FBMKLCI
1837.17 +3.32pts (+0.18%)
Volume 2.039b Value 2.009b
1) The KLCI gapped down in earlier trade, erasing
yesterday's gain but gradually recovered throughout the day to close at its day
high bucking the regional trend. In the regional market, bourses were negative
as slowing growth in US manufacturing and the overhang of the Ukraine crisis
continued to supress sentiments; NIKKEI -0.36%, HSI -0.52%, SHCOMP +0.05%. In
the local scene, selected heavyweight stocks were boosted at the auction period
pushing the index into the green, TM +2.34%, PETGAS +1.36%, PPB +0.73%, CIMB
+0.56%, BAT +0.50%, SIME +0.43%, KLK +0.16%. Market breadth was skewed towards
the negative as losers outpaced gainers by 439 : 332. Futures closed at 1836 (1
pt discount).
2) Heavyweights: IHH -1.57% RM3.74, GENTING -0.71%
RM9.69, PCHEM -0.74% RM6.70, TM +2.34% RM6.11, PETGAS +1.36% RM23.82, CIMB
+0.56% RM7.15, DIGI +0.94% RM5.29, AXIATA +0.45% RM6.61,
3) DBT: DESTINI 15.555mil @ RM0.40 (3.153% PUC @ 23.9%
discount), INFOTEC 11.376mil @ RM0.30, TAT GIAP 10.301mil @ RM0.20 (9.921% PUC
@ 18.4% discount)
4) Situational:-
KIANJOO +1.21% RM3.34 - Kian Joo Can Factory Bhd has
accepted Aspire Insight Sdn Bhd's offer to acquire all of Kian Joo's assets and
liabilities for MYR1.5b cash, or MYR3.30 per share. The group said it has
entered into a conditional business, properties and the assets sale agreements
for the proposed disposal. Kian Joo shareholders would cash in about MYR3.36
per share from the agreement as the company also announced that Aspire has
agreed to waive the term of the proposed final tax exempt dividend of 2.5 sen
per share and a special tax exempt divided of 3.75 sen per share based on the
financial year ended December 2013.
5) PARAMOUNT
Paramount Corporation entered into a Purchase and
Development Agreement with Penang Development Corporation for the proposed
acquisition of a piece of freehold land measuring in total area approximately
30.7 acres situated at Batu Kawan, Mukim 13, District of Seberang Perai
Selatan, State of Penang at a total cash consideration of RM67m The land is
located in Bandar Cassia within Batu Kawan, the newest and largest township on
the mainland of Penang state. It is located about 1.5 km from the upcoming Batu
Kawan Interchange of the Second Penang Bridge.
The Land currently zoned for agriculture use.
The Land, upon the
completion of the acquisition will be divided into (2) parcels, of which one
(1) parcel measuring in total area approximately 10.4004 acres will be rezoned
to institutional use for the proposed development of a new flagship university
college campus for Paramount Group's KDU College Penang and one (1) parcel
measuring in total area approximately 20.3103 acres will be rezoned to
mixed-use for a proposed mixed development to be undertaken by the Paramount
Group.
+ve as more developers refocus their strategy to the
north and in particular land areas surrounding Penang's 2nd link.
6) Market - Sovereign downgrades in emerging markets
namely Brazil and Argentina coupled with slower than expected manufacturing
numbers in the major economies should see cautious stance maintained hence as
KLCI at the top end of its trading band we could see continued selling
especially in core blues.