Genting Plantations- Sin Tek Huat JV to cultivate oil palm in Indonesia

KUALA LUMPUR (April 13) : Genting PLANTATION []s Bhd will acquire a controlling 63.2% stake in a joint venture (JV) company for US$116 million (about RM355 million), a move which will give the acquirer access to some 74,000 ha of oil palm plantation in Kalimantan, Indonnesia.

In a statement to Bursa Malaysia on Friday, Genting Plantations said it will jointly own the Singapore-based JV entity Global Agripalm Investment Holdings Pte Ltd with Global Agrindo Investment Co Ltd which will hold the remaining stake. Global Agrindo is part of Indonesia-based Sin Tek Huat Group.

“The proposed JV is in line with Genting Plantations’ long-term strategy to increase its interest in the palm oil industry, consistent with its confidence in the continued growth prospects of the industry.

“The proposed JV represents another positive step by Genting Plantations group towards realising its vision of establishing itself as a major player in the industry,” the firm 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.

Eversendai secures RM158 million job in Saudi Arabia

KUALA LUMPUR (April 13): Eversendai Corp Bhd will undertake a 193 million riyal (RM158 million) structural steel job for the railway station at King Abdul-Aziz International Airport in Saudi Arabia.

In a statement to the Bursa Malaysia on Friday, Eversendai said it was appointed as subcontractor for the project by Saudi Binladin Group Architecture & Building CONSTRUCTION [] Division.

Eversendai said the project which involves the design, fabrication and delivery of steel structures, is expected to contribute to its earnings in financial years ending Dec 31, 2012 and 2013.



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.

Boustead-Ikano JV to develop shopping centre in KL

KUALA LUMPUR (April 13): BOUSTEAD HOLDINGS BHD [] has roped in Luxembourg-based Ikano Holding SA as a joint venture (JV) partner to acquire prime Kuala Lumpur land where both companies intend to develop and manage a shopping centre.

In a statement to the exchange on Friday, Boustead said both companies will set up an equally-owned JV entity Circuit Wealth Sdn Bhd which will acquire land from Lembaga Tabung Angkatan Tentera (LTAT).

"The proposed JV will allow Boustead to increase its portfolio of retail investment PROPERTIES [] and leverage on its expertise to jointly develop and manage a shopping centre in the Kuala Lumpur city centre location," Boustead said.

Ikano owns and runs IKEA retail outlets across South East Asia under a franchise agreement with IKEA System BV.



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.

KLCI still above 1,600 at close

KUALA LUMPUR (April 13): Malaysian stocks exhibited resilience on Friday, with a brief encounter in the red before rising to close in positive territory on the final trading day of the week.

Gains in the FBM KLCI were in tandem with global markets, following positive updates that Italian government bonds have seen better-than-expected demand, although China's first quarter economic growth of 8.1% came in below street estimates.

At 5pm, the FBM KLCI added 1.85 points to close at 1,603.12. Across the exchange, 1.35 billion shares worth RM1.66 billion were traded, leading to 400 gainers versus 325 decliners.

Top gainer Sam Engineering & Equipment (M) Bhd rose 62 sen to RM2.69, while Hibiscus Petroleum Bhd added 41 sen to RM2.10.

Decliners included COUNTRY VIEW BHD [], which fell 31 sen to 73 sen, while Tradewinds PLANTATION [] Bhd was down 21 sen to RM5.69.

Among actively-traded stocks, INGENUITY SOLUTIONS BHD [] added one sen to 10 sen, with some 105 million shares done.

Across Asian bourses, Japan's Nikkei 225 rose 1.19% to close at 9,637.99 points while Australia's S&P/ASX 200 added 1% to 4,323.31. Hong Kong's Hang Seng added 1.84% to 20,701 points, while the Shanghai Composite Index added 0.35% to 2,359.16.



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.

Mesiniaga at four-year high on dividend updates

KUALA LUMPUR (April 13): MESINIAGA BHD [] shares rose as much as 4% to its highest in more than four years on Friday morning following the information TECHNOLOGY [] products company’s dividend updates.

Mesiniaga gained nine sent to an intraday high of RM2.36, the highest since August 2007, before settling lower at RM2.33 at noon.

The firm plans to reward shareholders with a first and final dividend of 21 sen less 25% tax for financial year ended Dec 31, 2011.

According to the company, the ex-date for the dividend is on June 19 this year while the final lodgement date is on June 21.



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.

TNB up 1.5% on better quarterly financials

KUALA LUMPUR (April 13): Shares of TENAGA NASIONAL BHD [] (TNB) gained as much as 1.5% on Friday morning following updates that the state-owned utility's second quarter (2Q) net profit rose more than four fold from a year earlier.

The stock rose 10 sen to an intraday high of RM6.61 before settling lower at RM6.59 at lunch break.

TNB's net profit came in at RM2.82 billion in 2Q ended Feb 29, 2012 against RM641.1 million a year earlier, as revenue grew 17% to RM8.63 billion from RM7.37 billion.

CIMB Investment Bank Bhd said in a note that it expected a better second half for TNB as the utility uses more gas to generate electricity against a backdrop of higher power demand in the country. CIMB raised its target price for TNB by 4.3% to RM7.98 from RM7.65 with a "trading buy" call.



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.

KLCI erases gains, up 2.3pts at midday

KUALA LUMPUR (April 13): The Malaysian equities barometer erased earlier gains, but still managed to settle in positive territory towards the Friday lunch break.

Gains in the FBM KLCI were in tandem with global markets, which found support from updates that Italian government bonds have seen better than expected demand, although China's first quarter economic growth of 8.1% came in below street estimates.

In technical terms, analysts said dynamics of the FBM KLCI are still weak. In a note on Friday, Kenanga Investment Bank Bhd said that although the index had breached the 1,600-point level, technical dynamics of the index are still deemed weak unless the gauge trades above the all-time high of 1,609.33.

This could result in an uptrend resumption for the FBM KLCI, according to Kenanga.

At 12.30pm, the FBM KLCI added 2.3 points to 1,603.57. Across the exchange, some 653 million shares worth RM612 million were traded, leading to 331 gainers versus 277 decliners.

Top gainer Sam Engineering & Equipment (M) Bhd rose 58 sen to RM2.65, while GUINNESS ANCHOR BHD [] was up 36 sen to RM13.

Decliner Tradewinds PLANTATION [] Bhd fell 21 sen to RM5.69, while KLUANG RUBBER CO (M) BHD [] was down 10 sen to RM2.80.

Most active was INGENUITY SOLUTIONS BHD [], which added one sen to 10 sen with some 100 million shares done.

Among Asian bourses, Japan's Nikkei 225 rose 1.41% to 9,658.66 points, while Australia's S&P/ASX 200 added 0.8% to 4,314.7. The Shanghai Composite was up 0.18% 2,355.14.



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.

Bumi Armada edges up on news of Caspian Sea contract

KUALA LUMPUR (April 13): Bumi Armada Bhd shares rose on Friday on reports that it had secured a pipeline contract in the Caspian Sea.

At 10.17am, Bumi Armada gained four sen to RM4.49 with 241,000 shares done.

A Kyiv Post article said Bumi Armada together with Lukoil-Niznyevolzhskneft LLC, a subsidiary of Lukoil has signed a contract to lay both underwater oil and gas pipelines for the Vladimir Filanovskoye deposits in the northern Caspian Sea.

Meanwhile, Maybank Investment Bank Bhd maintained its Buy rating on Bumi Armada Bhd at RM4.45 with a target price of RM4.88.

“While management has yet to confirm this (reported contract), we anticipate a marginal 1% enhancement to 2014 earnings,” said Maybank IB Research on Friday.

“Overall, we are marginally positive on this newsflow and it ties in with our expectation of the prospect of what the Caspian region can offer. Our unchanged RM4.88 TP is based on sum-of-parts (SOP) valuations,” it said.

The research house, citing the news artice, said the length would be around 40km for each pipeline.

“The completion of the first stage pipeline CONSTRUCTION [] is planned for end-2014 and the second stage the following summer. The Filanovskoye deposit project involves the laying of more than 330km of underwater and 350km of onshore pipelines,” 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.

Maybank IB Research maintains Buy on Bumi Armada

KUALA LUMPUR (April 13): Maybank Investment Bank Bhd has maintained its Buy rating on Bumi Armada Bhd at RM4.45 with a target price of RM4.88 following a Kyiv Post article that said Bumi Armada together with Lukoil-Niznyevolzhskneft LLC, a subsidiary of Lukoil has signed a contract to lay both underwater oil and gas pipelines for the Vladimir Filanovskoye deposits in the northern Caspian Sea.

“While management has yet to confirm this, we anticipate a marginal 1% enhancement to 2014 earnings,” said Maybank IB Research on Friday.

“Overall, we are marginally positive on this newsflow and it ties in with our expectation of the prospect of what the Caspian region can offer. Our unchanged RM4.88 TP is based on sum-of-parts (SOP) valuations,” it said.

The research house, citing the news artice, said the length would be around 40km for each pipeline.

“The completion of the first stage pipeline CONSTRUCTION [] is planned for end-2014 and the second stage the following summer. The Filanovskoye deposit project involves the laying of more than 330km of underwater and 350km of onshore pipelines,” 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.

KLCI gains on European debt sale and China outlook

KUALA LUMPUR (April 13) : Malaysian shares gained on Friday morning in tandem with Asian markets following overnight gains across US equity markets.

Global markets had found support from updates that Italian government bonds had seen better than expected demand, apart from the anticipation of China’s first quarter gross domestic product numbers on Friday. Analysts said overnight gains across US stock markets is expected lend to support to Asian equities.

“Back home, the benchmark FBM KLCI will probably show an extended upward bias following a cumulative two-day gain of 10 points. The immediate resistance barrier for the bellwether is currently seen at 1,610,” HwangDBS Vickers Research Sdn Bhd wrote in a note.

At 10am, the FBM KLCI added 2.12 points to 1,603.39. Across the exchange, some 300 million shares worth RM145 million were traded, leading to 262 gainers versus 122 decliners.

Top gainers JAYA TIASA HOLDINGS BHD [] added three sen to RM9.29 while AMWAY (M) HOLDINGS BHD [] was up 24 sen to RM10.

Decliners SARAWAK OIL PALMS BHD [] fell 27 sen to RM6.61 while TRADEWINDS (M) BHD [] was down 10 sen to RM10.10

Most active was INGENUITY SOLUTIONS BHD [] which added one sen to 10 sen with some 73 million shares done.

Among Asian bourses, Japan’s Nikkei 225 rose 1.64% to 9,680.85 points while Australia’s S&P/ ASX 200 added 1.03% to 4,324.6. South Korea’s Kospi was up 1.2% to 2,010.49.



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.

KLCI edges up in early trade

KUALA LUMPUR (April 13): The FBM KLCI edged up in early trade on Friday, in line with the firmer overnight close at Wall Street and improving sentiment at regional markets.

Asian markets were generally buoyed by market talk that economic growth data from China may top forecasts and after stronger-than-expected demand at an Italian bond auction eased worries about the euro zone crisis, according to Reuters.

The FBM KLCI rose 3.10 points to 1,604.37 at 9.15am.

Gainers led losers by 174 to 48, while 140 counters traded unchanged.

Volume was 118.6 million shares valued at RM42.52 million.

Among the early gainers on Bursa Malaysia were Dutch Lady, HLFG, UMW, Petronas Gas, Mesiniaga, Genting PLANTATION []s, Zhulian, KPJ and TH Plantations.



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 AMMB

KUALA LUMPUR (April 13): CIMB Research has maintained its Neutral rating on AMMB HOLDINGS BHD [] at RM6.35 with a target price of RNM6.22 after AMMB’s 51%-owned AmG Insurances entered into a conditional sale and purchase agreement to acquire 100% of Kurnia Insurans from Kurnia Asia for RM1.55 billion cash.

The research house said that AMMB’s AmG Insurance will emerge as the largest general insurer in Malaysia following its acquisition of Kurnia Insurans, which was sealed by the execution of S&P agreement yesterday.

The research house sid in a note Frday tha the deal would provide cost synergies and cross-selling opportunities in longer term.

“But the earnings accretion for AMMB will initially be minimal at only about 1% for FY3/14.

“We retain our valuation basis of 10% discount to DDM value and Neutral rating given the below-industry loan growth,” 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 Axis REIT, K-One Tech, IOI, Tan Chong, TNB

KUALA LUMPUR (April 12): Malaysian stocks could take the cue from China's first quarter gross domestic product (GDP) numbers, and the US corporate earnings dynamics on Friday.

Against the backdrop of external uncertainties, analysts cautioned that the FBM KLCI could see limited gains in the absence of domestic catalysts. The FBM KLCI rose 4.1 points to close at 1,601.27 on Thursday.

Stocks to watch on Friday include Axis Real Estate Investment Trust, K-ONE TECHNOLOGY [] BHD [], IOI Corp Bhd, TAN CHONG MOTOR HOLDINGS BHD [], and TENAGA NASIONAL BHD [] (TNB).

Axis REIT plans to acquire land within Negeri Sembilan's Nilai Industrial Area for RM26.5 million. The leasehold sites will be acquired from LRS Property Sdn Bhd, according to the acquirer.

K-One Tech, an electronic systems manufacturer, said one of its three factories in Ipoh was gutted by fire on Tuesday afternoon. The damaged is estimated at RM13 million, it said.

IOI's 30.4% associate Bumitama Agri Ltd rose as much as 36% on the PLANTATION [] firm's debut on the Singapore bourse on Thursday. Bumitama shares added 27 Singapore cents to an intraday high of S$1.02 (RM2.49) before closing lower at 98 Singapore cents.

CIMB Investment Bank has raised its fair value for Tan Chong from RM4.60 to RM4.75 with a "Neutral" recommendation.

TNB's second quarter net profit rose more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd (Petronas) mitigated the impact of costlier fuel to the state-owned utility's profits.

TNB said its bottom line was also helped by higher electricity sales and foreign exchange translation gains. It said net profit came in at RM2.82 billion in the second quarter ended Feb 29, 2012 against RM641.1 million a year earlier as revenue grew 17% to RM8.63 billion from RM7.37 billion.



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 inks cooperation agreement with RBS

KUALA LUMPUR (April 13): CIMB Group and RBS (Royal Bank of Scotland) Group have entered into a Cooperation Agreement (CA) to confirm their mutual understanding to explore cooperation in various areas of business.

In a statement April 12, CIMB said the CA covered potential collaboration in capital markets activities, mergers and acquisitions, equities, derivatives, loan markets, trade advisory and trade financing solutions, cash management services and agent / custodian bank arrangements.

Signing on behalf of CIMB was its group chief executive Datuk Seri Nazir Razak while RBS was represented by its head of Asia Pacific International Bankig Madan Menon.

Nazir said the bank was pleased to be able to do the signing so quickly after announcing its acquisition of RBS’ Investment Banking and cash equities businesses in Asia Pacific last week.

“This will provide a framework for our ex-RBS team to continue to work together with their ex-colleagues in areas of mutual interest between RBS and CIMB,” he said.

Nazir said that the CA would allow both CIMB Group and RBS Group to leverage off each other in key Asia Pacific markets.

“There is huge potential for cross referrals. RBS will be able to access CIMB capabilities in markets where we are strong, and vice-versa, we will be able to leverage RBS’s capabilities in markets where they are strong,” he said.

“For instance, in many of our markets outside ASEAN we do not have lending capabilities and will be working with other banks.”

Nazir said that since the acquisition of GK Goh Securities in 2005, CIMB’s investment banking franchise, including its securities operations, had been the market leader in ASEAN.

It has full presence in key ASEAN markets and representation in New York, London, Shanghai, Mumbai, Hong Kong, Colombo and Bahrain. It also operates via partnerships in Taiwan, Korea and Australia, he said.

“The addition of the RBS units will mean that, upon regulatory approvals, CIMB will have new on-shore presence in Taiwan and Australia, as well substantially enlarged operations in Hong Kong, India and China.

“Meanwhile, CIMB will seek to set up new operations in Korea soon. This deal decisively transforms CIMB into an Asia Pacific investment bank,” he 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.

Kejuruteraan Samudra Timur gets 3-year contract from Talisman

KUALA LUMPUR (April 13): KEJURUTERAAN SAMUDRA TIMUR BHD [] has secured a three-year contract from Talisman Malaysia Ltd for the provision of tubular handling equipment and services (“the Contract”) for a period of three (3) years effective from 9 April 2012 until 8 April 2015, with one (1) extension option of one (1) year.

In a filing on April 12, KSTB said that there was no indication on the value of the Contract in the award and it was subjective depending on the activities level by Talisman throughout the contract period.

It said the contract was expected to contribute positively to its future revenue and earnings.



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.