UEM Sells 3.4 Million Shares In Puncak Niaga

On the Edge Financial Daily. Utilico Emerging Markets sell 3.4m Puncak shares

• KUALA LUMPUR: Puncak Niaga Holdings Bhd, whose share price had rallied recently, saw a foreign fund, Utilico Emerging Markets Ltd disposing of 3.4 million shares on June 11 and 12.
  
  A filing with Bursa Malaysia showed the Bermuda-registered fund had sold two million shares on June 11 and 1.4 million shares the next day in the open market.
  
  The recent disposal of the 0.83% stake saw its shareholding reduced to 30.69 million shares or 7.5%.
  
  Puncak closed at RM3.18 on June 11 and at RM3.24 the next day.

Last line caught my attention.

Here is Utilico Emerging Markets or UEM website. http://www.uem.bm/

Anyway, I thought I take a peep at how Puncak Niaga had been trading.

Hmmm.... what irony. As can be seen from the above two charts, the two days where Utilico disposed their Puncak shares, the traded volume of Puncak Niaga suddenly spiked up!

Yeah, the Edge Financial Daily should have said that Puncak shares rallied strongly on both days Utilico dispose their shares instead of saying 'Puncak Niaga Holdings Bhd, whose share price had rallied recently, saw a foreign fund, Utilico Emerging Markets Ltd disposing of 3.4 million shares on June 11 and 12.'

See how it hit a high of 3.38 on the12th which is a 3 months high for Puncak Niaga.

Now this is where the timing of the events start to feel rather strange in my flawed opinion.

On the 11th 2009, on the Edge Financial Daily, AmResearch: RM4 offer for Puncak?

On the same day, CIMB too had a report suggesting that there will be a rm4 offer for Puncak.


And the Edge Financial Daily published another article on the 12th June 2009. Fresh offers for water assets takeover on the cards

But then.............................

Utilico Emerging Markets or UEM decides to dispose some 3.4 million shares on both these days.

Sell on news????

Strange isn't it?

Local Spices For the Morning!

Time to spice up our life with some local news.

Spice Girls - Spice up your life


First we have the Puncak Niaga's deal.

• PUNCAK Niaga Holdings Bhd yesterday announced to Bursa Malaysia that it has been appointed to operate and manage the Sungai Sireh water treatment plant operation for 27 years commencing April 1 last year. The operation and maintenance (O&M) agreement was entered with the Selangor state government on March 7 2008, just a day before the national election. Puncak Niaga in its filing also said that it has entered into a novation agreement with the state government and Syarikat Bekalan Air Selangor Sdn Bhd in relation to the assumption of all the state government's rights, benefits, liabilities and obligations under the Sungai Sireh O&M Agreement by Syabas.

How?

And how the morning chatter loves this miracle deal.

• Puncak Niaga (6807.KU) may rise to test MYR3.42 resistance (Monday's peak) vs Tuesday close at MYR2.98 (down 6.2%) on expectation of better earnings prospects, dealer says; follows water utility company saying unit Puncak Niaga (M) secured water concession from Selangor state government to operate, manage and maintain a water treatment plant. The concession, which started April 1, 2007, will expire April 30, 2034. "This 27-year contract basically guarantees Puncak Niaga's earnings in the long-term and increases earnings visibility," says dealer. Adds, announcement may also help alleviate recent fears change in Selangor state government may stall ongoing plans to improve infrastructure and delivery of treated water in Selangor state

And here are some local comments on the market again.

• TA Securities technical analyst Stephen Soo told StarBiz it would be very tough for the KL Composite Index (KLCI) to breach the 1,300-point level over the near term.
  
  “The market has experienced a 'dynamic change' with the possibility of reviews for projects previously awarded, as well as potential for open tenders for pending projects,” he said.
  
  The market would be testing the downside to rebuild its base with the support levels for the KLCI being 1,141 and 1,090 points, which were the significant March and August lows of last year, he said.
  
  Going forward, Soo advises investors to expect market volatility tied to further deterioration in the US economy and financial market.
  
  The US market had not bottomed out yet, which increased the risk of more downside volatility, he said.
  
  “Investors should remain defensive and still stick to oil and gas and commodities-based sectors, as we believe that these will continue to do well this year,” he said.
  
  The construction sector that faced the possibility of review of projects by the new state governments, together with the banking sector which would also be indirectly affected, could see stock re-ratings, he said.
  
  In the medium term, Soo estimates a support level for the KLCI at 1,050 points.
  
  Soo saw yesterday's market rebound as a “relief rebound” in reaction to Monday's sell-down rather than a possible up-trend.
  
  Another chartist at a local bank-backed research outfit concurred, saying the KLCI was experiencing a technical rebound yesterday, but saw the market heading for a long downtrend.
  
  “Though the fall in the market has been drastic following the (unexpected) election result, the index is still trading below the 200-day moving average and the indicators don't point to a quick rebound.”
  
  The analyst feels that external factors will affect Asian markets that are far from being decoupled from the US market.
  
  “With oil prices above US$107 a barrel, and wheat and bread prices rising, the US consumer is facing rising costs together with a weakening economy,” he said, adding that investors were awaiting the outcome of the US Federal Reserve's Federal Open Market Committee meeting on March 18.
  
  The lowering of US' interest rates had not provided much support for its financial markets, he said.
  
  “Since mid-September last year, the market continued to fall after each rate cut,” he said. This meant the problems in the US could be worse than previously thought.
  
  Further uncertainty could be expected when the US holds its presidential elections later this year.
  
  “If the US is experiencing a financial tsunami now, the US market will also see an election tsunami later this year as investors hold back to see if they should continue investing in defence-related stocks or switch to other sectors,” he said

Puncak Niaga

Here is an interesting news comments link.

Puncak plans cash reward for shareholders

A Puncak Niaga's director has confirmed that such a plan was discussed at a board meeting yesterday, but he declined to reveal further information

Here are some issues.

A director of the company, who spoke strictly on condition of anonymity, confirmed that such a plan was discussed at a board meeting yesterday, but he declined to reveal further information.

Hmmm... correct me if wrong but isn't this director LEAKING out insider news?

Hey, is this even allowed???

Puncak Niaga is also awaiting a bumper cash payment from the Government via a 15 per cent automatic payment which was supposed to kick off in January this year.

Under the agreement, if Puncak Niaga did not receive the increment on time, the payment would be backdated when the Government increases the water tariff and Puncak Niaga will also receive some form of cash compensation from the Government for being patient.

The big bumper cash Puncak that Puncak is waiting for...

But....

There was an article on The Edge yesterday evening.

Puncak mulls RM1.25 per share capital repayment
By Thomas Soon, 12 Oct 2006 8:51 PM

Puncak Niaga Holdings Bhd shareholders are expected to be rewarded with a bumper cash payout of RM1.25 per share on the prospects of its assets and debts being taken over by Finance Ministry-owned Pengurusan Aset Air Bhd (PAAB). MORE

This part of the article..

Energy, Water and Communications Minister Datuk Seri Dr Lim Keng Yaik said on Oct 10 that the government would soon start to take over the assets and debts of water service operators via PAAB.
He said the pilot project would see PAAB taking over the water assets in Melaka and Negeri Sembilan by year-end via agreements with the state governments. PAAB is now talking to other state governments and "other operators like Ranhill Utilities Bhd and Syabas (have indicated interest as well)." Puncak Niaga holds a 70% stake in Syabas.
Although the new water management arrangement will turn concessionaires into mere water services operators, an analyst said Puncak Niaga would, however, still be a main water player in the country.

The govt to take over Puncak's debts and Assets????

Errr... is this even possible???