Hibiscus says unaware of unusual market activity

KUALA LUMPUR (Jan 25): Hibiscus Petroleum Bhd, which was queried by Bursa Malaysia Securities Bhd after its securities jumped in very active trade on Wednesday, replied it was unaware of the reasons for the unusual market activity.

The shares closed 32 sen higher at RM1.52 with 53.58 million shares done while the warrants climbed 14.5 sen to 85 sen with 176.11 million units done.

The board of Hibiscus said that to the best of their knowledge and after making due enquiry with the directors and major shareholder, it was unaware of the factors which could have cause the unusual market activity.



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KNM proposes to buy company, with 55 acres of land in England, for RM120m

KUALA LUMPUR (Jan 25): KNM GROUP BHD [] has proposed to acquire a company owning 55 acres of land at Storey's Bar Road, Peterborough, England for 25 million pound sterling or RM120 million.

It said on Wednesday it had signed an exclusivity agreement with Poplar Holdings Ltd for the grant of exclusivity to acquire the latter’s unit Poplar Investments Ltd which owns the 55 acres of vacant land.

KNM also said the exclusivity period started on Monday and until and including April 25, 2012.

“The rationale for this agreement is to secure exclusive rights during the exclusivity period, to purchase the sale shares and indirectly own the land for the development of the 80 MW waste to energy plant,” it said.

KNM said the land was vacant with no building or structures attached and the proposed transaction would be fully settled in cash through internally generated funds and/or bank borrowings.



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DBE Gurney director sells 12m shares at 8c each

KUALA LUMPUR (Jan 25): Shares of DBE Gurney Resources Bhd, which were very actively traded last week, reported that its director had disposed of 12 million shares on Jan 18.

The poultry-based company said on Wednesday that Ding Seng Huat had disposed of the shares, representing a 1.78% stake, at an average price of 8.0 sen each.

To recap on Jan 19, DBE confirmed it was in talks with a shareholder of CI Holding Bhd which includes a private placement exercise.

DBE also said it had plans for a private placement to raise funds for its working capital requirement but it was “at preliminary stage”.



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Cybertowers gets SC nod to issue RM11m loan stocks

KUALA LUMPUR (Jan 25): CYBERTOWERS BHD [] has received the Securities Commission’s approval to issue up to RM11 million in loan stocks under its proposed corporate exercise.

It said on Wednesday the SC had, in its Jan 20 letter, gave its nod for the proposed issuance of the RM11 million nominal value of two-year, 0%, irredeemable convertible unsecured loan stocks (ICULS) at 100% of its nominal value of 2.0 sen each.

Cybertowers had on Nov 17, 2011 proposed to reduce the share premium account by up to RM2.03 million. It also proposed to cancel 8.0 sen of the par value of each 10 sen share.

The company had also proposed to place out up to 10 million new of 2.0 sen each, or 10% of the paid-up share capital.

Under the exercise, it had also proposed the renounceable rights issue of up to RM11 million ICULS and to diversify into the provision of hosting services and cloud computing related business.



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Can-One completes purchase of 32.9% stake in KJCF

KUALA LUMPUR (Jan 25): CAN-ONE BHD [] has completed the acquisition of the 32.9% stake in KIAN JOO CAN FACTORY BHD [] (KJCF) for RM241.11 million cash consideration.

Can-One said on Wednesday the acquisition of the 146.13 million KJCF shares from Kian Joo Holdings Sdn Bhd was deemed completed as all the conditions in the conditional shares sale agreement dated March 23, 2009 had been fulfilled.

Analysts are expecting Can-One to make a general offer after securing the 32.9% block of KJCF.

They added Can-One would be in a better position to increase the market share once its take control of KJCF.

To recap, Can-One announced on Jan 6 that it won the legal tussle to acquire the block of KJCF shares after a Federal Court ruled in its favour.



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Sime Darby expanding plantations biz in Indonesia

KUALA LUMPUR (Jan 25): SIME DARBY BHD [] is expanding its PLANTATION []s via the acquisition of a 95% stake in PT Indo Sukses Lestari Makmur, whose core activities include the development of industrial plant forest and rubber tapping.

The conglomerate said on Wednesday its indirect unit PT Minamas Gemilang had signed a conditional share sale and purchase agreement to buy 3,800 shares of Indo Sukses or a 95% stake for US$4.35 million.

Under the agreement, Minamas would buy 3,500 shares of Indo Sukses from SLT Capital Pte Ltd and 300 shares from PT Entete Mining

“Indo Sukses is in the process of obtaining the timber forest product exploitation business licence from the Ministry of Forestry over approximately 10,000 hectares of concession area on the industrial plant area for rubber forest located in East Belitung Regency, Bangka Belitung Province, Indonesia,” it said.

Sime Darby also said Indo Sukses had obtained the second instruction letter from the Ministry of Forestry for the preparation of the working area map.

It added the issuance of the business llicense was pending review of the map by the Directorate General of Forestry Products Development.



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Hibiscus shares, warrants surge, face query from Bursa Securities

KUALA LUMPUR (Jan 25): The securities of Hibiscus Petroleum Bhd surged in active trade in late afternoon on Wednesday, prompting a query from Bursa Malaysia Securities.

At 4.24pm, the shares were up 36 sen to Rm1.56 while the warrants jumped 17.5 sen to 88 sen with 149 million units transacted in the absence of strong positive newsflow.

The spike in price and volume prompted Bursa Securities to issue an unusual market activity (UMA) query on the trading of the company’s securities.

The most recent positive newsflow was in October 2011 when Hibiscus said it would make its first acquisition since listing on July 25 as a special-purpose acquisition company (SPAC) by proposing to acquire 35% of Lime Petroleum Ltd, which owns three exploration concessions in the Middle East for US$55 million (RM172.2 million) in cash.



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KLCI starts year of the Dragon in the red as banks, blue chips weigh

KUALA LUMPUR (Jan 25): The FBM KLCI reversed its earlier gains and closed lower on its first trading day of the Lunar year of the Dragon, weighed by losses at key blue chips including banking and Petronas-linked stocks.

The FBM KLCI shed 2.90 points to 1,519.76, as some investors are still on extended post-Chinese New Year holidays.

Gainers led losers by 389 to 315, while 296 counters traded unchanged. Volume was 1.34 billion shares valued at RM1.54 billion.

At the regional markets, Japan’s Nikkei 225 was up 1.12% to 8,883.69, Australia’s S&P/ASX 200 Index rose 1% to 4,329.10, South Korea’s Kospi added 0.12% to 1,952.23 and Singapore’s Straits Times Index rose 1.48% to 2,891.64.

The China, Hong Kong and Taiwan markets remained closed for the Chinese New Year holidays.

Meanwhile, European shares were lower in early trade on Wednesday, weighed by the tech sector after a sharp post-results decline for Ericsson, according to Reuters.

The mobile telecoms network gear maker sank 14% after its fourth quarter earnings came in well below forecast. That compared with more bullish results from U.S. peer Apple overnight, it said.

On Bursa Malaysia, CIMB led the losses at banking stocks and fell 12 sen to RM6.99; Maybank and Affin lost six sen each to RM8.20 and RM3.16, AMMB five sen to RM5.79, while AFG and RHB Capital shed two sen each to RM3.87 and RM7.27.

Petronas Dagangan fell 10 sen to RM17.50, Petronas Chemicals down eight sen to RM6.60 and Petronas Gas shed four sen to RM15.20.

Other decliners included Tahps, Dutch Lady, Harvest Court, LPI Capital, Toyo Ink and KESM.

Among the gainers, BAT rose 50 sen to RM50, KLK 42 sen to RM25.90, MPI 39 sen to RM3.67, Tradewinds PLANTATION []s and Malayan Flour Mills 27 sen each to RM4.53 and RM8.07, BHIC 23 sen to RM3.80, Fima Corp 21 sen to RM6.25, Hong Leong Bank 20 sen to RM11.30 and DKSH 18 sen to RM2.16.

Hibiscus, which was the most actively trade counter, was issued with an unusual market activity query.

Hibiscus rose 32 sen to RM1.52 with 53.5 million shares done while its warrants added 14.5 sen to 85 sen with 176.11 million units traded.

Other actives included DBE Gurney, JCY, Hubline, Maybulk, Compugates and CIMB.



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Genting slips on profit taking, sells Indonesian O&G biz for US$39m

KUALA LUMPUR (Jan 25): GENTING BHD []’s share price slipped on Wednesday as investors decided to take some profit and also on news that it sold its oil and gas business in Indonesia.

At 3.24pm, Genting was down eight sen to RM10.90. There were 1.46 million shares done at prices ranging from RM10.78 to RM11.02.

Genting announced to Bursa Malaysia on Wednesday it was exiting its Natuna oil and gas (O&G) business in Indonesia after its 95% subsidiary Swallow Creek Ltd sold all its interests to Australia’s AWE Ltd for US$39 million cash.

Swallow Creek was disposing of its 100% stake each in Genting Oil Natuna Pte Ltd (GONPL) and Sanyen Oil & Gas Pte Ltd (SOGPL) for US$39 million.

Under the deal, Swallow Creek would also assign loans and receivables owed to the company by GONPL and SOGPL of US$100 million to AWE – which is an Australian oil and gas exploration and production company.

RHB Research Institute said the sale was positive for Genting. It added that Genting had been looking to sell its O&G production sharing contracts for a while, as developing the oil fields would require a lot of capex. AWE said that to develop the projects would require an investment of A$600 million (RM1.9 billion).

“As we had not projected any earnings from the O&G division, given that all the projects are still in exploration stage, there is no impact on earnings. However, Genting is likely to register an EI gain from the sale.

“Our SOP-based fair value is maintained at RM12.05, which has taken into account the recently-raised fair value for Genting PLANTATION []s. We continue to rate Genting an Outperform, being one of cheapest gaming stocks in the region which gives investors exposure to both the stable Malaysian and flourishing Singaporean markets,” said RHB Research.



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SP Setia up on revised offer but road bumps ahead in property mkt

KUALA LUMPUR (Jan 25): Shares of S P Setia Bhd rose on Wednesday after the board received a revised offer, raising the price by five sen to RM3.95 per share.

At 3.06pm, S P Setia was up six sen to Rm3.94. There were 1.91 million shares done at prices ranging from RM3.93 to RM3.97.

Last Friday, Permodalan Nasional (PNB) and S P Setia’s group president and CEO Tan Sri Liew Kee Sin jointly agreed to raise the general offer (GO) price for SP Setia from RM3.90 a share and 91 sen a warrant to RM3.95 a share and 96 sen a warrant respectively.

UOB Kay Hian Malaysia Research said the upward revision of five sen “is minimal, but it implies a mild positive ending to the saga and that the relationship between PNB and S P Setia would still be positive”.

Liew and S P Setia would ink a management agreement where he would remain as group president and CEO of the company for three years following the close of the revised offer, in line with the market’s expectations.

"We understand Tan Sri Liew would not be selling his 8% stake but is eligible for a put option at RM3.95 spread over three years,” it said.

UOB Kay Hian Research said while “we do not doubt the strong capabilities of S P Setia’s management, but we are concerned that the property market would be rough going forward”.

The research house said S P Setia’s key products were skewed towards the mid-range to high-end segment.

The research house said it was maintaining a Sell and target price of RM2.99 (pegged at a 30% discount to RNAV), premising on the past-peak property and investment cycle and also due to lingering external concerns.

“Since September 2011, S P Setia’s rich valuations at 22 times forward PE and 2.2 times P/B are supported by the takeover by PNB at RM3.90. Hence, we expect share price to retrace to a 30% discount to RNAV (mid-cycle valuation) once the takeover is finalised. Our target price implies 16.7 times FY13F PE, on a par with its historical mean of 16 times,” it said.



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Genting Bhd’s exits Natuna O&G biz for US$39m cash

KUALA LUMPUR (Jan 25): GENTING BHD [] is exiting its Natuna oil and gas (O&G) business in Indonesia after its 95% subsidiary Swallow Creek Ltd sold all its interests to Australia’s AWE Ltd for US$39 million cash.

Genting said on Wednesday Swallow Creek was disposing of its 100% stake each in Genting Oil Natuna Pte Ltd (GONPL) and Sanyen Oil & Gas Pte Ltd (SOGPL) for US$39 million.

Under the deal, Swallow Creek would also assign loans and receivables owed to the company by GONPL and SOGPL of US$100 million to AWE – which is an Australian oil and gas exploration and production company.

GONPL and SOGPL are both Singapore incorporated companies principally involved in O&G exploration and development in the Natuna Sea, Indonesia.

GONPL and SOGPL own a 100% participating interest in the Northwest Natuna Production Sharing Contract and Anambas Production Sharing Contract in Indonesia respectively.

Genting said it expected the disposal to be completed in February 2012.



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Trading in Golden Frontier shares suspended

KUALA LUMPUR (Jan 25): Trading in the shares of GOLDEN FRONTIER BHD [] has been suspended from 2.30pm on Wednesday until 5pm on Friday, Jan 27.

A Bursa Malaysia circular said the suspension was for an announcement.

Its share price rose two sen to RM1.21 at midday. There were 61,000 shares done at prices ranging from RM1.19 to RM1.30.



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KLCI slips at mid-day break, blue chips weigh

KUALA LUMPUR (Jan 25): The FBM KLCI slipped into negative territory at the mid-day break on Wednesday, weighed by losses at key blue chips including CIMB, Genting and Petronas-linked stocks.

At 12.30pm, the FBM KLCI fell 2.37 points to 1,520.29.

Losers overtook gainers by 305 to 270, while 243 counters traded unchanged. Volume was 502.97 million shares valued at RM566.35 million.

The ringgit strengthened 0.23% to 3.0798 versus the US dollar; crude palm oil futures for the third month delivery rose RM12 per tonne to RM3,177, crude oil gained 21 cents per barrel to US$99.16 while gold rose US$1 an ounce to US$1,666.68.

At the regional markets, Japan’s Nikkei 225 rose 1.21% to 8,891. 89, Australia’s S&P/ASX 200 Index gained 0.88% to 4,261.40, Singapore’s Straits Times Index added 0.83% to 2,872.90 and South Korea’s Kospi was up 0.33% to 1,956.41.

The China, Hong Kong and Taiwan markets remained closed for the Chinese New Year holidays.

On Bursa Malaysia, Nestle fell 30 sen to RM55.70, Dutch Lady 20 sen to RM25.78, CIMB 12 sen to RM6.99, Golsta and KESM 10 sen each to 39 sen and RM2, Affin nine sen to RM3.13, Petronas Chemicals and Genting eight sen each to RM6.60 and RM10.90, Petronas Gas four sen to RM15.20 while Genting PLANTATION []s was down three sen RM9.25.

DBE Gurney was the most actively traded counter with 46.72 million shares done. The stock was unchanged at 12.5 sen.

Other actives included JCY, Compugates, MBSB, Maybulk, CIMB, Unisem and DRB-Hicom.

Among the gainers, BAT was up 46 sen to RM49.96, MPI 35 sen to RM3.63, Malayan Flour Mills 24 sen to RM8.04, Hong Leong Bank and BHIC 20 sen each to RM11.30 and RM3.77, Tradewinds Plantations and Fima Corp 17 sen each to RM4.43 and RM6.21, KLK 16 sen to RM25.64 while NSOP and Batu Kawan added 14 sen each to RM5.84 and RM18.84.



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Semicon, HDD-related counters advance on positive outlook for sector

KUALA LUMPUR (Jan 25): Shares of semiconductor and hard disk drive-related counters advanced on Wednesday as investors appeared confident of a more positive outlook for the semiconductor sector.

At 12 noon, MALAYSIAN PACIFIC INDUSTRIES [] jumped 31 sen to RM3.59, UNISEM (M) BHD [] gained nine sen to RM1.44, JCY International added five sen to RM1.19 while Eng Teknologi rose three sen to RM1.73.

RHB Research Institute last week upgraded Unisem and MPI to market perform from underperform following the upbeat outlook from major players about the semiconductor industry.

It raised the fair value (FV) for Unisem to RM1.22, MPI’s FV to RM2.79 while Notion VTec’s FV was raised to RM1.69 (underperform outlook unchanged).

RHB Research said US based IC design company Linear TECHNOLOGY [] gave an upbeat outlook for the industry.

This would be the third positive guidance after Broadcom and ChipMOS, and indicates a more positive tone for the industry after a parade of negative guidance last month.

“We have already factored in a weak 1Q12 for local packaging players, as there is still lack of order visibility, but we believe the industry may be on track for some recovery in 2Q12, and stronger recovery in 2H12.

“We believe the demand weakness for chips has already been priced in. Thus, we are raising our benchmark forward target P/BV from 0.6 times to 0.8 times for the semiconductor players. We upgrade Unisem and MPI to Market Perform (from underperform),” said RHB Research.



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Scomi advances after Brazil monorail contract finalised

KUALA LUMPUR (Jan 25): SCOMI ENGINEERING BHD [] shares rose on Wednesday after its consortium partners officially sealed the contract with Brazil’s Amazonas state for the RM2.56 billion monorail system.

At 11.10am, Scomi Engineering was up two sen to 62 sen with 439,000 shares done while SCOMI GROUP BHD [] added half a sen to 28.5 sen with 884,500 shares traded.

The Manaus monorail system will include 20 km of monorail line from Largo da Matriz to Jorge Teixeira, nine stations and 10 train sets of six cars each.

The total award is valued at Brazilian Real 1.46 billion (RM2.56 billion) of which Scomi Engineering’s share is Real 339.9 million (RM597.2 million).

The project is expected to be completed in 40 months from the date of the signing of the contract.



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Public Bank shares up after Maybank IB raises target price

KUALA LUMPUR (Jan 25): PUBLIC BANK BHD [] shares advanced on Wednesday after Maybank Investment Bank Bhd Research maintained its Buy call and raised its target price for the stock to RM14.60 from RM13.50 previously.

At 9.31am, Public Bank added eight sen to RM13.38 with 126,300.

The research house said Public Bank would kick off the reporting season for the banks with the release of its 4Q11 results by month end.

“Our full-year net profit estimate stands at RM3.37 billion, just slightly behind (- 1.8%) consensus’ RM3.43 billion.

“This implies a 4Q net profit of RM761 million, down 10% year-on-year, -15% quarter-on-quarter, premised largely on NIM compression and lower q-o-q non-interest income,” it said.

The research house however said the bank had thus far succeeded in surprising on the upside despite repeatedly cautioning of a 10-15 basis points compression in NIM in 2011.

“We would not be too surprised if management pulls it off again, which could result in earnings surprising on the upside

“We maintain our Buy call for exposure to Public Bank’s impeccable fundamentals while a net yield of 4% provides support to share price,” it said.



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DBE Gurney continues active streak, up in early trade

KUALA LUMPUR (Jan 25): DBE Gurney Resources Bhd continued to be actively traded on Wednesday after the company last week had confirmed that it was in talks with a shareholder of CI Holding Bhd which includes a private placement exercise.

At 9.15am, DBE Gurney was the most actively traded counter with 11.3 million shares done. It rose half a sen to 13 sen.

Meanwhile, its warrants traded unchanged at 7 sen with 2.51 million units done.

The poultry-based company, in its reply to a Bursa Malaysia Securities query on Thursday, said it had plans for a private placement to raise funds for its working capital requirement.

However, DBE said the talks with the CI Holdings shareholders was “at preliminary stage”.

“As such, the pricing for the proposed private placement exercise have not been finalised yet,” it said.



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FBM KLCI edges up in early trade

KUALA LUMPUR (Jan 25): The FBM KLCI edged up marginally early on in its first trading day of the lunar year of the Dragon, in line with some of the regional markets.

At 9.05am, the FBM KLCI was up 1.02 points to 1,523.68.

Gainers led losers by 117 to 48 while 83 counters traded unchanged. Volume was 43.12 million shares valued at RM32.23 million.

Among the early gainers on Bursa Malaysia were Batu Kawan, PPB, Malayan Flour Mills, Petronas Gas, Lafarge Malayan Cement, Hartalega, MPI, Can-One, S P Setia and IJM Corp.



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RHB Research maintains Faber fair value of RM1.53

KUALA LUMPUR (Jan 25): RHB Research Institute is maintaining its earnings forecasts and sum-of-parts fair value of RM1.53 a share for FABER GROUP BHD [] pending the outcome of the court cases.

It said on Wednesday that in the last two months, Faber was hit by a string of lawsuits relating to earlier jobs in UAE.

“In the event of an unfavourable court decision, we believe Faber could face contingent liabilities of RM24.4m if it is obligated to partially bear half of Propel’s additional costs.

“Nevertheless, all three lawsuits are still at a preliminary stage and due to the lack of visibility on the outcome of the court cases, we are giving Faber the benefit of a doubt that the earlier provision would be sufficient to cover the final outstanding claims from the lawsuits,” it said.

RHB Research said there also appears to be no good news yet on the government concession renewal.

“Maintain earnings forecasts and SOP fair value of RM1.53 a share pending the outcome of the court cases,” it said.



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OSK Research: KHSB price target 73 sen

KUALA LUMPUR (Jan 25): OSK Retail Research said KUMPULAN HARTANAH SELANGOR BHD []’s(KHSB) share price may trade higher if it closes above the two-day high of 46 sen.

It said on Wednesday the stock has been trading lower since the failed test at 50 sen.

“Nonetheless, due to the spike up in early Jan, there is possibility of upward continuation and in our previous report; we highlighted the possibility of finding support at 40 sen or 36.5 sen, which is also Fibonacci retracement of the November 2011 to January 2012 rally,” it said.

OSK Research said the higher close last Friday with the formation of the “Bullish Engulfing” candle could see the stock making bottom earlier than anticipated at last week’s low of 43 sen.

OSK Research said a “Bullish Engulfing” candle usually occurs at market lows. The upward bias was still not confirmed as it requires a close above the two-day high of 46 sen, it said.

“Thus, a position can be initiated when this happens, with a stop loss on a close below 43 sen. The price target is 73 sen, a measured move based on the Nov-Jan rally, provided that the stock can close above the recent high of 55 sen.

“Otherwise, failure to break above the two-day high, which is followed by a close below 43 sen, should see the continuation of a correction. Again, support is expected at 40 sen and 36 sen,” it said.



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Maybank IB ups target price for CapitaMalls to RM1.37

KUALA LUMPUR (Jan 25): Maybank Investment Bank Bhd Research has maintained its Hold call on CapitaMalls Malaysia Trust (CMMT) and raised its target price to RM1.37 from RM1.34.

In a note Wednesday, Maybank IB Research said CMMT’s 2011 realised net profit of RM110.9 million came in as expected, adding that 2011 dividend per unit (DPU) of 7.9sen was also in line.

“CMMT has grown its asset size by 31% to RM2.8 billion since its listing in July 2010 with the Gurney Plaza Extension and East Coast Mall (ECM) acquisitions.

“Potential earnings catalysts could come from the reconfiguration of outdoor car park lots at ECM into retail spaces. Hold,” it said.



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OSK Research: Flonic may trade higher, price target 19 sen

KUALA LUMPUR (Jan 25): OSK Retail Research said Flonics’s share may trade higher after the firm close last Friday.

It said on Wednesday that after it highlighted the stock’s weakness in mid-December, the stock has declined sharply. It even broke below the 17 sen support level, which reduces the possibility of upward continuation.

OSK Research said nonetheless, Flonic found support at 11 sen, at the low of August and October 2011.

“After consolidating in a tight sideways range for two weeks, the strong “White” candle move last Friday likely signals the start of a rebound, with the high buying volume lending credence to the move,” it said.

The research house said traders should look for it to trade higher and a position can be taken at the current level, or if possible, on pullback towards the stop loss at 11 sen.

“Given the low possibility of upward continuation, the price target is 19 sen, the low of mid-November, which represents a 38% regain on the November-January decline,” it said.

OSK Research said this was provided that the stock can break above the 17 sen resistance level, which was the high of July and September 2011.

“The trade will not pan out on a close below 11 sen, and the stock should continue its downward move instead,” it said.



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OSK Research eyes initial upside target for iDimension at 31 sen

KUALA LUMPUR (Jan 25): OSK Retail Research is eyeing 31 sen as the initial upside target for iDimension, a break above which might see the price testing the 34.5 sen level.

It said on Wednesday that its cut-loss level was pegged at below 28 sen.

OSK Research said prior to last Friday, iDimension was consolidating the strong rebound recorded on Jan 5, 2012.

After consolidating its gains for 10 trading days, the stock finally cracked above the 26 sen to 28 sen consolidation phase last Friday in a breakout that was accompanied by strong volume.

“The price action basically suggests that iDimension’s consolidation phase has come to an end and that its share price should resume on the rebound that started since December last year.

“Hence, we advise traders to accumulate the shares at the current level. We are eyeing 31 sen as the initial upside target, a break above which might see the price testing the 34.5 sen level. Our cut-loss level is pegged at below 28 sen,” it said.



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