FBMKLCI
1886.84 +7.72pts (+0.41%)
Volume 1.878b Value 2.047b
1) The KLCI rose today inline with the stronger US market
which surged to record high once again after key US factory output & retail
sales number boosted confidence of investors in the country's growth recovery.
In the regional market, bourses were generally stronger led by HSI +1.55%, after China's factory activity
expanded at the fastest pace since December 2013, SHCOMP +0.44%, HSCEI +1.09%,
ASX +1.48% all closed above today. In the local scene, PROPERTY +0.94% names
picked up in volume today as SPSETIA +3.43%, UEMS +1.97%, TITIJYA +0.80%, GOB
+5.64%, MALTON +5.58% were amongst the most traded. Market breadth was
generally positive as gainers beat losers by 470 : 336. Futures closed at
1888.5 (1 pt discount).
2) Heavyweights : TENAGA +1.47% RM12.38, IOICORP +1.35%
RM5.23, AXIATA +0.72% RM6.95, PPB +2.01% RM15.20, PBBANK +0.20% RM19.76,
SKPETRO +1.38% RM4.40, FGV +1.20% RM4.21, TM +0.63% RM6.33.
3) DBT : CIMB 20mil @ RM7.35, GBGAQRS 15.8mil @ RM1.20
(4.44% PUC), TEBRAU 2 mil @ RM1.33.
4) Situational:-
ECOWLD +0.75% RM5.31- Penang Development Corp (PDC) has
firmed up plans to turn some 312.0ha near the Second Bridge in Batu Kawan into
a theme park with a resort and golf course. Towards this end, PDC is expected
to award the development of two projects to two firms that are big names in the
property development sector. Eco World has won the tender to develop a golf
course and mixed-residential property project encompassing an area of 190.0ha.
It is learnt that PDC is in the final stages of negotiations with the group,
firming up terms and conditions.
5)GBH : announced that the group had on 2 July 2014
entered into MOA with the Vendors to implement a proposed reverse take-over
exercise of GBH involving the following :- a) Proposed acquisition by GBH of
the entire equity interest in Dynac Sdn Bhd ("Dynac") from the
Vendors for a purchase consideration of RM632 million to be satisfied via a
combination of cash and the issuance of new ordinary shares of RM1.00 each in
GBH at an issue price of RM2.00 per GBH Share; b) Proposed mandatory take-over
offer by the Vendors, and parties acting-in-concert to acquire all the
remaining GBH Shares at an offer price of not less than RM2.00 per Offer Share
Group also announced : (a) the execution of a conditional
sale and purchase agreement with Keladi Maju Berhad to divest nine parcels of
properties in KL for a total cash consideration of RM192.4m (b) the execution of a share sale agreement
with several parties to acquire an aggregate 35% equity interest of
Globalmariner Offshore Services Sdn. Bhd (GMOS - is principally engaged in the
business of providing consulting and management services specializing in
floating production storage and offloading ("FPSO") and offshore
marine services) for a total cash consideration of RM38,000,000.
A detailed announcement of the Proposed RTO Exercise will
be made upon the finalisation of the terms and conditions of the Definitive
Agreement - Neutral, offer price close to last done of RM2. However, the
acquisition of GMOS would enable GBH to diversify its business into other
revenue-generating businesses & is part of the group's longer term plan to
move forward instead of depending solely on its existing core businesses.
Acquisition would provide an immediate avenue for the Company to venture into
the oil and gas industry specialising in FPSO. In addition, GMOS is a PETRONAS
license holder which is expected to have competitive advantages in bidding for
any FPSO tenders in the future. Presently, GMOS has an outstanding secured
order book of approximately RM304 million which is expected to contribute
positively to the Group's future profitability.
6)Market: Continue to be supported at current level.
Trading expected to be range bound with rotational play among the lower liners.
Major support at 1860 points ( 100 SMA).
