Wednesday, January 8, 2014

Market Roundup | 7 January 2014


FBMKLCI   1825.11      -4.07pts   (-0.22%)   Volume  1.742b   Value 1.883b
 
1) The KLCI closed lower inline with the weaker US market overnight after a mixed batched of economic reports that signalled a slower growth in December; this was followed by the announcement of Janet Yellen as Fed's new chairmen succeeding Ben Bernanke by the Senate.  In the regional market, bourses were mixed as SHCOMP +0.08% and HSI +0.13% closed in positive territory albeit little gain while the NIKKEI -0.59% fell into the red behind profit taking. In the local market, TECHNOLOGY +1.29% sector outperformed once again while the PLANTATION +0.94% stocks fell behind dragged lower by IOICORP -2.24%, KLK -0.99%, GENP -2.89%. Market breadth was positive as gainers outpaced losers by 435 : 382. Futures closed at  1828.5 (3pts premium)
 
2) Heavyweights: PCHEM -1.91% RM6.73, IOICORP -2.24% RM4.36, CIMB -0.81% RM7.35, IHH -1.79% RM3.82, GENTING -0.79% RM10.00, PBBANK +0.63% RM19.10, TM +1.67% RM5.48, SKPETRO +1.08% RM4.66.
 
3) DBT:  MAYBANK 15mil @ RM9.97, CONNECT 10mil @ RM0.11 (5.82% PUC @ 31.3% discount), BARAKAH 5.95mil @ RM1.4899 (5.8% discount).
 
4) Situational:-
PRKCORP  +3.72% RM3.62 - Perbadanan Kemajuan Negeri Perak (PKNP) intends to privatise Perak Corp Bhd via a selective capital reduction (SCR) and repayment totaling MYR183.0m or MYR3.90 per share. In a filing with Bursa Malaysia yesterday, Perak Corp said it had received the proposal from PKNP, which owns 52.3m shares, or a 52.27% stake, and three other shareholders to undertake the corporate exercise. Under the proposed SCR, the entitled shareholders will receive a total cash payment of about MYR183.7m, which represents a cash amount of MYR3.90 a share. The cash payment represents a premium of 11.7% over its last traded price of MYR3.49. PKNP has proposed that the total capital repayment be funded via internal funds and/or financing facilities.
 
5) BRAHIM :  announced that it had entered into a Collaboration Agreement (CA) with ANA Holdings Inc to produce halal Japanese cuisine for in-flight catering in Japan and to consider the establishment of a joint venture for a Halal flight kitchen in Narita and Haneda Airports, Tokyo, Japan. The salient terms include (a) washoku-Japanese collaboration at BHB, (b) halal kitchen at ANAC, (c) marketing of Brahim's Products in Japan & (d) Supply of BHB Products to hotels in Japan ; +ve, objective of the CA is to form a strategic business alliance and collaboration to explore ways and draw on the inherent synergies of the respective parties to gain new market share in Halal flight catering, increased distribution and positioning in the Asia Pacific region to tap the Halal food market in both Japan and Malaysia and other parts of Asia. The partnership will also allow Brahim's to diversify from its dependence on the KLIA passenger traffic flow, thereby reducing the concentration risk of the group's revenue and earnings base. Other share price catalysts include positive earnings surprises, debt refinancing initiatives, announcement of maiden dividend & M&A activities. BOW.
 
6) Market : Profit taking activities continue to weigh down the KLCI, following gains recorded in December. 1820pts remain the immediate support for bargain hunting.