Tuesday, January 27, 2015

Market Roundup | 26 January 2015


FBMKLCI 
1796.44pts    -6.64pts (-0.37%)      Volume 1.879b   Value 2.133b

 

1)  The KLCI traded the day in negative territory as investors took profit on news Greece's leftist party Syriza has won the election over the weekend adding concern to the Euro zone. In regional markets, bourses recovered and ended mixed with SHCOMP +0.96%, HSI +0.24% & STI -0.42%, NIKKEI -0.25%.  In the local scene, INDUSTRIAL PRODUCTS -0.84% index recorded the most loss led by PCHEM -2.90%, PMETAL 4.30%, COASTAL -6.45%, KNM -8.80%. Market breadth was negative as losers outpaced gainers 559 : 312. Futures closed at 1795(1 point discount).

 

2) Heavyweights : PCHEM -2.90% RM5.35, MAYBANK -0.89% RM8.92, DIGI -1.09% RM6.36, PBBANK -0.44% RM18.06, CIMB -0.73% RM5.46, GENM +1.79% RM3.98, GENTING -1.02% RM8.76, IHH +0.96% RM5.26.

 

3) DBT:  TROP 14.0mil @ RM1.05 (0.96% premium), KRETAM 7.699mil @ RM0.46 (1.1% premium), KANGER 6.9mil (1.39% discount)

 

4) Situational:-

SENDAI+3.45% RM0.60 - Eversendai Corporation Berhad has secured a contract worth RM184 million for a mixed-use development for the construction of the Dhirubhai Ambani International Convention and Exhibition Centre in Mumbai. Fabrication work would be undertaken by Eversendai’s fabrication facilities in Malaysia, Dubai and India, and was scheduled to be completed by April 2016. It is also a major breakthrough for Eversendai as it allows us to strategically position for future contracts with Reliance Industries Ltd in India.

 

5) Capital Mall

Entered into a conditional sale and purchase agreement with Tropicana City Sdn. Bhd for the acquisition of Tropicana City, comprising the following, a four (4) storey shopping mall known as “Tropicana City Mall” with a net lettable area of approximately 448,248 sq ft as at 15 January 2015 and a twelve (12) storey office building known as “Tropicana City Office Tower” with an NLA of approximately 101,246 sq ft as at 15 January 2015 for a total purchase consideration of RM540.0 million. The properties are erected on a piece of land measuring approximately 36,607 square metres, or approximately 394,034 square fee.

 

As at 15 January 2015, the Retail Mall and the Office Tower have committed occupancy rates of 89.2% and 100.0% respectively, which is higher than the average occupancy of 82.1% and 76.3% for shopping malls and offices, respectively, in Selangor as at 30 June 2014

 

The Proposed Acquisition will further strengthen CMMTs position as a sizeable, well geographically diversified shopping mall real estate investment trust in Malaysia. Following the completion of the Proposed Acquisition, CMMTs property asset value will increase by approximately 16.7% from approximately RM3.2 billion to approximately RM3.8 billion.

 

There was no disclosure on the gearing level for the mode of financing of the Proposed Acquisition, hence the Proposed Acquisition may or may not be immediately yield accretive. Hold

 

6) Market: Global uncertainties and generally weak economic growth numbers will continue to weigh on markets. Expect the early part of the week to continue to be dominated by profit taking in O&G counters which staged a significant technical rally last week.