to sell and the
Purchaser agreed to purchase 18 pieces of freehold land measuring a total size
of approximately 103.8222 hectares located in Mukim of Pulai, District of Johor
Bahru, Johor for a total cash
consideration of RM366.55m .The Land is located within an area ripe for mixed
development, i.e. located to the north of Iskandar Malaysia's Flagship B:
Nusajaya Development with established residential developments such as SP Setia
Eco Gardens, Bukit Indah, Horizon Hill, Leisure Farm and Ledang Heights;
The potential gross development value of approximately
RM6.4 billion based on the initial planning of the Proposed Development. The
Company intends to fund the Proposed Land Acquisition and the development cost
of the Land through internally generated funds and/or bank borrowings. The
exact mix of the financing structure will be determined by the management of
the Company at a later stage.
Proposed Land Acquisition is in line with the overall
Tropicana Group's objective of increasing its land bank at strategic locations,
especially in the State of Johor, for its future property development and
property investment.
Following the Proposed Land Acquisition, Tropicana Group
will have a total landbank of approximately 2,190 acres with total GDV of
approximately RM79 billion.
The company has been on a very aggressive launching phase
with RM3bn launches thus far and expect a further RM2bn new launches in the
coming year. They will be one of the most susceptible property companies with a
high gearing should the property cycle suffer a significant slow down as
expected by many analyst.
6) Market - Pullback to continue to around the 1730-750
levels ahead of the FOMC meeting next week. Trading to resume on Tuesday after
Malaysia Day.