FBMKLCI 1635.98
-1.46pts (-0.09%)
Volume 802.6mil Value RM1,696mil
1) KLCI were marginally lower after regional markets were
routed on concern weak economic data could undermine global recovery after China
services industries expanded at the slowest pace since September. Sentiment
also turned cautious after China tightened mortgage rules to cool the property
market. Property+1.24% outperformed the index led by gains in UEMLAND+4.17% and
KLCCP+2.72%. Market breadth turned negative with decliners thumping advancers
412:254. Future closed 1630 (6points discount)
2) Heavyweights: MAYBANK-0.55% RM9.05, CIMB-0.55% RM7.20,
SIME-0.22% RM9.19, KLK -0.77% RM20.64, UEMLAND+4.17% RM2.50, AXIATA+0.31%
RM6.38, MAXIS+0.63% RM6.42, PETDAG+1.30% RM23.32
3) DBT: OCNCASH 4.1mil @ RM0.10, SCOPE 2mil @ RM0.30,
YINSON 1.815mil @ RM2.20
4) Situational:
CBSA+1.09% RM0.465: CBSA Bhd has received a RM120mil cash
offer from Majujaya 2013 Sdn Bhd to acquire shares of relevant companies of
CBSA group which are involved in the search and advertising business. Private
equity girm KV Asia Capital Pte Ltd manages the KV Asia Capital Master Fund Pte
Ltd which in turn is the ultimate shareholder of Majujaya.
5) GENTING BHD
Via its indirect wholly-owned subsidiary, Genting Assets,
Inc, entered into a purchase and sale agreement with Echelon Resorts, LLC and
Coast Hotels and Casinos, Inc acquire the Sellers' entire membership interests
in 3000 LVBLVD Holdings-I, LLC and 3000
LVBLVD Holdings-II, LLC for a total cash
consideration of US$350 million free from all encumbrances. The Sellers are
wholly owned subsidiaries of Boyd Gaming Corporation.
The acquisition involves approximately 87 acres of
freehold land in Las Vegas, Nevada, USA, together with a partially completed
central energy facility ("CEF") and all other improvements,
structures and fixtures located thereon to Genting Assets.
The Property is located at the North end of South Las
Vegas Boulevard, commonly referred to as the Las Vegas Strip, and consists of
the following:
(a) 6 parcels of contiguous freehold land measuring
approximately 87 acres.
The Land has approximately 1,523 feet of frontage on the
Las Vegas Strip and is zoned as H-1, which allows for the development of gaming
enterprises, compatible commercial and mixed commercial / residential uses. It
also lies entirely within the gaming enterprise district, which allows for
application for a non-restricted gaming license and permitted gaming throughout
the sitethe total capitalised costs relating to the Property as at 30 September
2012 of approximately US$1.09 billion, based on Boyd Gaming's announced
unaudited quarterly results for the period ended 30 September 2012; and
(b) the independent valuation of the Property as at 16
January 2013 as appraised by HVS Consulting and Valuation Services of US$703
million - the valuation derived via Investment value of the Land US$349m;
Investment value of the Improvements US$250m; Investment value of the CEF
US$100m and Investment value of the associated costs USD4m.
The property with considerable frontage along South Las
Vegas Boulevard will allow GENT full entitlement to apply for a non-restricted
gaming license. It is envisaged that
the Property will be developed into an integrated resort to be known as
"Resorts World Las Vegas" with 3,500 hotel rooms and 175,000 square
feet of total gaming space across several gaming floors, convention centres and
several luxury dining and retail amenities. GENT intends to undertake the development,
either singly or jointly with other parties.
+ve as the Genting Group invests further into another
area in the US market after facing set backs in NY and Florida. Interesting to
note that this investment was not via Gent M which has primarily been their main
developed market investment vehicle. Acquisition is said to be financed
internally, hence do not discount further sales of non core assets this year.
6) Market - Further uncertainties thrown into the
immediate horizon with the escalating trouble in Sabah, coupled with a pending
GE, will see main local investors remaining largely sidelined reflected by the
continued moderate daily trading volume.
