Tuesday, March 24, 2015

Market Roundup | 23 March 2015


FBMKLCI   1795.85  -7.80pts (-0.43%)      Volume 2.131b   Value RM1.772b
 
1) The KLCI closed at day low erasing earlier gains despite the stronger US market and record setting run. In the regional scene, bourses were generally stronger led by the SHCOMP  +1.95% which extended its winning streak to 9th consecutive day after regulators deemed the rally as rational due to improving economic conditions of China. HSI +0.49%, NIKKEI +0.99%. Locally, INDUSTRIAL + 0.98% products was the biggest gainer today helped by PCHEM +4.29%, TOPGLOV +2.27%, LAFMSIA +0.61% while the CONSUMER index -0.83% lost the most grounds after heavyweights PPB -1.73%, QL --5.35%, BAT -1.31% fell ahead of consumption dampener from GST. Market breath was negative as losers led gainers by 436 : 373. Futures closed at 1789 (7pts discount).
 
2) Heavyweights : TENAGA-2.46% RM14.24, GENTING -3.15% RM8.30, PBBANK -0.96% RM18.42, GENM -1.67% RM4.10, KLK -1.68% RM22.14, PPB -1.73% RM14.72, PCHEM +4.29% RM5.34, TM +1.56% RM7.13.
 
3) DBT:  YTLPOWR 7mil @ RM1.49, SMRT 3mil @ RM0.53, IMASPRO 2.36mil @ RM1.70.
 
4) Situational:-
PESONA +0.61% RM0.825 - Mid-sized contractor and developer Pesona Metro Holdings Bhd is tipped to be the frontrunner for a contract worth RM250.0m in the Klang Valley. Sources said the final announcement for the mixed project should be out soon, without giving a definite timeline. According to Pesona, the company is targeting to boost it order book to RM1.0b from RM580.0m since it expanded its capacity last year. The contract would be the company's second win this year.
 
HUNZPTY +10.95% RM2.33 - Its major shareholder has proposed to take the Penang-based property company private at RM2.50 a share.  Hunza said on Friday the board had received a letter from Khor Teng Tong Holdings Sdn Bhd (KTTH), which owns 32.30%, to undertake a selective capital reduction (SCR) and repayment exercise under the privatisation exercise. Under the corporate exercise, Hunza will undertake the SCR and repayment exercise to all shareholders except the non-entitled shareholders who own a combined 41% or 92.289 million shares.  Hunza also said its current paid-up is RM225.08mil shares comprising of 225.05 million shares. The proposed SCR would reduce the paid-up by RM230.72mil by cancelling the 230.72 million shares.
 
5) IHH
IHH Healthcare Berhad announce that Gleneagles Development Pte Ltd, an indirect wholly-owned subsidiary of the Company,  acquired and subscribed 71,085,224 ordinary shares for a total consideration of  RM166.73m  representing 51% equity interest therein in Continental Hospitals Limited. The principal activity of CHL is delivering primary, secondary, tertiary and quaternary healthcare services.
This is inline with its recent acquisition spree after its indirect subs Parkway Life REIT entered into a silent partnership agreement to acquire five nursing homes in Japan for JPY5.9bil (RM182mil) earlier and it had also called off its  bid to acquire Radlink-Asia Ptd Ltd as it was blocked by the Competition Commission of Singapore.
 
+ve but we feel most of the good news has been priced in with its 20% gain YTD and valuation of 40x PE.
 
6) Market - Domestic issues and weaker commodity prices continue to weigh down the KLCI despite generally bullish global markets YTD brought on by loose monetary policies. This scenario is unlikely to change in the medium term with the market cont bouncing btw 1780-1830pts