Wednesday, July 1, 2015

Market Roundup | 25 June 2015


FBMKLCI   1716.81   -14.87  (-0.86%)      Volume 1.650b   Value RM2.083b

 

 

1) The KLCI closed at its day low dragged by TENAGA -1.72%, TM -4.34%, IHH -2.93% inline with the weaker US market overnight after Greece's bailout proposal was turned down by the IMF. Region bourses were broadly lower as the SHCOMP-3.5% led in losses following concerns of more margin clampdown by the banks, HSI fell -0.95%, ASX -0.95% while the NIKKEI -0.46%. Local stocks faced selling pressure as the CONSTRUCTION -1.23% weighed by IJM -1.87%, GAMUDA -1.81%, MUDAJYA -2.92%. Market breadth was negative as losers beat gainers by 552 : 292. Futures closed at 1717pts (parity).

 

 

2) Heavyweights : TENAGA -1.72% RM12.56, TM -4.34% RM6.60, IHH -2.93%, IOICORP -1.97% RM3.97, GENM -2.11% RM4.17, MISC -1.96% RM8.00, ASTRO -3.24% RM2.98, CIMB -0.53% RM5.57.

 

 

3) DBT:  AIM 10.998mil @ RM0.19 (4.13% PUC), KRETAM 8.426mil @ RM0.36, LCHEONG 5.6mil @ RM0.19 (8.48% PUC).

 

 

4) Situational:-

 

DESTINI 0.00% RM0.67 - Destini Bhd has entered into a HOA with three parties to buy Destination Marine Services Sdn Bhd (DMS), involved in boat building, ship repair and marine-related engineering services, for RM90 million. The acquisition is a gateway to further increase its range of products and diversify its supply of lifeboat segment by venturing into the supply, testing and commissioning of paramilitary boats and its related MRO services to a different market segment.  The purchase consideration will be satisfied via new shares at 70 sen each in Destini and/or cash. Under the HOA, Destini will also be given a profit guarantee of RM10 million for 2015 and RM15 million for 2016 to Destini, arising from the project. Pending the completion of the proposed acquisition, DMS will proceed to award a sub-contract from its project to Destini.

 

 

5) GAMUDA : announced that the Housing Development Board of Singapore had on 23 June 2015 accepted the tender submitted jointly by Gamuda with Evia Real Estate Pte Ltd ("Evia") and Maxdin Pte Ltd ("Maxdin") to acquire a piece of leasehold land measuring approximately 12,154.6 square meters at the tender price of SGD 345.86m via a joint venture company which shall be incorporated on the basis of 50% (Gamuda): 20% (Evia): 30% (Maxdin) ("JVCo"). Gamuda's participation in JVCo shall be via Gamuda's wholly owned subsidiary, Gamuda (Singapore) Pte Ltd. The Land is a vacant parcel of leasehold land measuring approximately 12,154.6 square meters with a lease tenure of 99 years, which shall commence on the date of full payment of the tender price. The Land is located in Toa Payoh, Singapore. The current type of allowable development on the Land is condominium or flats or with written approval, a combination of flats and strata landed houses (serviced apartments are not allowed). The Purchase Consideration will be satisfied by JVCo in cash and bank borrowings;  +ve, the acquisition and proposed Toa Payoh Development represent an excellent opportunity for the Group to make its maiden presence in Singapore and to participate in a development which is strategically located in a matured residential area. It is also one of Singapore's choice locations in view of its proximity to MRT lines and stations. The Proposed Toa Payoh Development is expected to contribute positively to the future earnings and thereby improve shareholders' value over the medium to long-term.

 

 

6) Market : The marginally bullish bias from yesterday was short lived. All in, we maintain our view that the key index will trend sideways within 1705-1750 points this week, with half yearly closing activities to feature.