BIMB up after Maybank IB Research raises target price

KUALA LUMPUR (May 2); BIMB HOLDINGS BHD [] was among the top gainers in the morning session of Wednesday after Maybank Investment Bank Bhd maintained its Buy rating on the stock and raised its target price to RM2.95 (from RM2.55) and said higher valuations were warranted for both Bank Islam and Syarikat Takaful (STMB), given their strong underlying fundamentals.

At 12.30pm, BIMB rose 12 sen to RM2.6 with 3.48 million shares done.

Meanwhile, Takaful rose 29 sen to RM4.25.

“Pegging on higher P/BV valuations for both companies, our SOP valuation for BIMB Holdings is raised to MYR2.95 from MYR2.55, which implies 16% upside to the current share price.

“Our revised target P/BV multiple for STMB (Not Rated) values the takaful operator at MYR4.75, or 20% upside to its current share price,” Maybank IB said in a note Wednesday.



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BIMB extends gains on target price upgrade by Maybank IB Research

KUALA LUMPUR (May 3): BIMB HOLDINGS BHD [] extended its gains and was among the top gainers in early trade on Thursday after Maybank Investment Bank Bhd on May 2 maintained its Buy rating on the stock and raised its target price to RM2.95 (from RM2.55) and said higher valuations were warranted for both Bank Islam and Syarikat Takaful (STMB), given their strong underlying fundamentals.

At 9.13am, BIMB rose 3 sen to RM2.70 with 270,6000 shares done.

Meanwhile, Takaful rose 5 sen to RM4.25.

“Pegging on higher P/BV valuations for both companies, our SOP valuation for BIMB Holdings is raised to MYR2.95 from MYR2.55, which implies 16% upside to the current share price.

“Our revised target P/BV multiple for STMB (Not Rated) values the takaful operator at MYR4.75, or 20% upside to its current share price,” Maybank IB said in a note Wednesday.



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KLCI rises at mid-day break, but struggles to breach 1,580-level

KUALA LUMPUR (May 2): the FBM KLCI rose at the mid-day break on Wednesday in line with the gains at its regional peers, but struggled to cross the crucial 1,580-point mark.

The 30-stock index rose 7.79 points to 1,578.40 at the mid-day break.

Gainers led losers by 315 to 243, while 290 counters traded unchanged. Volume was 680.87 million shares valued at RM542.98 million.

The ringgit strengthened 0.23% to 3.0219 versus the US dollar; crude palm oil futures for the third month delivery rose RM1 per tonne to RM3,445, crude oil fell 22 cents per barrel to US$105.94 and gold lost US$3.25 an ounce to US$1,659.18.

Asian shares edged higher and the dollar recovered against the yen on Wednesday after strong U.S. factory activity data raised hopes that the world's biggest economy remained on a recovery track, according to Reuters.

Factory order data released on Wednesday by Asia's key exporters Taiwan and South Korea showed manufacturing activity grew but at a slower pace, while China's HSBC final PMI reading for April came in slightly above last week's flash PMI, it said.

At the regional markets, Japan’s Nikkei 225 rose 0.38% to 9,386.28, Hong Kong’s Hang Seng Index was gained 1.14% 21,335.60, the Shanghai Composite Index was up 1.58% to 2,434.09, Taiwan’s Taiex jumped 2.11% to 7,660.13, South Korea’s Kospi gained 0.77% to 1,997.32 and Singapore’s Straits Times Index edged up 0.50% to 2,993.60.

On Bursa Malaysia, Aeon Credit was the top gainer at the mid-dat break and rose 32 sen to RM11.02, Takaful up 29 sen to RM4.25, Orient 25 sen to RM6.67, Aeon 19 sen to RM9.70, Genting 18 sen to RM10.52, Tasek 16 sen to RM8.83, Harrisons 15 sen to RM3.23, Cyber Towers 13.5 sen to RM1.10 and BIMB 12 sen to RM2.66.

Utopia was the most actively traded counter with 59.62 million shares done. The stock was unchanged at 8.5 sen.

Other actives included Hubline, BIMB, Naim Indah Corp, Astral Supreme, AWC, Focus and Ariantec.

Decliners included BAT, Dutch Lady, Y&G, Country View, Cepco, PPB, Top Glove, Milux, Shell and UMS.



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Maybank IB Research maintains Hold on BIMB, raises target price to RM2.95

KUALA LUMPUR (May 2): Maybank Investment Bank Bhd has maintained its Buy rating on BIMB HOLDINGS BHD [] and raised its target price to RM2.95 (from RM2.55) and said higher valuations were warranted for both Bank Islam and Syarikat Takaful (STMB), given their strong underlying fundamentals.

“Pegging on higher P/BV valuations for both companies, our SOP valuation for BIMB Holdings is raised to MYR2.95 from MYR2.55, which implies 16% upside to the current share price.

“Our revised target P/BV multiple for STMB (Not Rated) values the takaful operator at MYR4.75, or 20% upside to its current share price,” it said in a note Wednesday.



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BIMB up 3% on dividend updates

KUALA LUMPUR (April 16) : Shares of BIMB HOLDINGS BHD [] rose as much as 3.3% during intraday trade following the Islamic financial services provider’s dividend updates.

The stock rose eight sen to RM2.47 before settling lower at RM2.45 for lunch break.

BIMB which owns Bank Islam Malaysia Bhd and SYARIKAT TAKAFUL MALAYSIA BHD [], said last Friday that it intends to reward shareholders with a final single-tier dividend of 7.25% for financial year ended December 31, 2011.

This compares to a final dividend of 1.6% less 25% tax a year earlier, according to BIMB.



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Limited gains for KLCI at mid-morning

KUALA LUMPUR (March 28): Gains were limited for the FBM KLCI at mid-morning on Wednesday in line with the tepid trade at key after US stocks retreated from near four-year peaks on Tuesday.

At 10.05am, the FBM KLCI edged up 1.32 points to 1,589. Gainers trailed losers by 169 to 213, while 223 counters traded unchanged. Volume was 386.01 million shares valued at RM126.19 million.

Asian shares drifted lower on Wednesday as investors waited for more clues on the state of the U.S. economy, after hopes for further stimulus from the U.S. Federal Reserve strengthened risk appetite and lifted prices the previous session, according to Reuters.

At the regional markets, Japan’s Nikkei 225 fell 0.95% to 10,158.20, Hong Kong’s Hang Seng Index losr 0.43% to 20,965.60, the Shanghai Composite Index was down 0.56% to 2,333.96, South Korea’s Kospi fell 0.23% to 2,035.05, singapore’s Straits Times Index lost 0.38% to 3,007.52 and Taiwan’s taiex shed 0.09% to 8,022.45.

BIMB Securities Research in a note March 28 said that after a triple digit jump on Monday, the Dow Jones Industrial Average retreated 44 points to a tad below the 13,200 support mark as traders took stock of recent developments and stay sidelined waiting for fresh catalysts.

Meanwhile, European bourses closed mostly lower reacting to the slight decline in the US consumer confidence level, it said.

The research house said that it was a good day for Asian markets as most ended up higher taking cue from the uptrend on Wall Street.

Locally, the FBM KLCI rebounded 5 points to close just below the resistance of 1,590, it said.

“We believe the benchmark index is all set to break its all time high of 1,597 soon and thereafter test the strong psychological level of 1,600.

“We strongly believe the uptrend remains intact as foreign participation again was a positive RM324 million yesterday amounting to almost RM4.5 billion year-to-date. Meanwhile, the date of GE13 is still highly speculative with the latest one touted at September,” it said.

On Bursa Malaysia, Dutch Lady rose 60 sen to RM32.60, Takaful added 11 sen to RM3.01, Petronas Gas and PPB rose eights en each to RM16.98 and RM16.48, Bintulu Port up seven sen to RM6.90, while TDM, Kulim, Sin Heng Chan and BIMB rose six sen each to RM4.83, RM4.20, RM1.06 and RM2.36 respectively.

SuperComnet was the most actively traded counter with 49 million shares done. The stock fell 12.5 sen to 23.5 sen.

Other actives included Utopia, Metronic, Silver Bird, Ariantec and Maxtral.

Decliners included United PLANTATION []s, Supercomnet, MISC, Batu Kawan, Parskson, Ivory, Hing yap, Top Glove, MSM and AIC.



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KLCI slips into the red at closing

KUALA LUMPUR (March 13): The FBM KLCI slipped into negative territory in late trade on Tuesday, weighed by losses at select blue chips including banking stocks, MISC and Tenaga as the pullback from Monday did not seem to be over as investors turned cautious.

The FBM KLCI closed 0.73 of a point lower at 1,564.02. Losers beat gainers by 469 to 288, while 329 counters traded unchanged. Volume was 1.16 billion shares valued at RM1.47 billion.

At the regional markets, the Shanghai Composite Index fell 0.19% to 2,434.86. However, Hong Kong’s Hang Seng Index rose 0.97% to 21,339.70, Japan’s Nikkei 225 added 0.09% to 9,899.08, Singapore’s Straits Times Index 0.89% to 2,988.57, South Korea’s Kospi 1.13% to 2,025.04 and Taiwan’s Taiex 1.31% higher at 8,031,51.

European shares gained on Tuesday on hopes German and U.S. data will support rising hopes of an economic recovery ahead of a monetary policy statement by the Federal Reserve, according to Reuters.

Among the decliners on Bursa Malaysia, United PLANTATION []s fell 16 sen to RM24.82, MISC, Tasek, Advanced Packaging, lost 15 sen each to RM5.10, RM8.60 and RM1.30 while Tenaga was down 13 sen to RM6.32.

BLD Plantations and Panasonic lost 12 sen each to RM9.18 and RM22.08, while Padini and Oriental Holdings fell 11 sen each to RM1.45 and RM6.13.

Among banking stocks, Public Bank fell eight sen to RM13.66, BIMB down six sen to RM2.27, Hong Leong Bank four sen to RM12.10, CIMB three sen to RM7.26 and RHB Capital one sen to RM7.79.

Naim Indah Corp was the most active with 176.5 million shares done. The stock fell four sen to 78.5 sen.

Other actives included IFCA MSC, Takaso, Winsun, YTL, HWGB, Silver Bird, and XDL.

Meanwhile, gainers included BAT, Sin Heng Chan, Euro Holdings, TSH, Petronas Chemicals, Tradewinds Plantations and Manulife.



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HDBSVR downgrades BIMB to Hold, TP remains at RM2.20

KUALA LUMPUR (March 8): Hwang DBS Vickers Research has downgraded BIMB HOLDINGS BHD [] to a Hold but maintains the target price at RM2.20.

It said on Thursday the RM2.20 was based on the Gordon Growth Model, assuming 12% ROE, 4% growth, 10.3% cost of equity.

“Share price has gained 15% YTD. Bank Islam assuming BIMB’s listing status could be positive as this would allow investors to have direct exposure to Bank Islam,” it said.

HDBSVR said currently, only 51% of Bank Islam’s earnings are consolidated into BIMB.

“There are talks that Bank Islam is seeking to buy an Indonesian bank, which could allow it to penetrate new markets. There are no details yet, but pricing and the resulting synergies would be crucial,” HDBSVR said.



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BIMB earnings for 4Q at RM73.88m, boost from Bank Islam, takaful

KUALA LUMPUR: BIMB HOLDINGS BHD [] posted RM73.88 million in net profit for the fourth quarter ended Dec 31, 2011, on the back of improved asset quality by Bank Islam and better underwriting results by Takaful Malaysia.

It said on Tuesday, Feb 29, revenue was RM568.74 million, while earnings per share were 6.93 sen.

BIMB attributed the higher income to higher fund and non-fund based income, improved asset quality by Bank Islam as well as better underwriting results by Takaful Malaysia.

It also cited higher realised gains on disposal of investment and the release of contingent special reserves as causes of its strong performance.

For FY ended Dec 31, 2011, its recorded net profit of RM204.41 million on the back of RM2.036 billion in revenue.



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CIMB Research has technical buy on BIMB at RM2.16

KUALA LUMPUR (Feb 28): CIMB Equities Research has a technical buy on BIMB Holdings at RM2.16 at which it is trading at a price-to-book value of 1.3 times.

It said on Tuesday that prices have broken out of its long term triangle pattern in January and have stayed above the triangle support.

“It appears to be forming a bullish flag pattern just above its moving averages. With its indicators in consolidation mode, the bullish flag pattern could continue for a while longer. Nevertheless, it provides traders time to get in,” it said.

CIMB Research said the stock was a buy with a stop loss placed below RM2.07. A breakout above the RM2.22 flag resistance would mean that prices are headed back to retest RM2.43 high.



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FBM KLCI falls below 1,560-level at mid-morning

KUALA LUMPUR (Feb 15): The FBM KLCI fell below the 1,560-level at mid-morning on Wednesday, weighed by select blue chips in cautious trade ahead of domestic economic growth data scheduled for release later in the day.

The FBM KLCI fell 7.06 points to 1,558.99 at 10am, weighed by select blue chips including BAT, PPB and Petronas Gas.

Gainers trailed losers by 162 to 300, while 271 counters traded unchanged. Volume was 419.75 million shares valued at RM223.51 million.

At the regional markets, Japan’s Nikkei 225 rose 1.02% to 9,144.15, Hong Kong’s Hang Seng Index added 0.43% to RM21,008.50, Taiwan’s Taiex was up 0.54% to 7,926.44, South Korea’s Kospi gained 0.55% to 2,013.69, Singapore’s Straits Times Index edged up 0.08% to 2,989.81 while the Shanghai Composite Index was flat at 2,344.86.

BIMB Securities Research in a note Wednesday said European shares closed lower yesterday after lower than expected US retail sales.

European officials jacked up the pressure on the Greek government to deliver budget cuts in exchange for a second bailout as they insisted that default is not an option, it said.

“Meanwhile in the US, stocks were near lows on earlier trading worries that euro zone finance ministers appeared unlikely to release the Greek bailout funds as hoped, however they retreated in the final half hour spurred by optimism that Greece will commit to budget cuts stopped short of erasing a huge decline in the S&P 500 while the DJI added 0.03%.

“Back home, the FBMKLCI remains positive, adding another 3.23 points to 1,566 and we expect it to test its immediate resistance of 1,570, followed by 1,580 today while support remains at 1,560,” it said.

On Bursa Malaysia, BAT fell 46 sen to RM51.32, United PLANTATION []s down 14 sen to RM22.24, GAB, PPB, Petronas Gas, Hartalega and F&N fell 10 sen each to RM12.50, RM17.60, RM16.64, RM8.16 and RM17.590 respectively, Carlsberg was down eight sen to RM9.48, Bursa seven sen to RM7.40 and Multico shed six sen to RM1.20.

Naim Indah Corp was the most actively traded counter with 49.14 million shares done. The stock fell 1.5 sen to 46.5 sen.

Other actives included TMS, MBF Holdings warrants, Scanwolf, RCE Capital, Envair, TMC Life and Green Packet.

The advancing stocks included Dialog, Petronas Dagangan, TMS, Jaya Tiasa, Boxpak, Apollo, Brahims, Kulim and Jetson.



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HDBSVR: KLCI could consolidate after 40pt rally past 2 weeks

KUALA LUMPUR (Feb 13): HwangDBS Vickers Research said the benchmark FBM KLCI could consolidate on Monday following an increase of 40.8-point or 2.7% in the last fortnight.

“Still, our local bourse would likely show resilience as investors who have missed out on the earlier market run-up may be waiting to buy on weakness. On the chart, the bellwether may find immediate support at the 1,555 level,” it said.

Over on Wall Street, after the recent market rally, major U.S. equity indices dropped between 0.7% and 0.8% last Friday pending the emergence of fresh market developments.

At Bursa Malaysia, stocks that may be of added interest include: (a) Time Engineering, amid a weekly business report saying that three interested bidders are eyeing to acquire Khazanah Nasional’s 45% stake in the company; (b) BIMB, after a local media reported that its subsidiary Bank Islam is in talks to buy a stake in an Indonesian Islamic lender; and (c) IOI Corporation, following a news article stating that it is considering to re-list its property arm.



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BIMB share price rally takes a breather

KUALA LUMPUR (Jan 19): Shares of BIMB HOLDINGS BHD [], which surged 22 sen on Wednesday, took a breather on Thursday as investors locked in their gains.

At 10.54am, BIMB was down five sen to RM2.19. There were 3.02 million shares done at prices ranging from RM2.17 to RM2.28.

Its call warrants shed one sen each, with BIMB-CC down to 16.5 sen (17.34 million units done) and BIMB-CB to 8.0 sen.

The FBM KLCI was up 1.01 points to 1,518.39. Turnover was 678.18 million shares valued at RM377.27 million. There were 275 gainers, 238 losers and 282 stocks unchanged.

A fund manager said BIMB should attract more trading interest as it was the only Syariah banking stock listed on Bursa Malaysia unlike the larger conventional banks.

Meanwhile, CIMB Equities Research said on Thursday, it had a technical buy on BIMB at RM2.24 at which it is trading at a price-to-book value of 1.3 times.

It said on Thursday that BIMB Holdings broke out of its consolidation triangle pattern on Wednesday.

“Looking at the chart, we think the stock is ripe for a stronger rebound. If we are right, the next upleg is going to lift prices towards RM2.34 and RM2.43,” it said.

CIMB Research said the technical landscape was improving.

Its technical analysis showed that the MACD histogram bars have returned to the black while RSI has also hooked upward. The 30-day SMA has also cut above its longer term 50-day SMA, which is another positive sign.

“Traders should wait for a slight pullback before jumping onto this buying bandwagon. Always put a stop at below RM2.08-RM2.03 to limit downside risk,” it said.



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CIMB Research has technical buy on BIMB at RM2.24

KUALA LUMPUR (Jan 19): CIMB Equities Research has a technical buy on BIMB Holdings at RM2.24 at which it is trading at a price-to-book value of 1.3 times.

It said on Thursday that BIMB Holdings broke out of its consolidation triangle pattern on Wednesday.

“Looking at the chart, we think the stock is ripe for a stronger rebound. If we are right, the next upleg is going to lift prices towards RM2.34 and RM2.43,” it said.

CIMB Research said the technical landscape is improving. MACD histogram bars have returned to the black while RSI has also hooked upward. The 30-day SMA has also cut above its longer term 50-day SMA, which is another positive sign.

“Traders should wait for a slight pullback before jumping onto this buying bandwagon. Always put a stop at below RM2.08-RM2.03 to limit downside risk,” it said.



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Blue chips close slightly lower, Tenaga, MMHE weigh

KUALA LUMPUR (Jan 18): Blue chips closed slightly lower on Wednesday, weighed down by declines in heavyweights Tenaga and MMHE but the broader market was mixed, with strong trading interest in small caps and penny stocks.

At 5pm, the FBM KLCI was down 1.98 points to 1,517.38. Turnover was 1.49 billion shares valued at RM1.60 billion. There were 368 gainers, 364 losers and 359 stocks unchanged.

Among key regional markets, Japan’s Nikkei 225 rose 0.99% to 8,550.58, Hong Kong’s Hang Seng Index added 0.30% at 19,686.92 but South Korea’s Kospi shed 0.02% to 1,892.39 and Singapore’s Straits Times Index fell 0.79% to 2,793.53.

European markets were in the red as investors were worried about Greek bond talks and government debt sales, a day after economic data had raised hopes the global economy wouldn't slowdown as much as feared.

Reuters reported international creditors are set to meet the Greek government to resume the talks that broke down last week over the interest rate Greece will offer on new bonds and a plan to enforce investor losses. A deal with the private sector is vital to cash-strapped Athens if it is to avoid going bankrupt when 14.5 billion euros ($18.5 billion) of bond redemptions fall due in late March.

At Bursa Malaysia, the KLCI was trading between 1,513 and 1,519 and managed to close off its intra-day low of 1,513.

A fund manager said the markets had priced in the eurozone crisis and he expected to see more upside for the markets, albeit intermittent swings in trading conditions depending on the newsflow.

At Bursa Malaysia, he said there was some profit taking ahead of the Chinese New Year next week, especially on stocks which had run-up recently. He expected the market to hold steady at the current levels.

Among the heavyweights, Tenaga fell 13 sen to RM6.10 after reporting net losses in the first quarter ended Nov 30, 2011. MMHE shed 12 sen to RM5.32 on concerns about the uncertainties about its projects and delays.

Petronas Dagangan and Petronas Gas fell 10 sen each to RM17.40 and RM15.28.

EUPE was the top loser, down 14.5 sen to 48.5 sen, Ibraco 14 sen lower at RM1.30 and Ireka 12.5 sen to 66.5 sen in thin trade.

Poultry stock DBE was the most active with 138.96 million shares done, adding two sen to 11 sen while its warrants rose 1.5 sen to 6.5 sen.

BIMB, seen as the only Syriah-compliant banking stock, jumped 22 sen to RM2.24 in heavy trade with 10.21 million units done. BIMB-CB added 1.5 sen to 9.0 sen and BIMB-CC six sen to 17.5 sen. The two warrants accounted for 100 million units transacted.



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Syed Mokhtar selling Bank Muamalat?

KUALA LUMPUR (Jan 17): Business tycoon Tan Sri Syed Mokhtar AlBukhary has to fork out over RM3 billion for the entire purchase of PROTON HOLDINGS BHD [], the national car maker.

Industry players are speculating on his moves to obtain the funds to finance the purchase.

Yesterday, Syed Mokhtar's DRB-Hicom bought 42.7 per cent stake in Proton from Khazanah Nasional Bhd via a conditional sale at RM5.50 or RM1.29 billion cash.

Once the deal is completed, expected in two months, DRB-Hicom is obliged to undertake a general offer for the remaining Proton shares at the same price.

It will have to come up with another RM1.73 billion for the remaining 52.28 per cent comprising 314.48 million shares which are not owned by Khazanah.

With such huge amount of cash needed for Proton's purchase, industry observers are saying the tycoon may be looking at a few alternatives, which could include borrowings from foreign banks.

Another alternative is to dispose his assets. Could he be looking at disposing Bank Muamalat?

With the third round of liberalisation expected in the banking industry soon, analysts said smaller banks would be merged to create large and strong banks.

Hence, it makes sense to dispose Bank Muamalat if the bank is not a large entity sooner or later, smaller banks would have to be sold anyway.

DRB-Hicom is the holding company of Bank Muamalat Bhd, controlling a 70 per cent stake, while state asset manager, Khazanah Nasional Bhd, owns the remaining 30 per cent.

Bank Muamalat started operations on Oct 1, 1999, with combined assets and liabilities brought over from the Islamic banking windows of the then Bank Bumiputra Malaysia Bhd, Bank of Commerce (M) Bhd and BBMB Kewangan.

Last year, Bank Muamalat submitted a letter of expression of interest to BIMB HOLDINGS BHD [] (BIMB) to explore a potential merger with Bank Islam Malaysia Bhd but was rejected by the board of the latter. - Bernama



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Bank Islam working towards third IPO, says MD

KUALA LUMPUR (Dec 18): Bank Islam Malaysia Bhd is working towards its third initial public offer (IPO) in sync with efforts to increase its non-fund based income.

Managing Director Datuk Seri Zukri Samat said the bank completed listing of two companies on Bursa Malaysia earlier this year and was working hard in getting more mandates to increase its non-fund based income.

"We have submitted the application for the third IPO candidate and are waiting for approvals," he said.

He said Bank Islam was the only commercial bank approved by the Securities Commission to act as principal adviser to undertake corporate finance work such as initial public offerings and advisory services for mergers and acquisitions.

"This is our niche and it gives us a competitive edge in an industry where competition is getting stiffer, with 17 domestic and foreign Islamic banks in the country," he told BERNAMA in an interview.

As at Dec 31, 2010, Bank Islam was ranked No. 3 in terms of asset, with 11.4 per cent market share, behind Maybank Islamic and CIMB Islamic.

In terms of deposits, the bank maintained its No. 2 position, with 12.3 per cent market share.

Zukri said Bank Islam was very much a retail bank as 74 per cent of the bank's assets were consumer-based.

"Our competitors are not only Islamic banks but also conventional banks," he said.

Apart from capitalising on the competitive advantage as the only Islamic bank on the SC's approved advisers' list, Bank Islam is also leveraging on its strong branding.

"The brand name of Bank Islam is very strong, especially in the east coast. It's an open secret that whenever we open a branch in the east coast, the breakeven period is shorter than usual", Zukri said.

He said innovation was another key factor that had helped Bank Islam stay ahead of the competitive curve and it had scored many firsts in terms of product innovations.

Its "Transact on Palm" mobile banking service, said to be Malaysia's first mobile banking service that does not require internet access, has recorded close to 160,000 subscribers since it was launched about a year ago.

The bank plans to roll out a few more products next year.

"According to a study undertaken by an independent party, a customer who has more than three products with a particular bank, would likely stay with the bank.

"We are working hard to cross-sell our products to our existing customers and ensure that they will have more than one Bank Islam's products," he said.

By end-December, Bank Islam will operate 122 branches, with the latest branch in Pasir Tumbuh, Kelantan, and Ara Damansara, Selangor.

"The bank will open 28 more branches over the next three years. By 2014, we target to have 150 branches. By then, we will be operating at our optimum size," he said.

The new branches will be located in fast-growing townships like Sungai Buloh, Puchong, Ipoh and some areas in Sabah and Sarawak and new townships.

Zukri also maintains his confidence in the bank's financial performance for the current year.

"This year, we expect to record a good performance. The numbers for the January-September period are already equivalent to the 12 months of last year." he said.

Zukri, however, cautioned that the bank's next financial year would be a challenging one due to the economic uncertainties in Europe and the United States.

"The government has projected five to six per cent growth, which is good compared with other countries, but we have to be mindful of what is happening in Europe, the US and around the world.

"Given the current scenario, if the world's economy is going to perform as what many believe, we reckon that next year is a challenging year, but InsyaAllah (God willing), we will be able to perform satisfactorily," he added. - Bernama



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KLCI drifts lower at mid-morning

KUALA LUMPUR (Dec 14): The FBM KLCI drifted lower on Wednesday, marginally extending its losses at mid-morning in line with the overall weaker sentiment at key regional markets.

At 10am, the FBM KLCI fell 1.60 points to 1,463.79 at 10am.

Gainers edged losers by 178 to 171, while 200 counters traded unchanged. Volume was 337.92 million shares valued at RM154.64 million.

Asian shares drifted lower and the euro floundered near an 11-month low on Wednesday after the Federal Reserve failed to take any new steps to stimulate growth and offset the chilling effects of Europe's still-unresolved debt crisis, according to Reuters.

Wall Street stocks fell after the US central bank's final policy meeting of the year, at which the Fed noted modest improvement in the US economy but added that market turbulence in the face of Europe's woes posed a big risk, it said.

At the regional markets, Hong Kong’s Hang Seng Index lost 0.71% to 18,316.30,the Shanghai Composite Index fell 0.59% to 2,235.29, Singapore Straits Times Index was down 0.42% to 2,674.57, Japan’s Nikkei lost 41% to 8,517.57, South Korea’s Kospi fell 0.38% to 1,857.04 and Taiwan’s Taiex was down 0.31% to 6,874.73.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Wednesday said the FBM KLCI’s resistance areas of 1,467 and 1,493 would cap market gains, whilst the weaker support areas may be located at 1,448 and 1,462.

“Due to the US markets’ poorer tone last night, we will have a volatile day for the local index today with further profit taking and liquidation,” he said.

On Bursa Malaysia, KLK and BAT fell 26 sen each to RM22.84 and RM48.44, Tecnic down 21 sen to RM3.10, BLD PLANTATION []s fell 16 sen to RM7.14, Hong Leong Bank was down 14 sen to RM10.40, YLI and Astral Asia down eight sen each to 32 sen and RM1.40, while AMMB, Boustead and Cypark fell seven sen each to RM5.79, RM5.35 and RM1.35 respectively.

Among the gainers, Nestle added 50 sen to RM56.50, Dutch Lady rose 20 sen each to RM26.60, F&N up 18 sen to RM18.40, GAB 16 sen to RM13.14, BIMB 12 sen to RM1.85, Goldis, CI Holdings and Guan Chong rose 11 sen each to RM1.90, RM1.28 and RM2.22 respectively, Kumpulan Europlus gained seven sen to RM1.10, while DiGi added six sen to RM3.73.

Meanwhile, the actives included Sanichi, Envair, TFP, Kurnia Asia, OSK, Takaso and Proton warrants.



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BIMB call warrants see heavy trading interest, shares up

KUALA LUMPUR (Dec 19): The call warrants of BIMB HOLDINGS BHD [] saw heavy trading in the afternoon session on Tuesday, as traders focused on penny stocks with recent announcements.

At 3.35pm, BIMB was up 14 sen to RM1.84 with 9.03 million shares done. Its call warrants BIMB-CB added 4.5 sen to 10 sen with 29.84 million units transacted while BIMB-CC jumped 7.5 sen to 14 sen (29.50 million units).

The FBM KLCI fell 2.45 points to 1,464.65. Turnover was 1.30 billion shares valued at RM888.37 million. There were 286 gainers, 424 losers and 275 stocks unchanged.

Last Friday, BIMB announced it had targeted to achieve return on equity of 16% for the banking group under its headline key performance indicators for the financial year ending Dec 31, 2012. It also targeted return on assets of 1.5% for FY2012.

“These headline KPIs targets have been set and agreed by the board and management of BIMB group as part of a broader KPIs framework that the group has in place. The headline KPIs targets have been arrived at based on the targeted consolidated financial results of the group for FY2012,” it had said.



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BIMB targets return on equity of 16% for 2012

KUALA LUMPUR (Dec 9): BIMB HOLDINGS BHD [] targets to achieve return on equity of 16% for the banking group under its headline key performance indicators for the financial year ending Dec 31, 2012.

In a statement issued to Bursa Malaysia on Friday, BIMB said it was targeting return on assets of 1.5% for FY2012.

“These headline KPIs targets have been set and agreed by the board and management of BIMB group as part of a broader KPIs framework that the group has in place. The headline KPIs targets have been arrived at based on the targeted consolidated financial results of the group for FY2012,” it said.

On the outlook for the banking and financial services sector, BIMB said the uncertainties in the macro economic conditions were expected to be challenging which may affect the sector going forward.

The headline KPIs set by the group reflected its main corporate targets in pursuing sustainable financial results, it said.

BIMB said the announcement of headline KPI targets were under the government-linked companies’ transformation programme which were disclosed on a voluntary basis. However, it said the targets should not be construed as forecasts, projections or estimates of the group or representations of any future performance.



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