Zeti: No intention to review new guidelines on responsible lending now

KUALA LUMPUR (April 24): Bank Negara Malaysia (BNM) has no intention to review its new guidelines on responsible lending for the time being, Governor Tan Sri Dr Zeti Akhtar Aziz said on Tuesday.

"Whatever needs to be resolved will be through bilateral discussion. Right now we have no intention," she said when commenting on reports that the guidelines would be reviewed.

BNM's recent lending guidelines, effective Jan 1, stipulates that loans would only be approved based on net income and not gross income as previously practiced.

The new guidelines was aimed at managing household debt in Malaysia at reasonable levels.

Many parties in the automotive industry were not happy with the guidelines and attributed the drop in vehicle sales to the implementation of the guidelines.

Zeti said it would not be right for some automotive players to blame the guidelines for the dip in vehicle sales.

"I don't think that would be correct... because our guidelines are to ensure that the borrowers are in a position to take on increased debt and this is important.

"It would not be of any use if the borrower cannot pay the debt and the car is repossessed. We want those who have the capability to take on (debt)," she said.

As such, she said the guidelines ensured Malaysia's household debt and the quality of debt remained positive.

In addition, Zeti said the country's non-performing loans were declining.

She also said sales of vehicles had to be based on comparative advantage such as cost of effectiveness, model designs and innovation that the automotive companies had undertaken.

"All these will help them. And, also it is obvious that the Malaysian market at some point will become highly saturated. It is already saturated in terms of car ownership," she added.

Zeti said it was important for automotive players to be highly competitive and export their vehicles overseas. — Bernama



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Redtone posts 3Q profit on higher turnover, non-operating gains

KUALA LUMPUR (April 24) : REDTONE INTERNATIONAL BHD [] posted profits in the third quarter against losses a year earlier as the telecommunication firm registered higher revenue and non-operating gains.

In a statement to the exchange on Tuesday, Redtone said net profit came to RM427,000 in the quarter ended February 29, 2012 versus a net loss of RM1.93 million previously. Revenue was up 13% to RM23.58 million from RM20.96 million.

The firm’s non-operating income in the 3Q comprises mainly subsidiary-disposal gains, according to notes accompanying its financials.

Redtone said cumulative nine-month net loss narrowed to RM324,000 from a net loss of RM3.71 million a year earlier as revenue gained 27% to RM84.24 million from RM66.43 million.



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Ancom narrows 3Q net loss to RM44,000

KUALA LUMOUR (April 24): ANCOM BHD [] narrowed its net loss in the third quarter ended Feb 29, 2012 to RM44,000 from RM78,700 a year earlier, on the back of higher revenue across all major business segments.

The company said on Tuesday that its revenue for the quarter rose to RM415.56 million from RM373.22 million in 2011.

Loss per share was 0.02 sen compared top loss per share of 0.36 sen a year earlier, while net assets pers share was RM1.39.

For the nine months ended Feb 29, Ancom posted net loss RM3.59 million compared to net loss RM16.06 million previously.

Reviewing its performance, Ancom said its agricultural and industrial chemical division remained the largest business segment.

It said the division continued to post strong revenue growth in the current financial period supported by higher exports.

“In addition, lower operating costs in the Media Division have also contributed to the favourable Group’s results.

On its prospects, Ancom said that based on its improved performance of the Group compared to the previous financial year, its performance of the would remain satisfactory for the remaining of the financial year.



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Globetronics 1Q profit down 4% year-on-year

KUALA LUMPUR (April 24) : GLOBETRONICS TECHNOLOGY [] BHD []’s first quarter net profit fell 4% from a year earlier as the electronics component manufacturer registered lower revenue and higher operating cost.

In a statement to the bourse, Globetronics said net profit came to RM6.2 million in the quarter to March 31, 2012 against RM6.43 million previously. Revenue fell 15% to RM56.79 million from RM67.09 million as the company registered less turnover from China and Singapore, it said.

“Moving forward, the group will continue to focus on escalating up the value chain and riding on the research and development initiatives in new products’ design and development.

“The group will also continue to step up efforts in improving the efficiency and cost reduction measures in its group’s operations to achieve the necessary competitive edge in the market.

With the above, the group is optimistic of performing satisfactorily in financial year 2012,” Globetronics said.



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HSBC Trade Forecast: M’sia’s trade growth will be 139.37% from 2012 to 2026

KUALA LUMPUR (April 23): Malaysia’s trade growth will be 139.37% from 2012 to 2026, according to the HSBC Global Connections Trade Forecast.

In a statement Tuesday, HSBC Malaysia said the Trade Forecast predicts that trade in Malaysia would grow at an annualised rate of 3.30% over the next five years, from 2012 to 2016, and that it will continue to increase its trade substantially subsequently with an annualised growth rate of 6.85% from 2017 to 2021.

It said that it was expected that Malaysia’s annual growth would be higher than the average for the world.

“Although this is not as distinct for the first five years; as the global economy picks up and ‘Emerging Asia’ in particular expands its trade routes within the region, the country’s trade is predicted to expand much faster than the average for the world annually with the gap widening year-on-year to 2026,” it said.

HSBC said the export trade with China was forecast to grow at an annual rate of 8.33%, with Indonesia at 6.53%, and with Singapore at 4.91% over the next five years.

“Vietnam is also growing fast with exports forecast to grow at 9.47% annually over the next five years,” it said.

Malaysia’s largest import partners are China, Japan and Singapore; and the Trade Forecast predicts that the import growth from 2012 to 2016 for China will be at 5.92%, Japan at 4.69%, and Singapore at 4.51% annually.

HSBC Bank Malaysia director for Global Trade and Receivables Finance, Ng Wei Wei said that HSBC’s research findings suggested that despite the current economic uncertainty and global market pressures, the nation’s underlying fundamentals are strong.

“Malaysia continues to be a key emerging market with good trade performance, and a stable domestic demand fuelled by the implementation of initiatives under the Malaysian Government’s Economic Transformation Programme (ETP) which continues to boost the country’s business environment,” said Ng.



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KLCI closes lower, but pares down loses

KUALA LUMPUR (April 24): The FBM KLCI closed lower on Tuesday, but pared down it losses to move above the 1,580-point mark in line with the slight recovery at most key regional and European markets.

European share markets and the single currency staged modest recoveries on Tuesday, after steep losses caused by the worsening performance of the euro zone economy and a sharp rise in concern over the political will to fix its fiscal problems, according to Reuters.

The FBM KLCI fell 1.52 points to close at RM1,582.28. The index had earlier fallen to its intra-day low of 1,579.04.

Market breadth remained weak with 409 losers, 273 gainers and 348 counters trading unchanged. Volume was 1.42 billion shares valued at RM1.55 billion.

At the regional markets, Hong Kong’s hang Seng Index gained 0.26% to 20,677.16, Taiwan’s Taiex added 0.24% to 7,498.84, the Shanghai Composite Index edged up 0.01% to 2,388.83 and Singapore’s Straits Times Index

Meanwhile, South Korea’s Kospi fell 0.47% to 1,963.42 and Japan’s Nikkei 225 shed 0.78% to 9,468.04.

Among the decliners on Bursa Malaysia, Petronas dagangan fell 26 sen to RM19.28, Jaya Tiasa down 22 sen to RM9.54, Carlsberg 20 sen to RM11.30, SAM Engineering 17 sen to RM3.38, APM Automotive down 14 sen to RM4.50, Tradewinds 13 sen to RM9.52, S P Setia 11 sen to RM3.73, while Subur Tiasa and Ta Ann lost 10 sen each to RM2.85 and RM6.50.

Ariantec was the most actively trade counter with 142.38 million shares done. The stock gained one sen to 25 sen.

Other actives included Ingenuity Solutions, Metronic, Focus, CSL, Ramunia, TMS, JCY and Astral Supreme.

Gainers included Aeon Credit, Top Glove, CSL, Panasonic, MMC Corp, Three-A Resources, Quality Concrete, UMW and JCY.



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CCM ceases counter service operations at City Hall

KUALA LUMPUR (April 24): Companies Commission of Malaysia (CCM)'s counter service for business registration at the Kuala Lumpur City Hall will cease operations beginning May 1.

The commission said customers can visit its offices located in Menara SSM@Sentral, Kuala Lumpur Sentral, and Level 16, Sunway Putra Mall, Kuala Lumpur, to carry out business registration or renewal exercise.

Customers may also utilise the e-Lodgement online services at www.ssm.com.my for the same purpose, said CCM in a statement. — Bernama



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UMW advances following upgrade

KUALA LUMPUR (April 24): UMW HOLDINGS BHD [] shares advanced on Tuesday after Maybank Investment Bank Bhd Research upgraded the stock to a Buy from Hold and raised its target price to RM8.35 (from RM6.95).

At 4pm, UMW rose 16 sen to RM7.70 with 4.49 million shared done.

Maybank IB Research in a note on Monday said it had upgraded UMW, ahead of recoveries at the automotive and O&G sectors, and on the back of a 10-11% rise in 2012-13 net profit forecasts.

“The disruption to the regional auto supply chain has abated while its O&G segment is at the cusp of a revival.

“ With market already absorbing the anticipated weak 1Q12 earnings and its 2011 kitchen-sinking exercise, UMW now offers a recovery play angle with modest growth (3-year EPS CAGR of 20%) and undemanding valuations, supported by a decent dividend yield (6%),” it said.



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MAS gains 3% on falling oil prices

KUALA LUMPUR (April 24) : MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) gained as much as 3.3% or four sen to RM1.27 in intraday trade against a backdrop of declining crude oil prices. The stock, however, traded lower at RM1.26 as at 3pm with some 477,000 shares done.

The investment fraternity has a cautious sentiment on MAS’ outlook. In a note, OSK Research Sdn Bhd analyst Ahmad Maghfur Usman said crucial concerns for MAS include its capital commitments against costlier jet fuel and sluggish air travel demand.

“We see the increasing likelihood for the national-flagged carrier to call for another round of a rights issue as its credit facility dries up. Furthermore, there are risks that its collaborative framework with AirAsia could be called off due to strong resistance from its unionised workforce.

“If this does happen, MAS will be negatively impacted over the longer run as more headwinds are expected from the intensification of competition ahead of the Open Sky Policy,” Ahmad Maghfur said. OSK maintains its “sell” call and target price of 90 sen for MAS.



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Cypark edges up after CIMB Research initiates coverage

KUALA LUMPUR (April 24): CypARK RESOURCES BHD [] shares edged up in the afternoon session on Tuesday after CIMB Research initiated coverage on the stock at RM1.89 with an Outperform rating and target price of RM2.82.

In a note Tuesday, CIMB Research said Cypark, Asean’s only listed renewable energy (RE) developer was set to boost FY13 core EPS by 91% yoy as it increases RE capacity by eightfold to 60MW.

“Execution risks are mitigated by Malaysia’s feed-in-tariff, government support and 16-21 year offtake agreements with Tenaga.

“As its risk profile improves due to a sixfold jump in fixed revenue by FY13, more value will be unlocked. Cypark is trading at 6.3x FY13 P/E while offering 6% net yield. We begin coverage with an Outperform and RM2.82 target price, based on 10% discount to SOP due to its small size,” it said.



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Top Glove advances on analysts’ upgrades

KUALA LUMPUR (April 24) : Top Glove Corp Bhd advanced as much as 2.3% after analysts raised their earnings forecast and target price for the world’s largest rubber glove manufacturer in terms of capacity.

The stock rose 10 sen to RM4.53 before settling lower at RM4.50 at lunch break. In a note, Maybank Investment Bank Bhd analyst Lee Yen Ling said the research house has raised its earnings per share (EPS) forecast for Top Glove by 8% to 12% for financial years (FY) ending August 31, 2012 to 2014 after taking into account lower prices of natural rubber.

“With majority of its sales in the latex segment (74% of total sales), a surplus-led lower latex cost will help Top Glove to at least sustain its margins. We lower our latex cost assumption by 7%, resulting in an 8% to 12% upward revision to our FY12-14 EPS forecasts,” Lee said.

Maybank which revised upwards its fair value for Top Glove shares by 29% to RM5.40 from RM4.20, also upgraded the stock to a “buy” from “sell”.



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HELP to grow non-degree segment, says president

KUALA LUMPUR: HELP INTERNATIONAL CORPORATION [] Bhd plans to grow its non-degree segment to 30% of its contributions in five years’ time, said its president Datuk Dr Paul Chan

"We are now diversifying our revenue sources and are now working towards adult learning programmes," he said after the company’s annual general meeting on Tuesday.

Chan saiod HELP would also start offering in house training to large corporations and was now doing so with "the largest insurance company in Malaysia".

He said it also hoped to increase its student base from the current 11,000 to 20,000 by 2018 when its Subang 2 campus is completed.

The group is spending some RM200 million on building the campus which will not only cater the university but also its international school, due to start in September 2013.



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Aeon Credit trades at highest since Dec 07 IPO

KUALA LUMPUR (April 24) : Top gainer AEON CREDIT SERVICE (M) BHD [] gained as much as 3.4%, sending the stock to its highest since its listing, after the firm announced stronger earnings and proposed dividends.

Aeon Credit shares added 33 sen to settle at RM9.95 at lunch break.with some 622,000 shares done. The financial services entity was listed in December 2007 at an issue price of RM2.50.

Aeon Credit said last Thursday net profit rose 51% to RM95.61 million in financial year ended February 20, 2012 (FY12) from RM63.43 million a year earlier. Revenue climbed 28% to RM344.27 million from RM269.61 million.

The company plans to reward shareholders with a final single-tier dividend of 16.8 sen a share which requires shareholders’ consent. The proposed dividend brings Aeon Credit’s total payout to 30 sen a share in FY12, translating into a yield of 3% based on its latest share price.



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KLCI pares down losses at mid-day break, edges above 1,580-level

KUALA LUMPUR (April 24): The FBM KLCI pared down some of its earlier losses at the mid-day break on Tuesday and moved above the crucial 1,580-point level.

Meanwhile, Asian shares inched up on Tuesday but gains were limited as political uncertainty and disappointing data in Europe raised fears the euro zone could struggle to push through austerity measures and may stay in recession until late in the year, according to Reuters.

A weaker-than-expected reading of consumer inflation in Australia, a day after a weaker producer prices report, set the scene for an local rate cut next week and bolstered local shares up 0.4 percent from a flat early trade, it said.

The FBM KLCI was down 3.11 points to 1,580.69, weighed by losses at select blue chips including Petronas Dagangan, Genting and CIMB. The index had earlier fallen to its intra-morning low of 1,579.04.

Loser ebeat gainers by 379 to 191, while 314 counters traded unchanged. Volume was 727.97 million shares valued at RM608.87 million.

The ringgit weakened 0.009% to 3.0695 versus the greenback, crude palm oil futures for the third month delivery fell RM20 per tonne to RM3,455, crude oil shed 14 cents pare barrel to US$102.97 and gold lost US$2.15 an ounce to US$1,636.68.

At the regional markets, Japan’s Nikkei 225 fell 0.90% to 9,456.13, Hong Kong’s Hang Seng Index was down 0.32% to 20,559.10, the Shanghai Composite Index fell 1.4% to 2,355.17, Taiwan’s Taiex fell 0.23% to 7,464.14, South Korea’s Kospi was down 0.74% to 1,958.04 and Singapore’s Straits Times Index lost 0.34% to 2,972.53.

On Bursa Malaysia, SAM Engineering was the top loser and fell 29 sen to RM3.26, Petronas Dagangan down 24 sen to RM19.30, Jaya Tiasa 14 sen to RM9.62, S P Setia shed 13 sen to RM3.71, Hong Leong Bank 12 sen to RM12.30, while Dutch Lady, Carlsberg, AirAsia, Genting and CIMB fell eight sen each to RM35, RM11.42, RM3.40, RM10.54 and RM7.42 respectively.

Ingenuity Solutions was the most actively trade counter with 732 million shares done. The stock was unchanged at 9.5 sen.

Other actives included Ariantec, TMS, Focus, JCY, Ramunia, Metronic, Sanichi and CSL.

Meanwhile, the gainers in the morning session included Aeon Credit, United PLANTATION []s, Aeon, UMW, Quality Concrete, SapuraCrest, Fiamma, PacifiMas and KrisAssets.



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Tanjung Offshore up 4% on marine unit disposal

KUALA LUMPUR (April 24) : TANJUNG OFFSHORE BHD [] shares gained as much as 4.3% following updates that the firm plans to sell its marine oil and gas support services unit to a major shareholder.

The stock rose four sen to 97 sen before settling lower at RM92.5 sen at lunch break with some three million shares done.

Tanjung Offshore said it plans to sell its entire stake in wholly-owned Tanjung Kapal Services Sdn Bhd to local private equity firm Ekuinas for RM220 million. Ekuinas owns 24% ofTanjung Offshore.

The exercise will also see Tanjung Kapal settling some RM44 million worth of advances from Tanjung Offshore, according to the seller. Tanjung Offshore had cash of RM21.85 million as at December 31, 2011 versus debt obligations of RM348.55 million, translating into a net debt of RM326.7 million, its balance sheet shows.



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Petra Energy appoints new advisor

KUALA LUMPUR (April 24): PETRA ENERGY BHD [] has appointed John Michael Peck as Advisor for the development of subsurface and production capabilities for the Group.

The integrated oil & gas brown field service provider said in a statement Tuesday that John Peck has 35 years’ experience in the oil and gas industry including various key positions in Petronas, where he was involved in exploration, development and production projects in Vietnam, Turkmenistan, Dubai and the Malaysia Thailand Joint Development Area.

The company said John Peck holds a Bsc Geology from University Malaya.

It said prior to joining Petra Energy, John Peck was advisor to the Chinese Petroleum Company (CPC) Taiwan in Malaysia.

He is also actively involved in oil & gas in Myanmar, it said.

“John Peck is a strong addition to the current Petra Energy team, with his scope of expertise and depth of knowledge in the exploration and production business, he will play an integral role in the future development of Petra Energy,” it said.



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Autov up 4% ahead of trading suspension

KUALA LUMPUR (April 24): Autov Corp Bhd shares gained as much as 4% as investors chased the stock ahead of its trading suspension.

Shares of the automotive component manufacturer rose eight sen to RM2.08 before trading lower at RM2.05 at 11.59am.

Trading of Autov shares will be suspended beginning May 7 until the company’s delisting from the exchange to facilitate the capital repayment of RM2.38 a share by the firm, according to Autov.

This follows the takeover offer from Globaltec Formation Bhd, in which, Datuk Goh Tian Chuan is a major shareholder. The ex and entitlement dates for the capital repayment fall on May 9 and 11 respectively, according to Autov.



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Three-A up 8% on JV with Wilmar

KUALA LUMPUR (April 24) : THREE-A RESOURCES BHD [] shares climbed as much 8% on updates that the firm’s collaboration with Singapore-listed Wilmar International Ltd to establish a food ingredient factory in China is taking shape.

Three-A shares rose nine sen to RM1.29 before trading lower at RM1.27 at 11.30am with some 1.5 million shares done.

Datuk Mohd Nor Abdul Wahid who is Three-A’s chairman recently said the food ingredient factory in China is expected to begin production this month. He said the factory will produce ingredients like hydrolysed vegetable protein, a food flavour enhancer.

Malaysia’s PPB GROUP BHD [] owns 18.32% of Wilmar.



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KLCI eases on fundamental and technical weakness

KUALA LUMPUR (April 24) : Malaysian shares recoup losses, albeit, still in the red on Tuesday morning on weaker fundamental and technical indicators.

Analysts said the near-term outlook for the FBM KLCI is less optimistic after taking into account weaker economic data from the US, China and Europe. In Malaysia, pre-election sentiment has also not helped the local equities benchmark, they said.

“Coupled with overnight losses on Wall Street and Europe markets, and a possible massive Bersih 3.0 rally on April 28, KLCI is likely to face further sell down in the next few days,” Hong Leong Investment Bank Bhd wrote in a note.

At 10am, the FBM KLCI fell 2.86 points to 1,580.94. Across the exchange, some 383 million shares worth RM206 million were traded, leading to 51 gainers versus 204 decliners.

Top gainers United PLANTATION []s Bhd added 50 sen to RM26 while Aeon Co (M) Bhd was up 48 sen to RM9.68.

Among decliners, PETRONAS DAGANGAN BHD [] fell 42 sen to RM19.12 while PETRONAS GAS BHD [] was down 10 sen to RM16.80.

Most active was INGENUITY SOLUTIONS BHD [] which added 0.5 sen to 10 sen with some 46 million shares done.

Among Asian bourses, Japan’s Nikkei 225 fell 0.7% to 9,474.91 points, South Korea’s Kospi was down 0.4% to 1,964.79, while Australia’s S&P/ ASX 200 rose 0.31% to 4,366.1.



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Maybank IB Research maintains Hold on BAT, target price RM50.40

KUALA LUMPUR (April 24): Maybank Investment Bank Bhd Research has maintained its Hold rating on British American Tobacco (Malaysia) Bhd with a target price of RM50.40 and said the company’s RM194.5 million 1Q12 core net profit (+9% YoY, +14% QoQ) accounted for 25% and 26% of its own and consensus forecasts respectively.

“Despite beaten-down ELPC market share and declining illicit cigarette consumption, the industry remains vulnerable to regulatory risks e.g. tax hikes and other legal sanctions. BAT's valuations have also overtaken its fundamentals; at 20x 2012 PER, it is trading at more than 1SD above its mean PER of 17x.

“We maintain our Hold call with an unchanged DCF-based TP of RM50.40 for its decent dividend yield of 4.4% and defensive earnings,” the research house said in a note Tuesday.



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Regional markets jolted by European woes, KLCI falls below 1,580

KUALA LUMPUR (April 24): The FBM KLCI fell below the psychologically crucial 1,580-level on Tuesday, in line with the sharply lower key regional markets that retreated on the back of the economic and political uncertainties emanating from Europe.

At 9.01am, the FBM KLCI fell 4.21 points to 1,579.59, weighed by losses at select blue chips.

Losers edged gainers by 56 to 55 in early trade. Volume was 33.81 million shares value at RM19.07 million.

Asian shares fell on Tuesday as political uncertainty and disappointing data in Europe raised fears the euro zone could struggle to push through austerity measures and may stay in recession until late in the year, according to Reuters.

Meanhilwe, US stocks fell over 1% overnight and European equities plunged to a three-month low on Monday, hurt by data showing the euro zone's business slump deepened at a far faster pace than expected in April, it said.

Among the early decliners on Bursa Malaysia were Petronas Dagangan, Genting PLANTATION []s,Pintaras, AirAsia, RHB Capital, Axiata, Genting, top Glove and Maybank.



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RHB Research maintains Market Perform on S P Setia, ups fir value to RM4

KUALA LUMPUR (April 24): RHB Research has raised its fair value for S P Setia Bhd to RM 4 and said the company’s recent venture into China made good sense.

In a note Tuesday, the research house said (i) The G-to-G tie-up underpinned SP Setia’s venture in the Qinzhou Industrial Park (QIP) development should enhance the credibility and chances of success of the project; (ii) Tier-4 city as an entry point can avoid the high regulatory requirements in housing sales; (iii) Timely entry to the Chinese market in the temporary sector downcycle; and (iv) The QIP project can potentially be worth more than RM20 billion.

If the 1st phase is proven successful, long-term value to SP Setia will be tremendous, it said.

“The risk profile of the company is expected to change given the size of the QIP project (13,591 acres). We are biased on the positive side due to the above factors. Initial funding and future working capital will be funded via debt and equity, which will be within SP Setia’s capacity given its current net gearing of 8%.

“Fair value is raised to RM4.00 as we impute only the DCF value from the Binhai project. Given minimal potential upside, we maintain our Market Perform call on the stock,” it said.



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MIDF Research upgrades E&O to Buy, target price RM 1.70

KUALA LUMPUR (April 24): MIDF Research has upgraded Eastern & Oriental Bhd to a buy with a target price of RM 1.70 after the company proposed to acquire an office cum retail building known as Princes House, located at 37-39 Kingsway, London WC2b 6TP, United Kingdom.

In a note Tuesday, MIDF Research said The purchase consideration is £20.3m which translates to about RM100.9m (based on £1:RM4.983 @ 23 Apr 12).

The research house said that assuming the remaining 90% of the building is fully leased out with rental rate similar to that paid by the ground floor tenant, Prince House would generate gross rental yield of about 6.5%.

However, MIDF Research said it did not expect the vacant space to be filled up so soon.

“At current juncture, E&O has not disclosed its future plans for the building. Hence, pending further details, we are maintaining our earnings forecast for E&O.

“We are upgrading our Recommendation for E&O to BUY with an unchanged target price of RM1.70 which is a 20% discount against RNAV of RM2.12,” it said.

MIDF Research said the recent retracement of property companies’ share prices has rendered E&O’s share price attractive, with projected total return of more than 15%.

“At yesterday’s closing price of RM1.42, investors would be paying 38% lower than what Sime Darby paid for its stake in E&O at RM2.30 per share,” it said.



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CIMB Research maintains Overweight on O&G equipment and services

KUALA LUMPUR (April 24): CIMB Research has maintained its Outperform rating on the Oil & gas equipment and services sector and said three enhanced oil recovery projects were up for grabs as Petronas keeps things going at home to reverse the domestic production decline.

In a note Tuesday, the research house said the projects should benefit the broader sector although FPSO operators stood to gain more.

“We remain Overweight on the sector, with our top picks being Petronas Dagangan for the big caps and Perisai for the small caps,” it said



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Stocks to Watch Kencana, SapuraCrest, Oriental, KAF, BAT

KUALA LUMPUR (April 23): Malaysian stocks may see further weakness on Tuesday against less-optimistic fundamental and technical indicators. Analysts have a downside-bias perception on the FBM KLCI in anticipation that global economic data and Malaysia's pre-election sentiment could curb gains across the 30-stock benchmark.

Crucial global highlights this week include potential indications of further quantitative easing by US policymakers, and China's monetary policy, results from which will influence the direction of global financial markets.

The spotlight also falls on Europe after the Flash Purchasing Manager's Indexes for Europe indicated a quicker pace of economic decline for the region. These global updates have resulted in a sell-off across Asian stockmarkets.

The FBM KLCI fell 8.05 points to 1,583.8 on Monday.

Stocks to watch on Tuesday include KENCANA PETROLEUM BHD [], SAPURACREST PETROLEUM BHD [], ORIENTAL HOLDINGS BHD [], KAF-Seagroatt & Campbell Bhd, and BRITISH AMERICAN TOBACCO (M) [] Bhd (BAT).

Shares of Kencana and SapuraCrest rose on news that trading of both stocks will be suspended beginning May 2 to facilitate the capital repayment exercises by the oil and gas support service providers. The capital repayment is in conjunction with the merger of both firms under a new-listed entity, SapuraKencana Petroleum Bhd.

Diversified entity Oriental trades ex-dividend on Tuesday. The company — the portfolio of which includes automotive, property and PLANTATION []s — plans to reward shareholders with a single-tier interim dividend of 3% for the financial year ended Dec 31, 2011. The final lodgement day is this Thursday.

KAF's third quarter (3Q) net profit more than doubled from a year earlier, as the stockbroking firm registered higher non-operating gains, which mitigated the impact of lower revenue and higher operating expenses. In a statement to the exchange on Monday, KAF said net profit came to RM8.62 million in the quarter to Feb 29, 2012 versus RM4 million a year earlier. Revenue fell 15% to RM7.18 million from RM8.45 million.

BAT's net profit rose 9% to RM194.51 million in the first quarter ended March 31, 2012 from RM178.56 million a year earlier, helped by higher revenue and lower operating expenses. The company said revenue rose 5% to RM1.04 billion from RM992.15 million. The tobacco firm plans said it plans to reward shareholders with a first interim tax-exempt dividend of 65 sen a share for the current financial year ending Dec 31, 2012.



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