FBMKLCI
1860.43 -0.11pts (-0.01%)
Volume 1.467b Value 1.298b
1) The KLCI rebounded to close just flat today after it
threatened to break below the 1860 support in the earlier session today. In the
regional market, bourses were flattish as well with the SHCOMP closing just
+0.03% higher and NIKKEI and HSI closed for a public holiday today. In the
local scene, optimism was renewed amongst 2nd liners names after reports showed
an uptick in foreign buying in the country; names such as KNM +3.86%, BENALEC
+5.02%, SCOMIES +1.52% picked up in volume today. Market breadth was positive
with gainers beating losers by 460 : 273. Futures recovered today closing at
1852pts (7.5pts discount).
2) Heavyweights : PETGAS -0.68% RM23.36, PCHEM-0.58%
RM6.76, BAT -1.29% RM61.20, GENTING -0.40% RM9.78, TM -0.48% RM6.10, MAXIS
+0.72% RM6.97, SIME +0.42% RM9.48, PBBANK 0.20% RM19.84
3) DBT : NEXGRAM 35.557mil @ RM0.135 (1.98% PUC @ 17.3%
premium), PWROOT 8mil @ RM1.83 (2.64% PUC), HALEX 7.385mil @ RM1.00 (2.64% PUC
@ 6.3% premium).
4) Situational:-
MUDAJYA -0.37% RM2.63 - Mudajaya Group has proposed to
acquire a 70% stake in Indonesian construction PT Harmoni Energy Indonesia for
US$5.8m (RM18.5m). Mudajaya entered into a memorandum of agreement with PT
Indomuda Satria Internusa for the proposed acquisition early this month. PT
Harmoni is a 70%-owned subsidiary of PT Indomuda. It is constructing a 2x7
megawatt coal-fired power plant in Sulawesi, Indonesia, under a power purchase
agreement.
5) ENCORP : announce that
it's major shareholders Lavista Sdn Bhd ("LSB") and Pegang
Impian Holdings Sdn Bhd ("PIHSB"), have entered into separate
conditional SPAs with Felda Investment Corporation Sdn Bhd (FIC) for the
following: (i) the disposal by LSB of 29.85% of the issued and paid-up share
capital of Encorp , 8,329,505 5-year warrants
and 16,659,009 5-year 6% redeemable convertible secured loan stocks to
FIC for a total cash consideration of RM133.7m
and (ii) the disposal by PIHSB of
19.60% of the issued and paid-up share capital of Encorp, 10,469,000 Warrants
and 20,938,000 RCSLS, to FIC for a total cash consideration of RM106m. The LSB
SPA and PIHSB SPA are inter-conditional upon each other. Upon completion of the
Proposed Disposals, FIC will hold approximately 49.45% of the issued and
paid-up share capital of Encorp, and as such, will be obliged to extend a
mandatory take-over offer to acquire the shares, warrants and RCSLS at a cash
offer price of RM1.55 per Offer Share, RM0.55 per Offer Warrant and RM1.55 per
Offer RCSLS;
Neutral, offer price at no premium to last traded. The
acquisition is in line with FELDA's strategy to build it's capabilities in
property development & investment properties. Longer term, acquisition also
expected to serve as a platform for FELDA to undertake the development of it's
land banks which include those in Klang Valley & other urban centers.
6) Market : Cautious trading expected to continue as
concerns on tighter trading limits and central bank's policy meeting later in
the week remain. Support at 1850 level expected to remain.