Zelan subsidiary lands RM307m Gombak transport terminal project

KUALA LUMPUR (March 15): ZELAN BHD []’s 95%-owned Terminal Bersepadu Gombak Sdn Bhd (Tegas) has secured a 25 year and three months concession from the government for the Gombak Integrated Transport Terminal.

It said on Thursday that Tegas would undertake the project on a build-lease-manage-operate-transfer basis via the public private partnership.

The project would comprise of a seven storey terminal complex and related facilities next to the existing Gombak LRT station.

Zelan said the CONSTRUCTION [] period was 27 months and the total construction cost was about RM307.37 million.

The terminal would be the transportation hub to take over the existing operations of the eastbound intercity buses and taxis as well as intracity buses and taxis for Klang Valley. It would also be a temporary hub for the operations of the northbound intercity buses and taxis.

Zelan said the government had also awarded Tegas the contract to undertake the Taman Melati road upgrading and the Middle Ring Road 2 upgrading.

The government would pay Tegas RM64.18 million after it had issued the certificate of acceptance, confirming the completion of the construction.

The government would also pay RM3.11 million every month during the concession period for carrying out the construction, operating the facilities and for asset management services.



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Kinsteel streamlining downstream ops, one-off costs of RM9m

KUALA LUMPUR (March 15): KINSTEEL BHD [] is streamlining its downstream business operations, especially its 51% owned Perfect Channel Sdn Bhd, which has been affected by weak steel prices and rising material costs.

Kinsteel said on Thursday that Perfect Channel’s core activities were manufacturing and trading of steel beams, bars, wire rods and other steel products.

However, over the past few years, Perfect Channel was affected by weaker-than-expected global steel demand and rising material costs and also higher transportation cost for the raw.

“Hence, the streamlining of business operations is a strategic move to consolidate Kinsteel group’s downstream business which is in line with Kinsteel group’s on-going cost savings exercise across its industry value chain,” it said.

The streamlining, it said, would reduce the group’s turnover but it would not have a material adverse impact on the profitability in the future.

“Hence, the group expects a one off cost of approximately RM9 million to compensate its existing staff and workers affected by the streamlining of business operations,” it said.



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Hock Lok Siew chairman resigns, cites pressure over court case

KUALA LUMPUR (March 15): Hock Lok Siew Corporation Bhd chairman Ooi Chieng Sim resigned on Thursday, due to health reasons arising from a court case.

A statement to Bursa Malaysia said Ooi, 42, had resigned as advised by his family and personal doctor due to pressure and stress arising from the court case with MALAYAN BANKING BHD [].

The case was in relation to the corporate guarantees amounting to RM31.25 million.

Hock Lok Siew said Ooi is the managing director and shareholder in Hock Lok Siew Realty Sdn Bhd, a major shareholder of the company.



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KLCI closes higher in late push, buoyed by CIMB

KUALA LUMPUR (March 15): The FBM KLCI closed higher in late buying on Thursday, underpinned by gains in CIMB and Maybank amid volatile trading.

The KLCI rose 3.67 points or 0.2% to finish at 1,579.38. Turnover was 1.36 billion shares worth RM1.73 billion while the broader market was cautious, with 296 gainers versus 443 decliners while 367 stocks were unchanged.

Worries about the Chinese growth outlook limited gains in Asian markets. This saw the local equities paring gains during the day before recouping losses to finish higher. The KLCI reached an intraday high of 1,579.45at 9.26am before retreating to the day’s low of 1,574.59 at noon.

Among the key regional markets, Japan’s Nikkei 225 rose 0.72% to 10,123.28 and Hong Kong’s Hang Seng Index added 0.21% to 21,353.53.

South Korea’s Kospi slipped 0.06% to 2,043.76, Singapore’s Straits Times Index0.02% lower at 3,025.84 and Shanghai’s Composite Index 0.73% lower at 2,373.77.

Crude palm oil third-month futures rose RM24 to RM3.402, the highest since June 2011. US light crude oil added 32 cents to US$105.75 while Brent crude rose above US$125.

At Bursa Malaysia, CIMB rose 17 sen to RM7.57, pushing up the KLCI by 2.99 points while Maybank added six sen to RM8.67, nudging the index up by 1.06 points. RHB Capital rose eight sen to RM7.90.

YTL added seven sen to RM1.80, YTL Power four sen to RM1.81, Axiata three sen to RM5.15, Telekom two sen to RM5.15 and Maxis two sen also to RM5.96.

Aeon Credit added 38 sen to close at RM8.73, YHS 14 sen to RM2.60 while Top Glove’s strong earnings saw its share price climb 12 sen to RM4.92.

Among decliners, PETRONAS GAS BHD [] lost 38 sen to RM16.60 while NESTLE (M) BHD [] fell 30 sen to RM56.

Most active was Tiger Synergy Bhd which closed flat at 15 sen with some 104 million shares done.



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Selangor Dredging plans housing project with RM150m GDV in Gombak

KUALA LUMPUR (March 15): SELANGOR DREDGING BHD [] plans to launch a housing project with an estimated gross development value of RM150 million in Gombak.

It is buying three pieces of leasehold land measuring nearly 36,000 sq metres from Superior Dignity Sdn. Bhd for RM34.50 million. The leases of the land to be acquired will expire between 2069 and 2071.

“Selangor Dredging’s unit SDB PROPERTIES [] Sdn Bhd has initiated application for a development order (DO) to develop the said lands with 79 units of superlink terraces and 35 units of medium cost apartments. The valid DO has yet to be obtained from the relevant authorities,” it said.

It said the pieces of land were located in the centre of the Melawati communities and surrounded by amenities including Jusco Shopping Centre, Giant and Carrefour Hypermarket, Ampang Point, Melawati Urban Square and KLSC 2.



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Prepaid service tax in July?

KUALA LUMPUR (March 15): Rumour has it that the government may have finally decided to allow telecommunications companies (telcos) to pass on the six percent service tax to prepaid subscribers, HLIB Research says.

"It is understood that the Malaysian Communications and Multimedia Commission (MCMC) has issued a memo to all the industry players instructing the telcos to be technically prepared for the launch on July 1," said the research house today.

"Coupled with the broadband tax incentive implemented last year, this will further enhance telcos' earnings in the longer term," it said, maintaining a neutral rating on the telecommunications sector.

The research division of Hong Leong Investment Bank (HLIB) said it expected DiGi to benefit the most if this rumour was to materialise considering that it had the highest proportion (86.6 per cent) of prepaid users to total subscribers base, compared to Maxis (74 per cent) and Celcom (77.2 per cent).

Based on its estimation, DiGi, Maxis and Celcom would enjoy earnings uplift of six per cent, four per cent and two per cent respectively, provided competition and usage remain status quo. – Bernama



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MISC near RM5 level on weak outlook

KUALA LUMPUR (March 15): Shares of MISC BHD [] fell on Thursday as the outlook was weighed down by concerns about more losses from its tanker division.

At 2.48pm, MISC was down 14 sen to RM5.04 with 1.549 million shares done.

The FBM KLCI was just 0.67 of a point higher at 1,576.38. Turnover was 752.91 million shares valued at RM780.31 million. There were 233 gainers, 390 losers and 342 stocks unchanged.

CIMB Equities Research had in a Feb 23 report lowered the target price for MISC to RM4.80 from RM5.80 then. It had lowered its target price-to-book value from 1.2 times to 1.0 times which was closer to its peers.

The research house said for 2012-13, it expected losses from the tanker division to expand further as the 10 very large crude carriers that are currently on profitable term charters will expire in the next one to two years. When renewed, these vessels are likely to turn in losses.

“On a more positive note, 2012 will see the two converted Modular Capture Vessels commence their 20-year contract in the United States and two DP aframax tankers begin their 15-year charter for Petrobras. These long-term charters will provide a fixed stream of income for MISC,” said CIMB Research.



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Eversendai expects new projects to account for 25% of revenue

KUALA LUMPUR (March 15): Eversendai Corporation Bhd expects to see a 25% contribution to its revenue from new project ventures in five years.

"All the new ventures will be related to our core business, but nothing is finalised yet," said group executive chairman and group managing director, Datuk A.K. Nathan at an analyst briefing on Thursday.

One of the new ventures Eversendai is looking at is the fabrication portion of the oil and gas industry.

As of Feb 29, the group said it had secured new contracts worth RM467 million.



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EPF sells 5m YTL Corp shares

KUALA LUMPUR (March 15): The Employees Provident Fund Board disposed on five million YTL CORPORATION BHD [] shares on March 12.

A filing with Bursa Malaysia showed the board’s shareholding was reduced to 750.12 million shares or 7.74% after the latest disposal.

Its share price closed at RM1.66 on that day.

Another filing showed the EPF disposed of 207,600 shares of YTL POWER INTERNATIONAL BHD [] on March 12.

The disposal reduced its shareholding to 675.54 million shares or 9.3%.



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Flash: Top Glove 2Q net profit jumps 110% to RM53.4m

KUALA LUMPUR (March 15) : Top Glove Corp Bhd’s net profit in the second quarter ended Feb 29, 2012 (2QFY12) jumped 110% to RM53.46 million from RM25.41 million a year ago, as higher sales, and cheaper raw materials boosted the rubber glove manufacturer’s bottom line.

In a statement to the exchange on Thursday, Top Glove said its revenue for the quarter in review rose 13% to RM548.99 million against RM485.21 million previously.

Cumulative first half net profit climbed 38% to RM84.89 million from RM61.46 million a year earlier, while revenue was up 12% to RM 1.1 billion from RM976.72 million.

In a separate statement, Top Glove chairman Tan Sri Lim Wee Chai said a stronger US dollar versus the ringgit and lower latex prices had enabled the firm to register a higher net profit in 2QFY12.

“We have learnt from past experience on excessive increases in latex prices and shall remain cautious to continue with our planned strategy for a more balanced product mix of latex and nitrile gloves to cater to on-going customer preference.”

Top Glove shares rose three sen to RM4.83 at midday break on Thursday.



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Proton board not seeking other parties for takeover offer

KUALA LUMPUR (March 15): PROTON HOLDINGS BHD []’s board of directors has picked Affin Investment Bank Bhd as an independent adviser for the non-interested directors and shareholders in relation to DRB-HICOM BHD []’s takeover offer.

“The board of directors of Proton wishes to confirm that the board is not seeking any other person to make a take-over offer of its voting shares or voting rights,” it said in a statement to Bursa Malaysia.

Proton also advised the holders of the offer shares not to take any action until they have received the independent advice circular from the independent adviser.

On Wednesday, Proton received a notice of unconditional take-over offer from Maybank Investment Bank Berhad, on behalf of DRB-Hicom which had extended a mandatory take-over offer to acquire all the remaining 274.55 million Proton shares or 49.99% at RM5.50 cash per share.



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KLCI erases gains at midday, China weighs

KUALA LUMPUR (March 15): Malaysian equities pared earlier gains at lunch break on Thursday dragged down by China’s economic growth concerns.

PLANTATION [] stocks had earlier lifted the FBM KLCI by as much as 3.74 points or 0.2% but mild profit taking erased the gains.

At 12.30pm, the KLCI was just up 0.09 of a point to 1,575.80. Across the local bourse, about 662 million shares worth RM697 million changed hands. The broader market was cautious, with 368 decliners to 228 advancers while 343 stocks were unchanged.

Asian indices hit by less optimistic sentiments in China include Hong Kong’s Hang Seng which lost 0.11% to 21,284.7 while the Shanghai Composite retreated 0.12% to 2,388.26. Singapore’s Straits Times Index fell 0.14% to 3,022.02 but Japan’s Nikkei 225 managed to eke out a 0.92% gain to 10,142.81.

China’s outgoing premier Wen Jiabao said on Wednesday that measures to curb property speculation must be maintained to prevent a real estate bubble which will be detrimental to the country’s economy. Wen’s comments had reversed gains across China stock markets, resulting in major indices finishing in the red.

On Thursday, the Commerce Ministry announced that China’s foreign direct investment fell 0.9% to US$7.7 billion in February from a year earlier.

At Bursa Malaysia, plantation heavyweight SIME DARBY BHD [] rose seven sen to RM9.78 as crude palm oil futures climbed above RM3,400 a tonne. This followed updates from Intertek that Malaysian palm oil exports increased 37% to 697,804 tonnes in the first 15 days of March, according to wire reports.

However, Far East fell 38 sen to RM7.22, PPB 18 sen lower at RM16.80 and Batu Kawan 16 sen to RM18.52.

Top gainers Aeon Credit added 40 sen to RM8.75 while Yeo Hiap Seng was up 16 sen to RM2.62. F&N rose 12 sen to RM18.12.

Among the banks, RHB Cap added 10 sen to RM7.92 and CIMB eight sen to RM7.48.

Most active was Tiger Synergy Bhd which added one sen to 16 sen with some 62 million shares done .



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Reliance Pacific sees 5.6m shares crossed

KUALA LUMPUR (March 15): Thinly traded RELIANCE PACIFIC BHD []’s 5.60 million shares were crossed at an average price of 38.5 sen on Thursday.

At 12.20pm, this was 4.5 sen below current price of 43 sen.

The 5.6 million shares accounted for a 0.65% stake based on the paid-up of 858.55 million shares.

Reliance Pacific’s core activities are provision of travel and tour related services, and management and operation of hotels and resorts in Malaysia and overseas.



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Plantations top losers midday

KUALA LUMPUR (March 15): PLANTATION []s were the top losers in the morning on Thursday but volume was relatively thin, as investors took profit after the recent run-up.

At 11.52am, Far East was down 38 sen to RM7.22, PPB 18 sen to RM16.80, Batu Kawan 14 sen to RM18.54 and IOI Corp eight sen lower to RM5.24.

The FBM KLCI shed 0.09 of a point to 1,575.62. Turnover was 569.98 million shares valued at RM567.17 million. There were 230 gainers, 352 losers and 316 stocks unchanged.

Crude palm oil prices for May delivery dipped RM1 to RM3,384 a tonne.



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KL shares mildly steady in early trade

Share prices on Bursa Malaysia were mildly steady in early trading today on renewed concerns over China's growth, with the FTSE Bursa Malaysia KLCI (FBM KLCI) staying above the 1,575 level, dealers said.

At 9.40am, the key index stood 1.69 points firmer at 1,577.4 after opening 0.32 of a point better at 1,576.03.

HwangDBS Vickers Research in a note today said US indices had closed mixed at between -0.1 per cent and 0.1 per cent, following the markets’ impressive performance the day before.

Fifteen of the 19 US banks passed the Federal Reserve's stress tests, leading to further rallies, in their respective stocks and globally.

The research house said closer to home, the Malaysian bourse could trade sideways from its 0.7 per cent gain yesterday.

"This is due to sentiment cooling from the positive US and Eurozone news, while investors mulled China’s move to allow greater movement in its exchange rate, higher-than-expected jobless claims in the UK in February, and concerns over the ability of the Eurozone countries to reach its budget targets for 2013," it added.

The Finance Index rose 21.979 points to 14,104.27, the Plantation Index shed 12.23 points to 8,599.21 and the Industrial Index added 4.16 points to 2,866.45.

The FBM Emas Index increased 8.27 points to 10,878.8, the FBM 70 Index was 4.74 points lower at 12,160.95 and the FBM Ace Index advanced 39.03 points to 4,612.46.

Advancers led decliners 164 to 137 while 202 counters were unchanged, 990 untraded and 19 others suspended. Turnover stood at 204.900 million shares worth RM144.409 million.

Volume leaders, Focus Dynamics perked two sen to 19 sen, China Stationery was flat at RM1.04 and Tiger Synergy inched up half-a-sen to 15.5 sen.

Among heavyweights, Maybank firmed four sen to RM8.74, Sime Darby rose 11 sen to RM9.82, CIMB eased one sen to RM7.39 and Petronas Chemicals dropped six sen to RM6.72. -- BERNAMA



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FBM KLCI extends gains in morning trade

KUALA LUMPUR (March 15) : The Malaysian stock market benchmark rose in morning trade on Thursday, extending its 12-point gain from a day earlier amid more favourable economic updates from the US.

Analysts, however, cautioned that the 30-stock FBM KLCI is likely to consolidate due to less investor participation during the school holidays.

“Despite the improved external outlook, the local market is likely to remain in consolidation mode near-term given the limited investor participation during the school holidays as most market players remain sidelined, TA Securities Holdings Bhd wrote in a note on Thursday.

At 9.37am, the FBM KLCI rose 2.53 points to 1578.24. Across the local bourse, some 200 million shares worth RM137 million changed hands, leading to 163 gainers versus 130 decliners while 193 stocks were unchanged.

Top gainers include PETRONAS DAGANGAN BHD [] which added 32 sen to RM18.78 and AEON CREDIT SERVICE (M) BHD [] which was up 28 sen to RM8.63.

Decliners include KUALA LUMPUR KEPONG BHD [] which fell 14 sen to RM23.16 and Focus Point Holdings Bhd which was down 11 sen to19 sen,

Most active was FOCUS DYNAMICS TECHNOLOGIES [] Bhd which rose two sen to 19 sen with some 36 million shares done followed by China Stationery Ltd which added one sen to RM1.05 with about 15 million units changing hands.

Across Asia,Japan’s Nikkei 225 rose 0.88% to 10,139.4 points while Australia’s S&P/ASX 200 declined 0.34% to 4,272.6 . Nearer to home, Singapore ‘s Straits Times was down 0.07% to 3,024.32.



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TA Global gains, secures Canada project

TA Global Bhd, a property developer, gained 1.7 per cent to 30 sen, heading for the largest gain since Feb 10. The company agreed a plan with Birkbeck Trust to jointly develop a hotel and residential project in Vancouver, Canada, with a gross development value of C$496.4 million, according to a statement to the Malaysia’s stock exchange. -- Bloomberg



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Redtone jumps on TM broadband pact

Redtone International Bhd, a Malaysian telecommunications company, jumped 7.7 per cent to 28 sen in Kuala Lumpur trading at 9.32am, the steepest increase since January 9.

The company signed a high-speed broadband agreement with Telekom Malaysia Bhd, it said in a regulatory filing. -- Bloomberg



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Majuperak falls on land sale agreement

Majuperak Holdings Bhd dropped 3.3 per cent to 29 sen in Kuala Lumpur trading at 9.32am.

The company agrees to sell land to Nandex for RM13 million (US$4.2 million). -- Bloomberg



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HDBSVR has buy on TRC Synergy, TP 80 sen

KUALA LUMPUR (March 15): Hwang DBS Vickers Research has a buy on TRC Synergy at 75 sen and a price target of 80 sen.

It said on Thursday that TRC Synergy received a letter of award from Kompleks Dayabumi Sdn Bhd for the proposed alteration and addition of CONSTRUCTION [] works to existing Kompleks Dayabumi (Phase 2) for a contract sum of RM36 million.

“This represents TRC’s first contract win for FY12F and accounts for 7% of our new order win assumption of RM500 million. We expect margins to be at about 5%-6% typical of building jobs,” it said.

HDBSVR said the bigger catalyst remains the MRT project. TRC is one of 28 contractors short-listed to bid for elevated works of the Sungai Buloh-Kajang line worth RM12 billion (elevated portion).

TRC is present in all categories - elevated civil works, stations and depots - in both the open and bumiputera categories.

“We maintain our Buy rating and TP of 80 sen. This is pegged to 12 times FY12F EPS, which is based on 25% discount to the sector average. TRC’s RM1.3 billion outstanding orderbook provides earnings visibility for two to three years,” it said.



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RHB raises earnings forecast for WCT

KUALA LUMPUR (March 15) : RHB Research Institute Sdn Bhd has raised its earnings forecast for WCT BHD [] by 11% in the FY12 to FY14 period after factoring in earnings potential from the builder’s recently acquired land in the Taman Yarl enclave here.

In a note on Thursday, RHB said the higher earnings projection assumes WCT registers a RM100 million top line and RM20 million in earnings before interest and taxes from its planned real estate project at Taman Yarl during the period.

“We are positive on the latest development as WCT is acquiring the land at a reasonable price, while the relatively established location of the land means the development can take off in a major way over a relatively short period of time,” RHB said.

The research firm is keeping its Market Perform call for the stock with an unchanged fair value of RM2.33. WCT closed unchanged at RM2.61 on Wednesday.



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CIMB Research has technical sell on Mudajaya at RM3.20

KUALA LUMPUR (March 15): CIMB Equities Research has a technical sell on Mudajaya Group at RM3.20 at which it is trading at a FY13 price-to-earnings of 5.4 times and price-to-book value of 1.8 times.

It said on Thursday Mudajaya’s rebound has taken prices to its 62% Fibonacci Retracement levels.

“It is now testing the previous support turned resistance levels of RM3.23-RM3.31. It formed a shooting star pattern on strong volume, which is potentially a reversal signal,” it said.

CIMB Research said that as long as prices continue to hold below RM3.31 resistance levels, the stock was poised to fall with minor support seen at RM3.00 and RM2.79.

“Technical landscape suggests that the upward momentum is waning. For the longer term, a break below RM2.79 would suggest that the medium term outlook would turn bearish,” it said.



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CIMB Research has technical sell on Tradewinds Plantations at RM4.72

KUALA LUMPUR (March 15): CIMB Equities Research has a technical sell on Tradewinds PLANTATION [] at RM4.72 at which it is trading at a price-to-book value of 1.4 times.

It said on Thursday the strong rally from the August/September lows appears to have completed its run when prices hit the RM5.01 high in early February.

The current rebound is likely corrective and is likely to end below the support turned resistance trend line at RM4.85.

“Technical landscape is neutral at the moment. However, the medium term bearish divergence is still in play, which could keep the buying in check,” it said.

CIMB Research said it believed that prices are more likely to trend lower from here or marginally higher from here. Traders should lock in profits now. Prices are likely to ease back towards RM4.50 and RM4.24 again soon. The gap at RM3.67-RM3.79 is also another long term target if the RM5.01 high holds steady.



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MIDF raises TP for Top Glove, upgrades stock to Neutral

KUALA LUMPUR (March 15) : MIDF Amanah Investment Bank Bhd has raised its target price for Top Glove Corp Bhd shares by 22% to RM4.39 from RM3.61 and upgraded the stock to a Neutral.

In a note on Thursday, MIDF said it expects Top Glove’s earnings to improve in the current financial year against a backdrop of lower natural rubber prices and a weaker ringgit versus the US dollar.

“We expect 1HFY12 earnings to be in line with our forecast. We do not expect any dividend payment to be declared during this quarter. Even with the downward trending latex prices and the strengthening of the US dollar, we do not foresee demand for glove products to increase significantly in the near future.

“This is due to the supply glut in the industry and glove buyers are mostly satisfied with their current inventory levels,” MIDF said.

Top Glove is expected to announce o its financial results for 2QFY12 on Thursday. The stock rose five sen to close at RM4.80 on Wednesday.



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CIMB Research has technical sell on Hong Leong Bank at RM12.06

KUALA LUMPUR (March 15): CIMB Equities Research has a technical sell on Hong Leong Bank at RM12.06 at which it is trading at a a FY13 price-to-earnings of 11.6 times and price-to-book value of 2.1 times.

It said on Thursday the rebound from its September 2011 low was strong as prices surpassed the 78.6% Fibonacci Retracement levels. However, this rally appears to be exhausted.

CIMB Research said if prices fail to swing back above its recent high of RM12.42, there is a high possibility that the bulls are running out of steam.

“Indicators are showing signs of weakness via the bearish divergence on its RSI. MACD signal line has confirmed its negative crossover while RSI has hooked down,” it said.

CIMB Research said the next downleg will likely drag prices towards RM11.60 and RM11.15. Selling pressure would accelerate if the candles fell below all its key moving averages, said the research house.



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CIMB Research maintains Sell on DiGi, target price RM3.75

KUALA LUMPUR (March 15): CIMB Equities Research is more negative on DiGi in light of rising competition from Maxis in the migrant market and low likelihood of the 8.9 sen capital distribution it had earlier anticipated for FY13.

It said on Thursday that DiGi downplayed the threat from Maxis’s latest prepaid plan during Wednesday’s luncheon.

“But we think that Maxis is determined to wring some market share from DiGi, the market leader among migrant workers.

“We remove our assumption of capital distribution in FY13, tweak our forecasts but maintain our DCF-based target price of RM3.75. Maintain Sell,” CIMB Research said.



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Stocks to watch: Top Glove, Meda Inc, SunREIT, DRB-Hicom

KUALA LUMPUR (March 15): The sell down across China equities could dictate sentiment on the Malaysian bourse on Thursday following updates that the world’s second largest economy will maintain efforts to curb real estate speculation.

China’s premier Wen Jiabao said on Wednesday that measures to curb property speculation must be maintained to prevent a real estate bubble which will be detrimental to the country’s economy.

Wen’s comments had reversed earlier gains across China stock markets, resulting in major indices finishing in the red.

Hong Kong’s Hang Seng closed down 0.15% to 21,307.8 points, while the Shanghai Composite declined 2.63% to 2391.23. The Shenzen Composite fell 4.09% to close at 969.12.

At Bursa Malaysia, the FBM KLCI rose 11.69 points or 0.7% to close at 1575.71.

Apart from macro factors, analysts, have in fact, warned of bearish technical dynamics in local equities, prompting the anticipation of a sell down in local stocks.

“Given the bearish short-term technical momentum, stocks are likely to drift lower on limited trading participation, as most investors would look for cheaper levels before they are prepared to nibble,” TA Securities Holdings Bhd.

Stocks to watch on Thursday include Top Glove Corp Bhd, Meda Inc Bhd, Sunway Real Estate Investment (SunREIT), DRB-HICOM BHD [], TRC SYNERGY BHD [], TELEKOM MALAYSIA BHD [] (TM) and Axiata Group Bhd.

Top Glove is expected to announce its financial results for the second quarter ended Feb 29, 2012 (2QFY12) on Thursday.

According to analyst reports, Top Glove has guided that its 2QFY12 results will be weaker than the preceding quarter’s numbers. Top Glove shares rose five sen to close at RM4.80 on Wednesday.

Meda Inc Bhd plans to undertake an integrated township in Sungai Siput, Perak with the proposed purchase of 256.04 acres of land from RM13 million. The company said its unit Nandex Land Sdn Bhd has signed a sale and purchase agreement with Majuperak Energy Resources Sdn. Bhd to purchase the leasehold land.

Sunway REIT Management Sdn Bhd has earmarked RM200 million as capital expenditure to transform Sunway Putra Place.

Sunway REIT Management, which is the manager for Sunway Real Estate Investment (SunREIT) said the preliminary capital expenditure (capex) for the refurbishment of the mall is estimated at RM200 million.

“The refurbishment exercise is expected to take about 15-18 months with a projected return on investment (ROI) of 12.5% to 15.0%,” it said.

DRB-Hicom has obtained shareholders consent to acquire a controlling 42.74% stake in national car manufacturer Proton HoldingsBhd. DRB-Hicom fell two sen to RM2.64

CONSTRUCTION [] firm TRC Synergy has secured a RM36 million job to undertake alteration works at the Dayabumi Complex. TRC shares closed unchanged at 75 sen.

ECM Libra Research has upgraded TM’s fair value by 29% from RM3.70 to RM4.78 but maintained its hold recommendation for the stock.

ECM Libra has also revised upwards its earnings forecast for TM by between 1% and 24% for the FY12 to FY14 period.

TM plans to roll out the second phase of its high speed broad band (HSBB) services in smaller industrial areas and state capitals where it is economically viable. TM shares rose seven sen to RM5.13.

Axiata Group’s Indonesian unit PT XL Axiata Tbk is expected to register a 10% growth in its subscriber base to 51 million this year from 46.4 million in 2011. Axiata rose six sen to RM5.12.



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