FBMKLCI
1892.62 +1.46pts (+0.08%)
Volume 1.621b Value 1.982b
1) The KLCI saw tepid sideway trading today before
closing in positive territory inline with the stronger US markets overnight
which were modestly higher after the FOMC minutes revealed that policy makers
decided to end the Fed's bond purchase program as early as October 2014 if the
country's economy continue to thrive. In the regional market, bourses were
mixed as the HSI climbed +0.27% while the SHCOMP -0.01 remained at overnight
level after trade data today improved but missed estimates; NIKKEI closed lower
at -0.55%. In the local market, PROPERTY index +0.90% reported the biggest gain
amongst the sectors boosted by IOIPG +2.85%, E&O +6.69% and UEMS +1.47%.
Market breadth was positive as gainers outpaced losers by 440 : 354. Futures
closed at 1888.5 (4pts discount).
2) Heavyweights : IHH +1.95% RM4.70, IOICORP +0.77%
RM5.22, ASTRO +1.79% RM3.40, FGV +1.20% RM4.21, HLFG +2.56% RM16.80, YTL -1.82%
RM1.61, PETDAG -2.33% RM22.60, TM -0.93% RM6.36
3) DBT : DUTALND 16.784mil @ RM0.52 (1.98% PUC), MAYBANK
13.5mil @ RM9.99, PUC 11.083mil @ RM0.115 (1.31% PUC @ 45.3% discount), YINSON
3mil @ RM2.91
4) Situational:-
BJFOOD +3.06% RM1.68 - Berjaya Food Sdn Bhd has
incorporated a new subsidiary in Cambodia. The principal activities of Berjaya
Roasters (Cambodia) Ltd are to develop
and operate the Kenny Rogers Roasters chain in that market, the company
mentioned. BFI is taking a 70.0% stake in the venture, with the remainder
belonging to CE Roosters Ltd, the local partner in Cambodia.
5) Parkson Holdings
Parkson Holdings announced that it had entered into 3
sale and purchase agreements for the acquisitions of 60% equity interest in
Giftmate Sdn Bhd (“Giftmate”) for a cash consideration of RM8 million, 50%
equity interest in Valino International Apparel Sdn Bhd (“Valino”) for a cash
consideration of RM3 million and 60% equity interest in AUM Hospitality Sdn Bhd
(“AUM”) together with its group of companies for a cash consideration of RM48 million.
Giftmate’s principal operations are in the areas of
producing branded premium and OEM premium gift related products which include
items like “GoldArt” and “Zhuai Mao”.
Valino specialises in menswear and owns the “Kent” brand
from Indonesia targeting young fashion office and leisure wear. It also markets
“Geoffrey Beene”, a modern classic office wear from the United States of
America.
AUM’s principal operations are in the areas of food,
beverage and entertainment. There are currently 12 brands under AUM which
include amongst others “Johnny Rockets” and “Quiznos” from the USA, “Bumbu
Desa” from Indonesia, “The Library Coffee Bar” and “The Library Restaurant
& Bar” owned by AUM. AUM has achieved a proforma unaudited consolidated
PATMI of approximately RM3.1 million and revenue of approximately RM73.3
million for the financial year ended 31 December 2013.
The rationale for the acquisitions is to provide synergy
to the Parkson Holdings Group’s existing retail locations and at the same time,
complementing the Group’s shopping mall and retail operations, representing a
new thrust for the Parkson Holdings Group & providing a new business and
income stream for the Group. These collaborations will enable the Group to
target a new business segment in corporate gift sales, venture into the food
and beverage sector, and also tap more effectively into the fashion retail
market which complements Parkson’s current retail business, through both
international brands and private labels. Valuation of AUM acquisition at 16x is
fair.
6) Market: risk aversion selling is expected after the
holding company of one of Portugal’s biggest banks missed debt payments.
