FBMKLCI
1839.87 27.45pts (-1.47%)
Volume 3.423b Value 2.564b
1) The KLCI recorded its biggest intraday loss for the
year; closing -27pts below parity following the weaker US overnight as well as
news of Obama authorizing an airstrike in Iraq earlier this morning. In the
regional market, bourses were generally weaker as most index closed lower
attributed to geopolital overhang in the Russia as well as the MiddleEast,
NIKKEI closed significantly lower at -2.98%, SHCOMP +0.3% recovered to close in
the green after Trade data in July beat expectations; HSI -0.23% held its
ground but closed slightly lower. In the local scene, INDUSTRIAL related stocks
loss the most ground today weighed down by PETGAS -5.04%, HARTA -2.47%, JTIASA
-5.35%, SIME -1.05%, MISC -1.34%. Market breadth was negative as losers towered
over gainers by 866 : 144. Futures closed at 1837 (3points discount).
2) Heavyweights : PBBANK -2.86% RM18.98, PETGAS -5.04%
RM21.08, MAXIS -3.03% RM6.39, CIMB -1.30% RM6.81, DIGI -1.90% RM5.66, TENAGA
-0.99% RM11.98, SIME -1.05% RM9.41, MAYBANK -0.70% RM9.92.
3) DBT : GLOMAC 11mil @ RM0.06 (33.4% discount), RPB
10mil @ RM0.40 (1.16% PUC), DGSB 8mil @ RM0.07.
4) Situational:-
SCIENTX +3.44% RM6.00 - Scientex Bhd is teaming up with
Japan's Futamura Chemical Co. Ltd to build a biaxially oriented polypropylene (BOPP)
film manufacturing plant. Under the agreement, both parties would enter a
collaborative alliance through Scientex Great Wall Sdn Bhd (SGW). Futamura
would be entitled to purchase up to 20% of SGW's paid-up within the next five
years. The initial subscription is 5% of the paid-up capital of SGW.
5) MAS : announced that the board has resolved to table
the Proposed SCR (selective capital reduction and repayment) from Khazanah to
the shareholders of MAS for their consideration. The Proposed SCR will enable
all ordinary shareholders, to receive a total repayment amount of RM1.38b which
represents a cash amount of RM0.27 for each ordinary share of RM0.10 in MAS.
Upon successful completion of the Proposed SCR, Khazanah will become the sole
ordinary shareholder of MAS. It will procure the necessary funding for the
Proposed SCR & has indicated that it does not intend to maintain the
listing status of MAS. The Proposed SCR is undertaken in view of the rationale
set out - MAS Group has recorded net losses for the past 3 financial years
& the share price has generally not performed well. In view of the above,
Khazanah intends to undertake a comprehensive review and restructuring of MAS.
Private ownership will accord greater flexibility to: (i) execute a restructuring
plan for MAS; and (ii) put in place an appropriate capital structure. Khazanah
is offering Shareholders the opportunity to exit at a premium to the prevailing
market price of MAS Shares, so as not to subject them to the associated risks
and uncertainties relating to the execution of the restructuring of the
Company.
6) Market : Market direction next week to be largely
dictated by developments over the tension in Ukraine & Iraq. A breach of
the current support level of 1,840 points may lead to a test of the next
support of 1828 pts.