1)The KLCI erased part of yesterday's losses to close
+0.49% inline with the stronger regionals. SHCOMP+1.76% led the region after
weak economic data points spurred stimulus bets, NIKKEI +1.43% continued to
climb on weaker Yen, while the HSI +0.34% and ASX +0.98% closed higher.
Locally, volume traded closer to the 3b mark as selected penny names,
ETITECH+9.09%, GENETEC +27.02%, WINTONI +14.49%, INGENCO 0.00% tops the most
active list; TECHNOLOGY index +0.97% outperformed the rest of the sector
boosted by gains amongst, INARI +2.50%, JCY +1.36%, CUSCAPI +15.78%. Market
breadth was positive as gainers outpaced losers by 537 : 313. Futures closed at
1782.5 (4pts discount).
2) Heavyweights : PBBANK +1.095 RM18.40, AXIATA +1.57%
RM7.09, GENTING +2.33% RM8.33, CIMB +0.86% RM5.85, YTL +2.58% RM1.59, MAYBANK
+0.33% RM9.12, BAT +1.41% RM68.80, IHH +0.93% RM5.42.
3) DBT: TEOSENG 8mil @ RM1.90 (2.66% PUC), K1 3mil @
RM0.52, MUIPROP 1.702mil @ RM0.33
4) Situational:-
FABER +2.50% RM3.28 - Faber Group Bhd, which is
70.7% owned by UEM Group Bhd, has finally sealed a new concession for the
provision of support services to government hospitals in Perak, Penang, Kedah
and Perlis. Its associate companies, One Medicare Sdn Bhd and Sedafiat Sdn Bhd,
have also secured a similar contract in Sabah and Sarawak. Under the new deal,
its 100.0%-owned Faber Medi-Serve Sdn Bhd (FMS) was awarded a 10-year contract
to provide hospital support services (HSS), as well as to undertake the
development of assets and services information system at government healthcare
facilities in the covered regions.
GOB +0.97% RM0.52 - Global Oriental Bhd's shareholders
agreed to the disposal of two parcels of land in Selangor for RM142.4m to
improve cash flow and loan repayment. Executive director said the disposal
would also help support the company's new development in Jalan Ampang here. The
2.27-hectare project, comprising integrated townhouses and high-end
condominium, is expected to begin in the coming month, with completion period
for about five years. It would also comprise commercial offices.
5) QCAPITA : announce that its unitholders have approved
the REIT's proposed acquisition of Platinum Sentral at an EGM today. The
proposed acquisition of Platinum Sentral, a commercial development consisting
of five blocks of 4 to 7 storey commercial building comprising
office-cum-retail space, a multi-purpose hall and two levels of car park
located at Kuala Lumpur Sentral for a purchase consideration of RM740 million,
was announced on 29 January 2014. The purchase will be satisfied via a cash
payment of RM476m and the balance RM264m by the issuance of 206.25m
consideration units at an issue price of RM1.28 per unit. Upon completion of
exercise, QCT's total assets will increase from RM868m to RM1.6b.
+ve on approval, MSP/MRCB will
emerge as a new strategic investor of QCT, who together with Quill Resources
Holding Sdn Bhd ("QRHSB") and Global Jejaka Sdn Bhd
("GJSB") will hold 41%, 39% and 20% equity interest in QCM
respectively. MRCB, QRHSB and GJSB will
provide the right of first refusal to QCT to purchase any office buildings
proposed to be disposed of by them, thus providing a pipeline of potential
acquisition opportunities for QCT to evaluate in the future. Correspondingly,
this augurs well with QCT's continuing strategies to explore yield accretive acquisitions.
The inclusion of Platinum Sentral into QCT's portfolio will almost double QCT's
asset base in terms of total asset size and will diversify its existing
portfolio presence into Kuala Lumpur Sentral.
6)Market : The decent trading volume and bearish readings
in key indicators suggest continued selling pressure in the market. We expect
the KLCI to continue trading between 1770 - 1820 points for this week with a
bearish bias.