FBMKLCI
1891.16 -1.49pts (-0.08%)
Volume 1.783b Value 1.987b
1) The KLCI retraced today, inline with the weaker US
market after investors backed off the toppish US market just before the release
of FOMC minutes tonight. In the regional market, bourses were generally
negative as the HSI -1.55%, SHCOMP -1.23%, ASX -1.06% were weighed down by
sentiments from the West and key China inflation data due tomorrow. In the
local market, profit taking was seen all across the board as the PROPERTIES index
recorded the biggest loss amongst the sectors weighed down by selective names
such as UEMS -1.45%, MRCB -2.23% RM1.75, SPB -2.79%, IJMLAND -1.18%. Market
breadth was negative with losers beating gainers by 498 : 341. Futures closed
at 1891 (parity)
2) Heavyweights : PETGAS -1.22% RM24.26, IOICORP -1.33%
RM5.18, CIMB -0.54% RM7.24, PETDAG -1.11% RM23.14, SIME -0.31% RM9.66, IHH
+1.99% RM4.61, MAYBANK +0.40% RM9.99, TM +0.94% RM6.42.
3) DBT : SUMATEC 23mil @ 0.34 (10% discount), AMBANK
10.447mil @ RM7.1570, SUNZEN 10.436mil @ 0.26 (6.98% PUC, 17.5% discount), MAS
10mil @ RM0.23, SNTORIA 6mil @ RM0.88.
4) Situational:-
PELIKAN -11.59%
RM1.22 - Pelikan International Corp Bhd has announced plans to float key units
and selected assets in Germany via Frankfurt-listed Herlitz Aktiengesellschaft,
its 70.9%-owned subsidiary, and a series of corporate exercises to raise
RM491.3m. The firm said that it would embark on a streamlining exercise to
inject assets within Pelikan and Pelikan Holding AG, its 96.5%-owned unit
traded on Switzerland's SIX Stock Exchange, into Herlitz for EUR266.0m
(RM1.2b), in exchange for 266.0m new bearer shares of one euro each in Herlitz.
Pelikan also proposed a private placement of up to 50.0m Herlitz shares at a
minimum offer price of EUR1.0 apiece, an offer for sale by Pelikan of up to
30.0m Herlitz shares and an offer for sale by Pelikan Holding of up to 30.0m
Herlitz shares.
5) YINSON
A wholly-owned subsidiary, Yinson Production AS received an offer letter from BW Offshore Limited proposing a process for reaching a mutual
agreement over the eventual 100% ownership of the floating, production, storage
and offloading facility vessel, Petroleo Nautipa and its owner, Tinworth Pte.
Ltd., by either parties.
Tinworth is a 50-50 joint venture held between Nautipa AS
a wholly-owned subsidiary of Yinson Production AS and Prosafe Nautipa AS a
direct subsidiary of Prosafe Production Public Limited which is ultimately held
by BW Offshore. It is proposed that the sale and purchase be in respect of 100%
equity interest in PNAS or 100% equity of NAS, as the case may be. Completion
will be conditional upon receipt of YHB shareholders' approval.
Further announcement on the decision undertaken by the
Board will be made by Yinson within the next ten business days from the date of
receipt of the Offer Letter by Yinson Production AS.
We continue to recommend YINSON as our preferred exposure
to the FPSO market as full year contribution from Lam Son FPSO and acquired
Fred Olson will be seen in FY2015, coupled with their bids for new contacts in
SEA and Africa. BUY
6) Market - Consolidation ahead of expected push above
the 1900 pts on the KLCI
