WZ Steel buys industrial tract in Indonesia

KUALA LUMPUR (April 27) : WZ Steel Bhd is acquiring an industrial land in Indonesia’s West Java province for IDR 14.58 billion (RM5.02 million) to build a new factory in the neighbouring country.

In a statement to the Bursa Malaysia, WZ Steel said it is buying the leasehold tract within the Delta Silicon industrial area in the Lippo Cikarang enclave, from Indonesia-based property developer PT Lippo Cikarang Tbk.

“The proposed acquisition is part of WZ Steel’s expansion plan to set up a factory in Indonesia. The total estimated investment costs for this new factory in Indonesia would be approximately RM16 million including land acquisition and CONSTRUCTION [] of manufacturing facilities.

“The market for the cold‐drawn steel products in Indonesia has seen considerable growth in the past few years. The setting up of production facilities in Indonesia will enable the group to be closer to its customers and tap the potential of the growing market there,” WZ Steel said.

It said it will finance the land acquisition and construction of its factory with internal funds and bank loans.



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Pensonic posts 3Q net loss on higher operating cost

KUALA LUMPUR (April 27) : PENSONIC HOLDINGS BHD [] posted a third quarter net loss on higher as higher revenue failed to mitigate the impact of rising operating cost for the electrical and electronic appliances manufacturer.

In a statement to the exchange, Pensonic said net loss came to RM1.14 million in the quarter ended February 29, 2012 against RM896,000 a year earlier. Revenue grew 7% to RM85.08 million from RM79.65 million.

“The decrease was mainly due to lower margin recorded as a result of active promotional activities carried out and also the increases in administration, selling and distribution expenses in current quarter for future expansion,” Pensonic said.

Cumulative nine-month net profit fell 54% to RM2.24 million from RM4.86 million a year earlier although revenue rose 12% to RM258.37 million from RM230.27 million. Pensonic said it will focus on its core business to achieve stronger profit growth for the final quarter of the current financial year.



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KLCI finishes in red on pre-election sentiment

KUALA LUMPUR (April 27) : The FBM KLCI stayed in the red till the market closed on Friday as pre-election sentiment gets an upper hand in dictating the direction of local equities. This comes ahead of the much-anticipated Bersih 3.0 rally on Saturday.

The less-optimistic sentiment across the local bourse was despite a stronger overnight close across US markets as global investors responded positively to improving US real estate and corporate earnings updates.

At 5pm, the FBM KLCI fell 11.89 points to close at 1,567.8. Across the exchange, 1.3 billion shares worth RM1.4 billion were traded, leading to 286 gainers versus 409 decliners.

Among top gainers, NCB HOLDINGS BHD [] was up 49 sen to RM4.39, while MALAYAN BANKING BHD [] added 12 sen to RM8.64.

Decliners include NESTLE (M) BHD [] which fell 80 sen to RM55.10 while BRITISH AMERICAN TOBACCO (M) [] Bhd was down 70 sen to RM54.80.

Most active was Ariantec Global Bhd which gained two sen to 25.5 sen with some 300 million shares done.



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CIMB Research maintains Outperform AirAsia, target price RM5

KUALA LUMPUR (April 27): CIMB Research has maintained its Outperform rating on AIRASIA BHD [] at RM3.38 with a target price of RM5 and said the low cost carrier’s 1Q12 operating statistics indicated an exceptionally strong Thai, consistently good Malaysian but unfortunately, weaker Indonesian performance.

In a note Friday, CIMB Research said the figures suggested that AirAsia as a whole should continue to do well in 2012 relative to its airline peers.

“We maintain our Outperform rating and target price based on 9x P/E.

“We believe that Thai AirAsia’s strong operating performance will contribute to the success of its impending listing and could help catalyse AirAsia’s share price,” it said.



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NCB at 15-year high on dividends

KUALA LUMPUR (April 27) : NCB HOLDINGS BHD [] rose as much as 14% to its highest in almost 15 years on the port operator’s dividends.

The top gainer across the exchange added 53 sen to RM4.43, the highest since June 1997, before being transacted lower at RM4.40 at 2.43pm with some 405,000 shares traded.

NCB told the exchange on Thursday it plans to reward shareholders with a single-tier special interim dividend of 56 sen a share for financial year ending December 31, 2012. The ex and entitlement dates fall on May 16 and 18 respectively, NCB said.



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MPI up 1% on dividends, OSK cuts earnings forecast and TP

KUALA LUMPUR (April 27) : MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI) rose as much as 1% as investors bought the stock to capitalise on its dividends.

MPI shares added three sen to RM3 before trading lower at RM2.99 at lunch break with about 52,000 shares changing hands. The stock had risen despite a downward revision to the company’s earnings forecast and share price.

In a note, OSK Research Sdn Bhd said it has revised downwards its earnings forecast for MPI by RM30.2 million and RM1.2 million for financial years ending June 30, 2012 (FY12) and 2013 respectively. This takes into account MPI’s latest quarterly financials.

The earnings forecast revision has prompted OSK to lower its target price for MPI shares by 1.6% or six sen from RM3.70 to RM3.64 while maintaining its “trading buy” call for the stock.

MPI posted a net loss of RM7.43 million in the third quarter ended March 31, 2012 against a net profit of RM5.05 million a year earlier as revenue fell18% to RM275.76 million from RM334.82 million. The company said revenue fell as it registered lower sales in major markets including European and Asian countries apart from the US.

Cumulative nine-month net loss came to RM33.26 million against a net profit of RM56.18 million previously while revenue fell 19% to RM870.6 million from RM1.07 billion.MPI said it plans to reward shareholders with a second interim tax-exempt dividend of five sen a share for FY12.



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KLCI in red till noon, focus on general election concerns

KUALA LUMPUR (April 27) : The FBM KLCI stayed in the red till lunch break on Friday as the local market takes the cue from domestic concerns ahead of the coming general election. Crucial highlights include the much-anticipated Bersih 3.0 rally on Saturday.

The less-optimistic sentiment across the local bourse was despite a stronger overnight close across US markets as global investors responded positively to improving US real estate and corporate earnings updates.

At 12.30pm, the FBM KLCI fell 8.01 points to 1,571.68.Across the exchange, some 759 million shares worth RM543 million were traded, leading to 216 gainers versus 356 decliners.

Top gainers NCB HOLDINGS BHD [] was up 46 sen to RM4.36 while COUNTRY VIEW BHD [] added 19 sen to 85 sen.

Among decliners, Sam Engineering & Equipment Bhd fell 37 sen to RM3 while United PLANTATION []s Bhd was down 24 sen to RM25.70.

Most active was Ariantec Global Bhd which gained 1.5 sen to 25 sen with some 267 million shares done.

Across Asia, Japan’s Nikkei 225 rose 0.12% to 9,573.64, Australia’s S&P/ASX 200 fell 0.05% to 4,373.2, while South Korea’s Kospi was up 0.48% to 1,973.55.



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Maybank among top gainers, trades ex-dividend

KUALA LUMPUR (April 27) : MALAYAN BANKING BHD [] (Maybank) rose as much as 1% as investors chased the stock to capitalise on its dividends. The stock trades ex-dividend on Friday and the final lodgement date falls on this Wednesday.

Shares of Maybank added nine sen to RM8.61 before trading lower at RM8.60 at 10.52am with some 1.5 million shares changing hands.

Maybank plans to reward shareholders with a final cash dividend of 36 sen a share less 25% tax for the six-months ended December 31, 2011. Note that Maybank had changed its financial year end from June 30 to December 31 in July last year.



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Bumi Armada down 5% on stake sale

KUALA LUMPUR (April 27) : Shares of Bumi Armada Bhd fell as much as 5% on updates that tycoon T. Ananda Krishnan is disposing of US$825 million (RM2.52 billion) worth of shares in the oil and gas support services provider.

The stock declined 23 sen to RM3.99 before trading higher at RM4 at 10.28am with some three million shares done.



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Malaysian stocks weighed down by pre-election sentiment

KUALA LUMPUR (April 27) : Malaysian stocks traded in negative territory on Friday morning as domestic pre-election sentiment gains an upper hand in dictating the direction of the FBM KLCI.

The local market may take the cue from domestic concerns ahead of the coming general election as investors assess the impact of the much-anticipated Bersih 3.0 rally on Saturday. Analysts said while US equities registered a stronger close in overnight trade, Asian stock markets could trade in an opposite direction on Friday.

“This is because sentiment will likely be affected by the negative vibes arising from S&P’s downgrade of Spain’s sovereign credit rating yesterday.

“Reflecting investors’ adverse reaction, the DJIA June futures contract tumbled this morning to hover at a 91-point discount to the spot rate,” HwangDBS Vickers Research Sdn Bhd wrote in a note.

At 9.59am, the FBM KLCI fell 9.28 points to 1,570.41. Across the exchange, some 455 million shares worth RM195 million were traded, leading to 163 gainers versus 208 decliners.

Top gainers NCB HOLDINGS BHD [] was up 45 sen to RM4.35 while PARKSON HOLDINGS BHD [] gained seven sen to RM5.29.

Among decliners, BRITISH AMERICAN TOBACCO (M) [] Bhd lost 76 sen to RM54.74, while Bumi Armada Bhd fell 18 sen to RM4.04.

Among actively-traded stocks, Ariantec Global Bhd gained two sen to RM25.5 sen with some 222 million shares done.

Across Asia, Japan’s Nikkei 225 rose 0.15% to 9,575.82, Australia’s S&P/ASX 200 climbed 0.08% to 4,378.8, while South Korea’s Kospi was up 0.78% to 1,979.43.



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CIMB Research maintains Outperform on Daibochi, target price RM3.25

KUALA LUMPUR (April 27): CIMB Research has maintained its Outperform rating on Daibochi Plastic & Packaging Industry Bhd with a target price of RM3.25 and said Daibochi’s 1Q12 results were within expectations.

The research house said on Friday that it expects Daibochi to secure maiden major orders from an Australian F&B player sometime this year.

“This could be the much-needed catalyst for the stock. Meanwhile, investors can get 6% return from dividends.

“Even though annualised 1Q12 net profit was 82% of our FY12 forecast, we consider this line with our and market expectations as we expect stronger earnings in the remaining quarters. We maintain our Outperform call and target price basis of 9x CY13 P/E, a 30% discount to our target market P/E,” it said.



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Petra Energy shares up on Perdana Petroleum soliciting bids for stake

KUALA LUMPUR (April 27): PETRA ENERGY BHD [] shares advanced on Friday after Perdana Petroleum Bhd, formerly known as PETRA PERDANA BHD [] said it was soliciting bids for its entire 26.9% stake in Petra Energy.

At 9.38am, Petra Energy rose four sen to RM1.18 with 155,100 shares done.

In a statement to the exchange on Thursday, Perdana Petroluem said it had appointed CIMB Investment Bank Bhd to undertake a restricted tender for its 57.7 million Petra Energy shares.



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Maybank IB Research maintains Buy on MAHB, target price RM7.10

KUALA LUMPUR (April 27): Maybank Investment Bank Bhd Research has maintained its Buy rating on Malaysia Airports Holdings Bhd with a target price of RM7.10 and said the company’s 1Q12 core net profit of MYR116.6m (+3.4% YoY, +26.7% QoQ), which was within its expectations, underpinned MAHB's resilience in the face of adversity.

“Despite Malaysian Airlines cutting capacity by over 10% in the quarter, MAHB managed to deliver 6.5% traffic growth YoY which is within its guidance for 6%-7% traffic growth in 2012,” the research house said in a note Friday.

‘We look forward to a promising 2012 as air travel momentum remains healthy in the region and MAHB's high utilization rates will boost profit and profit margin expansion. Maintain Buy, with an unchanged target price of RM7.10/share DCF-based,” it said.



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KLCI edges up in early trade on positive US data, but gains limited

KUALA LUMPUR (April 27): The FBM KLCI edged up in early trade on Friday in line with the overnight gains at Wall Street and higher opening at regional markets.

However gains were limited as the positive US data was overshadowed by after Standard & Poor's downgrade of Spain's rating, as well as investors staying on the sidelines ahead of this weekend’s planned Bersih 3.0 rally.

At 9.00am, the FBM KLCI rose 0.49 of point to 1,580.18, lifted by gains at select blue chips.

Gainers led losers by 26 to 9, while 25 counters traded unchanged. Volume was 4.73 million shares valued at RM7.7 million.

Asian shares inched up on Friday, tracking U.S. stocks which jumped overnight on strong U.S. housing data and earnings, but concerns over the health of European banks weighed on investor risk appetite after Standard & Poor's downgraded Spain's rating, according to Reuters.

Standard & Poor's on Thursday cut its credit rating on Spain to BBB-plus from A , a two-notch downgrade, citing its expectation the government's budget deficit will deteriorate even more than previously thought due to economic contraction.

On Bursa Malaysia, the gainers in early trade included NCB, Aeon, KP Healthcare, Petronas Chemicals, UMW, Genting, Maxis,Sime Darby, Tenaga and RHB Capital.



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Stocks to Watch MAHB, TA Global, Maybank, Aliran Ihsan, MPI

KUALA LUMPUR (April 26): The Malaysian stock market may take the cue from domestic concerns ahead of the coming general election, as investors assess the impact of the much-anticipated Bersih 3.0 rally on Saturday.

Analysts said these local factors could have the upper hand in dictating the direction of the FBM KLCI, despite more optimistic sentiment from the global backdrop.

Trading on the local bourse was volatile on Thursday, as the benchmark erased gains to sink into the red before closing up with a 0.34-point gain to 1,579.69. That could be indicative of trading dynamics on Friday.

Stocks to watch on Friday are Malaysia Airports Holdings Bhd (MAHB), TA Global Bhd, MALAYAN BANKING BHD [] (Maybank), ALIRAN IHSAN RESOURCES BHD [], and MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI).

Airport operator MAHB said first quarter (1Q) net profit rose 7% from a year earlier, as revenue growth mitigated the impact of higher operating expenses. MAHB said net profit came to RM102.73 million in the quarter ended March 31, 2012, against RM96.09 million previously. Revenue grew 6% to RM657.71 million from RM617.77 million.

TA Global, a property developer and investor, is acquiring the Movenpick Karon Beach Resort in Thailand from Saudi Arabia-based Kingdom Holding Co for US$90.21 million (RM276.94 million), a move which will see the acquirer making its initial venture into Thailand's hotel industry. TA Global said it is purchasing the entire stake in two wholly-owned units of Kingdom Holding — namely, Kingdom 5-KR-194 Ltd and Kingdom 5-KR-195 Ltd, under which the hospitality assets are held.

Maybank and water-treatment specialist Aliran Ihsan shares will trade ex-dividend on Friday. Maybank plans to reward shareholders with a final cash dividend of 36 sen a share, less 25% tax for the six-months ended Dec 31, 2011. Note that Maybank had changed its financial year end from June 30 to Dec 31 in July last year.

Aliran Ihsan plans to pay a single-tier first interim dividend of 8.5 sen a share for financial year ending Dec 31, 2012.

Semiconductor manufacturer MPI said it posted a net loss of RM7.43 million in the third quarter (3Q) ended March 31, 2012 against a net profit of RM5.05 million a year earlier, as revenue fell 18% to RM275.76 million from RM334.82 million. The company said revenue fell as the group registered lower sales in major markets — including European and Asian countries — apart from the US. MPI said it plans to reward shareholders with a second interim tax-exempt dividend of five sen a share for financial year ending June 30, 2012.



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