West River Capital rejects TSM Global’s request for better offer

KUALA LUMPUR (March 13): West River Capital Sdn Bhd (WRC) has rejected TSM GLOBAL BHD []’s request for better offer terms including the price and this has seen the latter resolving to consider other offers.

TSM said on Tuesday that WRC’s offer price would remain at RM1.25 per share. However, WRC had agreed to extend the acceptance deadline for the offer from Tuesday to April 6.

“The board has also resolved to consider any other credible offers for the business and undertaking, including all assets and liabilities of TSM received by 5pm on Monday, April 2, 2012,” it said.

To recap, several parties owning a 28.07% stake in TSM Global had on Feb 28, offered to acquire all the business, including assets and liabilities, for RM159.24 million or RM1.25 per share.

WRC is a special purpose vehicle in which TSM directors Datuk Lim Kheng Yew and Lim Tze Thean own 60:40 of West River.

The RM159.24 million would be RM1.25 cash per TSM share held by the remaining entitled shareholders and a deferred amount of RM1.25 per TSM share for all the shares held by identified parties as an amount remaining due and owing by the offeror.

TSM had then said the cash portion would amount to RM114.54 million and the deferred amount was RM44.70 million.

In the latest development, TSM said on Tuesday that all offers must contain the structure of the offer including period of offer; purchase consideration and method of settlement; intention of the offeror with regards to the existing employees of TSM group of companies.

TSM said background information of the offeror would have to be provided, including details of all directors and shareholders of the offeror; parties acting in concert and/or connected with the offeror; background information of the transferee of the TSM business if it is not to the offeror (including ultimate shareholder of the transferee);

It also said the offeror would have to provide a plan of the TSM business for the next 12 months after completion of the proposed acquisition of its business.

TSM also stated that an offeror (including WRC) interested in submitting an offer on or before the offer deadline had to provide an earnest deposit of RM500,000 which would only be refunded if the board/shareholders of TSM reject the offer.



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Gas Malaysia seeks 6-month extension until Oct 6 for listing

KUALA LUMPUR: Gas Malaysia Bhd is seeking a further extension of six months until Oct 6 from the Securities Commission to complete the proposed listing exercise.

MMC CORPORATION BHD [] said on Tuesday that Maybank Investment Bank Bhd had, on behalf of Gas Malaysia, submitted an application to the SC for its approval for the six-month extension.

“Notwithstanding the above and as announced on Feb 17, 2012, MMC Corp was advised by Gas Malaysia that the proposed listing is expected to be completed by the second quarter of 2012,” it said.



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PT Inovisi Infracom takes up 9.09% stake in Nextnation?

KUALA LUMPUR (March 13): PT Inovisi Infracom Tbk of Indonesia is believed to have taken up a 9.09% stake in NEXTNATION COMMUNICATION BHD [] under the latter’s private placement exercise.

A filing with Bursa Malaysia on Tuesday showed that Anguilla-registered Great World Ltd – believed to be a subsidiary of Inovisi Infracom – had taken up the block of 41.58 million shares.

The issue price for the placement of 41.58 million new Nextnation was 11.5 sen per placement share. This was about 6% above the five-day volume weighted average market price of Nextnation shares up to and including March 1 of 10.85 sen.

Nextnation’s core business is to provide end-to-end mobile application services connecting to 500 mobile networks, supporting thousands of developers and distributors.

Great World Ltd is an information TECHNOLOGY [] company which is based in Malaysia. As of Nov 15, 2010, Great World Ltd operates as a subsidiary of Inovisi Infracom, which is based in Jakarta.

According to Inovisi Infracom’s website, it is a diversified infrastructure investment holding company with business in telecommunication, energy & resources, oil & gas, power electricity & engineering, shipping & logistic, real estate investments, toll road concessions, Internet, media and e-commerce businesses.



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IJM buying 20% of West Coast Expressway for RM6.75m

KUALA LUMPUR (March 13): IJM CORPORATION BHD []’s unit is buying a 20% stake in West Coast Expressway Sdn Bhd for RM6.75 million cash to ensure a share in the proposed west coast expressway project.

IJM said on Tuesday, its unit Road Builder (M) Holdings Bhd had signed a sale and purchase agreement to acquire the stake, comprising of 5.809 million shares, from Prominent Xtreme Sdn Bhd.

To recap, on Jan 26, WCE had received an approval letter from the Public Private Partnership Unit of the Prime Minister’s Department for WCE to undertake the proposed privatisation of the CONSTRUCTION [] of the expressway.

The expressway will be constructed on a build-operate-transfer with a concession period of 60 years.

WCE is an 80% subsidiary of KUMPULAN EUROPLUS BHD [], in which IJM has a 22.72% stake.



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Che Khalib: Govt will find best solution for compensation issue

KUALA LUMPUR (March 13): TENAGA NASIONAL BHD [] is confident the government will find the best solution to resolve the compensation issue for the benefit of all, said President and Chief Executive Officer Datuk Seri Che Khalib Mohamad Noh.

"We are looking for a solution to the problem. All the parties concerned understand. I don't think we have to worry. For sure, Tenaga believes that the government will find the best solution for the benefit of every party involved," he told reporters after launching TNB WWF-Malaysia Earth Hour 2012 Awareness Campaign.

Meanwhile, Chairman Tan Sri Leo Moggie said the issue would be resolved by the government.

"The government has a role to determine the method and the payment for the gas price to ensure continued supply of electricity in the country," he said, adding that the utility company had expressed its views during discussions with the government.

"The government is also sensitive towards the electricity supply issue … how it should ensure the supply at all times and at a price that is comfortable to consumers.

"So, this matter is part and parcel of the issue that the government has to analyse. It's not the stance of one party only. This is not between TNB and Petronas. The government will resolve the matter," Moggie added.

Last week, Petronas said it would not pay any more compensation to Tenaga for the cost of alternative fuel used by the national power utility company.

Petronas said that the payment of RM1 billion was supposed to be a "one-off" affair and it had never mentioned that it was going to be a continuous handout to the utility company.

On the TNB WWF-Malaysia Earth Hour 2012 Awareness Campaign, aimed at creating awareness among Malaysians on the significance of "Earth Hour"”, Moggie said it would not be a success without the participation of the Malaysian public.

As such, Moggie said Tenaga would like to invite and encourage all Malaysians to visit its selected customer service centre and pledge their support for Earth Hour and consequently turn off their lights for one hour at 8.30pm on March 31.

Moggie said the data on electricity consumption during the one hour Earth Hour "switch off" for the last three years showed a fall in public participation with 2011 showing electricity consumption dropping by only 113 MW compared with 203 MW in 2010 and 550 MW in 2009. - Bernama



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Ramunia secures RM23.6m contract for support structures

KUALA LUMPUR (March 13): RAMUNIA HOLDINGS BHD []’s unit has secured a RM23.62 million contract from Aquaterra Energy Ltd to fabricate two wellhead support structures.

It said on Tuesday, its unit Ramunia Fabricators Sdn Bhd had received the letter of award to fabricate two subsea structures, one topside structure and a boat landing site for the West Desaru project.

“The contract value is RM23.62 million and the target load out date of the works is July 31, 2012,” it said, adding the contract would contribute positively towards the earnings of Ramunia Fabricators for FY ending Dec 31, 2012.



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Sin Hen Chan share price surges, prompts Bursa query

KUALA LUMPUR (March 13): Shares of SIN HENG CHAN (MALAYA) BHD [] surged on Tuesday, prompting a query from Bursa Malaysia securities over the unusual market activity.

Its share price closed up 29.5 sen to RM1.10 with 8.48 million units done.

However, the 30-stock FBM KLCI slipped into the red, down 0.73 of a point to 1,564.02. Turnover was 1.16 billion shares valued at RM1.47 billion. Losers beat gainers 469 to 288 while 329 counters were unchanged.

Bursa Securities had queried the company over the sharp increase in price and high volume in the shares on Tuesday.

The regulator also queried the company whether there was any corporate development relating to the group’s business and affairs that has not been previously announced that may account for the unusual market activity.

It also asked the company whether there was any rumour or report concerning the business and affairs of the group that may account for the unusual market activity.



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KLCI slips into the red at closing

KUALA LUMPUR (March 13): The FBM KLCI slipped into negative territory in late trade on Tuesday, weighed by losses at select blue chips including banking stocks, MISC and Tenaga as the pullback from Monday did not seem to be over as investors turned cautious.

The FBM KLCI closed 0.73 of a point lower at 1,564.02. Losers beat gainers by 469 to 288, while 329 counters traded unchanged. Volume was 1.16 billion shares valued at RM1.47 billion.

At the regional markets, the Shanghai Composite Index fell 0.19% to 2,434.86. However, Hong Kong’s Hang Seng Index rose 0.97% to 21,339.70, Japan’s Nikkei 225 added 0.09% to 9,899.08, Singapore’s Straits Times Index 0.89% to 2,988.57, South Korea’s Kospi 1.13% to 2,025.04 and Taiwan’s Taiex 1.31% higher at 8,031,51.

European shares gained on Tuesday on hopes German and U.S. data will support rising hopes of an economic recovery ahead of a monetary policy statement by the Federal Reserve, according to Reuters.

Among the decliners on Bursa Malaysia, United PLANTATION []s fell 16 sen to RM24.82, MISC, Tasek, Advanced Packaging, lost 15 sen each to RM5.10, RM8.60 and RM1.30 while Tenaga was down 13 sen to RM6.32.

BLD Plantations and Panasonic lost 12 sen each to RM9.18 and RM22.08, while Padini and Oriental Holdings fell 11 sen each to RM1.45 and RM6.13.

Among banking stocks, Public Bank fell eight sen to RM13.66, BIMB down six sen to RM2.27, Hong Leong Bank four sen to RM12.10, CIMB three sen to RM7.26 and RHB Capital one sen to RM7.79.

Naim Indah Corp was the most active with 176.5 million shares done. The stock fell four sen to 78.5 sen.

Other actives included IFCA MSC, Takaso, Winsun, YTL, HWGB, Silver Bird, and XDL.

Meanwhile, gainers included BAT, Sin Heng Chan, Euro Holdings, TSH, Petronas Chemicals, Tradewinds Plantations and Manulife.



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TSH up on firmer CPO prices, higher earnings ahead

KUALA LUMPUR (March 13): Shares of TSH RESOURCES BHD [] rose on Tuesday, riding on the upward trend in the crude palm oil futures prices despite the weakening broader market.

At 3.57pm, TSH was up 13 sen to RM2.32. There were 1.44 million shares done.

The FBM KLCI was just 0.04 of a point higher at 1,564.79. Turnover was 899.56 million shares valued at RM1.032 billion. Losers beat gainers 467 to 231 while 339 counters were unchanged.

Meanwhile, CPO futures for May delivery rose RM44 to RM3,360 per tonne.

Analysts were maintain a buy on TSH with a higher fair value of RM2.60 a shares compared with RM2.10 a share previously based on a FY12F price-to-earnings of 15 times. TSH’s historical seven-year PE band ranged from a low of 4.0 times to a high of 28 times.

“TSH’s FY11 results were in line with our expectations and consensus estimates. Our FY12F earnings estimates for TSH are relatively unchanged.

“Going forward, we have forecast that TSH’s net profit would climb 20% in FY12F, underpinned by a 26% increase in fresh fruit bunches production,” said Amresearch.



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Mudajaya up amid broader cautious market

KUALA LUMPUR (March 13): Shares of MUDAJAYA GROUP BHD [] were traded higher in the afternoon session on Tuesday despite the market turning cautious as the recent Tanjung Bin contract and strong earnings supported its share price.

At 3.36pm, Mudajaya was up 10 sen to RM3.19. There were 2.31 million shares done at prices ranging from RM3.07 to RM3.20.

The FBM KLCI was just up 0.93 of a point to 1,565.68. Turnover was 819.13 million shares valued at RM910.89 million. There were 228 gainers, 438 losers and 352 stocks unchanged.

OSK Research had in a recent report said the CONSTRUCTION [] company’s FY11 FY11 net profit of RM231 million came in within its and consensus estimates, aided by a favourable tax rate of 5.8%.

At the pretax level, earnings lagged both estimates by 21.1% and 12.3% respectively, owing to lower construction margins recognised and start-up expenses for its associate.

Mudajaya had also secured the RM1 billion civil works contract of the Tanjung Bin plant extension.

“Maintain BUY with our FV marginally lowered to RM3.88,” said OSK Research.



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UOB Kay Hian Research lowers consumer sector to market weight

KUALA LUMPUR (March 13): UOB kay Hian Malaysia Research is downgrading the consumer sector to Market Weight from Overweight as valuations of consumer stocks under its coverage appear fully valued.

It said on Tuesday these stocks had rallied 8%-20% since December 2011, with the sector trading at about one standard deviation above the historical average.

“We also do not anticipate any exciting corporate developments in the near term. (Recall in 2011, KFC Holdings (KFC) was proposed to be privatised, and Guinness Anchor (GAB) paid out a special dividend),” it said.

UOB Kay Hian Research said the present market climate remained supportive, pointing out that valuations were “not too hot” and earnings growth was moderating but not turning cold.

“The sector remains defensive as the anticipated strong consumption growth in 2012 plus good pricing power (which offsets some increases in raw material cost) ensure decent dividend yield of 2%-5%,” it said.

The research house said the consumer sector continues to be a beneficiary of fiscal stimulus, announced hefty 7%-13% pay hikes for civil servants for 2012, general election and special events (UEFA Euro Cup 2012 which will boost brewery consumption).

On its move to reduce the sector to Market Weight, it said this was to reflect fair valuations and moderate earnings growth prospects.

"Our stand also reflects our Sell call on KFCH as its price upside is limited by the takeover offer price (RM4) by Massive Equity Sdn Bhd while the completion of the privatisation exercise appears being delayed with the master franchisor, Yums! reportedly being reluctant to approve the deal.

“Among the segments, we still prefer brewery which should benefit from the imminent modest 3%-4% price hikes, low capex requirements and healthy volume growth (estimated 5% in 2012),” it said.

UOB Kay Hian Research said its preferred pick was Guinness Anchor (Hold, target: RM12.80), which continued to appeal for its steady market share gain, decent net effective yield of 4.7%, and likely distribution of a second tranche of special dividend (estimated 60 sen a share) which would most probably take place in FY13.

It raised its target price to RM12.80 from RM12.50 to account for the higher beer prices.



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Golden Knights Intl emerges as Gefung substantial shareholder

KUALA LUMPUR (March 13): Bahamas-registered Golden Knights International Ltd has emerged as a substantial shareholder in GEFUNG HOLDINGS BHD [] with a 5.11% stake or 13.50 million shares.

A filing with Bursa Malaysia showed that it accepted its entitlement of 7.5 million shares under a rights issue on Jan 20, 2012.

Gefung processes marble and granite products.



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KLCI stays in the black at mid-day

KUALA LUMPUR (March 13): The FBM KLCI stayed in positive territory at the mid-day break on Tuesday, in line with the modest gains at key regional markets.

The FBM KLCI was up 2.24 points to 1,566.99 at the mid-day break. However, the broader market turned weaker with losers overtaking gainers by 355 to 241, while 246 counters traded unchanged. Volume was 484.42 million shares valued at RM528.11 million.

The ringgit strengthened 0.28% to 3.0233 versus the US dollar; crude palm oil futures for the third month delivery rose RM28 to RM3,348 per tonne, US light crude oil added 59 cents per barrel to US$106.93, while gold gained US$2.18 an ounce to US$1,703.50.

Meanwhile, Asian stocks rose to their highest in a week, while the dollar hovered below an 11-month high against the yen on Tuesday, supported by recent signs of improvement in the U.S. economy, ahead of a policy decision by the Federal Reserve, according to Reuters.

Bank of Japan's policy meeting, which began on Monday, will also remain in focus. The bank is expected to hold rates as the economic outlook and risks have not changed much since its last meeting nearly a month ago, it said.

A the regional markets, Japan’s Nikkei 225 gained 0.40% to 9,889.86, Hong Kong’s Hang Seng Index added 0.23% to 21,134.10 and the Singapore Straits Times Indx0.11% to 2,966.55.

However, the Shanghai Composite Index shed 0.19% to 2,434.86, Taiwan’s Taiex fell 1.10% to 7,927.55 and South Korea’s Kospi was down 0.78% To 2,002.50.

BIMB Securities Research in a note on Tuesday said investors would remain sidelined attributed to the lack of fresh catalysts especially after the 14 point decline on the KLCI on Monday.

Now that a Greece tragedy has been averted, attention will now be fixed on the fundamentals and economic progress of both the US and Eurozone, it said.

Following the rather sharp 14 point decline to just below the 1,565 support level on Monday, BIMB Research said it had expected some reversal on Tuesday and that the KLCI might test the immediate 1,570.

On Bursa Malayasia, BAT was the top gainer and rose 80 sen to RM52.80, TAHP 20 sen to RM5, Tradewinds PLANTATION []s 16 sen to RM4.71, Manulife, Sin Heng Chan and Petronas Chemicals rose 13 sen each to RM3.52, RM93.5 sen and RM6.69 respectively, GAB eight sen to RM13.38 and TSH seven to RM2.26.

Naim Indah Corp was the most active with 68.9 million shares done. The stock fell half a sen to 72 sen.

Other actives included Winsun, YTL, Takaso, Tiger Synergy, XDL, Sanichi, Sumatec and HWGB.

Decliners included Nestle, Theta warrants, Allianz warrants, United Plantations, MISC, Shell, Orient, BLD Plantations, Tradewinds and Southern Steel.



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CIMB Economics Research: Developed economies on recovery path

KUALA LUMPUR (March 13): Developed economies are on the recovery path, lifting the optimistic sentiments of a global recovery, as the OECD composite leading index (CLI) posted its third consecutive months of gains in January.

CIMB Economics Research said on Tuesday that however, the indicators for China and Asean reaffirmed its expectations of slower but respectable growth rates.

In its economic outlook, it said the OECD CLI growth was gaining momentum after rising 0.4 of a point in January 2012 (up 0.3 in December, up 0.2 in November).

As for the US and Japan CLIs, there were four straight months of positive growth, presaging more heartening economic conditions ahead.

It pointed out that even the debt-plagued 17-nation Eurozone registered a 0.2 point increase, the second month of expansion that snapped 10 months of negative month-on-month changes.

“The CLIs for the emerging economies show a less decisive course, though we continue to predict a slower, albeit respectable, growth rate,” it said.

CIMB Economics Research said the factors were that China’s CLI continues to point to below-trend growth as its exports and industrial production loses steam.

As for India, its CLI showed stronger signs of a positive change in growth momentum.

The research house said the Asian Business Cycle Indicators (ABCIs) show weak growth momentum in most Asean economies, albeit with some signs of improvement.

“Despite these and other encouraging global data as well as positive policy developments helping to calm waters in Europe and US, we remain cautious as tail risks remain,” it said.

Among the concerns were: 1) tensions in the Middle East which could trigger a global oil price shock; 2) unresolved uncertainty with regards to the Eurozone’s sovereign debt saga that will sap confidence; 3) high joblessness and concomitant impact on consumer spending in the advanced economies; 4) fiscal cutbacks in developed economies that dampen, if not eliminate, growth; and 5) potentially destabilising capital flows in emerging economies.



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KLCI drifts higher at mid-morning

KUALA LUMPUR (March 13): The FBM KLCI drifted slightly higher, lifted by select blue chips at mid-morning on Tuesday in line with the limited gains at key regional markets.

Meanwhile, at the regional markets most market players were on the sidelines awaiting the outcome of a Federal Open Market Committee meeting later in the day, according to Reuters.

The FBM KLCI added 2.47 points to 1,567.22 at 10.05am. Gainers led losers by 198 to 187, while 276 counters traded unchanged. Volume was 252.62 million shares valued at RM166.43 million.

At the regional markets, Japan’s Nikkei 225 rose 1.14% to 10,002.90, Hong KONG’s Hang Seng Index added 0.77% To 21,297.40, the Shanghai Composite Index edged up 0.05% to 2,436.08, Taiwan’s Taiex gained 0.82% to 7,992.51, South Korea’s Kospi was up 1.15% to 2,025.52 and Singapore’s Straits Times Index added 0.52% to 2,977.65.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients said the resistance areas of the KLCI at 1,564 and 1,583 would cap market gains, whilst the weaker support areas were at 1,540 and 1,559.

“Despite the US markets’ rebound last night, we could be in for a weaker day locally,” he said. The KLCI fell 14.25 points to close at 1,564.75 on Monday.

On Bursa Malaysia, BAT was the top gainer, up 40 sen to RM52.40, Ekovest added 15 sen to RM2.75, Sin Heng Chan gained 13.5 sen to 94 sen, LPI Capital 10 sen to RM13.66 and Tradewinds PLANTATION []s nine sen to RM4,64.

Petronas Chemicals and GAB up eight sen each to RM6.64 and RM13.38, Vintage 7.5 sen to 13 sen, Axiata six sen to RM5.10 while Hoover added five sen to 36 sen.

Naim Indah Corp was the most active with 52.94 million shares done. The stock fell half a sen to 72 sen.

Other actives included Winsun, Takason, Tiger Synergy, XDL, Sanichi and Sumatec.

Decliners included Theta warrants, Allianz warrants, UAC, MISC, Carlsberg, tradewinds, Johore Tin, BLD Plantations, AMMB and Hong Leong Bank.



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AsiaEP Resources major shareholder calls for EGM

KUALA LUMPUR (March 13) : asiaEP Resources Bhd’s major shareholder Tian Ee Intertrade Sdn Bhd has made a requisition for an EGM following the company’s decision to terminate its planned private placement, the firm said in statement to Bursa Malaysia on Tuesday.

asiaEP had planned to undertake a private placement of 90 million new shares to raise RM9 million. The money is intended to finance the CONSTRUCTION [] of bioethanol processing plants in conjunction with letter of award which was entered into between the company and Lestari Pasifik Bhd on Oct 5 last year.

But the deal was called off in February this year, resulting in the termination of the proposed private placement. Trading of asiaEP shares was suspended between 9am and 10 am on Tuesday.

The stock closed at 8.5 sen on Monday.



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Transport Minister: No info on status of MAS-AirAsia share swap

KUALA LUMPUR (March 13): The Transport Ministry said it has no information on the latest on the AIRASIA BHD []-MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) share swap deal.

Speaking at the sidelines of the 6th World Cargo Symposium, Transport Minister Datuk Seri Kong Cho Ha said on Tuesday that he had yet to receive any decision or reports on the development of the matter.

Asked if the share swap deal was not final, Kong said: "That is a decision that has to be made by the related companies and Khazanah (Nasional Bhd). I can't comment anything now because I don't have any information.”

"What I know is the MoT has not received any information that the deal has been cancelled," he said.

On the recent cutting of routes with the latest by AirAsia X to Christchurch, Kong said it was a business decision of the airline.



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HDBSVR: Market may trade sideways with slight downward bias

KUALA LUMPUR (March 13): Hwang DBS Vickers Research said the FBM KLCI, after falling 0.9% or 14 points on Monday, could trade sideways today with a slight downward bias as investors continue to remain cautious on the current fragile global economic situation.

HDBSVR said that Italy has announced a contraction of 0.7% in its economy in 4Q11 while China has also posted its largest trade deficit for 22 years.

On Wall Street, major US equity indices ended Monday on a mixed note, trading between -0.2% to 0.3% as market volume declined 16% from March 9.

This follows a quiet market backdrop as investors await more news flow from the euro zone, with finance ministers gathering in Brussels to sign off a 130 billion euro second package for Greece.

As for stocks on Bursa Malaysia, stocks that could be of interest include: (a) YTL Power, with media reports stating that its subsidiary, YTL Communications, is in the process of implementing the RM1.5 billion 1Bestarinet project; (b) PFCE, after proposing to acquire PFC Engineering for RM300 million from DAT Group to expand further into the oil and gas industry; and (c) Kimlun Corp, which has won two contracts worth RM152 million for real estate deals in Johor Baru.



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RHB Research maintains Market Perform on YTL Power, unch FV RM2

KUALA LUMPUR (March 13): RHB Research Institute is maintaining its Market Perform call on YTL Power with an unchanged sum-of-parts derived fair value of RM2.00 for now pending official confirmation that it had secured the government’s 1Bestarinet project.

It said on Tuesday, quoting The Edge Financial Daily, that the project (worth RM1.5 billion over five years but could be worth RM4.5 billion if extended to 15 years), is in the process of being implemented by YTL Communications Sdn Bhd (YTL Comms), a 60% owned subsidiary of YTL Power.

“Although no official announcement has been made, we are surprised to learn that YTL Comms has already rolled out the service to a number of schools in the Klang Valley, having starting since December 2011,” it said.

RHB Research said to recap, YTL Comms had appeared as the winner of the project, according to a posting on the Ministry of Education website but this was taken down very quickly a few hours later.

The project involves providing Internet access and a virtual learning platform to 9,924 schools across the country.

“This development is a surprise, but nonetheless positive for YTL Power as the 1Bestarinet project allows YTL Power to monetise its relatively new and somewhat under-utilised WiMAX network, which has about 300,000 subscribers only,” it said.



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CIMB Research has technical sell on Carlsberg at RM10.50

KUALA LUMPUR (March 13): CIMB Equities Research has a technical sell on Carlsberg Brewery at RM10.50 at which it is trading at a FY13 price-to-earnings of 16.7 times and price-to-book value of 5.1 times.

It said on Tuesday that prices have been rising steadily since September. However, with the recent smaller candles, we see a slowdown in upward momentum.

“The bearish divergence on its MACD and RSI also calls for bulls to be extra cautious. The overbought RSI also supports the view that there is a good chance for the stock to retrace from here,” it said.

CIMB Research said it would be looking for a break below RM10.28 to confirm the reversal, which could send prices falling towards RM9.25 and RM8.43-8.55 next.

The research house said as long as the RM10.78 level is not breached. Otherwise, the rally could extend for a while longer before terminating.



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CIMB Research has technical sell on Maxis at RM5.94

KUALA LUMPUR (March 13): CIMB Equities Research has a technical sell on Maxis at RM5.94 at which it is trading at a FY13 price-to-earnings of 19.2 times and price-to-book value of 5.5 times.

It said on Tuesday there is a chance that the uptrend from mid-November is coming to a temporary end. The stock has pulled back from the February high to its uptrend channel support.

CIMB Research said a break below this channel support at RM5.86 on high volume would bring up the question of the end of the uptrend.

“Indicators are still showing weakness, which would allow the bears to continue to dominate. Traders should wait for a break below RM5.86 before selling.

“Otherwise, the stock could still push on to retest the February high. A break below RM5.84 would see prices fall towards RM5.56 and even RM5.15,” the research house said.



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CIMB Research has technical sell on Telekom at RM5.10

KUALA LUMPUR (March 13): CIMB Equities Research has a technical sell on Telekom Malaysia at RM5.10 at which it is trading at a FY13 price-to-earnings of 19.6 times and price-to-book value of 2.6 times.

It said on Tuesday the rally in Telekom could be at its tail end or even ended. Prices tested the key resistance trend line last week and prices reversed soon after.

“With its indicators showing slowing momentum, the chances of higher prices is lower at least in the short term. We expect a setback from here,” it said.

CIMB Research said the stock is a short term sell with a stop placed above RM5.25. Prices are expected to pullback towards the RM4.71-RM4.81 levels where support currently lies.

“The moving averages around RM4.93-RM4.98 may also offer some support. A break below RM4.71 would suggest that the longer term trend has also changed,” it said.



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CIMB Research maintains Hong Leong Bank target price at RM11

KUALA LUMPUR (March 13): CIMB Equities Research said Hong Leong Bank’s proposed sale of MIMB Investment Bank is not a surprise given the bank’s wish to focus purely on commercial and Islamic banking.

It said on Tuesday that since MIMB is expected to be sold at its book value, the deal will be neutral for the group.

“The sale of MIMB, which provides minimal earnings to Hong Leong Bank, does not alter our cautious stance on the banks’ prospects. It remains a Sell given its below-industry loan growth and above-sector P/E,” it said.

CIMB Research said it still tags a 10% discount to its DDM value and its target price remains at RM11.



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Stocks to watch: Kimlun, PFCE, SIG Gases, Gamuda

KUALA LUMPUR (March 13) : The Malaysian stock market which saw a downward correction on Monday, is likely to find support on Tuesday from a still-liquid market amid positive domestic news flow ahead of the country’s impending general election .

Analysts said the existing uptrend in the FBM KLCI was still intact as the domestic backdrop is still flush with liquidity and foreign funds are still pouring into the local market.

“The FBM KLCI still has more legs” TA Securities Holdings Bhd head of research Kaladher Govindan wrote in a note on Monday.

On Monday, news of China’s economic slowdown dragged Asian stock markets lower. These include updates that the world’s second largest economy’s exports growth coming in at 18.4% in February, way below street estimates of a 31.1% expansion, according to Bloomberg.

A slowdown in China does not bode well for Asian exporting countries where stock indices had reacted negatively to the updates.

Japan’s Nikkei 225 which fell 0.4% to 9,889.86 and Taiwan’s Taiex which was down 1.1% to 7927.55 and Singapore’s Straits Times Index retreated 0.03% to 2962.18. The FBM KLCI of 30 blue chip stocks fell 0.9% or 14.25 points to close at 1,564.75.

Stocks to watch on Tuesday include Kimlun Corp Bhd, PFCE Bhd, SIG Gases Bhd, GAMUDA BHD [], MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and AIRASIA BHD [].

Kimlun Corporation Bhd has secured two contracts worth RM151.61 million for housing projects in Johor Bahru.

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.

Ceramic products maker PFCE is acquiring the entire equity interest in its single largest shareholder PFC Engineering Sdn Bhd for RM300 million under an all share deal which will transform the acquirer into an oil and gas support services provider. PFC Engineering owns 40% of PFCE.

Shares of PFCE last closed at 70 sen on Friday, prior to the suspension of the stock’s trading on Monday. PCFE will resume trading on Tuesday.

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.

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.

RHB Research Institute Sdn Bhd had reduced its fair value for Gamuda shares by 2.8% from RM3.89 to RM3.78. The downward revision factors in potential earnings from the Klang Valley Mass Rapid Transit project into the research firm’s valuation for Gamuda’s construction business, RHB said. Gamuda shares, however, rose three sen to RM3.70.

The Edge weekly, quoting sources, reported that the share swap between the major shareholders of MAS and AirAsia could be unraveled following resistance from the Malaysian Airline System Employees’ Union. MAS shares declined two sen to RM1.36 on Monday while AirAsia fell four sen to RM3.59.



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