FBMKLCI
1872.97 -10.17pts (-0.54%)
Volume 2.389b Value 2.182b
1) The KLCI extended losses today in tandem with the
weaker US market overnight as the tragic incident of the Malaysia Airlines
flight MH17 and Israel sending troops into Gaza triggered a selloff reaction in
the overall market. Regional bourses were generally weaker as investors trim on
riskier assets following the rising of geopolitical risks, HSI -0.28%, NIKKEI
-1.01% closed in the red; whilst the SHCOMP +0.17% rose slightly on the back of speculated loosening of
property curbs. In the local scene, while most of the stocks felt a kneejerk
reaction from global sentiments, stocks in focus today were related to the
aviation sector namely MAS -11.11%, AIRASIA -2.09%, AIRPORT -4.85%. Market
breadth was negative with losers beating gainers by 550 : 303. Futures closed
at 1873 (parity).
2) Heavyweights : MAYBANK -0.90% RM9.91, PBBANK -0.59%
RM20.02, GENTING -1.22% RM9.68, BAT -2.42% RM68.30, AXIATA -0.57% RM6.90, MISC
-1.63% RM6.61, YTL -1.88% RM1.56, GENM -1.17% RM4.20.
3) DBT : MPCORP 15mil @ RM0.55 (5.21% PUC @ 13.4%
premium), GASMSIA 10.14mil @ RM3.55, APFT 10mil @ RM0.1450 (3.17% PUC @ 21.7%
discount).
4) Situational:-
BHIC +6.8% RM2.67 - Boustead Holdings Bhd’s subsidiary
Boustead Naval Shipyard Sdn Bhd (BNS) has formalized a RM9.0b contract with the
Ministry of Defence to build six second-generation patrol vessels with littoral
combat ship capability for the Royal Malaysian Navy. According to BNS, work on
the final design and the key procurement aspects of the project is well in
hand, and the formal contract allows them to recognise a greater element of their
on-going work. The ministry had stated in the Letter of Award that it would
make advance payment of RM700.0m in stages to BNS, which Boustead said would
contribute positively to its future earnings.
5) Goldis & IGB
Goldis proposes to undertake a conditional take-over
offer to acquire all the remaining ordinary shares of RM0.50 each in IGB
Corporation Berhad (IGB) which are not already held by Goldis at an offer price
of RM2.88 per Offer Share. Goldis directly holds 30.66% of IGB Corp Shares
while the persons acting in concert with it (PAC) with respect to the Proposed
Offer collectively hold 20.49%.
The Offer Price was arrived at after taking into
consideration the following:
(i) the market prices of the IGB Corp Shares prior to the
date of the Notice
(ii) price to book ratio of 0.89 times
(iii) IGB Corp’s EBITDA ratio of 7.30 times; and
(iv) IGB Corp’s price to earnings ratio of 19.10 times
for FY13
The Proposed Offer shall remain open for acceptances for
a period of 21 days from the posting date of the offer document to be issued
pursuant to the Proposed Offer.
The Proposed Offer is conditional upon the following:
(i) Goldis having received before 5.00 pm on the 21st day
after the Posting Date which would result in Goldis holding, in aggregate with
such IGB Corp Shares that are already acquired, held or entitled to be acquired
or held by Goldis, if any, more than 50% of the voting shares of the Offeree;
(ii) the approval of the shareholders of Goldis for the
Proposed Offer at an Extraordinary General Meeting (“EGM”) to be convened; and
(iii) consent or approval of any other relevant
authorities or parties, if required.
The proposed takeover is expected to be completed by year
end.
6) Market: Expect index to retest the support levels of
1860points on rising geopolitical risk and concerns of slowing economic growth
in the region.
