CIMB bags best Internet bank award

CIMB Bank does it again, and this time for its efforts to make online banking easier for its customers. CIMB Bank was awarded the inaugural Best Internet Bank Award in Malaysia at Global Finance’s the World’s Best Internet Bank Awards at its 9th annual Awards Dinner In New York.

Joseph D Giarraputo, Publisher, Global Finance magazine said, “CIMB Bank’s efforts in ensuring that its Internet banking platform offers customers the best possible service with the highest level of security is laudable.”

“The world is becoming increasingly connected and more and more people are looking for convenience online. CIMB Bank has proved that the online facilities it offers its customers provide them just that, with no compromise to security.

The bank’s win of Global Finance’s Best Internet Bank in Malaysia Award speaks volumes for its service levels and its customers’ trust in its capabilities,” he added.

Peter England, head of retail and financial services of CIMB Bank said, “It is an honour for us to receive this award. It is proof that all our efforts to provide a safe online platform for our customers to both transact and interact with the bank are recognised.”

“CIMB Clicks, our online banking platform, has gained great traction in its uptake and as such, it is important that it consistently exceeds customers’ expectations for online banking. This award will spur us on to take it to greater heights,” he continued.

233 individual banks from around the world entered submissions to be considered Best Internet Bank in various categories. The winners of the awards were selected based on the strength of their strategy for attracting and servicing online customers, success in getting clients to use web offerings, growth of online customer base, breadth of products offered, evidence of tangible benefits gained from Internet initiatives, and web site design and functionality.

Global Finance is a monthly magazine founded in 1987. Its mission is to help corporate leaders, bankers and investors chart the course of global business and finance. Global Finance magazine has a circulation of 50,050, is audited by the Business Publications Audit of Circulations, and has readers in 163 countries. It is headquartered in New York, with offices in London, Rio de Janeiro and Milan. Global Finance’s readers include Chairmen, Presidents, CEOs, CFOs, Treasurers and other senior financial officers responsible for making investment and strategic business decisions at multinational companies and financial institutions. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

White Horse Q3 pre-tax profit dips

White Horse Bhd's pre-tax profit for the third quarter ended September 30 2011, dropped to RM15.528 million from RM24.845 million recorded in the same period last year.

Revenue declined to RM131.118 million from RM139.337 million previously.

In a filing to Bursa Malaysia today, White Horse said the drop in pre-tax profit was mainly due to the higher production cost coupled with the reduced revenue for the current quarter.

For the nine-month period, the company's pre-tax profit slipped to RM50.701 million from RM63.477 million last year on revenues of RM389.215 million and RM394.076 million respectively.

The company anticipates more encouraging results for the next quarter in view of the additional production capacity rolled out in the second half of this year, coupled with the continuous market demand. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Masterskill 3Q net profit slumps 78.8% to RM5.55m on lower enrolment

KUALA LUMPUR (Nov 18): Masterskill Education Group Bhd (MEGB) net profit for the third quarter ended Sept 30, 2011 fell 78.8% to RM5.55 million from RM26.18 million a year earlier, due mainly to lower student enrolment and higher overheads.

MEGB said that its revenue for the quarter fell to RM61.19 million from RM80.68 million in 2010.

Earnings per share fell to 1.00 sen from 9.00 sen a year earlier, while net assets per share was RM1.31.

For the nine months ended Sept 30, MEGB’s net profit fell to RM39.72 million from RM75.29 million in 2010, on the back of a dip in revenue to RM200.67 million from RM234.83 million.

Reviewing its performance, MEGB said the lower student enrolment was due to the Ministry of Higher Education’s decision to align the academic term for local institutions of higher learning with that of universities abroad by moving the intake date to September from June/July.

It also said the changes toward the PTPTN loan scheme effective June 1, 2011 had impacted its revenue especially for the new student intake.

MEGB said another factor that had affected its student enrolment was the increase in the minimum entry requirement for the diploma in nursing programme from three credits to five credits at the SPM level.

The education group also said that its profits were impacted by higher operating overheads due to its growth and on-going expansion plans.

On its prospects, MEGB said it maintained profitability in 3Q with cash in hand of RM178.4 million despite a challenging market environment.

“As a result, we continue to believe that the group is well positioned for growth going forward,” it said.

MEGB said that moving forward, it would continue to pursue growth in the domestic and international markets, adding that it had received approval to conduct franchising.

“Overall, MEGB remains fundamentally strong and well-positioned to pursue growth opportunities and forge ahead with our long-term expansion plans.

“The directors are confident of achieving satisfactory results for the full financial year of 2011 given prevailing market conditions,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Affin Holdings 3Q earnings up 17.5% to RM135.2m

KUALA LUMPUR (Nov 18): AFFIN HOLDINGS BHD []’s earnings rose 17.5% to RM135.19 million in the third quarter ended Sept 30, 2011 from RM115.01 million a year ago, boosted by higher write-backs and higher Islamic banking income.

The banking group said on Friday that revenue increased 13.7% to RM680.12 million from RM597.82 million a year ago while earnings per share were 9.05 sen compared with 7.70 sen. It declared an interim dividend of 12 sen a share.

Its chairman Gen (R) Tan Sri Mohd Zahidi Zainuddin said: “We have certainly delivered a strong 3rd quarter results exceeding our expectations and we are on track to register another good year with positive growth. This is testament to the group’s strength and diversity of our business model in the financial services sector.”

At the pre-tax level, Affin recorded a 44.9% increase at RM216.23 million when compared with the second quarter’s RM177.90 million ended June 30.

“The improved performance was mainly due to higher write-back of allowance for loan impairment of RM49.20 million, higher Islamic banking income of RM2.8 million, lower overhead expenses of RM3.4 million.

“The net interest income and other operating income however, decreased by RM11.90 million and RM9.80 million respectively for the period under review,” it said.

For the nine-month period ended Sept 30, its revenue rose 18% to RM1.95 billion from RM1.65 billion while net interest income was 2.4% higher at RM646 million from RM630.90 million.

Profit before tax increased by 11.2% to RM534.50 million from RM480.80 million while net profit was 3.7% higher at RM375.50 million compared with RM362.10 million.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Willowglen unit secures RM3.17m job

Willowglen MSC Bhd's wholly-owned subsidiary, Willowglen Services Pte Ltd, has been awarded a RM3.17 million contract for the supply, delivery and installation of security hardening for gas offtake and launcher/receiver stations.

The project will be completed by June 2012 and is expected to contribute to the group's earnings for the financial year ending December 31, 2011 and 2012, Willowglen MSC announced in a filing with Bursa Malaysia. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Media Prima 3Q net profit dips 25.7% to RM53.37m

KUALA LUMPUR (Nov 18): MEDIA PRIMA BHD [] net profit for the third quarter ended Sept 30, 2011 fell 25.74% to RM53.37 million from RM71.87 million a year earlier, due mainly to non-recurring negative goodwill of RM35.77 million in 2010 arising from the acquisition of the equity interest in NSTP.

The company said that its revenue for the quarter rose marginally to RM417.47 million from RM416.75 million in 2010.

Earnings per share fell to 5.08 sen from 7.29 sen, while net assets per share was RM1.285.

The company declared a second interim single-tier dividend of three sen per share for the financial year ended Dec 31, 2011 and a special single-tier dividend of five sen per share.

For the nine months ended Sept 30, Media Prima’s net profit fell to RM132.6 million from RM154.09 million, on the back of revenue RM1.19 billion.

Media Prima said excluding the non-recurring negative goodwill in 2010 arising from the acquisition of the equity interest in NSTP, the group’s profit after tax and non-controlling interests from continuing operations grew by 31.6% to RM132.7 million compared to RM100.8 million in the same period last year.

Profit after tax and non-controlling Interests decreased by 14% for the period ended Sept 30, 2011 compared to the same period last year if the non-recurring RM53.3 million negative goodwill was included, it said.

Reviewing its performance, Media Prima said it registered minimal growth in revenue compared to second quarter of 2011 which included non-recurring revenues from Sarawak State Election operations.

The global economic slowdown which impacted market's confidence since August 2011 had resulted in the slowing down of advertisement spending, it said.

The Group’s results and revenue activities were significantly driven by its core platforms of television network, print media, outdoor media and radio network.

On its prospects, Media Prima said it was committed to maintaining its industry leadership position and its earnings through continued investment in quality and relevant content and branding for its targeted market.

Concurrently, the group will continue to exercise prudent financial and risk management and is optimising its cost management for better leverage on its operating efficiency, it said.

The group, however, said it was cognisant of the challenges faced by the industry at large and by its respective platforms and said it had strategies for each of its division.

“Barring any unforeseen circumstances, the board remains optimistic that the group is on track to achieve its 2011 target,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Market Commentary

The FBM KLCI index lost 11.07 points or 0.76% on Friday. The Finance Index fell 0.65% to 12988.79 points, the Properties Index dropped 0.71% to 964.58 points and the Plantation Index down 0.18% to 7614.64 points. The market traded within a range of 14.04 points between an intra-day high of 1468.44 and a low of 1454.40 during the session.

Actively traded stocks include FRONTKN, COMPUGT, DPS, FRONTKN-WA, DPS-WA, EXTOL, SYF, KBUNAI, TIGER and SAAG. Trading volume decreased to 1462.42 mil shares worth RM1196.93 mil as compared to Thursday’s 1585.71 mil shares worth RM1175.42 mil.

Leading Movers were GENM (+5 sen to RM3.87), DIGI (+14 sen to RM34.96), BAT (+40 sen to RM46.70) and KLK (+2 sen to RM21.08). Lagging Movers were PBBANK (-14 sen to RM12.54), TENAGA (-12 sen to RM5.53), MISC (-24 sen to RM6.45), GAM (-15 sen to RM3.11) and MAYBANK (-5 sen to RM8.25). Market breadth was negative with 197 gainers as compared to 588 losers.-- JF Apex Securities Bhd



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

IOI Corp Q1 earnings fall 48%

IOI Corp, Malaysia’s second-biggest palm oil planter by market value, said first-quarter profit dropped 48 per cent on foreign exchange charges and lower earnings from property and manufacturing.

Net income declined to RM258.1 million (US$82 million), or 4 sen a share, in the three months ended September 30, from RM498.13 million, or 7.8 sen, a year earlier, the company said in a statement today. Sales increased 18 per cent to RM4.1 billion on high contributions from the group’s core palm oil business.

“Global economic growth has recently shown signs of slowing down, which will make the current financial year a challenging period for corporations,” IOI said in the statement.

“Nevertheless, the group is optimistic that it will perform satisfactorily.”

IOI fetched an average RM3,149 a metric tonne for its crude palm oil in the quarter, compared with RM2,598 a year ago, it said. Palm futures have since dropped after hitting a 35-month high of RM3,967 a tonne on February 10 amid concern over expected higher output from top producers Indonesia and Malaysia and on global economic woes.

Palm oil may climb to RM4,000 by the end of the first half, the highest level since 2008, amid sustained demand and as production slows, Dorab Mistry, director of Godrej International Ltd said on November 13. Mistry cut his estimate for this year’s palm oil production in Malaysia to 18.8 million tonnes from 19 million tonnes and for Indonesia to 25.2 million tonnes from 25.5 million tonnes.

The group booked a RM271.7 million charge on an unrealised loss for the quarter on foreign currency-denominated borrowings, the Putrajaya-based company said.

IOI’s resource-based manufacturing segment reported a 29 per cent decrease in operating profit to RM33.2 million on lower sales of oleochemicals and reduced margins, the statement said.

Property earnings fell 31 per cent to RM168.2 million, it said. The group generates around 6.6 per cent of its revenue from real estate, according to data compiled by Bloomberg. -- Bloomberg



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

FBM KLCI ends at 1,454.4 low

Share prices on Bursa Malaysia remained in the red at the end of trading day today with the FTSE Bursa Malaysia KLCI (FBM KLCI) closed at a low of 1,454.4 as investors remained cautious on the possibility of slower growth for the local economy, dealers said.

At 5pm, the FBM KLCI ended at 1,454.4, down 11.07 points or 0.755 per cent against yesterday's 1,465.47.

MISC Bhd emerged as the second top loser, recording significant losses accounting for a 2.035-point drop in the benchmark index.

The FBM KLCI, which opened 3.13 points lower, touched an intra-day high of 1,468.44.

The Finance Index lost 85.09 points to 12,988.79, the Plantation Index slipped 13.48 points to 7,614.64 and the Industrial Index declined 25.51 points to 2,673.18.

The FBM Emas Index dropped 75.47 points to 9,985.55, the FBM70 Index fell 78.43 points to 10,928.32, the FBM Top 100 Index declined 73.54 points to 9,785.31 and the FBM ACE Index was 70.53 points lower at 4,195.92.

Decliners led advancers 588 to 197 while 258 counters were unchanged, 444 untraded and 32 others suspended. Total volume declined to 1.462 billion shares, worth RM1.197 billion, from yesterday's 1.586 billion shares valued at RM1.175 billion.

Volume on the Main Market eased to 1.046 billion shares, valued at RM1.141 billion, against 1.22 billion shares worth RM1.12 billion registered yesterday.

Turnover on the ACE Market, however, improved to 350.682 million shares worth RM50.021 million compared to 285.29 million units, valued at RM44.74 million, yesterday.

Warrants slipped to 63.245 million shares, valued at RM5.382 million, from 80.501 million shares, worth RM7.91 million, recorded previously.

Top losers PPB Group lost 28 sen to RM16.50, MISC dropped 24 sen to RM6.45 and Hong Leong Financial was 22 sen lower at RM11.34.

Among actives, Frontken eased 1 sen to 13 sen but Compugates was unchanged at 8 sen while DPS Resources shed 1.5 sen to 22.5 sen.

As for heavyweights, Maybank fell 5 sen to RM8.25, Petronas Chemicals dropped 8 sen to RM6.17 while Sime Darby and CIMB were both unchanged at RM8.90 and RM6.87, respectively.

Consumer products accounted for 186.47 million shares traded on the Main Market, industrial products 162.838 million, construction 23.118 million, trade and services 381.796 million, technology 27.601 million, infrastructure 10.447 million, finance 68.321 million, hotels 314,900, properties 124.586 million, plantation 32.564 million, mining 22,000, REITs 1.579 million and closed/fund 37,400. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

IOI Corp 1Q net profit falls 48% to RM258m, hit by forex loss

KUALA LUMPUR (Nov 18): IOI CORPORATION BHD [] net profit for the first quarter ended Sept 30, 2011 (1QFY12) fell 48.2% to RM258.09 million from RM498.13 million a year ago, due mainly to unrealised translation loss on foreign currency denominated borrowings of RM271.7million.

The company said on Friday, its revenue for the quarter rose 17.9% to RM4.15 billion from RM3.52 billion a year ago. Earnings per share for the quarter fell to 4.02 sen from 7.81 sen while net assets per share was RM1.81.

Reviewing its performance, IOI Corp said segment results of the group however recorded an increase of 22%, with higher PLANTATION [] contribution moderated by lower contributions from both resource-based manufacturing and property segments.

IOI Corp said the plantation segment profit increased by 56% to RM557.1 million from RM356.4 million a year ago, due to higher crude palm oil (CPO) and palm kernel (PK) prices as well as higher fresh fruit bunch (FFB) production.

It said average CPO price realised for 1QFY12 was RM3,149 per tonne as compared to RM2,598 per tonne a year ago whilst FFB production for 1QFY12 was 973,293 tonnes, up about 11% from 879,322 tonnes a year ago.

However, it said the resource-based manufacturing profit decreased 40.6% to RM33.2 million in 1QFY12 from RM46.7 million a year ago.

The lower profit for the segment is due mainly to lower sales from oleochemicals sub segment as well as lower margins from specialty fats and refineries sub segments.

As for the property division, its profit dell 31% to RM116.6 million from RM168.2 million on lower development revenue during the quarter.

On its prospects, IOI Corp said the global economic growth had recently shown signs of slowing down which would make the current financial year a challenging period for business corporations.

“Nevertheless, the group is optimistic that it will perform satisfactorily in the current financial year underpinned by strong plantation segment,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KLCI ends lower for 4th day, below 1,460-level

KUALA LUMPUR (Nov 18): The FBM KLCI fell below the 1,460-point level on Friday, Nov 18 in line with the weaker sentiment at global markets, as contagion fears from the eurozone debt crisis kept investors on the sidelines.

Regional markets remained mired in the red as European shares fell in early trade on Friday, extending a decline from the previous session, on mounting worries that borrowing costs in several euro zone countries are at unsustainable levels, according to Reuters.

The FBM KLCI fell 11.07 points to 1,454.40, weighed by losses including at PPB, MISC and Public Bank.

Losers beat gainers by 588 to 197, while 258 counters traded unchanged. Volume was 1.46 billion shares valued at RM1.19 billion.

At the regional markets, Japan’s Nikkei 225 fell 1.23% to 8,374.91, the Shanghai Composite Index lost 1.89% to 2,416.56, Hong Kong’s Hang Seng Index was down 1.73% to 18,491.23, Taiwan’s Taiex lost 2.08% to 7,233.78, South Korea’s Kospi fell 2% to 1,839.17 and Singapore’s Straits Times shed 1.72% to 2,730.34.

On Bursa Malaysia, PPB was the too loser and fell 28 sen to RM16.52; MISC lost 24 sen to RM6.54, HLFG 22 sen to RM11.34, UMW 17 sen to RM6.43, Aeon Credit, Gamuda, AirAsia, Lafarge Malayan Cement and MMHE fell 15 sen each to RM5.50, RM3.11, RM3.65, RM6.60 and RM5.85 respectively, while Public Bank fell 14 sen to RM12.54.

Frontken was the most actively traded counter with 56.63 million shares traded. The stock fell one sen to 13 sen.

Other actives included Compugates, DPS Resources, Extol, SYF Resources, Karambunai, Tiger and SAAG.

Among the gainers, Nestle added 50 sen to RM50, BAT up 40 sen to RM46.70, Harvest Court 32 sen to RM1.36, Fima Corp 30 sen to RM6.10, Tradewinds 19 sen to RM9.22, BLD PLANTATION []s 16 sen to RM6.96 while Boxpak and DiGi added 14 sen each to RM1.34 and RM34.96.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Sime’s E&O premium to rise?

Sime Darby Bhd’s already expensive acquisition of Eastern & Oriental Bhd’s (E&O) shares could look even more pricey after the surprise announcement last night that the latter will be converting an estimated 220.11 million loan stocks into ordinary shares before year-end.

E&O announced on Bursa Malaysia yesterday that it will be converting all its remaining 10-year 8% irredeemable convertible loan stocks (ICSLS) issued in 2009 to new ordinary stock units of RM1 each on Dec 27. The number of oustanding ICSLS was not indicated, but totalled 220.11 million as at June 30, 2011.

When the 220.11 million shares enter the market at the end of the year, the resulting dilution in book value per share coupled with a potentially large share overhang could well make Sime Darby’s RM766 million stake in E&O come at a greater premium as the price-to-book value of its acquisition rises and the share price falls.

To recap, Sime Darby had bought 273 million ordinary shares and 60 million ICSLS from three vendors — E&O managing director Datuk Terry Tham, Tan Sri Wan Azmi Hamzah and GK Goh Holdings of Singapore at a 60% premium to the market price, or RM2.30 per share.

Issued in 2009 as part of a fundraising exercise, the ICSLS are due only in 2019. However, E&O said that based on conditions stipulated in the Trust Deed dated Sept 11, 2009, the company is exercising its rights of mandatory conversion, and the early conversion shall be on Dec 27 at 5pm.

E&O may convert the ICSLS at any time after the second anniversary of the issuance with the sole condition being that its three-month volume weighted average price (VWAP) exceeds RM1 preceding the exercise.

The three-month VWAP as at Nov 17 was RM1.52, skewed upwards by the jump in price following Sime Darby’s acquisition.

The ICSLS have a conversion price of RM1 per E&O share. As they were issued at 65 sen, the remaining 35 sen will be debited from the company’s share premium account.

Based on E&O’s June 30 balance sheet, there were 908.90 million E&O ordinary shares issued. The conversion of the ICSLS will increase that figure by 24.2% to 1.129 billion shares, according to estimates by The Edge Financial Daily.

However, given that Sime Darby also holds 60 million ICSLS, the conversion will not materially dilute Sime Darby’s 30.04% stake in E&O, which will fall slightly to 29.49%.

Sime Darby should not be adversely affected as it had the foresight to acquire the 60 million ICSLS to ensure it would continue holding close to 30% of E&O. Otherwise, its stake would have been diluted to 24.18%, according to The Edge Financial Daily’s estimates.

An analyst estimated, based on “back of the envelope calculations” that resulting from the conversion, E&O’s book value per share will fall to RM1.06 from RM1.24 at the time of Sime Darby’s acquisition.

This is because, while the number of ordinary shares has increased by 24%, total equity will increase by only 4% to roughly RM1.2 billion due to RM71.61 million of the ICSLS located in non-current liabilities being transferred to shareholders funds, he said.

Another RM60.66 million in ICSLS is already parked under shareholders’ funds. The conversion of this tranche would not increase total shareholders’ funds.

On the other hand, earnings per share will remain mostly unaffected, only dipping to 4.77 sen from 4.8 sen for the quarter ended June 30, due to the high 8% coupon rate attached to the ICSLS.

Tham held about 65 million ICSLS as at July 29, but that figure should be much lower as he and the other vendors sold their ICSLS to Sime Darby.

When the ICSLS are converted at year-end, there will be over 160 million shares flooding the market excluding Sime Darby’s 60 million ICSLS. The resulting overhang could further depress E&O’s share price and exacerbate Sime Darby’s paper losses.

Furthermore, the flood of liquidity coupled with depressed market price could provoke another entity to acquire a significant stake in E&O.

The second largest shareholder with a 6.3% stake, ECM Libra had attempted, but failed, to nominate two directors to the board of E&O on Sept 30.

E&O ended down one sen to RM1.41 yesterday with 1.06 million shares traded. Year to date, the stock has risen by 6.82% from RM1.21.


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

A step towards balancing ownership and control

The Securities Commission (SC) might incur the ire of at least some shareholders of Supermax Corp Bhd loyal to executive chairman and group managing director Datuk Seri Stanley Thai, if it rules that all companies have to have an independent non-executive chairman. At its recent annual general meeting, one Supermax shareholder stood up and defended Thai after a representative from an institutional fund asked that Thai relinquish the role of chairman as he is playing the CEO role.

He isn’t alone. Investors who choose to put their money with Genting Bhd, for instance, are only too aware of the company’s slant on related party transactions. But be it Genting’s executive chairman Tan Sri Lim Kok Thay or Singapore-listed United Overseas Bank Ltd’s main shareholder-chairman Wee Cho Yaw and his son, Wee Ee Cheong, who is deputy chairman and CEO, investors are essentially still invested because their money is arguably as much on the personality driving the group as on underlying fundamentals.

To be sure, however big a fan one may be of a leader, every shareholder wants proper checks and risk management measures to be in place. As such, they stand to benefit from the SC’s move for higher standards of disclosure and corporate governance.

On Tuesday, the SC published a consultation paper seeking public feedback on independent chairman and shareholder poll voting.

But if the SC’s goal is to ensure boards can be independent of management to strike that right balance between ownership and control, what is needed is perhaps not so much an arbitrary separation of the chairman and CEO role or even mandating the SC’s ideal independent chairman.

If anything, the SC may have a better chance of getting that board independence by mandating that independent directors fill more than half the board seats. For the easy reference of investors, the SC could even publish a list of companies that fall short of its standards.

That said, minority shareholders really only need one competent and diligent board member to blow the whistle, whether or not he or she is outnumbered in a boardroom.

In the same vein, mandating poll voting might not be the answer to eliminate the tendency of some companies to quickly dispose of resolutions at shareholders’ meetings by ensuring they have enough bodies raising their hands.

Instead, the SC may want to consider making it compulsory for companies to disclose the number of shareholders who turn up at meetings and the shareholding they represent. Companies should also be compelled to disclose if there were any opposition to a particular resolution, regardless of whether the resolution is passed.

Wouldn’t a red flag be raised if the attendance data show, say, resolutions were passed by a show of hands by five out of 10 people present at the meeting?

Data showing how long an AGM or EGM lasted should also indicate whether directors allowed ample time for question and answers.

All that should not be hard to implement as these data are taken down by company secretaries anyway, and need to be signed off by professional auditors. Just provide companies with a template to fill to make things easier.

After all, the migration to a self-disclosure regime is to speed up processes while encouraging companies to make better disclosures, not free them to say less.

Whatever the outcome of the SC’s request for public feedback on independent chairman and voting by poll, shareholders would do well to remember they too should play their part in ensuring their best interests are protected.


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Penny stocks remain on investors’ radar

KUALA LUMPUR: The average price of a stock traded on the local bourse has fallen by 30% in the past month as retail investors have veered towards penny stocks over blue chips, driven by the prospect of a quick gain.

“Some of these investors are not there for the long term and they don’t look at the dividends or returns these stocks are distributing, which may be measly. They’re in for the buy and sell,” said a market observer.

Data from Bursa Malaysia indicated that the average price of a share traded on the market has fallen to 83 sen in the first week of November from RM1.17 in the previous month and RM1.70 in the middle of the year.

Penny stocks that have been in the spotlight are DPS Resources Bhd, Tricubes Bhd and Harvest Court Industries Bhd, whose prices have shown some volatility in a limited period of time.

Securities Commission (SC) chairman Tan Sri Zarinah Anwar last week cautioned investors against penny stocks whose prices have soared despite the lack of any substantial developments.

“I would like to remind investors that they have to exercise caution and make informed investment decisions. Everybody has a role to play in terms of ensuring fair and orderly trading in the market,” she said.




Bursa Malaysia had suspended trading in the shares and warrants of Harvest Court, which were declared as designated securities.

“The decision to designate the securities of Harvest Court and its warrants is due to excessive speculation observed in their trading and has been taken in the interest of ensuring a fair and orderly market,” said the local bourse.

One market observer indicated that the trend of investors preferring penny stocks may stabilise over the long term as attention returns to the fundamentals of each stock.

“For many investors, the earnings generated by a company and the dividend rate for its shareholders remain important. Moreover, some of these penny stocks may be illiquid despite their small unit size and their market capitalisation may limit certain growth opportunities,” he said.

DPS closed two sen or 7.7% lower at 24 sen with 44.26 million shares yesterday, after reaching more than a three-year closing high of 31 sen on Monday.

The stock reached an intraday high of 40.5 sen on Tuesday. Investors who bought at that level would have lost 40%.

Harvest Court hit limit down for the second consecutive day after trading resumed following its designated status.

The stock lost 45 sen or 30.2% to close at RM1.04 on a volume of 3.37 million shares.

While the stock is still up substantially from under 10 sen about a month ago, it has also halved from its recent peak of RM2.14 on Nov 14.

Tricubes closed 2.5 sen or 9.6% lower at 23.5 sen with 18.09 million shares traded. The stock surged 9.5 sen or 57.8% from 16.5 sen to 26 sen on Wednesday after announcing that it had secured a contract from Polis DiRaja Malaysia to handle the payment of and enquiries about traffic summonses.


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

MHB posts flat earnings growth

KUALA LUMPUR: Oil and gas player Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) saw its net profit for the quarter ended Sept 30, 2011 rise 3.2% to RM80.2 million from RM77.7 million a year ago, on the back of a better performance from its engineering and construction segment.

However, the company said its marine repair and conversion segment registered a lower profit year-on-year.

For the quarter in review, revenue dipped 54.7% to RM463 million from RM1.02 billion. Earnings per share fell 80 sen to RM5. Net assets per share fell to RM1.49 from RM1.59.

MHB said its engineering and construction segment is expected to perform favourably through the successful execution of current and recently secured projects.

“Based on recent oil and gas discoveries in local offshore as well as increased activities to improve oil and gas production, capital expenditure in the upstream oil and gas sector is expected to remain relatively strong,” said the company.

For the six months ended Sept 30, net profit fell 15.3% to RM159.2 million from RM187.9 million a year ago, while revenue fell 35.2% to RM1.42 billion from RM2.19 billion.

During the period, the engineering and construction segment contributed operating profit of RM123.8 million on revenue of RM1.25 billion. The marine conversion and repair division contributed RM215.5 million in revenue and RM12.1 million in operating profit.

Earlier in March, the company changed its financial year-end from March 31 to Dec 31 resulting in a shorter nine-month fiscal year this year from April 1 to Dec 31.


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Kossan 3Q profit down, but optimistic of prospects

KUALA LUMPUR: Hit by higher material costs, glovemaker Kossan Rubber Industries Bhd’s net profit for the first nine months of the year fell 24% to RM67.5 million, despite a 2% revenue growth to RM810.6 million.

For 3QFY11 ended Sept 30, net profit fell 17.1% to RM23.6 million, although revenue rose to RM278.5 million from RM275.6 million. Natural latex prices rose 23.4% to RM8.63 per kg in 3QFY11 from RM6.99 last year, while the price of nitrile or synthetic latex rose 41.6% to RM6.43 from RM4.54 per kg.

Earnings per share fell from 8.93 sen to 7.39 sen for the quarter, and from 27.82 sen to 21.12 sen year-to-date.

The company is optimistic about its prospects. “With the recent drop in rubber prices coupled with higher demand for technical rubber products and gloves, management is positive of the performance in the coming quarters,” Kossan said.

The glovemaker said it plans to grow annual production capacity by 42% to 17 billion pieces over the next two years.

CEO and managing director Datuk Lim Kuang Sia said it is essential for the company to diversify through mergers and acquisitions and that it may consider taking up companies involved in non-rubber products.

As at Sept 30, Kossan had RM65.6 million cash and RM19.2 million in bank borrowings. Short-term borrowings stood at about RM135 million.


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KYM proposes private placement for working capital

PETALING JAYA: Property developer and construction company KYM Holdings Bhd yesterday announced a proposed private placement of up to five million new ordinary shares of 50 sen each, representing 4.6% of the group’s issued and paid-up capital.

The private placement exercise will be implemented in tranches, with the first comprising 1.3 million KYM shares, while the balance shall be issued subsequently based on prevailing market conditions.

The issue price of the first tranche is fixed at RM1.53 per placement share which represents a discount of 10% to the five-day weighted average market price of KYM traded on Bursa Malaysia Securities Bhd between Nov 10 and Nov 16 (both dates inclusive) or RM1.70 per share.

The issue price of subsequent tranches will be determined at a later stage and shall not be priced at more than 10% discount to the five-day weighted average market price of KYM shares immediately prior to the price fixing date to be determined, according to the statement.

The group plans to utilise the proceeds from the placement to fund its working capital requirements which include operating expenses such as staff salaries, development expenditure, promotional and marketing expenditure, and other expenses to improve the group’s operations.

Assuming that all placement shares are issued at RM1.53 each, KYM is expected to raise gross proceeds of approximately RM7.65 million upon successful completion of the exercise. Of the total gross proceeds, RM7.55 million will be utilised for the group’s working capital requirements.

The group said the rationale of the proposed private placement is to raise funds for working capital requirements, improve its cash flow position and provide continued support to its businesses.

It added that via the exercise, the group will be able to raise additional working capital without incurring interest costs compared with taking up additional bank borrowings.

It is also the most expeditious and cost-effective method of raising funds as opposed to the pro-rata issuance of securities such as rights issue which may financially burden the shareholders of the company.

Shareholdings of the group’s major shareholders will be diluted due to the enlarged issued and paid-up capital to approximately 114.8 million units from 109.8 million units prior to the exercise.

For example, holdings of substantial shareholder Cheong Chan Holdings Sdn Bhd will be diluted to 19.4% from 20.3%, according to the announcement.

Subsequently, the group’s net assets per share will also be diluted from 93 sen per share as at Jan 31 to 57 sen after the completion of the proposed private placement and other corporate exercises.

Total borrowings will rise to RM38.6 million from RM24.6 million as at Jan 31. Hence, its gearing ratio will also increase to 0.59 times against 0.25 times.


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

YTL 1Q profit down on mobile broadband losses

PETALING JAYA: A RM94.9 million loss from YES mobile broadband business caused YTL Corp Bhd’s earnings for 1Q ended Sept 30, 2011 to decline 9.7% year-on-year (y-o-y). Profit attributed to shareholders came in at RM251.83 million from RM278.9 million after taking in smaller numbers from YTL Power International Bhd.

“This is not unexpected, given the nature of the business and the front-loaded capital outlay required to build our nationwide network,” group managing director Tan Sri Francis Yeoh said in a statement, adding that the business would turn in profit once scale is attained.

Revenue rose marginally to RM4.54 billion from RM4.41 billion, even though performance at cement processing and other utility divisions held up well.

The group said it is in the final stage of ongoing rationalisation of its retail and hospitality division with the acquisitions by Starhill Real Estate Investment Trust (Starhill REIT) of its eight hotels, including the Ritz-Carlton Kuala Lumpur, the Vistana chain of hotels, as well as the Pangkor Laut, Tanjong Jara and Cameron Highlands luxury resorts.

“Internationally, the trust is in the process of completing its acquisition of Hilton Niseko in Japan. In addition, the group completed the restructuring of its property development business on Nov 4,” he said.

Yeoh says the loss from YES is not unexpected due to the heavy capital outlay needed to build a nationwide network.

YTL Power’s net profit fell to RM246.2 million for the quarter compared with RM272.9 million last year. Revenue, however, grew by 4.4% to RM3.64 billion from RM3.48 billion, mainly due to better performance of its merchant multi-utility businesses.

“The group’s established utilities business, comprising power generation and power transmission in Malaysia, Singapore, Indonesia and Australia, water and sewerage services in the United Kingdom and merchant multi-utility businesses in Singapore, continued to perform steadily during the quarter,” the group said in a statement.

Another subsidiary, YTL Cement Bhd, recorded a 4.4% increase in earnings to RM75.8 million for 1QFY12 ending June 30, although revenue rose 17.6% to RM544.7 million (y-o-y).

Property development arm YTL Land & Development Bhd saw a fall in net profit to RM2.9 million for 1QFY12 versus RM3.2 million last year. Revenue declined to RM3.4 million from RM14 million, owing to “timing differences of project launches” and higher operating expenses, it said.

YTL E-Solutions Bhd recorded a RM9 million net profit for 1QFY12, compared with RM2.2 million last year, with revenue doubling to RM20.8 million from RM9.2 million. It attributed growth to the fee income derived from a spectrum sharing agreement in relation to its 2.3 GHz Worldwide Interoperability for Microwave Access spectrum.


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

News in brief

Global Transit gets RM101m in bandwidth sales
KUALA LUMPUR: Global Transit Communications Sdn Bhd (GTC) has secured RM101 million in regional bandwidth sales to leading telecommunications providers in Asia as at mid-November, Bernama reported yesterday, citing a company statement.

“The strong traction, growth of 115% over a year, has put GTC on the map as the alternative Asian gateway,” said CEO Saiful Husni Samak in the statement.

GTC, which serves about 140 customers from various countries in Asia, many of them Tier 1 fixed and mobile telecommunications companies, has points-of-presence in Malaysia, Singapore, Hong Kong and the US.

GTC is one of three assets Time dotCom Bhd (TdC) has proposed to acquire from Khazanah Nasional Bhd and Megawisra Sdn Bhd, which is 75%-owned by TdC’s CEO Afzal Abdul Rahim — for RM322 million in cash and new TdC shares.


Tan Chong 3Q profit rises 11% to RM55m
KUALA LUMPUR: Tan Chong Motor Holdings Bhd’s 3QFY11 net profit rose 10.5% to RM54.5 million from RM49.3 million the year before, as production stayed resilient despite supply chain disruptions.

Revenue grew 3.8% to RM905.3 million over the same period. “Fortunately, the group had sufficient inventories after the earthquake in Japan and before the floods in Thailand,” it said in a statement yesterday.

For the nine months ended Sept 30, net profit rose 3.37% year-on-year to RM185.1 million while revenue grew 11.6% to RM2.9 billion.

Cost-to-income ratios rose with the consolidation of Nissan Vietnam Ltd, which has yet to break even due to translation losses from a weaker Vietnamese dong.

Costs incurred for regional expansion and facilities upgrades also contributed to lower margins. The current quarter is expected to be challenging due to specific model shortages, Tan Chong said, but it should be able to keep up with end-demand by pacing sales and sourcing alternative components.


Tradewinds Plantation earnings up 96%
PETALING JAYA: Tradewinds Plantation Bhd’s earnings for 3QFY11 jumped 96.4% to RM98.8 million year-on-year on the back of a 39.6% top line gain to RM333.5 million, owing to higher prices and production of palm oil products.

For the nine months ended Sept 30, group revenue rose 46% to RM899.3 million while profit attributable to shareholders surged 130% to RM237.51 million.

Numbers for 4Q are expected to be satisfactory, given prevailing prices of palm products, its board said. It declared a first gross interim dividend of five sen per share, or a RM19.8 million payout.


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Maxwell to tie up with leading sports shoe brand

KUALA LUMPUR: China-based shoe manufacturer Maxwell International Holdings Bhd is close to sealing a deal with a leading international sports shoe brand, according to CEO Xie Zhen’an.

In an interview with The Edge Financial Daily yesterday, Xie said the tie-up will provide good long-term prospects for Maxwell, adding that the international brand will be disclosed once the deal is finalised.

Through its wholly owned subsidiary, Jinjiang Zhenxing Shoes & Plastics Co Ltd, Maxwell is an original equipment manufacturer (OEM) and original design manufacturer (ODM) in the sports shoe market. Its end-customers include international brand names such as Yonex, Diadora, Kappa, Brooks and FILA.

Maxwell which is listed on Bursa Malaysia, announced a 13.8% year-on-year rise in net profit yesterday to RM22.59 million for 3QFY11 ended Sept from RM19.85 million a year ago. Due to better sales, revenue also increased by a larger margin of 18.4% to RM114.7 million from RM96.88 million previously. Basic earnings per share for the quarter was 5.65 sen compared with 5.90 sen a year ago.

For the nine months to Sept 30, net profit was unchanged at RM49.6 million on revenue growth of 10.8% to RM272 million from RM245.3 million a year ago.

For FY10, it posted a net profit of RM65.14 million on the back of RM335.92 million revenue. It is noteworthy that between 2006 and 2010, Maxwell’s revenue and net profit saw a compound annual growth rate of 46% and 53%.

Xie says investors should not stereotype China-based companies but instead judge them on merit.

Maxwell’s customers are mainly trading houses and brand distributors based in China. Xie said these customers in turn export Maxwell’s shoes to Europe, South and North America, Asia and Africa. In FY10, about 96% of its revenue came from China.

Despite having sound financials, Maxwell, like other China-based companies listed on Bursa, has experienced steep declines in its share price. Xie said this is most likely due to a negative perception arising from accounting irregularities at some China-based companies listed in Singapore and elsewhere.

“The perception is that just because one apple is bad, then the others should be as well. I hope investors will eventually start to judge a company based on its merit,” he said of Maxwell being stereotyped as a China-based company.

Maxwell’s share price has fallen by 30% to close at 38 sen yesterday from its IPO price of 54 sen in January.

As at end-June, Maxwell had a net cash position of RM193.12 million with no borrowings.

Its prevailing share price of 38 sen is below its book value of 73 sen and its net cash per share of 48 sen as at end-September. It paid its maiden dividend of 3.35 sen per share in September, representing a net dividend yield of 8.8%. Maxwell has a dividend payout policy of 20%. Xie said these figures make Maxwell an undervalued company.

Compared with other China-based shoe companies listed on Bursa, Xie said Maxwell is slightly different because it focuses on ODM and OEM.

The other Chinese shoe companies, K-Star Sports Ltd , XiDeLang Holdings Ltd and Xingquan International Sports Holdings Ltd are primarily own-brand manufacturers (OBM) — their products are marketed and sold under proprietary brand names and distribution networks.

Unlike an OBM, he said Maxwell does not incur large expenditure in building and marketing its own brand name.

Maxwell has a design and development (D&D) department focusing on developing new designs in-house or in accordance to specifications provided by customers. Xie said this capability differentiates Maxwell from other OEMs. Maxwell develops 1,000 designs annually and will be increasing that number to 1,500 in the future, he said.

Maxwell is planning to increase its production capacity to 16 million pairs of shoes by adding another four more production lines to its current four production lines. Each production line has an annual capacity of two million pairs of shoes, he said.

Maxwell’s production facility is located in Jinjiang, Fujian province. Xie said Jinjiang is the world’s largest sports shoe hub and is in proximity to raw material sources and suppliers.

For the expansion, Maxwell has yet to decide if it will completely relocate its production facility or continue expanding in the same location. Adding production lines in the vicinity of its present facility will take a year to complete and cost around RM50 million to RM60 million, he said. It will involve tearing down a warehouse and then building an eight- to nine-storey building.

If Maxwell chooses to relocate, it will have to rebuild its facility at a new location with a larger land area. Xie said this option will take three years and provides better long-term prospects as there will be more space to add production lines there in the future.

In 2010, Maxwell produced 11.27 million pairs of shoes, of which 47% were outsourced externally. Xie said outsourcing allows Maxwell to limit the risk of an unexpected drop in demand or to cope with increasing demand. Xie added that gross profit margins from outsourcing and in-house production were almost the same in 2010.

Xie said shoe soles account for half of Maxwell’s raw material costs, which made up 71% of Maxwell’s total cost of sales in 2010. He said Maxwell is able to pass down increases in raw material costs to its customers.

To sustain consistent margins going forward, Xie said Maxwell ensures that it has at least a gross profit margin of 25% before accepting a sales order.


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

TSH 3Q net profit surges 89% to RM34m

KUALA LUMPUR: Plantation company TSH Resources Bhd’s net profit for its third quarter (3Q) ended Sept 30 surged 89% to RM34.4 million from RM18.2 million a year ago while revenue rose 27% to RM273.1 million from RM214.2 million.

The company said its palm and bio-integration business continues to generate favourable results due to higher crop production arising from better yield and an increase in mature plantation area in Indonesia.

Its mill operations continue to show high efficiency to manage higher oil extraction rates, it said.

TSH said its cocoa manufacturing segment saw a lower profit due to a decline in production and the price of cocoa butter.

Losses at its wood products segment widened during 3Q to RM902,000 from RM286,000 previously on lower sales volume and the downsizing of overseas operations.

Earnings per share rose to 8.41 sen from 4.45 sen previously.

Revenue for the nine months ended Sept 30 rose 29% to RM855.6 million from RM662.2 million a year ago as net profit more than doubled to RM94.3 million from RM40.8 million.

TSH said palm oil prices are stabilising at between RM2,900 and RM3,000 and are expected to remain strong due to its inherent competitiveness, though any upside to its price may be limited by negative economic developments in Europe and the US.

“With palm oil prices maintaining at current levels and an increased (amount of) hectarage coming into maturity, the group is expected to achieve a satisfactory level of profitability,” TSH said of its prospects.

It added that it is seeking more business opportunities within South Asia to turn around its wood segment, which may be subdued by falling consumer and spending trends in Europe.


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

MMC ready for Gas Malaysia IPO

MMC Corp Bhd (Nov 17, RM2.51)
Maintain trading buy at RM2.52 with revised fair value of RM3.65 (from RM3.47): Following our meeting with management and our Invest Malaysia Hong Kong 2011 event, we note that the Port of Tanjung Pelepas (PTP) has been growing at a stronger-than-expected 15.5% year-to-date in terms of volume, while Johor Port has secured a tariff hike after a 20-year wait and the double-tracking project remains on track.

With numerous large IPO such as Pavilion REIT and Felda Global hogging investor attention, MMC should not be left out in the cold in view of the upcoming Gas Malaysia Bhd IPO. The proposed IPO has secured approvals from Bursa Malaysia, MMC shareholders and the Economic Planning Unit.

All that is holding it back now is the condition requiring Gas Malaysia to sign a new gas supply agreement with Petronas. We understand demand from investors at the indicative IPO price of RM2.20 per share has been strong.

We build into our assumptions: (i) that MMC raises RM307 million from the sale of its 10.9% stake in Gas Malaysia and uses it to pare down its borrowings; (ii) Gas Malaysia’s share price settles at RM2, which we build into our sum-of-parts valuation for MMC. This will lift our earnings forecasts by 3% for 2012 and 4% for 2013 as the finance cost savings offset minority interest leakage.


Our sum-of-parts fair value is lifted to RM3.65 and we maintain our “trading buy” call, noting that much depends on the listing of Gas Malaysia. — OSK Research, Nov 17


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

October 2011 adex: Reality bites

Media sector
Maintain underweight: October 2011 total gross advertising expenditure was up 4% year-on-year (y-o-y), but disturbingly, TV adex contracted 6% y-o-y, the largest contraction since February 2009. We understand this is due to weakening consumer sentiment. Newspaper adex, especially Malay and Chinese newspapers, grew 12% y-o-y.

November 2011 is expected to be another quiet month due to lack of adex-friendly events. Maintain “underweight” on the media sector.

Whenever TV adex contracts but newspaper adex grows y-o-y, this indicates that advertisers are turning cautious on consumers. Historically, TV adex is more sensitive to sentiment fluctuations than newspaper adex.

October 2011 total gross adex was little changed from the seasonally slower months of March and April.

Historically, October total gross adex is seasonally higher than that of both March and April. Like September 2011, we understand that this was due to still weak consumer sentiment.

Historically, November is a quiet month due to a lack of adex-friendly events with the total gross adex levels little changed from October. In terms of total gross adex growth y-o-y going forward, we reiterate our view that it will be mid single digits in percentage terms at best due to the high base effect and weakening consumer sentiment. Adex for 10MFY11 grew 10% y-o-y, in line with our 6.8% forecast gain for 2011 and 7% for 2012.

We maintain our assumptions and earnings estimates for the media companies under our coverage. As we expect three-year forward sector earnings compound annual growth rate of only 2%, we opine that media companies should not be trading at historical averages but at close to -1 standard deviation valuations.

Media Prima Bhd is a “sell” for its vulnerability to slower adex growth. Media Chinese International Ltd is a “sell” for its vulnerability to newsprint prices. Star Publications (M) Bhd is a “hold” for its stable dividend yields of more than 5%. — Maybank IB Research, Nov 17


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Margin expansion at Three-A Resources to accelerate

Three-A Resources Bhd (Nov 17, RM1.17)
Maintain buy at RM1.18 with revised fair value of RM1.83 (from RM2.13): Three-A Resources (3A) posted a higher net profit of RM14 million (year-on-year [y-o-y]: 4%) for 9MFY11. Earnings for the nine months came in at the low end of our full-year forecast and consensus estimate at 65%, with the variance mainly due to softer than expected top line growth. We have trimmed our FY11F to FY13F earnings by 10% to 12%. Despite our revisions, our earnings model indicates a strong three-year compounded annual growth rate of 35%. We are now projecting FY11F net profit of RM18 million to grow 63% to RM30 million for FY12F, and a further 43% to RM42 million the year after.

On a sequential basis, 3Q performance was impacted by lower revenue which contracted 11% due to softer demand, and partially offset by a margin expansion of 2.9 percentage points. While net profit declined 34% to RM3 million, we remain encouraged by the group’s continued margin recovery on the back of cheaper raw materials. We expect margin revival to gain further traction as cheaper costs filter through in the quarters ahead.

As it is, key input cost of tapioca starch (Thai) is trading at US$460 (RM1,454) per tonne, 19% off its year-to-date peak in June. Tapioca starch constitutes 40% to 50% of total raw materials.

We remain positive about 3A’s prospects. Its capacity driven earnings growth is well underpinned by stable demand and margin recovery.

More importantly, 3A’s long-term growth and transformational earnings are on track, with its maiden China joint venture plant with Wilmar International on schedule for operational commencement by end-FY11F.

We maintain “buy” on 3A with a revised fair value of RM1.83 per share (previously RM2.13), based on a fair price-earnings ratio (PER) of 24 times FY12F earnings. Valuation is cheap at the present level, with forward PER of 15 times at a steep discount to its three-year historical average of 26 times. — AmResearch, Nov 17


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Dialog in line for 1QFY12

Dialog Group Bhd (Nov 17, RM2.46)
Maintain outperform at RM2.40 with fair value of RM3.51: Net profit for 3MFY12 of RM44.5 million was largely within expectations, accounting for 21.5% of our (RM206.8 million) and 22.6% of consensus (RM197.1 million) estimates.

There was a quarter-on-quarter deterioration in revenue (-5%) and earnings before interest and tax (-22.4%), likely caused by: (i) the reduction in major engineering and construction work as the Pengerang tank terminal project is still in the early stages; and (ii) incremental costs to kick-start the Pengerang tank terminal project has led to a slight margin squeeze. However, the company’s strong associate earnings (+36.3%) mitigated the impact to bottom line earnings (-0.7%). We believe the higher associate earnings was likely due to the start-up of Phase 3 of Tanjung Langsat 1 which we understand was completed in August. Tanjung Langsat 2 is expected to be completed in December.

The company has its hands full with upcoming projects: (i) Phase 1 of the Pengerang deepwater tank terminal project; and (ii) Balai cluster marginal field development. It is also looking to complete its fundraising exercise (rights issue on the basis of two rights shares plus one free warrant for every existing 10 shares held) by 1QCY12 and hopes to secure another marginal field project when tenders are opened in CY12.

We maintain our earnings estimates. Risks include: (i) fall in crude oil prices that could result in oil and gas majors delaying/cancelling projects which will affect growth in Dialog’s core operations; (ii) delays to start-up timelines of projects in hand; and (iii) heightened competition as other companies emulate Dialog’s business model.

Dialog remains one of our favourites in the oil and gas sector given the: (i) long-term project visibility; (ii) resilience of the tank terminal business during a downturn; (iii) conservative risk management which underpins the success of its ongoing and upcoming projects; and (iv) apparent strong linkage to Petroliam Nasional Bhd. As such, we maintain our “outperform” call on the stock and our sum-of-parts-based fair value of RM3.51 per share. — RHB Research, Nov 17


This article appeared in The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

First block of The Wharf Residence 80% sold

PUCHONG: More than 80% of the first block of The Wharf Residence serviced apartments at The Wharf commercial development in Taman Tasik Prima, Puchong, has been taken up.

Officially launched last Saturday, The Wharf Residence comprises three high-rise towers with 1,002 units of serviced apartments. Developer Bolton Bhd launched the first block of 334 units with a gross development value (GDV) of RM105 million.

The units have built-ups of 795 sq ft to 1,173 sq ft with 2- or 3+1-bedroom units at prices from RM275,130.

The Wharf Residence offers purchasers full condo facilities, including a swimming pool, children’s pool, gymnasium, playground, yoga zone, jogging track and a lush landscaped garden. Another unique feature is the external storage room for each unit located on the same floor as the unit.

According to Datuk Azman Yahya, executive chairman of Bolton, Taman Tasik Prima has emerged as one of the preferred townships in Puchong on the strength of its meticulous planning and innovative products.

“At Bolton, we continue to push the envelope in terms of creativity and innovation,” Azman said. “What we are launching is based on thorough market research of what consumers want to see in apartment living. As a result, I am very pleased to announce that we sold 70% of the units in the first tower prior to the launch.”

An artist's impression of The Wharf Residence.

Bolton began developing Taman Tasik Prima, an integrated township of mixed residential and commercial projects built around a 200-acre lake, some 10 years ago.

“When we first began developing Taman Tasik Prima, we had planned to achieve RM500 million in terms of GDV. Today, Taman Tasik Prima’s GDV is in excess of RM1 billion, with The Wharf development itself being valued at more than RM500 million,” said Azman.

The Wharf is the township’s commercial centre that sits on 15 acres of leasehold land within the 345-acre township. The integrated development comprises boutique showroom offices, flexi-office suites, the serviced apartments and a mall.

The first component of The Wharf, the BizWalk, made up of 32 boutique three-storey showroom office units priced at RM2.2 million each, was launched in August last year. These units are sold out.

Azman added that Bolton plans to follow up on this success with the upcoming launch of the flexi-suites, described as a “versatile two-in-one commercial offering.”

The mall is expected to be completed by 2013. “The mall will further strengthen the appeal of The Wharf Residence. It has a gross floor area of 506,510 sq ft and 1,296 parking bays. There will be a link bridge from the apartments to the mall, providing integrated convenience to the residents,” said Azman.

He said Bolton is confident the remaining units of the first block will be snapped up before the year ends.

Bolton has been developing properties since 1964. Its completed developments include Taman Midah in Cheras and The Tijiani in Bukit Tunku. Bolton has built a reputation for its residential, retail, industrial and commercial properties cementing itself as one of the oldest and most established developers in Malaysia.


This article appeared on the Property page, The Edge Financial Daily, November 18, 2011.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

'Panasonic to make solar panels in Malaysia'

Panasonic Corp will invest as much as 50 billion yen (US$645 million) to build a solar panel plant in Malaysia, its first such facility overseas, as a strong yen pushes up production costs at home, two industry sources told Reuters.

The firm, which has been touting environmental and energy technology as key growth areas, dropped a plan to convert a television panel plant in Western Japan into a solar power factory in October because of the rising yen and an industry price war.

The Malaysia plant will start production in the financial year starting next April and bolster the company’s solar output capacity by 50 per cent to about 900 MW, the sources said.

The company plans both production of solar cells and assembly of solar panels at the plant, the sources said. Panasonic declined to confirm the plan.

“We will announce details of our solar panel growth strategy at the appropriate time,” said company spokesman Akira Kadota.

Competition among Japan’s big solar panel makers, including Sharp Corp and Kyocera Corp, is intensifying as they look to compete with rivals overseas. At the same time demand for solar panels is expected to slump in Europe due to cuts in government funding. -- Reuters



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

MAS to serve premium ice-cream onboard

Malaysia Airlines (MAS) will serve premium ice-creams, Haagen-Dazs and Magnum Mini Classic, on its flights from Kuala Lumpur to Sabah, Sarawak and regional destinations during the school holidays.

In a statement today, MAS said Haagen-Dazs ice cream would be offered to Business Class passengers and the Magnum Mini Classic to those in the Economy Class.

The regional destinations included Jakarta, Denpasar, Surabaya, Manila, Phnom Penh, Hanoi, Ho Chi Minh City, Yangoon, Bangkok, Phuket and Bandar Seri Begawan, it said.

"The ice creams will be served in-flight with brunch, lunch and light meals from November 19 to December 31, 2011," it said. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

CIMB Bank named Best Internet Bank by Global Finance magazine

KUALA LUMPUR (Nov 18): CIMB Bank has been named winner of the Best Internet Bank Award in Malaysia at Global Finance magazine’s The World’s Best Internet Bank Awards at its Ninth annual awards dinner in New York recently.

In a statement Friday, Nov 18, CIMB head of retail and financial services Peter England said the award was proof that the bank’s efforts to provide a safe online platform for its customers to both transact and interact with the bank were recognised.

“CIMB Clicks, our online banking platform, has gained great traction in its uptake and as such, it is important that it consistently exceeds customers’ expectations for online banking. This award will spur us on to take it to greater heights,” he said.

Global Finance magazine publisher Joseph D Giarraputo said CIMB Bank’s efforts in ensuring that its internet banking platform offered customers the best possible service with the highest level of security was laudable.

“The world is becoming increasingly connected and more and more people are looking for convenience online. CIMB Bank has proved that the online facilities it offers its customers provide them just that, with no compromise to security.

“The bank’s win of Global Finance’s Best Internet Bank in Malaysia Award speaks volumes for its service levels and its customers’ trust in its capabilities,” he said.

233 individual banks from around the world entered submissions to be considered Best Internet Bank in various categories.

The winners of the awards were selected based on the strength of their strategy for attracting and servicing online customers, success in getting clients to use web offerings, growth of online customer base, breadth of products offered, evidence of tangible benefits gained from internet initiatives, and web site design and functionality.

Global Finance is a monthly magazine founded in 1987.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Harvest shares, warrants advance, ignore trading curbs

KUALA LUMPUR (Nov 18): HARVEST COURT INDUSTRIES BHD []’s shares and the warrants climbed on Friday despite the trading curbs on the securities which came into effect on Wednesday to check excessive speculation.

At 4.14pm, Harvest was up 31 sen to RM1.35 with 8.89 million shares done while the warrants added 26 sen to Rm1.15 with 8.51 million units transacted.

The performance of the securities bucked the cautious broader market which saw the FBM KLCI falling 4.77 points to 1,460.70.

Turnover was 1.25 billion shares valued at RM930.63 million. There were 166 gainers versus 598 losers while 237 stocks were unchanged.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KL shares still in the red at mid-afternoon

Share prices on Bursa Malaysia stayed lower mid-afternoon ahead of the third-quarter Gross Domestic Product (GDP) announcement later today which will give some insights on the country's economy in the coming months, dealers said.

At 3 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 5.38 points lower at 1,460.09 with losses mostly seen in Petronas Chemicals and MISC, which accounted for a 2.742 point drop in the FBM KLCI.

The barometer index, which opened 3.13 points lower, moved between 1,459.42 and 1,468.44.

The Finance Index lost 62.38 points to 13,011.5, the Industrial Index declined 15.89 points to 2,682.8 but the Plantation Index improved 38.95 points to 7,667.07.

The FBM Emas Index decreased 37.729 points to 10,023.29, the FBM Mid 70 Index eased 39.64 points to 10,967.11 and the FBM ACE Index slid 46.35 points to 4,220.1.

Losers led gainers 520 to 155 while 250 counters were unchanged, 562 not traded and 32 other were suspended.

Turnover stood at 910.019 million shares worth RM680.662 million.

Of the actives, Frontkn eased 0.5 sen to 13.5 sen, Compugates was unchanged at 8 sen and Frontkn-WA lost 1 sen to 9.0 sen.

In heavyweights, Maybank declined 6 sen to RM8.24, Petronas Chemicals slipped 8 sen to RM6.17, MISC lost 18 sen to RM6.51 while Sime Darby and CIMB added 3 sen each to RM8.93 and RM6.90, respectively. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Sunway REIT sees 3.99% stake done off-mkt at RM1.05 each

KUALA LUMPUR (Nov 18): Sunway Real Estate Investment Trust (REIT) saw a 3.99% stake transacted in several off-market deals on Friday at an average price of RM1.05 a share, which was eight sen below the current market price of RM1.13.

Stock market data showed that the stake represented 107.47 million units. Its paid-up is 2.689 billion shares.

At 3.21pm, Sunway REIT shares were down just one sen to RM1.13 with 19,000 units done.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Harvest rebounds after 2-day selldown on trading curbs

KUALA LUMPUR (Nov 18): The shares of HARVEST COURT INDUSTRIES BHD [] staged a mild rebound on Friday after a two-day selldown since Wednesday after trading curbs were placed.

At 2.57pm, the share price was up 15 sen to RM1.19 with 5.60 million units done. The warrants gained six sen to 95 sen with 5.26 million units transacted.

On late Monday, Bursa Malaysia Securities Bhd announced that it had declared the securities of Harvest Court as designated counters with effect from Nov 16, Wednesday, due to excessive speculation.

The imposition of this ruling for the shares and the warrants are in force until further notice.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

OSK Research maintains Buy on TSH Resources, ups FV to RM4.03

KUALA LUMPUR (Nov 18): OSK Research is maintaining its Buy recommendation on TSH RESOURCES BHD [] with a higher revised fair value of RM4.03.

It said TSH’s nine-month earnings were slightly above its and consensus estimates as the softer palm oil price was offset by lower costs and a better oil extraction rate (OER).

OSK Research said the fresh fruit bunches (FFB) production growth continued to be stellar on-year on both the Sabah and Indonesia fronts. “While we expect Sabah production growth to taper off going forward, Indonesia will remain the company’s key growth driver in achieving double digit production growth,” it said.

On Thursday, TSH announced that for the nine months ended Sept 30, TSH’s net profit jumped 131% to RM94.39 million from RM40.83 million in 2010 while revenue increased by 29.2% to RM855.69 million from RM662.22 million in 2010.

For the third quarter, its net profit surged 89% to RM34.47 million from RM18.24 million a year ago, underpinned the strong performance of its palm and bio-integration segment. Its revenue for the quarter rose 27.5% to RM273.15 million from RM214.26 million in 2010.

OSK Research said TSH’s core earnings of RM87.3 million for 9MFY11, accounted for 79.3% and 77.2% of its and consensus’ full-year forecasts respectively.

Revenue for the quarter itself surged 29.2% on-year but fell 17.2% sequentially amid weaker palm oil prices. Cost of sales, however, plunged by a substantial 21.6% on-quarter as third party FFB purchases dropped 16.9%, tipping the on-quarter core earnings growth into positive territory.

FFB production rose a marginal 1.2% on-quarter but soared 45.6% on-year, driven by the 60.8% growth experienced in Indonesia.

On a year-to-date basis, FFB production was 48.0% higher as Indonesia and Sabah production rose 71.8% and 18.1% respectively.

“We are tweaking up our FFB production to reflect a full year growth of 36.3% and revising upwards our OER assumption slightly to 21.2% from 21.0% previously.

“The marginal 0.6% on-quarter dip in CPO production despite a 11.5% drop in FFB processed indicates that OER improved on-quarter,” it said.

OSK Research said TSH’s unplanted landbank was 66,700 ha.

The termination of the share sale agreement between TSH and Portvest in relation to the acquisition of Mildura Investment on Oct 19 removed some 12,000 ha from TSH’s total landbank.

“However, the acquisition of two new Indonesian subsidiaries added another 21,300 to its landbank, bringing the company’s total planted and unplanted areas to 23,800 ha and 66,700 ha respectively,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

DiGi ties up with Google to offer Gmail SMS

KUALA LUMPUR (Nov 18): DIGI.COM BHD [] is partnering Google to provide Gmail short messaging service (SMS) effective from Friday.

DiGi said this latest move expanded the SMS-based Internet applications and services which would enable the telco customers to access their favourite online apps.

“This strategic partnership with Google also positions DiGi as the first mobile operator to offer the Gmail SMS service in Malaysia,” it said.

The head of mobile Internet & ADS for DiGi, Praveen Rajan said a recent Nielsen survey reported Malaysians spent an average weekly of over five hours accessing the Internet via mobile devices.

“The partnership with Google empowers us at DiGi to offer the SMS option to millions of Gmail users in Malaysia to significantly extend their chat community through real-time chat via SMS, regardless of any mobile device type,” he said.

Manwhile, Country Head of Google Malaysia Sajith Sivanandan said Google's overall mission was to make information accessible and useful to people.

“SMS has long been a common means of mobile communications in Malaysia and many Malaysians still rely on their non-smartphones. Gmail SMS makes instant communication between Gmail and a mobile phone possible via SMS,” he said.

Gmail SMS brings the popular Gmail Service to a non-smartphone easily. With Google’s Gmail SMS, people can send free text messages to their friends directly from their Gmail account. Replies and responses to the text message will appear as a reply in Chat.

For DiGi customers, the service is free of charge and requires no subscription; chat messages sent via SMS from their mobile phones are billed at 10 sen per SMS.

This strategic partnership announcement is made on the back of a global agreement between Google and Telenor announced recently.

Telenor’s intention is to roll out a global Android Market initiative in stages to stimulate further growth of the Android ecosystem in all 11 international markets, including Malaysia.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Tiger Synergy: Nujade Garden to fund RM30m condo project

KUALA LUMPUR (Nov 18): Tiger Synergy Bhd’s joint venture for the RM30 million condominium projects would be financed by its partner, Nujade Garden Sdn Bhd.

It said on Friday that Nujade Garden “shall be solely responsible to secure the CONSTRUCTION [] cost through their own internal funds” for the project which would involve 450 units of condominiums.

Tiger Synergy said there would be a total saving of RM7.2 million finance cost to the company.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KL shares in the red at mid-day

Share prices on Bursa Malaysia remained in the red at the end of the morning session today on investors' reluctance to take heavy positions ahead of the third-quarter gross domestic product growth announcement today, dealers said.

At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 2.86 points to 1,462.61 with losses mostly seen in Petronas Chemicals, which accounted for 1.056 points of the FBM KLCI losses.

The Finance Index dropped 55.82 points to 13,018.06, Industrial Index slipped 6.08 points to 2,692.61 and the Plantation Index fell 43.52 points to 7,671.64.

The FBM Emas Index declined 23.92 points to 10,037.1, FBM Mid 70 Index decreased 31.82 points to 10,974.93 and the FBM ACE Index dwindled 39.21 points to 4,227.24.

Losers outnumbered gainers by 471 to 164 while 248 counters were unchanged, 604 not traded and 32 other suspended. Turnover stood at 763.766 million shares worth RM562.011 million.

Maybank Investment Bank, in its research note here today, said that the resistance areas of 1,465 and 1,488 will cap market gains, while the weaker support areas may be located at 1,433 and 1,460.

"Due to the US markets’ very poor tone last night, we may see another downward day for the index. Profit-taking and liquidation would take place ahead of the weekend," it said.

Of the actives, Frontkn shed half sen to 13.5 sen, Compugates was unchanged at eight sen and Frontkn-WA lost one sen to nine sen.

In heavyweights, Maybank declined six sen to RM8.24, Petronas Chemicals slipped seven sen to RM6.18 while Sime Darby added three sen to RM8.93 and CIMB Group rose two sen to RM6.890. -- Bernama



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

KLCI extends losses, Asian mkts mired in red

KUALA LUMPUR (Nov 18): Growing fears of deepening funding difficulties in Europe that has kept Asian equity markets for four days in a row sent the FBM KLCI lower at the mid-day break on Friday, Nov 18.

The FBM KLCI fell 2.84 points to 1,462.63 at 12.30pm, with losses at select blue chips as investors stayed on the sidelines ahead of the weekend.

Gainers trailed losers by 164 to 471, while 248 counters traded unchanged. Volume was 763.77 million shares valued at RM562.01 million.

The ringgit weakened 0.15% to 3.1630 versus the US dollar; crude palm oil futures for third month delivery rose RM16 per tonne to RM3,228, crude oil fell 27 cents per barrel to US$98.55 while gold added US$2.33 an ounce to US$1,724.10.

At the regional markets, South Korea’s Kospi fell 2.02% to 1,838.73, Hong Kong’s Hang Seng Index lost 1.81% to 18,476.24, Taiwan’s Taiex was down 1.67% to 7,264.65, the Shanghai Composite Index lost 1.35% to 2,429.86, Japan’s Nikkei 225 fell 1.25% to 8,373.52 and Singapore’s Straits Times Index shed 1.14% to 2,746.69.

On Bursa Malaysia, HLFG was the top loser this morning and fell 20 sen to RM11.36; Kluang, Ibraco, Public Bank, AIC and UMW lost 10 sen each to RM2.50, RM1.27, RM12.58, RM1.16 and RM6.50 respectively, Aeon Credit, MISC and TDM lost nine sen each to RM5.56, RM6.60 and RM3.27 respectively, while Edaran fell 8.5 sen to 31 sen.

Frontken was the most actively traded counter with 44.8 million shares done. The stock fell half a sen to 13.5 sen.

Other actives included Compugates, Extol, DPS Resources, SAAG, Envair and SYF Resources.

Among the gainers, BAT rose 32 sen to RM46.62, Fima Corp 30 sen to RM6.10, Tradewinds and Harvest Court 16 sen each to RM9.19 and RM1.20, Tradewinds PLANTATION []s 14 sen to RM3.74, DiGi 12 sen to RM34.94, Ewein 9.5 sen to RM1.06, Ekovest nine sen to RM2.70 while KrisAssets added eight sen to RM4.38.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

RM112.8m Sunway REIT shares traded off-market

Sunway Real Estate Investment Trust had shares worth RM112.8 million change hands in off-market trades, according to data compiled by the Kuala Lumpur stock exchange.

Some 107.5 million shares, or a 4 per cent stake, traded off-market at RM1.05 each, the data showed. The stock dropped 0.9 per cent to RM1.13 at 12:02 p.m. local time. -- Bloomberg


Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.