Thursday 8 March 2012

Malaysia Airlines unveils new look A380-800 aircraft

SUBANG (March 8): Malaysia Airlines (MAS) unveiled the new look Airbus A380-800, the carrier's flagship aircraft, which it will take delivery in June.

Unlike the previous old blue and red stripes, the body paint of the double-deck A380 aircraft will now have three blue colour variant stripes, with intermittent silver lining in the mid-section of the white body.

The national airline's iconic Kelantan "wau" or kite logo on the tail fin is retained but in blue, and carries the "Malaysia Airlines" wordings on the sides of the plane.

However, the new look would not affect the existing fleet, unless decided otherwise by the MAS management, said airline officials during a news briefing on Thursday.

They said MAS would use the new aircraft for commercial flights on July 1 beginning with the thrice weekly Kuala Lumpur-London sector.

The second A380 will be introduced on this route from end-August to offer double daily operations while the third will be used for the Kuala Lumpur-Sydney flights.

Meanwhile, Malaysia Airlines' Group Chief Executive Officer Ahmad Jauhari Yahya said the airline was the first to introduce the A380 into service "using a uniquely refreshed look and feel, instead of the regular corporate identity", to showcase its latest premium offering in products and services.

"This will be our flagship aircraft to launch our exciting new level of comfort, luxury and convenience in long-haul travel," he said in a statement.

Malaysia Airlines, which ordered six of the A380s, is the eighth carrier in the world to get the aircraft after a long wait.

The A380 has a capacity of 494 seats in a three-class configuration comprising eight first-class seats and 350 economy-class seats on the main deck, together with 66 business-class seats and 70 economy class seats on the upper deck.

The aircraft will be operated by an 18-member cabin crew.

Many of the facilities on board, such as in-flight entertainment, will be upgraded with more movies on demand while more songs and television channels would be added.

Luxurious seat pitch, full flat bed seats, USB port and satellite telephone facility and in-seat laptop charging facilities would also be fitted in the A380.

Passengers too will be treated to a fine selection of Malaysian and international cuisines with lighter and healthier-concept meals.

For the first time, the "Chef-on-Call" facility, currently available to first class passengers, would extended to business class passengers onboard the A380.

"This is the identity that will move us from traditional classic to premium contemporary in our efforts to position Malaysia Airlines as a preferred premium carrier," added Ahmad Jauhari. -- Bernama



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Perodua, Petronas in RM225m lubricant deal

KUALA LUMPUR (March 8): Perodua and PETRONAS DAGANGAN BHD [] have signed a RM225 million deal to supply the former with lubricant oil over the next five years, Perodua managing director Datuk Aminar Rashid Salleh said.

He said the contract, dubbed "Perodua Genuine Oil", would see the second national car maker using RM45 million worth of "Petronas SL/SM" grade oil at all its service outlets nationwide a year for five years with immediate effect.

The deal emphasised Perodua's confidence in the quality and reliability of Petronas Dagangan's services, he said.

"Over the past 30 years, Petronas Dagangan has grown to become Malaysia's second largest lubricant company in a very competitive market.

"We aim to be the number one in Malaysia by 2015 through effective marketing initiatives, backed by our technological expertise and strong support from our strategic global partnerships," he said.

He said the collaboration was certainly a step forward to reinforce Petronas Dagangan's position as the "Brand of 1st Choice".

Both Perodua and Petronas Dagangan have a long-standing business partnership since 2003. -- Bernama



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Pintaras Jaya lands RM34m property project

KUALA LUMPUR (March 8): PINTARAS JAYA BHD [] has received a letter of award from Martego Sdn. Bhd for a proposed condominium project at Cangkat Perak in Kuala Lumpur.

“The works are to commence on March 12, 2012 with a completion period of 24 months. The contract is valued at RM34.38 million,” it said in a statement to Bursa Malaysia on Thursday.

The contract would involve earthworks, piling and sub-structure works and Pintaras Jaya expected it contribute to its future earnings.



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Sumatec inks joint investment agreement for Kazakh oil and gas field

KUALA LUMPUR (March 8): SUMATEC RESOURCES BHD [] had sealed a joint investment agreement to extract hydrocarbon in the Rakushechnoye oil and gas field (Shelly oil field) in Kazakhstan.

It said on Thursday the other parties which had signed the agreement were Markmore Energy (Labuan) Ltd and CaspiOilGas LLP (COG).

The scope of work for Sumatec would all the operations related to the production of hydrocarbon from the Shelly oil field for and on behalf of COG.

It was also tasked to complete all operations to develop the Shelly Oil Field within the period from the date of the agreement up to Aug 25, 2025.

Under the agreement, Sumatec would pay MELL a non-recoverable signature bonus of US$10 million by April 30, 2012 or any such time as may be mutually agreed by the parties.

Sumatec would also pay to MELL a non recoverable costs reimbursement of US$85 million.

It would also have to place with COG a refundable performance deposit of US$40 million for the due and satisfactory performance of the petroleum operations.

It would also have to pay oil royalty to COG at US$5 per barrel of the crude oil production and shall be offset against the performance deposit. The royalty for gas/natural Gas shall be mutually determined by the parties as soon as it becomes practicable.

As part of the agreement, MELL would provide Sumatec an advance for capital cost up to US$60 million to develop the Shelly oil field.

The distribution of profit between COG and Sumatec would be when the net production reaching a threshold of two million barrels within two years from the payment date.

Under the agreement, Sumatec would be entitled to 100% of the profit for the first and second year and by the third year, it would be on a 50:50 basis.

“The company will fund the payments required under the JIA and working capital for the development of the Shelly oil field from the proceeds of the fund raising exercise envisaged under the proposed regularisation plan,” it said.



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Encorp unit to issue RM1.58 bn Islamic bonds

KUALA LUMPUR (March 8) : Builder ENCORP BHD [] plans to issue up to RM1.58 billion worth of Islamic bonds to refinance the builder and property developer’s existing debt obligations.

In a statement to Bursa Malaysia on Thursday, Encorp said the exercise will be undertaken via indirect unit Encorp Systembilt Sdn Bhd (ESSB)

“The proposed ESSB Sukuk Murabahah issue will be issued in one lump sum and in tranches with tenures of up to 16 years from the issuance date. The profit rates for each tranche of the proposed ESSB sukuk Murabahah issue shall be determined prior to the issuance,” Encorp said.

Encorp said the Syariah-compliant instrument will not be listed on any stock exchange.

ESSB had in 2000, 2002 and 2004 issued a collective RM2.75 billion worth of Islamic bonds to part finance the development of 10,000 units of teachers’ quarters in the Malaysia. This follows a privatisation agreement between ESSB and the government in February 1998.



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KLCI lags key regional markets’ recovery

KUALA LUMPUR (March 8): Key regional markets racked up gains of up to more than 2% on Thursday, as investors’ sentiment was boosted by hopes that Greece could avert a default and positive news on the US economy.

However, the FBM KLCI lagged the regional markets and managed to close up only 3.53 points or 0.22% to 1,578.36, after falling 15.08 points – the worst loss for this year – on Wednesday. Turnover was 1.77 billion shares valued at RM1.76 billion. Advancing counters beat decliners 415 to 336 while 339 stocks were unchanged.

Reuters reported that in Europe, indications are major banks and pension funds are likely to take part in the Greek deal, easing concerns about a chaotic default. But some hedge funds and Greek pension funds are still holding out, injecting uncertainty before the deadline expires later in the day.

Greece aims to persuade 90% of creditors to take part in the bond swap. With two-thirds acceptance or more it may be able to trigger collective action clauses (CAC) to force bondholders to accept losses, an event that would have knock-on effects for banks but has largely been priced-in.

Among the key regional markets, the Nikkei 225 rose 2.01% to 9,768.96, Hang Seng Index 1.32% to 20,900.70, Shanghai Composite Index 1.06% to 2,420.28, Taiwan’s Taiex 1.03% to 7,984.56, South Korea’s Kospi 0.94% to 2,000.76 and Singapore’s Straits Times Index 1.96% to 2,970.38.

At Bursa Malaysia, penny stocks fell in active trade as traders decided to stay on the sidelines. Recent leaders Naim Indah Corp and HWGB fell in active trade while recent IPO China Stationery Ltd continued to lose ground.

Naim Indah fell 2.5 sen to 63 sen with 360 million shares done. clarified on Thursday there was no proposal from new major shareholder Datuk Raymond Chan Boon Siew to inject new development projects into the company.

CSL lost 10 sen to RM1 on continued selling as the allure of the second listing on Bursa Malaysia, which would have brought Chnia stocks back into focus, seemed to have faded. Its IPO price was 95 sen when it was listed on Feb 24 and it rose to a high of RM1.39 on Feb 28.

Mild buying of blue chips saw Tenaga adding seven sen to RM6.26, CIMB five sen to RM7.36 and Sime four sen to RM9.84. Their gains pushed the KLCI up by 2.34 points. Genting added six sen to RM10.80 and Genting Malaysia three sen to RM3.86.

PLANTATION []s rose on firmer crude palm oil prices, which rose RM34 to RM3,293, the highest since Feb 28. PPB added 16 sen to RM16.90, Sungai Bagan 12 sen to RM3, Far East and United Plantations 10 sen each to RM7.40 and RM24.50. However, Batu Kawan fell six sen to RM18.64.



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Market Commentary

The FBM KLCI index gained 3.53 points or 0.22% on Thursday. The Finance Index increased 0.19% to 14116.46 points, the Properties Index up 0.06% to 1051.2 points and the Plantation Index rose 0.15% to 8612.94 points. The market traded within a range of 4.24 points between an intra-day high of 1580.41 and a low of 1576.17 during the session.

Actively traded stocks include NICORP, HWGB, SUMATEC, CSL, SUMATEC-WA, RA, GOCEAN, HWGB-WB, AMEDIA and WINSUN. Trading volume increased to 1769.37 mil shares worth RM1763.28 mil as compared to Wednesday’s 1742.64 mil shares worth RM2030.26 mil.

Leading Movers were TENAGA (+7 sen to RM6.26), CIMB (+5 sen to RM7.36), SIME (+4 sen to RM9.84), GENTING (+6 sen to RM10.80) and AXIATA (+2 sen to RM5.14). Lagging Movers were DIGI (-2 sen to RM4.05), AMMB (-5 sen to RM6.17), PETDAG (-3 sen to RM18.36), PETCHEM (-1 sen to RM6.83) and HLFG (-10 sen to RM12.00). Market breadth was positive with 415 gainers as compared to 336 losers. -- JF Apex Securities Bhd



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Aeon Co. Malaysia plans RM350m capex this year

KUALA LUMPUR (March 8): AEON CO. (M) BHD [] has allocated RM350 as capital expenditure for this year which includes opening a department store in Sri Manjung in Perak by year-end.

The company is also undertaking a RM10 million rebranding exercise to change the name of its department stores from Jusco to Aeon.

To recap, in 1984, Aeon Japan Ltd of Japan was invited by the Malaysia government to modernise the retail industry in Malaysia. Since then, it had been operating the Jusco stores under its subsidiary company, Aeon Co. (M) Bhd.

But with the group moving towards globalisation, it is taking on the global brand name of Aeon for all its stores and shopping centres.



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Top Glove eyes acquisition this year

KUALA LUMPUR (March 8): Top Glove Corp Bhd, the world's largest rubber glove maker by volume, aims to buy at least one other glove producer this year as part of its strategy to gain market share and drive earnings, said its chairman and founder.

The Malaysian company is in talks with a number of rubber glove makers, chairman Lim Wee-Chai told Reuters in an interview.

"We are talking to companies mainly from Malaysia. When the pricing and everything is right, we can see something by the end of this year," he said at the company's headquarter in Klang just outside Kuala Lumpur.

Lim said Top Glove is well placed to make acquisitions on the back of its strong net cash position. The company held some 300 million Malaysian ringgit ($99.14 million) net cash as of Feb. 29, 2012, 16.7 percent higher than August a year earlier.

The global rubber glove industry, worth some $4.9 billion, has consolidated over the past decades, from 65 industry players controlling 45 percent of world market share in 2000 to 40 players commanding some 63 percent in 2012, according to the Malaysian Rubber Export Promotion Council.

Last year, private equity firm Navis Capital offered to buy Malaysian rubber glove maker LATEXX PARTNERS BHD [] for 852 million ringgit but the deal fell through due to disagreement on valuation.

YTY Group, the world's second-largest nitrile glove maker, followed up with a proposed 1.25 billion ringgit merger with Latexx but to no avail.

Top Glove is also working on deals to acquire rubber land in Malaysia, Indonesia and Cambodia as it tries to hedge against fluctuations in natural rubber prices, said Lim.

Profit margins for the industry declined in 2011 partly due to higher prices of latex, which makes up some 60 percent of rubber glove makers' production costs.

The latex price peaked at a record 11 ringgit per kg in early mid-February 2011. It plunged briefly in March last year after Japan's tsunami disaster, recovered, and then went on a gradual decline due to the dim global economic outlook.

The price is currently around seven to eight ringgit per kg now, where Lim expects it to stay this year.

"We foresee the global economic slowdown will ease commodity prices, but the Thai government's price support policy may boost prices in the short term," he said.

Top Glove plans to invest about 100 million ringgit this year to increase its production lines and factories, Lim said.

The company operates 20 manufacturing plants based in Malaysia, Thailand and China with a production capacity of 40.05 billion gloves annually. - Reuters



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Moody’s downgrades MISC’s ratings, outlook negative

KUALA LUMPUR (March 8): Moody's Investors Service downgraded the senior unsecured issuer and debt ratings of MISC BHD [] to Baa2 from Baa1. The outlook on the ratings remains negative.

It said on Thursday the rating action reflects a weaker than expected performance for the nine months ended December 2011, higher-than-tolerance leverage, and Moody's view that the company's cash flows are unlikely to materially improve over next 12 to 18 months given the weak industry outlook.

“The outlook on the ratings remains negative, reflecting Moody's concerns about a substantial funding gap for the year 2012, which if funded by debt may result in a further increase in leverage,” it said.

A Moody's vice president and senior analyst Vikas Halan said MISC’s operating performance was particularly weak in its petroleum and chemical shipping segments, both of which reported operating losses higher than expectations.

“Overcapacity in both petroleum and chemical segments has resulted in lower freight rates in the spot markets. This, combined with high fuel costs, have resulted in lower margins for the period. We do not expect the situation to improve materially in 2012,” he said.

Halan added MISC’s operating lease adjusted debt/ annualised EBITDA was at 7.8 times as of Dec 31, 2011, which was well beyond the ratings agency’s tolerance level for its ratings.

“The exit the from liner business announced in November 2011 will cut losses in that segment and will improve overall EBITDA. However, the company's committed capex of nearly a US$1.0 billion in 2012 will limit its ability to improve its credit metrics,” he said.

Moody’s said MISC's liquidity was weak. Although it has large cash balance of RM4.2 billion but it also has committed capital expenditure of RM3.2 billion and over RM5.9 billion of debt maturing in the current year.

Moody's expects MISC to continue to have access to external funding given its past track record and both direct and indirect support from Petrliam Nasional Bhd.

The ratings agency also said if there was a protracted disruption in company's ability to fund itself, albeit unlikely, would result in further pressure on the ratings.

MISC's Baa2 ratings reflects both the strong support provided by its parent, Petronas (A1/Stable) and its standalone rating of now Ba2, which was lowered from Ba1.

The stand-alone rating continues to reflect: (1) the company's ability to secure vessel contracts by aligning its business development with its parent Petronas; (2) the diversified nature of its fleet and its leading market position in LNG transportation, which provides stable income; and (3) the term contracts that provide nearly half of its revenues from shipping segments and offers some protection against the cyclicality in freight rates.

However, these strengths are counter-balanced by: (1) excess global capacity in the liner, petroleum, and chemical transportation sectors, which could pressure the company's freight rates and profit margins; and (2) substantial capital expenditures requiring additional debt funding, which will result in higher debt leverage and negative cash flow in the short to medium term.



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Flash: Founders : Offer price for Eng Teknologi could be revised lower

KUALA LUMPUR (March 8): The founders and major shareholders of ENG TEKNOLOGI HOLDINGS BHD [] who are in the midst of privatising the hard disk drive component maker, say they are still in talks financiers on the funding dynamics for the acquisition, and that the outcome could result in a lower offer price for the proposed takeover.

In a statement to Bursa Malaysia on Thursday, Eng Teknologi said its founders Datuk Teh Yong Khoon and Low Yeow Siang via private vehicle TYK Capital Sdn Bhd, had indicated that should the funding arrangements with lenders be finalised, the terms “will very likely” include an adjustment to the original offer price of RM2.50 a share. According to TYK, the final offer price could be adjusted to a level not exceeding RM2 a share.

“The board has not deliberated on the letter from TYK Capital and wishes to caution shareholders that pending the satisfaction of all conditions precedent in the SBA (sale of business agreement), the proposed disposal cannot be completed.

“Shareholders should be fully aware of the risks and rewards of investing in Eng Teknologi shares, particularly in the light of the letter from TYK Capital,” Eng Teknologi said.

TYK had served a takeover notice in July 2011 to acquire the business, assets and liabilities of Eng Teknologi. Cash proceeds from the disposal of the company’s undertakings to its founders will be distributed to entitled shareholders of Eng Teknologi.

Eng Tek’s share price was at RM1.77 at midday on Thursday.



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Naim Indah: No plans by Chan to inject new projects

KUALA LUMPUR (March 8): NAIM INDAH CORPORATION BHD [], whose shares had seen active trade recently, clarified on Thursday there was no proposal from new major shareholder Datuk Raymond Chan Boon Siew to inject new development projects into the company.

It said on Thursday there were no new plans by Chan except for the heads of agreement signed with Generasi Cipta Sdn Bhd, which was announced on Feb 10.

A local vernacular newspaper said Chan was expected to bring in RM500 million of projects into Naim Indah.

The directors and major shareholder also said they were not aware of any reason for the sharp increase of Naim Indah share price on Wednesday except for the announcements regarding the heads of agreement between the company and Generasi Cipta on Feb 10 and March 7.

To recap, on Feb 8, Naim Indah announced six new shareholders including Chan Boon Siew.

Among the six individuals, Chan, a major shareholder and exective director of HARVEST COURT INDUSTRIES BHD [], will hold the largest stake of 12.11% or 85 million shares. Chan is also the managing director of Sagajuta (Sabah) Sdn Bhd, a property developer.



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Flash: MAHB to raise RM616m from private placement

KUALA LUMPUR (March 8) : Malaysia Airports Holdings Bhd (MAHB) has fixed the price of its recently announced private placement of up to110 million new shares at RM5.60. This translates into gross proceeds of RM616 million, MAHB told the stock exchange on Thursday.

Gross proceeds from the private placement will partly finance the additional capital expenditure for the enhancement work within the new low cost carrier terminal at Kuala Lumpur International Airport, MAHB said.

According to the airport operator, the RM5.60 issue price for the placement shares is an estimated 2.4% discount to to the five-day volume weighted average market price of MAHB shares up to Wednesday of RM5.738 and a discount of approximately 0.9% to the closing price of RM5.65 on that day.

MAHB share price ended the morning session at RM5.63.

MAHB said book-building for its private placement has been completed and had drawn interest from domestic and foreign institutional investors.

Maybank Investment Bank and JPMorgan Securities (Malaysia) Sdn Bhd acted as joint placement agents for the private placement.



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Tenaga, Sime power KLCI higher

KUALA LUMPUR (March 8): Key regional markets snapped out of their losing streak on Thursday, with all indices in positive territory including Bursa Malaysia’s FBM KLCI, as investors pinned their hopes on Greece avoiding a default and the promising jobs data from the US.

At 12.30pm, the FBM KLCI was up 3.28 points to 1,578.11, underpinned by gains in Tenaga and Sime Darby again. Turnover was 969.98 million shares valued at RM775.44 million. There were 333 gainers, 277 losers and 321 stocks unchanged.

The ringgit was firmer against the US dollar at 3.0157 vs 3.0292 overnight. Brent crude was steady above US$124 a barrel while US light crude added 18 cents to US$106.34.

The Nikkei 225 rose 1.4% to 9,709.68, Hang Seng Index 0.9% to 20,813.40, Shanghai Composite Index 1.04% to 2,419.68, and Singapore’s Straits Times Index 1.21% higher at 2,948.87.

Reuters reported Greece has set a Thursday 2000 GMT deadline for investors to sign up to a debt restructuring designed to trim 100 billion euros off the country's public debt.

News that Japan's economy shrank less than initially estimated in the fourth quarter, as companies ramped up spending, also supported oil prices. The revision to GDP showed a 0.2 percent contraction as companies look to an increase in demand due to reCONSTRUCTION [] of the country's tsunami-battered northeast coast.

In the United States, data showed an accelerated pace of job creation in the private sector in February, raising optimism about Friday's government employment report for that month. The private sector added 216,000 jobs last month, according to the ADP National Employment Report, topping economists' expectations for a gain of 208,000, and raising hopes the labour market recovery was moving at a faster clip.

At Bursa Malaysia, Nestle was the top gainer, up 24 sen to RM56.24, Carlsberg 10 sen to RM10.50 and Dutch Lady eight sen to RM29.98.

Crude palm oil futures rose RM19 to RM3,278 per tonne. Among PLANTATION []s, Sungei Bagan added 12 sen to RM3 and United Plantations eight sen to RM24.48.

The gains on the KLCI were driven by Tenaga and Sime Darby, which pushed the index up 0.896 of a point and 0.852 of a point respectively. Tenaga rose seven sen to RM6.26 and Sime six sen to RM9.86.

Among the banks, CIMB added four sen to RM7.35, Public Bank two sen to RM13.76 while GENTING BHD [] added eight sen to RM10.82 and Genting Malaysia three sen to RM3.86.

Naim Indah Corp was the most active again, up 4.5 sen to 70 sen to 252.37 million shares done and accounted for about one-quarter of the trading volume.

China Stationery Ltd lost six sen to RM1.04 in active trade. It had surged to a high of RM1.39 on Feb 28 after its listing on Feb 24 at an offer price of 95 sen.

Lysaght was the top loser, down 20 sen to RM2.29 while Berjaya Media shed 8.5 sen to 45.5 sen and HLFG eight sen to RM12.02.



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Hwang Investment Mgmt ties up with Nikko, eyes RM20b assets in 5 yrs

KUALA LUMPUR (March 8): Hwang Investment Management Bhd (HwangIM) plans to grow its asset under management (AUM) to RM20 billion in five years despite the uncertain global market and increasingly competitive local landscape.

HwangIM's chief executive officer Teng Chee Wai said on Thursday, the five-year target was to position the company as the leader in managing Asian assets in the local investment industry.

He said HwangIM was partnering Nikko Asset Management Co Ltd (Nikko AM) to achieve its five-year goal.

"Last year was a remarkable year for us. In a market where many were losing assets, we were the only one amongst the top five investment management companies that registered high double digit asset growth at 37%. We ended 2011 at the RM12-billion mark," said Teng.

"Our partnership with Nikko AM can help us to achieve this goal as we are now part of the largest Asia-based regional asset management company, a group that has over US$150 billion in asset size and a global network," added Teng.



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Packet One to expand into fiber-optic broadband network

KUALA LUMPUR (March 8): 4G broadband provider, Packet One Networks Sdn Bhd (P1) plans to expand into a fiber-optic broadband network.

Its chief executive officer Michael Lai said the company would also upgrade its existing broadband network to 4G TD-LTE (time division long-term evolution).

Unveiling its P1 2.0 Evolution plan on Thursday, Lai said the fiber-optic network would be launched in April while the TD-LTE upgrades would be done after 2012.

P1 is a subsidiary of GREEN PACKET BHD [] and has nearly 400,000 subscribers.



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KLCI stages slight rebound at mid-morning

KUALA LUMPUR (March 8): The FBM KLCI ticked upward at mid-morning on Thursday, in line with the gains at key regional markets following the firmer overnight close at Wall Street and European markets.

Asian shares and the euro recovered on Thursday on brightening prospects for Greece to secure a crucial bond swap to avoid a messsy default and U.S. data suggesting a recovery in the labour market ahead of key jobs figure, according to Reuters.

Greece's debt swap deal and Friday's U.S. nonfarm payrolls data are seen as a test case for gauging whether markets can build on the optimism of recent months and overcome patchy growth figures which have dented sentiment, it said.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Thursday said that despite the US market’s rebound last night, the local bourse could be in for a range-bound day.

“From the 1,310.53 low (Sept 2011), the market burst past its 1,530.73 resistance to stall just short of the 1,596.08 all-time high, at 1,594.72.

“Bearish divergence is ample and despite the DJIA’s overnight rebound, today’s minor rise could be a great opportunity to selli in the initial “Dead Cat BOUnce”, he said.

Lee said some of the trading stocks favoured by Maybank IB Research included BUMI Armada, Brahims, Dayang, JOHORe Tin, Telekom and Zelan.

On Bursa Malaysia, the FBM KLCI edged up 2.66 points to 1,577.49 at 10.30am, lifted by gains at select blue chips.

Gainers led losers by 166 to 270, while 271 counters traded unchanged. Volume was 480.79 million shares valued at RM338.90 million.

At the regional markets, Japan’s Nikkei rose1.06% to 89677.5, HONG KONG’s Hang Seng Index adde 0.47% to 20,725.00, the Shanghai Composite Index gained 0.61% to 2,409.44, Taiwan’s Taiex added 0.29% to 7,926.16, South Korea’s Kospi edged up 0.09% to 1,983.97 and Singapore’s Straits Times Index up 0.78% to 2,935.94.

Among the gainsrs, SPK added 11.5 sen tp 41.5 sen, Sungei Bagan up 11 sen to RM2.99, Carlsberg, Takaful and Petronas Gas up 10 sen each to RM10.50, RM2.28 and RM16.82 respectively, Sime Darby up nine sen to RM9.89, United PLANTATION []s, TONG Herr eight sen each to RM24.48 and RM2.44, while Orient rose seven sen to RM6.35.

Naim Indah CORP was the most actively traded counter with 131.1 milliion shares done. The stock fell one sen to 64.5 sen.

Other actives included HWGB shares and warrants, IRios Corp, Asia Media, Winsun, CSL< IFCA MSC and Gocean.

Among the decliners this morning, LYsaght fell 32 sen to RM2.08, HONG Leong Bank and KLK dow eight sen each to RM12.30 and RM23.20, Perduren 5.5 sen to 75 sen, Sunchirin, Merge, NOTion warrants, Tecnic and CBIP added four sen each to RM1.36, 23 sen, 42.5 sen, RM3.68 and RM2.43 respectively.



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OSK Research: Bumi Armada’s consolidation over, to trade higher

KUALA LUMPUR (March 8): OSK Retail Research said for Bumi Armada, the RM4.20 proved to be a hard level to break as three previous attempts since its IPO failed to crack this level convincingly.

“Nonetheless, there was an upward bias since September 2011 and the tough resistance level was finally broken yesterday. Thus, we can now expect the stock to trade higher,” it said on Thursday.

OSK Research said Bumi Armada’s two-month sideways consolidation is likely over after the stock closed above the resistance level of RM4.20 on Wednesday.



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Pantech buys UK-based Nautic Steel for RM45m

KUALA LUMPUR (March 8): PANTECH GROUP HOLDINGS BHD [], a pipes, fittings and flow controls solutions provider, has acquired the entire stake in UK-based Nautic Steels (Holdings) Ltd for GBP9.5 million or RM45.46 million.

In a statement to Bursa Malaysia on Thursday, Pantech said the acquisition will help the company expand its geographical presence and product range.

“The consideration will be satisfied through a combination of funds raised. This includes RM9.75 million from rights issues of ICULS (Irredeemable Convertible Unsecured Loan Stock), RM25 million from a term loan provided by a licensed bank in Malaysia and the balance consideration will be paid by internally generated funds, Pantech said.

Trading of Shares in Pantech has been suspended from 9am and will resume at 10am on Thursday in conjunction with the announcement of the exercise. The stock was last traded at 52.5 sen.

Barring any unforeseen circumstances, Pantech believes the acquisition is in line with the Group’s strategies to grow its core businesses. The company said the inclusion of Nautic into Pantech’s stable will help the acquirer expand its foothold as a major pipes, fittings and flow controls solutions providers.



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HDBSVR downgrades BIMB to Hold, TP remains at RM2.20

KUALA LUMPUR (March 8): Hwang DBS Vickers Research has downgraded BIMB HOLDINGS BHD [] to a Hold but maintains the target price at RM2.20.

It said on Thursday the RM2.20 was based on the Gordon Growth Model, assuming 12% ROE, 4% growth, 10.3% cost of equity.

“Share price has gained 15% YTD. Bank Islam assuming BIMB’s listing status could be positive as this would allow investors to have direct exposure to Bank Islam,” it said.

HDBSVR said currently, only 51% of Bank Islam’s earnings are consolidated into BIMB.

“There are talks that Bank Islam is seeking to buy an Indonesian bank, which could allow it to penetrate new markets. There are no details yet, but pricing and the resulting synergies would be crucial,” HDBSVR said.



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CIMB Research has technical buy on N2N Connect at 48 sen

KUALA LUMPUR (March 8): CIMB Equities Research has a technical buy on N2N Connect at 48 sen at which it is trading at a price-to-book value of 3.8 times.

It said on Thursday that N2N Connect broke out of its wedge pattern yesterday.

“We see this as a prelude to more upside ahead. If prices can continue to hold on above the resistance-turned-support trend line, there is a good chance that the candles may charge towards 50 sen and 55 sen next,” it said.

CIMB Research said the odds are favouring the bulls at the moment. MACD signal line is still rising while RSI is above the 50pts mark.

“Aggressive traders may start to nibble now. However, always place a stop at below the 43 sen to 41 sen levels,” it said.



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CIMB Research has technical sell on Hock Seng Lee at RM1.70

KUALA LUMPUR (March 8): CIMB Research has technical sell on Hock Seng Lee at RM1.70 at which it is trading at a price-to-book value of 2.3 times.

It said on Thursday that as long as prices stay below its previous high of RM1.75, there is a possibility that Hock Seng Lee might be forming a double top pattern.

“Hence, we advocate investors to adopt a sell into strength strategy here. Near term gains are likely capped at RM1.70-RM1.75.

CIMB Research said the technical landscape is deteriorating, suggesting that buying momentum is losing pace. MACD histogram bars have slipped into the negative territory while RSI has also hooked downward.

“There is a minor support at RM1.66. Once this level is violated, we expect the candles to tumble towards the neckline support (now at RM1.57). The following support levels are RM1.49 and RM1.35. Prices need to surpass the RM1.80 level to negate this bearish view,” it said.



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CIMB Research has technical sell on Cypark at RM1.84

KUALA LUMPUR (March 8): CIMB Equities Research has a technical sell on Cypark Resources at RM1.84 at which it is trading at a price-to-book value of 2.5 times.

It said on Thursday the countertrend rebound may have exhausted. Prices reached the 38.2% Fibonacci Retracement level and the bears have since weighed on the bulls.

“The triangle breakdown on Tuesday indicates that there is still room to the downside. Once the 200-day SMA (RM1.80) gives way, expect prices to fall towards RM1.70 and RM1.63,” it said.

CIMB Research said the MACD has staged a dead cross, pushing its histogram bars into the negative territory. RSI too is below the 50pts mark.

“Unload on strength looks like a good option here, especially near the RM1.90-RM1.98 resistance. Only a rise above RM2.00 would prompt us to review our call,” it said.



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HDBSVR expects market sentiment to perk up

KUALA LUMPUR (March 8): HwangDBS Vickers Research expects the key regional markets including Bursa Malaysia to perk up on Thursday following the firmer overnight close on Wall Street.

On Wall Street, stocks closed higher on Wednesday following better employment data in the U.S. and news that Greece’s debt-exchange deal with private bond holders is gathering pace. The key indices on Wall Street jumped between 0.6% and 0.9%.

“The positive vibes from Wall Street is expected to lift sentiment in Asia today after the broad sell-off yesterday. Back home, the key FBM KLCI could stage a technical rebound following a decline of 15.1-point or 1.0% since Tuesday. On the chart, the benchmark index may attempt to cross above the support-turned-resistance level of 1,580 ahead,” it said.

HDBSVR said that hoping to ride on a market recovery are beaten down shares like Sime Darby.

Together with other PLANTATION [] companies, they should benefit from a firm CPO price outlook, as forecasted by industry experts at the Palm & Lauric Oils Conference that ended yesterday.

Separately, OSK Property may attract interest after acquiring two pieces of land in Shah Alam for RM45 million while MALAYSIA SMELTING CORPORATION [] could be hit by news that Indonesia want to limit foreign ownership of mines in the country.



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Stocks to watch: Padini, Silver Bird, Pelikan, WinSun

KUALA LUMPUR (March 8): Malaysian stocks could be in for further profit taking on Thursday as the European debt crisis continues to take centre stage in global financial markets .

Key regional markets fell on Wednesday as investors were kept vigilant on the status of Greece’s debt relief scheme. The FBM KLCI fell 0.95% or 15.08 points to finish at 1574.83 points, the biggest one-day decline this year. However, year-to-date, it is up 3%. FBM KLCI futures closed seven points down to 1575.5.

Private holders of Greek government bonds have until Thursday night to voluntarily swap their bonds for new ones. The bond swap is vital to help Greece to obtain bailout funds, without which the country may default on its debt obligations this month. A default could have a negative impact on global financial markets.

Weakness across major importing countries in Europe, and China has already been reflected in Malaysia’s latest trade numbers.

Malaysia’s January exports grew at slower year-on-year pace of 0.4 % as shipments of electrical and electronic and commodity-based products to China and Europe declined. This compares to December 2011’s export growth of 6.1%.

Stocks on watch on Thursday are PADINI HOLDINGS BHD [], SILVER BIRD GROUP BHD [], Pelikan International Corporation Bhd and WINSUN TECHNOLOGIES BHD []. Other stocks which could see trading interest are SYARIKAT TAKAFUL MALAYSIA BHD [] and Brahim’s Holdings Bhd.

AmResearch Sdn Bhd initiated coverage on Padini, an apparel maker with a Buy call and target price of RM1.80. Padini shares closed unchanged at RM1.48 on Wednesday. The stock had earlier traded to a fresh intraday high of RM1.49.

The research house said Padini’s market capitalisation, which is approaching RM1billion, will improve the stock’s visibility among institutional funds. Despite its strong share price performance, Padini’s valuation is undemanding in anticipation of the firm’s earnings growth, according to the research firm.

Bread manufacturer Silver Bird was the third most actively traded stock on Wednesday on speculation that Fraser & Neave Holdings Bhd chief executive officer Datuk Tan Ang Meng may be roped in to lead Silver Bird.

This follows news of alleged financial irregularities at the bread manufacturer. However,Tan has denied the speculation. Silver Bird shares rose 4.5 sen to finish at 23 sen.

Pelikan plans to reward its shareholders with one treasury share for evey 50 existing shares held for FY ended Dec 31, 2011. The board also recommended a final cash dividend of one sen per share single tier dividend.

Industrial automation systems entity Winsun Technologies Bhd secured a letter of intent from Ningbo Shanghao which has indicated its intention to buy from Winsun 60,000 tonnes of iron ore a month for a duration of two (2) years. Winsun shares closed 0.5 sen higher at 17 sen.

Brahim’s whose shares closed 8% higher at RM1.23, announced that it had fixed the issue price for its 17.9 million new placement shares at RM1.10. This translates into gross proceeds of close to RM20 million should all the new securities placed out.

Syarikat Takaful Malaysia Bhd could also draw interest after its managing director Datuk Hassan Kamil indicated the Islamic insurer’s plans to further grow earnings in key market Indonesia for the long term. The stock rose seven sen or 3.3% to close at RM2.18.



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