FBMKLCI
1814.10pts -1.24pts (-0.07%)
Volume 1.839b Value 2.135b
1) The KLCI dipped as much as 12pts in the morning
following the weaker US market overnight before seeing strong recovery to close
marginally lower. In the regional market, bourses were bullish led by China's
SHCOMP after money-market rates continue to decline; HSI swung between gains
and losses but closed in positive territory ahead of China's HSBC manufacturing
data tomorrow. In the local market, bluechip stocks bounced back erasing
earlier losses, namely PPB +2.62%, FGV +2.28%, BAT+1.12%, GENTING +1.56%,
RHBCAP +0.63%. Market breadth was negative as losers outpaced gainers by 463 :
325. Futures closed at 1808pts (6pts discount).
2) Heavyweights: CIMB -1.40% RM7.01, MAYBANK -1.01%
RM9.76, AXIATA -0.60% RM6.60, GENM -0.91% RM4.34, GENTING +1.56% RM10.36, PPB
+2.62% RM15.64, FGV +2.28% RM4.47, BAT +1.12% RM63.24.
3) DBT: ASUPREM 20mil @ RM0.16 (6.934% PUC @ 20%
discount), EAH 16mil @ RM0.20 (3.763% PUC), UTOPIA 16mil @ RM0.10 (1.779% PUC @
25% premium).
4) Situational:-
MRCB +4.66% RM1.57 - share price rose after news reported
company is in the mist of divestment of its 30% stake in Duta Ulu Kelang
Expressway (Duke) to Ekovest for RM230m. In response, company confirmed that
Board of Directors deliberated on the proposal to dispose its stake in DUKE
yesterday and the proposal is still at a preliminary stage and the material
terms of the proposal are still being negotiated.
5) MPHB CAP
The Company today announced that it received unsolicited
expressions of interest from an interested party to explore the possibility of
forming a strategic alliance with Multi-Purpose Insurans Bhd, a wholly owned
subsidiary of the Company.
BNM has, via its letter dated 22 January 2014, stated
that BNM has no objection in principle for the Company to commence preliminary
negotiations with the interested party in relation to the possible disposal of
a minority equity interest in MPIB.
MPIB is the main earnings contributor to the group and
ranks 13th in term of insurance premiums.
The proposed strategic alliance is line with MPHB Capital
group's business strategies to, among others, expand MPIB's general insurance
business, grow new business to provide new revenue streams as well as to
increase its capacity to underwrite more insurance products.
We would not be surprised if the structure of the new
entity would see MPHB Cap pare down its stake to below 50% thus eliminating the
need for the company to sell down its non financial business as it will not be
under BNM purview of a financial holding company. +ve Buy on weakness
6) Market - Maintain current trading band ahead of next
week holidays for CNY .