FBMKLCI
1846.87 +7.73pts (+0.42%)
Volume 2.053b Value 2.045b
1) The KLCI saw choppy trading today as the US market
closed lower overnight after President Obama called for further economic
sanctions against Russia over its takeover of Crimea, the CI however closed at
its day high at auction after selected stocks boosted the index extending its
winning streak to 6 days. In the regional market, HSI fell -0.24%today weighed
by SHCOMP which closed -0.83% lower
after IPI for February missed estimates; however, NIKKEI rebounded after
the index hit technical support level of 14,200pts closing +1.01% above. In the
local scene, selected bluechips such as PBBANK +0.52%, CIMB +0.56%, KLK +0.58%,
IOICORP +0.84%, TENAGA +1.33%, SIME +0.32% boosted the index into the green at
auction while the Technology INDEX-0.49% lost the most grounds on profit
taking. Market breadth was negative today with losers beating gainers by 417 :
387. Futures closed at 1845pts (1.5 Pts discount).
2) Heavyweights: TENAGA +1.33% RM12.12, PBBANK +0.52%
RM19.30, SKPETRO +1.82% RM4.47, CIMB +0.56% RM7.16, DIGI +0.74% RM5.38,
IOICORP +0.84% RM4.80, PETDAG +1.45%
RM30.64, BAT +1.17% RM60.20.
3) DBT: MEGB 16.5mil @ RM0.425 (4.02% PUC @ 18.3%
discount), PWORTH 14.1mil @ RM0.18 (7.7% discount), XDL 5.481mil @ RM0.345
(18.9% premium), TITIJYA 2.7mil @ RM1.86 (4.2% discount), CRESBLD 1.5mil @
RM1.50.
4) Situational:-
PRESBHD +1.29% RM3.91 - Prestariang had entered into a 70
: 30 MOU with YPJ Holdings Sdn. Bhd. An investment arm of the Johor Education
Foundation, to set up Petroleum Academy Malaysia in the state of Johor.
Prestariang's objective is to provide vocational education and technical
training, to address the human capital needs of the National Key Economic Area
projection for the nation’s oil and gas industry. The MOU entails the formation
of a joint-venture by both parties for the purpose of undertaking the
setting-up, running and management of the Academy in the state of Johor to
provide the skills and up-skilling trainings in the oil and gas industry to
youths and those who are interested in attaining or expanding their knowledge
and skills in the Oil and Gas Industry
to meet the expected demand of skilled workers throughout the nation and
in particular in relation to the Refinery and Petrochemicals Integrated
Development (“RAPID”) in Pengerang Johor.
5) Telekom (TM) & Green Packet (GP) – TM entered into
an Investment Agreement with GP and SK Telecom Co. Ltd. (SKT) to collaborate on
developing a next-generation LTE infrastructure to offer customers a full-suite
of converged communications services. This exercise will see TM emerging as a
57% shareholder in Packet One Networks (Malaysia) Sdn Bhd (P1).
The agreement will establish a partnership framework for
the three parties to share in the ownership and collaborate in the future
growth of P1, Malaysia’s leading WiMAX provider. The parties will seek to
leverage on LTE technology to deliver high-quality and reliable data services
across all segments of the community. P1 will capitalise on its spectrum
assets, existing wireless platform and network footprint of close to 2,000
sites, and experienced management and organisation to expedite its entry into
the LTE space.
As part of the Investment Agreement, TM will initially
invest RM350 million into P1 via the subscription of new ordinary shares to
make TM the majority shareholder with an estimated 57% stake, with GP and SKT
remaining as key strategic shareholders of P1 upon completion. TM will
additionally invest up to RM210 million into GP via newly issued redeemable
exchangeable bonds, which may be exchangeable into GP’s stake in P1 in the
future.
This is a symbiotic deal for TM & GP as TM gains a
foothold in the important mobile broadband service at a reasonable price. This
is currently the missing part in TM’s business portfolio & mobile data
service is vital as it is the trend moving forward. While GP’s financial
position will be greatly improved from the cash injections as P1 requires heavy
investments in its roll out of LTE infrastructure & network. Partnering
with TM also gives credibility to P1 as a long-term broadband service provider.
6) Market: barring exogenous events, the market is
expected to be steady ahead of the first quarter closing on Monday.
