Maybank Invest Daily Update

Technicals

• The FBM KLCI rose marginally by 1.75 points to 1,501.56 yesterday. Its resistance area at 1,503 and 1,531 will cap market gains, whilst its weaker support areas are located at 1,486 and 1,500.

Other Local News
TdC: In RM339m deal to transform into regional player. Time dotcom Bhd (TdC) is undertaking a RM339m acquisition exercise of three companies in the telecommunication services and infrastructure industry. TdC would partly own Unity Cable system, a 9,620km Japan-to-US submarine cable through the acquisition of Global Transit Ltd Labuan (GTL). This will be complemented with acquisition of Global Transit Communications Sdn Bhd (GTC) that enables TdC to enter the international submarine cable business and tap into GTC's regional wholesale customer base. On the other hand, acquiring AIMS Group is targeted to penetrate the fast-growing hosting and co-location businesses. AIMS is one of the leading network neutral data centres in Southeast Asia hosting more than 188 telcos and service providers. (Source: The Edge Financial Daily)

CIMB: CIMB Niaga to raise RM527m. PT Bank CIMB Niaga expects to raise 1.5t rupiah (about RM527m) via a rights issue of 1.4b shares at 1,065 rupiah (37.4 sen) per share next month. (Source: The Star)

MAS: Expects KK hub to contribute up to RM100m profit. Malaysian Airline System Bhd (MAS) expects its operations from Kota Kinabalu, Sabah to contribute between RM60m to RM100m annually to group net profit. MAS intends to increase flight frequencies on existing routes and also introduce new routes from Kota Kinabalu. (Source: The Edge Financial Daily)

Media Prima, YTL Comms: Hybrid TV gets content boost. YTL Communications Sdn Bhd (YTL Comms) will host RTM and Media Prima group channels on its hybrid television slated for launch in November 2011. The hybrid TV would cost RM1b to RM2b to roll out. (Source: The Star)

Kencana: Unit gets RM275m Sarawak Shell contracts. Kencana Petroleum Bhd's whole owned subsidiary, Kencana HL Sdn Bhd (KHL), has secured contracts worth RM275m from Sarawak Shell Bhd (SSB) for the fabrication of compression modules and tie-in modifications. These one-off construction contracts are expected to be completed by the first quarter of 2012. (Source: The Edge Financial Daily)

IPO: China firm Sozo Global to list on Bursa. Another China based company, Sozo Global Ltd, is expected to make a debut on the Main Market of Bursa Malaysia. Agro Treasures which is an outsourced fund initiated by Khazanah Nasional Bhd is the company's anchor investor, holding 10.4% equity stake in the food maker from northeast China's Shandong province. Sozo entered into an underwriting agreement with AmInvestment Bank Bhd and JF Apex Securities Bhd in conjunction for its IPO offer. (Source: The Edge Financial Daily)