Market Roundup | 2 December 2015

FBMKLCI
1676.77pts   -5.60pts (-0.33%)    Volume
1.962b   Value RM1.852b

 

1) The KLCI traded in the red thruout most of the day closing -5.6pts lower despite the stronger US market overnight which gained ahead of the important non-farm payrolls this Friday. Region recovered in the later session buoyed by the Chinese market on rumours of mortgage tax breaks to spur the property markets, SHCOMP +2.33%, HSCEI +1.03%, HSI +0.44%, STI +0.46% -0.37%, ASX -0.15%. PLANTATION  -0.93% index continue underperform weighed by heavyweights IOICORP -2.08%, FGV -4.32%, KLK -0.61%, TSH -1.00% as commodity prices slipped. Market breadth was neutral with even gainers and losers at 423 : 426.  Futures closed at 1669.5 (7pts discount).   

 

2) Heavyweights : MAXIS -3.06% RM6.65, IOICORP -2.08% RM4.23, MAYBANK -0.47% RM8.41, SKPETRO -2.23% RM2.19, GENM -1.36% RM4.34, SIME -0.62% RM7.92, TENAGA +0.60% RM13.40, RHBCAP +3.80% RM6.00.

 

3) DBT : TMS 16.12mil @ RM0.0947 (2.96% PUC), BHS 10mil @ RM0.42 (2.38% PUC), SALCON 4.5mil @ RM0.635, ECON 2.7mil @ RM 1.09.

 

4) Situational:-

UEMS  +0.88% RM1.14/WCT RM1.50 - WCT has roped in UEM Sunrise as the JV partner for its landbank in Rawang. The JV company will be responsible to develop c.608.6 acres out of 698.0 acres of land that WCT has in Rawang. The first plot of land (461.7 acres, agricultural land) was initially purchased from Danaharta for c.RM2 psf or RM38.4m, while another 4 parcels (or combined of 220.7 acres) were acquired last year at an average cost of RM12psf or RM115.4m. In total, the said land’s book value is c.RM6psf. The purchase price of RM214.9m effectively values the land at c.RM16psf, and the disposal is said to generate an RM205.3m land sale gain for the Group. The deal is expected to complete in 2QCY2016.

 

5) SEE HUP

SH Global Freight Sdn Bhd, a subsidiary of the Company, had   entered into a Joint Venture Agreement (the “JV Agreement”) with Maruzen Showa Unyu Co. Ltd., to establish a joint venture company for purposes of logistics and forwarding business. Maruzen is a corporation principally engaged in the provision of logistics, Yard Operations and Machine Stevedoring. SH Global and Maruzen shall jointly establish a new company, known as Maruzen SH Logistics Sdn Bhd”  to operate and provide logistics, forwarding, warehousing and other related incidental business and services. The initial share capital of the JV Co shall be RM1,500,000 and in the participation ratio of SH Global 40% : Maruzen 60%.  The Proposed JV will provide the Group with the opportunity to partner with a global logistics player having decades of international business expertise, a vast network of business associates and bringing with it unparallelled goodwill. The Proposed JV is expected to provide the Group an edge over its competitors with value-added freight and forwarding services and hence will contribute positively to the Group’s earnings. +ve

 

6) Market – With no domestic news flow in the near term horizon, the KLCI is expected to remain range bound with a negative bias ahead of a possible US rate hike this month.