KLCI hovers in negative territory at mid-morning

KUALA LUMPUR (May 9): The FBM KLCI hovered in negative territory at mid-morning on Wednesday in line with the overnight fall at Wall Street and weaker sentiment at regional markets, underpinned by global economic and political worries.

At 10.01am, the FBM KLCI fell 3.03 points to 1,587.57, weighed by select blue chips.

Gainers trailed losers by 132 to 234, while 219 counters traded unchanged. Volume was 237.19 million shares valued at RM17908 million.

Asian shares fell and the euro stayed pressured on Wednesday, as Greece struggled to form a government two days after elections, raising the risk that a hard-won bailout could be nullified, according to Reuters.

BIMB Securities Research in a note Wednesday said the conditions in Europe was ripe for traders to create some volatility in the equity markets and yesterday could be the beginning of the trend.

With the initial focus on Spain and now the political issues in France and Greece, investors may be in for a roller coaster ride this month, it said.

Reacting to the European uncertainty, the Dow Jones Industrial Average sank 76.44 points to 12,932 but off its intra-day low of 12,810, it said.

“Needless to say, European bourses took the brunt of yesterday’s selling as all ended up in a sea of red,” it said.

The research house said regional markets had a mixed session possibly from the weak opening in Europe amid the ongoing consolidation mode.

“Locally, the FBM KLCI rebounded by 5.73 points to just above the immediate 1,590 resistance at 1,590.60.

“For today, it will be interesting to gauge the resilience of investors whether they will all jump into the selling bandwagon. For us, we believe there will be some broad based knee jerk reaction and should pressure the FBM KLCI on the downside,” it said.

On Bursa Malaysia at mid-morning, F&N Fell and Petronas Dagangan fell 14 sen each to RM18.90 and RM19.80, Hong Leong Bank and Genting down 12 sen each to RM12.12 and RM10.54, Sarawak PLANTATION []s 11 sen to RM2.92, Rapid and IJM Corp 10 sen each to RM2.57 and RM5.44, while NPC, MAHB and Ajiya lost eight sen each to RM2.60, RM5.71 and RM1.60 respectively.

Permaju was the most actively traded counter with 25.7 million shares done. The stock rose 3.5 sen to 91 sen.

Other actives included Harvest Court, Naim Inda Corp,Perisai, Sanbumi, Metronic, Compugates, JCY and Komark.

Gainers included KGB, Tasek, Komark, KLK, Mercury, CIMB, SKB Shutters, Multico, Perisai and Permaju.



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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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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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MAHB 1Q profit up 7% year-on-year

KUALA LUMPUR (April 26) : Malaysia Airports Holdings Bhd’s (MAHB) first quarter net profit rose 7% from a year earlier as revenue growth mitigated the impact of higher operating expenses.

In a statement to the exchange on Thursday, 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.

Revenue growth was, mainly, helped by airport operations income which includes revenue from airport CONSTRUCTION [], aviation-service charges, and retail operations, according to MAHB. The company said passenger movements across its facilities during the quarter rose 6.5% from a year earlier.

“The group’s overall passenger traffic growth of 6.5% achieved in the first quarter 2012 was in tandem with the positive growth trend of the Asia Pacific region and globally.

“There is some concern on route cuts announced by our domestic airlines but the gap seemed to have been continuously replaced by foreign carriers,” MAHB said. Based on historical trends and the performance in the first quarter, the firm said it expects to achieve its targeted passenger- traffic growth of 6% to 7% for 2012.



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

KUALA LUMPUR (April 19): Maybank Investmnt Bank Bhd Research has maintained its Buy rating on MALAYSIA AIRPORT HOLDINGS BHD [] (MAHB) at RM5.71 with a target price of RM7.10 and said MAHB's February 2012 passenger traffic growth of 2.3% year-on-year , which brought year-to-date growth to 6.7%, was within the guidance of 6%-7% growth in 2012.

In a note April 19, the reseach house said the February slowdown was expected as the Chinese New Year was in January this year versus February back in 2011.

“Secondly, MAS has cut its system capacity by 10% in February as part of its business turnaround plan.

“We retain our forecast for 6.7% passenger traffic growth in 2012 as it has already taken into account these factors. Maintain BUY with an unchanged MYR7.10 per share DCF-based target price,” it said.



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KLCI closes higher but some pullback expected next week

KUALA LUMPUR (April 6): The FBM KLCI closed higher on Friday, while the few regional markets that were open for trade ended the day in negative territory, as investors stayed on the sidelines ahead of key U.S. jobs data.

China shares ended up 0.2 percent in thin volume on Friday, moving around a key psychological level as investors awaited a slew of economic data next week which could signal possible policy changes, according to Reuters.

The FBM KLCI closed 5.43 points higher at 1,598.87.

Gainers led losers by 457 to 248, while 324 counters traded unchanged. Volume was 1.28 billion shares valued at RM1.14 billion.

At the regional markets, the Shanghai Composite Index added 0.19% to 2,306.55, Taiwan’s Taiex gained 0.87% to 7,706.26, south Korea’s Kospi edged up 0.01% to 2,029.03 while Japan’s Nikkei 225 fell 0.81% to 9,688.45.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said the FBM KLCI was now ripe for a pullback towards a lower sideways range of 1580-1600 level.

“We reckon the equity optimism will take a mild negative turn following a surprised absence of USA stimulus and Spanish revived fiscal concerns with the bond yields climbing to their highest level in five month (Spanish 10-Year bond rose to 5.8%).

“This has stoked concerns regarding the European debt crisis, boosted safe-haven appeal of the USA dollar and weighed on local risk-taking sentiment,” he said.

DR Nazri said he also expects the bullish sentiment to take a pause after the Federal Reserve meeting minutes earlier this week indicated reduced prospects for more quantitative easing.

ON Bursa Malaysia, BAT was the top gainer and added 48 sen to RM55.46, Dutch Lady added 30 sen to RM35.80, Tradewinds PLANTATION []s and BLD Plantations rose 25 sen each to RM5.44 and RM9.40, Tradewinds up 18 sen to RM9.97, TDM 17 sen to RM4.95, SMPC and Naim Holdings 15 sen each to RM2.12 and RM2.05, Mulpha 14 sen to 60 sen and MAHB 13 sen to RM5.89.

Naim Indah Corp was the most actively traded counter with 149.52 million shares done. The stock rose 8.5 sen to 57 sen.

Other actives included Metronic, SuperComNet, Ariantec, CSL, Focus, Tiger Synergy, Green Ocean, Ingenuity Solutions and TMS.

Decliners included F&N, Batu Kawan, Shell, HUp Seng, Hong Leong Industries, Takaful, HDBS, Aeon and Tiong Nam Logistics.



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KLCI extends loss for second day running

KUALA LUMPUR (APRIL 50): The FBNM KLCI extended its losses for a second day running while most global markets either pared down their losses or reversed earlier retreats on bargain hunting activities.

The FBM KLCI closed 5.83 points lower at 1,593.44, paring down its losses from the earlier intra-day low of 1,591.85.

Losers edged gainers by 352 to 342, while 317 counters traded unchanged. Volume was 1.24 billion share valued at RM1.22 billion.

At the Asian markets, Chinese shares jumped 1.7% the biggest single-day rise since early February led by non-banking financials after Premier Wen Jiabao said the monopoly formed by the country's big banks needed to be broken to get money flowing to cash-starved private firms, according to Reuters.

Hong Kong shares ended a holiday-shortened week weaker on Thursday, dragged by the Chinese financial sector as investors took profit on the final trading day before a four-day holiday weekend and ahead of US jobs data on Friday, it said.

Meanwhile, European shares eked out modest gains on Thursday with investors looking for bargains after three weeks of losses but sentiment remained fragile after lower demand at a Spanish auction rekindled funding concerns for weaker euro zone countries, said Reuters.

At the regional markets, the Shanghai Composite Index rose 1.74% to 2,302.24, South Korea’s Kospi addd 0.50% to 2,028.77 and Singapore’s Straits Times Index xx

Meanwhile, Hong Kong’s Hang Seng Index lost 0.95% to 20,593.00, Japan’s Nikkei fell 0.53% to 9,767.61 and Taiwan’s Taiex fell 1.56% to 7,639.82.

ON Bursa Malaysia, BAT was the top loser and fell 60 sen to RM54.98, GAB lost 20 sen to RM13, Aeon Credit down 15 sen to RM8.74, Milux, F&N and Genting fell 12 sen each to RM1.28, RM18.88 and RM10.96 respectively, MAHB down 11 sen to RM5.76 while Amway fell 10 sen to RM9.80.

Takaful was the top gainer and added 48 sen to RM3.70, Tradewinds PLANTATION []s added 25 sen to RM5.19, Cepco up 24 sen to RM1.79, Tradewinds added 19 sen to RM9.79, Ta Ann 18 sen to RM6.38, Jaya Tiasa 17 sen to RM8.93, Inno 14 sen to RM1.64, Y&G 13 sen to 73 sen, while Shell and Sin Heng Chan added 12 sen each to RM10.30 and RM1.12.

Metronic was the most actively traded counter with 124,92 million shares done. The stock added 2.5 sen to 17,5 sen.

Other actives included Naim Indah Corp, Ariantec, Focus, Carotech, SupertComNet, Ingenuity Solutions, JCY and Key West.



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Bashir Ahmad hints at retiring from MAHB

SEPANG, (March 29): Malaysia Airports Holdings Bhd (MAHB) managing director Tan Sri Bashir Ahmad Abdul Majid today hinted at retiring from the company.

"I think I want to have a rest," he told reporters after the company's 13th annual general meeting here.

"I've highlighted to the board that my current contract will end in June. I've indicated the board that they should start looking at the succession plan.

"It'll also be good for me to take a rest after having served 40 years in the industry and nine years with MAHB... I want to do something else," he said.

Bashir said it was up to the government to decide on the succession plan.

MAHB Chairman Tan Sri Datuk Dr Aris Othman, however, wanted Bashir to stay until the completion of KLIA2.

"It'll be good the managing director can stay until KLIA2 is complete because there is continuity issue. We leave it to the government to decide," he said.

KLIA2 is expected to be ready for operations in April next year.

Bashir, 62, was first appointed to the MAHB board in June 2003. His contract was extended for another two years in 2010.

He was Aviation Advisor to the Transport Ministry in 2001 and has held various senior positions in MALAYSIAN AIRLINE SYSTEM BHD [], such as Director of Corporate Planning, Commercial Director, Senior Vice-President Commercial and Executive Vice-President Airline. - Bernama



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KLCI ends week on positive note

KUALA LUMPUR (March 23): The FBM KLCI ended the week on a positive note, lifted by gains at select blue chips including Bat, Genting and Petronas Gas, bucking the regional markets

The KLCI closed 2.59 points higher at 1,585.83 but the broader market showed some weakness as losers beat gainers 520 to 282, while 317 counters traded unchanged. Volume was 2.0 billion shares valued RM1.41 billion.

Crude palm oil futures for the third month delivery rose RM80 per tonne to RM,3,422.

Meanwhile, world stocks held steady below this week's eight-month peak on Friday while the dollar fell broadly as concerns about growth in China and the euro zone and a renewed focus on sovereign debt problems in Italy and Spain kept investors cautious, according to Reuters.

At the regional markets, the Hong Kong Hang Seng Index fell 1.11% to 20,668.80, Japan’s Nikkei 225 lost 1.14% to 10,011.47, the Shanghai Composite Index fell 1.10% to 2,349.54, while South Korea’s Kospi gained 0.04% to 2,026.83 and Taiwan’s Taiex rose 0.21% to 8,076.61.

On Bursa Malaysia, Jaya Tiasa was up 61 sen to RM8.30, BAT 50 sen to RM53.80, Dutch Lady up 38 sen to RM30.98, Genting 24 sen to RM11, Chin Teck and MAHB up 20 sen each to RM9.30 and RM5.97, Petronas Gas 18 sen to RM16.70, Lipo 16 sen to RM1.20 and Lafarge Malayan Cement 14 sen to RM7.20.

Metronic was the most actively traded counter with 181.72 million shares done. The stock fell 4.5 sen to 21 sen.

Other actives included Ingenuity Solutions, Trinity, Ariantec, SAAG, Naim Indah Corp, Flonic, Astral Supreme and JCY.

Decliners on Friday included Ta Win Holdings, WSR shares and warrants, Kulim, S P Setia, Tasek, Milux, Mercury and Deleum.



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FBM KLCI falls in morning trade on China growth concerns

KUALA LUMPUR (March 21) : Malaysians stocks fell on Wednesday morning in tandem with Asian markets due to China’s economic growth concerns. These include costlier retail energy prices in China and an anticipated weaker demand in the world’s second largest economy for raw materials such as iron ore, the primary feed stock for steel manufacturing.

Analysts said the Malaysian equities barometer FBM KLCI is expected to consolidate in the near term and the spotlight will now be directed at companies with smaller market capitalisation.

“Stocks should extend consolidation in the near-term, with trading activity focused on ACE market, small-caps and penny stocks while blue chips maintain their range-bound trading pattern,” TA Securities Holdings Bhd wrote in a note on Wednesday.

In Malaysia, the 30-stock FBM KLCI fell 1.6 points to 1,576.02 at 9.26am with some 273 million shares worth RM81million traded. There were 109 gainers versus 148 decliners while 178 stocks were unchanged.

Top gainers across Bursa Malaysia include Petrol One Resources Bhd which added 20 sen to RM1.08 while Malaysia Airports Holdings Bhd was up eight sen to RM5.68.

Decliners include HONG LEONG FINANCIAL GROUP BHD [] which fell 12 sen to RM11.88 while Genting PLANTATION []s Bhd was down 11 sen to RM9.24.

Most active was INGENUITY SOLUTIONS BHD [] which added three sen to 14 sen with some 58 million shares done.

Asian stock benchmarks declined. Japan’s Nikkei 225 fell 0.21% to 10,120.57 points, Australia’s S&P/ASX 200 was down 0.32% to 4,261.4, while South Korea’s Kospi lost 0.42% to 2,033.5.



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Stocks to watch: Pantech, MISC, EngTek, Johore Tin, MAHB

KUALA LUMPUR (March 9): Malaysian stocks could take the cue from positive sentiment across global markets on Friday as investors pinned their hopes that Greece’s sovereign debt woes will be contained. Markets could also find support from the anticipation of better employment numbers in the US.

Private holders of Greek government bonds have until Thursday night (March 8) to voluntarily swap their bonds for new ones. The swap is vital to help Greece to obtain bailout funds, without which the country may default on its debt obligations this month.

Reuters reported that as of Wednesday, major banks and pension funds, accounting some 40% of Greece's outstanding bonds, has participated the in the swap, raising hopes that the country could avert a default. US policymakers are expected to announce on Friday, a rise of 210,000 jobs in the country’s non-farm payrolls. This could boost sentiment among Asian exporting nations.

Japan stole the limelight on Thursday when it announced that its gross domestic product contracted by an annualized 0.4%, less than the 2.3% contraction estimated earlier.

Key regional markets racked up gains of up to more than 2% on Thursday, as investors’ sentiment was boosted by hopes that Greece could avert a default and positive news on the US economy.

However, the FBM KLCI lagged the regional markets and managed to close up only 3.53 points or 0.22% to 1,578.36, after falling 15.08 points – the worst loss for this year – on Wednesday

Stocks to watch on Friday include PANTECH GROUP HOLDINGS BHD [], MISC BHD [], ENG TEKNOLOGI HOLDINGS BHD [], JOHORE TIN BHD [], and Malaysia Airports Holdings Bhd (MAHB)

Pantech, a pipes, fittings and flow controls solutions provider, has acquired the entire stake in UK-based Nautic Steels (Holdings) Ltd for GBP9.5 million or RM45.46 million. Pantech said on Thursday the acquisition will help the company expand its geographical presence and product range. Pantech shares rose 1.5 sen to close at 54 sen.

Moody's Investors Service had on Thursday downgraded credit ratings of MISC Bhd to Baa2 from Baa1. The outlook on the ratings remains negative. According to Moody’s, the downgrade reflects MISC’s weaker earnings amid excess capacity which could stifle the shipping firm’s profitability.

Moody’s is also mindful of MISC’s substantial capital needs requiring additional debt funding, which will lead to higher debt leverage and negative cash flow in the short to medium term. MISC shares closed five sen down to RM5.32

Meanwhile, founders and major shareholders of Eng Teknologi Holdings Bhd who are in the midst of privatising the hard disk drive component maker, say they are still in talks with financiers on the funding dynamics for the acquisition, and that the outcome could result in a lower offer price for the proposed takeover. Eng Teknologi finished at RM1.78, down one sen.

Meanwhile, OSK Research said Johore Tin shares are trading at attractive valuations with a low market capitalisation of RM75.6 million, hence, the possibility of the company being an acquisition target. OSK maintained its buy call for Johore Tin with a fair value of RM1.51. Johore Tin added six sen to RM1.14.

Malaysia Airports Holdings Bhd (MAHB) has fixed the price of its recently announced private placement of up to110 million new shares at RM5.60. This translates into gross proceeds of RM616 million, MAHB said MAHB shares declined three sen to RM5.62.



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Flash: MAHB to raise RM616m from private placement

KUALA LUMPUR (March 8) : Malaysia Airports Holdings Bhd (MAHB) has fixed the price of its recently announced private placement of up to110 million new shares at RM5.60. This translates into gross proceeds of RM616 million, MAHB told the stock exchange on Thursday.

Gross proceeds from the private placement will partly finance the additional capital expenditure for the enhancement work within the new low cost carrier terminal at Kuala Lumpur International Airport, MAHB said.

According to the airport operator, the RM5.60 issue price for the placement shares is an estimated 2.4% discount to to the five-day volume weighted average market price of MAHB shares up to Wednesday of RM5.738 and a discount of approximately 0.9% to the closing price of RM5.65 on that day.

MAHB share price ended the morning session at RM5.63.

MAHB said book-building for its private placement has been completed and had drawn interest from domestic and foreign institutional investors.

Maybank Investment Bank and JPMorgan Securities (Malaysia) Sdn Bhd acted as joint placement agents for the private placement.



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Stocks to watch: SapuraCrest, Dijaya, HSL, Kimlun

KUALA LUMPUR (March 7): Stocks on Bursa Malaysia may slip on Wednesday in line with the cautious global and regional markets as worries about slower growth cast a pall of gloom over investors’ sentiment.

Key regional markets posted losses of between 0.63% and 2.16% as riskier assets bore the brunt of fears that the global growth outlook is darkening and that Greece may not be able to complete a major debt restructuring deal.

Reuters reported China's lowering of its economic growth target and data pointing to Europe possibly slipping back into recession have slowly eroded the optimism on global markets generated by the European Central Bank's huge injection of loans to banks since December.

On Bursa Malaysia, late buying helped the FBM KLCI extend its gains but whether it can be sustained on Wednesday remains to be seen due to external worries.

On Tuesday, the KLCI closed 0.69 of a point higher to 1,589.91. Turnover was 1.29 billion shares valued at RM1.73 billion. The broader market reflected the cautious sentiment, with 519 decliners to 257 advancers while 315 stocks were unchanged.

Among the stocks to watch on Wednesday are SAPURACREST PETROLEUM BHD [], DIJAYA CORPORATION BHD [], HOCK SENG LEE BHD [], Kimlun Corp Bhd and Malaysia Airports Holdings Bhd (MAHB).

SapuraCrest Petroleum secured a US$54 million contract from Petronas Carigali Sdn Bhd to provide a tender rig including a mobilisation fee.

The contract was for 12 months starting April 1 with an option to extend for another 12 months.

Dijaya resumes trading after a two-day suspension for a corporate exercise. Dijaya is acquiring 40 PROPERTIES [] owned by its single-largest shareholder Tan Sri Danny Tan for RM948.7 million.

The purchase will be funded with a cash portion of RM250 million and the balance via the issuance of redeemable convertible unsecured loan stock (RCULS), with a staggered conversion price range of RM1.30 to RM2.50 over a 10-year period.

Upon completion of the proposed amalgamation exercise, the land bank will increase to 870 acres and the gross development value will increase to RM37 billion.

Hock Seng Lee Bhd plans to undertake a mixed commercial and residential property project in Bandar Samariang, Kuching with an estimated gross development value of RM700 million.

Hock Seng Lee said the project would be on 275.5 acres of land which it was acquiring from Projek Bandar Samariang Sdn Bhd for RM25.54 million.

RHB Research Institute said it was less enthusiastic on CONSTRUCTION [] stocks as it believed their share price performance is likely to be muted over the next six to 12 months as the market begins to price in a higher risk premium for construction stocks ahead of the nation’s general election that will have to be held by March 2013.

However, the research house said Hock Seng Lee would be buoyed by: (1) Projects under Sarawak Corridor of Renewable Energy (SCORE); (2) Sustained high margins given limited competition from only a small pool of Sarawak-based Unit Pendaftaran Kontraktor Negeri Sarawak (UPK) registered contractors for most public jobs in Sarawak; (3) An outstanding construction orderbook of RM1.1 billion; and (4) An added downside protection to its share price by virtue of a strong balance sheet with a net cash of RM183.7 million or 31.5sen a share as at Dec 31, 2011.

“Indicative fair value is RM1.90 based on 12 times FY12/12 EPS, in line with our one-year forward target PER for the construction sector of 10-14 times,” RHB Research.

Kimlun’s estimated outstanding book order has increased to about RM1.50 billion after it secured a RM68.29 million housing project in Johor Baru.

Its unit Kimlun Sdn Bhd had accepted a letter of award from UNITED MALAYAN LAND BHD []’s subsidiary Dynasty View Sdn Bhd to construct apartments and ancillary buildings in Johor Baru.

Meanwhile, MAHB’s franked dividend of up to 14.14 sen per ordinary share less income tax of 25% amounting to RM116.64 million will go ex on April 9 and the entitlement date is April 12.



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Malaysia Airports: Passenger traffic up 11pc

Malaysia Airports Holdings Bhd (MAHB) said today that the January passenger volume at its airports grew 11 per cent compared with January last year.

International passenger movements increased by eight per cent while domestic passenger movement was up 13.9 per cent, MAHB said in a filing to Bursa Malaysia.

Apart from the economic and political fundamentals, growth was also partly driven by Chinese New Year festive season.

Apart from Lion Air of Indonesia recommencing its operations at KLIA, AirAsia, Firefly and a number of foreign airlines increased their frequencies at the airports operated by the group.

"The largest growth in international passengers at KLIA was recorded by foreign carriers, which grew 19.8 per cent year-on-year," it said.

Most of airports operated by the group recorded double-digit growth in domestic and international movements.

Cargo movements, on the other hand, continued to decline in tandem with global and regional trade. The unpredictable economic condition in Europe and the United States will continue to be a challenge for the cargo sector, it said.

Total aircraft movements at MAHB's airports increased by 5.2 per cent. International and domestic aircraft rose by 4.1 per cent and 5.8 per cent, respectively, it added. -- Bernama



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Market mixed midday, concerns over high oil price

KUALA LUMPUR (Feb 27): Blue chips were higher at midday on Monday, buoyed by CIMB and Telekom but the broader market was mixed as investors’ sentiment was cautious about the impact of higher oil prices on the global economy.

The FBM KLCI rose 2.66 points to 1,561.43. Turnover was 851.34 million shares valued at RM730.13 million. There were 340 gainers, 330 losers and 310 stocks unchanged.

Brent crude eased slightly but stayed around 10-month highs above US$125 per barrel amid escalating tension over Iran's disputed nuclear programme, according to Reuters. Investors concerns were whether it could break through US$130.

US light crude oil fell 40 cents to US$109.37. Crude palm oil prices for third-month delivery rose RM20 to RM3,296 per tonne. The ringgit weakened against the US dollar to 3.0162.

Key regional markets which fell included Japan’s Nikkei 225, South Korea’s Kospi and Singapore’s Straits Times – three countries which are heavily dependent on imported crude oil.

At Bursa Malaysia, Dutch Lady rose RM1.70 to RM27.50 and Carlsberg 35 sen to RM9.80 while Guinness Anchor added 16 sen to RM9.10. Among PLANTATION []s, Batu Kawan added 24 sen to RM18.80 and Chin Tek 15 sen to RM9.10.

CIMB added eight sen to RM7.14, pushing up the KLCI by 1.41 points, Telekom added seven sen to RM5.15, nudging the KLCI up 0.59 of a point while AMMB’s six sen gain to RM6.09 pushed the index up by 0.42 of a point. RHB Capital rose 22 sen to RM7.88.

Naim Indah Corp was the most active with 99.48 million shares done, It added 3.5 sen to 55 sen. China Stationery rose 10 sen to RM1.20.

MBM Resources was the top loser, down 20 sen to RM4.42 on profit taking and also concerns about earnings per share dilution from its proposed rights issue.

BAT, SOP and MAHB lost 10 sen each to RM52.46, RM6.15 and RM5.70 respectively. Latexx fell 12 sen to RM1.56 and the warrants 10 sen to RM1.18.



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MAHB to call for second KLIA2 outlet tender

Malaysia Airports Holdings Bhd (MAHB) will be calling for a second tender briefing for KLIA2 involving 39 lots comprising retail, F&B and services categories on Feb 29 and March 6 respectively, at the Pan Pacific Hotel KLIA.

Tender documents can be purchased from Feb 29-March 27. The tender submission deadline for the lots is 3.00pm on Apr 3.

MAHB senior general manager, Commercial Services, Faizah Khairuddin said the concessionaires for 225 lots at the KLIA2 would be announced by July this year.

"Everything has to be ready for operations by April 2013," she told reporters today. Faizah said there would be three phases of the tender briefing, with the first having involved 27 outlets.

KLIA2 has a total retail space of 35,200 sq m on offer. -- Bernama



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Stocks to watch: AFG, Maybank, Tradewinds Plant, KrisAssets

KUALA LUMPUR (Feb 22): With the corporate results season for the October-December in full swing until Feb 29, they will provide the leads for investors.

So far the banks and PLANTATION []s have been reporting firm set of earnings, based on the recent results, though there had been some writebacks.

Among the stocks to watch are ALLIANCE FINANCIAL GROUP BHD [] (AFG), MALAYAN BANKING BHD [], Tradewinds Plantations Bhd and TH PLANTATIONS BHD [].

Also in focus could be QL RESOURCES BHD [], KRISASSETS HOLDINGS BHD [], Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE), Malaysia Airports Holdings Bhd (MAHB), TEBRAU TEGUH BHD [] and ENG TEKNOLOGI HOLDINGS BHD [].

AFG posted net profit of RM121.29 million in the third quarter ended Dec 31, 2011, up 9% from the RM111.26 million, underpinned by growth in interest income due to the expansion in loans.

Its revenue increased by 9.2% to RM311.43 million from RM284.98 million. Earnings per share were 7.90 sen compared with 7.30 sen.

AFG said for the nine months ended Dec 31, 2011, the earnings rose 14.6% to RM371.80 million from RM324.27 million while it recorded a 9% increase in revenue of RM935.80 million from RM858.18 million.

Maybank has proposed to establish a subordinated programme of up to RM7 billion in nominal value. The net proceeds from the issuance of the subordinated notes will be utilised to fund Maybank’s working capital, general banking and other corporate purposes.

Tradewinds Plantations’ earnings increased 17.5% to RM97.75 million in the fourth quarter ended Dec 31, 2011 from RM83.33 million a year ago, boosted by an increase in its palm products production.

Its revenue soared 174% to RM804.23 million from RM293.45 million.

For the year ended Dec 31, 2011, its net profit increased 79.9% to RM335.46 million from RM186.40 million. Revenue rose 86.8% to RM1.70 billion from RM909.13 million.

TH Plantations recorded a 11.3% fall in profits to RM37.71 million in the fourth quarter ended Dec 31, 2011 from RM42.52 million a year ago, due to maintenance carried out during the quarter.

Its revenue increased by 1.99% to RM130.09 million from RM128.53 million. It proposed dividend per share of 12.50 sen.

For the year ended Dec 31, 2011, net profit increased 39.5% to RM124.83 million from RM89.48 million. Revenue rose 18.8% to RM434.86 million to RM365.97 million.

QL Resources' net profit increased by 3.8% to RM34.42 million in the fourth quarter ended Dec 31, 2011 from RM33.14 million a year ago, due to increased sales in its marine product manufacturing arm, palm oil activities and livestock farming. Its revenue increased 10.6% to RM498.96 million from RM450.95 million a year ago.

KrisAssets said the market value of its two malls -- Mid Valley Megamall and The Gardens Mall in Kuala Lumpur – have been revalued at RM3.290 billion as at Dec 31, 2011. It said this was RM470 million above the valuation as at Sept 30 of RM2.82 billion.

MMHE’s earnings fell 65.4% to RM46.35 million in the third quarter ended Dec 31, 2011 from RM134.15 million a year ago. Its revenue declined 45.6% to RM716.15 million from RM1.316 billion a year ago.

For the nine months, its earnings fell 36.1% to RM205.60 million from RM322.11 million in the previous corresponding period. Its revenue declined 39.1% to RM2.137 billion from RM3.512 billion.

MAHB’s earnings were just up 0.8% to RM122.88 million in the fourth quarter ended Dec 31, 2011 from RM121.91 million a year ago. Its revenue increased by 2% to RM837.38 million from RM820.60 million.

For the financial year ended Dec 31, 2011, its earnings rose 26.6% to RM401.11 million from RM316.78 million. Its revenue increased 11.6% to RM2.754 billion from RM2.468 billion.

Tebrau Teguh reported net losses of RM1.13 million for the fourth quarter ended Dec 31, 2011 due to higher operating expenses. It was also in the red with net loss of RM212,000 a year ago.

For FY11, it was still profitable, with net profit of RM2.58 million, down by 29% from RM3.63 million in FY10. Revenue fell 37.3% to RM113.41 million from RM180.97 million.

Eng Teknologi was in the red for the fourth quarter ended Dec 31, 2011 and for the financial year with net losses of RM51.81 million, and RM42.90 million. The manufacturer of components for hard disk drives said it wasimpacted by the severe floods in Thailand last year.



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Flash: MAHB 4Q net profit up 0.8% to RM122m, FY11 at RM401m

KUALA LUMPUR (Feb 21): Malaysia Airports Holdings Bhd (MAHB) earnings were just up 0.8% to RM122.88 million in the fourth quarter ended Dec 31, 2011 from RM121.91 million a year ago.

It said on Tuesday its revenue increased by 2% to RM837.38 million from RM820.60 million. Earnings per share were 11.17 sen compared with 11.08 sen.

For the financial year ended Dec 31, 2011, its earnings rose 26.6% to RM401.11 million from RM316.78 million. Its revenue increased 11.6% to RM2.754 billion from RM2.468 billion.



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Malaysia Airports Q4 profit rises to RM122.9m

Malaysia Airports Holdings Bhd said fourth-quarter profit rose to RM122.9 million from RM121.9 million in the same period a year earlier.

Revenue slipped to RM837.4 million from RM820.6 million, the airport operator said in a Kuala Lumpur stock exchange filing today. -- Bloomberg



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HDBSVR: KLCI could extend slide after weak Wall Street

KUALA LUMPUR (Jan 31): HwangDBS Vickers Research said the weaker overnight close on Wall Street would weigh on regional markets including Bursa Malaysia.

It said on Tuesday the FBM KLCI could extend its slide. The benchmark index – which tumbled 7.4 points on Monday – may make its way towards the psychological support level of 1,500 ahead, it said.

On Wall Street, major U.S. equity indices were down between 0.1% and 0.3% amid concerns of slow progress in Greece’s debt negotiations.

HDBSVR said in terms of news flows, Bank Negara Malaysia is scheduled to hold its monetary policy committee meeting on Tuesday evening, with expectations for the policymakers to keep interest rates unchanged.

On the corporate front, of interest will be stocks including Malaysia Airports Holdings, which has proposed to raise funds via a private placement exercise of up to 110 million new shares (for gross proceeds of approximately RM598 million).

In Tenaga Nasional, its CEO indicated that he would be quitting when his contract ends in June

MALAYSIAN PACIFIC INDUSTRIES [] reported net loss of RM16 million in the October-December quarter, while its share price jumped 34% over the last two weeks.



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