Bolton plans build-then-sell residential property in Setapak

KUALA LUMPUR (March 27): BOLTON BHD [] will launch its first build-then-sell residential property in Setapak under a joint venture with CRSC Property Sdn Bhd.

Bolton said on Tuesday the project, with gross development value of RM80 million, would be on a 5.77 acre site.

It had recently teamed up with CRSC to build 70 three-storey superlink terrace houses on the leasehold site, which is part on the on-going 66.65 acre mixed residential and commercial development in Taman Sri Rampai.

“Under the agreement, Bolton will construct and complete the superlink terraced units by February 2015 as stipulated in the agreement on a build then sell basis. The gross development value of this development is estimated at RM80 million,” it said.

According to Bolton executive chairman, Datuk Mohamed Azman Yahya, he expected this project to be a quick turnaround for Bolton as the land is currently vacant and ready for immediate development.



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Supercomnet: Nazifuddin not taking up 18% stake

KUALA LUMPUR (March 27): Supercomnet Technologies Bhd, whose share price fell on Tuesday after surging on Monday, stated Mohd Nazifuddin Mohd Najib was not taking up the option to purchase an 18.66% stake in the company.

The company said on Tuesday that it had received a letter the same day from Nazifuddin “indicating that he will not be pursuing the option to purchase the 18.66% stake in the company as stated in the option letter”.

Supercomnet’s share price closed 13.5 sen down to 36 sen with 79.14 million units done on Tuesday, giving up nearly two-thirds of Monday’s gains when it surged 19.5 sen to 49.5 sen.

The company, in response to a Bursa Malaysia Securities query on Monday, said its major shareholder and director Wu Chung-Jung had entered into an agreement with Nazifuddin on March 25.

Wu, who was acting on behalf of several shareholders, had signed the agreement to give Nazifuddin an option to purchase 45.35 million shares of 10 sen each at 22.5 sen, representing 18.66% of the paid-up.

However, after market close on Tuesday, Nazifuddin stated he would not go ahead with the option to purchase the stake.



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Trading in Key West shares suspended

KUALA LUMPUR (March 27): Trading in the shares of KEY WEST GLOBAL TELECOMM []unications Bhd will be suspended on Wednesday, March 28 for the signing of an agreement with Maryland International Offshore Ltd.

According to a circular from Bursa Malaysia Securities, the suspension would come into effect from 9am on Wednesday until further notice.

However, a statement issued by Key West said the suspension would come into effect from 9am to 5pm on Wednesday only.

On March 20, the board of directors of Key West told Bursa Malaysia that it was “in discussion with PT Formasi Sumatera Energi to further venture its oil and gas businesses in Indonesia”. However, as of that date, the terms were yet to be finalised.

In a separate statement, Key West announced that Wong Meng Tak has been appointed an independent director.

Wong is currently an independent director of D&O Green Technologies Bhd.



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TDM proposes 18.5 sen final dividend, tax exempt

KUALA LUMPUR (March 27): TDM BHD [] has proposed a final dividend of 18.5 sen per share, tax exempt for the financial year ended Dec 31, 2011.

It said on Tuesday the proposed dividend would be subject to shareholders’ approval at its AGM.

On April 27, 2011, the board approved an interim dividend of 3.0 sen dividend per ordinary share, tax exempt for FY2011 which was paid on June 9.



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Cahya Mata-Rio Tinto JV terminated

KUALA LUMPUR (March 27) : CAHYA MATA SARAWAK BHD [] (CMSB) and Rio Tinto plc have called off plans to jointly set up an aluminium smelting facility in Sarawak as electricity-supply details for the project could not be finalised.

In a statement to Bursa Malaysia on Tuesday, CMS group managing director Datuk Richard Curtis said both firms have not been able to obtain power supply from Sarawak Energy Bhd (SEB) at economically-feasible terms. As such the heads of agreement between CMS and Rio Tinto, apart from both companies’ memorandum of understanding with SEB were mutually terminated.

“As a result, Rio Tinto and CMS have agreed that they would cease to pursue plans to jointly develop an aluminium smelter at Samalaju in Sarawak but remain open to other future possible collaborations,” Curtis said.

He said CMS remains optimistic about investment opportunities within the Sarawak Corridor for Renewable Energy and is evaluating other investment opportunities there.



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Poh Kong 2Q profit up 31% on-year

KUALA LUMPUR (March 27) : POH KONG HOLDINGS BHD []’s net profit rose 31% to RM12.43 million in the second quarter ended Jan 31, 2012 from RM9.52 million a year earlier as the jeweller raked in higher sales against the backdrop of rising gold prices.

In a statement to the exchange on Tuesday, Poh Kong said its revenue climbed 19% to RM202.41 million from RM170.48 million previously. Cumulative first half net profit rose 48% to RM30.15 million from RM20.41 million a year earlier as revenue increased 27% to RM433.06 million from RM339.94 million

“For the current financial year, the group will continue its drive to build market share by enhancing and differentiating its product offerings to its targeted market segments.

“Towards this purpose, the group is actively evaluating various initiatives and opportunities to attract new customers through the introduction of new product designs and enhanced customer service,” Poh Kong said.

Shares of Poh Kong climbed one sen to close at 55.5 sen.



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Multi-Code 2Q earnings up 21.7% to RM2.18m

KUALA LUMPUR (March 27): Multi-Code Electronics Industries (M) Bhd’s earnings rose 21.7% to RM2.18 million for the second quarter ended Jan 31, 2012 from RM1.79 million a year ago due to a specific non-recurring expense incurred then.

It said on Tuesday its revenue rose 4.1% to RM25.28 million from RM24.27 million a year ago due to sales of a new product. Earnings per share were 4.92 sen versus 4.04 sen. It declared an interim dividend of 3.0 sen per share.

For the first half ended Jan 31, 2012, its earnings registered a 50.7% increase to RM5.37 million from RM3.56 million in the previous corresponding period. Its revenue increased by 12.3% to RM53.90 million from RM48 million.



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KLCI closes higher, but stays shy of 1,590-level

KUALA LUMPUR (March 27): the FBM KLCI recovered some lost ground and closed higher on Tuesday, in line with the overall improved sentiment at key regional markets.

However, the index stayed shy of breaching the 1,590-level for long.

The FBM KLCI was up 5.12 points to close at 15,88.10, lifted by gains at select blue chips. The index had earlier risen to its intra-day high of ,591.03.

Gainers led losers by 389 to 381, while 337 counters traded unchanged. Volume was 1.94 billion shares valued at RM1.66 billion.

Asian stocks rebounded, with Japan's Nikkei hitting a one-year high, and the dollar struggled on Tuesday after Federal Reserve Chairman Ben Bernanke said ultra-loose monetary policy was still needed to reduce unemployment, according to Reuters

Europe's major equity markets were also poised for gains, with Euro STOXX 50 index futures opening up 0.7 percent, while financial spreadbetters called London's FTSE to start trading 0.2-0.3 percent higher, it said.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.69% to 21,017.13, Japan’s Nikkei 225 gained 2.36% to 10,255.15, South korea’s Kospi was up 1.02% to 2,039.76, Taiwan’s Taiex rose 0.78% to 8,029.46 and Singapore’s Straits Times Index…

On Bursa Malaysia, Dutch Lady was the top gainer and rose 60 sen to RM32, F&N added 24 sen to RM18.50, Petronas Dagangan added 22 sen to RM18.70, Malayan Flour Mills 21 sen to RM4.65 and KLK 20 sen to RM24.06.

Aeon Credit, Takaful and HLFG added 18 sen each to RM8.88, RM2.90 and RM12.30 respectively, while Petronas Gas and Genting PLANTATION []s gained 16 sen each to RM16.90 and RM9.41.

Metronic was the most actively traded counter with 280.1 million shares done. The counter gained four sen to 24.5 sen.

Other actives included Ariantec, Supercomnet, Naim Indah Corp, Focus, Frontken, Oversea Enterprise and TMS.

Among the decliners, Aeon fell 25 sen to RM9.15, Bintulu Port 17 sen to RM6.83, Allianz 12 sen to RM4.70, AirAsia 11 sen to RM3.35, Top Glove 10 sen to RM4.55. P.I.E., TDM, MISC and Sunway fell nine sen each to RM4.81, RM4.77, RM5.29 and RM2.62 respectively.



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Investors want improved accounting, corporate governance, says ACCA

KUALA LUMPUR (March 27): Investors want to see new and improved accounting, auditing and corporate governance standards developed in a more integrated manner, says a report by the ACCA (Association of Chartered Certified Accountants) and Grant Thornton.

The report, entitled "Putting investors at the heart of the financial system: Malaysian perspectives", is based on the insights gained from a series of roundtable discussions facilitated by ACCA and Grant Thornton in the last quarter of 2011 involving investors and investor representatives from a number of markets.

Quoting details of the report, the ACCA in a statement on Tuesday said any reform proposals towards improving the financial system should also be based on the solid understanding of investors' needs and priorities.

The report revealed their views in relation to existing global financial and accounting standards, the current and future challenges, their aspirations for reform, and the potential barriers they foresee in addressing their concerns.

Commenting on the report, launched here today, Country Managing Partner of SJ Grant Thornton, Datuk N.K. Jasani said investors should be the primary focus for global financial and accounting standards, and yet their voices in shaping future standards were not being clearly heard.

"As a result of the current fragmented way in which solutions are being proposed and the failure to place investors at the heart of the reform process, investors, businesses and their advisers remain uncertain about the global financial markets."

Country Head of ACCA Malaysia, Jennifer Lopez meanwhile said the general consensus was that adjustments to the current financial reporting framework were needed if they were to be relevant and value-creating for investors.

"The many issues raised at the discussions include the inadequacy of companies' annual statements, disjointed global standards, corporate governance and visibility to standard setters.

"The report reveals that investors want public listed companies to provide more forecasts as well as information to help analysts to create and evaluate forecasts."

Lopez added that financial information must be transparent and credible, thus the unanimous call from investors that good corporate governance be upheld. - Bernama



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Green Packet’s 11.3m shares crossed at 49.5 sen each

KUALA LUMPUR (March 27): GREEN PACKET BHD []’s 11.30 million shares or 1.7% stake was transacted off-market at an average price of 49.5 sen on Tuesday.

Stock market data showed the transaction price was 8.5 sen or 14.6% below Monday’s closing price price of 58 sen.

Green Packet closed 0.5 sen lower at 57.5 sen on Tuesday. There were 558,900 shares transacted at prices between 57 sen and 58.5 sen.



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Texchem fully redeems RM100m debt facility

KUALA LUMPUR (March 27): TEXCHEM RESOURCES BHD [] fully redeemed its RM100 million debt facility on the scheduled maturity date of March 23.

RAM Rating Services Bhd said on Tuesday the debt facility was the commercial papers/medium-term notes programme (2005/2012).

“As such, RAM Ratings no longer has any rating obligation on the debt facility, which had previously been rated BBB1/P2, with a negative outlook,” said the rating agency.



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Cagamas issues multi-tenured RM500m Sukuk Wakalah

KUALA LUMPUR (March 27): National mortgage corporation Cagamas Bhd has issued a multi-tenured RM500 million Sukuk Wakalah Bil Istithmar priced at yields of 3.35%, 3.50% and 3.70% for one, three and five year tenures respectively.

It said on Tuesday this was Malaysia’s first-of-its-kind Sukuk Wakalah as its structure arose from the commingling of debts (arising from a commodity murabahah transaction) with equity assets constituting an investment (istithmar) portfolio.

Cagamas said the Sukuk Wakalah meets the Accounting and Auditing Organisation for Islamic Financial Institutions (AAOIFI) standards. It is deemed an investment instrument tradable at any price in the secondary market.

“The innovative Sukuk Wakalah is expected to widen and diversify the company’s investor base by enhancing secondary market liquidity for Cagamas Sukuk through the increased participation of Shariah compliant investors who would normally hold Sukuk which is deemed as debt instrument until maturity,” it said.

Cagamas said the inaugural issuance of Sukuk Wakalah widened the investment options available to Shariah compliant investors and reaffirmed Cagamas commitment to promoting the development of the Malaysian capital market and Malaysia as a premier global Islamic financial center.

The joint lead managers for the issuance were AmInvestment Bank Bhd and RHB Investment Bank Bhd.



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Sime Darby off day’s high, UOB Kay Hian Research TP RM12.05

KUALA LUMPUR (March 27): Shares of SIME DARBY BHD [] rose a high of RM9.79 on Tuesday before giving up the gains in the afternoon session in the absence of follow-through buying.

At 3.03pm, Sime Darby was unchanged at RM9.73.

The FBM KLCI was up 4.22 points to 1,587.20. Turnover was 1.29 billion shares valued at RM883.91 million. There were 334 gainers, 344 losers and 353 stocks unchanged.

UOB Kay Hian Malaysia Research said on Tuesday it was maintaining a BUY and target price of RM12.05 based on the sum-of-the-parts method, which implies a blended 15 times 2013F price-to-earnings.

“We continue to like Sime for its defensive PLANTATION [] business, decent dividend yield of 3.6% and good earnings growth visibility,” it said.

The research house said with plantation companies expanding their operations, plantation land is getting scarce, especially those that are suitable for oil palm plantation. This has resulted in land prices increasing by 30%-40% over the past four years.

“Sime is the largest plantation company in Malaysia by landbank. It has a sizeable plantation landbank in Malaysia and Indonesia of 976,000ha, of which about 463,000ha is in Malaysia and 286,000ha in Indonesia. Also, rising urbanisation has resulted in significantly higher valuations for plantation land near to urban centres, especially in Peninsular Malaysia,” it said.

UOB Kay Hian Research said besides having the largest plantation landbank, with about 5,410ha of land for property development (versus UEM Land’s 2,800ha and S P Setia’s 1,800ha), Sime owns the largest property landbank in Malaysia.

“Sime’s large landbank concentrated in Selangor is best for mass-property development. The government’s emphasis on mass-market property and financing scheme for first-home buyers could further boost the need to unlock land for property development. To ride on the rising property land prices, Sime has about six township developments in the pipeline for future development,” it said.



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Glove makers among top losers

KUALA LUMPUR (March 27): Glove makers Top Glove, Hartalega and Kossan were among the top losers in afternoon trade on Tuesday despite the overall firmer market.

At 2.46pm, the Top Glove was down 12 sen to RM4.53 with 350,900 shares done, Haratalega and Kossan lost seven sen each to RM8.02 and RM3.23. Supermax was unchanged at RM1.88.

The FBM KLCI was up 4.55 points to 1,587.53. Turnover was 1.18 billion shares done valued at RM802.06 million. There were 326 gainers, 342 losers and 344 counters unchanged.



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KLCI pares down gains at mid-day

KUALA LUMPUR (March 27): the FBM KLCI pared down some of its gains at the mid-day break on Tuesday while key regional markets mostly rebounded on the back of the firmer overnight close at Wall Street.

Asian stocks rebounded on Tuesday and the dollar struggled after Federal Reserve Chairman Ben Bernanke said ultra-loose monetary policy was still needed to reduce unemployment even though the U.S. economy has shown signs of improvement, according to Reuters.

Wall Street stocks had risen more than 1 percent on Bernanke's comments, which supported views that easy monetary policy would remain in place for some time and fanned expectations for more asset purchases by the U.S. central bank, it said.

The FBM KLCI was up 5.20 points to 1,588.18 at the mid-day break, lifted by gains at select blue chips. The index had earlier risen to its intra-morning high of 1,591.03.

Losers edged gainers by 334 to 311, while 333 counters traded unchanged. Volume was 1.09 billion shares valued at RM726.26 million.

The ringgit strengthened 0.33% to 3.0697 versus the US dollar; crude palm oil futures for the third month delivery rose RM3 per tonne to RM3,462, crude oil fell 28 cents par e barrel to US$106.75 and gold lost US$3.15 an ounce to US$1,686.93.

At the regional markets, Japan’s Nikkei 225 rose 1.56% to 10,174.10, Hong Kong’s Hang Seng Index gained 1.37% to 20,951.20, the Shanghai Composite Index edged up 0.20% to 2,355.29, Taiwan’s Taiex was up 0.42% to 8,001.40, South Korea’s Kospi rose 0.60% to 2,031.27 and Singapore’s Straits Times Index added 0.85% to 2,999.72.

On Bursa Malaysia, Dutch Lady rose 60 sen to RM32, F&N was up 28 sen to RM18.54, Petronas Dagangan gained 24 sen to RM18.72, HLFG 18 sen to RM12.30, Genting PLANTATION []s 16 sen to RM9.41, MPI 15 sen to RM3.28, Petronas Gas and KLK up 14 sen each to RM16.88 and RM24, Amway 11 sen to RM9.81 and Ekovest 10 sen to RM2.70.

Metronic was the most actively traded counter with 152.12 million shares done. The stock rose 2.5 sen to 23 sen.

Other actives included Ariantec, Supercomnet, Frontken, Oversea Enterprise, Focus, TMS, Edusopec and Flonic.

Decliners this morning included Nestle, Supercomnet, SMPC, NISC, Top Glove, Favelle Favco, Allianz, AirAsia and Kossan.



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Supercomnet price surge reverses, falls to low of 33.5 sen

KUALA LUMPUR (March 27): The share price of Supercomnet Technologies Bhd, which rallied on Monday on speculation of a takeover, reversed its course on Tuesday and emerged as one of the top losers.

Its share price fell to a low of 33.5 sen, down 16 sen from Monday’s close of 49.5 sen.

At 12.30pm, it was down 11 sen to 38.5 sen with 57.25 million shares done.

The FBM KLCI rose 5.2 points to 1,588.18. Turnover was 1.09 billion shares valued at RM726.23 million. There were 311 gainers, 334 losers and 333 stocks unchanged.

On Monday, the share price jumped 19.5 sen to 49.5 sen in heavy trade. Its unusual market activity prompted a query from Bursa Malaysia Securities.

The company, responding to the query after market close, said its major shareholder and director Wu Chung-Jung had entered into an agreement with Mohd Nazifuddin Mohd Najib on March 25.

Wu, who was acting on behalf of several shareholders, had signed the agreement to give Nazifuddin an option to purchase 45.35 million shares of 10 sen each at 22.5 sen, representing 18.66% of the paid-up.



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KLCI rebounds at mid-morning

KUALA LUMPUR (March 27): The FBM KLCI rebounded at mid-morning on Tuesday, in line with the overnight gains at Wall Street and improved sentiment at the key regional markets.

At 10.05am, the FBM KLCI added 6.76 points to 1,589.74, lifted by gains at select blue chips including Petronas-linked stocks and index-linked PLANTATION [] counters.

Gainers led losers by 275 to 186, while 258 counters traded unchanged. Volume was 434.91 million shares valued at RM221.33 million.

Wall Street stock rose more than 1% on Monday, as Federal Reserve Chairman Ben Bernanke's comments supported views that easy monetary policy would remain in place for some time and fanned expectations for more asset purchases by the U.S. central bank, according to Reuters.

Asian stocks rebounded on Tuesday and the dollar eased after Federal Reserve Chairman Ben Bernanke said ultra-loose monetary policy was still needed to reduce unemployment even though the U.S. economy has shown signs of improvement, it said.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.26% to 20,929.10, the Shanghai Composite Index added 0.42% to 2,360.44, Taiwan’s Taiex gained 0.30% to 7,991.17, South Korea’s Kospi rose 0.73% to 2,034.01 and Singapore’s Straits Times Index was up 0.67% to 2,994.38.

Meanwhile, Japan’s Nikkei 225 fell 1.69% to 10,187.40.

BIMB Securities Research in a note March 27 said Ben Bernanke’s encouraging statement on the US job market acted as a confidence booster that propped the Dow Jones Industrial Average 161 points higher to convincingly breach its resistances of 13,150 and 13,200.

Over in Europe, more commitment (if required) would be available by Eurozone policy makers enhanced equities participation with almost all closed on positive territory.

The research house said that regionally, most Asian bourses ended Monday’s session on a weaker note as the developments in the west were missed.

Domestically, the FBM KLCI finally corrected with a marginal 2.9 point dip to 1,583 after fighting really hard to stay above the 1,585 level, it said.

“Nonetheless, with the positives all round overnight, we would reckon this to sway trading on a more positive note and the index should trend between the 1,585/90 range.

“We noticed foreign buying was apparent again yesterday with a net participation of RM233 million pushing total inflow of foreign monies surpassing the RM4 billion mark year-to-date,” it said.

On Bursa Malaysia, Dutch lady was the top gainer and rose 46 sen to RM31.86, Petronas Dagangan was up 22 sen to RM18.70, Petronas Gas and F&N rose 14 sen each to RM16.88 and RM18.40, Ta Ann and MPI up 11 sen each to RM6.11 and RM3.24, while Hong Leong Industries, BAT, PPB and KLK gained 10 sen each to RM4.17, RM54.10, RM16.74 and RM23.96 respectively.

Oversea Enterprise was the most actively trade counter with 25.18 million shares done. The stock rose six sen to 20.5 sen.

Other actives included Supercomnet, TMS, Eduspec, Iris Corp, Carotech and Flonic.

Meanwhile, the decliners included Supercomnet, Hartalega, MSM, CHHB, AirAsia, SMPC, PUC, Favelle Favco and Chin Well.



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UMW shares rise on earnings and target price upgrade

KUALA LUMPUR (March 27) : UMW HOLDINGS BHD [] shares rose as much as 1.1 % or 8 sen to RM7.29 in morning trade on Tuesday after RHB Research Institute raised its earnings forecast and fair value for the company.

In a note on Tuesday, RHB said it has revised upwards its earnings forecast for UMW by between 0.8% and 1% for financial years ending Dec 31, 2012 to 2014. The research house has raised its target price for the stock from RM6.70 to RM7.30.

“UMW is set for a better year operationally and is unlikely to be encumbered by provisioning that has blighted earnings in the past two years. UMW’s share price is expected to be well supported by a reasonably attractive dividend yield," RHB said.

UMW shares were traded at RM7.23 as at 9.18am.



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CIMB Research keeps underperform call on Adventa, TP RM1.49

KUALA LUMPUR (March 27): CIMB Equities Research is maintaining its Underperform call on Adventa and target price basis of 9.14 times CY13 price-to-earnings at RM1.48.

It said on Tuesday this was a 30% discount to Top Glove’s two-year average. Derating catalysts include falling demand for its natural rubber (NR) product and lower nitrile margins. CIMB Research said it prefered Hartalega.

Commenting on Adventa’s first quarter results for the period ended Jan 31, 2012, it said at 19% of its full-year estimate, 1Q core EPS was in line as it expected an improvement in sales in the quarters ahead when Adventa’s nitrile glove plant starts.

Also, raw material prices are expected to remain stable, enabling management to raise selling prices and pass costs on, it said.



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OSK Research maintains Buy on Mudajaya at RM3.72

KUALA LUMPUR (March 27): OSK Research is maintainind a Buy on Mudajaya at a revised fair value of of RM3.72, based on a sum-of-parts valuation.

It said on Tuesday that during its recent conversation with Mudajaya following the release of its 4QFY11 results, management said works at Chattisgarh were largely on track for all four units to be completed by 3Q13.

“On the domestic front, jobs may continue to flow, with a number of upcoming potential contracts such as civil works for the 1,400MW Prai power plant worth RM250 million, Kinrara-Damansara Expressway worth RM1.5 billion to RM2 billion, LRT depot in Putra Heights worth RM400 million, as well as aerobridges at KLIA2 and the Petronas Solar Farm in Kuantan worth RM100 millio each.

“We continue to like Mudajaya’s relatively attractive valuation, strong contract wins year-to-date, and potential for more contracts. Maintain BUY, at a revised FV of RM3.72, based on SOP valuation,”said OSK Research.



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Maybank IB Research maintains Hold on Mah Sing

KUALA LUMPUR (March 27): Maybank Investment Bank Research is maintaining its Hold call on MAH SING GROUP BHD []’s latest 4.3-acre land acquisition in Kota Kinabalu given its relatively high pricing.

It said development on the land, with an estimated RM300 million gross development value, is expected to enhance our earnings estimates by 1%-3%.

“Separately, we are concerned on the termination of the RM220 million in enbloc sale (or 96 units) for Icon Residence Mont Kiara(IRMK) due to rising sales risk in the Mont Kiara area.

“All in all, we adjust our earnings by -3% to +1.5%. Our RM1.77 TP is based on a 40% discount to our RM2.95 RNAV,” Maybank Research said.



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OSK Retail Research sees positive consolidation of Cypark Resources

KUALA LUMPUR (March 27): OSK Retail Research said Cypark Resources appears to have ended its downtrend last month after closing above RM1.75, breaking the series of lower highs.

It said on Tuesday that consolidation naturally takes over at this juncture and the broken resistance has turned into support.

“Together with other positive indications, a continuation of the uptrend is to be expected as long as the stock stays above RM1.75,” it said.



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HDBSVR sees market staging a rebound

KUALA LUMPUR (March 27): Hwang DBS Vickers Research said a robust overnight performance on Wall Street could give a fillip to Asian equities on Tuesday.

It said that major US stockindices jumped between 1.2% and 1.8% after the Federal Reserve chairman said accommodative monetary measures are still needed to stir the economy.

“Back home, the benchmark FBM KLCI is expected to pull away from the immediate support level of 1,580, possibly climbing towards the psychological barrier of 1,600 ahead,” it said.

HDBSVR said among the counters that may ride on the buoyant market sentiment include: (a) IOI Corporation, following a news report on the prospect of the PLANTATION [] giant making a huge paper gain of RM696 million arising from the impending listing of its Indonesian-based associate company in Singapore; (b) CBIP, after clinching a RM45 million contract to build a palm oil refinery plant; and (c) MSC, which has agreed to pay a higher royalty to the Perak state government on its sales of tin-in-concentrates in exchange for an extension in the mining lease period for its tin mine operation in the state.



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Stocks to watch: Mah Sing, Malaysia Pacific Corp, Adventa, BLand

KUALA LUMPUR (March 26): Malaysian stocks may continue to find support from local institutional investors on Tuesday as pre-election sentiment dominate the domestic backdrop against global economic growth concerns

Analysts said there are growing concerns on the sustainability of major economies including the the US and China, sentiment from which, have the ability to influence the direction of financial markets.

“Technically, the current rising wedge (in the FBM KLCI) already implies bearish connotations and will be confirmed upon a decisive breakout,” TA Securities Holdings Bhd said on Monday.

The research house said while the KLCI could advance, downside risk to the stock market barometer is on the rise.

The 30-stock KLCI erased its earlier gains to finish at 1,582.98, down 0.18% or 2.85 points on Monday

Stocks worth noting on Tuesday are MAH SING GROUP BHD [], MALAYSIA PACIFIC CORP BHD [] (MPCorp), ADVENTA BHD [] and BERJAYA LAND BHD [].

Other stocks are UNISEM (M) BHD [], MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI), Supercomnet Technologies Bhd, Xidelang Holdings Ltd, and CB INDUSTRIAL PRODUCT HOLDING [] Bhd.

Mah Sing has proposed a commercial property project in Kota Kinabalu’s central business district with a combined gross development value of RM830 million.

Meanwhile Amanah Raya Development Sdn Bhd is selling its entire 22% syake of Lakehill Resort Development Sdn Bhd to Malaysia Pacific Corp Bhd (MPCorp) for RM100.88 million. MPCorp said Amanah Raya Development had exercised its put option to sell the stake to MPCorp’s unit.

Adventa posted a weaker set of financial results for the first quarter ended Jan 31, 2012 with net profit falling 33% to RM2.71 million from RM4.05 million as it was impacted by margin squeeze, foreign exchange loss and higher finance cost.

Its revenue slipped 2.2% to RM103.81 million from RM106.19 million while earnings per share were 1.77 sen compared with 2.65 sen.

CIMB Equities Research has upgraded Unisem from “underperform” to “outperform” and raised its fair value by 87% from RM1 to RM1.87. CIMB has also increased its FY12 to FY14 earnings forecasts for the semiconductor manufacturer by 7% to 19%

It also upgraded MPI, also a semiconductor entity, from “underperform” to “outperform” and raised its target price for the stock from RM2.79 to RM4.08, up 46%.

Berjaya Land's net profit fell 93% to RM2.52 million in the third quarter ended Jan 31, 2012 from RM34.91 million a year ago, as lower real estate sales offset higher income from its gaming and hospitality operations. Its total group revenue rose 13% to RM1.12 billion from RM990.6 million.

Bursa Malaysia has queried wire and cable manufacturer Supercomnet on the unusual trading patterns of its shares. The stock rose as much as 93% or 28 sen to an intraday high of 58 sen on Monday before closing lower at 49.5 sen. Some 41 million shares were transacted, putting the stock among the most active and top gainers.

Xidelang shares will go ex-dividend on Tuesday. The shoe manufacturer had last January proposed a bonus share issue which is undertaken concurrently with a private placement of new shares and renounceable rights issue of warrants.

CBIP, has clinched a RM44.67 million job to build a 45 tonne per hour palm oil mill from Syarikat Ladang Sungai Terah Sdn Bhd, a wholly-owned subsidiary of Kumpulan Perladangan PKINK Bhd.



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