Malaysia Smelting ropes in Indonesian JV partner

KUALA LUMPUR (March 9) : Malaysia Smelting Corp Bhd (MSC) will rope in Optima Synergy Resources Ltd as a joint venture partner to undertake tin mining operations in Indonesia.

In a statement to Bursa Malaysia on Friday, MSC said it has signed a strategic alliance agreement with Optima Synergy, which is owned by Indonesian shareholders.

The deal will allow Optima Synergy to acquire up to 23% of MSC’s wholly-owned subsidiary Bemban Corp Ltd for US$1.38 million, according to MSC. Bemban in turn has a 75% stake in PT Koba Tin which has secured a mining contract from the Indonesian government.

MSC said Optima Synergy will subsequently have the right raise its stake in Bemban to 50% subject to PT Koba getting an extension for its mining contract in Indonesia, and MSC obtaining consent from its shareholders in an extraordinary general meeting. MSC shares rose three sen to close at RM4.25.



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SC chairman Zarinah to retire end-March

KUALA LUMPUR (March 9): Tan Sri Zarinah Anwar will retire as chairman of the Securities Commission when her term ends on March 31, 2012.

A statement from the SC on Friday said Zarinah, who has been the chairman since 2006, will be succeeded by Datuk Ranjit Ajit Singh.

“Datuk Seri Najib Tun Abdul Razak, Prime Minister and Minister of Finance has appointed Datuk Ranjit Ajit Singh to succeed Tan Sri Zarinah as chairman of the SC and Datuk Dr Nik Ramlah Mahmood as deputy chief executive. Both currently serve as managing directors of the SC and their new appointments take effect from April 1, 2012,” it said.

Zarinah, the SC said, has played a key role in strengthening and developing the Malaysian capital market over the past 10 years, “establishing a robust regulatory and governance framework which has contributed to the growth of the market, and investing resources in building regulatory capacity”.

The SC described Ranjit as a highly experienced regulator with over 20 years experience in the field of finance and securities regulation.

Ranjit, a financial economist and accountant, has served the SC since 1994 in several areas including the supervision and oversight of the market; strategy and risk management, financial policy and economics.

He is also an executive director in charge of market oversight at the SC. He is the chairman of International Organisation of Securities Commissions’ group on secondary markets.

Ranjit has chaired an expert group on capital markets for a Financial Stability Board taskforce and has served as a member of the IMF’s expert group on governance of public sector agencies.

The SC said Nik Ramlah, who is trained in law, served the SC for over 18 years, in areas including legal and regulatory reform, product and market development, corporate governance, Islamic capital market, investor education and enforcement.

Nik Ramlah is an executive director in charge of enforcement.

She also sits on the board of the Securities Industries Development Corporation, which is the regulator’s training and education arm.

Nik Ramlah is a core member of the OECD Asian Roundtable on Corporate Governance and is a member of the Technical Committee of the Islamic Financial Services Board (IFSB).



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Gefung cancels MoU for Jakarta property development

KUALA LUMPUR (March 9): GEFUNG HOLDINGS BHD [] will not go ahead with the proposed joint venture for a mixed development project on 50.74 acres of land in east of Jakarta.

According to Gefung, the company and PT Greenworld Development “could not reach an agreement on the terms and conditions for the proposed project, the parties have mutually agreed to terminate the MoU with immediate effect”.

To recap, both parties had on Dec 9, 2011 signed the MoU to undertake the mixed development project.



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Market closes mixed on profit taking

KUALA LUMPUR (March 9): Share prices on Bursa Malaysia closed mixed on Friday as traders firmed their position ahead of the weekend, dealers said.

The FBM KLCI inched up 0.64 of a point to close at 1,579 after having moved between 1,577.23 and 1,582.Decliners led advancers by 388 to 369 while 344 counters closed unchanged.

A dealer said although strong interest from foreign investors was seen in the market, profit taking had offset earlier gains.

The Finance Index lost 12.46 points to 14,104, the INDUSTRIAL INDEX [] was down 7.11 points to 2,864.1 but the PLANTATION [] Index rose 16.6 points to 8,629.54.

The FBM Emas Index added 3.74 points to 10,899.05, FBM Ace Index was down 6.3 points to 4,660.87 and the FBMT100 added 2.18 points to 10,684.46.

Total volume amounted to 1.306 billion shares valued at RM1.367 billion compared with 1.769 billion shares valued at RM1.763 billion registered on Thursday.

Actively traded stocks included Naim Indah which added 1.5 sen to 64.5 sen, Lee Swee Kiat which increased three sen to 19.5 sen and Key West Global which gained 2.5 sen to 22 sen.

Sumatec lost half a sen to 28.5 sen and Sumatec-Warr shed one sen to 15.5 sen.

Among heavyweights, Maybank gained two sen to RM8.74, CIMB rose eight sen to RM7.34, Sime Darby and Petronas Chemicals earned one sen each to RM9.85 and RM6.84 respectively and Tenaga gathered 13 sen to RM6.39. - Bernama



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Market Commentary

The FBM KLCI index gained 0.64 points or 0.04% on Friday. The Finance Index fell 0.09% to 14104 points, the Properties Index dropped 0.49% to 1046.09 points and the Plantation Index rose 0.19% to 8629.54 points. The market traded within a range of 4.77 points between an intra-day high of 1582.00 and a low of 1577.23 during the session.

Actively traded stocks include NICORP, SUMATEC, LEESK, KEYWEST, SUMATEC-WA, CSL, SILKHLD, HWGB, WINSUN and TMS. Trading volume decreased to 1306.73 mil shares worth RM1367.01 mil as compared to Thursday’s 1769.37 mil shares worth RM1763.28 mil.

Leading Movers were TENAGA (+13 sen to RM6.39), MAYBANK (+2 sen to RM8.74), GENM (+3 sen to RM3.89), KLK (+14 sen to RM23.40) and TM (+2 sen to RM5.23). Lagging Movers were DIGI (-3 sen to RM4.02), AIRASIA (-3 sen to RM3.63), HLBANK (-10 sen to RM12.28), AXIATA (-1 sen to RM5.13) and PETGAS (-8 sen to RM16.70). Market breadth was negative with 369 gainers as compared to 388 losers. -- JF Apex Securities Bhd



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HWGB says not in talks to sell tin mining biz to Yunnan Tin

KUALA LUMPUR (March 9): HO WAH GENTING BHD [] [] (HWGB) says it is not in talks to sell its tin mining business for US$75 million (RM227 million) to Yunnan Tin Group.

It said on Friday it was not negotiating with Yunnan Tin’s subsidiary Sino-Platinum Metals Co. Ltd to dispose of the business at this point in time.

A news report said Yunnan Tin had plans to buy HWGB’s tin mining business for US$75 million.



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Boustead sees profit hitting RM1 b in next 2 years

KUALA LUMPUR (March 9): BOUSTEAD HOLDINGS BHD [], which staged a remarkable performance last year, sees its profit breaching the RM1 billion level within the next two years.

“Last year was a record year for us. My personal target is that we’ll breach the RM1 billion profit level within the next two years. It could be this year or next year,” said its deputy chairman/group managing director Tan Sri Lodin Wok Kamaruddin.

To achieve the target, Lodin said Boustead would remain focused on the six core business activities namely PLANTATION []s, financial services, property, manufacturing and trading, pharmaceuticals and heavy industries.

For its financial year (FY) ended Dec 31, 2011, Boustead posted a pre-tax profit of RM831 million, a rise of 14.43 per cent from the RM726.2 million recorded for the previous year.

He expects the company’s plantation division to be the major contributor to its profit for the current year with heavy industries also contributing substantially.

“We also believe that the pharmaceuticals and financial services divisions can be good contributors to the group,” Lodin told Bernama in an interview.

However, he stressed the importance of sustaining profits for the company.

“I believe the price of crude palm oil (CPO) will be sustainable at the current level of around RM3,200 per tonne. It will be another good year for us. The plantation sector contributed about 40 per cent to the group’s profit last year.

"We expect similar or higher contribution from the division this year if the price of CPO remains at the level,” he said.

As for the heavy industries division, he expects it to perform well for the current year with the contract to build six units of the second-generation patrol vessels.

He expects the division to contribute more than 10 per cent to the group’s profit for the current financial year.

The heavy industries division posted a breakeven for FY 2011 compared with a profit of RM146.2 million for the previous year due to cost escalations in commercial shipbuilding projects and higher finance charges.

Lodin said the group’s financial services sector, which recorded good profit for FY 2011, would continue to perform well in the current year.

“To achieve the targeted profit, other entities must be well-managed professionally in the most cost-effective way with good corporate governance in place,” he added.

According to him, the group’s manufacturing and trading division would also continue to record good performance for the current financial year. The divison's pre-tax profit increased in FY 2011 with BHPetrol contributing significantly.

He said BHPetrol, with about nine per cent market share, had been recording revenue growth of about seven per cent annually. BHPetrol now has 330 service stations throughout Malaysia.

Lodin also said the group’s property division, which posted a higher profit for its FY 2011 compared to the previous year, would continue to record a remarkable performance.

He said the group’s four hotels are currently recording occupancy rates of between 60 per cent and 90 per cent. The four hotels are Royale Chulan in Kuala Lumpur and three, under the brand name of Royale Bintang, located at The Curve in Petaling Jaya, Jalan Bukit Bintang in Kuala Lumpur and in Seremban.

“All our hotels except Royale Chulan are profitable. We expect Royale Chulan to break even or record a small profit this year. Its occupancy rate is improving, now it is close to 60 per cent,” he said.

Another two hotels are under CONSTRUCTION [] -- Royale Bintang in Penang and Royale Bintang Cherating, expected to open for business in the middle of 2013 and early 2014 respectively.

Boustead also manages a small hotel, Royale Aryani in Terengganu. - Bernama



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AZRB up 14.6% as RM764.9m job for MRT set to take off

KUALA LUMPUR (March 9): AHMAD ZAKI RESOURCES BHD []’s (AZRB) share price rose 14.6% to RM1.02 in the afternoon session on Friday as the RM764.90 million contract for part of the Klang Valley MRT was set to take off.

At 3.59pm, AZRB was up 13 sen to RM1.02. There were 826,900 shares done.

The FBM KLCI was just up 0.17 of a point to 1,578.53. Turnover was 1.01 billion shares valued at RM936.22 million.

AZRB said on Friday work on the viaduct stretching from Plaza Phoenix to Bandar Tun Hussein Onn station for the Klang Valley MRT would start end-March and be completed in June 2016.

AZRB said the project with a contract value of RM764.90 million was awarded to its unit Ahmad Zaki Sdn Bhd as part of the MRT package V6.

It involves the CONSTRUCTION [] and completion of viaduct guide-way and other associated works. However, the alignment will make full use of elevated structures with a total distance 5.24km along the Cheras-Kajang Highway.

MMC Gamuda KVMRT (PD) Sdn Bhd is the project delivery partner for the MRTproject. IJM Bhd’s unit IJM Construction Sdn Bhd was awarded the adjoining package, Package V5.



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PNB, LTH decision crucial over Engtek privatisation offer

KUALA LUMPUR (March 9): Pemodalan Nasional Bhd (PNB) and Lembaga Tabung Haji (LTH), which hold a combined 23% stake in Eng Teknologi Bhd (Engtek), will be the deciding factors in the privatisation of the hard-disk drive components manufacturer.

According to OSK Research’s estimates, both PNB and LTH, have held the Engtek stake since 2000 and their average cost per share was between RM1.40 and RM1.80.

“Assuming that the offer price is now RM2 a share, there is an upside of 10%-45% compared to 35%-75% based on the previous offer of RM2.50 a share,” it said on Friday.

However, OSK Research also pointed out that any offer price below RM2 a share could discourage PNB and LTH from participating in the proposed privatisation.

On Thursday, Eng Tek announced that TYK Capital was still negotiating with its financiers to fund the privatisation of the company.

OSK Research said it had come to understand that the offer price would likely be adjusted to a value not exceeding RM2.00 a share, instead of the earlier proposed RM2.50 a share made prior to the severe floods in Thailand late 2011. However, this would hinge on the outcome of the due diligence exercise scheduled to be completed by March 19.

The research house also said there was still a high chance that PNB and LTH would give their consent, especially with the hard-disk drive segment now facing long-term headwinds.

The factors affecting the HDD market were the proliferation of smartphones and tablets which has sapped the demand for PCs, and the slow but steady transition to solid state drives (SSD) as the primary medium of storage.

OSK Research said it was not making any changes to its fair value of RM1.52 on Engtek, based on 0.9 times FY12 price-to-net tangible asset, but it was downgrading its recommendation from Neutral to Sell due to the fluidity of the situation.

“We advise investors to cash out from Engtek as we see better trading opportunities for both Notion (Trading Buy, FV: RM2.43) and JCY International (Trading Buy, FV: RM1.80) which have a better product mix and economies of scale respectively.

“Moreover, the potential new offer price of RM2 for Engtek would only provide a rather limited upside potential of 12% from the current market price. Being a HDD component maker that is severely affected by the Thai floods, Engtek’s short- to long-term outlook is undoubtedly murky,” it said.



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AZRB: RM764.9m viaduct works for MRT to start end-March

KUALA LUMPUR (March 9): AHMAD ZAKI RESOURCES BHD [] (AZRB) says work on the viaduct stretching from Plaza Phoenix to Bandar Tun Hussein Onn station for the Klang Valley MRT would start end-March and be completed in June 2016.

AZRB said the project with a contract value of RM764.90 million was awarded to its unit Ahmad Zaki Sdn Bhd as part of the MRT package V6.

It involves the CONSTRUCTION [] and completion of viaduct guide-way and other associated works. However, the alignment will make full use of elevated structures with a total distance 5.24km along the Cheras-Kajang Highway.

AZRB managing director Datuk Wan Zakariah Wan Muda said on Friday that the proper project implementation plans were already in place.

The plans, he said were not only to meet the requirements of Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) as the project owner and project delivery partner (PDP) but also to address the various concerns raised by the public particularly on traffic diversions, environmental impacts such as noise and vibration and disruptions to the supply of public utilities and services.

MMC Gamuda KVMRT (PD) Sdn Bhd is the project delivery partner for the MRTproject. IJM Bhd’s unit IJM Construction Sdn Bhd was awarded the adjoining package, Package V5.



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Regional markets extend gains at mid-day

KUALA LUMPUR (March 9): The FBM KLCI remained in positive territory at the mid-day break on Friday as key regional markets extended their gains on improved sentiment on the back of a successful attempt by Greece to close the bond swap offer.

Greece' success in closing the bond swap offer enabled it to reduce its huge debt pile and avert a chaotic default that would pitch the euro zone into a fresh crisis, according to Reuters.

At the mid-day break, the KLCI added 1.55 points to 1,579.91, lifted by gains at select blue chips. Gainers led losers by 340 to 286 while, 312 counters traded unchanged. Volume was 714.59 million shares valued at RM546.47 million.

The ringgit strengthened 0.20% To 3.0044 versus the US dollar; crude palm oil futures for the third month delivery gained RM45 per tonne to RM3,337, crude oil rose 32 cents per barrel to US$106.90 while gold added US$5.18 an ounce to US$1,704.95.

At the regional markets, Japan’s Nikkei 225 rose 2.22% to 9,985.94, Hong Kong’s Hang Seng Index added 1.06% to 21,121.50, the Shanghai Composite Index rose 0.40% to 2,429.95, Taiwan's Taiex was up 0.34% to 8,011.59, South Korea’s Kospi rose 0.49% to 2,010.59 and Singapore’s Straits Times Index was up 0.44% to 2,983.41.

At Bursa Malaysia, gainers included BAT that rose 38 sen to RM52.40, Bonia 18 sen to RM2.48, Deleum 16 sen to RM2.20, KLK 14 sen to RM23.40, Tradewinds PLANTATION []s 13 sen to RM4.44, Press Metal and MBM Resources 11 sen each to RM2.09 and RM4.61, while Mercury and Johore Tin added nine sen each to 1.25 and RM1.23.

Naim Indah Corp was the most actively traded counter with 67.9 million shares done. The stock gained on sen to 64 sen.

Other actives included Sumatec, China Stationery, SILK Holdings, KeyWest, and Perisai .

Decliners included Petronas Dagangan and PPB which lost 12 sen each to RM18.24 and RM16.78, KAF, BLD Plantations and Far East down 10 sen each to RM1.80,RM9.35 and RM7.30 respectively. KLCC Property and Hong Leong Bank down eight sen each to RM3.34 and RM12.30.



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Qantas ends talks with MAS for Asian carrier

SYDNEY (March 9): Qantas Airways has called off talks with Malaysian Airlines to establish an Asian premium carrier because terms could not be agreed, a big setback to the Australian carrier's plans to turn around its ailing international operations.

Qantas had said it was in talks with Malaysian Airlines, budget carrier Air Asia and Singapore to set up the airline, but recent reports indicated talks had run into rough weather over capital investment and size of the stake.

Qantas chief Executive Alan Joyce, who has staked almost everything on the Asian move to turn around the international operations of Australia's top airline, reiterated in a statement the plan remained a priority.

Qantas said it "continued to explore opportunities in the region, including joint ventures and alliances.

"However, mindful of global economic uncertainty, and consistent with Qantas' focus on disciplined financial management, the group will allocate minimal capital to such ventures."

The plan for an Asian premium carrier was part of a five-year strategy to revive Qantas' international operations, which lose A$200 million ($212 million) annually. Unions have opposed the plan.

The turnaround strategy also includes restructuring the international network and raising the focus on Asia.

Last month, the airline said it would axe 500 jobs and cut capital spending by A$700 million over two years to protect profitability.

Last year, Qantas grounded its entire fleet for almost two days, seeking to bring long-running industrial action with a number of unions to a head through the intervention of the industrial labour umpire. Qantas has since settled with unions.

Qantas, one of the two global airlines still to boast an investment-grade rating, saw Moody's cut its credit rating dropped by a notch in late January, citing pressure from high fuel prices and difficult operating environment.

At 2348 GMT, Qantas shares were down 2.0 percent to A$1.69 in a broader market that was up 0.5 percent. – Reuters



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Markets gain on successful Greek bond swap

KUALA LUMPUR (March 9): Asian equity markets rose on Friday on improved sentiment on the back of successful attempt by Greece to close the bond swap offer on Thursday.

The bond swap offer was to reduce its huge debt pile and averting a chaotic default that would pitch the euro zone into a fresh crisis, according to Reuters.

BIMB Securities Research in a note Friday said that news on Thursday that Greece had managed to garner almost 90% of its bondholders to swap for new securities filtered through the market thus the broad based gains.

Improved employment outlook in the US provided further positive vibes thus pushing the DJI Average 71 points higher to above the 12,900 mark, it said.

“With Eurozone’s outlook on a stabilisation path, major European bourses ended up mostly in positive territory. “Regionally, there were across the board buying momentum pushing almost all Asian markets up.

“The FBM KLCI made minor inroads with a modest 3.53 point gain to hang around the 1,580 level. We expect the index to see more upside judging by the net inflow of foreign funds into the market over the past two weeks amounting to almost RM1.3bn and may surpass the immediate resistance of 1,585,” it said.

On Bursa Malaysia, the FBM KLCI edged up 2.67 points to 1,581.03 ay 10am, lifted by gains at select blue chips.

Gainers led losers by 234 to 128, while 246 counters traded unchanged. Volume was 339.49 million shares valued at RM196.50 million.

At the regional markets, Japan’s Nikkei 225 rose 1.03% to 9,869.78, Hong Kong’s Hang Seng Index added 0.33% to 20,970.30, the Shanghai Composite Index added 0.43% to 2430.73, Taiwan’s Taiex gained 0.37% to 8,013.72, South Korea’s Kospi was up 0.40% to 2,008.72 and Singapore’s Straits Times Index added 0.07% to 2,972.44.

Among the gainers on Bursa Malaysia, BAT rose 38 sen to RM52.40, Deleum 17 sen, Petronas Gas 14 sen to RM16.92, KLK 12 sen to RM23.38, CIMB, Tenaga and Johore Tin nine sen each to 7.35, 6.35 and RM1.22 respectively, CAB 6.5 sen to 44 sen while Astral Asia and Padini added six sen each to RM1.29 and RM1.54.

Naim Indah Corp was the most actively traded counter with 36.1 million shares done. The stock gained one sen to 64 sen.

Other actives included Sumatec, CSL, SILK Holdings, Olympia, KeyWest and HWGB.

Decliners included Dutch Lady, Petronas Dagangan, Fat East, PPB, Lafarge Malayan Cement, Quality Concrete, Brahim's and Iretex.



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CIMB Research upgrades Tenaga from Hold to Trading Buy, TP

KUALA LUMPUR (March 9): CIMB Equities Research is more positive about TENAGA NASIONAL BHD [] after its sector review as it will gain the most from reform initiatives.

The research house said on Friday a shift of the gas subsidy from Petronas to the government will lower the chances of future gas supply shocks and a power purchase agreement (PPA) extension could raise FY13 core EPS by up to 30%.

“We upgrade Tenaga from Hold to Trading Buy after raising our target price-to-book value from 1.1 times to 1.3 times, which is a 35% discount to its long-run historical average. This accounts for our more positive outlook.

“Our target price goes up from RM6.47 to RM7.65. As the September PPA deadline approaches, we expect a build-up of positive news,” it said.



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CIMB Equities Research has technical sell on CBIP at RM2.43

KUALA LUMPUR (March 9): CIMB Equities Research has a technical sell on CB Industrial Product (CBIP) at RM2.43 at which it is trading at a price-to-book value of 1.9 times.

It said on Friday the stock violated its medium term uptrend channel as well as its 30-day SMA recently.

"We think that that the selldown is not over yet. Looking at the chart, we believe that the stock is heading towards its 50-day SMA (now at RM2.37) soon. The next support levels are RM2.30 and RM2.20,” it said.

CIMB Research said that indicators are showing signs of exhaustion. MACD signal line is heading south while RSI is below the 50pts mark.

“Sell into strength looks like a good option here, especially near the RM2.46-RM2.52 resistances. Put a buy stop at RM2.55, just in case,” it said.



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CIMB Equities Research has technical buy on Gamuda at RM3.66

KUALA LUMPUR (March 9): CIMB Equities Research has a technical buy on GAMUDA BHD [] at RM3.66 at which it is trading at a FY13 price-to-earnings of 17.4 times and price-to-book value of 2.0 times.

It said on Friday the recent consolidation dragged prices towards its 38.2% Fibonacci Retracement levels. Since then, the bulls have made a comeback.

CIMB Research said as long as prices hold on steady above the RM3.54 low, there is a good chance that the candles may edge towards RM3.84 and RM3.94.

“Technical landscape is improving. MACD signal line is poised for a positive crossover while RSI has also hooked upward.

“Aggressive traders may start to take some position here. However, be quick to cut loss if the RM3.54 low is breached,” it said.



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CIMB Equities Research has technical buy on TH Plantations at RM2.87

KUALA LUMPUR (March 9): CIMB Equities Research has a technical buy on TH PLANTATION []s at RM2.87 at which it is trading at a price-to-book value of 2.3 times.

It said on Friday the share price broke out of its ascending triangle pattern yesterday. If the candles can continue to hold on above the support-turned-resistance trend line at RM2.84, there is a high possibility that this uptrend may be extended. The next resistance levels are RM3.10 and RM3.25.

“Indicators are also in favour of the bulls. MACD signal line is hovering in the positive territory while RSI is above the 50pts mark.

“Traders may start to take some position here to ride on the breakout run. However, always put a stop at below RM2.78-2.68 to limit downside risk,” said CIMB Research.



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Affin upgrades Sarawak Plantation Bhd to ADD, fair value raised to RM3.18

KUALA LUMPUR (March 9) : Affin Investment Bank Bhd has revised upwards its fair value for Sarawak PLANTATION [] Bhd shares from RM2.67 to RM3.18 and upgraded its recommendation for the stock from Reduce to Add. The stock closed at RM3 on Thursday.

In a note on Friday, Affin said the upward revision is in tandem with the research house’s move to raise its net profit forecast for Sarawak Plantation by between 19.1% and 26.2% for FY12 to FY14 period. Affin said the higher earnings forecast is based on the company’s higher fresh fruit bunch (FFB) growth assumptions and cost of production of between RM1,500 and RM1,600 a tonne and crude palm oil average selling prices of RM3,000 a tonne during the three year period.

“Based on latest management guidance, FFB production growth is now projected at 23% in FY12 and 14% in FY13 compared to our assumption of 12% and 8%, espectively,” Affin said.

The research house also said Sarawak Plantation’s forecast dividend payout offers an attractive net dividend yield of 5.4%.



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Stocks to watch: Pantech, MISC, EngTek, Johore Tin, MAHB

KUALA LUMPUR (March 9): Malaysian stocks could take the cue from positive sentiment across global markets on Friday as investors pinned their hopes that Greece’s sovereign debt woes will be contained. Markets could also find support from the anticipation of better employment numbers in the US.

Private holders of Greek government bonds have until Thursday night (March 8) to voluntarily swap their bonds for new ones. The swap is vital to help Greece to obtain bailout funds, without which the country may default on its debt obligations this month.

Reuters reported that as of Wednesday, major banks and pension funds, accounting some 40% of Greece's outstanding bonds, has participated the in the swap, raising hopes that the country could avert a default. US policymakers are expected to announce on Friday, a rise of 210,000 jobs in the country’s non-farm payrolls. This could boost sentiment among Asian exporting nations.

Japan stole the limelight on Thursday when it announced that its gross domestic product contracted by an annualized 0.4%, less than the 2.3% contraction estimated earlier.

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

Stocks to watch on Friday include PANTECH GROUP HOLDINGS BHD [], MISC BHD [], ENG TEKNOLOGI HOLDINGS BHD [], JOHORE TIN BHD [], and Malaysia Airports Holdings Bhd (MAHB)

Pantech, 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. Pantech said on Thursday the acquisition will help the company expand its geographical presence and product range. Pantech shares rose 1.5 sen to close at 54 sen.

Moody's Investors Service had on Thursday downgraded credit ratings of MISC Bhd to Baa2 from Baa1. The outlook on the ratings remains negative. According to Moody’s, the downgrade reflects MISC’s weaker earnings amid excess capacity which could stifle the shipping firm’s profitability.

Moody’s is also mindful of MISC’s substantial capital needs requiring additional debt funding, which will lead to higher debt leverage and negative cash flow in the short to medium term. MISC shares closed five sen down to RM5.32

Meanwhile, 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 with financiers on the funding dynamics for the acquisition, and that the outcome could result in a lower offer price for the proposed takeover. Eng Teknologi finished at RM1.78, down one sen.

Meanwhile, OSK Research said Johore Tin shares are trading at attractive valuations with a low market capitalisation of RM75.6 million, hence, the possibility of the company being an acquisition target. OSK maintained its buy call for Johore Tin with a fair value of RM1.51. Johore Tin added six sen to RM1.14.

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 said MAHB shares declined three sen to RM5.62.



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