Friday, October 3, 2014

Market Roundup | 2 October 2014

 
FBMKLCI   1837.68     -7.64pts   (-0.41%)     Volume  2.130b   Value 1.877b
 
1) The KLCI slumped today closing at its day low following the lacklustre US market overnight and weak opening of the European market late in the afternoon just before the ECB meeting tonight. In the regional scene, bourses were generally weaker as unrest continued in HK as HSI & SHCOMP closed for a holiday; NIKKEI-2.61%, ASX -0.68%, KOSPI -0.77%, STI -1.09% all fell as investors pulled out of the market as they await ECB's decision tonight. In the local scene, the broad market faced selling pressure as the TECHNOLOGY -1.87% index lost the most grounds today weighed by UNISEM -2.99%, INARI -1.53%, VITROX -4.18%. Market breadth was negative thruout the day with losers towering over gainers by 732 : 179. Futures closed at 1835 (2.5pts discount).
 
2) Heavyweights : CIMB -2.51% RM6.99, SKPETRO -2.90% RM4.01, BAT -3.49% RM68.00, PETGAS -1.04% RM22.68, MAXIS -0.77% RM6.44, KLK +1.41% RM21.44, TENAGA +0.32% RM12.36, PBBANK +0.21% RM18.82.
 
3) DBT : PELIKAN 25mil @ RM1.1316mil (4.519% PUC @ 3.8% discount), PARKSON 18.4mil @ RM3.00 (1.68% PUC @ 4.8% premium), HARTA 5mil @ RM7.00, SNTORIA 5mil @ RM1.40 (1.13% PUC @ 8.5% discount).
 
4) Situational:-
 
MEDAINC -2.98% RM0.65 - Meda Inc Bhd has secured financing facilities worth RM28.6m from Malaysia Building Society Bhd (MBSB) to fund its property development projects. Meda Inc said ts wholly-owned unit, Maju Puncakbumi Sdn Bhd, secured RM16.0m Islamic Term Financing from MBSB to part finance the purchaes of a piece of freehold vacant land measuring about 20.6 acres in Pekan Tanjong  Kling, Malacca. It also secured RM12.6m Islamic Bridging Financing to party finance the development on the project land.
 
5) MALAYSIA AIRPORT (MAHB) – further to the announcement dated 23 September 2014 whereby MAHB announced that MAHB’s wholly owned subsidiary, Malaysia Airports MSC Sdn Bhd, had, on 16 September 2014, received a notice and offer of right of first refusal in relation to TAV Havalimanları Holding A.Ş.’s (TAV) offer to acquire from Limak and Limak Yatirim their collective 40% equity stake in ISG and LGM (Istanbul Airport) for an offer consideration of Euro (“EUR”) 285 million (TAV Offer) (First ROFR Offer).
Following the lapse of the First ROFR Offer on 1 October 2014, the Board wishes to announce that MAHB has, on 2 October 2014, received a notice and offer of right of first refusal in relation to TAV Offer.
In accordance with the requirements of the shareholders agreement in relation to ISG dated 19 March 2008 and the shareholders agreement in relation to LGM dated 4 January 2010, MAHB has 10 business days from the date of receipt of the notice to accept the Second ROFR Offer at the price offered by TAV. The Board is currently considering the abovementioned Second ROFR Offer and further details will be announced in due course.
We would prefer if MAHB does not exercise this Second ROFR as it is priced at 36% premium to the controlling block which MAHB purchased in late 2013 and more important is MAHB may be exposed to regulatory risk if the Istanbul Airport is entirely owned by MAHB, a foreign entity.
 
6)Market: Barring a positive surprise on ECB’s asset-buying program tonight, the market will continue to drift lower.