MKH unit gets contract worth total RM675m over five years

KUALA LUMPUR (Apr 3): A wholly-owned unit of MKH Bhd has been awarded a turnkey CONSTRUCTION [] contract (TCC) worth a total of RM675 million over five years by Puncak Alam Resources Bhd (PAR) to build residential and commercial PROPERTIES [] in Kuala Selangor.

The company said on Tuesday that its unit Pelangi Seri Alam Development Sdn Bhd (formerly known as Fresh Partners Malaysia Sdn Bhd) had been awarded the TCC for the project on the land measuring about 550 acres in the Jeram and Ijok in the district of Kuala Selangor.

The company said the contract value for the Project was approximately RM135 million per year over five years, and that PAR would award the turnkey construction packages to Pelangi Seri Aalam progressively based on the development phases.

MKH said the TCC was expected to contribute positively to its earnings of MKH Group for the financial years during the Tenor.



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Sarawak Oil Palms diversifies into shipping

KUALA LUMPUR (Apr 3) : SARAWAK OIL PALMS BHD [] (SOPB) is diversifying into the shipping business following a joint venture (JV) agreement with Shin Yang Shipping Corp Bhd.

In a statement to Bursa Malaysia on Tuesday, SOPB said the collaboration will allow the firm to participate in the edible oil shipment business, and at the same time, offer logistics support to the PLANTATION [] entity.

SOPB and Shin Yang have set up a JV firm where both firms will hold 45% and 55% respectively.

Both firms have common shareholders, hence, the collaboration is a related-party transaction.



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Petra Energy inks MoU with Baker Hughes

KUALA LUMPUR (Apr 3): PETRA ENERGY BHD [] has into a Memorandum of Understanding (MoU) with Baker Hughes (M) Sdn Bhd (BHM) to undertake oil and gas projects in Malaysia.

Petra Energy said the company and would co-operate to provide capability development services including deploying their respective expertise and knowledge for oil and gas projects for operators in Malaysia within the duration of the MoU.

"Arising from the provision of the aforesaid co-operation, if and when a contract or contracts are secured, BHM shall assume one or more roles to be mutually agreed by the Parties under a formal and final contract," it said on Tuesday.

Petra Energy said the MoU shall remain in effect for one year from the date of MoU.

According to information found at the website of BHM's parent company, Baker Hughes Incorporated was formed in 1987 with the merger of Baker International and Hughes Tool Company — both founded over 100 years ago when R C Baker and Howard Hughes Sr conceived ground-breaking inventions that revolutionised the fledgling petroleum era.

Baker Hughes Inc's website says the company has 57,000-plus employees in more than 80 countries. Baker Hughes describes itself as a top-tier oilfield service company.



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Y.S.P. proposes first and final dividend of 6 sen per share

KUALA LUMPUR (April 3): Y.S.P. Southeast Asia Holding Bhd has a single tier first and final dividend of six sen per share of RM1.00 each for the financial year ended Dec 31, 2011.

The company said on Tuesday that the entitlement date and date of payment of the dividend have yet to be determine, and would be announced at a later date.



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KLCI sustains momentum, closes at fresh all-time high

KUALA LUMPUR (APRIL 3): The FBM KLCI maintained its momentum and closed at a fresh all-time high above the psychologically-crucial 1,600-point level on Tuesday, in line with the generally positive sentiment at most global markets.

Asian shares on Tuesday sustained momentum from an overnight rally in global equities, with solid manufacturing data from the United States offsetting signs of mild recession in Europe, according to Reuters.

However, European shares and Brent crude oil prices dipped in early trade on Tuesday following recent sharp gains, as investors sought further signs of improvement in the global economy before chasing risky assets higher, it said.

The FBM KLCI closed 2.85 points to 1,606.63, lifted by gains at select blue chips including CIMB, Axiata, and BAT.

Gainers, however, trailed losers by 354 to 379, while 344 counters traded unchanged. Volume was 1.25 billion shares valued at RM1.36 billion.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.31% to 20,790.98, the Shanghai Composite index added 0.47% to 2,262.79, South Korea’s Kospi gained 0.99% to 2,049.28, and Singapore’s Straits Times Index edged up 0.04% to 3,014.98 while Taiwan’s Taiex fell 1.3% to 7,760.85 and Japan’s Nikkei 225 lost 0.59% to 10,050.39.

On Bursa Malaysia, Dutch lady was the top gainer and rose 44 sen to RM35.94, Carlsberg added 34 sen to RM10.80, Jaya Tiasa 20 sen to RM8.72, HLFG 18 sen to RM12.50, BAT 16 sen to RM56.22, Sarawak PLANTATION []s 15 sen to RM3.24, MBM Resources 14 sen to RM4.77, APFT 12 sen to 79 sen, Voir 11.5 sen to 64.5 sen, Hightec 11 sen to 87 sen, Axiata nine sen to RM5.28 and CIMB two sen to RM7.81.

Metronic was the most actively traded counter with 134.23 million shares done. The stock fell 2.5 sen to 16 sen.

Other actives included Ingenuity Solutions, Ariantec, SuperComnet, Naim Indah Corp, Carotech, Utopia, Axiata and CIMB.

Meanwhile, decliners included Genting Plantations, SMPC, PPB, Warisan, Cepco, Can-One, Petronas Dagangan, Takaful and United Plantations.



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NAPIC : Malaysian property market posted double-digit growth in 2011

KUALA LUMPUR (April 3): The Malaysian property market continued to register double digit growth in terms of volume and value in 2011, led by the residential real estate segment.

According to the National Property Information Centre’s (NAPIC) latest Property Market Report which was launched on Tuesday, total real estate volume and value rose 14.3% and 28.3% respectively from the previous year.

This compares to the growth rates of 11.4% and 32.6% in 2010 respectively.

NAPIC said the performance of the residential subsector is expected to be sustained in 2012.



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MAS drops regional airline plan

PETALING JAYA (April 3):- Malaysia Airlines (MAS) has dropped its plan to establish a short-haul regional premium airline and will instead offer such services in-house as a division under the national carrier.

Without offering any reason, MAS Chief Operating Officer (Short Haul) Ignatius M.C. Ong said there was already a slight business module realignment for the regional airline initiative.

"Strategy and objective of the short-haul operations will remain unchanged but there will be no new airline.

"The operations will come under the banner of Malaysia Airlines," he told reporters here after launching Firefly's fifth anniversary.

Ong also said MAS's organisation structure remained unchanged and the top management would make an official announcement soon.

MAS Chief Executive Officer Ahmad Jauhari Yahya is in charge of the national carrier's long-haul operations while his deputy, Mohammed Rashdan Yusof, looks after the airline's short-haul operations.

Late last year, Ahmad Jauhari, when revealing MAS's business plan, announced the establishment of a new regional premium airline by mid-2012 to focus on short-haul premium travel to profitable routes such as Asean and China.

He had said then that MAS would run the new entity without interference from other associated entities and the new airline would be a new business model for sustainable profitability and ensure focus on unique needs of regional premium travellers.

The plan was also for the regional airline to fly all domestic and regional routes serviced by MAS today.

Malaysia Airlines was in the red for the financial year ended Dec 31, 2011, with a net loss of RM2.52 billion, on the back of RM13.9 billion in revenue, thus marking its worst financial results since its inception.

For the fourth quarter, the national carrier recorded a net loss of RM1.28 billion on a turnover of RM3.68 billion. – Bernama



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KLCI stays above 1,600-level at mid-day break

KUALA LUMPUR (April 3): The FBM KLCI stayed above the 1,600-level at the mid-day break on Tuesday, in line with the generally overall positive sentiment at key regional markets.

Asian shares rose on Tuesday on the back of strong gains in global equities overnight, after solid manufacturing data from the United States, and as leading Asian exporters offset signs of mild recession in Europe, according to Reuters.

The stronger-than-expected U.S. factory data pushed U.S. stocks to four-year highs, while European shares recorded their biggest daily gain in three weeks despite sluggish factory activity in the euro zone, it said.

The FBM KLCI rose 3.55 points to 1,607.33 at the mid-day break.

Gainers trailed losers by 323 to 294, while 319 counters trade unchanged. Volume was 591.10 million shares valued at RM55.31 million.

The ringgit strengthened 0.27% to 3,0463 versus US dollar; crude palm oil futures for the third month delivery gained RM27 per tonne to RM3,528, crude oil slipped 34 cents per barrel tp US$104.89 and godl rose US$2.15 an ounce to US$1,679.82.

At the regional markets, Hong Kong’s hamng Seng Idnex rose 0.48% to 20,621.40, the Shanghai Composite Index addd 0.47% to 2,262.79, Taiwan’s Taiex rose 1.65% to 7,733.08, South Korea’s Kosp added 0.85% to 2,046.58, whiel Japan’s Nikkei 225 fell 0.60% to 10,048.70 and Singapore’s Straits Times edged down 0.10% to 3,013.18.

Maybank Investment Bank Bhd research maintained its year-end KLCI target of 1,565 points, based on 13.3 times one-year forward earnings.

In a staretegy report released April 3, Maybank IB Research said while external conditions had improved and global financial markets continue to receive liquidity support, Malaysia was not out of the woods yet as the eurozone debt crisis had yet to fully play out, and there were still downside risks to the global economy.

“On the domestic front, an early 13th General Election (13GE), to be followed by the UMNO party elections this year-end, may lend to cautiousness in trading over the next few months,” it said.

On Bursa Malaysia, Dutch lady was the top gainer in the morning session on Tuesday and rose 52 sen top RM36.02, BAT added 42 sen to RM56.48, Carlsberg up 28 sen to RM10.74, Guan Chong 13 sen to RM2.82, United Malacca, Voir and Sarawak Planatations up 12 sen each to RM7.52, 66 sen and RM3.21 rspectively, while Jaya Tiasa and Nestle rose 11 sen each to RM8.63 and RM56.

Ingenuity Solutions was the most actively traded counter with 85.15 million shares done. The stock fell half a sen to 10 sen.

Other actives included Metronic, Naim Indah Corp, SuperComnet, Hubline, Araintec, Carotech, CIMB and Karambunai.

Decliners included Tahps, Genting PLANTATION []s, Cepco, United Plantations, SMPC, PPB, Petronas Dagangan and Can One.



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DKSH inks deal with Indonesian outfit Kino Care MES

KUALA LUMPUR (April 3): DKSH’s Business Segment Fast Moving Consumer Goods, a market expansion services (MES) provider, has inked an agreement with Kino Care (M) Sdn Bhd to help in the latter in its expansion by supporting sales, logistics, and distributions services for their personal care brands of Eskulin, B&B Kids, and Master Kids.

In a statement April 3, DKSH Holdings (Malaysia) Bhd said the collaboration, which this month would cover all territories and sales channels in Malaysia.

DKSH said Indonesian outfit Kino Care was originally established as a beverage, candy, and personal care products manufacturer but had expanded into Malaysia.

Kino Care appointment of DKSH as a partner was due to its comprehensive portfolio of integrated and tailor-made services, longstanding reputation, as well as extensive network of relationships in the personal care market.

DKSH’s Malaysia Executive Director of Business Unit Consumer Goods, Lian Teng Hai the company had a strong customer base in Malaysia and was confident that the local business partners would be excited about the opportunity to have access to Kino Care's high-quality products.

“In addition, this partnership will further strengthen DKSH’s leadership position in the Personal Care market and we look forward to a long and successful partnership with Kino Care in Malaysia,” he said.



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EITA’s IPO oversubscribed by 19.5 times

KUALA LUMPUR (April 3): Elevator manufacturer and distributor of electrical and electronics equipment EITA Resources Bhd, which is seeking a listing on the Main Board of Bursa Malaysia, received strong response for its Initial Public Offering (IPO) on the Main Market of Bursa Malaysia Securities Berhad (Bursa Malaysia), with its public tranche oversubscribed by 19.5 times.

In a statement Tuesday, the company said it received a total of 5,739 applications for 133.0 million shares with a total value of RM101.1 million, for the public tranche of 6.5 million shares under the Group’s IPO.

EITA group managing director Fu Wing Hoong said the oversubscription for its IPO as it indicates the investing community’s appreciation and level of confidence in EITA and its growth proposition.

“The upcoming listing in the Main Market will accelerate our expansion plans in both segments of elevator and E&E, by investing in new production facilities as well as research and development to enhance our corporate image and product offerings,” said Fu.

The company is scheduled to list on the Main Market of Bursa Malaysia on April, 2012.

The group’s IPO entailed a public issue of 23 million new ordinary shares and an offer for sale of 17 million ordinary shares, at an IPO price of RM0.76 per share.

Of the 23 million new shares, 6.5 million were allocated for public balloting and 3.5 million shares for eligible directors, employees and business associates of the Group.



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Alliance Financial up 1.3% on DBS’ entry updates

KUALA LUMPUR (April 3) : Shares of ALLIANCE FINANCIAL GROUP BHD [] (AFG) climbed as much as 1.3% on Tuesday morning following updates that Singapore-based DBS Bank Ltd plans to acquire state investment arm Temasek’s 14.2% stake in AFG. At 11.13am, AFG rose two sen to RM3.98 after reaching an intraday high of RM4.01.

In a note, RHB Research Institute Sdn Bhd said updates on DBS’ entry in AFG could generate interest in AFG shares.

This has prompted RHB to raise its target price for AFG by 10% from RM3.85 to RM4.25 and its recommendation for the stock from “underperform” to “market perform”.

“We believe there is a good chance of DBS acquiring Langkah Bahagia’s portion to raise its effective stake in AFG to more meaningful levels. DBS’ entry may also revive market talks about a potential M&A exercise with Hwang-DBS,” RHB said.



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CIMB rises 2% on acquisition news

KUALA LUMPUR (April 3 ) : Shares of CIMB Group Holdings Bhd rose as much as 2% on Tuesday morning on news that the financial services provider is acquiring Royal Bank of Scotland’s operations in Asia.

At 10.40am, CIMB was traded four sen higher at RM7.83 after touching an intraday high of RM7.96.

In a note, Credit Suisse said due to a lack of visibility on potential revenue upside for CIMB following the acquisition, Credit Suisse said investors “would at best be neutral on the deal”.

However, Credit Suisse said the timing of the deal is good and that CIMB has a good acquisition track record so far.



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CIMB rises 2% on acquisition news

KUALA LUMPUR (April 3 ) : Shares of CIMB Group Holdings Bhd rose as much as 2% on Tuesday morning on news that the financial services provider is acquiring Royal Bank of Scotland’s operations in Asia.

At 10.40am, CIMB was traded four sen higher at RM7.83 after touching an intraday high of RM7.96.

In a note, Credit Suisse said due to a lack of visibility on potential revenue upside for CIMB following the acquisition, Credit Suisse said investors “would at best be neutral on the deal”.

However, Credit Suisse said the timing of the deal is good and that CIMB has a good acquisition track record so far.



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MIDF Research ups target price for S P Setia to RM4.21

KUALA LUMPUR (April 3): MIDF Research has raised it target price for S P Setia Bhd to RM4.21 from RM3.95 previously and maintained its Neutral call on the stock and said the company was benefitting from a closer tie between the China and Malaysian governments.

S P Setia and Rimbunan Hijau Group had via Qinzhou Development Consortium S/B entered into a joint venture agreement with Qinzhou Jingu Investment Co, Ltd (Qinzhou Jingu) to develop, construct and operate the China-Malaysia Qinzhou Industrial Park (QIP) on a parcel of land measuring approximately 55 sq km (13,590.5 acres).

MIDF Research in a note April 3 said the outlook for China’s property market remains uncertain as the property price has escalated to unsustainable level due to excessive speculative activities.

“Nonetheless, we are positive on the involvement of SP Setia as QIP is a government to government project.

“Moreover, the China government had implemented several measures to counter the property speculation issue. The JV project will diversify SP Setia’s land bank which is predominantly located in Malaysia,” it said.



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Stocks to Watch CIMB, Muhibbah, S P Setia Bhd

KUALA LUMPUR (Apr 2): The FBM KLCI could extend its gains on Tuesday after finishing 0.5% or 7.45 points higher at an all-time high of 1,603.78 on Monday, riding on the improved sentiment at global markets after surprisingly firm China manufacturing data on Monday.

MIDF Research had on Monday 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 on Monday.

World stocks rose on Monday, underpinned by surprisingly firm China manufacturing data on Monday, though further evidence that the world's second biggest economy is slowing, along with eurozone debt jitters, kept demand for riskier assets in check, according to Reuters.

Wall Street was set to start the second quarter flat as the focus turned to equivalent US figures later in the day, with investors keen to see if recent momentum in the world's largest economy could be maintained, it said.

Meanwhile, European shares had eked out modest gains at the start of the second quarter after data last Sunday showed China's official Purchasing Managers' Index (PMI), which covers large factories, jumped to an 11-month high of 53.1 in March, beating forecasts, Reuters said.

Among the stocks that could be in focus on Bursa Malaysia are CIMB Investment Bank (CIMB), MUHIBBAH ENGINEERING (M) BHD [] and S P Setia Bhd.

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.

Muhibbah announced that its 50:50 joint venture (JV) 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 ("WICET"), worth A$60 million (RM192 million).

Muhibbah had on Dec 23 last year said the JV won a A$330 million 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 exporter.

S P Setia 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.



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