Trinity Corporation still in the red, 4Q net loss RM62.98m

KUALA LUMPUR (March 30): Trinity Corporation Bhd posted net losses of RM62.98 million in the fourth quarter ended Jan 31, 2011, which narrowed from the RM85.60 million a year ago, mainly due to loss on disposal of four units, impairments and doubtful debts.

It said on Friday that its pre-tax loss was RM64.81 million compared with RM79.52 million. However, its revenue increased 240% to RM197.53 million from RM58.10 million due to higher progress billings generated from the development projects and billings on sale of land.

Loss per share was 1.55 sen compared with 2.49 sen. Its net asset per share was 14 sen.

Commenting on the 4Q results, Trinity Corp said the property development and investment division accounted for 96.4% of the pre-tax loss.

“The current year quarter loss is mainly attributable to loss on disposal of four wholly-owned subsidiary companies of RM23.17 million, provision for impairment of land held for property development of RM36.31 million, provision for impairment on inventory of RM6.45 million and provision for doubtful debts of RM11.30 million.

“This was mitigated by gains arising from waiver of debt by a creditor of RM30.94 million and reduced finance cost,” it said.

For the financial year ended Jan 31, 2012, it registered a smaller net loss of RM117.07 million compared with RM167.08 million in the previous financial year. Revenue increased by 245% to RM632.31 million from RM183.39 million.

The higher revenue was mainly due to the completion of the disposal of the 1,322.44 acres of land in Bukit Beruntung Two to Menteri Besar Selangor (Inc).

Explaining the losses, Trinity Corp said it was due to the provision for impairment on land held for property development of RM45.54 million, provision for impairment loss on inventory of RM6.45 million, loss on disposal of four units of RM23.17 million and provision of doubtful debts of RM28.60 million.

However, the provisions were mitigated by higher operating income, mainly due to the waiver of debt by a creditor of RM30.94 million and gains of RM21.82 million arising from the conversions of preference shares and early redemption/conversion of loan stocks and reduced finance cost.



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Esso Malaysia chairman resigns after Exxon disposal

KUALA LUMPUR (March 30): ESSO MALAYSIA BHD []’s chairman and executive director Hugh Walter Alexander Thompson resigned from his posts after ExxonMobil International Holdings Inc disposed of its entire stake in Esso Malaysia.

Filings with Bursa Malaysia showed that Thompson’s resignation takes effect from Saturday, March 31 as he was nominated to the board by ExxonMobil.

The changes followed the ExxonMobil's disposal of its 65% stake in Esso Malaysia to San Miguel Corporation’s unit Petron Oil & Gas International Sdn Bhd on Friday. Other board changes were the resignations of Fatimah Merican, Faridah Ali and Abu Bakar Siddik Che Embi as executive directors of Esso Malaysia.

Appointed as executive director to Esso Malaysia was Ramon S. Ang, who is the chairman and chief executive officer of Petron Corporation. Also appointed executive directors were Eric O. Recto, Aurora T. Calderon and Lubin B. Nepomuceno from the San Miguel group.

Stock market data showed that the block of shares, comprising of 175.5 million shares, was crossed at an average price of RM3.41. San Miguel is obliged to extend a mandatory take-over offer for the remaining 35% or 94.50 million shares.

In a separate statement, Esso Malaysia said the existing agreements between Esso Malaysia and stated affiliates of Exxon Mobil Corporation would terminate with effect from midnight of March 30.

“Esso Malaysia Bhd has necessary arrangements in place to effectively replace services/products that it obtained vide said agreements to ensure seamless continuity of operations post termination of said agreements with Exxon Mobil Corporation's affiliates,” it said.



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Sapuracrest 4Q profit up 5% year-on-year

KUALA LUMPUR (March 30) : SAPURACREST PETROLEUM BHD []’s net profit rose 5% in the fourth quarter from a year earlier as lower operating expenses and foreign exchange gains mitigated the impact lower revenue during the period.

In a statement to the bourse on Friday, Sapuracrest said its net profit climbed to RM76.52 million from RM 72.67 million a year earlier while revenue was down 6% to RM560.43 million from RM596.34 million.

The oil and gas support services provider said higher contribution from its drilling operations had supported its bottom line during the quarter.

Sapuracrest’s cumulative full-year net profit rose 34% to RM310.23 million from RM231.45 million a year earlier although revenue fell 19% to RM2.56 billion from RM3.18 billion.



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MBSB to disburse RM500m loans via 'MBSB my first home scheme'

PETALING JAYA (March 30): The MALAYSIA BUILDING SOCIETY BHD [] (MBSB) aims to disburse some RM500 million in loans through its newly launched "MBSB My First Home Scheme" campaign this year.

President-cum-Chief Executive Officer Datuk Ahmad Zaini Othman said if the reception towards the scheme, aimed at first-time home buyers was good, MBSB would have a RM1 billion stretched target.

He said the scheme was designed to allow eligible Malaysians under the age of 35 years' old to buy their first house with a ceiling price of RM500,000 and at a 100 per cent margin of financing, offering customers with an exemption of the normal 10 per cent downpayment.

"We hope this will provide relief to the targeted group who are mainly newcomers to the workforce and are challenged by the rising costs of living and of property in the country.

"This scheme is definitely in support of the government's call and Prime Minister Datuk Seri Najib Tun Razak's aspiration to promote home ownership among younger generation in Malaysia," he told reporters after launching the "My First Home Scheme" campaign.

On another matter, Ahmad Zaini said MBSB was on track to realise its goal to establish as a full-fledged development bank.

"For the past three years, we have been closing some important gaps. We need certain approvals from Bank Negara and shareholders' endorsement to move on.

"This may be realised this year or even next year. Even if you look at our products, we are offering financial products similar to banks.

"The gaps are very small now. We will continue to push our efforts to convince the shareholders, the central bank and the authorities," he added.

Set up in 1950, MBSB is an exempt finance company, with the Employees Provident Fund and Permodalan Nasional Bhd as its two major shareholders.

Ahmad Zaini also said MBSB was planning to open seven to eight branches nationwide this year. It has 36 branches currently. - Bernama



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BNM: Banking system well-capitalised, RWCR at 14.8%

KUALA LUMPUR (March 30): Malaysia’s banking system remained well-capitalised in February with the risk-weighted capital ratio (RWCR) and core capital ratio (CCR) at 14.8% and 13% respectively.

In its monetary and financial development report for February, Bank Negara Malaysia (BNM) said on Friday net impaired loans remained stable and represented 1.9% of net loans. Loan loss coverage remained high at 97.5%.

BNM said its international reserves were RM427 billion (US$134.8 billion) as at March 15, 2012, sufficient to finance 9.7 months of retained imports and were 4.1 times the short-term external debt of the country.

Broad money (M3), on an annual basis, expanded at a higher rate of 15.9% in February to RM1.275 trillion outstanding versus 14.7% or RM1.271 trillion outstanding in January.

“The increase during the month was due to higher credit extended by banks to the private sector and foreign capital inflows,” it said.

The central bank noted that net financing to the private sector grew at a sustained pace.

Net financing in February rose to RM1.354 trillion from RM1.344 trillion in January and RM1.324 trillion in December, 2011. The net financing comprised of banking system loans outstanding and private debt securities outstanding but excluded non-resident and Cagamas.

Outstanding banking system loans to businesses increased at a steady pace mainly supported by lending to the CONSTRUCTION [], manufacturing and real estate sectors.

While loans extended to households grew at a more moderate pace during the month, it continued to remain high, driven mainly by loans for the purchase of residential and non-residential PROPERTIES [] and credit for personal use. Loan demand during the month remained high.

BNM data showed that loans applied in February totalled RM57.6 billion, compared with RM56.8 billion in January and RM63.5 billion in December 2011.

Loans approved in February totalled RM25 billion (January: RM26.7 billion; December 2011: RM34.7 billion). Loans disbursed totalled RM68 billion in February (January: RM69.7 billion; December 2011: RM83.7 billion). Loans repaid declined in February to RM65.8 billion (January: RM74.2 billion; December RM70.2 billion).



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Petronas extends contract with UMW

KUALA LUMPUR (March 30) : Petroliam Nasional Bhd (Petronas) has extended its oil and gas support services contract with UMW HOLDINGS BHD [] by another two years in a deal valued at about US$105 million (RM321.8 million)

In a statement to the exchange on Friday, UMW said it will continue to offer its jack-up drilling rig known as “Naga 3” to Petronas Carigali Sdn Bhd which is the exploration arm of the national oil company from March 22 this year till March 21, 2014.

“The contract extension is expected to contribute positively to the earnings and net assets of UMW for the financial years from 2012 to 2014,” UMW said.



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Yokohama ropes in GP Batteries as JV partner

KUALA LUMPUR (March 30) : Battery manufacturer Yokohama Industries Bhd has roped in Singapore-listed GP Batteries International Ltd as a joint venture (JV) partner to manufacture and trade thin metal film (TMF) lead acid batteries.

In a statement to Bursa Malaysia on Friday, Yokohama said both companies will establish a JV firm where Yokohama and GP will own 70% and 30% respectively. The collaboration was formalised via a JV agreement between Yokohama Industries 100%-owned unit Yokohama Ventures Sdn Bhd and GP’s 80%-owned subsidiary Bolder Technologies Pte Ltd.

“The JV will allow Yokohama to gain access to Bolder’s TMF TECHNOLOGY []. Currently, the 1AH TMF battery produces a cold cranking amperes output equivalent to that of a lead acid starter battery.

“By combining TMF and Yoko’s current battery know-how, there are possibilities in developing high-powered batteries both for cranking and start-stop applications. Nearly all start-stop applications employ supercapacitors paired with an absorbed glass mat battery,” Yokohama Industries said.



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KLCI ends 1Q on a high

KUALA LUMPUR (March 30): The FBM KLCI ended the first quarter of 2012 on a high note, in line with the global markets that mostly picked up gains at the end of the quarter.

The 30-stock index rose 10.89 points to closet at 1,596.33 on Friday, lifted by blue chips including banking and Petronas-linked stocks.

The closing was just a tad below its all-time high of 1,597.08 that the index rose to on July 11 last year.

Year-to-date, the index racked up 65.6 points from its December 30 close of 1,530.73. Gainers edged losers by 402 to 360, while 334 counters traded unchanged. Volume was 1.25 billion shares valued at RM2.08 billion.

World stocks rose with Europe up more than half a percent on Friday, picking up gains at the end of the quarter and with investors eyeing a boost to the euro zone's bailout resources that ministers are expected to sign off on later in the day, according to Reuters.

Despite the strong quarter, sentiment across asset classes has turned bearish since mid-March due to fears of a slowdown in growth centred on China, and the conviction that a huge injection of central bank money may only be a panacea for Europe's debt troubles, it said.

At the regional markets, the Shanghai Composite Index rose 0.47% to 2,272.79, Taiwan’s Taiex added 0.77% to 7,933.00 and Singapore’s straits Times Index gained

Meanwhile, Japan’s Nikkei 225 closed 0.31% lower at 10,083.56, Hong Kong’s Hang Seng Index fell 0.26% to 20,555.58 while South Korea’s Kospi shed 0.02% to 2,014.04.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said that despite pockets of weakness from China market (Shanghai Composite at 10-week low) and soft economic data from the US and Europe, he expects the FBM KLCI to continue market uptrend supported by local liquidity and strong first quarter performance.

“The local market has ample liquidity at the sidelines, accommodative Bank Negara, low interest rates and government commitment for economic project. Plain and simple.

“We also believe the local market will take further cues from a strong USA market,” he said.

He added that there was a fairly reasonable speculative element in the small cap stocks to create some excitement near term (Carotec, Mtronics, Keywest, Focus, Tiger to name a few).

“Though we agree that the local market is overbought and investors may pause after recent sharp gains, we are yet to see any evidence of distribution to suggest serious market wind down in the near term,” he said.

On Bursa Malaysia, KLK was the top gainer and added 46 sen to RM24.60, F&N up 28 sen to RM18.88, Takaful 27 sen to RM3.39, United PLANTATION []s 18 sen to RM24.98, Kossan, Bursa and DiGi added 12 sen each to RM3.35, RM7.38 and RM4.06 respectively.

Among banking stocks, Hong Leong bank gained 24 sen to RM12.62, AMMB 10 sen to RM6.31, CIMB nine sen to RM7.69 and Maybank seven sen to RM8.87.

Among Pertronas-linked stocks, Petronas Dagangan rose 26 sen to RM18.94, Petronas Gas 10 sen to RM16.84 and Petronas Chemicals six sen to RM6.74.

Carotech was the most actively traded counter with 99.63 million shares done.

Other actives included CIMB, Focus, Ariantec, Metronic, YTL, Naim Indah Corp and Key West.

Decliners included Genting, Dutch Lady, sunchirin, Multico, Kulang, Shangri-La, Kulim, Fiamma, Advanced Packaging and TDM.



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Malaysian auto body maintains 2012 sales at 615,000 units

KUALA LUMPUR (March 30): The Malaysian Automotive Association (MAA) is maintaining its earlier forecast of 615,000 sales volume this year, despite Bank Negara Malaysia's move to tighten the conditions for lending.

Its president Datuk Aishah Ahmad said it was too early to revise the forecast, taking into consideration the required time for car dealers to adapt to the new rules.

She also said that following the ruling, some local banks were found to have "tightened the rules a little too much" and Bank Negara could have talked to these banks.

"I think Bank Negara had met up with the banks and told them to be less stringent. Maybe, when the central bank requested them to look at (borrowers') net income, they had become more stringent (than what was required).

"But I think now it has eased a bit and that is helping the industry players," she told reporters after MAA's annual general meeting here, on Friday.

However, she said, the first quarter performance is expected to be flat or slightly lower with car dealers just beginning to adapt to the new lending rules.

Sales volume for March is expected to improve and cover the lower sales recorded in January and February, with the market adjusting to the stricter requirements in the higher purchase loan application process. - Bernama



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Public Mutual declares distributions for 2 funds

KUALA LUMPUR (March 30): Public Mutual Bhd has declared distributions for its Public Aggressive Growth Fund and Public Regular Savings Fund.

It said on Friday the gross distribution for both funds for the financial year ending March 31, 2012 were 4.50 sen per unit.

Public Aggressive Growth Fund and Public Regular Savings Fund are funds that are open for EPF Members Investment Scheme.

Public Aggressive Growth Fund aims to achieve high capital growth over the medium- to long-term period through investments in situational and high growth stocks.

Public Regular Savings Fund aims to achieve consistent capital growth with a steady growth of income over the medium- to long-term.



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Complete Logistics sees 29.1% stake crossed off-market

KUALA LUMPUR (March 30): COMPLETE LOGISTIC SERVICES BHD []’s 29.1% stake was traded in an off-market deal on Friday at an average price of 35 sen.

Stocks market data showed the stake comprises of 35 million shares, based on the paid-up of 120 million shares.

At 35 sen, this was six sen below its Thursday’s closing price of 41 sen.

The shares were untraded as at 4pm at 41 sen.



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ExxonMobil’s sale of 175.5m Esso Malaysia shares completed

KUALA LUMPUR (March 30): ExxonMobil International Holdings Inc’s disposal of a 65% stake in ESSO MALAYSIA BHD [] to San Miguel Corporation was completed on Friday.

Stock market data showed that the block of shares, comprising of 175.5 million shares, was crossed at an average price of RM3.41.

This was 14.9 sen below Thursday’s closing price of RM3.56.

According to latest corporate development, the sales and purchase agreement become unconditional on March 16 upon completion of the acquisition.

San Miguel is obliged to extend a mandatory take-over offer for the remaining 35% or 94.50 million shares.



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Protasco signs service agreement with KL City Hall

KUALA LUMPUR (March 30) : CONSTRUCTION [] firm PROTASCO BHD [] will offer its expertise to the Kuala Lumpur City Hall under a five-year agreement from Mar 30, 2012 to Mar 29, 2017.

In a statement to the exchange, Protasco said the agreement will see the firm offering engineering and capacity building services to the client.

“The appointment is expected to contribute positively to the earnings and net assets of Protasco for the financial year ending Dec 31, 2012.

According to the builder, the appointment is non-exclusive and can be extended for another five years, subject to mutual agreement between the City Hall and Protasco.



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SEG up 8% on speculation of new shareholder

KUALA LUMPUR (March 30) : SEG INTERNATIONAL BHD [] shares rose as much as 8% on Friday morning on speculation that the higher education provider could see the emergence of a new major shareholder after a substantial number of shares changed hands off market.

The stock which added as much as 13 sen to RM1.85 had settled lower at RM1.83 for lunch break.

News reports indicate that a 31.22% stake comprising 174.6 million shares were transacted in six tranches for a total value of RM268.67 million on Thursday.



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KLCI stays above 1,590-level at mid-day break

KUALA LUMPUR (March 30): the FBM KLCI stayed above the 1,590-point level at the mid-day break on Friday, lifted by blue chips including Maybank, CIMB, Petronas gas and KLK.

Meanwhile, Asian shares steadied on Friday as the region's benchmark indices marked their best first quarter in over 20 years and investors awaited a meeting on a possible euro zone firewall and Chinese data that may dictate market trends in coming months.

The FBM KLCI rose 6.44 points to 1,591.88 at the mid-day break.

Gainers trailed losers by 268 to 317, while 354 counters traded unchanged. Volume was 563.26 million shares valued at RM612.26 million.

The ringgit was unchanged at 3.0683 versus the US dollar; crude palm oil futures for the third month delivery fell RM26 per tonne to RM3,430, crudd oil added 62 cents per barrel top US$103.40 while godl shed 45 cents an ounce to US$1660.13.

On Bursa Malaysia, KLK added 42 sen to RM24.56, Takaful up 25 sen to RM3.37, Carlsberg 18 sen to RM10.38, Batu Kawan 14 sen to RM18.74, SEGi 11 sen to RM1.83, Petronas Gss 10 sen to RM16.84, Maybank nine sen to RM8.89, CIMB seven sen to RM7.67 and Ibraco eight sen to RM1.29.

Carotech was the most actively traded counter with 812.94 million shares done. The stiock fell 2.5 sen to 2.5 sen.

Other actives included Metronic, Focus, Key West, Tiger Synergy, SuperComnet, Ariantec, IFCA MSC and CIMB.

Decliners included Dutch Lady, genting, PPB, Shangri-La, TDM, Delloyd, Rapid, HELP, Kluang and Teo Seng.



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KLCI breaches 1,590-level at mid-morning

KUALA LUMPUR (March30): the FBM KLCI trended higher at mid-morning on the final trading day of the first quarter of 2012, while regional markets drifted marginally lower on fears of global growth slowdown.

At 10am, the FBM KLCI was up 4.89 points to 1,590.33, lifted by select blue chips including KLK and Maybank.

Gainers led losers by 186 to 189, while 235 counters traded unchanged. Volume was 252.32 million shares valued at RM154.22 million.

Meanwhile, Asian shares steadied on Friday as investors eyed key events that could dictate market trends in coming months and as the first quarter drew to a close after a stellar performance from equities, according to Reuters.

Still, investor sentiment across asset classes is being undermined by fears of a potential growth slowdown, with European troubles back in focus and concerns about China, the world's second largest economy, it said.

At the regional markets, Japan;s Nikkei 225 shed 0.26% to 10,088.00, Hong Kong’s Hang Seng Index down 0.59% to 20,488.40, the Shanghai Composite Index dipped 0.40% to 2,261.15, Taiwan’s taiex fell 0.24% to 7,853.39, south Korea’s Kospi edged down 0.05% to 2,013.40, and Singapore’s Straits Times index fell 0.50% to 3,009.11.

BIMB Securities Research in a note March 30 said that from it was observing at the moment actual figures have to at least beat forecasts for investors to stay upbeat.

It said this was exactly the scenario Wall Street was facing as investors remain unimpressed despite the lower unemployment claims (but higher than forecast) and a 3% GDP growth for 4Q11.

“For this, the Dow Jones Industrial Average had a mixed session before edging marginally by 20 points to 13,146,” it said.

The research house said European bourses were sold down after S&P cautioned that Greece may have to undergo more restructuring.

“Asian stocks were also broadly lower from weaker European markets but the FBM KLCI was one of the handfuls ended the day on positive territory.

“The index was up 1.7 points to jump just above the immediate resistance of 1,585. We expect market to be lacklustre today amid some downside risks and lack of fresh leads with 1,580 as the immediate support level,” it said.

Among the gainers on Bursa Malaysia at mid-morning, KLK rose 38 sen to RM24.52, BAT 28 sen to RM56.80, Sapuracrest, Maybank, Carlsberg and United PLANTATION []s added eight sen each to RM4.88, RM8.88, RM10.28 and RM24.88 respectively, IOI Corp seven sen to RM5.34, while Cypark and Maxis adde six sen each to RM1.92 and RM6.06.

Carotech was the most actively traded counter with 46 million shares traded. The stock fell three sen to 2 sen.

Other actives included Key West, Winsun, SuperComnet, KBB, Trinity, IFCA MSC, Ariantec and TMS.

Decliners at mid-morning included GAB, Genting, Petronas Dagangan, PPB, Hong Leong Bank, HELP, Kluang, UMW, Harrisons and Tradewinds Plantations.



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Carotech shares down 60% ahead of trading suspension

KUALA LUMPUR (March 30) : CAROTECH BHD [] shares fell 60% on Friday morning following updates that trading of the stock will be suspended beginning next Friday. The firm, which extracts and sells palm oil-based phytonutrients, failed to submit its regularisation plan to Bursa Malaysia within the stipulated time frame.

Shares of Carotech fell three sen to two sen with some 32 million units done, making the stock the most active across the local bourse.

The stock market regulator had earlier rejected Carotech’s application for a time extension to submit its regularisation plan. Carotech said it will appeal against the decision.



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Cypark advances on upbeat outlook for solid waste management, renewable energy biz

KUALA LUMPUR (March 30): CypARK RESOURCES BHD [] shares advanced on Friday despite the company posting a marginally lower net profit of RM6.51 million in the first quarter ended Jan 31, 2012, down 0.6% than RM6.55 million a year ago.

At 9.46am, Cypark rose six sen to RM1.92 with 244,700 shares traded.

However, investors appeared to favour the sock as the company remained upbeat for its core business of solid waste management and renewable energy.



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KLCI edges higher in early trade

KUALA LIMPUR (March 30): The FBM KLCI trended higher in early trade on Friday, lifted by select blue chips including Petronas-linked stocks and index-linked PLANTATION [] counters.

At 9.05am, The FBM KLCI was up 4.17 points to 1,589.61.

Gainers led losers by 96 to 49, while 115 counters traded unchanged. Volume was 67.54 million share valued at RM23.14 million.

Among the gainers, BAT rose 28 sen to RM56.80, SapuraCrest 11 sen to RM4.91, Tradewinds nine sen to RM9.72, IOI Corp and PPB eight sen each to RM5.35 and RM16.88, Petronas gas six sen to RM16.80, while Petronas Chemicals, MMCCOrp, Maxis and Keck Seng added five sen each to RM6.73, RM2.85, RM6.05 and RM4.10 respectively.

Decliners included Dutch Lady, Utusan Malaysia, Genting, MMHE, Ewei, AFG, Astino, petronas Dagangan and Carotech.

Carotech was the most actively traded counter with 10.43 million shares done. The stosk fell two sen to 3 sen.

Other actives included Trinity, TMS, Ariantec, IFCA MSC, Caley, Nextnation and Winsun.



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CIMB Research has technical buy on Genting Plantation at RM9.45

KUALA LUMPUR (March 30): CIMB Equities Research has a technical buy on Genting PLANTATION [] at RM9.45 at which it is trading at a FY13 price-to-earnings of 16.3 times and price-to-book value of 2.2 times.

It said on Friday Genting Plantation is forming a triangle currently with its moving averages acting as support.

“This means that there is one more leg upwards to new highs before the rally terminates,” it said.

CIMB Research said the MACD was just flat above the zero line while its RSI is holding above the 40pts mark. Both are at neutral level but above their respective support levels.

“Aggressive traders may choose to go long here with a stop placed below RM9.25. A breakout above RM9.65 would push prices to retest the RM9.80 high and even the RM10.00 psychological level,” the research house said.



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CIMB Research has technical sell on TH Plantations at RM2.85

KUALA LUMPUR (March 30): CIMB Equities Research has a technical sell on TH PLANTATION [] at RM2.85 at which it is trading at a price-to-book value of 0.5 times.

It said on Friday prices broke below its support trend line on Thursday on rising volume. Prices also closed below its 30-day SMA in the process.

“With both technical indicators showing weakness, the odds favour the bears at the moment. One can expect more downside in the near term,” it said.

CIMB Research said prices could ease towards RM2.70 and RM2.42-2.48 next as long as prices stay below RM2.99.

“One can also place their stop above RM2.88, the support turned resistance trend line,” it said.



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CIMB Research has technical sell on MRCB at RM1.87

KUALA LUMPUR (March 30): CIMB Equities Research has a technical sell on MALAYSIAN RESOURCES CORP []oration Bhd (MRCB) at RM1.87 at which it is trading at a FY13 price-to-earnings of 23.4 times and price-to-book value of 1.9 times.

It said on Friday the stock’s rally from the September low ended when prices broke below the bearish wedge pattern in February. A couple of days ago, prices fell below its sideways trend, signalling another leg down was underway.

“Its MACD has reconfirmed its dead crossover and RSI is now on a downtrend once more.

“Any rebounds should be capped by the sideways band at RM1.94-RM2.03. Expect prices to fall further towards RM1.77 and RM1.64 next. Stop is above RM2.03,” it said.



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HDBSVR: KLCI may struggle to tread above 1,580

KUALA LUMPUR (March 30): HwangDBS Vickers Research (HDBSVR) said despite an absence of positive developments, key US equity indices staged a late rebound on Thursday night.

On Wall Street, the key US indices managed to recover from intra-day losses of 0.7%-1.1% before finishing mixed (with changes of between -0.3% and +0.1%) at the closing bell.

“And following yesterday’s resilient performance, which saw the FBM KLCI ending in the positive territory when most regional peers were in the red, our Malaysian bourse will likely experience listless trading today,” it said.

HDBSVR said on the chart, the benchmark index may struggle to tread just above the immediate support line of 1,580 ahead.

Among the counters that could see added action include: (a) Maybank, after its president said the banking group’s net interest margin is expected to contract by 10 basis points this year due to competitive pressures; (b) Crest Builder, which has won a bid to undertake a joint development of a parcel of prime commercial land located at Dang Wangi LRT station with an estimated gross development value of RM220m; and (c) Cypark, following the signing of an MOU on cooperation in the field of waste management and renewable energy in Myanmar.



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CIMB Research upgrades tech sector to Trading Buy

KUALA LUMPUR (March 30): CIMB Equities Research is upgrading the tech sector from Underperform to Trading Buy as sentiment is turning positive, helped by a better book-to-bill ratio.

In its outlook report issued on Friday, it said the sector was not an outright Overweight as 1Q12 may be a weak quarter, similar to 4Q11.

“In light of our recent semicon sector upgrade, we now have three Trading Buys(JCY, MPI, and Unisem) and two Neutral calls (Jobstreet and Uchi). We raise our target prices for JCY, MPI and Unisem but lower our target price for Jobstreet and Uchi. Our top picks are Unisem and JCY,” said CIMB Research.



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Stocks to watch: UM Land, VS Industry, BCorp, SelProp

KUALA LUMPUR (March 30): Malaysian stocks may find support on Friday from quarter-end window dressing by fund managers on the final trading day of the first quarter. This could spur the FBM KLCI’s advance against the backdrop global economic growth concerns and anticipation of Malaysia’s next general election.

Analysts believe technical dynamics could still push the FBM KLCI to its historical high of 1,597 points, but the crucial question is whether the index can sustain its gains.

“Strategy wise, investors should capitalise on further rallies to take profits and stay nimble, in the wake of volatile external markets as well as ahead of the looming 13th general election,” Hong Leong Investment Bank Bhd research head Low Yee Huap wrote in a note.

The 30-stock FBM KLCI rose 1.69 points to close at 1,585.44 points on Thursday following a volatile trading session.

Stocks to watch on Friday include UNITED MALAYAN LAND BHD [] (UMLand), V.S. Industry Bhd, Berjaya Corp Bhd (BCorp), Selangor PROPERTIES [] Bhd, and CREST BUILDER HOLDINGS BHD []. Other stocks to watch are CypARK RESOURCES BHD [] and HAI-O ENTERPRISE BHD []

UMLand and Iskandar Investment Bhd have signed a collaboration agreement to conduct negotiations which will facilitate UMLand’s plan to acquire and develop tracts in Iskandar Malaysia, Johor .

V.S. Industry, a contract manufacturer of electronic products, said net profit fell 34% to RM6.64 million in the second quarter ended Jan 31, 2012 from RM10.1 million a year earlier, dragged down by lower income from its associates. Revenue, however, rose 4% to RM265.77 million from RM255.51 million.

BCorp’s net profit fell 53% to RM15.28 million in the third quarter ended Jan 31, 2012 from RM32.47 million a year earlier. Bottom line was hurt by operating expenses for its retail business and lower property sales, besides the absence of income from discontinued operations.

Selangor Properties’ net profit fell 89% to RM552,000 in the first quarter ended Jan 31, 2012 from RM5.06 million a year earlier due to currency translation losses.

Crest Builder and joint venture partner Detik Utuh Sdn Bhd will undertake a RM220 million mixed development in collaboration with landowner Syarikat Prasarana Negara Bhd.

Cypark posted net profit of RM6.51 million in the first quarter ended Jan 31, 2012, a marginal 0.6% lower than RM6.55 million a year ago but it remained upbeat for its core business of solid waste management and renewable energy.

Hai-O’s net profit rose 42.8% to RM9.06 million in the third quarter ended Jan 31, 2012 from RM6.34 million a year ago, boosted by its principal subsidiary, the multilevel marketing division. Its revenue increased 8.9% to RM62.79 million from RM57.62 million.

For the nine-month period, its net profit increased 21.6% to RM24.66 million from RM20.28 million in the previous corresponding period. Its revenue rose 2% to RM169.96 million from RM164.99 million.



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