FBMKLCI 1830.78 +8.95pts (+0.49%) Volume 2.154b Value RM2.458b
1)
The KLCI gained for a 2nd straight day following the stronger US market
overnight which gained amid more stimulus bet in China. Regional closed lower
as SHCOMP -1.02% saw profit taking before the release of China PMI data
tomorrow, NIKKEI closed -1.05% lower while the HSI remained tepid thruout the
day. In the local scene, FINANCE +0.66% gained the most grounds amongst the
sector boosted by MAYBANK+0.64%, PBBANK +0.64%, HLFG +1.67%; selective stocks
surged at auction on window dressing, namely WPRTS +7.77%, BSTEAD +2.90%, POS
+4.75%. Market breadth was neutral as gainers and losers were evenly matched at
417 : 410. Futures closed at 1831 (parity).
2)
Heavyweights : PBBANK +0.64% RM18.88, MAYBANK +0.64% RM9.33, GENTING +1.35%
RM9.00, KLK +1.60% RM22.78, MISC +1.43% RM8.49, GENM +1.19% RM4.23, TENAGA
+0.27% RM14.36, BAT +1.26% RM68.66.
3)
DBT: BERTAM 12mil 2 RM0.865 (5.80% PUC @ 20% premium), SKPRES 10mil @
RM0.82 (1.11% PUC), IGB 8mil @ RM2.70 (3.6% discount), PERDANA 1.617mil @
RM1.1750 (5.3% discount).
4)
Situational:-
AMPROP+7.3%
RM0.88 - Amcorp Properties Bhd is teaming up with Temasek and two other
companies to acquire two London properties for GBP308.0m
(RM1.7b).
Amcorp had inked a joint venture with Temasek, Hotel Properties Ltd (HPL) and
UK-based developer Native Land (NL) to jointly develop Sampson House and
Ludgate House in the heart of London’s South Bank, along River Thames. The deal
would see the establishment of a JV company, Bankside Quarter (Jersey) Ltd,
with Amcorp Properties, Temasek and HPL respectively owning 30.0% stake while
NL would own the remaining 10.0%.
5)
KAREX
The
company entered into two Sale and Purchase Agreements with Tropical Produce
CompanyLimited for the purchase of two pieces of lands measuring
approximately total 4.5293 hectares in the District of Pontian, Johor for a
total cash consideration of RM14.8m.
The
Proposed Acquisition presents the opportunity for Karex to purchase the
Property on which its’ existing plant is located. The new plant is expected to
be completed by [June 2016]. With the Proposed Acquisition, certain
manufacturing functions of Karex may not be relocated and shall continue to
operate without disruption, while additional capacity will be added to the new
plant.
Furthermore,
the Proposed Acquisition will provide the expansion space to its’ catheters
business. Currently, the catheters business is operating on Lot 2491.
The
Proposed Acquisition will enable KISB to own the Property, which will result in
annual rental savings of RM376k/pa. Furthermore, the Proposed Acquisition will
eliminate the risk of non-renewal of the Tenancy Agreement as there is no
assurance that the Tenancy Agreement will be renewed by the Vendor.
+ve
6)
Market: Focus will resume on credit rating issues and the RM weakness with the
KLCI expected to drift back to the lower end of the current range of btw
1830-1780pts levels.