Wednesday, August 12, 2015

Market Roundup | 11 August 2015

FBMKLCI   1636.71     -17.66pts (-1.07%)      Volume 1.987b   Value RM 2.071b
 
1) The KLCI continued its fall for a fourth consecutive day despite the stronger US mkt overnight as the continuous outflow of foreign funds amid the weaker Ringgit impacted the CI. Regional was marginally lower led by STI -1.30% after the country narrowed its growth forecast for 2015 amid weaker econs data, NIKKEI -0.42%, HSI -0.09%, SHCOMP 0.01%, ASX -0.65%. FINANCE index lost the most grounds today dragged by heavyweights MAYBANK -3.18%, PBBANK -0.84%, AMBANK -3.30%, CIMB -1.17%. Market breadth was largely negative today as losers outpaced gainers by 529 : 290. Market futures closed at  1627.5 (9pts discount).
 
2) Heavyweights : MAYBANK-3.18% RM8.52, SIME -2.85% MR8.16, PBBANK -0.84% RM18.72, AMBANK -3.30% RM5.26, CIMB -1.17% RM5.05, GENTING -1.52% RM7.76, GENM -1.97% RM3.97, SKPETRO -2.66% RM2.19.
 
3) DBT:  RSAWIT 52mil @ RM0.50 (3.66% PUC), GESHEN 29.504mil @ RM0.81 (36.88% PUC @ 5.3% discount), UNISEM 17.647mil @ RM1.70 (2.42% PUC).
 
4) Situational:-
MPHBCAP -2.41% RM1.62 - The joint venture to redevelop the Gombak site of the once-popular but now-long-closed Mimaland recreational park has been terminated. MPHB Capital Bhd (MPHB Cap) told Bursa Malaysia that its 98.2% owned subsidiary Mimaland Bhd, which owns the 324.0 acre land (comprising seven parcels), and Bandar Raya Developments Bhd's (BRDB) unit Magna Senandung Sdn Bhd entered into a deed of termination on August 10.
 
GESHEN -9.52% RM0.855 -  Ge-Shen Corporation Bhd has received a takeover offer from Pelita Niagamas Sdn Bhd at 81 sen a share - which is sharply lower than the closing price of 92.5 sen at midday on Tuesday. Pelita Niagamas also offered 81 sen for the remaining redeemable convertible preference shares.
 
5) GOB :announce that Pertanian Taman Equine SB, a wholly-owned subsidiary, had on 11 August 2015 entered into a conditional Sale and Purchase Agreement with Kemaris Residences Sdn Bhd for the proposed disposal of a parcel of leasehold land situated in Mukim Petaling, Negeri Selangor measuring approximately 19.24 acres, for a cash consideration of RM43.3m. The Proposed Disposal is expected to be completed within 6 months. Proceeds will be used mainly for repayment of bank borrowings ( RM30m) & working Capital ( RM5.6m). The proposed disposal is expected to give rise to a net gain of cRM15.9m for the financial year ending 31 March 2017 ; Neutral on news. The disposal will improve cash-flow through realisation of a portion of the group's investment in development land into cash. It will also improve the gearing position as part of the proceeds generated will be utilised towards reducing bank borrowings & provide a good source of working capital for it's property development activities. Group is still seen as an attractive alternative Penang mainland play, given its sizeable landbank in Batu Kawan neighbouring the proposed golf course and theme park land, as well as its pipeline residential projects planned. The land is just five minutes away from the end of the Penang Second Bridge.
 
6) Market : The negative trending momentum indicators suggest that the selling pressure could lead to further weakness. Next support for the index seen at 1625 points.  Meanwhile, we look forward towards the upcoming Malaysia GDP report that will be released on Thursday for guidance on the market direction.