KLCI retreats for second day, but pares down losses to stay above 1,590 at mid-day

KUALA LUMPUR (April 5): The FBM KLCI retreated for a second day on Thursday, in line with the weaker overnight close at most global markets as European debt woes stung risk appetite across the board.

At the mid-day break, the FBM KLCI was down 5.86 points to 1,593.41. The index had earlier slipped to its intra-morning low of 1,591.85.

Losers led gainers by 333 to 170, while 351 counters traded unchanged. Volume was 589.37 million shared valued at RM388.82 million.

The ringgit was flat at 3.0650 versus the US dolar; crude palm oil futures for the third month delivery fell RM6 per tonne to RM3,514, crude oil added 76 US cents per barrel to US102.23 while gold gained US$2.60 an ounce to US$1,623.38.

Asian shares fell on Thursday after a weak Spanish bond sale heightened concerns about funding difficulties for weaker eurozone countries, further undermining sentiment hurt by fading expectations of more stimulus from the US Federal Reserve, according to Reuters.

MSCI's broadest index of Asia Pacific shares outside Japan fell for a second straight session, easing as much as 1.3% to a four-week low, while Japan's Nikkei average fell 0.9%, also to a four-week low, after putting in its worst performance in five months a day earlier, it said.

At the regional markets, Japan’s Nikkei 225 fell 1.04% to 9,718.14, Hong Kong’s Hang Seng Index lost 1.09% to 20,564.30, the Shanghai Composite Index fell 1.37% to 2,293.89, Taiwan’s taiex fell 1.7% to 7,628.59, South Korea’s Kospi shed 0.21% to 2,014.44 and Singapore’s Straits Times Index shed 0.05% to 2,986.40.

On Bursa Malaysia, F&N was the top loser in the morning session and fell 26 sen to RM18.74, Sarawak OIL Palms and Genting fell 12 sen each to RM6.69 and RM12.96, Milux fell 10 sen to RM1.30, SHH, Metrod and Aeon Credit down nine sen each to 23 sen, RM1.91 and RM8.80, while Amway lost eight sen to RM9.82.

Among the gainers, Jaya Tiasa rose 24 sen to RM9, Tradewinds PLANTATION []s added eight sen to RM5.02, APB 7.5 sen to RM1, Ipmuda up seven sen to 77 sen, BHIC and Tecnic added six sen each to RM3.34 and RM3.98, while Tiong Nam Logistics and Takaful rose five sen each to RM1.03 and RM3.27.

Metronic was the most actively traded counter with 82.75 million shares done. The stock gained 1.5 sen to 16.5 sen.

Other actives included Ariantec, Naim Indah Corp, Tiger Synergy, SuperComnet, Ingenuity Solutions Focus, key West and Kurnia Asia.



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Malaysian shares down on European debt concerns

KUALA LUMPUR (April 5) : Malaysian shares fell on Thursday morning in tandem with Asian markets following a weaker overnight close across US and European bourses. Global markets had reacted negatively to fresh updates from Europe where Spain’s government bond auction was not well received.

This has raised concerns on the sustainability of European economies which are contending with their sovereign debt woes.

Malaysia’s FBM KLCI fell 5.83 points to 1,593.44 as at 10am with some 178 million shares worth RM89 million changing hands. There were 85 gainers versus 250 declining stocks.

Top gainers EKOVEST BHD [] added 17 sen to RM2.76 while BOUSTEAD HEAVY INDUSTRIES CORP [] Bhd was up six sen to RM3.34.

Decliners GENTING BHD [] fell 14 sen to RM10.94 while SMPC Corp Bhd was down 13 sen to RM1.92.

Most active was METRONIC GLOBAL BHD [] which added 0.5 sen to 15.5 sen with some 15 million shares done.

Among Asian equity benchmarks, Japan’s Nikkei 225 fell 1.05% to 9,716.99 points while Australia’s S&P / ASX 200 declined by a similar quantum to 4,288.4



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BHIC earning down 67% to RM3.74m on weaker heavy engineering biz

KUALA LUMPUR (Feb 23): BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd’s earnings fell 67.5% to RM3.74 million in the fourth quarter ended Dec 31,2011, from RM11.4 million a year ago, weighed down by its heavy engineering segment.

It said on Thursday that revenue decreased 31.6% to RM156.66 million from RM229.20 million. Earnings per share were 1.51 sen compared to 4.60 sen last year.

BHIC said the lower revenue was due to the weaker performance of its heavy engineering segment, specifically relating to maintenance, repair and overhaul (MPO) jobs which form the bulk of the subsidiaries' activities.

It also cited the segments’ smaller turnover, commercial shipbuilding losses, higher finance charges and a lower share of profit from its associates, as causes for the lower earnings.

For the financial year ended Dec 31, 2011, net profit fell 81.7% to RM12.78 million from RM69.80 million. Revenue decreased by 16.3% to RM544.13 million from RM649.79 million.



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KLCI starts year of the Dragon in the red as banks, blue chips weigh

KUALA LUMPUR (Jan 25): The FBM KLCI reversed its earlier gains and closed lower on its first trading day of the Lunar year of the Dragon, weighed by losses at key blue chips including banking and Petronas-linked stocks.

The FBM KLCI shed 2.90 points to 1,519.76, as some investors are still on extended post-Chinese New Year holidays.

Gainers led losers by 389 to 315, while 296 counters traded unchanged. Volume was 1.34 billion shares valued at RM1.54 billion.

At the regional markets, Japan’s Nikkei 225 was up 1.12% to 8,883.69, Australia’s S&P/ASX 200 Index rose 1% to 4,329.10, South Korea’s Kospi added 0.12% to 1,952.23 and Singapore’s Straits Times Index rose 1.48% to 2,891.64.

The China, Hong Kong and Taiwan markets remained closed for the Chinese New Year holidays.

Meanwhile, European shares were lower in early trade on Wednesday, weighed by the tech sector after a sharp post-results decline for Ericsson, according to Reuters.

The mobile telecoms network gear maker sank 14% after its fourth quarter earnings came in well below forecast. That compared with more bullish results from U.S. peer Apple overnight, it said.

On Bursa Malaysia, CIMB led the losses at banking stocks and fell 12 sen to RM6.99; Maybank and Affin lost six sen each to RM8.20 and RM3.16, AMMB five sen to RM5.79, while AFG and RHB Capital shed two sen each to RM3.87 and RM7.27.

Petronas Dagangan fell 10 sen to RM17.50, Petronas Chemicals down eight sen to RM6.60 and Petronas Gas shed four sen to RM15.20.

Other decliners included Tahps, Dutch Lady, Harvest Court, LPI Capital, Toyo Ink and KESM.

Among the gainers, BAT rose 50 sen to RM50, KLK 42 sen to RM25.90, MPI 39 sen to RM3.67, Tradewinds PLANTATION []s and Malayan Flour Mills 27 sen each to RM4.53 and RM8.07, BHIC 23 sen to RM3.80, Fima Corp 21 sen to RM6.25, Hong Leong Bank 20 sen to RM11.30 and DKSH 18 sen to RM2.16.

Hibiscus, which was the most actively trade counter, was issued with an unusual market activity query.

Hibiscus rose 32 sen to RM1.52 with 53.5 million shares done while its warrants added 14.5 sen to 85 sen with 176.11 million units traded.

Other actives included DBE Gurney, JCY, Hubline, Maybulk, Compugates and CIMB.



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KLCI slips at mid-day break, blue chips weigh

KUALA LUMPUR (Jan 25): The FBM KLCI slipped into negative territory at the mid-day break on Wednesday, weighed by losses at key blue chips including CIMB, Genting and Petronas-linked stocks.

At 12.30pm, the FBM KLCI fell 2.37 points to 1,520.29.

Losers overtook gainers by 305 to 270, while 243 counters traded unchanged. Volume was 502.97 million shares valued at RM566.35 million.

The ringgit strengthened 0.23% to 3.0798 versus the US dollar; crude palm oil futures for the third month delivery rose RM12 per tonne to RM3,177, crude oil gained 21 cents per barrel to US$99.16 while gold rose US$1 an ounce to US$1,666.68.

At the regional markets, Japan’s Nikkei 225 rose 1.21% to 8,891. 89, Australia’s S&P/ASX 200 Index gained 0.88% to 4,261.40, Singapore’s Straits Times Index added 0.83% to 2,872.90 and South Korea’s Kospi was up 0.33% to 1,956.41.

The China, Hong Kong and Taiwan markets remained closed for the Chinese New Year holidays.

On Bursa Malaysia, Nestle fell 30 sen to RM55.70, Dutch Lady 20 sen to RM25.78, CIMB 12 sen to RM6.99, Golsta and KESM 10 sen each to 39 sen and RM2, Affin nine sen to RM3.13, Petronas Chemicals and Genting eight sen each to RM6.60 and RM10.90, Petronas Gas four sen to RM15.20 while Genting PLANTATION []s was down three sen RM9.25.

DBE Gurney was the most actively traded counter with 46.72 million shares done. The stock was unchanged at 12.5 sen.

Other actives included JCY, Compugates, MBSB, Maybulk, CIMB, Unisem and DRB-Hicom.

Among the gainers, BAT was up 46 sen to RM49.96, MPI 35 sen to RM3.63, Malayan Flour Mills 24 sen to RM8.04, Hong Leong Bank and BHIC 20 sen each to RM11.30 and RM3.77, Tradewinds Plantations and Fima Corp 17 sen each to RM4.43 and RM6.21, KLK 16 sen to RM25.64 while NSOP and Batu Kawan added 14 sen each to RM5.84 and RM18.84.



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KLCI falls; focus on Proton & DRB-Hicom’s announcements later today

KUALA LUMPUR (Jan 16): The FBM KLCI extended its losses on Monday, in line with the fall at key regional markets after Standard & Poor’s cut nine of the euro zone's 17 countries, including top-notch France and Austria, and said it would decide shortly whether to downgrade the euro zone's bailout fund.

Amidst the retreating equity, all eyes would remain trained on developments around national carmaker PROTON HOLDINGS BHD [] and conglomerate DRB-HICOM BHD [] after they requested for a trading halt in their securities pending a material announcement.

The Edge Financial Daily, citing industry sources on Monday, had reported that DRB-Hicom was understood to have secured Khazanah's 42.7% stake in Proton, with only a few minor issues left to seal the deal.

At 10.20am, the FBM KLCI fell 9.99 points to 1,513.08.

Losers beat gainers by 346 to 120, while 205 counters traded unchanged. Volume was 400.11 million shares valued at RM202.11 million.

Asian shares fell on Monday on heightening worries that the mass sovereign debt rating cuts by Standard & Poor's would further aggravate euro zone funding difficulties and recapitalisation, threatening to derail progress in resolving the debt crisis, according to Reuters.

At the regional markets, Japan’s Nikkei 225 lost 1.49% to 8,373,04, Hong Kong’s Hang Seng Index fell 1.04% to 19,004.10, South Korea’s Kospi was down 1.50% to 1,847.63, Taiwan’s Taiex lost 1.065 to 7,105.39, Singapore’s Straits Times Index fell 1.05% to 2,762.35 and the Shanghai Composite Index shed 0.79% to 2,226.92.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said the local market remained quiet in range-bound trading last week, adding that high volumes of between 1.51 billion to 1.91 billion shares were registered.

“Some position-squaring ahead of the weekend and the impending Chinese New Year holidays later this week caused a mild downward drift in the local bourse,” he said.

Among the major losers, Dutch Lady fell 54 sen to RM25.24, F&N 28 sen to RM18.62, Petronas Gas 18 sen to RM15.24, Genting and Bursa 14 sen each to RM10.74 and RM6.84, BHIC 13 sen to RM3.54, Top Glove, United PLANTATION []s and Tenaga down 10 sen each to RM5.11, RM19.90 and RM6.13, while Southern Acids lost eight sen to RM2.32.

Compugates was the most actively traded counter with 84.1 million shares done. The stock added one sen to 8 sen.

Other actives included Asia Media, Digistar, Hiap Teck, RedTone, Dutaland and Hovid.

Meanwhile, gainers included Malayan Flour Mills, Supermax, Aeon, Tasek, Can-One, Eng Kah, Kretam, Kian Joo and Asia Media.



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KLCI advances in late trade, extends gains for fourth day

KUALA LUMPUR (Jan 12): The FBM KLCI extended its gains for the fourth consecutive day on Thursday as late buying of select blue chips, including Genting-related counters lifted the index.

At 5pm, the index rose 3.27 points to 1,525.56.

Market breadth however remained weak with losers leading gainers by 418 to 351, while 339 counters traded unchanged. Volume was 1.52 billion shares valued at RM1.58 billion.

Regional markets mostly ended lower, while European shares were flat on Thursday, pausing ahead of a Spanish debt auction that is the first test in the new year of demand for peripheral euro zone debt, the latest stage of a crisis that remains a key drag for equity market sentiment, according to Reuters.

At the regional markets, Japan’s Nikkei 225 fell 0.74% to 8,385.59, the Shanghai Composite Index lost 0.47% to 2,275.01, Hong Kong’s Hang Seng Index was down 0.30% to 19,095.38 and Taiwan’s Taiex shed 0.02% to 7,186.58 and Singapore’s Straits Times Index fell 0.13% to 2,743.66.

Meanwhile, South Korea’s Kospi rose 1.03% to 1,864.57.

On Bursa Malaysia, Genting PLANTATION []s gained 21 sen to RM9.10, Genting up 20 sen to RM10.96, Proton and Hartalega 18 sen each to RM5.46 and RM6.40, Bursa Malaysia 17 sen to RM7.03, Malayan Flour Mills 15 sen to RM7.55, Pos Malaysia and Can-One up 13 sen each to RM2.70 and RM1.78, Southern Acids 12 sen to RM2.29 while Allianz gained 11 sen to RM4.88.

Among the decliners, Carlsberg fell 33 sen to RM8.43, GAB down 26 sen to RM12.06, KLK 18 sen to RM24.52, New Hoong Fatt and BHIC 13 sen each to RM2.31 and RM3.68, Nestle and BAT 12 sen each to RM55.80 and RM49.84, Litrak 11 sen to RM3.74 and Dutch Lady 10 sen to RM26.10.

Ingenuity Solutions was the most actively traded counter with 41.32 million shares done. The stock added one sen to 8 sen.

Other actives included Proton, Nextnation, Pos Malaysia, Bursa Malaysia and OSK.



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KLCI stays in the red, lags regional markets

KUALA LUMPUR (Jan 10): The FBM KLCI lagged behind the regional markets and remained in negative territory at the mid-day break on Tuesday, weighed down by select blue chips, with GENTING BHD [] among the major decliners

Asian shares and the euro rose on Tuesday, but concerns over funding of euro zone sovereigns ahead of key auctions this week and of the debt crisis spilling into the wider financial system kept investors cautious about taking riskier positions, according to Reuters.

The FBM KLCI was down 1.58 points to 1,520.15 at the mid-day break. The broader market displayed signs of caution, with losers beating gainers by 352 to 274, while 329 counters traded unchanged. Volume was 955.36 million shares valued at RM788.27 million.

The ringgit strengthened 0.43% to 3.1389 versus the US dollar; crude palm oil futures for the third month delivery added RM11 to RM3,221, crude oil rose 37 cents to US$101.68 while gold gained US$4.25 an ounce to US$1,615.82.

At the regional markets, Japan’s Nikkei 225 was up 0.41% to 8,424.49, Hong Kong’s Hang Seng Index added 0.55% to 18,969.75, the Shanghai Composite Index rose 1.53% to 2,259.88, Taiwan’s Taiex added 1.05% to 7,167.20, South Korea’s Kospi up 1.61% to 1,855.97 and Singapore’s Straits Times Index gained 0.93% to 2,716.18.

On Bursa Malaysia, Genting fell 20 sen to RM10.94, Lafarge Malayan Cement down 19 sen to RM6.71, Ta Ann and BHIC lost 12 sen each to RM5.48 and RM3.67, Nestle, Genting PLANTATION []s, GAB and Tradewinds down 10 sen each to RM55.90, RM8.80, RM12.50 and RM9.68 respectively, KLCCP eight sen to RM3.30 while Goldis fell seven sen to RM1.78.

Takaso was the most actively traded counter this morning with 58.4 million shares done. The stock gained 1.5 sen to 25.5 sen.

Other actives included JCY, KHSB, Versatile, Maybulk and Coastal warrants.

Gainers included Dutch Lady, Cepco, United Plantations, Petronas Gas, KLK, Harvest Court, F&N and Maybulk.



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KLCI dips at mid-morning, sentiment continues to be jittery

KUALA LUMPUR (Jan 10): The FBM KLCI fell at mid-morning on Tuesday amidst lackluster trade, weighed by losses at select blue chips including Genting-related stocks.

The FBM KLCI shed 0.61 of a point to 1,521.12 at mid-morning.

Losers edged gainers by 195 to 189, while 260 counters traded unchanged. Volume was 412.49 million shares valued at RM268.33 million.

Asian shares and the euro rose on Tuesday, but concerns over funding of euro zone sovereigns ahead of key auctions this week and of the debt crisis spilling over into the wider financial system kept investors cautious about taking riskier positions, according to Reuters.

With European woes overshadowing recent positive economic data from the United States, market players will be seeking from Chinese trade data due later in the session signs of how the euro zone debt crisis is affecting Asian growth, it said.

At the regional markets, Japan’s Nikkei 225 rose 0.41% to 8,424.47, South Korea’s Kospi gained 1.67% to 1,856.98, Taiwan’s Taiex was up 1.08% to 7,169.96, Singapore’s Straits Times Index gained 0.44% to 2,703.07, the Shanghai Composite Index edged up 0.28% to 2,232.11 and Hong Kong’s Hang Seng Index added 0.09% to 18,882.63.

MIDF Research acting head of equity Syed Muhammed Kifni said the market was expected to remain jittery going forward with the possibility of the KLCI re-testing its 2011 lows.

Nonetheless, he said that the Euro debt issue would begin to show credible signs of healing later in the 1H2012, adding that when that transpires, the underperforming indices can be expected to show swifter resurgence on the way up.

In contrast, the KLCI is anticipated to experience relative underperformance during the recovery phase, he said.

“With that in mind, we reiterate our KLCI year-end 2012 base case target of 1,530 points.

“As our base case KLCI year-end target for this year virtually matched its 2011 close, in our view, 2012 may quintessentially be a consolidation year.

Among the losers at mid-morning, Genting lost 12 sen to RM11.02, Genting PLANTATION []s down 10 sen to RM8.80, BHIC nine sen to RM3.70, KPJ eight sen to RM4.18, BLD Plantations seven sen to RM7.956, JCY six sen to RM1.05. Paragon 5.5 sen to 24.5 sen, while Tradewinds and Kian Joo lost five sen each to RM9.73 and RM2.07.

Takaso was the most actively traded counter with 41.99 million shares done. The stock gained 2.5 sen to 26.5 sen.

Other actives included KHSB, JCY, Harvest Court, Focus and Ingenuity Solutions.

Gainers included United Plantations, Petronas Dagangan, Petronas Gas, Harvest Court, BAT, CBIP and Mudajaya.



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KLCI wraps up choppy first trading week of New Year in negative territory

KUALA LUMPUR (Jan 6): The FBM KLCI pared down some of its earlier losses on Friday as it ended a choppy first trading week in negative territory, while most regional markets fell more than 1% on growing worries over the lingering eurozone debt crisis.

The FBM KLCI closed 0.30 point lower at 1,514.13, weighed by losses at select blue chips.

Losers edged gainers by 391 to 377, while 299 counters traded unchanged. Volume was 1.47 billion shares valued at RM1.39 billion.

At the regional markets, Hong Kong’s Hang Seng Index fell 1.17% to 18,593.06, Japan’s Nikkei 225 lost 1.16% to 8,390.35, South Korea’s Kospi was down 1.11% to 1,843.14 and Taiwan’s Taiex shed 0.15% to 7,120.51.

Meanwhile, European shares edged up in early trade on Friday, ahead of the closely-watched US nonfarm payrolls report, which may provide more evidence of the world's biggest economy strengthening, according to Reuters.

US nonfarm payrolls, due at 1330 GMT, may have risen by 150,000 in December, according to a survey. Hopes of an even stronger number were driven by data on Thursday, showing more than twice the expected number of private sector jobs were added in December while initial jobless claims dropped 15,000 in the latest week, it said.

On Bursa Malaysia, BAT fell 90 sen to RM48.76, KLK down 62 sen to RM24.64, Tradewinds PLANTATION []s and SOP down 17 sen each to RM4.33 and RM5.78, Boxpak down 14 sen to RM2.38, BHIC 13 sen to RM3.98, Gamuda nine sen to RM3.36, Kulim eight sen to RM4.30 while Jetson and Daibochi fell seven sen each to RM1.25 and RM2.82.

Among the gainers, BLD Plantations added 40 sen to RM8, Batu Kawan 30 sen to RM18.48, F&N 26 sen to RM18.50, Maybulk 25 sen to RM1.79, Can-One 22 sen to RM1.59, Dutch Lady 20 sen to RM25.20, Puncak Niaga 18.5 sen to RM1.16, HLFG 16 sen to RM11.72, KPS up 15.5 sen to RM1.05 and Eng Teknologi 15 sen to RM1.69.

Nextnation was the most actively traded counter with 60.65 million shares done. The stock rose three sen to 11.5 sen.

Other actives included Hibiscus, Unisem, XDL, Maybulk, Utopia and JCY.



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In Brief

UMA for Can-One after spike in stock price

KUALA LUMPUR: Can-One Bhd attracted an unusual market activity (UMA) query from Bursa Securities yesterday after its shares spiked 29.2% to close at RM1.37. The latest of a string of companies that have courted a UMA query in recent months, Can-One opened at RM1.06 and shot up by 31 sen yesterday to close at RM1.37, the highest in at least 52 weeks, with 6.95 million shares done.

Can-One was yesterday’s third top gainer in absolute share price terms, behind Kuala Lumpur Kepong Bhd that added RM1.76 to close at RM25.26 and Dutch Lady Milk Industries Bhd, which gained RM1 to close at RM25.

In reply to the query, Can-One directors said they were not aware of any rumour, report or other factors that may have caused the jump in its share price. There are also no unannounced material corporate development or on-going negotiations, it said, adding that necessary disclosures would be made, should any arise.

BHIC quashes privatisation talks

KUALA LUMPUR: Boustead Heavy Industries Corp Bhd (BHIC) yesterday denied being part of any on-going privatisation talks.

In a statement to Bursa Malaysia to clarify media reports following the rise in its share price, BHIC said it “had not received any indication or direction from its shareholders with regard to any major acquisition of shares in the company which might include a privatisation”.

The company reiterated that its major shareholder, Boustead Holdings Bhd, had on Dec 21, 2011, “publicly announced” it was “not considering any proposal to privatise BHIC”.



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Unresolved eurozone debt crisis haunts Asian markets

KUALA LUMPUR (Jan 6): Asian markets fell on Friday as Europe remained the central theme and the overhanging eurozone debt crisis kept investors on tenterhooks.

The FBM KLCI fell 4.71 points to 1,509.72 at the mid-day break, as blue chips including KLK, BAT, Petronas Gas and Maybank slipped.

Market breadth turned negative with losers beating gainers by 358 to 286, while 263 counters traded unchanged. Volume was 806.22 million shares valued at RM598.27 million.

The ringgit weakened 0.05% to 3.1525 versus the US dollar; crude palm oil futures for the third month delivery fell RM16 per tonne to RM3,173, crude oil slipped 46 cents per barrel to US$101.35 while gold added 85 cents an ounce to US$1,623.57.

Asian shares fell and the euro hovered near a 16-month low against the dollar on Friday on worries that the euro zone debt crisis is crippling European banks, with players hoping U.S. job data later in the day will help improve sentiment, according to Reuters.

At the regional markets, Japan’s Nikkei 225 fell 1.05% to 8,399.66, Hong Kong’s Hang Seng Index lost 1.4% to 18,550.37, South Korea’s Kospi was down 1.64% to 1,833.18, the Shanghai Composite Index down 0.32% to 2,141.51, Singapore’s Straits Times Index fell 0.23% to 2,706.66 and Taiwan’s Taiex shed 0.18% to 7,118.38.

On Bursa Malaysia, KLK fell RM1.02 to RM24.24 after the price surge on Thursday BAT down 36 sen to RM49.30, BHIC 20 sen to RM3.91, Tradewinds PLANTATION []s 15 sen to RM4.35, Petronas Gas and Box-Pak 10 sen each to RM14.74 and RM2.42, Parkson nine sen to RM5.47 while AIRB, Jetson and Maybank lost eight sen each to RM1.59, RM1.24 and RM8.21 respectively.

Among the gainers, Dutch Lady rose 40 sen to RM25.40, Can-One 27 sen to RM1.64, NSOP 23 sen to RM5.78, Maybulk 17 sen to RM1.71, BLD Plantations 15 sen to RM7.75, MPI 14 sen to RM2.87, KLCCP 12 sen to RM3.32 and Nestle up 10 sen to RM56.40.

Nextnation was the most actively traded counter with 43.4 million shares done. The stock rose three sen to 11.5 sen.

Other actives included Unisem, Hibiscus, XDL, Utopia, Maybulk and JCY.



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KLCI slips at mid-morning as Asian markets edge down

KUALA LUMPUR (Jan 6): The FBM KLCI slipped at mid-morning on Friday, in line with the overall tepid sentiment at key regional markets, following the weaker overnight close at European markets.

The FBM KLCI slipped 1.87 points to 1,512.56 at 10am, with losses including at KLK, Petronas Chemicals and Genting.

Gainers edged losers by 212 to 192, while 215 counters traded unchanged. Volume was 377.83 million shares valued at RM220.1 million.

Asian shares edged down and the euro hovered near a 16-month low against the dollar and an 11-year low against the yen on Friday on worries the euro zone debt crisis is crippling European banks, but more positive U.S. data helped curb the losses, according to Reuters.

At the regional markets, Japan’s Nikkei fell 0.74% to 8,425.75, Hong Kong’s Hang Seng Index was down 0.50% to 18,718.90, South Korea’s Kospi lost 1.21% to 1,841.24, Singapore’s Straits Times Index shed 0.20% to 2,707.61 and Taiwan’s Taiex inched down 0.01% to 7,129.95.

Meanwhile, the Shanghai Composite Index added 0.13% to 2,151.34.

BIMB Securities Research in a note Jan 6 said it would be interesting to see investors trading stance over the immediate term as their sentiments “yo-yo” between Eurozone crisis and improved US economic data.

It said that on Thursday, it seemed like a dead heat despite encouraging unemployment figures coupled with better housing starts in the US as the DJI Average closed flat to remain at above the 12,400 level.

As for the European bourses, most ended the day lower spooked by the spike in treasury yields of both Spain (5.64%, +0.2%) and Italy (7.09%, +0.15%), it said.

Regionally, it was generally a mixed day following the lacklustre European performance, it said.

Locally, the FBMKLCI finally rebounded after the opening 2 days of decline.

The benchmark index gained 10 points to close at 1,514 almost at par to its resistance of 1,515 mark.

“Yesterday we noticed buying interest to centre on PLANTATION [] stocks as advocated by us of a re-rating following a resilient CPO price which hovers at above the RM3,000 level.

“We expect accumulation of plantation and oil & gas stocks to persist and should prop the index higher to 1,520,” it said.

On Bursa Malaysia, KLK was the top loser at mid-morning and fell 76 sen to RM24.50; Tradewinds Plantations was down 18 sen to RM4.32, BHIC lost 16 sen to RM3.95, Box-pak eight sen to RM2.44, Orient seven sen to RM5.25, KYM, GAB, Petronas Chemicals and Genting fell six sen each to RM1.49, RM13.18, RM6.32 and RM11.08 respectively, while K-Power was down five sen to 45 sen.

Gainers included Can-One, MPI, Petronas Gas, HLFG, Batu Kawan, Muda, Nestle, Dutch Lady and Unisem, while the actives included Nextnation, XDL, Utopia, JCY, HWGB, Wijaya and Can-One.



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BHIC dips after quashing privatisation talks

KUALA LUMPUR (Jan 6): BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd (BHIC) shares retreated on Friday after it denied being part of any on-going privatisation talks.

At 9.30am, BHIC fell 18 sen to RM3.93 with 181,800 shares done.

The company on Thursday clarified that it had not received any indication or direction from its shareholders about any major acquisition of shares in the company which might include potential privatisation.



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Boustead Heavy falls on buyout denial

Boustead Heavy Industries Corp, a Malaysian shipbuilder, fell the most in more than three months in Kuala Lumpur trading after denying a report that any of its key shareholders, including Boustead Holdings Bhd, were planning a buyout.

The stock fell 3.9 percent to RM3.95 at 9:03 a.m. local time, set for its biggest decline since Sept. 26. -- Bloomberg



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HDBSVR: KLCI to trade sideways around 1,515

KUALA LUMPUR (Jan 6): Hwang DBS Vickers Research (HDBSVR) said the benchmark FBM KLCI will probably bounce back and forth around the immediate resistance level of 1,515 on Friday, possibly moving with a marginal downward bias on the chart.

It said the sideways market performance is anticipated in view of a dearth of fresh market leads. Overnight, major U.S. equity indices ended between flat and 0.8% higher amid better economic data.

HDBSVR said Malaysian stocks that could be of interest to investors include:

(a) KIAN JOO CAN FACTORY BHD [], which has announced that its managing director has stepped down following the end of his contract term;

(b) Can-One, after saying that it is not aware of any possible reason for the sharp run-up in its share price (which went limit-up on Thursday). Can-One has previously announced a plan to buy a 32.9% controlling stake in Kian Joo Can Factory and is in the midst of a legal process to go ahead with the proposed acquisition; and

(c) BHIC, which has clarified that there is no indication of any privatisation deal for the company.



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Stocks to watch: SapuraCrest, Can-One, XDL, Maxbiz, JCY

KUALA LUMPUR (Jan 6): The local stock market could see some intermittent profit taking activities on Friday as investors lock in their gains ahead of the weekend.

European shares were lower early Thursday afternoon, led by bank stocks on concerns about their financial health and as sovereign yields rose across the region after a French debt auction.

The FTSEurofirst 300 index of top European shares was down 0.8 percent at 1,012.78 points, with Italy's FTSE MIB index down 3.2 percent and France's CAC-40 down 1.1 percent.

The uncertain external developments could see investors taking a more cautious stance despite the firmer close of the broader market on Thursday.

Concerns would for stocks which had run-up in the absence of positive corporate developments like Can-One, Box-Pak and BOUSTEAD HEAVY INDUSTRIES CORP [] (BHIC).

The FBM KLCI surged 10.21 points to close at 1,514.43, with KL Kepong surging RM1.76 to RM25.26. Turnover was 1.67 billion shares valued at RM1.46 billion. Advancers beat decliners 467 to 325 while 324 stocks were unchanged.

Can-One, whose share price surged 31 sen to close at RM1.37 with 6.95 million shares done, replied to a Bursa Malaysia Securities query that there were no factors for the unusual market activity.

Box-Pak could see profit taking, after rising 26 sen to RM2.52, despite earlier announcements that there was no plan to privatise it.

BHIC, which gained 26 sen to RM4.11, could also see a retracement in the share price after it clarified that it had not received any indication or direction from its shareholders about any major acquisition of shares in the company which might include potential privatisation.

However, on a positive note, SAPURACREST PETROLEUM BHD [] had secured two contracts worth combined US$227 million (RM712.78 million) to build two units pipelay cum heavylift offshore CONSTRUCTION [] vessels.

Its unit TL Offshore Sdn Bhd had finalised the contracts with Cosco (Nantong) Shipyard Co. Ltd. SapuraCrest said both parties had agreed that the contract be effective from Sept 10, 2011.

In XiDeLang Holdings Ltd (XDL), the company said Navis Capital has approached the former’s major shareholder Hong Peng International Holdings Ltd to acquire its stake.

The British Virgin Islands’ registered Hong Peng owns 240 million XDL shares or 60% as at Nov 11, 2009.

MAXBIZ CORPORATION BHD [] said the contract value of the letter of intent (LOI) of RM510 million from Fibre-N Sdn Bhd was based on the infrastructure works of RM5,100 per connection.

Maxbiz said the LOI was for the fibre-to-the-home and fibre-to-the-office (FTTX) infrastructure works for 100,000 connections to high- rise residential and office buildings in Klang Valley, Penang and Johor Bahru.

LION CORPORATION BHD [] has received Bursa Malaysia Securities Bhd’s approval to list up to 950 million new shares to settle the overdue amount owed by its 79% owned Megasteel Sdn Bhd.

JCY International Bhd might extend its gains from Thursday after the company’s recent statement it was likely to record a surge in earnings for the quarter ended Dec 31, 2011.

CIMB Research had stated said JCY’s profit guidance for the December quarter was even better than its already-above-consensus estimate.

It expected JCY’s positive earnings momentum to continue for at least the next two to three quarters and should catalyse a rerating of the stock.

“The favourable impact of a higher ASP, better product mix and stronger US$ prompts us to revise our above-industry forecasts again for FY12-14. “This raises our target price to RM1.54, still based on 6x CY13 P/E. Maintain Trading Buy,” it said.



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KLCI snaps losing streak, closes 0.68% higher

KUALA LUMPUR (Jan 5): The FBM KLCI snapped its losing streak on the third trading day of 2012 and closed in the positive territory for the first time in the New Year, lifted by gains at banking and select blue chip stocks.

The FBM KLCI gained 10.21 points to close at 1,514.43.

Gainers beat losers by 467 to 325, while 324 counters traded unchanged. Volume was 1.67 billion shares valued at RM1.46 billion.

However, whether the index would be able to sustain its gains on Friday remains uncertain as most Asian markets closed in the negative territory while European indices fell in early trade on Thursday.

At the regional markets, Hong Kong’s Hang Seng Index added 0.46% to 18,813.41, Taiwan’s Taiex gained 0.68% to 7,130.86 and Singapore’s Straits Times Index edged up 0.07% to 2,713.02.

Meanwhile, the Shanghai Composite Index fell 0.97% to 2,148.45, Japan’s Nikkei lost 0.83% to 8,488.71 while South Korea’s Kospi shed 0.13% to 1,863.74.

Concern about the appetite for euro zone sovereign debt pushed European stocks lower and hit the single currency on Thursday, with the first French bond auction of 2012 set to test how much progress policymakers have made in easing tensions, according to Reuters.

The price France has to pay to sell 7 to 8 billion euros of longer-term bonds will measure how much relief markets have taken from the EU leaders' December plan for resolving the crisis and the near half-trillion euros pumped into the region's banks by the European Central Bank, it said.

On Bursa Malaysia, KLK jumped RM1.76 to RM25.26, Dutch Lady gained RM1 to RM24, Can-One 31 sen to RM1.37, Nestle 30 sen to RM56.30, Timwell 28 sen to RM1.08, BHIC and Boxpak 26 sen to RM4.11 and RM2.52, Carlsberg and MISC 23 sen each to RM8.71 and RM5.96, while BLD PLANTATION []s was up 22 sen to RM7.60.

Among banking stocks, CIMB rose six sen to RM7.16, RHB Capital five sen to RM7.33, Affin seven sen to RM3.09, HLFG four sen to RM11.56, while Maybank and Public Bank gained two sen each to RM8.29 and RM13.16.

Decliners were led by RCI that lost 35 sen to RM1.45, BAT 14 sen to RM49.66, IGB 10 sen to RM2.48, Genting Plantations and IJM Corp eight sen each to RM8.60 and RM5.46, Malayan Flour Mills and WCT seven sen each to RM7.16 and RM2.18, while Mahajaya and AFG fell six sen each to 62 sen and RM3.89.

The actives included XDL, JCY, Proton, Versatile and Astral Supreme.



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BHIC attracts interest on privatisation talk

KUALA LUMPUR: Market talk concerning the possible privatisation of Boustead Heavy Industries Corp Bhd (BHIC) has resulted in an increase in the stock’s price over the past couple of weeks.

Yesterday BHIC closed at RM3.85, a 6.4% increase from its Tuesday close of RM3.62, with a total of 1.2 million shares done.

While the current price is still below the counter’s 52-week high of RM4.84, the stock price has seen a gradual upward trend from early December 2011, where the share price ranged between RM2.60 and RM2.90.

According to reports, while BHIC’s parent Boustead Holdings Bhd denied talk that it was planning to privatise the former, it then emerged that Lembaga Tabung Angkatan Tentera (LTAT) could be the vehicle to be used.

LTAT’s chief executive Tan Sri Lodin Wok Kamaruddin did not dismiss the possibility of the Armed Forces Pension fund taking BHIC private. However, he added that the matter would have to be collectively deliberated on by LTAT’s board of directors.

According to BHIC’s latest annual report, LTAT holds a direct 8.15% stake in the company, and an indirect stake of 65%, via Boustead.

According to Boustead’s latest annual report, LTAT holds a 59.28% stake in the company.

While there are still questions over the possible price that BHIC might be privatised at, the company’s net assets per share as at the end of Sept last year was RM1.71. At its current share price, its historical PE ratio is 46.78 times, while its estimated PE is 124.19 times. Its current price-to-book ratio is 2.26 times. However, AmResearch noted in a research report the attractiveness of BHIC given that it is the country’s sole military yard with massive order book prospects.

While it was a tough year for BHIC last year, the company recently got a boost to its prospects when it received a letter of award from the Ministry of Defence, as announced by the company in mid-December. The letter of award is for the contract to design, construct, equip, install, commission, integrate, test and trials, and deliver six combat ships.

The contract carries a ceiling of RM9 billion, with the first ship expected to be delivered in 2017, to be followed by the other ships at six-month intervals.

However, for its 3QFY11 ended Sept 30, BHIC slipped into the red, reporting a net loss of RM2.4 million compared to a net profit of RM26.9 million for the previous year’s corresponding period. Net profit for the first nine months of FY11 also showed a year-on-year decline of 84.5% to RM9 million.

According to the notes accompanying the announcement, the loss during 3Q was due to cost overruns in certain commercial shipbuilding projects.

AmResearch has a “buy” on BHIC but adjusted its earnings forecasts for FY11 on the back of cost overruns and late delivery charges for two accommodation crane barges and deadweight oil carriers.

The research house has a fair value of RM4.30 for the stock compared with RM4.15 by consensus.



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KLCI remains in positive territory at mid-day, but gains seen capped

KUALA LUMPUR (Jan 5): The FBM KLCI stayed above the psychologically-crucial 1,500 level at the mid-day break on Thursday, but pared down its gains as investor sentiment remains fragile.

At 12.30pm, the FBM KLCI was up 2.59 points to 1,506.81. Gainers edged losers by 306 to 300, while 334 counters traded unchanged. Volume was 754.24 million shares valued at RM579.57 million.

The ringgit weakened 0.11% to 3.1392 versus the US dollar; crude palm oil futures for the third month delivery fell RM2 per tonne to RM3,213, crude oil shed 23 cents per barrel to US$102.99 while gold gained US$4.97 to US$1,616.57.

Asian stocks steadied and reversed some earlier losses, but overall sentiment was cautious given concerns about the ability of euro zone countries to refinance their huge public debt that dampened investor risk appetite.

Meanwhile, China's services sector entered a seventh straight year of expansion in December, a survey of purchasing managers showed on Thursday, but a slowdown in the world's second-biggest economy saw overall levels of activity mired at three-month lows, according to Reuters.

The HSBC China services purchasing managers index (PMI) stood at 52.5 in December, unchanged from November, signalling a steady if sluggish expansion in the sector that is increasingly a barometer for domestic economic conditions, it said.

At the regional markets, Hong Kong’s Hang Seng Index was up 0.44% to 18,810.38, Singapore’s Straits Times Index added 0.58% to 2,726.76, South Korea’s Kospi gained 0.39% to 1,873.49, Taiwan’s Taiex was up 0.37% to 7,109.30 and the Shanghai Composite Index edged up 0.32% to 2,176.37.

Meanwhile, Japan’s Nikkei 225 fell 0.65% to 8,504.44.

On Bursa Malaysia, Dutch Lady gained 60 sen to RM24.60; Timwell was up 28 sen to RM1.08, Can-One 24 sen to RM1.30, Sarawak PLANTATION []s and BHIC 22 sen each to RM2.59 and RM4.07, SOP 15 sen to RM6, while Perduren, Tahps, HLFG and Proton added 12 sen each to 85 sen, RM4.40, RM11.64 and RM5 respectively.

Decliners included Far East, YHS, Malayan Flour Mills, UMS, IJM Corp, Sime Darby, Genting and IGB, while the actives included JCY, Versatile, Proton, HWGB and Astral Supreme.



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