Mustapa: Proton, Perodua should continue collaboration

KUALA LUMPUR (March 28): PROTON HOLDINGS BHD [] and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) should continue to collaborate in areas they had previously agreed on, said Minister of International Trade and Industry (MITI), Datuk Seri Mustapa Mohamed .

This, he added, is despite the recent developments in the pioneer national car maker.

He said the collaboration talks, had benefited both carmakers and the automotive industry, as a whole.

"As this is the case, I do not see why the new owners of Proton, DRB-HICOM BHD [], should not continue with what had been agreed to by the old management.

"The previous Proton management and Perodua had agreed to collaborate in certain areas such as vendor distribution and marketing, as the merger proposal was extreme," he added.

Mustapa said MITI would continue to engage with both national car companies.

He also said that he was given a briefing by DRB-Hicom Bhd last week.

Perodua Managing Director Datuk Aminar Rashid Salleh said recently that the compact car maker is open to collaboration talks with DRB-Hicom.

However, he reiterated that Perodua, as the country's largest car maker, is still against any kind of merger between the two entities.

On Jan 16, DRB-Hicom entered into a sale and purchase agreement with Khazanah Nasional Bhd, to acquire 42.74 per cent of the issued and paid up share capital of Proton for RM1.291 billion. - Bernama



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George Kent's FY pre-tax profit declines to RM26.2m

KUALA LUMPUR (March 28): GEORGE KENT (M) BHD []'s pre-tax profit for financial year ended Jan 31, 2012 fell to RM26.2 million from RM32.4 million in the same period of 2011.

Revenue declined to RM152.3 million from RM165 million previously, it said in a filing to Bursa Malaysia here on Wednesday.

George Kent said the weaker results were mainly due to lower exports of original equipment manufacturer (OEM) water meters, brought about by global economic uncertainty.

For the fourth quarter ended Jan 31, 2012, its pre-tax profit fell to RM9.1 million from RM11.1 million in the same period 2011. Revenue, however, increased to RM48.9 million from RM47.9 million previously.

For the quarter, the group has proposed a final dividend of three sen per share.

On prospects, chairman Tan Sri Tan Kay Hock said the company has put in more efforts to secure new contracts for its meter manufacturing division, which resulted in a strong order pipeline.

"The group is expecting improvements in all market segments of its meter manufacturing division, namely the domestic, OEM and non-OEM markets.

"We continue to enjoy steady growth in the local market, as well as increasing exports to Australia and South Africa," he said. - Bernama



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ECM Libra posts RM53.8m pre-tax profit

KUALA LUMPUR (March 28): ECM Libra Financial Group Bhd posted a lower pre-tax profit of RM53.8 million for the financial year ended Jan 31, 2012, compared to RM86.7 million last year.

In a filing to Bursa Malaysia here on Wednesday, the company said revenue decreased to RM178.3 million from RM218.3 previously.

During the year, net interest income rose to RM36.2 million from RM29.5 million as the group's investment bank subsidiary maintained a strong capital adequacy ratio of 51 per cent, one of the highest in the banking industry.

The company's shareholders funds had crossed the RM1 billion mark, ECM Libra said.

The company has recommended a final single tier dividend of 2.4 sen per ordinary share, representing a dividend pay-out ratio equivalent to 63 per cent of net profit for the year. - Bernama



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Hwang DBS 2Q pre-tax profit dips to RM23.4m

KUALA LUMPUR (March 28): Hwang-DBS (Malaysia) Bhd's pre-tax profit for the second quarter ended Jan 31, 2012, slipped to RM23.45 million from RM32.78 million in the same quarter last year.

Revenue fell to RM91.54 million from RM109.61 million previously, Hwang-DBS said in a filing to Bursa Malaysia on Wednesday.

"The uncertain global financial conditions have affected the equity and capital markets in which we operate in.

"The lower profitability was mainly attributable to reduction in brokerage income, net interest income, advisory fee income and marked-to-market gain on derivatives," it said. - Bernama



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Maybank provides option for shareholders on dividends

KUALA LUMPUR (March 28): MALAYAN BANKING BHD [] has approved an option for shareholders to receive the electable portion of their dividends partly in cash and to reinvest the remaining portion into new shares.

It said the board had on Wednesday approved the adoption of an additional option for shareholders for the fourth dividend reinvestment plan (DRP) and all its futures DRPs.

On Feb 23, the board had proposed a final cash dividend of 36 sen per share, less 25% tax (equivalent to 24 sen net dividend) for the six-month period ended Dec 31, 2011 which could be reinvested into new shares.



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Gamuda 2Q net profit up 45.1% at RM136.47m, upbeat on outlook

KUALA LUMPUR (March 28): Infrastructure-based GAMUDA BHD []’s earnings rose 45.1% to RM136.47 million in the second quarter ended Jan 31, 2012 compared with RM94.02 million a year ago, underpinned by higher contributions from the CONSTRUCTION [] and property divisions.

Announcing the results on Wednesday, Gamuda expected to achieve a stronger performance this year supported by its on-going construction projects, continued strong property sales and steady earnings from the water and expressway concessions divisions.

Its revenue increased by 26.7% to RM769.33 million from RM607.19 million. Earnings per share were 6.6 sen compared with 4.59 sen.

For the first half, earnings increased by 47.2% to RM268.79 million from RM182.55 million in the previous corresponding period. Revenue rose 13.6% to RM1.411 billion from RM1.241 billion.

Commenting on its construction division, it said the increase in profit before taxation was due to higher work progress from the electrified double tracking railway project.

Its property division benefited from higher profits from existing projects in Malaysia and Celadon City’s land sale to Aeon Co. of Japan.

As for the water and expressway concessions division, Gamuda said the financial performance was consistent with last year’s performance.

On the electrified double tracking railway project, it said progress was on schedule with 77% of the works completed. The scheduled completion date for the main section of works from Padang Besar to Ipoh (Spine line) is June 2014, whereas the section of works from Bukit Mertajam to Butterworth (Spur line) is scheduled for completion in November 2014.

On the new Doha international airport project in Qatar, it said the project was substantially completed and was in the early stage of the testing and commissioning phase. It was expected to be handed over to the client in July 2012.

On the Yen So sewage treatment plant project in Hanoi, Vietnam, Gamuda said the project was substantially completed and it was undergoing the testing and commissioning phase. The completed project is expected to be handed over to the client in May 2012.



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Nakamichi disposes of disused plant for RM19m

KUALA LUMPUR (March 28): NAKAMICHI CORPORATION BHD [] is disposing of a piece of industrial land and disused building in Port Klang for RM19 million.

It said on Wednesday it had signed a sale and purchase agreement with Century Advance TECHNOLOGY [] Sdn Bhd.

Nakamichi said the proposed disposal of property included a double-storey factory with an annexed double-storey office building and warehouse.

“This property has been vacant since 2007 with the relocation of the company’s then audio and visual business to Singapore in 2007. The audio and visual business has since ceased operations in early 2011,” it said.



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SYF Resources posts 2Q net profit of RM3.22m

KUALA LUMPUR (March 28): SYF RESOURCES BHD [] swung into the black with net profit of RM3.22 million in the second quarter ended Jan 31, 2012 compared with net losses of RM431,000 a year ago due to higher sales with lower raw material costs.

It said on Wednesday lower finance cost after the debts restructuring exercise also contributed significantly to the net profit.

SYF’s revenue rose 32.4% to RM42.43 million from RM37.79 million a year ago underpinned by good sales in the upstream segment as the supply of raw materials was consistent. Its earnings per share were 1.32 sen compared with loss per share of 0.51 sen.

For the first half ended Jan 31, 2012, it posted net profit of RM42.46 million compared with net loss of RM1.01 million in the previous corresponding period. Revenue was 9.1% higher at RM85.41 million compared with RM78.23 million a year ago due to good sales in the upstream segment and improved production output.



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Eng Teknologi board accepts revised takeover offer, to seek shareholders’ consent

KUALA LUMPUR (March 28) :The board of ENG TEKNOLOGI HOLDINGS BHD [] has accepted the revised takeover offer of RM2 a share by the founders and major shareholders of the hard disk drive component manufacturer.

In a statement to the exchange on Wednesday, Eng Teknologi said its directors will seek the company’s shareholders’ consent on the revised offer at an extraordinary general meeting.

Founders of Eng Teknologi Datuk Teh Yong Khoon, and Low Yeow Siang via private vehicle TYK Capital Sdn Bhd, have proposed to lower the offer price to RM2 from RM2.50 as their financiers were unable to justify the funding of the takeover at RM2.50, according to Eng Teknologi.

OSK Investment Bank Bhd is the independent adviser for the exercise.



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Samsung-Bintai Kinden JV gets S$166m contracts

KUALA LUMPUR (March 28): A subsidiary of BINTAI KINDEN CORPORATION BHD [] and its partner Samsung C&T Corporation have secured S$166.23 million (RM405.10 million) in contracts from Singapore’s Land Transport & Authority.

Bintai Kinden said the contracts were for the downtown line Stage 3 project of its mass rapid transit in Singapore.

The first contract was to supply and install electrical services for contract value of S$78.29 million. The second contract was to supply and install tunnel ventilation and environmental control systems for S$87.93 million.

The joint venture comprised of Samsung C&T Corp and Bintai Kinden’s subsidiary Bintai Kindenko Pte Ltd (BKPL). Samsung holds a 60% stake in the JV and BKPL 40%.

The contracts are due for completion by end-2016.



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Nextnation to raise RM15 million from private placement

KUALA LUMPUR (March 28) : NEXTNATION COMMUNICATION BHD [] plans to raise up to RM15.49 million under a private placement of 137.21 million new shares to finance the telecommunication software developer’s commercial land acquisition, and capital needs.

In a statement to the exchange on Wednesday, Nextnation said the placement shares which account for 30% of its issued share base, will come with free detachable warrants. These warrants will be issued on the basis of three warrants for every two new shares.

Nextnation said the private placement will be undertaken after the company’s planned bonus issue of 45.74 million warrants on the basis of one warrant for every 10 existing shares held.

Proceeds from the private placement will partially finance the firm’s purchase of a RM18.52 million land measuring 5.9 acres (2.4ha) in Cyberjaya to accommodate the group’s office , data centre, research and development laboratory, and incubation campus. The land will be acquired from Cybeview Sdn Bhd, a subsidiary of the Minister of Finance Inc, according to Nextnation.

Trading of Nextnation shares was suspended from 2.30pm to 5pm on Wednesday in conjunction with the announcement of the corporate exercises The stock was last transacted at 10.5 sen.



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KLCI closes lower as Asian markets dip

KUALA LUMPUR (March 28): The FBM KLCI closed lower on Wednesday as Asian markets slipped into the red, led by the Shanghai Composite Index that fell more than 2.5%.

The FBM KLCI fell 4.35 points to close at 1,583.75. Market breadth was negative with losers beating gainers by 491 to 244, while 350 counters traded unchanged. Volume was 1.56 billion shares valued at RM1.31 billion.

Asian markets were mostly in the red, as Hong Kong and China shares ended lower on Wednesday, as weak corporate earnings reports increased worries over the domestic economy, according to Reuters.

At the regional markets, the Shanghai Composite Index lost 2.65% to 2,284.88, Hong Kong’s Hang Seng index fell 0.77% to 20,885.42, Japan’s Nikkei 225 was down 0.71% to 10,182.57, South Korea’s Kopsi fell 0.39% to 2,031.74 and Singapore’s Straits Times Index shed 0.10% to 3,015.98.

On Bursa Malaysia, Southern Acids was the top loser and fell 20 sen to RM2.30, Hartalega fell 15 sen to RM7.95, Petronas Gas 14 sen to RM16.76 and MPI, 13 sen to RM3.12.

Fima Corp, Y&G, Toyo Ink and Coastal Contracts lost 12 sen each to RM6.11, 58 sen, RM1.46 and RM1.98 respectively.

Shares of Supercomnet extended their losses in active trade for the second day on Wednesday after the proposed disposal of an 18.66% stake by several major shareholders fell through. Supercomnet fell 15 sen to 21 sen with 110.9 million shares traded.

Other actives included Metronic, Utopia, Ariatec, IFCA MSC, Silver Bird, Ingenuity Solutions and Naim Indah Corp.

Gainers included Dutch Lady, BAT, Bintulu Port, Takaful, BLD PLANTATION []s, MAHB, Sungai Bagan, Manulife and SMPC.



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SC approved RM118.9 bn fund raising in 2011

KUALA LUMPUR (March 28): Fund raising approved by the Securities Commission rose 54.4% to RM118.90 billion in 2011 from RM77 billion in 2010, with private debt securities (PDS) accounting for the bulk of the fund raising.

The SC said on Wednesday the Malaysian capital continued to grow in 2011, with initial public offers (IPOs) accounting for RM6.6 billion and PDS RM112.3 billion. This was a contrast from 2010 when IPOs accounted for RM13.40 billion and PDS RM63.6 billion.

“This marked increase reflects strong confidence in the fund raising environment and sukuk approvals which had more than doubled to RM78.9 billion from RM38.3 billion the year before,” said the SC.

The approvals included the world's largest corporate sukuk programme of RM23.3 billion by Projek Lebuhraya Usahasama Bhd, under which issuance commenced in January 2012.

“Malaysia remains at the forefront of the sukuk market, accounting for 73% of the total sukuk issued globally,” it said.

The SC explained total funds raised via the PDS market increased by 32.8% to RM71.2 billion in 2011 from RM53.6 billion in 2010.

It added global investors were searching for stable income with higher yields and total foreign investment in PDS increased from RM14.3 billion at end-2010 to RM15.1 billion at end-2011, of which RM10.09 billion was in conventional PDS with the remaining RM5.05 billion in sukuk.

As for the IPOs, the SC approved 14 for the Main Market in 2011. As for the equities market capitalisation, it was RM1.28 trillion at end 2011 while overall average trading activity increased by 31.6% to a daily average of 1.34 billion units from a year ago.

As for the equity market, the SC said total funds raised fell to RM12.6 billion in 2011 from RM32.1 billion the year before in line with a general slowdown in IPO activity worldwide.

The SC, in its comments on the fund management industry, said it managed RM423.6 billion as at Dec 31, up 12.2% from RM377.5 billion in 2010

Unit trust funds constituted the largest share of the Malaysian fund management industry and the aggregate NAV of unit trust funds grew by 9.99% to RM249.5 billion in 2011 (compared to RM226.81 billion in 2010), accounting for 19.42% of Bursa Malaysia’s market capitalisation at the end of 2011.

SC chairman Tan Sri Zarinah Anwar said over the next 10 years, the capital market would have to take on an even bigger role to provide the long-term financing required to sustain domestic growth amid a challenging global environment for growth and jobs, while adapting and remaining resilient to major shifts in the economic and financial landscape.



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Rio Tinto's decision won't affect Samalaju aluminium smelting project

KUCHING (March 28): The termination of agreement by Rio Tinto Aluminium (M) Sdn Bhd (RTA) and CAHYA MATA SARAWAK BHD [] (CMS) for the aluminium smelter project will not affect the original plan to develop the project in Samalaju Industrial Park (SIP).

Sarawak State Industrial Development Minister, Datuk Amar Awang Tengah Ali Hassan said to date there are 20 companies that have been shortlisted to invest in SIP, including a few companies involved in aluminium smelting projects.

"We are not worried (about the termination of the agreement). Our concern is whether we have sufficient power to supply to the heavy industries in Samalaju," he told reporters after the launch of Innovation and Integrity Day of Sarawak Land and Survey Department here.

Awang Tengah, who is also the Second Resource Planning and Environment Minister, said several interested investors especially from China and Arab countries have been identified to proceed with the project, which was expected to commence production in 2013.

In a statement yesterday, CMS said the termination involved heads of agreement between RTA and Samalaju Aluminium Industries Sdn Bhd, its wholly owned subsidiary, and the memorandum of understanding between the two companies and Sarawak Energy Bhd. - Bernama



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QSR to invest RM10m for 20 Pizza Hut delivery outlets

KUALA LUMPUR (March 28): QSR BRANDS BHD [] will spend up to RM10 million to open another 20 Pizza Hut Delivery (PHD) outlets nationwide by year-end as part of its expansion plan, said managing director, Jamaludin Md Ali.

"As of Feb 21 last year, we have 42 PHD outlets, which contributed about five per cent to our 2011 revenue of RM20 million," he said at the PHD concept launch here on Wednesday. QSR is the operator of the PHD chain of stores in Malaysia.

Jamaludin said the delivery arm of Pizza Hut has a lot of potential and QSR expected a double-digit growth in revenue this year.

On sales, he said, 70 per cent came from the delivery business and 30 per cent from take-away.

"We also see a potential in online ordering, which made up five per cent of the delivery business. In Hong Kong, Taiwan and Singapore, online ordering made up over 20 per cent of their businesses," he said.

For Pizza Hut's dine-in outlets, Jamaludin said, the company planned to invest another RM10 million to set up another 10 in the country.

"For overseas, we plan to open another one or two outlets in Singapore," he said.

Jamaludin expected Pizza Hut to sustain its good sales in the future despite Bank Negara Malaysia's projection of four to five per cent growth in the country's economy.

On the Johor Corp buyout deal, Jamaludin said announcements would be made soon. - Bernama



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SPNB picks local partner for RM200m real estate project near Dang Wangi LRT

KUALA LUMPUR (March 28): Syarikat Prasarana Negara Bhd has picked a local developer as its partner to develop a high rise mixed use real estate project over the existing Dang Wangi light rapid transit (LRT) station.

Prasarana managing director Datuk Shahril Mokhtar said on Wednesday the plans were to develop a project comprising office and residential PROPERTIES [] with an estimated gross development value of RM200 million.

Shahril was speaking after SPNB inked a memorandum of understanding with the Malaysian Anti-Corruption Commission.

Shahril did not disclose the name of the partner but said an announcement would be made soon following the close of a recent tender exercise to seek proposals.

The Dang Wangi station will be Prasarana's first real estate development site to unlock value from its land and help diversify its revenue stream.



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OCBC substantial shareholder in WCT

KUALA LUMPUR (March 28) : Singapore-based Oversea-Chinese Banking Corp Ltd (OCBC) has emerged as a substantial shareholder in Malaysian CONSTRUCTION [] firm WCT BHD [] after acquiring a 5.01% stake in the builder.

In a statement to Bursa Malaysia on Wednesday, WCT said OCBC had purchased the stake comprising 40.98 million shares in the open market on Monday. At WCT shares’ closing price of RM2.51 on that day, OCBC’s stake could be worth RM102.86 million

Meanwhile, WCT also indicated in a separate statement that Kumpulan Wang Persaraan (KWAP) had acquired a collective 2.14 million shares in the builder last Wednesday and Thursday. Following the purchase, KWAP owns 6.04% in WCT.

Shares of WCT settled at RM2.38 at lunch break on Wednesday.



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Shell: New diesel processing unit ready year-end

KUALA LUMPUR (March 28): Shell Refining Company (Federation of Malaya) Bhd said its new diesel processing unit is 73% complete and is expected to be commissioned by year-end.

Sepaking after its annual general meeting on Wednesday, its chairman Anuar Taib said the new 6,000 tonnes per day diesel processing unit, which cost RM810 million, will allow the company to vary feedstock options and is expected to improve refining margins.

He said the company's profitability this year would depend not only on crude oil prices, but the prices of oil processed products.



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Petronas-Total to jointly study devt of gas field off Sarawak

KUALA LUMPUR (March 28): Petroliam Nasional Bhd has inked an agreement with French outfit Total to jointly study the development and production potential of K5, a high carbon dioxide gas field offshore Sarawak.

In a statement Wednesday, Petronas said it signed a heads of agreement (HOA) with Total on March 27 to explore the possibility of developing the field in ways that are technically, commercially and environmentally viable.

The national oil company said scope of the study would also include the development of carbon dioxide management technologies in the areas of carbon capture, transportation and sequestration.

It said the study was set to commence immediately and would take 15 months to complete.

Petronas said that k5, which was discovered in 1970, is a sour gas field with up to 70% carbon dioxide content.

It said K5 was located about 230km from Bintulu in water depth of 80 metres.

“Successful development of, and eventual production from such a field requires extensive study and research, and if the study finds it viable, K5 will be the first gas field with more than 50%t carbon dioxide content to be developed in Malaysia,” it said.

Petronas said that as more and more discovered gas resource in Malaysia contained high carbon dioxide, it was important that the national oil firm develops the expertise and technological know-how to develop this resource in the safest, most responsible manner.

“The application of new technologies is part of PETRONAS’ continuous efforts to ensure the security of energy and gas supply to the nation,” it said.

Representing Petronas at the signing ceremony was its vice president of petroleum management Ramlan Abdul malek, while signing on behalf of Total was Total E&P Malaysia general manager Vincent Dutel.



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Trading of Nextnation shares suspended

KUALA LUMPUR (March 28) : Trading of NEXTNATION COMMUNICATION BHD [] shares will be suspended from 2.30pm to 5pm on Wednesday.

The telecommunication software developer said in a statement to the exchange that it has requested for the suspension to accommodate an announcement. Nextnation shares were last transacted at 10.5 sen.

The company which is undertaking a private placement of 41.58 million new shares, had recently fixed the issue price at 11.5 sen each. This translates into total proceeds of RM4.78 million.



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Key West jointly acquires Indon outfit to venture into O&G sector

SHAH ALAM (March 28): ACE Market listed KEY WEST GLOBAL TELECOMMUNICATIONS BHD and Maryland International Offshore Ltd have acquired Manjung Niaga Sdn Bhd (MNSB) for US$52.5 million as part of the Key West's plan to position itself as an oil and gas player.

Key West executive director Stephen Ng said on Wednesday MNSB owns 95% of PT Formasi Sumatera Energi (PT FSE) which in turn owns a 15-year joint operational right to reactivate and optimise the production of petroleum resources in the Tanjung Tiga Timur field in South Sumatera, Indonesia.

Speaking after a signing ceremony between Key West and Maryland Offshore, he said the company plans to finance the deal via a new issuance of shares amounting US$24.5 million and US$28 million in cash.

The group, which initially was focused on the telecommunications industry, had recently disposed of its telco divisions and is now positioning itself as an oil and gas player.

"Based on the current oil price of US$125 per barrel, our latest venture will bring in revenue of more than RM3.485 million a month," Ng said.



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KLCI slips at mid-day break in line with regional markets

KUALA LUMPUR (March 28): The FBM KLCI slipped at the mid-day break on Wednesday in line with the overall weaker sentiment at key regional markets, after US stocks retreated from near four-year peaks on Tuesday.

Asian shares drifted lower on Wednesday as investors waited for more clues on the state of the U.S. economy, after hopes for further stimulus from the U.S. Federal Reserve strengthened risk appetite and lifted prices the previous session, according to Reuters.

Te FBM KLCI shed 0.91 of a point to 1,587.19, weighed by losses at select blue chips including BAT, MISC and Tenaga.

Gainers trailed losers by 173 to 383, while 296 counters traded unchanged. Volume was 637.64 million shares valued at RM341.29 million.

The ringgit weakened 0.20% to 3.0635 versus the US dollar; crude palm oil futures for the third month delivery rose RM 9 per tonne to RM3,490, crude oil fell 57 cents per barrel to US$106.76, while gold lost 88 cents an ounce to US$1,679.00.

Among the decliners in the morning session, United PLANTATION []s fell 16 sen to RM24.72, BAT down 10 sen to RM54, Parkson and MISC down eight sen each to RM5.42 and RM5.21, WCT and Tenaga lost seven each to RM2.37 and RM6.42, while Box-pak, Batu Kawan and Ivory fell six sen each to RM2.18, RM18.62 and 65 sen respectively.

Shares of Supercomnet Technologies Bhd extended their losses in active trade for the second day on Wednesday after the proposed disposal of an 18.66% stake by several major shareholders fell through.

Supercomnet fell 13 sen to 23 sen with 85.09 million shares traded.

Other actives included Utopia, Metronic, Ariantec, Silver Bird, and Tiger Synergy.

Meanwhile, the gainers included Dutch Lady, Takaful, Bintulu Port, TDM, Widetech, Alliaaz, KLK< KFCH and Kulim.



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Limited gains for KLCI at mid-morning

KUALA LUMPUR (March 28): Gains were limited for the FBM KLCI at mid-morning on Wednesday in line with the tepid trade at key after US stocks retreated from near four-year peaks on Tuesday.

At 10.05am, the FBM KLCI edged up 1.32 points to 1,589. Gainers trailed losers by 169 to 213, while 223 counters traded unchanged. Volume was 386.01 million shares valued at RM126.19 million.

Asian shares drifted lower on Wednesday as investors waited for more clues on the state of the U.S. economy, after hopes for further stimulus from the U.S. Federal Reserve strengthened risk appetite and lifted prices the previous session, according to Reuters.

At the regional markets, Japan’s Nikkei 225 fell 0.95% to 10,158.20, Hong Kong’s Hang Seng Index losr 0.43% to 20,965.60, the Shanghai Composite Index was down 0.56% to 2,333.96, South Korea’s Kospi fell 0.23% to 2,035.05, singapore’s Straits Times Index lost 0.38% to 3,007.52 and Taiwan’s taiex shed 0.09% to 8,022.45.

BIMB Securities Research in a note March 28 said that after a triple digit jump on Monday, the Dow Jones Industrial Average retreated 44 points to a tad below the 13,200 support mark as traders took stock of recent developments and stay sidelined waiting for fresh catalysts.

Meanwhile, European bourses closed mostly lower reacting to the slight decline in the US consumer confidence level, it said.

The research house said that it was a good day for Asian markets as most ended up higher taking cue from the uptrend on Wall Street.

Locally, the FBM KLCI rebounded 5 points to close just below the resistance of 1,590, it said.

“We believe the benchmark index is all set to break its all time high of 1,597 soon and thereafter test the strong psychological level of 1,600.

“We strongly believe the uptrend remains intact as foreign participation again was a positive RM324 million yesterday amounting to almost RM4.5 billion year-to-date. Meanwhile, the date of GE13 is still highly speculative with the latest one touted at September,” it said.

On Bursa Malaysia, Dutch Lady rose 60 sen to RM32.60, Takaful added 11 sen to RM3.01, Petronas Gas and PPB rose eights en each to RM16.98 and RM16.48, Bintulu Port up seven sen to RM6.90, while TDM, Kulim, Sin Heng Chan and BIMB rose six sen each to RM4.83, RM4.20, RM1.06 and RM2.36 respectively.

SuperComnet was the most actively traded counter with 49 million shares done. The stock fell 12.5 sen to 23.5 sen.

Other actives included Utopia, Metronic, Silver Bird, Ariantec and Maxtral.

Decliners included United PLANTATION []s, Supercomnet, MISC, Batu Kawan, Parskson, Ivory, Hing yap, Top Glove, MSM and AIC.



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Supercomnet extends losses as proposed sale deal falls through

KUALA LUMPUR (March 28): Shares of Supercomnet Technologies Bhd extended their losses for the second day on Wednesday after the proposed disposal of an 18.66% stake by several major shareholders fell through.

At 10.10am, Supercoment fell 13.5 sen to 22.5 sen with 51.71 million shares done.

The FBM KLCI was up 0.64 of a point to 1,588.74. Turnover was 409.22 million shares valued at RM142.68 million. Losers beat gainers 226 to 170 while 227 counters were unchanged.

Supercoment announced on Tuesday that 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 fell 13.5 sen to 36 sen with 79.14 million units done on Tuesday.



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IGB to ink MoU for Johor JV property project

KUALA LUMPUR (March 28): IGB Bhd plans to build a retail mall and or mixed development in Johor Bahru under a proposed joint venture with Selia Pantai Sdn Bhd.

It said on Wednesday it would be signing a non-binding MoU with Selia Pantai for a 70:30 joint venture to acquire and develop three pieces of leasehold land for the projects.

“The MoU sets out the understanding and intention of the parties in respect of the proposed JV. The MoU shall remain valid for 30 days except as otherwise mutually agreed in writing by the parties,” IGB said.



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Syarikat Takaful shares rise 4% on growth potential

KUALA LUMPUR (March 28) : SYARIKAT TAKAFUL MALAYSIA BHD [] rose 4% or 12 sen to RM3.02 after CIMB Investment Bank Bhd said the Islamic insurance firm should trade higher at RM4.60 in anticipation of its growth potential.

In a note on Wednesday, CIMB said Syarikat Takaful, deemed an undervalued stock, may grow at a faster pace than the industry’s expansion rate of 20% within the next five years. This will be, partially, helped by the insurer’s venture in Indonesia, according to CIMB.

“The average daily trading volume for Syarikat Takaful is only 192,000 shares year-to- date. We believe that this is mainly due to the lack of coverage by analysts and hence, the poor awareness of the group’s bright earnings prospects,” CIMB said.

The research house said Syarikat Takaful may register an earnings per share growth of 25% in financial years ending Dec 31, 2012 and 2013, helped by the insurer’s family and general schemes beside its stable claims ratio.



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Flash: Bandar Raya to go ahead with disposal of units

KUALA LUMPUR (March 28): Bandar Raya Development Bhd will go ahead with the proposed disposal of BR Property Holdings Sdn Bhd, CapSquare Retail Centre and Permas Jusco Mall by a tender exercise

It said on Wednesday that at its board meeting on Tuesday that while Ambang Sehati Sdn Bhd, which was “still evaluating its plan to increase its stake in the company, which may or may not result in a general offer, has to-date been unable to confirm to the board its decision to proceed with this exercise”.

Bandar Raya said it was working with its legal and financial advisers namely Messrs Lee Hishammuddin Allen & Gledhill and CIMB Investment Bank Bhd to assist in implementing the proposed disposal.



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RHB Research maintains market perform on AirAsia, FV RM3.72

KUALA LUMPUR (March 28): RHB Research Institute is maintaining its market perform outlook on AirAsia with a fair value of RM3.72.

It said the low-cost carrier raised its fuel surcharge by 30%-50% to offset the constant high jet fuel prices which had been trading at an average of US$136 per barrel in March 2012.

AirAsia expects to recoup an additional US$5 a barrel of the fuel bill with the fuel surcharge hikes.

“The latest fuel surcharge hikes will boost FY12/12-14 by 8%-11%. However, we are keeping our forecasts.

“We are more inclined to see the US$5 barrel recovery in fuel bill with the latest fuel surcharge hikes as an additional US$5 barrel cushion against our jet fuel price assumption of US$125 barrel,” it said.

RHB Research said also if jet fuel prices retreat, there is a fair chance that AirAsia may reduce the fuel surcharge.



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HDBSVR sees profit-taking pressure on Bursa Malaysia

KUALA LUMPUR (March 28): Hwang DBS Vickers Research said on Wednesday the presence of profit-taking pressures on Bursa Malaysia is expected to push the FBM KLCI lower in the near term.

“On the chart, the benchmark index may be on its way to test the immediate support level of 1,580,” it said.

Overnight on Wall Street, the key US indices, which hovered near their four-year highs, saw mild corrections of between 0.1% and 0.3% at the closing bell.

HDBSVR said it expected the spillover effects to be felt around the region on Wednesday.

The research house said stocks that may pull back include Cahya Mata Sarawak following the termination of its agreement with Rio Tinto Aluminium to build an aluminium smelter plant in Sarawak.

Also in focus could be Supercomnet, after announcing that Mohd Nazifuddin would not be pursuing the option to acquire an 18.7% stake in the company.

However, TDM was expected to see upside after it proposed a tax-exempt dividend per share of 18.5 sen, translating to a net yield of 3.9%.



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CIMB Research has technical sell on MHC Plantations at RM1.73

KUALA LUMPUR (March 29): CIMB Equities Research has a technical sell on MHC PLANTATION []s at RM1.73, at which it is trading at a price-to-book value of 0.5 times.

It said on Wednesday the rally from its September 2011 low may have exhausted.

CIMB Research pointed out the bulls are beginning to retreat after prices hit a high of RM1.84. Another black candle on Wednesday should send prices towards its next supports at RM1.66 and RM1.54.

“Indicators are showing signs of exhaustion. MACD signal line is losing pace while RSI has also hooked downward.

“Use any rebound towards RM1.78-1.84 to unload on strength. Unless prices swing past the RM1.85 level, the odds now favour the bears,” it said.



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CIMB Research has technical buy on Padini at RM1.42

KUALA LUMPUR (March 29): CIMB Equities Research has a technical buy on Padini Holdings at RM1.42, at which it is trading at a price-to-book value of 3.0 times.

It said on Wednesday the recent consolidation found its support near the 30-day SMA. If the candles can continue to hold on above its recent swing low of RM1.37 over the next few days, the research house expected buying momentum to pick up again.

“Technical landscape is showing signs of improvement. MACD histogram bars are falling at a slower pace while RSI has hooked upward.

“Risk takers may consider taking some position now. However, be quick to cut loss if the RM1.39 low is violated. The next resistance levels are RM1.51, RM1.57 and RM1.60,” said CIMB Research.



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CIMB Research has technical buy on Malayan Flour Mills at RM4.65

KUALA LUMPUR (March 29): CIMB Equities Research has a technical buy on Malayan Flour Mills at RM4.65, at which it is trading at a price-to-book value of 1.9 times.

It said on Wednesday Malayan Floor Mills broke out of its consolidation triangle pattern on Tuesday.

“We think that there is a good chance that the stock may swing past its previous high of RM4.68 soon. Once this level is taken out, the following resistance levels are RM4.92 and RM5.10,” it said.

CIMB Research said the indicators also supported its positive stance. MACD is poised for a positive crossover while RSI has also hooked upward.

“Aggressive traders may take position now. However, always place a stop at below RM4.44-RM4.30 to limit downside risk,” it said.



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Stocks to watch: Plantations, Supercomnet, TDM, Poh Kong

KUALA LUMPUR (March 27) : PLANTATION [] stocks could be a highlight for Malaysian stocks on Wednesday as investors weigh the effects of pre-election sentiment in the country against world economic growth concerns.

Malaysian crude palm oil (CPO) futures rose to a fresh high of RM3,485 a tonne on Tuesday in anticipation of declining oil palm output against higher demand for the commodity.

As plantation firms make up about a fifth of the FBM KLCI’s weightage, improving sentiments on CPO prices could give a lift to the stock market gauge.

However, analysts said “shrinking volume and cautious sentiment” in the stock market ahead of the country’s general election may curb the FBM KLCI’s advance.

The FBM KLCI of 30 stocks rose 5.12 points to close at 1,588.1 on Tuesday.

Stocks to watch on Wednesday include plantation stocks, Supercomnet Technologies Bhd, TDM BHD [] and POH KONG HOLDINGS BHD []. Other counters which could see trading interest are UMW HOLDINGS BHD [], STAR PUBLICATIONS (M) BHD [] and CAHYA MATA SARAWAK BHD [] (CMSB).

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.

TDM Bhd has proposed a final dividend of 18.5 sen per share, tax exempt for the financial year ended Dec 31, 2011.

Poh Kong, a jeweller, said its 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.

RHB Research Institute has revised upwards its earnings forecast for UMW by between 0.8% and 1% for financial years ending Dec 31, 2012 to 2014, besides raising its target price for the stock from RM6.70 to RM7.30.

Star Publications’ shares will go ex-dividend on Wednesday. The company dad declared a second interim dividend of nine sen a share for financial year ended Dec 31, 2011.

CMSB and Rio Tinto plc have called off plans to jointly establish an aluminium smelter in Sarawak as electricity-supply details for the project could not be finalised.



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