RHB Research upgrades aviation sector to Overweight, top pick AirAsia

KUALA LUMPUR (Dec 16): RHB Research has upgraded the aviation sector to “Overweight” from Neutral and said the slump in oil prices would benefit the aviation sector.

In a note Tuesday, the research house said while it does not see demand growing strongly, sector earnings will be underpinned by yield recovery, with an additional positive impact from lower jet fuel prices.
“As such, we upgrade the sector to Overweight from Neutral.

“AirAsia Bhd is our Top Pick for the Malaysian aviation sector. AirAsia X Bhd remains a Sell as losses will continue into FY15,” it said.

At 10am, AirAsia rose 0.36% or one sent to RM2.81 with 1.37 million shares done while AirAsia X fell 0.73% or half a sen to 68 sen with 969,300 shares traded.

Limited gains for KLCI

KUALA LUMPUR (May 10): The FBM KLCI reversed its earlier losses and closed higher on Thursday, but the gains were limited in line with the mixed regional markets still weighed by concerns the global economic outlook.

The FBM KLCI rsoe 3.16 points to close at 1,588.06. It had earlier risen to its intra-day high of 1,590.20.

Gainers edged losers by 376 to 358, while 325 counters traded unchanged. Volume was 1.4 billion shares valued at RM1.39 billion.

Asian shares were mixed, as weak Chinese trade data stoked fears of a growth slowdown, further undermining risk appetites already reduced by worries about the health of Spanish banks and deepening political chaos in Greece, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index fell 0.51% to 20,227.28, Japan’s Nikkei 225 lost 0.39% to 9,009.65, South Korea’s Kospi was down 0.27% to 1,944.93

Meanwhile, the Shanghai Composite Index added 0.07% to 2,410.23 and Taiwan’s Taiex gained 0.11% to 7,484.01, and Singapore’s Straits Times Index edged up 0.09% to 2,903.60.

On Bursa Malaysia, United PLANTATION []s was the top gainer and added 56 sen to RM26.50, Petronas Gas up 30 sen to RM17.28, Ajinomoto 27 sen to RM4.50, Southern Acids and Aeon Credit gained 24 sen each to RM2.45 and RM11.10, Tradewinds Plantations 12 sen to RM5.89, Hup Seng and AirAsia 11 sen each to RM2.36 and RM3.65, while KrisAssets added 10 sen to RM7.10.

Focus was the most actively traded counter with 146.46 million shares done. The stock gained 1.5 sen to 16 sen.

Other actives included Utopia, Ariantec, Permaju, Naim indah Corp, ManagePay, Astral Supreme and HWGB.

Decliners included BAT, The Store, Panasonic, Tahps, KLK, Aeon, Lafarge Malayan Cement, Dutch Lady, PPB and KESM.



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Stocks to watch MAA Group, Petra Energy, Crest Builder, Malaysian Airline, Air Asia, DKLS

KUALA LUMPUR (May 5): The FBM KLCI could take trend higher next week, as the first quarter earnings reporting season kicks off, and as analysts expect better sequential earnings for companies.

Global stocks swooned and crude oil tumbled on Friday after a weak U.S. jobs report and data that suggested a deeper recession across the euro zone than previously thought dented sentiment, according to Reuters.

Major U.S. and European stock indexes fell more than 1 percent, U.S. crude oil slumped about 4 percent and government debt prices jumped after the Labor Department said American employers reduced hiring more than expected in April, it said.

MIDF Research head of equity Syed Muhammed Kifni said with the earnings reporting season for the first quarter 2012 beginning this week, he expects to see an overall sequential improvement in the bottom line figures.

“Both ours and consensus KLCI earnings growth for this year are estimated at around mid-teens, supported by decent organic earnings growth performance as well as absence of lumpy abnormal losses,” he said.

Syed Muhammmed said that despite recent difficulty of the KLCI to sustain itself above the 1,600 points levels, in our opinion, the recent liquidity-driven rally has not yet ended as the local market undercurrent remains positive.

Furthermore, notwithstanding the feeble dynamics in Europe, risk-on mood is still prevalent on Wall Street as attested by its benchmark index which is stealthily approaching the pre-2008 highs, he said.

“This continuing appetite for risk assets may help the markets in this region to also regain their upward momentum. Hence we believe the KLCI will again attempt to knock against the psychological 1,600 points ceiling in the coming days.

“We reiterate both our year-high as well as year-end 2012 KLCI base case targets of 1,670 points and 1,600 points respectively,” he said.

Among the stocks that could be in focus next week are MAA Group Bhd, PETRA ENERGY BHD [], CREST BUILDER HOLDINGS BHD [], MALAYSIAN AIRLINE SYSTEM BHD [], Air Asia Bhd and DKLS INDUSTRIES BHD [].

MAA Group Bhd is selling its wholly-owned security equipment and services unit for RM7 million, a move which will help the financial services entity focus on its core business.

Petra Energy Bhd declared a final tax-exempt dividend (single-tier) of half a per share for the financial year ended Dec 31, 2011 to be paid on July 13 this year.

The founding family of Crest Builder Holdings Bhd raked in proceeds of RM4.1 million from the sale of five million shares or 4% in the CONSTRUCTION [] firm.

Updates to the exchange show that Yong Tiok Chin who is the daughter of founder and managing director Yong Soon Chow had disposed of the shares at 82 sen each on Thursday.

Shares of Malaysian Airline System Bhd and Air Asia Bhd could continue to be in focus next week after the reversal of their share-swap agreement and the resignation of Tan Sri Tony Fernandes and Datuk Kamarudin Meranun from MAS' board.

DKLS Industries Bhd has inked a heads of agreement with the Selangor State Development Corporation (PKNS) to collaborate in the redevelopment of a 15.9-acre area in Petaling Jaya into a mixed development comprising commercial, retail and residential units.

The company said on Friday that the gross development value of the Proposed Redevelopment was estimated at the range of RM1.5 billion.



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KLCI up more than 23 points week-on-week

KUALA LUMPUR (May 4): The FBM KLCI rose 23.24 points week-on-week, and was among the better performers compared with its regional peers on Friday.

The FBM KLCI rose 7.87 points to close at 1,691.04 on Friday, lifted by gains at blue chips including Petronas Dagangan, Tenaga, Genting and AirAsia.

Gainers outpaced losers by 456 to 274, while 352 counters traded unchanged. Volume was 1.33 billion shares valued at RM1.59 billion.

Asian shares were mixed for a second successive day on Friday as another batch of lacklustre U.S. data stoked concerns that the recovery in the world's biggest economy is faltering, according to Reuters.

At the regional markets, the Shanghai Composite Index added 0.49% to 2,452.01, Taiwan’s taiex added 0.54% to 7,700.95, Hong Kong’s Hang Seng Index fell 0.77% to 21,086.00, South Korea’s Kospi lost 0.30% to 1,989.15 and Singapore’s Straits Times Index

Japan’s Nikkei 225 was closed for a national holiday.

Meanwhile, European shares opened lower and industrial commodities like oil and copper were weak on Friday on concerns about the health of the world's biggest economy before a reading on the strength of the U.S. jobs market, said Reuters.

Weekend elections in France and Greece, which could complicate efforts to resolve the euro zone debt crisis, were also weighing on sentiment, leaving the euro steady against the dollar at around $1.3150 and debt markets little changed, it said.

On Bursa Malaysia, Nestle was the top gainer on Friday and rose 40 sen to RM55.90, Allianz, Aeon and Petronas Dagangan added 20 sen each to RM4.75, RM10 and RM19.50 respectively, Coastal Contracts 19 sen to RM2.13, SAM Engineering 18 sen to RM3.20, Tenaga and MBM Resources up 15 sen each to RM6.60 and RM5.24, while Maybulk and Genting rose 14 sen each to RM1.79 and RM10.64.

AirAsia was among the actively traded counters with 14.45 million shares done. The stock added four sen to RM3.64.

Other actives included Ariantec, Glomac, Maybulk, Astral Supreme, Metronic and Jotech.

Decliners on Friday included Knusford, Southern Acids, Cepco, Asia File, Ireka, Takaful, Hoover, Nakamichi, Aeon Credit and Lafarge Malayan Cement.



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AirAsia advances in active trade post share-swap being called off

KUALA LUMPUR (May 4): Shares of Air Asia Bhd continued to see heavy trading on Friday as after the reversal of its share-swap agreement with Malaysian Airlines System Bhd (MAS) and the resignation of Tan Sri Tony Fernandes and Datuk Kamarudin Meranun from MAS' board.

At 4.15pm, shares of Air Asia rose 2 sen to RM3.62 with 12.6 million shares traded in.

Volume traded of the stock has been on the high side since the share-swap reversal announcement on Wednesday,May 2.

On May 3, Air Asia's volume traded at 13.8 million compared to only 1.53 million shares traded on Monday, Apr 30.

Meanwhile, MAS rose 1 sen to RM1.25 with 2.6 million shares traded in on Friday.



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KLCI stays in the black at mid-day, blue chips lead

KUALA LUMPUR (May 4): The FBM KLCI rose higher at the mid-day break on Friday, going against the general trend at most global markets, which remained tepid U.S. stocks fell on Thursday as economic data sent mixed signals on the recovery a day before the April payrolls report.

The FBM KLCI rose 6.48 points to 1,589.65 at 12.3pm, lifted by gains at select blue chips including BAT, AirAsia, Petronas Dagangan and Hong Leong bank.

Gainers outpaced losers by 383 to 216, while 334 counters traded unchanged. Volume was 694.69 million shares valued at RM644.21 million.

The ringgit weakened 0.17% to 3.0378, crude palm oil futures for the third month delivery rose RM24 per tonne to RM3,376, crude oil added 13 cents per barrel to US$102.67 while godl fell 66 cents an ounce to US$1,635.32.

Asian shares fell for a second successive day on Friday as another batch of lacklustre U.S. data stoked concerns that the recovery in the world's biggest economy is faltering, according to Reuters.

The euro was steady after a bumpy session on Thursday, when European Central Bank chief Mario Draghi gave a more upbeat assessment of the region's battered economy, reducing hopes of further monetary stimulus measures in the pipeline, it said.

At the regional markets, Hong Kong’s Hang Seng Index fell 0.73% to 21,094.10, the Shanghai Composite Index shed 0.10% to 2,442.56, Taiwan’s taiex lost 0.48% to 7,696.07, south Korea’s Kospi was down 0.41% to 1,986.90 and singapore’s Straits Times Index fell 0.23% to 2,993.93.

Japan’s Nikkei 225 was closed for a national holiday.

On Bursa Malaysia, BAT jumped RM1.74 to RM56.98, Panasonic gaine 28 sen to RM23.30, Petronas Dagangan and Aeon 20 sen each to RM19.50 and RM10, Hong Leong Bank 18 sen to RM12.44, Maybulk 14 sen to RM1.79, Coastal Contracts 13 sen to RM2.07, whiel MPHB, Hartalega and Orient added 10 sen each to RM2.96, RM7.95 and RM6.78 respectively.

Menwhile, AirAsia, which was among the most actively traded counters, gained seven sen to RM3.67.

Other actives included Ariantec, Maybulk, Astral Supreme, Naim Indah Corp and Benalec.

Decliners this morning included Dutch Lady, Knusford, SAB, Asia File, Takaful, Hoover, LPI Capital, Cepco and Ireka.



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Stocks to watch Fajarbaru, Pharmaniaga, Tasco, Quill Capita, New Hoong Fatt, APFT, MAS, AirAsia

KUALA LUMPUR (May 3): The FBM KLCI could face a struggle to eke out some gains on Friday, as investor sentiment could take a hit by external factors that have plagued global equity markets over the week.

European stocks slipped into negative territory on Thursday after a weaker-than-expected U.S. service sector data cast doubts over the strength of the recovery in the world's biggest economy, according to Reuters.

Most global equity markets trended lower on Thursday after the S&P 500 and the Dow edged lower on Wednesday as data showed that private sector hiring fell far more than expected in April, sparking concerns that Friday's U.S. jobs report will also disappoint investors, according to Reuters.

Among the stocks that could be in focus on Bursa Malaysia on Friday are Fajarbaru, Pharmaniaga, Tasco, Quill Capita, New Hoong Fatt, APFT, MAS and AirAsia.

Fajarbaru Builder Group Bhd has secured a sub-contract worth RM299.84 million to build a power substation from MALAYSIAN RESOURCES CORP []oration Bhd .

The company said on Thursday that its unit Fajarbaru Builder Sdn. Bhd had received a letter of acceptance to build the Kg Kuala Sungai Baru substation and other associated works for the Ampang (AMG) Line Extension project.

PHARMANIAGA BHD [] says first quarter net profit rose 85% from a year earlier as revenue growth mitigated the impact of higher operating cost, besides finance and tax expenses.

In a statement to the exchange, Pharmaniaga said net profit came to RM28.69 million in the quarter ended March 31, 2012 versus RM15.48 million previously as revenue grew 16% to RM446.75 million from RM385.33 million.

The firm said it plans to pay a first interim single-tier dividend of 7.5 sen a share for financial year ending December 31, 2012. Conglomerate BOUSTEAD HOLDINGS BHD [] owns some 72% in Pharmaniaga.

Tasco Bhd net profit for the first quarter ended March 31, 2012 rose 4.6% to RM6.76 million from RM6.46 million a year earlier, due to better margins from its air freight forwarding division arising from urgent export shipments.

The company said on Thursday that its revenue for the quarter edged lower to RM117.89 million from RM118.36 million in 2011.

QUILL CAPITA TRUST [], a commercial and industrial-based real estate investment trust says first quarter net profit rose 5% from a year earlier, helped by higher revenue and lower operating expenses.

In a statement to the exchange, Quill said net profit came to RM8.07 million in the quarter to March 31, 2012 from RM7.68 million previously while revenue was up 2% to RM17.78 million from RM17.51 million.

NEW HOONG FATT HOLDINGS BHD [] net profit for the first quarter ended march 31, 2012 fell 42.1% to RM4.1 million from RM7.08 million a year earlier, due mainly to increased in manufacturing and operating costs as well as higher foreign exchange loss.

The company said on Thursday that its revenue for the quarter edged up 0.6% to RM54.02 million from RM53.71 million in 2011 due to higher demand for export sales.

APFT Bhd’s unit Asia Pacific Flight Training Sdn Bhd (APFTSB), has signed a five-year MPL Services Agreement with Canada-based CAE Inc (CAE) on the Multi-crew Pilot License (MPL) training for AirAsia cadets.

In a statement to Bursa Malaysia on Thursday, A PFT said this was the first and only MPL training in Malaysia.

it said that previous batches of AirAsia CAE MPL cadets were trained in Canada.

Meanwhile, shares of MALAYSIAN AIRLINE SYSTEM BHD [] and AIRASIA BHD [] could extend their gains from Thursday after the airlines said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.



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Select blue chips lift KLCI marginally higher

KUALA LUMPUR (May 3): The FBM KLCI closed higher on Thursday, erasing its earlier losse, lifted by gains at select blue chips including AirAsia, Telekom, AMMB and CIMB.

The stock index added 0.78 of a point to 1,583.17.

Gainers trailed losers by 344 to 390, whiel 325 counters traded unchanged. Volume was 1.29 billion shares valued at RM1.21 billion.

Meanwhile, Asian shares slipped on Thursday and the euro languished near a two-week low after disappointing economic data from both sides of the Atlantic rekindled concerns about the strength of global growth, according to Reuters.

But European stock markets were seen opening stronger, fueled by hopes that a European Central Bank policy meeting later in the session will prepare the ground for further stimulus measures, it said.

At the regional markets, the Shanghai Composite Index edged up 0.07% to 2,440.08, Hong Kong’s Hang Seng index fell 0.28% to 21,249.53, Taiwan’s Taiex lost 0.23% to 7,659.53, South Korea’s Kospi shed 0.20% to 1,995.11 and Singapore’s Straits Times Index down to 3,000.94. Japan’s Nikkei 225 was closed for a national holiday.

On Bursa Malaysia, Knusford was the top gainer and rose 34 sen to RM2.28, Airasia added 27 sen to RM3.60, Panasonic up 22 sen to RM22.92, BAT 20 sen to RM55.24, Country View 19.5 sen to 84 sen, MPHB, Tradewinds PLANTATION []s and Tradewinds added 14 sen each to RM2.86, RM6 and RM9.99 respectively, MBM Resources was up 13 sen to RM5.09 and Permaju was up 12.5 sen to 55.5 sen.

Utopia was the most actively traded counter with 84.11 million shares done. The stock was unchanged at 8 sen.

Other actives included Ariantec, Naim Indah Corp, AirAsia, Metronic, Astral Supreme, Compugates and DayaMaterials.

Meanwhile, the decliners included Genting, BLD Plantations, MAHB, PPB Bank, Shell, Pasdec,Eng Kah and Rexit.



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MAS – AirAsia cooperation should be continued, says Dr M

KUALA TERENGGANU May 3: The cooperation between Malaysia Airlines (MAS) and low-cost carrier AirAsia should be continued for the benefit of both companies, former Prime Minister Tun Dr Mahathir Mohamad said today.

He said that through the cooperation, MAS would be able to learn from AirAsia and vice versa.

"I see people opposing, not the cooperation forged by both, but the manner in which the share swap deal of the airline companies was done. This is what many people protested against.

"So, now, with the share swap having been cancelled, the cooperation should continue as there is much that MAS can learn from AirAsia.

"(AirAsia) Fares are very cheap, sometimes free, but it has been able to provide the service for the past 10 years. Logically, the company should be bankrupt, while MAS, which has received government aid of up to RM3 billion, is still losing money every year," he added.

He was speaking at a media conference after his lecture on 'The Challenges Faced by Muslims Now: Perception and Reality', organised by the Terengganu state government with the cooperation of the Terengganu Strategic Study and Integrity Institute here.

Khazanah Nasional Bhd yesterday announced the cancellation of the share swap deal between MAS and AirAsia after it failed to get the support of stakeholders to continue with the initiative. – Bernama



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KLCI reverses earlier losses at mid-day break

KUALA LUMPUR (May 3): The FBM KLCI managed to reverse some of its earlier losses at the mid-day break on Thursday and edged up, lifted by gains at select blue chips including AirAsia, BAT and RHB Capital.

The FBM KLCI added 0.41 of a point to 1,582.80 at the mid-day break.

Losers outpaced gainers by 314 to 234, while 318 counters traded unchanged. Volume was 779.26 million shares valued at RM479.15 million.

The ringgit weakened 0.14% to 3.0323 versus the greenback, crude palm oil futures for the third month delivery fell RM31 per tonne to RM3,404, crude oil shed 13 cents per barrel to US$105.09 while gold fell US$5.02 an ounce to US$1,648.48.

Meanwhile, Asian shares slipped on Thursday and the euro languished near a 2-week low after disappointing economic data from both sides of the Atlantic rekindled concerns about the strength of global growth.

Commodities and the Australian dollar - all sensitive to growth expectations - also struggled as the data put investors on the defensive and limited appetite for riskier assets.

At the regional markets, Hong Kong’s Hang Seng Index fell 0.5% to 21,203.40, the Shanghai Composite Index shed 0.37% to 2,429.49, Taiwan’s Taiex was down 0.23% top7,659.09, South Korea’s Kospi lost 0.33% to 1,992.46 and Singapore’s Straits Times Index edged down 0.07% to 3,004.14.

On Bursa Malaysia, AirAsia was the top gainer at mid-day and rose 21 sen to RM3.54, Country View was up 19.5 sen to 84 sen, BAT 16 sen to RM55.20, Nestle and Takaful 12 sen each to RM55.50 and RM4.29, NPC 10 sen to RM2.78, Crest Builder 9.5 sen to RM1.02 and RHB Capital nine sen to RM7.50.

Utopia was the most actively traded counter with 59.68 million shares done. The stock fell half a sen to 7.5 sen.

Other actives included Naim Indah Corp, AirAsia, Ariantec, Metronic, Compugates, Daya Materials and JCY.

Decliners in the morning session included Dutch Lady, MAHB< Genting, Carlsberg, Pasdec, Delloyd, Rexit, Shelll and Sarawak PLANTATION []s.



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MAS, AirAsia soar 10% on share-swap termination

KUALA LUMPUR (May 3): Shares of MALAYSIAN AIRLINE SYSTEM BHD [] and AIRASIA BHD [] advanced on Thursday after the airlines said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.

MAS rose 12 sen to RM1.34 before trading lower at RM1.27 at 11.34am with some 6.1 million shares done.

AirAsia which fell as much 4% to RM3.20 earlier, rose 32 sen to RM3.65. The stock was traded at RM3.56 at 11.36am with about seven million shares done.

In separate statements to the exchange, MAS and AirAsia said both firms have agreed to terminate their share swap arrangements. As a result, the domestic airlines said they have signed a supplemental agreement to revise the terms of their collaboration.

This has prompted MAS and AirAsia to sign two memorandums of understanding to define the scope their proposed collaboration. According to both firms, this include an assessment on the feasibility of establishing a joint venture firm which will offer aircraft component maintenance services besides a plan to set up a special purpose vehicle to undertake joint procurement processes.



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KLCI weighed down by US and Europe economic data

KUALA LUMPUR (May 3) : Malaysians stocks fell on Thursday morning in tandem with Asian bourses after US markets finished weaker in overnight trade.

Global investors have responded negatively to fresh updates on slower private-sector hiring in the US and weaker factory output figures from Europe.

At 9.59am, the FBM KLCI fell 2.44 points to 1,579.95. Across the exchange, some 321 million shares worth RM164 million were traded, leading to 155 gainers versus 173 decliners.

Top gainers include HARTALEGA HOLDINGS BHD [] which added 28 sen to RM8.08 while AIRASIA BHD [] rose 14 sen to RM3.47.

Among decliners, DUTCH LADY MILK INDUSTRIES BHD [] was down 40 sen to RM33 while PPB GROUP BHD [] fell 16 sen to RM16.54.

Most actively-traded was Naim Indah Corp Bhd which fell 0.5 sen to 51 sen with some 34 million shares transacted.

Across Asia, Australia’s S&P/ASX 200 added 0.02% to 4,437 points, South Korea’s Kospi fell 0.2% to 1,995.01, while Singapore’s Straits Times was down 0.05% to 3,004.66. The Japan bourse is closed for a public holiday.



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Stocks to watch Unisem, Daya Materials, Opcom, Heitech Padu, Hock Lok Siew Corp

KUALA LUMPUR (May 2): The FBM KLCI could be hard pressed to sustain its gains on Thursday, as early trade in Europe and Wall Street on May 2 pointed to weaker performance at the equity markets as disappointing euro zone data sparked new concerns over the region's fiscal health ahead of domestic economic data.

Markit's Eurozone Manufacturing Purchasing Managers' Index dropped to 45.9 last month from 47.7 in March, marking its lowest reading since June 2009. European shares erased earlier gains and the euro dropped to its lowest level in two weeks against the Japanese yen., according to Reuters.

A slew of announcemnts on Bursa Malaysia, including that of the termination of the share swap deal between MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and AIRASIA BHD [] could spur investor activity, but whether the FBM KLCI can advance will be left to be seen.

Among the stocks that could be in focus are UNISEM (M) BHD [], DAYA MATERIALS BHD [], OPCOM HOLDINGS BHD [], HEITECH PADU BHD [] and Hock Lok Siew Corporation Bhd.

Unisem posted net loss RM13.52 million for the first quarter ended March 31, 2012 compared with net profit RM5.09 million a year earlier.

It said that revenue for the quarter fell to RM256.61 million from RM291.97 million in 2011.

Daya Materials Bhd’s unit Daya CMT Sdn Bhd has secured a CONSTRUCTION [] contract worth RM270 million from Yuk Tung Corporation Sdn Bhd.

Daya said that Daya CMT had been awarded the contract as the principal sub-contractor for the development comprising 3-Blocks of 28-Storey mixed development consisting soho units, office lots, podium car park and basement car park at Jalan Sungai Besi in Kuala Lumpur.

Opcom Holdings Bhd, a fibre-optic cable manufacturer, has secured an RM82 million variation order to an existing RM359 million contract with TELEKOM MALAYSIA BHD [].

Opcom said it had secured the RM359 million fiber-to-the-home contract from Telekom in April 2009. Opcom had in May 2011 secured a two-year extension for the project till April 19, 2013.

Heitech Padu Bhd secured a RM15.2 million job from the national registration department.

Hock Lok Siew Corp said on Wednesday that it had been designated a Practice Note 17 company after triggering the prescribed criterias of the Listing Rules.

Meanwhile, the RM1.1 billion share-swap deal involving beleaguered Malaysian Airline System Bhd (MAS) and AirAsia Bhd has been called off, according to filings to Bursa Malaysia Securities Bhd on Wednesday.

Shares in both MAS and AirAsia were suspended from trading on Wednesday ahead of the announcement, but the airlines have not announced when their respective securities would resume trading.

However, if MAS and AirAsia resume trade on Thursday, investor interest would certainly be high given the nature and magnitude of the original deal that is being called off.

In separate announcements, the two airlines on May 2 said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.

Secondly, the MoU was to establish the broad set of business principles for the establishment of a special purpose vehicle (SPV) by MAS, AirAsia and AAX to improve value for money and increase competitiveness and benefits to customers through procurement synergies by outsourcing to the SPV the procurement processes for identified goods and services in agreed categories



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MAS- AirAsia share swap scrapped

KUALA LUMPUR (May 2): The RM1.1 billion share-swap deal involving beleaguered MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and AIRASIA BHD [] has been called off, according to filings to Bursa Malaysia Securities Bhd on Wednesday.

Shares in both MAS and AirAsia were suspended from trading on Wednesday ahead of the announcement.

In separate announcements, the two airlines said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.

Secondly, the MoU was to establish the broad set of business principles for the establishment of a special purpose vehicle (SPV) by MAS, AirAsia and AAX to improve value for money and increase competitiveness and benefits to customers through procurement synergies by outsourcing to the SPV the procurement processes for identified goods and services in agreed categories.



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MAS, AirAsia share trading to be halted from 9am today

KUALA LUMPUR (May 2): Trading in the securities of Malaysian Arline System Bhd and AIRASIA BHD [] will be halted from 9am on Wednesday at the request of the two airlines pending a material announcement.

Malaysia Airlines was expected to announce the cancellation of plans for a share swap with budget carrier AirAsia.

For more on this, read today’s edition of the Edge Financial Daily’s report on Boards of Khazanah and Tune Air today will make official their decision to abandon the RM1.1 billion share-swap deal involving MAS and AirAsia.



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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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AirAsia, MAS fall, focus on share-swap, oil prices

KUALA LUMPUR (April 25) : AIRASIA BHD [] and MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) shares fell against the backdrop of rising crude oil prices, and possibly, on concerns that the share-swap arrangement between both airlines may be reversed due to opposition from MAS employees.

AirAsia declined as much as 2.3% or eight sen to settle at RM3.33 at lunch break while MAS was down 0.8% to RM1.24 before trading unchanged at midday interval. AirAsia and MAS saw some two million and 600,000 shares done respectively.

AirAsia is the second-largest decliner among the FBM KLCI‘s 30 stocks after diversified group MMC Corp Bhd which fell 3.65% to RM2.64.

Crude oil futures rose as global markets responded positively to improving US corporate earnings and housing sector updates, apart from firm demand for European government bonds.

Crude oil on the New York Mercantile Exchange rose 11 cents to US$103.66 a barrel versus the IntercontinentalExchange’s Brent crude oil which was up 10 cents to US$118.26 a barrel.



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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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RHB Research maintains market perform on AirAsia, FV RM3.72

KUALA LUMPUR (March 28): RHB Research Institute is maintaining its market perform outlook on AirAsia with a fair value of RM3.72.

It said the low-cost carrier raised its fuel surcharge by 30%-50% to offset the constant high jet fuel prices which had been trading at an average of US$136 per barrel in March 2012.

AirAsia expects to recoup an additional US$5 a barrel of the fuel bill with the fuel surcharge hikes.

“The latest fuel surcharge hikes will boost FY12/12-14 by 8%-11%. However, we are keeping our forecasts.

“We are more inclined to see the US$5 barrel recovery in fuel bill with the latest fuel surcharge hikes as an additional US$5 barrel cushion against our jet fuel price assumption of US$125 barrel,” it said.

RHB Research said also if jet fuel prices retreat, there is a fair chance that AirAsia may reduce the fuel surcharge.



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KLCI closes higher, but stays shy of 1,590-level

KUALA LUMPUR (March 27): the FBM KLCI recovered some lost ground and closed higher on Tuesday, in line with the overall improved sentiment at key regional markets.

However, the index stayed shy of breaching the 1,590-level for long.

The FBM KLCI was up 5.12 points to close at 15,88.10, lifted by gains at select blue chips. The index had earlier risen to its intra-day high of ,591.03.

Gainers led losers by 389 to 381, while 337 counters traded unchanged. Volume was 1.94 billion shares valued at RM1.66 billion.

Asian stocks rebounded, with Japan's Nikkei hitting a one-year high, and the dollar struggled on Tuesday after Federal Reserve Chairman Ben Bernanke said ultra-loose monetary policy was still needed to reduce unemployment, according to Reuters

Europe's major equity markets were also poised for gains, with Euro STOXX 50 index futures opening up 0.7 percent, while financial spreadbetters called London's FTSE to start trading 0.2-0.3 percent higher, it said.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.69% to 21,017.13, Japan’s Nikkei 225 gained 2.36% to 10,255.15, South korea’s Kospi was up 1.02% to 2,039.76, Taiwan’s Taiex rose 0.78% to 8,029.46 and Singapore’s Straits Times Index…

On Bursa Malaysia, Dutch Lady was the top gainer and rose 60 sen to RM32, F&N added 24 sen to RM18.50, Petronas Dagangan added 22 sen to RM18.70, Malayan Flour Mills 21 sen to RM4.65 and KLK 20 sen to RM24.06.

Aeon Credit, Takaful and HLFG added 18 sen each to RM8.88, RM2.90 and RM12.30 respectively, while Petronas Gas and Genting PLANTATION []s gained 16 sen each to RM16.90 and RM9.41.

Metronic was the most actively traded counter with 280.1 million shares done. The counter gained four sen to 24.5 sen.

Other actives included Ariantec, Supercomnet, Naim Indah Corp, Focus, Frontken, Oversea Enterprise and TMS.

Among the decliners, Aeon fell 25 sen to RM9.15, Bintulu Port 17 sen to RM6.83, Allianz 12 sen to RM4.70, AirAsia 11 sen to RM3.35, Top Glove 10 sen to RM4.55. P.I.E., TDM, MISC and Sunway fell nine sen each to RM4.81, RM4.77, RM5.29 and RM2.62 respectively.



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