Monday 12 March 2012

Abdul Talib Mohamed, son in reverse takeover of PFCE

KUALA LUMPUR (March 12): The group executive chairman of PFC Engineering Sdn Bhd Datuk Abu Talib Mohamed and his son, Muammar Gadaffi are undertaking a reverse takeover of the loss-making PFCE Bhd, which is currently involved in the ceramics business.

PFCE said on Monday the corporate exercise would see Abu Talib and his son, who own 100% stake in PFC Engineering injecting the company into PFCE. Currently, they also own a combined 40% stake in PFCE or 35.16 million shares.

Under the corporate exercise, they will transfer their stake in PFC Engineering to a new company, DAT Sdn Bhd.

In conjunction with the proposed transfer, PFC Engineering will distribute its investment in PFCE -- comprising 35.16 million PFCE shares via dividend-in-specie to DAT for RM15.8 million. PFC Engineering will declare up to RM24 million cash dividend to DAT.

DAT, the ultimate shareholders and parties acting in concert with them proposed to seek an exemption to extend a mandatory general offer for all the remaining PFCE Shares not already held by them.

The exercise would then see PFCE acquiring the entire interest in PFC Engineering from DAT for RM300 million which would be satisfied by the issuance of 500 million new PFCE shares at 60 sen per share.

DAT would also place out up 90 million PFCE shares and proposed restricted offer for sale of up to 52.838 million PFCE shares at an issue/offer price to be determined later.

PFCE said the rationale for the corporate exercise was that the PFCE group was currently involved in the ceramic business, which had been losing money for the past seven financial years ended Dec 31, 2011.

“The proposed acquisition will allow PFCE to diversify its business into the oil and gas industry which would provide another source of revenue and income to PFCE and reduce its sole dependency on the existing core business of trading and manufacturing of pottery, porcelain and ceramic ware products.

“The expansion of PFCE’s business into the oil and gas industry is part of PFCE’s long term strategy of diversifying into other industries with strong growth prospects instead of depending solely on its existing core business,” it said.

As for the PFC Engineering group of companies, they had completed over RM1.2 billion worth of projects over the past three (3) years and was expected to enhance the earnings of PFCE subsequent to the completion of the proposed acquisition.

The acquisition of PFC Engineering is expected to reverse the loss after tax after minority interest of PFCE of RM1.3 million for FYE Dec 31, 2011 to a healthy profit after tax and minority interests of RM29.1 million upon completion of the proposed acquisition, premised on a full year of PFC Engineering’s earnings for FYE 2011, based on PFC Engineering’s unaudited consolidated financial results.



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

SIG Gases in JV with Japan’s Iwatani for Sarawak project

KUALA LUMPUR (March 12): SIG Gases Bhd is teaming up with a unit of Iwatani Corporation, Japan to set up a joint venture company to set up facilities in Samalaju Industrial Park, Bintulu, Sarawak.

SIG said on Monday the JV would pave the way for SIG Gases and Iwatani to be strategic business partners to set up the facilities in Samalaju to produce and supply of liquid products and compressed gases to customers in Sarawak.

The JV company -- Iwatani-SIG Industrial Gases Sdn Bhd – would produce liquid oxygen, liquid nitrogen, liquid argon, liquid carbon dioxide, hydrogen and gases and pipe them to the Samalaju industrial park.

Iwatani Industrial Gas Pte Ltd, which is involved in the JV, was incorporated in Singapore and is a unit of Iwatani Corporation, Japan.

Iwatani-SIG Industrial Gases’ authorised share capital will be increased to RM25 million and the paid-up share capital to RM11.20 million.

Iwatani will hold 6.72 million shares or 60% stake and SIG Gases 4.48 million shares or 40%.



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

Kimlun gets 2 contracts valued at RM151m for JB housing projects

KUALA LUMPUR (March 12): Kimlun Corporation Bhd has secured two contracts worth RM151.61 million for housing projects in Johor Bahru.

It said on Monday it had accepted a RM114.70 million contract from S P Setia Bhd’s unit Bukit Indah (Johor) Sdn Bhd for the CONSTRUCTION [] of service apartments and ancillary buildings.

It also secured a RM36.90 million contract from Keck Seng (Malaysia) Bhd to build 244 houses in Johor Bahru, Johor. The estimated date of completion is September 2013.

“The projects are expected to contribute positively to the earnings and net assets of Kimlun Group for the financial years during the contract period,” it said.



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

KLCI closes 14pts down, Petronas-linked stocks, Sime weigh

KUALA LUMPUR (March 12): Losses at key blue chips including Petronas-linked counters, Sime Darby, banking and PLANTATION []-related stocks dragged the FBM KLCI 0.09% lower on Monday as data showed Malaysia’s industrial production index (IPI) grew at the slowest pace in six months.

The IPI increased 0.2% in January due to slower growth in the manufacturing and electricity output while the mining component contracted by a larger quantum, when compared to December 2011’s IPI on-year growth of 2.9%.

The FBM KLCI fell 14.25 points to close at 1,564.75. Losers beat gainers by 516 to 260, while 318 counters traded unchanged. Volume was 1.27 billion shares valued at RM1.72 billion.

Regional markets retreated as weak Chinese exports raised fears about global demand and offset the support provided by a better outlook for the U.S. economy and Middle East supply concerns.

Japan’s Nikkei 225 fell 0.40% to 9,889.86, the Shanghai Composite Index lost 0.19% to 2,434.86, Taiwan’s Taiex lost 1.10% to 7,927.55, south Korea’s Kospi lost 0.78% to 2,002.50 and Singapore’s Straits Times Index shed 0.11% to 2,966.45, while Hong Kong’s Hang Seng Index added 0.23% to 21,134.10.

Meanwhile, European stocks fell slightly on Monday, halting a sharp three-day rally as last week's strong U.S. jobs data dampens expectation of further stimulus from the U.S. Federal Reserve, which holds its latest meeting this week, according to Reuters.

On Bursa Malaysia, decliners included Petronas Chemicals that fell 28 sen to RM6.56, Petronas Gas down 20 sen to RM16.50, Jaya Tiasa 18 sen to RM7.42.

Sime Darby, KLK and PPB fell 16 sen each to RM9.69, RM23.24 and RM16.72 respectively. APM lost 15 sen to RM4.48 and Telekom Malaysia declined 13 sen to RM5.10.

Naim Indah Corp was the most active with 229.13 million shares done. The stock rose eight sen to 72.5 sen.

Other actives included HWGB, Winsun, Sime Darby, Telekom, HLS Corp, MTronic, Iris CorpORP and Key West.

Meanwhile, gainers included Tecnic, Bonia, Ibraco, Mudajaya, PIE, MBM Resources, Dutch Lady and AEON.



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

EPF sells 10.23m YTL Corp shares

KUALA LUMPUR (March 12): The Employees Provident Fund Board disposed of 10.23 million shares of YTL CORPORATION BHD [] on March 7.

A filing with Bursa Malaysia on Monday showed that after the disposal, its shareholding in YTL Corp was reduced to 769.29 million shares or 7.93%.

The share price closed at RM1.69 on that day.



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

Sime Darby run-up takes a breather, KLCI down

KUALA LUMPUR (March 12): Shares of SIME DARBY BHD [] fell to a low of RM9.64 on Monday as its recent rally hit a bump, asa blue chips retreated in line with the cautious key regional markets.

At 3.35pm, Sime Darby fell 20 sen to RM9.65, which weighed on the FBM KLCI also. The shares were very actively traded with 17.09 million units done.

The FBM KLCI fell 12.66 points to 1,566.34. Turnover was 895.78 million shares valued at RM1.08 billion. There were 216 gainers, 503 losers and 310 stocks unchanged.

Analysts were bullish on crude palm oil (CPO) prices with one foreign research house describing Sime Darby as its top pick among PLANTATION [] companies in Malaysia and target price of RM11.28.

Hwang DBS Vickers Research has a buy on SIme Darby with a target price of RM11.25

The research house said at the recent crude palm oil conference that most of the speakers projected crude palm oil prices would be sustainable at RM3,000 to RM3,500 a tonne in the year.

Dorab Mistry was most bullish, expecting CPO prices to test the RM4,000 level by June12 due to tight supply.

“There was a general consensus that the current high price level is justified by rising demand for vegetable oils, with palm oil leading the pack given its superior yields vis-à-vis other crops, despite challenges such as limited arable land, water and falling productivity,” it said.



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

AirAsia X to stop NZ flights, cites fuel costs

SINGAPORE (March 12): AirAsia X will suspend flights to and from New Zealand at the end of May as high jet fuel prices have made the service unprofitable, the long-haul affiliate of Malaysian budget carrier AIRASIA BHD [] said on Monday.

AirAsia Bhd is Asia's largest budget carrier.

"The Christchurch route has been impacted by the spiralling cost of jet fuel," AirAsia X chief executive Azran Osman-Rani said in a statement. "Since the launch of the route, jet fuel prices have increased in excess of 30 percent, and are currently still at very high levels."

Airlines have been struggling to pass on the higher cost of fuel to customers as demand for business and leisure travel dwindles amid a slowing global economy.

In December, the International Air Transport Association (IATA) cut its forecast for airline industry profits by a quarter to $3.5 billion for 2012 and warned the industry could plunge to an $8.3 billion loss if Europe's debt problems trigger another banking crisis.

AirAsia X has stopped flying between Kuala Lumpur and Mumbai and plans to discontinue services to London, Paris and New Delhi as part of a plan to focus on nearer destinations in Australia and East Asia. - Reuters



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

Dayang Enterprise MD disposes of 2m shares

KUALA LUMPUR (March 12): DAYANG ENTERPRISE HOLDINGS BHD []’s managing director Tengku Datuk Yusof Tengku Ahmad Shahruddin disposed of two million shares on March 9.

A filing with Bursa Malaysia showed he disposed of the shares, or a 0.36% stake, at an average price of RM2.22.



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

KLCI extends loss at mid-day break, falls more than 10 points

KUALA LUMPUR (March 12): The FBM KLCI extended its losses at the mid-day break on Monday in line with the mixed regional markets.

The index fell 10.81 points to 1,568.19, weighed by losses at select blue chips including sime Darby, Petronas Dagangan, PPB, KLK and Petronas Chemicals.

Market breadth turned negative with losers overtaking gainers by 409 to 212 while 313 counters traded unchanged. Volume was 684.81 million shares valued at RM755.83 million.

The ringgit weakened 0.64% to 3.0266 versus the US dollar; crude palm oil futures for the third month delivery fell RM1 per tonne to RM3,333, crude oil fell 56 cents per barrel to US$106.84, while gold lost US7.90 an ounce to US$1,705.75.

At the regional markets, Japan’s Nikkei gained 0.29% to 9,958.35, the Shanghai Composite Index added 0.239% to 2,429.93, while South Korea’s Kospi fell 0.62% to 2,005.41, Taiwan’s Taiex lost 0.40% to 7,984.34, the Shanghai Composite Index was down 0.39% to 2,429.93, and Singapore’s Straits Times Index was down 0.14% to 2,967.41.

Among the decliners this morning, The Store fell 24 sen to RM2.16, Rapid lost 22 sen to RM2.28, Petronas Gas and Hong Leong down 20 sen each to RM16.50 and RM12.08, Sime Darby lost 19 sen to RM9.66, while APM, PPB, KLK and Petronas Chemicals down 18 sen each to RM4.45, RM16.70, RM23.22 and RM6.66 respectively.

Naim Indah Corp was the most actively traded counter with 145.9 million shares done. The stock added seven sen to 71.5 sen.

Other actives included HGWB, HLS Corp, MTonic, Key West, Winsun, Iris Corp, Sime Darby and Systech.

Meanwhile, the gainers included Ekovest, Tecnic, Nice, BAT, P.I.E,. Tradewinds Plantations, MBM Resources,Batu Kawan and Eng Kah.



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

KLCI falls below 1,570-level, down nearly 10 points

KUALALUMPUR (March 12): losses at blue chips including Petronas Gas, KLK, Sime Darby and Petronas Chemicals dragged the FBM KLCI below the 1,57—point level at late morning on Monday.

The 30-stock index fell 9.28 points to 1,569.72 at 11.58am.

Losers overtook gainers by 386 to 214, whiel 301 counters traded unchanged. Volume was 630 .69 million shares valued at RM647.94 million.

Among the decliners, The Store fell 24 sen to RM2.16, Rapid, Hong Leong bank and Petronas Gas lost 20 sen each to RM2.28, RM12.08 and RM16.50 respectively, APM Automotive and KLK fell 18 sen each to RM4.45 and RM23.22, PPB and Sime Darby down 16 sen each to RM16.72 and RM9.69, while Petronas Chemicals lost 14 sen to RM6.70.



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

Firefly to reintroduce fuel surcharge from March 21

SUBANG, March 12 (Bernama) -- Community airline, Firefly, will reintroduce the fuel surcharge for flight bookings made from March 21 to offset persisting high jet fuel prices.

In a statement today, Firefly said that a fuel surcharge of RM10 for domestic travel will be imposed for each leg and RM20 for regional routes.

It also said that all flight bookings made before March 21 are unaffected.

Shorthaul Malaysia Airlines and Firefly Chief Operating Officer, Ignatius M.C. Ong, said the company had abolished the fuel surcharge in the last quarter of 2008, but regrettably, was now forced to reintroduce it due to unsustainable higher operating costs.

"We will continuously monitor jet fuel prices and ensure that the surcharge we levy on passengers is fair and benchmarked against other airlines operating regionally," he added.

Jet fuel prices rose to US$136.94 per barrel this month, from February's US$131.39 while in January, it was at US$108.22. – Bernama



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

KLCI pauses in line with regional markets

KUALA LUMPUR (March 12): The FBM KLCI slipped at mid-morning on Monday in line with the cautious sentiment at most regional markets.

Asian shares fell on Monday as investors paused to assess the effect of strong U.S. jobs data, which scaled back expectations for more easing ahead of this week's Federal Reserve meeting, while concerns over China's slowdown also weighed on sentiment, according to Reuters.

The FBM KLCI shed 0.90 of a point to 1,578.10 at 10am, weighed by losses at select blue chips.

Gainers led losers by 219 to 165, while 221 counters traded unchanged. Volume was 310.96 million shares valued at RM194.03 million.

At the regional markets, Japan’s Nikkei 225 was up 0.25% to 9,955.00, Hong Kong’s Hang Seng Index edged up 0.01% to 21,087.90, the Shanghai Composite Index added 0.09% to 2,437.29, , and Singapore’s Straits Times Index added 0.15% to 2,967.70, while South Korea’s Kospi fell 0.40% to 2,010.20, Taiwan’s Taiex was down 0.07% to 8,010.31.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Monday said The FBM KLCI lost 4.78 points and closed at 1,579.00 last Friday.

The weaker support areas for the FBM KLCI are in the 1,530 to 1,572 zone, he said.

“The next resistance levels of 1,579 and 1,597 may see heavy liquidation activities,” he said.

On Bursa Malaysia, decliners at mid-morning included Sunchirin that fell eight sen to RM1.40, Petronas Chemicals down sevens sen to RM6.77. Media Prima, KLK and Kulim lost six sen each to RM2.65, RM23.34 and RM4.20 respectively, whiel Bursa and Public Bankl fell four sen each to RM7.38 and RM13.70,

Naim Indah Corp was the most actively traded counter with 83.4 million shares done. The stock added six sen to 70.5 sen.

Other actives included HLS Corp, HWGB,Key West, and Hubline.

Gainers included Petrol One that rose 30 sen to RM1.15, Ekovest up 21 sen to RM2.78. Nice 15.5 sen to 51 sen, Tecnic 15 sen to RM3.85, Lafarge Malayan Cement and Bonia 12 sen each to RM7.37 and RM2.64, P.I.E 11 sen to RM4.75, UMW 10 aen to RM7.30 and NWP eight sen to 24 sen.



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

HDBSVR upgrades Padini’s earnings, TP RM1.75

KUALA LUMPUR (March 12): Hwang DBS Vickers Research has upgraded the earnings for Padini and raised the target price to RM1.75.

It said on Monday that Padini’s store expansion plan for FY12 is more aggressive than it expected.

“As such, we raised our FY12-14F earnings by 6-9%. We also increased same store sales growth assumptions after a strong 1H12 result,” it said.

HDBSVR said Padini is a liquid and cheap proxy to rising affluence (civil servants pay raised recently by 7%-13%) and a resilient Malaysian economy, and hence, deserves premium valuation.

“As such, we raised our target PE to 12x from 10x CY12F EPS, which lifted TP to RM1.75. The company should be able to pay higher dividends (expect 6 sen DPS for FY12F, implying 4.2% dividend yield),” it said.



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

RHB Research maintains Outperform on Sunway, FV RM3.15

KUALA LUMPUR (March 12): RHB Research Institute is maintaining its Outperform on Sunway Bhd with a fair value of RM3.15.

It said the 691-acre Sunway Iskandar project with a GDV of RM12 billion will transform the profile of the company’s property development business.

RHB Research said on Monday the development could also benefit the precast division, and Sunway REIT is given the ROFR on the future developments of Sunway Iskandar.

“News flow on the MRT jobs is likely to pick up in 1H2012. Even if it loses out, we believe it will still be able to secure external jobs, and downside is mitigated with the recurring flow of internal jobs,” it said.

RHB Research said the recurring income from the 37%-owned Sunway REIT will see a bumper growth in 2014 upon the completion of AEI works at Sunway Putra Place.

“Stripping out the valuations of Sunway REIT, Sunway is currently trading at only 7.0 times to 8.0 times. Considering the decent landbank profile, the implied market value of its landbank is only at about RM14 psf. We reiterate our Outperform rating with an unchanged fair value of RM3.15,” it said.



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

CIMB Research has technical buy on MEGB at RM1.06

KUALA LUMPUR (March 12): CIMB Equities Research has a technical buy on Masterskill Education Group at RM1.06 at which it is trading at a FY13 price-to-earnings of 9.6 times and price-to-book value of 0.8 times.

It said on Monday that MEGB, after it had violated the triangle support, the share price fell to a low of 97 sen before bouncing to current levels.

“We think that the 97 sen low would likely be its near term support. Hence, risk takers may consider taking some position here,” it said.

CIMB Research said the MACD histogram bars are falling at a slower pace, suggesting that buying momentum is slowly picking up. RSI has also recovered from the oversold territory.

“The immediate target to beat is RM1.16. Once this level is taken out, the bulls will likely charge towards RM1.24 and RM1.38,” it said.



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

CIMB Research has technical buy on MMHE at RM5.42

KUALA LUMPUR (March 12): CIMB Research has technical buy on Malaysia Marine and Heavy Engineering at RM5.42 at which it is trading at a FY13 price-to-earnings of 20.8 times and price-to-book value of 3.5 times.

It said on Monday the stock is penetrating the wedge resistance. If it succeeds, there is a good chance that prices may re-rate towards RM5.65 and RM5.78. Momentum should pick up once the candles swing past the 50-day SMA.

“The bullish divergence on the MACD indicator shows that selling pressure has tapered off. This, together with the rising RSI signal line, shows that the bulls are slowly making a comeback.

“As long as prices stay above the RM5.28 level, any pullback is an opportunity to accumulate,” CIMB Research said.



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

CIMB Research has technical buy on Tenaga at RM6.39

KUALA LUMPUR (March 12): CIMB Equities Research has a technical buy on Tenaga Nasional at RM6.39 at which it is trading at a FY13 price-to-earnings of 14.2 times and price-to-book value of 1.2 times.

It said on Monday Tenaga Nasional broke out of its triangle pattern on Friday.

“If the candles continue to hold on above the support-turned-resistance trend line, we expect the next upswing to lift prices towards RM6.78 and possibly even RM7.21. Currently, the stock is supported by all its key moving averages,” it said.

CIMB Research said the indicators are showing signs of improvement. MACD signal line is trading in the positive territory while RSI has also hooked upward.

“Aggressive traders may start to accumulate now while others should wait for a push above RM6.40 before going long. Put a stop at below RM6.13,” it said.



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

CIMB Research expects KLCI to be firm, upward bias

KUALA LUMPUR (March 12): CIMB Equities Research expects the FBM KLCI to be firm with an upward bias this week.

“The recently concluded major results season in Feb turned out to be less negative than we feared, which could signal a bottoming of the severe EPS cuts of the past few results seasons,” it said on Monday.

CIMB Research said that also, in line with its strategy of selling into strength ahead of a pre-election rally, it expects market conditions in the period ahead of the 13th general elections to be positive.

“Consensus view is for elections to be held in the May/June period during the school holidays. Pump priming, award of contracts and positive newsflow should be strong in this period, which is positive for equities,” it said.



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

Stocks to watch: HWGB, SKP, MSC, Gefung

KUALA LUMPUR (March 10): After a bumpy ride over the past week, which saw the FBM KLCI retracing the most in 2012, the market could receive a boost from firmer external developments, especially from the US markets.

Affin Investment Bank head of retail research, Dr Nazri Khan expected the KLCI to advance, underpinned by local projects newsflow, stronger US jobs data and rising optimism that Greece would avoid a disorderly default.

“Despite the last three days broad sell-off (Tuesday-Thursday), we generally view the distribution as a healthy correction to neutralise the overbought market condition (five months of KLCI uptrend with 12.5% gains since October 2011),” he said.

Nazri said based on his technical analysis, since the KLCI is holding above the 20, 50 and 200-day moving average is an indication the longer-term trend is still positive with KLCI aiming for 1,600 level as the ultimate near term target.

On Wall Street, for the week ahead, Reuters reported that US stocks may still sell off in the near term, but it's not likely to be a drastic decline.

Reuters said much of the optimism has come from signs of further improvement in the US economy. Friday's stronger-than-expected jobs report - the most widely watched U.S. economic indicator - gave the stock market more wind in its sails.

The S&P 500 ended the week with a gain of 0.1%, even though on Tuesday, it marked its weakest day so far in 2012 on concerns about a default by Greece on its country's debt.

Investors had also brushed aside Friday's news of a technical default by the country was mostly brushed aside by investors.

Reuters reported that while concerns about Greece aren't going away, the worst-case scenario has been averted, and the payroll report is another reason for investors to be confident.

As for Malaysia, among the stocks to watch on Monday are HO WAH GENTING BHD [] [] (HWGB), SKP RESOURCES BHD [], Malaysia Smelting Corp Bhd (MSC), GEFUNG HOLDINGS BHD [] and DIJAYA CORPORATION BHD [].

HWGB, whose shares had seen very active trade, said it is not in talks to sell its tin mining business for US$75 million (RM227 million) to Yunnan Tin Group.

HWGB said 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.

Meanwhile, The Edge weekly reported that the emergence of Dyson, the British innovative designer of electrical appliances, as a major new customer has launched a strong stream of earnings for SKP Resources.

MSC will rope in Optima Synergy Resources Ltd as a joint venture partner to undertake tin mining operations in Indonesia.

MSC 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 unit 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.

Gefung will not go ahead with the proposed joint venture for a mixed development project on 50.74 acres of land in east of Jakarta.

Gefung said 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”.

The Edge weekly reported that judging from the present share price movement, investors seem cautious about Dijaya’s proposal to acquire 73 PROPERTIES [] from major shareholder Tan Sri Danny Tan and family for an indicative consideration of RM948.7 million, mostly via the issuance of loan stocks.

BOUSTEAD HOLDINGS BHD [] sees its profit breaching the RM1 billion level within the next two years.

Deputy chairman/group managing director Tan Sri Lodin Wok Kamaruddin was quoted saying by Bernama that 2011 was a record year for the group.

“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,” he said.

Lodin said Boustead would remain focused on PLANTATION []s, financial services, property, manufacturing and trading, pharmaceuticals and heavy industries.

In FY Dec 31, 2011, Boustead posted a pre-tax profit of RM831 million, up 14.43% from the RM726.2 million in FY10.



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