S P Setia-Rimbunan Hijau team to develop industrial properties in China

KUALA LUMPUR (Apr 2): S P Setia Bhd has roped in Rimbunan Hijau Group as a joint venture (JV) partner to develop and operate an industrial park in China’s Guangxi province.

In a statement to the Bursa Malaysia on Monday, S P Setia said both companies have formed JV entity Qinzhou Development (M) Consortium Sdn Bhd. The JV entity has, in turn, signed a JV framework agreement with Qinzhou Jingu Investment Co Ltd to develop the China-Malaysia Qinzhou Industrial Park on an approximately 13,590.5 acres (5,436 ha) site.

The site is located next to the Guangxi Qinzhou Bonded Area and the Qinzhou Port Economic and Technological Development Zone in the Guangxi Zhuang autonomous region, according to S P Setia.

According to S P Setia, the venture is in line with its overseas expansion, which already includes projects in Australia, Vietnam and Singapore.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Muhibbah Australian JV gets additional RM192m contract

KUALA LUMPUR (April 2): MUHIBBAH ENGINEERING (M) BHD [] has announced that its 50:50 joint venture with Australia’s Monadelphous Group Ltd has won an additional contract for the CONSTRUCTION [] and commissioning of a shiploader associated with the Wiggins Island Coal Export Terminal Pty Ltd’s (“WICET”) worth A$60 million (equivalent to approximately RM192 million).

Muhibbah had on Dec 23 last year said the JV won a A$330 million (RM1.06 billion) contract for the construction of an approach jetty and ship berth in Queensland, Australia.

The facilities will be constructed for a project by WICET, which is privately owned and funded by a group of Queensland coal exporters.

Muhibbah said on Monday the contract was scheduled to start immediately and be completed by first quarter of calendar year 2014.

The Contract is expected to contribute positively to its earnings for the current and future financial year, it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

FBM KLCI closes at all-time high of 1,603.78 points

KUALA LUMPUR (Apr 2): The FBM KLCI erased earlier losses to finish 0.5% or 7.45 points higher at an all-time high of 1,603.78 points on Monday, as sentiments improve ahead of the country's impending general election.

Analysts said technical trading patterns have improved, as investors anticipate the announcement of government projects and other positive updates from policymakers ahead of the election; hence, the anticipation that the gauge could trade higher over the medium and long term.

According to RHB Research Institute Sdn Bhd, the FBM KLCI has the potential to reach fresh highs of between 1,663 and 1,704 points, as buying momentum improves.

"Technically, the gap-up in the index last week and the recent change in the short-term outlook to positive (from negative previously) suggest that the index is resuming its uptrend after a three-week consolidation," RHB wrote in a note on Monday.

The equities barometer had earlier fallen as much as 6.06 points, to an intraday low of 1,590.27 at 9.51am.

Across the local exchange, 1.44 billion shares worth RM1.4 billion changed hands, resulting in 400 gainers and 353 declining stocks, while 324 entities were unchanged.

Top gainer DUTCH LADY MILK INDUSTRIES BHD [] rose RM1.24 sen to close at RM35.50, followed by SMPC Corp Bhd, which was up 35 sen to RM2.20.

Decliners included BRITISH AMERICAN TOBACCO (M) [] Bhd, which fell 56 sen to RM56.06, while MALPAC HOLDINGS BHD [] was down 15 sen to RM1.50.

Most active was INGENUITY SOLUTIONS BHD [], which traded unchanged at 10.5 sen with some 233 million shares done.

Across Asian indices on Monday, Japan's Nikkei 225 rose 0.26% to 10,109.8 points, South Korea's Kospi climbed 0.76% to 2,029.29 while Australia's S&P/ASX 200 was down 0.14% to 4,329.27.

Asian markets had found support from better manufacturing updates in China over the weekend. The world's second largest economy's Purchasing Managers' Index, a barometer of the country's manufacturing activity, had risen to 53.1 in March this year, the highest in about a year, according to the National Bureau of Statistics.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

CIMB acquires majority of RBS AsiaPac equities, investments for RM849.4m

KUALA LUMPUR (Apr 2): CIMB Investment Bank (CIMB) is acquiring most of the Asia Pacific cash equities and associate investment banking of the Royal Bank of Scotland (RBS) for the sum of RM849.4 million, group CEO Datuk Seri Nazir Razak said on Monday.

The assets are valued at the effective price-to-book ratio is about 0.98 times.

Nazir said that the deal transforms CIMB into an Asian Pacific investment bank, and that the exercise will also see the merged businesses absorbing 350-400 RBS staff to join CIMB.

"Of the 94 senior staff from RBS offered, we have received 87% acceptance," said Nazir.

He said that there will also be management changes at CIMB investment Bank with the exercise.

Nazir also added that CIMB will also be applying a new stockbroking license for a new establishment in Korea, as RBS will not be selling its operations there.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Navis a major shareholder in SEG International

KUALA LUMPUR (April 2) : Navis Capital Partners Ltd has emerged as a major shareholder in SEG INTERNATIONAL BHD [] after acquiring 21.53% in the higher education provider from Cerahsar Sdn Bhd.

Updates to Bursa Malaysia on Monday show that Navis had acquired the stake comprising 114.8 million shares via Pinnacle Heritage Solutions Sdn Bhd last Thursday from Cerahsar, which ceased to be a major shareholder in SEG following the transaction.

The transaction price was, however, not disclosed. At SEG shares’ closing price of RM1.72 on that day, the deal could be worth RM197.46 million.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

FBM KLCI trades at all-time intraday high 1,599 points

KUALA LUMPUR (April 2) : The FBM KLCI traded at an all-time intraday high of 1,599.25 points in volatile trade at Monday noon as the index sank into the red before erasing losses to settle in positive territory at lunch break. Analysts said the outlook for the FBM KLCI is still deemed uncertain in April after taking into account technical and fundamental dynamics.

OSK Research Sdn Bhd said in technical terms, the index could see more upside as the gauge has been a laggard versus regional peers, apart from the fact that the FBM KLCI has breached a crucial resistance level.

“On the other hand, as news on Europe is again turning less positive, more profit taking could emerge in April,” OSK wrote in a note on Monday.

At 12.30pm, the FBM KLCI was up 1.88 points to settle lower at1,598.21. Some 735 million shares worth RM543.63 million changed hands, resulting in 263 gainers and 347 declining stocks while 238 entities were unchanged.

The equities barometer had earlier fallen as much as 6.06 points to 1,590.27 at 9.51am.

Top gainers DUTCH LADY MILK INDUSTRIES BHD [] rose 90 sen to RM35.16 followed by SMPC Corp Bhd which was up 43 sen to RM2.28.

Decliners include BRITISH AMERICAN TOBACCO (M) [] Bhd which fell RM1.24 to RM55.38 while PPB GROUP BHD [] was down 26 sen to RM16.64

Most active was INGENUITY SOLUTIONS BHD [] which added one sen to 11.5 sen with some 151 million shares done.

Asian markets found support from better manufacturing updates in China over the weekend. The world’s second largest economy’s purchasing managers' index, a barometer of the country’s manufacturing activity, had risen to 53.1 in March this year, the highest in about a year, according to the National Bureau of Statistics.

Across Asian indices on Monday, Japan’s Nikkei 225 rose 0.6% to 10,144.3 points, Australia’s S&P / ASX 200 climbed 0.3% to 4,348.4, although Hong Kong’s Hang Seng was down 0.4% 20,472.4.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

DBS to acquire major stake in Alliance Financial

KUALA LUMPUR (April 2 ) : Singapore-based DBS Bank Ltd plans to acquire state investment arm Temasek’s 14.2% stake in Malaysia’s ALLIANCE FINANCIAL GROUP BHD [] (AFG).

In a statement to Bursa Malaysia on Monday, AFG said it has received notice from Temasek’s unit Duxton Investments Pte Ltd that DBS has obtained approval from Bank Negara Malaysia to start negotiations on the planned acquisition.

According to AFG, DBS intends to acquire Duxton’s 49% stake in Vertical Theme Sdn Bhd which, in turn, owns 29.06% in AFG. Langkah Bahagia Sdn. Bhd owns the balance 51% in Vertical Theme.

“Accordingly, Temasek’s effective interest in AFG stands at 14.2%. The proposed transaction if successfully negotiated and completed, is not envisaged to trigger a takeover offer for AFG,” the Malaysian financial services entity said.

AFG shares rose 13 sen to RM4.02 at 11.05am. At that price, Temasek’s 14.2% stake comprising some 220 million shares is worth some RM884 million.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

FBM KLCI up on China economic data

KUALA LUMPUR (April 2 ) : Malaysian stocks opened in the red on Monday morning before rebounding to positive territory in tandem with gains across Asian markets. Regional stocks had found support from better manufacturing updates in China over the weekend.

Analysts said Malaysia’s FBM KLCI is showing positive technical dynamics, hence, potential upside for the 30-stock index this week. But they also warned of profit-taking activities which could stifle gains in the equities gauge.

“However, given the weak follow through buying momentum on the broader market, selling on strength may increase to limit upside potential, with the two-tier market to persist as lower liners stay in profit-taking congestion while blue chips could likely dip on profit-taking post first-quarter window-dressing,” TA Securities Holdings Bhd wrote in a note.

At 9.28am, the FBM KLCI was up 0.99 point to 1,597.32. Some 195 million shares worth RM78 million changed hands, resulting in 150 gainers and 104 declining stocks while 153 entities were unchanged.

Top gainers DUTCH LADY MILK INDUSTRIES BHD [] rose 14 sen to RM34.40 followed by ALLIANCE FINANCIAL GROUP BHD [] which was up 13 sen to RM4.02.

Decliners include COCOALAND HOLDINGS BHD [] which fell 25 sen to RM2.05 while BRIGHT PACKAGING INDUSTRY BHD [] was down 14.5 sen to 61 sen.

Most active was INGENUITY SOLUTIONS BHD [] which added 2.5 sen to 13 sen with some 35 million shares done.

Across Asia, Japan’s Nikkei 225 rose 0.85% to 10,169.2 points, Australia’s S&P / ASX 200 climbed 0.71% to 4,366.1, while South Korea’s Kospi was up 0.35% to 2,020.99.

China’s Purchasing Managers' Index, a barometer of the country’s manufacturing activity, had risen to 53.1 in March this year, the highest in about a year, according to the National Bureau of Statistics.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

CIMB Research maintains Neutral on banking sector

KUALA LUMPUR (April 2): CIMB Research has maintain its Neutral recommendation on the banking sector and said the slowdown in loan growth from 13.6% year-on-year in Dec 11 to 11.9% in Feb 12 was par for the course given the less favourable economic climate.

The research house said it continues to project loan growth of 9-10% for 2012.

“The gross impaired loan ratio has stayed at 2.7% since Nov 11, supporting our view of stable asset quality,” it said on Monday.

“We also foresee less of a margin squeeze this year due to more disciplined pricing. We remain Neutral on the sector and continue to like Maybank for its attractive yield,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

MIDF Research ups KLCI end 2012 target to 1,600

KUALA LUMPUR (April 2): MIDF Research has raised its end-2012 target for the FBM KLCI to 1,600 points from the earlier 1,530 points.

The tendency to ‘buy on weakness’ among the local institutions will help our equity market to outperform its regional peers during a cyclical downturn, the research house said in a note Monday.

Hence even if the FBM KLCI is expected to close the year at below is target year-high of 1,670 points, MID Research said it anticipates buying support to emerge at the 1,600 points psychological level.

“There is therefore a real possibility that the FBM KLCI will close 2012 at 1,600 points, or mere 4.2% off its target year-high.

“Hence we revise upwards our FBM KLCI year-end 2012 target to 1,600 points from the earlier 1,530 points.

MIDF Research said that at 1,600 points, the FBM KLCI was pegged at 15 times, and that CY2012 earnings, was slightly more than 25th-percentile of its 5-year historical ‘peace’ period forward PER band of between 14.0-17.7 times.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Expect market pullback and consolidation in 2Q, says RHB Research

KUALA LUMPUR (April 2): RHB Research Institute Sdn Bhd said that notwithstanding improvements in the global economy, it continues to expect a market pullback and consolidation in the 2Q.

“In our view, apart from rising market caution ahead of the general election due to the uncertain election outcome, earnings will also have to play catch up for stocks with rich valuations before the market can scale new heights. On the external front, concerns on Mainland China’s economy and a potential risk of an oil-supply shock will also weigh down market sentiment,” it said in its 2Q 2012 Market Outlook & Strategy Report dated March 30.

Beyond the near-term pullback, the research house said it expects market sentiment to gradually improve as global economic uncertainties clear out.

“As central banks in advance countries have unveiled more quantitative easing programmes and pledged to maintain extremely loose monetary policy to support economic growth, global financial markets are still likely to be awash with liquidity. Consequently, we are maintaining our end-2012 FBM KLCI target at 1,650 based on 14.5 times 2013 EPS,” it said.

RHB Research said given its more upbeat view on the market for the 2H, we believe “buy on dips” was still the best strategy to outperform the market even though defensive stocks would provide greater stability for the portfolio, particularly in the 2Q. S

“Sector-wise, our key Overweights continue to be telecommunications, gaming, PLANTATION [], oil & gas and consumer,” it said.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.

Stocks to watch UMW, Protasco and Cypark

KUALA LUMPUR (March 31): Profit taking might chip off some gains from the FBM KLCI next week after the index came very near to surpass its all-time high on the final trading day of the first quarter of 2012 last Friday.

The local index advanced in line with the positive sentiment at global markets.

World stock markets advanced o n Friday, posting double-digit gains for the quarter, as economic reports showing U.S. consumer spending and sentiment still on the rise helped buoy stock prices and undercut the desire to hold bonds, according to Reuters.

MIDF Research head of equity Syed Muhammed Kifni said that as expected, buying support emerged late Friday on account of quarterly window dressing.

The benchmark FBM KLCI recorded a fresh 2012 year high of 1,596.33 points but nonetheless it failed to break, by a whisker, the all-time high of 1,597.08 points.

Syed Muhammed said he anticipates the market to trade lower early next week as some investors could be cashing in on Friday’s price rise.

However, he said that the underlying market sentiment should remain positive as the liquidity flow into the market is expected to stay healthy.

He said the positive money flow was expected to continue to be sustained by the relentless ‘risk-on’ mood among the foreign funds.

Syed Muhammed said Bursa data showed that they foreign funds) have been net buyers of the local equity market for the past 30 consecutive trading days until last Thursday, and the streak may well continue unbroken next week.

“Hence we are sanguine on the ability of the KLCI to retest its all-time high of 1,597.08 points towards the later part of next week.

“Technically, we pegged the immediate resistance and support levels for FBM KLCI next week at 1,600 points and 1,585 points respectively,” he said.

Among the stocks that could be in focus are UMW HOLDINGS BHD [], PROTASCO BHD [] and CypARK RESOURCES BHD [].

Petroliam Nasional Bhd has extended its oil and gas services contract with UMW by another two years in a deal valud at about US$105 million RM321.8 million).

UMW said on Friday that it would continue to offer its jack-up drilling rig known as “Naga 3” to Petronas Carigali Sd Bhd which is the exploration arm of the national oil company from March 222 this year till March 21, 2014.

Protasco will offer its expertise to the Kuala Lumpur City Hall under a five-year agreement from March 30, 2012 to Marc 29, 2017.

Protasco will be offering to engineering and capacity building services to the KL City Hall.

Cypark could continue to advance and extend it gains from Friday on its upbeat outlook for solid waste management and renewable energy business.



Get your T+10 interest FREE margin trading account NOW. Attractive brokerage for online trading. Contact Mr Ho at +603-5192 0808 or hoxian@sjsec.com.my for more details.