FBMKLCI
1863.34 -8.02pts (-0.43%)
Volume 2.082b Value 1.942b
1) The KLCI slipped for a 3rd consecutive day inline with
the weaker US market overnight which broke its 5 months winning streak amidst
concern of weaker earnings and concerns of default from Argentina.. In the
regional market, bourses shrugged the better-than-expected China Manufacturing
released today as HSI -0.91%, SHCOMP -0.74%, NIKKEI -0.63%, ASX -1.36% were
dragged down by the overall global sentiments. In the local scene, investors
withdrew from the market as the overbought TECHNOLOGY -1.36% index loss the
most grounds today MPI -2.96%, INARI -1.87%, UNISEM -2.28%, GTRONIC -1.69%,
VITROX -1.65%. Market breadth was negative with losers towering over gainers by
603 : 285. Futures closed at 1858pts (5pts discount).
2) Heavyweights : GENM -2.95% RM4.27, PETGAS -1.61%
RM23.10, MAXIS -1.33% RM6.67, IOICORP -1.20% RM4.94, SKPETRO -1.16% RM4.26,
CIMB -0.42% RM6.97, PCHEM -0.75% RM6.59, SIME +0.52% RM9.55.
3) DBT : SENDAI 552.353mil @ RM0.995 (71.363% PUC @
RM3.4% discount), XINGHE 10mil @ RM0.23, JAG 5mil @ RM0.40 (3.7% discount).
4) Situational:-
KULIM +2.68% RM3.38 / SIME +0.52% RM9.55 - After two
months of bidding exercise, Sime Darby Bhd has taken the lead to close in on
New Britain Palm Oil Ltd (NBPOL). Sime has been selected as the preferred party
to negotiate a sale of KuliMm Bhd’s equity interest in NBPOL that is listed in
London. Kulim has now entered into exclusive discussions with Sime Darby to finalise
the terms of the transaction. Kulim said that the discussions would see the
terms of the transaction being finalised for a period of 60 days or longer that
would be mutually agreed upon.
5) REDTONE
The Board of Directors of REDtone wishes to announce that
its indirect subsidiary, REDtone Telecommunications China Limited (REDtone
China), had on 25 July 2014 entered into a Share Sale Agreement (“SSA”) with
GUOTAI for the divestment of Shanghai Hongseng Business Administration Co.
(SHHS) 3rd party payment license held by SHHS’a wholly owned subsidiary
Shanghai Qianyue Business Administration Company Limited (“SQBA”) for a total
cash consideration of RMB28,000,000 (RM14 million).
The consideration is based on the premium over net assets
and the value of the 3rd party payment license as perceived by GUOTAI. The
Divestment is part of REDtone China’s plan to generate cash for business
expansion and to simplify its core business and is expected to contribute
positively in this first quarter of financial year ending 31 May 2015. The
Divestment is expected to be completed by August 2014.
6) Market: Expect further consolidation with support at
1840pts on fears of contagion from Portuguese bank and Argentina default.