FBMKLCI
1818.17 +0.73pts (+0.04%)
Volume 1.512b Value 1.850b
1) The KLCI traded in negative territory for most of day
but managed to close just above the overnight level after US fed Chairman,
Janet Yellen gave a timeline to the stimulus taper period followed by an
interest rate rise within 6 months after the cut. In the regional market,
bourses recorded steep declines as NIKKEI -1.65%, HSI -1.79%, SHCOMP -1.40 all
fell into the red amidst negative sentiments from the west. In the local
market, while most of the stocks slipped on profit taking, but selective bluechips
such as RHBCAP +1.25%,GENM +1.18%, IOICORP +0.85%, BAT +0.82%, AMBANK +0.70%,
were boosted at auction propelling the index into positive territory. Market
breadth was negative with gainers beating losers by 440 : 321. Futures closed
at 1815 (3 pts discount).
2) Heavyweights: TM -1.69% RM5.80, GENTING -0.92% RM9.65,
MAYBANK -0.41% RM9.53, PBBANK +0.31% RM19.22, AXIATA +0.46% RM6.52, IOICORP
+0.85% RM4.70, GENM +1.18% RM4.27, CIMB +0.42% RM7.10
3) DBT: RPB 14mil @ RM0.4336 (1.63% PUC), PWORTH 11.40mil
@ RM0.18, LIONDIV 5.5mil @ RM0.165, N2N 5mil @ RM0.77
4) Situational:-
ECOWLD +1.70% RM4.77/ TROP 0.00% RM1.43 - Tropicana Corp
Bhd is selling 128ha near Kota Kemuning, Selangor to Eco World Development
Group Bhd for MYR470.7m cash. The land is part of the 474ha Tropicana Aman
which Tropicana acquired from the Selangor state government in April 2013. The
sale and purchase agreement is targeted for completion by the second half of
2014, and is expected to generate a net gain of about MYR170.0m for the group.
Based on the net gain of MYR170.0m or MYR12.64 per sq ft, Tropicana’s cost for
the parcel was MYR22.36 per sq ft, which translates into a profit of 56.5%.
5) Benalec -
announced it had entered into a conditional sale and purchase
agreement to dispose of all the proposed
twenty two (22) pieces of commercial land which have been or will be reclaimed
& located in Kawasan Bandar VI, Daerah Melaka Tengah, Melaka measuring in
total 128.52 acres for a total consideration of RM235.13m. It is to be satisfied
entirely in cash upon completion of the reclamation works and issuance of land
title.
Benalec is required to undertake the reclamation works at
its own cost and expense. It is expected that the reclamation cost for the
Disposal Lands will be approximately RM157.15 million. The costs associated
with the reclamation works are expected to be funded by proceeds from the
Proposed Land Disposal / internally generated funds and / or borrowings.
Benalec is expected to realise an estimated gain of RM58.49 million (after
taxation), which translates into a gain of RM0.07 per share.
The proposed land disposal is in line with the Benalec’s
business model to dispose the reclaimed land received from reclamation projects
in Melaka which involve settlement for cash either through disposals or joint
ventures. The proposed land disposal also provides an avenue for the Benalec to
raise funds to repay its outstanding indebtedness as well as finance on-going
and future reclamation projects and to meet working capital requirements. By
selling the yet-to-be reclaimed land, it provides Benalec the opportunity to
immediately crystallise the value of its landbank, which will improve the
operating cash flow of the Company. +ve
6) Market: fear over higher interest rates globally will
impact trading negatively. Tomorrow’s trading may also be dictated by an index
rebalancing exercise.
