Fajarbaru gets RM72.92m construction job

KUALA LUMPUR (March 20): Fajarbaru Builder Group Bhd has secured a RM72.92 million contract from Messrs Shaw Plaza Sdn. Bhd to tear down and rebuild the Shaw Parade complex in Kuala Lumpur.

It said phase one involved the car park, shops and office from the ground floor to the fourth floor while the second phase was to build a management office and a 11-storey budget hotel with 288 rooms.

Fajarbaru said the CONSTRUCTION [] period for phase one was 18 months, starting April 2 and phase two was over nine months, starting Oct 2, 2013.



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.

Cypark targets annual turnover of RM45m from solar plants

KUALA LUMPUR (March 20): CypARK RESOURCES BHD [] has targeted to generate turnover of about RM45 million from 2013 when the 33 MW solar capacity from its solar plants are completed.

Cypark executive chairman and founder Tan Sri Razali Ismail said the company targeted to complete the installation of an additional 25MW of solar plants in Johor, Perlis, Melaka and Negeri Sembilan by end-2012.

“With the targeted completion of 33 MW total solar capacity, Cypark expects to generate annual turnover of about RM45 million from year 2013 onwards,” he said, adding that by January 2013, Cypark hoped to fully transform itself into a “green utility company” specialising in the area of solar Photovoltaic and waste to energy”.

He was speaking at the official launch of the Cypark’s largest solar park by Prime Minister Datuk Seri Najib Tun Razak in Pajam, Negeri Sembilan. It is the largest grid connected solar park (41.73 acres) and the solar park with the most number of solar panels (31,824).

Work on the 8MW solar park started in September 2011 and was completed by Dec 31.

Cypark will start exporting and selling its energy to TENAGA NASIONAL BHD []’s grid at 95 sen per kilowatt on March 28, 2012.



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.

KLK to exit Crabtree & Evelyn biz for RM465m

KUALA LUMPUR (March 20): KUALA LUMPUR KEPONG BHD [] (KLK) is exiting its personal care products under the brand name “Crabtree & Evelyn” with the proposed disposal of CE Holdings Ltd for US$155 million (RM465 million).

KLK said on Tuesday that it was disposing the entire 63.74 million shares or 100% stake in CE Holdings to Khuan Choo International Ltd of Hong Kong.

CE Holdings is the investment holding company of its retailing business which manufactures, retails and distributes personal care products under Crabtree & Evelyn.

KLK said the sale of CE Holdings would enable it to exit from a non-core business and instead focus on its core PLANTATION []s and oleochemical businesses where the returns were significantly higher.

“The proposed disposal is expected to bring in a gain on disposal of approximately 11.5 sen per share for the financial year ending Sept 30, 2012,” 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.

Naza invests RM30m for a new robotic assembly line at Gurun plant

KUALA LUMPUR (March20): Naza Automotive Manufacturing (NAM), the manufacturing arm of the Naza Group, has invested RM30 million for a new robotic assembly line at its plant in Gurun, Kedah for the new Peugeot T73.

In a statement Tuesday, Naza group join executive chairman SM Nasarudin SM Nasimuddin, Joint Group Executive Chairman of the Naza Group of Companies, said quality consistency was needed for high production volume models such as the T73, which would also be exported to other markets in the region.

"We will produce 60,000 units of the T73 at NAM over a five-year period beginning in 2012. Of the total volume produced, some 60% is targeted to be exported to right-hand drive countries in Asean as well as markets outside the region," he said.

The new assembly line is the first line at NAM's facility in Gurun with automated robots to ensure the quality consistency for the T73, which is a new C-segment Peugeot that will be launched for the Malaysian market in the coming months, he said.

SM Nasarudin said NAM's investment of RM30 million was part of the company's RM714 million expansion and upgrading exercise which commenced in 2010 and was scheduled to be completed end-2015.

The exercise includes investments in facility upgrades, plants expansion, new model introductions and research and development, he said.

France's Ambassador to Malaysia, Martine Dorance, recently visited NAM for a tour of the new robotics assembly line and was given a briefing on the Naza Group's plans for Peugeot and the T73.

She was accompanied by members of the French Embassy, the Malaysian French Chamber of Commerce and Industry and officials from Automobiles Peugeot.

"We are honoured that Her Excellency Madame Martine Dorance visited NAM to inspect the close collaboration between the Naza Group and Automobiles Peugeot in making Malaysia the latter's manufacturing hub for the region," said SM Nasarudin.

NAM, which has 1,000 employees, commenced operations in 2004 with a RM500 million facility, which includes an assembly plant, two-storey office, a test track, lots for vendors and suppliers and staff accommodation on a 140-acre parcel of land.



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.

KLK to expand oil palm plantations in Indonesia

KUALA LUMPUR (March 20): KUALA LUMPUR KEPONG BHD [] is expanding its oil palm PLANTATION [] area in Indonesia with the acquisition of PT. Global Primatama Mandiri (PT GM) which has the rights for 7,400 ha of land in Kalimantan for plantations.

KLK said on Tuesday its subsidiary KL-Kepong Plantation Holdings Sdn Bhd (KLKPH) had entered into two agreements to acquire 90% of PT GM for RM3.60 million.

KLKPH would acquire a 52.4% equity stake in PT GPM from Handojo Leman Byono and another 37.6% from Joniansyah respectively.

KLK said PT GPM holds a certificate of licensed location for 7,400 ha of land in Kecamatan Kelay, Kabupaten Berau, east Kalimantan which it intends to develop into oil palm plantations in due course.

“The purchase consideration will be financed by KLK’s internally generated funds,” it said. “The proposed acquisition is in line with KLK’s strategy to further increase KLK Group’s oil palm plantation area in Indonesia.”



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.

RAM Ratings keeps negative rating watch on MRCB Southern Link’s debt notes

KUALA LUMPUR (March 20): RAM Rating Services Bhd is maintaining the respective AA3 and A2 ratings of MRCB Southern Link Bhd’s (MRCB SL) RM845 million secured senior Sukuk (2008/2025) and RM199 million junior Sukuk (2008/2027).

It said on Tuesday that however, the ratings of the senior and junior Sukuk continue to be on negative Rating Watch due to the uncertainties of collecting toll at the Eastern Dispersal Link Expressway (EDL).

To recap, on March 9, Prime Minister Datuk Seri Najib Tun Razak announced that motorists who do not use the EDL will not be required to pay toll charges.

However, the ratings agency pointed out the announcement differed from the terms of the concession agreement, under which all motorists (with the exception of motorcycles) that use the Johor Baru-Singapore Causeway must pay the EDL toll charges.

MRCB SL is a unit and funding conduit of MRCB Lingkaran Selatan Sdn Bhd, which holds the concession for the 8.1-km EDL in Johor Bahru.

The proceeds from the Sukuk were used to fund the CONSTRUCTION [] of the EDL, which was fully completed on Jan 15, 2012 and was awaiting the issuance of a certificate of fitness.

Pending finalisation of some technical issues, the Government is expected to make a further announcement by end-March 2012.

“RAM Ratings will closely monitor the relevant developments; any changes in the terms of the concession will be reassessed for credit implications as they are made available,” it said.

The ratings agency, in its comments on the negative Rating Watch, said this reflected uncertainties pertaining to the EDL’s ability to commence tolling operations, its eventual tolling mechanism and traffic volume.

“These factors could have a negative bearing on the Company’s cashflow profile and debt-servicing ability throughout the tenure of the sukuk.

“We highlight that, should MRCB SL be unable to begin tolling operations and not receive timely and adequate cash compensation, it is likely to face a shortfall in its cashflow to meet its debt obligations in December 2012. Under these circumstances, there could be a multi-notch downgrade for the senior and junior Sukuk,” 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.

MMC, Gamuda in focus after MRT projects

KUALA LUMPUR (March 20): MMC Corp and Gamuda’s securities provided some life into the otherwise lacklustre market on Tuesday as investors stayed mostly on the sidelines in line with the cautious regional markets.

The FBM KLCI closed up 4.02 points or 0.26% to 1,577.62, lifted by gains in IOI Corp and Tenaga. Turnover was 2.14 billion shares valued at RM1.76 billion. There were 314 gainers, 431 losers and 376 counters unchanged.

Hong Kong’s Hang Seng Index fell 1.08% to 20,888.20, Shanghai Composite Index lost 1.38% to 2,376.84, Taiwan’s Taiex shed 0.89% to 7,972.70 but Singapore’s Straits Times Index added 0.42% to 3,002.73.

Market sentiment was cautious as reflected in the broader market where declining stocks led advancers. While there was some fund support for key stocks, trading activity was heavy in penny stocks and lower liners.

The KLCI is one of the laggards among the key regional markets, with the index up 6.27% in US dollar terms year-to-date compared with STI’s 16.55%, Hang Seng Index’s 9.87% and Shanghai Composite’s 7.77%.

IOI Corp and Tenaga rose five sen each to RM5.29 and RM6.54, pushing up the index by 1.39 points.

MMC added 15 sen to RM2.95, pushing the index up by 0.57 of a point. Gamuda rose 12 sen to RM3.74 and Gamuda-WD 10 sen to RM1.45.

The securities of the companies saw active trade after their joint venture won the underground package for the Sungai Buloh-Kajang MRT line with the bid of RM8.2 billion.

Hartalega was the top gainer, up 26 sen to RM8.19, Ta Ann 13 sen to Rm5.88, HLFG 12 sen to RM12, and Batu Kawan 10 sen to RM18.60.

Share prices of Metronic Global and its 17%-owned unit Ariantec Global slipped in active trade. Ariantec fell 3.5 sen to 10.5 sen and it was the most active with 121.23 million shares done while Metronic eased two sen to 11 sen.

Focus, which was queried over the sharp increase in the price of its securities and volume, saw its share price ending the day two sen higher at 21.5 sen. Focus-WA added four sen to eight sen and Focus-WB two sen to 14.5 sen.

Among the index-linked stocks, Petronas Chemicals fell three sen to RM6.71, Public Bank two sen to RM13.62 and RHB Cap three sen to RM8.

Aeon was the top loser, down 25 sen to RM9.13 with 20,500 shares done. Cypark lost 11 sen to RM1.87 and United PLANTATION []s 10 sen to RM25.



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.

Jotech gets shareholders’ nod for merger with AIC, AutoV

KUALA LUMPUR (March 20): JOTECH HOLDINGS BHD [] has received shareholders’ approval for the proposed merger with AIC CORPORATION BHD [] and AutoV Corporation Bhd.

Jotech, which makes precision stamped parts, said on Tuesday the approval was given at the EGM and court convened meetings on Tuesday.

All three companies would be collectively be acquired by a special purpose vehicle -- Temasek Formation Bhd (TFB) – which is owned by executive chairman of Jotech and AIC, Datuk Goh Tian Chuan.

To recap, TFB had received the Securities Commission’s approval in January 2012 for the proposed merger for RM711 million to be satisfied via the issuance of new TFB shares.

TFB would acquire Jotech at 18 sen per share, or 20% above the respective five-day volume weighted average market prices (VWAMP) of Jotech shares up to and including the price at July 26, 02011 of 15 sen.

The offer of 9.0 sen for each Jotech warrant was 17% over the respective five-day VWAMP of Jotech warrants up to and including the price at July 26, 2011 of 7.7 sen.

Jotech said the proposed swap ratio would be on the basis of three new TFB shares for every two existing Jotech shares. As for the warrants holders, the proposed swap ratio will be three new TFB shares for every four existing Jotech warrants.

Commenting on the latest development, Goh said the proposed merger would beef up Jotech both financially and market size to fully implement its business plan strategies.

“The proposed merged entity would be able to complement its counterpart’s strengths to achieve better business synergies going forward and further solidify its leading position in the industry,” he said.

The EGMs for AIC and AutoV would be held on March 21, and March 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.

Maybank gets BNM nod to raise paid-up by 539m new shares

KUALA LUMPUR (March 20): MALAYAN BANKING BHD [] had received Bank Negara Malaysia’s approval to increase its issued and paid-up share capital by up to 539.3 million new shares.

Maybank said on Tuesday the new shares arose from the implementation of the dividend reinvestment plan.

The recurrent and optional dividend reinvestment plan allows shareholders to reinvest the electable portion of their final cash dividend for the six-month financial period ended Dec 31, 2011 of 36 sen per share less 25% taxation into new shares.



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.

No approval for 6% service tax for prepaid phone users

KUALA LUMPUR (March 20): The proposed six per cent tax on prepaid phone subscribers has yet to be decided, the Dewan Rakyat was told on Tuesday.

Deputy Information, Communications and Culture Minister Datuk Joseph Salang said the ministry had never ordered the Malaysian Communications and Multimedia Commission (MCMC) to issue a memo to cellular phone service suppliers to implement the tax.

"The decision was to postpone the service tax charge, as announced last year. The ministry does not know why the report mentioned as such.

"The truth is there was no directive or decision," he said when answering a supplementary question from Datuk Saifuddin Nasution Ismail (PKR-Machang) in Parliament here.

Saifuddin in his question sought confirmation from the ministry about media reports that said the MCMC had issued a memo to all telecommunication companies to be technically prepared for the implementation of the service tax.

MCMC chairman Datuk Mohamed Sharil Tarmizi had also issued a statement on Monday, clarifying no directive had been issued on the issue.

To a supplementary question from Fong Po Kuan (DAP-Batu Gajah) if Telekom Malaysia was planning to review the monthly rental of fixed line telephones, Salang said the company took into account several factors to decide the rate.

"Among others, the cost of domestic and international networks, the speed and amount of data subscribed to (about internet). The domestic costs is related to the central costs provided, costs of cable and exchange equipment.

"The ministry is always monitoring service charges by service providers, including Telekom, so as not to be excessive," he said.

Earlier, when answering the original question from Mohd Nizar Zakaria (BN-Parit) whether internet service charges would be reviewed, Salang said: "The government does not supervise the rates of mobile and broadband services." - 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.

Gamuda, MMC advance on MRT project award

KUALA LUMPUR (March 20): Shares of GAMUDA BHD [] and MMC Corp Bhd rose in Tuesday’s afternoon session after their joint venture won the underground package for the Sungai Buloh-Kajang MRT line with the bid of RM8.2 billion.

At 3.11pm, Gamuda was up nine sen to RM3.71 with 8.66 million shares done while Gamuda-WD added eight sen to RM1.43. MMC rose nine sen to RM2.89 with 1.73 million shares done.

The FBM KLCI was 2.61 points higher at 1,576.21. Turnover was 1.55 billion shares valued at RM935.55 million. There were 268 gainers, 414 losers and 333 stocks were unchanged.

Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) said on Tuesday it had awarded the package to the MMC-Gamuda JV because of the consortium’s strengths in design, CONSTRUCTION [] plant and tunneling equipment, tunneling and station construction methodology.

“The consortium also offered the most competitive price at RM8.2 billion to design and build the 9.5km MRT underground tunnel and seven underground stations,” 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.

MMC-Gamuda JV clinches underground package for KL MRT

KUALA LUMPUR (March 20): The joint venture of MMC CORPORATION BHD [] and GAMUDA BHD []’s (MMC-Gamuda JV) clinched the underground package for the Sungai Buloh-Kajang MRT line with the bid of RM8.2 billion.

Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) said on Tuesday it had awarded the package to the MMC-Gamuda JV because of the consortium’s strengths in design, CONSTRUCTION [] plant and tunneling equipment, tunneling and station construction methodology.

“The consortium also offered the most competitive price at RM8.2 billion to design and build the 9.5km MRT underground tunnel and seven underground stations,” it said.

MRT Corp said the final evaluation showed that MMC-Gamuda JV was the best evaluated tenderer that offered the technical criteria and the best bid which was 3.4 per cent lower than the second lowest offer.

It said the decision was made at a one stop procurement committee meeting chaired by Prime Minister Datuk Seri Najib Tun Razak at Parliament on Monday.

Elaborating on the factors why the MMC-Gamuda JV was picked, MRT Corp said the JV was selected based on the consortium’s strengths in design, construction plant and tunneling equipment, tunneling and station construction methodology especially in the challenging karstic limestone formation, and for the construction plan and resources it committed.

“MMC-Gamuda JV also stood out because of its past experience in handling underground works in the same ground conditions and for putting together the same team which handled the Stormwater Management and Road Tunnel (SMART) project,” it said.

Works for the underground package will be directly supervised by MRT Corp.

The MMC-Gamuda JV was one of five companies or joint ventures which pre-qualified under a stringent set of criteria to tender the underground package of the MRT project. The other tenderers were Hyundai-Gadang-Chengal Jaya Joint Venture, Taisei Corp, Sinohydro Group Ltd, and the China Railway Group Ltd.



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.

MMC-Gamuda awarded RM8.2b MRT job

Mass Rapid Transit Corp has awarded a RM8.2 billion tunnelling contract to a joint venture between MMC Corp and Gamuda Bhd.

The single largest package in the mass rail network project was awarded to the companies following a competitive bid with four other tenderers, Mass Rapid Transit, or MRT, said in an e-mailed statement today. -- Bloomberg



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.

Quality of buying declines on Bursa

KUALA LUMPUR (March 20): The quality of buying in the morning session on Tuesday declined, with trading interest focused on penny stocks, while the broader market showed some signs of weakness.

Investors were staying on the sidelines, as evidenced by the small gains and cautious regional markets. Most of the most active stocks were penny counters.

At 12.30pm, the FBM KLCI was up 3.48 points to 1,577.08. Turnover was 1.28 billion shares valued at RM676.65 million. Decliners led advancers 382 to 245 while 333 counters were unchanged.

Hong Kong’s Hang Seng Index slipped 0.67% to 20,974.03, Taiwan’s Taiex shed 0.69% to 7,988.42, South Korea’s Kospi 0.26% lower at 2,041.59 but Singapore’s Straits Times Index added 0.58% to 3,006.53. Japan was closed.

At Bursa Malaysia, dealers said retail investors were staying on the sideline while some who had already bought blue chips and mid-cap stocks were awaiting fresh news. They said the retail investors were not ready to rush in.

According to Bursa Malaysia, local retail participation had declined to about 26%, local institutions were at 54.6% and foreigners at about 19.4%.

Focus, which was queried by Bursa Securities over the sharp rise and heavy volume, added 3.5 sen to 23 sen. There were 112.93 million shares done. It warrants, WA added 4.5 sen to 8.5 sen and WB 2.5 sen to 15 sen.

Dutaland-LB added 15 sen to RM1.05, BCorp-LR 15.5 sen to 13 sen. Index-linked stock BAT rose 14 sen to RM52.52, HLFG 10 sen to RM11.98 and PetGas eight sen to RM16.48.

Ta Ann added 12 sen to RM5.87, PIE 11 sen to RM4.88 and IGB seven sen to RM2.87.

Share prices of Metronic Global and its 17%-owned unit Ariantec Global slipped in active trade. Ariantec fell three sen to 10.5 sen and it was the most active with 121.23 million shares done while Metronic eased one sen to 12 sen.

HL Industries was the top loser, down 12 sen to RM4.06, Batu Kawan and United PLANTATION []s shed 10 sen each to RM18.40 and RM25. EPMB extended its decline, down 6.5 sen to 90 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.

Bursa Securities queries Focus over unusual market activity

KUALA LUMPUR (March 20): Bursa Malaysia Securities Bhd has queried FOCUS DYNAMICS TECHNOLOGIES [] Bhd over the unusual market activity relating to its securities.

In a circular issued on Tuesday, it queried the company over the sharp increase in price and high volume in the company’s securities.

At 12.23pm, it was up three sen to 22.5 sen with 110.16 million shares done.



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.

Maybank all set to open Myanmar branch office

KUALA LUMPUR: Maybank is set to open its branch office in Myanmar as soon as foreign banks given approval, said the banking group’s president and CEO Datuk Seri Abdul Wahid Omar.

"As and when it opens up, we hope to be there," Wahid said on Tuesday. Presently, Maybank is among the 16 foreign banks which have a representative office there.

Wahid was speaking to reporters after Maybank signed agreement with four partners from Myanmar namely Asia Green Development Bank, Co-operative Bank Limited, Ayeryarwady Bank Limited and Kanbawza Bank Limited for remittance services.

The new service will benefit more than 140,000 Myanmar migrant workers with remittance transactions from Malaysia into Myanmar via an electronic platform through Maybank branches and forex booths, to the respective banks in Myanmar.

"We are anticipating that the new service to Myanmar will see some RM38 million in transfers this year, and help fuel the 20% growth in total remittance value that we are targeting for 2012.

"Equally important, it will bring us another step forward in strengthening our regional electronic remittance platform. Our goal is to eventually offer Money Express across our regional network, in line with our mission to humanise financial services across Asia," said Wahid, adding a total of RM2 billion remittance transaction was conducted through Maybank in 2011.

Foreign workers in Malaysia remitted a total of RM5.6 billion in 2010.



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.

EPMB extends losses on MEX acquisition

KUALA LUMPUR (March 20): Shares of EP MANUFACTURING BHD [] (EPMB) extended its losses on Tuesday as investors were concerned about the proposed acquisition of the 26km Maju Expressway (MEX) from Maju Holdings Sdn Bhd as pricey.

At 10.15am, EPMB was down 5.5 sen to 91 sen with 1.24 million shares done. On Monday, it slid 13.8% or 15.5 sen to 96.5 sen.

The FBM KLCI was up 3.81 points to 1,577.41. Turnover was 683.38 million shares valued at RM252.98 million. There were 213 gainers, 193 losers and 292 stocks unchanged.

OSK Research said on Monday the acquisition at RM1.7 billion would include assuming debts totaling RM550 million.

Under the deal, the auto parts maker will pay RM1.7 billion for the highway concessionaire, according to sources. The RM1.7 billion price tag includes debts. The MEX links the city centre in Jalan Tun Razak here to Putrajaya.

“Although traffic growth is expected to be resilient, from a valuation standpoint, the deal looks pricey and raises our concern that it may cause EPMB’s net gearing to to 457% this year. Besides, the high interest cost will erode earnings in the immediate term,” 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 advances, BAT, KLK higher

KUALA LUMPUR (March 20): Blue chips advanced in early trade on Tuesday, with BAT and KL Kepong among the top gainers, on mild fund-buying while the broader market reflected slight upward bias.

At 10.03am, the KLCI was up 4.16 points to 1,577.76. Turnover was 614.96 million shares valued at RM215 million. There were 205 gainers, 180 losers while 275 counters were unchanged.

HwangDBS Vickers Research said the KLCI may still range-bound between the immediate support and resistance levels of 1,555 and 1,580 for the moment.

“Meanwhile, continuing from where it left off in recent times, the list of most actively traded stocks would continue to be hogged by the second and third liners,” it said.

BAT was the top gainer, adding 22 sen to RM52.60, KLK 20 sen to RM23.52, Tasek 12 sen to RM8.70 and Petronas Gas 12 sen also to RM16.52 while Lafarge Cement added eight sen to RM7.16.



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.

Metronic, Ariantec mixed in active trade

KUALA LUMPUR (March 20): Share prices of METRONIC GLOBAL BHD [] and its 17%-owned unit Ariantec Global Bhd were mixed in active trade on Tuesday.

At 9.55am, Ariantec Global fell two sen to 11.5 sen with 62.25 million shares done after the recent rally in its share price. Metronic edged up 0.5 sen to 13.5 sen with 49.19 million units transcated.

The FBM KLCI rose 3.06 points to 1,576.66. Turnover was 558.24 million shares valued at RM190.52 million. There were 193 gainers, 160 losers and 265 stocks unchanged.

Metronic said late Monday it was informed by its managing director Dr Ng Tek Che that he was approached by parties who are keen to acquire his 5.23% stake in the firm.

Metronic, which specialises in system integration of intelligent building management and integrated security management systems. Ariantec offers information TECHNOLOGY [] services.



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.

Fair value for Tasco lifted at OSK

Tasco Bhd, a logistics services provider, rose 1 percent to RM2.03 ringgit, poised for a record close.

The stock’s so-called fair value was raised to RM2.33 from RM2.18 at OSK Holdings Bhd following increases in profit estimates for this year and next, the brokerage wrote in a report today. -- Bloomberg



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.

Metronic rises on offer for MD's stake

Metronic Global Bhd, a computer-systems developer, advanced 3.9 percent to 13.5 sen in Kuala Lumpur trading at 9.32am, on course for its highest close since Oct. 19, 2009.

Managing Director Ng Tek Che has been approached by parties seeking to buy part or all of his 5.2 percent stake, the company said in a stock-exchange filing.

The discussions are preliminary, it said. -- Bloomberg



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.

Boustead climbs on getting RM5.6b loans

Boustead Holdings Bhd, a plantation, property and heavy industries group, climbed 1.3 percent to RM5.52 in Kuala Lumpur trading at 9.32am, bound for its largest gain since March 2.

The company obtained syndicated debt facilities totaling as much as RM5.6 billion (US$1.8 billion) to finance the construction of six combat patrol vessels for the Malaysian navy, it said in a statement. -- Bloomberg



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 market perform on HELP, FV RM1.80

KUALA LUMPUR (March 20): RHB Research Institute is maintaining its market perform recommendation of HELP International, fair value of RM1.80.

It said on Tuesday it was positive on the company’s move to establish an IT Industry Advisory Board (IAB) to ensure the greater relevance in its curriculum and to widen its students’ exposure to internships, research and other projects. The board will consist of industry members and HELP academicians.

RHB Research said currently only about 2%, that is 200 students of HELP’s 11,000 total student population are undertaking HELP’s IT courses.

According to a study by the Multimedia Development Corp, the demand for IT graduates had increased by 18.6% over the two-year study, while supply only rose by 2.6%.

“With the fees for HELP’s IT courses averaging about RM25,000 per course, we believe that the increased awareness for the IT industry and courses could have a positive impact on HELP’s longer-term topline and bottomline. No changes to our earnings forecasts at this juncture,” 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.

HDBSVR maintains Hold on SP Setia, TP RM4.50

KUALA LUMPUR (March 20): Hwang DBS Vickers Research is maintaining its Hold and Target Price of RM4.50 for S P Setia Bhd, based on 10% discount to RNAV of RM4.97.

It said on Tuesday S P Setia had announced that its public spread fell to below the required 25% minimum level as at Monday’s closing date for acceptance of the mandatory general offer, with Permodalan Nasional Bhd (PNB) and parties acting in concert (including Tan Sri Liew Kee Sin) holding 79% of shares and 88% of warrants.

HDBSVR said with PNB intending to maintain the listing status of S P Setia, an application will be made to Bursa Malaysia for a lower public spread or for an extension of time to rectify the issue within three months.

“We believe PNB will likely make a placement to improve S P Setia’s liquidity (4% stake works out to 75 million shares worth RM296 million a RM3.95 a share),” it said.

The research house said it still likes S P Setia for its strong track record (improved clarity on management continuity with Liew remaining fully in control for the next three years) and strong growth potential.

HDBSVR said S P Setia is on track to achieve its RM4 billion FY12 sales target (+21% on-year), with RM932 million chalked so far for the first three months and a brimming launch pipeline.

It added S P Setia is still looking for more landbank (including government land redevelopment and overseas projects) - leveraging on its strong balance sheet (net cash) and backing from PNB.



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 sell on Naim Indah at 53.5 sen

KUALA LUMPUR: CIMB Equities Research has a technical sell on Naim Indah Corp at 53.5 sen at which it is trading at a price-to-book value of 4.9 times

It said on Tuesday the stock appears to have formed a double top pattern. Prices failed to record a new high last week, which led to further selling.

“With both its indicators starting to head lower, the odds of further upside also diminish as well. Continue to look out for the support at 50.5 sen where a break below would send prices falling towards the 42 sen levels next.

“Any rebounds should be a chance to sell into strength. As long as the 72.5 sen resistance is intact, we think that sellers are in charge,” 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 sell on IGB at RM2.80

KUALA LUMPUR: CIMB Equities Research has a technical sell on IGB Corporation at RM2.80 at which it is trading at a price-to-book value of 1.2 times

It said on Tuesday IGB Corporation broke below its support trend line a week ago but found some support via its 50-day SMA. The current rebound looks weak and could potentially fizzle out soon.

“Technical landscape remains conductive for a correction as its MACD remains in a falling trend,” it said.

CIMB Research said any rally towards the RM2.88 resistance should be viewed as a chance to sell at a higher price.

“A break below RM2.68 would confirm that the longer term trend has also changed with prices targeting RM2.40 and RM2.23 next. As long as the RM2.93 high is not breached, the odds favour the bears,” 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 sell on Petronas Dagangan

KUALA LUMPUR: CIMB Equities Research has a technical sell on Petronas Dagangan at RM18.38 at which it is trading at a FY13 price-to-earnings of 15.3 times and price-to-book value of 3.8 times

It said on Tuesday the stock’s rally is still intact but it is beginning to see signs of exhaustion.

“The recent pullback has been steep, although it has yet to break the moving averages or the key support trendline at RM17.20,” it said.

CIMB Research said nevertheless, the indicators are showing that the upward momentum is slowing down.

The MACD has just confirmed its dead cross, which in turn, confirmed its bearish divergence signal. Its weekly charts also sport bearish divergence signals.

“Bulls should start to take notice and tighten stops. Prices could potentially climb a tad further towards RM19.20-RM20.00 but we are doubtful. A break below RM17.20 would confirm that the stock is undergoing a correction towards RM14.50,” the research house 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 : Mega First , Metronic Global , Public Bank, Eng Teknologi

KUALA LUMPUR (March 19) : Malaysian stocks could take the cue from more external news flow on Tuesday as investors weigh the prospects of a recovering US economy against less optimistic updates in China.

The spotlight this week will be directed at the US housing market data, deemed a crucial indicator of the health of the world’s largest economy. Investors are also taking note of China-based banks which are due to report their quarterly earnings.

On Monday, the FBM KLCI rose 0.14% or 2.2 points to finish at 1,573.6.

Stocks to watch on Tuesday include Mega First Corp Bhd and its 60.43% subsidiary ROCK CHEMICAL INDUSTRIES (M) [] Bhd, besides KOBAY TECHNOLOGY [] BHD [] and its 53.16% subsidiary Lipo Corp Bhd.

Heavily-traded METRONIC GLOBAL BHD [] and its 17%-owned unit Ariantec Global Bhd are also worth noting. Other stocks to watch include PUBLIC BANK BHD [], and ENG TEKNOLOGI HOLDINGS BHD [].

Mega First, a power plant builder and property developer , has served a takeover notice on Rock Chemical, a building materials entity, to acquire the remaining shares it does not own at RM2.10 each.

Mega First shares rose two sen to close at RM1.72 on Monday while Rock Chemical was up 31 sen to RM2.06 after both stocks resumed trading at 2.30pm.

Trading of shares in industrial component manufacturers Kobay and Lipo has been suspended since 3.05 pm on Monday, pending an announcement. Kobay was last traded on Friday at 79 sen while Lipo was last transacted at RM1.04 on Monday.

Metronic said it was informed by its managing director Dr Ng Tek Che that he was approached by parties who are keen to acquire his 5.23% stake in the firm.

Metronic,which specialises in system integration of intelligent building management and integrated security management systems, saw its shares rose 0.5 sen to 13 sen with about 177 million shares changing hands on Monday.

Ariantec, which offers information technology services, rose four sen to 13.5 sen with some 235 million shares done.

Public Bank is expected to maintain its 50% dividend payout ratio, chief operating officer Leong Kok Nyem said at the group’s AGM. Public Bank shares rose four sen to close at RM13.64.

The founders and major shareholders of Eng Teknologi who are in the midst of privatising the hard disk drive maker said the takeover offer price has been revised downwards from RM2.50 to RM2. Eng Teknologi shares closed unchanged at RM1.77.



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.