FBM30 1509.06, -14.01 points (-0.92%), Volume 1,436mil, Value 1,364mil
1) KLCI finally gave way and dropped along with weaker regional markets as investors turned risk averse, fearful that downgrade by S&P of France's AAA rating and eight other European countries could derail the recovery of European countries and pose funding and recapitalisation difficulties. Index only fell marginally at open (-2.68pts) but continued to drift lower to close at day's low. Rotational play saw healthy gains and heavy trading in COMPUGT+14%, UOADEV+12% and AMEDIA+24% while overall market breadth was negative with decliners trashing gainers 542:207. Futures closed 1510 (1 point premium).
2) Heavyweights: GENTING-2.94% RM10.56, CIMB-1.1% RM7.19, TENAGA-1.77% RM6.12, IOICORP-1.66% RM5.34, MAYBANK-0.85% RM8.19, SIME-0.77% RM9.08, DIGI-1.03% RM3.86, UMW-2.58% RM6.81
3) DBT: CBSA 4mil @ RM0.395, SYCAL 1.3mil @ RM0.20
4) Situationals:
DIGISTA+3.23% RM0.48: DIGISTA reached a high of RM0.50 after news reported that company looks set to clinch an RM500mil contract for the digitalisation of RTM. This job will form part of the government's RM2bil digital terrestrial television broadcasting (DTTD) project.
Press Metal Bhd.+1.08% a maker of aluminum products, touched a high of RM1.93, clsng at its highest since Nov. Co has invested RM3 billion in its second smelting plant in eastern Sarawak to increase total production capacity from September,Bernama reported, citing Executive Vice-President Koon Poh Ming.
5) Proton /DRB-Hicom: DRB Hicom announced that co had entered into a conditional share SPA with Khazanah to acquire 234.7m or 42.7% Proton shares,for a total cash consideration of RM1.29b, or RM5.50 per share. Upon completion of the proposed acquisition, DRB's shareholding will increase to 42.7%, and will thus be obliged to extend a MGO for all the remaining share in Proton for a cash consideration of RM5.50 per share;
Partly expected, ending months of speculation of identity of buyer on the stake sale. The proposed MGO will provide DRB an opportunity to further increase it's shareholding in Proton, thereby resulting in Proton becoming a subsidiary in the event the proposed MGO is successful. DRB is in a position to appreciate the automotive industry in the local & global context & will also strengthen Proton's operations in terms of localization & vendor department, manufacturing system and distribution network and presence in the regional market as an Asean car. The proposed acquisition is expected to create business synergies & opportunities for both parties to augment the localization & local vendor programme.
DRB and Proton will resume trading tomorrow.
6) Mkt-rotation of interest to continue amongst lower liners albeit on quieter trading ahead of long CNY break next wk. KLCI should see immediate support at 200day SMA of 1500pts.
