FBMKLCI
1878.34 +1.00pts (+0.05%)
Volume 2.117b Value 2.301b
1) The KLCI closed slightly higher in positive territory
on a holiday shortened trading week with interest seen in selected mid cap
stocks. In the regional markets, bourses were mixed with HSI +0.37%, NIKKEI
+0.18% and SHCOMP -0.09% ahead of the FED's monetary policy decision and US 2Q
GDP numbers due later today. In the local market, the PROPERTIES index surged
+1.19% buoyed by GUOCO +21.7%, IOIPG +2.0%, IWCITY +8.0%, L&G +17.4% and
SUNWAY +1.3% today. Market breadth was skewed towards the positive as gainers
outpaced losers by 461 : 408. Futures closed at 1883.5 (5pts premium)
2) Heavyweights: AXIATA +0.73% RM6.94, PPB +2.74%
RM15.00, GENM +1.64% RM4.35, TENAGA +0.48% RM12.46, DIGI 0.70% RM5.73, PBBANK
-0.40% RM19.80, MAXIS -0.89% RM6.67, TM -1.10% RM6.30
3) DBT: MAYBANK 5mil @ RM9.91, GBGAQRS 3mil @ RM1.20,
AJIYA 1.1mil @ RM2.30 (1.59% PUC @ 2.5% discount).
4) Situational:-
ZELAN+6.25% RM0.34 - Zelan Bhd was reported as among the
front runner to bag a RM250.0m contract from the East Coast Economic Region
(ECER) for the construction and completion of a drawbridge connecting Muara
North and Muara South in Kuala Terengganu. Zelan is partnering Hasrat Sedaya
Sdn Bhd, an engineering company specializing in bridge construction with a 70.0% and a 30.0% equity interest in the
joint venture respectively. Zelan outbid a few other public listed companies
for the drawbridge job, which included Bina Puri Holdings Bhd and Muhibbah
Engineerng (M) Bhd.
5) SCOMI ENERGY
Has propsed a Rights Issue of Convertible Bonds involve
the issuance of up to RM140,506,526 in nominal value of 5-year Convertible
Bonds at 100% of its nominal value on the basis of RM6.00 nominal value of
Convertible Bonds for every 100 existing SESB Shares held. The Convertible
Bonds are convertible into new SESB Shares at the option of the Convertible
Bond holders at a conversion price which will be at a discount of between
10.00% and 35.00% to the 5-day volume weighted average market price
("VWAMP") of SESB Shares on a price-fixing date to be determined
later by the Board. Assuming the issue price of the Convertible Bonds is at par
to its nominal value, the Proposed Rights Issue of Convertible Bonds will raise
gross proceeds of up to approximately RM140.5m.
Utilisation of
proceeds from listing of the Convertible Bonds will be for; RM45m to repay a
bridging loan and RM92m for working capital.
The bridging loan was taken to fund the subscription of
30.00% equity interest in Ophir Pdn S/B a JV involved in small field risk
service contract with Petronas to develop and produce petroleum from the Ophir
field offshore Msia.
6) Market: With the holiday break behind us, expect the
KLCI to play some catch up with regional markets which have been achieving new
highs. Immediate target of 1900pts with focus still in mid caps.
