FBM30 1560.57, +3.42 points (+0.22%), Volume 1,864.2mil, Value 1,610.9mil
1) Encouraged by China's move to stimulate growth by 50 basis-point cut to banks' reserve requirement ratio, regional markets opened firmer but succumbed to mild profit taking in afternoon as investors adopted a cautious stance ahead of earnings reporting season. KLCI still closed near days' high on last minute closing action on YTL, BAT +2.7% whilst selected situationals outperformed: CyPark +10%, EPMB +4%, GOCEAN+11.1% albeit on lower vol. Mkt breadth was negative with losers outpacing gainers 469:349. Futures closed 1563 (3 points premium).
2) Heavyweights: MAYBANK+0.6% RM8.61, BAT+2.6% RM53.90, YTL+2.7% RM1.51, SIME +0.4% RM9.63, GENTING+0.6% RM10.70, MAXIS+1% RM5.81, PCHEM+0.6% RM6.92, CIMB+0.3% RM7.30, TENAGA-1.2% RM6.04, DIGI-0.7% RM3.99.
3) DBT: ENVAIR 3.7mil @ RM0.20, NICORP 2.2mil @ RM0.53
4) Situationals:
TGOFFS+11.6% RM1.01: Share price rose to its highest in 6 months after the Edge newspaper reported that company could be a merger & acquisition target, citing people it didn't identify. Managing Director Omar Khalid couldn't be reached for comment so far. Meanwhile, Ekuiti Nasional Bhd., the company's second-largest shareholder, said it hasn't been approached for the stake, according to the report.
5) Iris: announced that it's wholly owned subsidiary Iris Land SB (ILSB) has entered into a Teaming Agreement with Papua New Guinea's Kida Maru Holdings Ltd (KMH) for the development of a housing project in Section Granville, Port Moresby, Papua New Guinea. KMH owns a piece of land measuring approximately 14.75 ha and has a valid developer's license & has agreed to assist ILSB in the said project. ILSB shall undertake to develop 275 units of houses on plots of not less than 300 sqm. The total GDV of the project is estimated to be MYR160m, which is expected to be funded by way of project financing;
Comments: +ve, the proposed Teaming Agreement is to enable the Iris Group to expand & diversify it's business in the realty & housing development industry overseas. Project expected to contribute positively to the earnings of the group in the future.
6) Mkt - imminent resolution on Greek debt issue by tonight will remove a major overhang on global uncertainties. Overall sentiment remains +ve as we head into earnings reporting season these next 2 wks. Continued rotation amongst situationals to lead mkt higher. May see interest refocusing back into GLCs after recent consolidation, stk at buy lvls: TNB, MRCB, UEMLand, Pos, MAS.
