FBMKLCI
1877.34 +0.29pts (+0.02%)
Volume 1.706b Value 1.634b
1) The KLCI closed flat rebounding from its low of
1868.14 (-8.91pts) as index closed in positive territory ahead of the long Raya
Weekend. This is inline with the toppish US market which also closed flat
overnight. In the regional market, bourses were stronger led by China's SHCOMP
+1.02% as material stocks gained, HSI +0.31%, NIKKEI +1.13% were also stronger
today. In the local market, CONSUMER index +0.78% gained the most grounds to
day helped by strong gains in BAT +1.77%, PPB +1.81%, UMW +1.53%, NESTLE +0.41%
and MFLOUR +5.75% today. Market breadth was neutral today as gainers beat
losers by a fraction 420 : 406. Futures closed at 1874 (3pts discount).
2) Heavyweights : CIMB+0.86% RM6.97, PCHEM +1.34% RM6.80,
AXIATA +0.58% RM6.89, BAT +1.77% RM71.08, PPB +1.81% RM14.60, TENAGA -1.27%
RM12.40, PBBANK -0.60% RM19.88, IHH -1.24% RM4.75.
3) DBT : DESTINI 72mil @ RM0.65 (9.038% PUC @ 7.9%
discount), BERTAM 68mil @ RM1.18 (32.88% PUC), KRETAM 15mil @ RM0.50 (13.1%
discount), IRIS 11.85mil @ RM0.4627 (6.4% Premium)
4) Situational:-
HHGROUP +24.44% RM0.56 - Heng Huat Resources Group Bhd
made a firm debut on the ACE Market of Bursa Malaysia on Friday, opening at 61
sen, which was 16 sen above its offer
price of 45 sen. The share price consolidated around the RM0.55-RM0.565 level
after peaking at RM0.62. The group saw 51.8mil traded in the market.
5) UMW
UMW has announced UMW Corporation Sdn Bhd (“UMWC”), a
wholly-owned subsidiary of the Company, had on 25th July 2014, entered into a
Sale and Purchase Agreement (“the SPA”) with Dato’ Muthukumar a/l Ayarpadde for
the proposed disposal by UMWC of 61.08% in MK Autocomponents Ltd, 55% equity
interest in MK Automotive Industries Ltd, and Disposal and transfer of the
Compulsory Convertible Debentures (“CCD”) of 106.17 million aggregating USD20.0
million for a total cash consideration of RM73,126,825.
These subsidiaries is involved in the manufacturing of
automotive components and parts in India. The Proposed Disposals are expected
to result in a loss of approximately RM93 million which is derived before
accounting for transaction costs associated with it. The Proposed Disposals are
expected to be completed by 31st December 2014. This offers a strategic
opportunity for UMWC to exit from the challenging Indian automotive component
business and re-allocate resources to other businesses within the UMW Group.
6) Market: Expect light trading ahead with two-tier market
to persist with trading activities focusing on the lower liners
