FBMKLCI
1871.52 +12.18pts (+0.66%)
Volume 1.506b Value 2.505b
1) The KLCI rebounded today closing +12pts above boosted
by heavyweights MAYBANK +1.85%, DIGI +2.78%, IOICORP +2.45%, TM +2.47% on month
end window dressing. The stronger US overnight also attributed to the optimism
amongst the region after the broad index closed higher just before the 2nd day
of the FOMC in the US tonight. In the region, sentiments were generally better
as SHCOMP+0.30% , STI +0.79% closed higher; HSI however declined amid profit
taking in the market just before China closed for the long weekend. In the
local market, PLANTATION +1.11% index recorded the highest gains amongst the
sector after heavyweights IOICORP +2.45%, KLK +1.25%, GENP +1.83% closed
higher. Market breadth was negative however with losers outpacing gainers by
419 : 362. Futures closed at 1863.5pts (8pts discount).
2) Heavyweights : MAYBANK +1.85% RM9.90, DIGI +2.78%
RM5.54, IOICORP +2.45% RM5.00, SIME +1.17% RM9.44, TM +2.47% RM6.20, AXIATA
+0.74% RM6.73, ASTRO +4.06% RM3.33, PCHEM -1.02% RM6.73
3) DBT : DBHD 157.78mil @ RM0.50 (51% PUC @ 71% premium
sold to Seaview Holding), RAYA 16mil @ RM0.20 (13.49% PUC @ 53% premium), UMWOG
12.4mil @ RM3.90 (3.33% discount).
4) Situational:-
OCK +2.41% RM1.27 - OCK International Sdn Bhd will buy a
85% equity stake in PT Putra Mulia Telecommunication from Song Chin Yew and Lim
Hui Seeh for RM21.25m to be satisfied in RM10m cash and issue of 10.23m new OCK
shares priced at RM1.10 each. Lim will hold the remaining 15% of PT Putra
Mulia, which is involved in the provision of telecommunication solution service
in Indonesia. The cash portion of the deal will be funded with bank borrowings,
OCK said. The stake buy is in line with its growth plans to expand its core
business abroad. This acquisition will enhance the group's earnings and provides
them an immediate foothold in the vast Indonesian market. Accumulate.
5)IGB REIT
1Q Mar 2014
Tover +12.5% RM114.1m Net +17%
RM57.7m EPS 1.69sen
In line
with cons (f) RM220.3m
Net property income was RM77.5million or up 12.2% compared
with the corresponding quarter in 2013 of RM69.1 million.
This was mainly due to higher total rental income in the
current quarter.
The distributable income for the current quarter amounted
to RM66.7 million or 1.93 sen per unit, consisting of realised profit of RM57.7
million and the non-cash adjustment arising from Manager fee in units of RM7.6
million.
The retail market remains challenging as Malaysia's
retail industry recorded a sluggish sales growth of 3.1% in the third quarter
of
2013 compared with 4.8% in 2012, according to a report by
Retail Group Malaysia New policies on bank borrowing introduced by BNM to
control household debt in mid 2013 have affected sales of big-ticket items
including furniture and electrical & electronics goods. During this period,
many retailers continued to offer steep discounts and attractive offers to
attract shoppers. Once again, their bottom line was severely affected.
While prospects remain challenging the yield of 5.8% is
attractive enough for investors to continue to hold the REIT.
6) Market - The expected cut in US bond purchases in
tonight's FOMC announcement should see less volatility in markets when trading
resumes on Friday after the Labour Day break.