Thursday, November 7, 2013

Market Roundup | 6 November 2013


FBMKLCI   1803.05  -4.42pts   (-0.24%)   Volume  2.121b   Value 2.128b

1) The KLCI trended lower today inline with the weaker US market overnight that fell despite the stronger ISM reading just before the release of GDP and jobs report numbers later this week. In the regional market, bourses were mix as the NIKKEI +0.79% broke its 4 day decline after yen weakened while SHCOMP -0.82% and HSI -0.01% closed lower ahead of the Chinese Communist Party meeting this weekend. In the local market, index traded in negative territory throughout the day as construction -0.63% and property -0.38% continue to lose grounds with GAMUDA -1.43% , MRCB -1.43%, MUDAJYA -1.75%, & MAHSING -1.79%, SUNWAY -1.05% weighing the indices down.  Market breadth was negative with losers outpacing gainers by 494 : 339. Futures closed 1799pts (4 pts discount). 

2) Heavyweights: DIGI -1.81% RM4.87, PETGAS -1.23% RM24.00, GENM -1.56% RM4.40, PBBANK -0.32% RM18.18, GENTING -0.57% RM10.40, YTL +1.86% RM1.64, PCHEM +0.56% RM7.12, CIMB +0.26% RM7.56

3) DBT : TALIWRK 7.5mil @ RM0.92 (1.718% PUC @ 18.2% discount), LIONIND 5.97mil @ RM0.87, IJM 4.39mil @ RM5.7840 

4) Situational:-
KAREX+32.43% RM2.45 - World's largest condom manufacturer, Karex, made its debut today on the Main Market of Bursa Malaysia, opening at RM2.34, which was RM0.49 or 26.5% above its offer price of RM1.85. Its initial public offering was oversubscribed by a massive 22.8 times. Karex raised total gross proceeds of approximately RM74.9 million from its offering, which the company intends to utilise for research and development, capital expenditure, general working capital, repayment of bank borrowings and listing expenses. Karex currently supplies approximately 10 %of the total condoms sold worldwide. Karex aims to double its annual capacity to 6 billion pieces in 2015 from 3 billion currently, positioning it for a 20% share of the world's condom market.


BARAKAH +86.91% RM1.00 - Barakah Offshore Petroleum opened at RM0.98 this morning, which was a 50.8% or RM0.33 above its reverse takeover price of RM0.65 of Vastalux Energy. Barakah has an order book of RM700 million, including a RM500 million umbrella contract to provide hook up and commissioning work for three production sharing contractors Petrofac, Newfield and Talisman. The company is also eyeing to be part of Petroliam Nasional's ongoing project to replace oil and gas pipelines in stages, which analysts estimate the transportation and installation (T&I) portion to be worth RM15 billion to RM20 billion over three years.


5) KPJ : announced that KPJSB, a wholly-owned subsidiary of KPJ, had on 6 November 2013 entered into a conditional Share Sale Agreement with Usaha Cendera Sdn Bhd for the acquisition of 100% of the equity of BDC Specialist Hospital SB for a total cash consideration of RM16,516,144.00. BDCSHSB is the registered owner of a parcel of leasehold land in Stampin, Kuching, Sarawak measuring approximately 1.918 hectares. Henry Butcher in their valuation has valued the Land based on the market value of RM16,590,000.00. The Purchase Price shall be financed from internally generated funds of the KPJ Group; +ve, acquisition is in line with group's expansion strategy. It would enable Group to expand its network of hospitals to locations where private healthcare is in demand. It will also strategically enhance KPJ's hospital capacity namely Kuching Specialist Hospital which its current bed utilization rate has reached its optimum level. BDCSHSB will serve as an extension to KPJ's Kuching Specialist Hospital. The acquisition  is expected to be completed within the final quarter of 2013.

 

6) Market: The current listless trading is expected to persist with the KLCI Index likely to breach the psychological support of 1800pts.