Positive external vibes prop KLCI higher, but index stays shy of 1,600-mark

KUALA LUMPUR (April 18): The FBM KLCI closed higher on Wednesday, in line with the firmer performance at key regional markets, which saw Japan’s Nikkei 225 rising 2%, but the local benchmark index stayed shy of the 1,600 point level.

Japan's Nikkei index rallied 2.1 percent on Wednesday on robust U.S. corporate earnings, firm demand for Spanish debt and an upbeat German economic sentiment survey, with signals that the Bank of Japan may take more easing steps also providing momentum, according to Reuters.

Mewnwhile, China shares also ended up 2% on Wednesday, the biggest one-day percentage rise in more than two months, led by finance and property sectors on expectations the government would ease monetary policy, it said.

The FBM KLCI was up 2.67 points to close at 1,598.86.

Gainers edged losers by 394 to 350, while 337 counters traded unchanged. Volume was 2.13 billion shares valued at RM1.62 billion.

At the regional markets, Jpan’s Nikkei 225 rose 2.14% to 9.667.26, the Shanghai Composite Inde gained 1.96% to 2,380.85, Hong Kong’s Hang Seng Index was up 1.06% to 20,780.73, South Korea’s Kospi added 0.97% to 2,004.53, Taiwan’s Taiex edged up 0.25% to 7,605.00 and Singapore’s Straits Times Index

Among the gainers on Bursa Malaysia, BAT rose 74 sen to RM55.20, United PLANTATION []s up 40 sen to RM25, Dutch Lady 38 sen to RM34.98, Subur Tiasa 26 sen to RM3.08, Carlsberg 24 sen to RM11.28, SAM Engineering and Can-One 20 sen each to RM3.79 and RM2m, while KESM and Hong Leong Industries added 18 sen each to RM2.18 and RM4.29.

Metronic was the most actively traded counter with 362.76 million shares done. The stock added two sen to 19.5 sen.

Other actives included Ariantec, SuperComNet, Focus, Naim Indah Corp, Sanichi, DVM, CSL, Asral Supreme and Tiger Synergy.

Decliners included Tradewinds, Tan Chong, KLK, Genting, Far East, PMB Tech, Aeon Credit and Tradewinds Plantations.



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KLCI takes a breather, Tenaga, Genting weigh

KUALA LUMPUR (March 6): Stocks on Bursa Malaysia took a breather on Tuesday as investors locked in recent gains, with profit taking seen in heavyweight Tenaga and Genting while key regional markets put on a lackluster performance after the weaker close on Wall Street.

At 10.04am, the FBM KLCI was down 2.79 points to 1,586.43. Turnover was 284.50 million shares valued at RM202.80 million. Losers led gainers 245 to 152 while 276 stocks were unchanged.

Reuters reported Asian shares and growth-linked currencies were under pressure on Tuesday as slowing economies in China and Europe and tension over Iran dampened sentiment, prompting investors to take profits from recent rallies that had been driven by ample liquidity.

CIMB Equities Research said that while the KLCI close to testing its all-time high of 1,597 in July 2011, it expected the index to face resistance.

“Only a successful close above the 1,600 psychological level could further lift prices towards a new heights at 1,620. Otherwise, we expect some consolidation to take place. On the downside, the 1,550 key support level is still a level to keep watch as it would eliminate all bullish potential if it is breached. There is also a minor support at 1,570,” it said.

Among the decliners were Tenaga and Genting, down six sen each to RM6.25 and RM10.70. Shell was the top loser, down 26 sen to RM10.12 but in very thin volume of 200 shares done.

PBB lost 26 sen to RM16.68, Oriental Holdings 13 sen to RM6.52, Can-One six sen to RM1.83, MBM Resources five sen to RM4.58 and Batu Kawan four sen to RM18.90.



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KLCI nears all-time high, Sime, CIMB lead

KUALA LUMPUR (March 5): The KLCI got off on a firm start on Monday, with the 30-stock index nearing the all-time high of 1,594 reached in July 2011.

The advance in the KLCI was driven by heavyweights Sime Darby and CIMB, as they extended their gains from last week on buying by fund managers following more upside for both companies.

At 10.49am, the KLCI was up 8.87 points to 1,592.65. Turnover was 496.51 million shares valued at RM444.84 million. There were 363 gainers, 209 losers and 268 stocks unchanged.

Maybank Investment Bank Research said it was lifting 2012 year-end KLCI target to 1,565 on raised market earnings post 4Q11 corporate results reporting and after imputing a higher crude palm oil average selling prices expectation.

“While corporate earnings outlook seems to have stabilised and a crisis appears to have been averted in the Eurozone, rising crude oil prices is a new concern, while on the domestic front, the 13th general election will lend to cautiousness,” it said.

Aeon was the top gainer, up 38 sen to RM9.38 while Tasek added 30 sen to RM9.11 and Oriental Holdings 25 sen to RM6.47. Other gainers were Can-One, up 20 sen to RM1.99, Panasonic 16 sen to RM22.16 and GAB 14 sen to RM13.64.

Sime Darby rose 16 sen to RM10.14 and CIMB 15 sen to RM7.48.

JP Morgan Research said Sime Darby remained its top large-cap Asean PLANTATION []s pick. It said Sime's 2QFY12 core net profit of RM1.032 billion (up 18% on-year) came in 12% ahead of consensus expectations of RM922 million.

Last Thursday, CIMB had signed an MoU for the proposed acquisition of cash equities, equity capital markets and corporate finance businesses of The Royal Bank of Scotland in Asia Pacific.



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See family alleges plagiarism in court judgment

KUALA LUMPUR (Feb 20): The lengthy legal battle between Kian Joo Can Holdings Sdn Bhd and CAN-ONE BHD [] took another twist, with the See family seeking a review of the Federal Court decision, alleging the court had "plagiarised" its grounds of judgment.

The See family's latest application was filed by their solicitor Messrs VK Lingam and Co on Feb 13. A copy of the documents was distributed to reporters on Monday.

The review application was supported by an affidavit affirmed by former KIAN JOO CAN FACTORY BHD [] (KJCF) managing director Datuk See Teow Chuan, who said the bid was filed because the Federal Court's grounds of judgment dated Jan 5 "consisted very largely and substantially the reproduction, without any attribution, of the respondents' first written submission".

See also alleged the Federal Court did not conduct an independent and impartial review of the evidence and law or engage in their own analysis.

To recap, on Feb 15, See and 13 others filed an application seeking the review of the Jan 5, 2012 Federal Court ruling that gave the nod for Can-One to buy the 32.9% stake of KJCF comprising of 146.13 million shares.

Can-One said it was informed by its solicitors that See and the 13 other applicants had applied for the Federal Court order to be reviewed and set aside.

The application was for the appeals to be re-heard by the Federal Court consisting of judges of the Federal Court other than those who heard and decided upon the appeals on Jan 5.

See and the 13 other applicants had also sought to restrain Ooi Woon Chee and Ng Kim Tuck from distributing the RM241.11 million from the sale of the 146.13 million KJCF shares to Can-One International Sdn Bhd.

They also applied for Can-One’s unit be restrained from selling and/or disposing of the whole or any part of the 146.13 KJCF shares purchased from Kian Joo Holdings pending the hearing and final disposal of the application.



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Can-One drops on stake sale impasse

Can-One Bhd, a maker of tin cans, dropped 5 per cent to RM1.70, headed for its lowest close since January 11.

See Teow Chuan, former managing director of Kian Joo Can Factory Bhd, and 13 others are seeking a review of the Federal Court’s ruling that allowed Can-One to buy a 32.9 per cent stake in Kian Joo, according to a stock-exchange filing.

Kian Joo fell 2.6 per cent to RM2.22. - Bloomberg



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Stocks to watch: Amway, Prestariang, Can-One, Mulpha Intl

KUALA LUMPUR (Feb 15): Stocks on Bursa Malaysia could see cautious trade after the FBM KLCI snapped its two-days of gains despite the firmer broader market.

However, lending support could come from the better-than-expected economic numbers where the fourth quarter 2011 GDP expanded at 5.2%. Economists had expected the 4Q2011 GDP to have expanded 4.5% on-year, driven by upbeat domestic demand.

Among the stocks to watch are Amway (Malaysia) Holdings Bhd, Prestariang Bhd, CAN-ONE BHD [] and Mulpha International following the latest corporate developments.

Amway’s net profit for the fourth quarter ended Dec 31, 2011 rose 36.1% to RM24.93 million from RM18.31 million a year earlier, due mainly to improved gross margin arising from the lower cost of products and lower operating expense.

Amway declared a fourth interim single tier dividend of nine sen net per share for the financial year ended Dec 31, 2011, to be paid on March 30, 2012. The company was adopting a dividend payout ratio of no less than 80% of the company’s current year net earnings from the financial year 2012.

For the financial year ended Dec 31, Amway’s net profit was up 14.9% to RM89.99 million from RM78.32 million in 2010, while revenue rose to RM735.81 million from RM719.41 million.

Prestariang posted net profit of RM10.55 million in the fourth quarter ended Dec 31, 2011, underpinned by strong demand for its information communications TECHNOLOGY [] (ICT) training. Its revenue was RM32.63 million. Its earnings per share were 4.80 sen. It proposed a final single-tier dividend of 4.0 sen per share.

For the financial year ended Dec 31, 2011, it reported net profit of RM33.61 million on the back of RM111.75 million in revenue.

The legal tussle between Can-One Bhd and Kian Joo Holdings Sdn Bhd resumed. The former managing director of KIAN JOO CAN FACTORY BHD [] (KJCF) Datuk See Teow Chuan and 13 others have filed an application seeking the review of the Federal Court ruling that gave the nod for Can-One to buy the 32.9 pct stake of KJCF.

Mulpha expects to record a one-off gain of about RM57.35 million from the sale of its 75% stake in Hong Kong listed Manta Holdings Company Ltd for HK$285 million (RM111.15 million).

Mulpha said its unit Jumbo Hill Group Ltd had on Tuesday entered into a sale and purchase agreement with Eagle Legend International Holdings Ltd to dispose of the stake, comprising of 150 million shares, at HK$1.90 a share.

Meanwhile, DENKO INDUSTRIAL CORPORATION [] Bhd saw Green Power Resources Ltd increasing its stake in the company. Green Power, which is based in Singapore, acquired 9.0 million shares in Denko on Feb 9 and increased its shareholding to 13.14% or 13.72 million shares. The shares were disposed of by Yong Boon Cheong at 30 sen each.

GD EXPRESS CARRIER BHD []'s net profit for the second quarter ended Dec 31, 2011 rose 30% to RM2.11 million from RM1.62 million a year earlier, due mainly to growth in customer base and increase in business from existing customers.



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Ex-Kian Joo MD, 13 others seek review of Federal Court ruling

KUALA LUMPUR (Feb 15): The former managing director of KIAN JOO CAN FACTORY BHD [] (KJCF) and 13 others have filed an application seeking the review of the Federal Court ruling that gave the nod for CAN-ONE BHD [] to buy the 32.9 pct stake of KJCF.

Can-One said on Wednesday it was informed by its solicitors that Datuk See Teow Chuan and the 13 other applicants had applied for the Federal Court order dated Jan 5, 2010 be reviewed and set aside.

It said its solicitors had on Monday received two notices of motion and the affidavits in support from Messrs V K Lingam & Co, who is acting on behalf of See and the applicants.

The application was for the appeals to be re-heard by the Federal Court consisting of judges of the Federal Court other than those who heard and decided upon the appeals on Jan 5.

To recap, Can-One Bhd said on Jan 5 it had won the legal tussle to acquire the 146.13 million KJCF shares held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour.

Can-One had then said the apex court had allowed its appeal to proceed with the completion of the acquisition of the 32.9% stake for RM241.11 million.

However, in the latest development, See and the 13 other applicants had sought to restrain Ooi Woon Chee and Ng Kim Tuck from distributing the RM241.11 million from the sale of the 146.13 million KJCF shares to Can-One International Sdn Bhd.

They also applied for Can-One International be restrained from selling and/or disposing of the whole or any part of the 146.13 KJCF shares purchased from Kian Joo Holdings Sdn Bhd pending the hearing and final disposal of the application.

Can-One said it would be opposing the applications and it was in the process of taking legal advice.



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Higher dividends for Kian Joo shareholders?

KUALA LUMPUR: Kian Joo Can Factory Bhd (KJCF), which has paid out half its earnings in dividends, could be even more generous considering its new controlling shareholder Can-One Bhd needs cash to pare down its high borrowings.

Can-One has raised borrowings to finance the acquisition of a 32.9% equity stake in KJCF costing RM241 million in cash.

The loan, which finances the share purchase, will effectively double Can-One’s existing borrowings to RM467 million, and raise net gearing to about 2.2 times, according to estimates by The Edge Financial Daily.

As at Sept 30, 2011, before the KJCF acquisition, Can-One had RM226.04 million in borrowings and RM11.84 million cash. With a shareholders’ equity of RM205.44 million, it then had a net gearing of 1.04 times.

“We believe Can-One would need additional cash inflow to pay off the loan interest. At this juncture, we reckon that Can-One will probably opt to receive dividends from KJCF to pay off its borrowings plus interest.

“As such, there is a possibility that with Can-One controlling KJCF now, the company may see a higher dividend payout in the future, benefiting minority shareholders of KJCF as well,” said Kenanga Research.

Kenanga estimates Can-One to incur interest expense of an additional RM28 million per annum on the borrowings to finance the acquisition of the KJCF stake.

The research house reckons that Can-One could increase KJCF’s payout ratio from the current 50% to 80%, which translates into 20.3 sen dividend per share (DPS) based on net profit forecast of RM112.8 million or 25.3 sen per share for FY11 ended Dec 31.

KJCF recorded a net profit of RM89.75 million or 20.21 sen per share for the nine months ended Sept 30.

With 146.1 million shares in KJCF, Can-One would receive about RM30 million in extra cash.

For FY10, KJCF declared a 55% dividend payout, amounting to 13.75 sen per share. KJCF posted a net profit of RM101.97 million or 22.96 sen per share for FY10.

Kenanga forecasts KJCF’s net profit to grow to RM132 million or 29.8 sen per share for FY12. Meanwhile, TA Research expects a net profit of RM143 million or 32.2 sen per share for FY12.

Assuming a payout ratio of 80%, KJCF could probably declare DPS of 23.8 sen to 25.7 sen. This will make KJCF an attractive dividend stock with a 10% yield based on its share price which closed at RM2.20 last Friday.

To recap, Can-One won the bid for a controlling 32.9% stake in its largest competitor KJCF in February 2009 at RM1.65 per share. But the See family, who founded KJCF, waged a legal battle to reject the share disposal.

After three years of courtroom tussles, the Federal Court ruled in favour of Can-One’s bid to purchase the stake on Jan 5.

The acquisition is considered a good bargain for Can-One as the price it paid was at more than 20% discount over the market value, and nearly 25% over its net asset per share of RM2.02.

With the large block of shares crossed via off-market last week, Can-One is now the single largest shareholder of KJCF. Can-One is expected to seek board representation at KJCF.

More generous dividend payments would probably be good news for other shareholders as well. Other substantial shareholders of KJCF are Kumpulan Wang Persaraan with 8.96%, and the Employees Provident Fund 7.94%.

Kian Joo Holdings Sdn Bhd, the investment vehicle of the See family, is left with 1.74%. The See brothers collectively own a 6.6% stake.

Apart from the steady cash flow generated from its can manufacturing business, KJCF has the option to divest its shareholding in Box-Pak (M) Bhd, a corrugate carton box manufacturer.

“If KJCF disposes of its 54.8% stake in Box-Pak at the previously rumoured price of RM3.20, Can-One could be getting about RM34.6 million as capital repayment at the level,” added Kenanga.

However, an analyst noted that at Kenanga’s rumoured price, Box-Pak would look very pricey, at 1.82 times book and a price-to-earnings ratio of 13.9 times, based on annualised earnings per share of 23 sen for FY11 ended Dec 31.

Box-Pak’s shares surged 28 sen or 11.9% to RM2.64 on a heavy volume of 1.91 million shares last Friday.

The stock is trading near its 12-month high, whose share price doubled over the past two months.

The possible dividends would come in handy for Can-One to at least cover its interest expenses.

However, Kenanga conceded that the move to raise dividends would only lift Can-One’s debt burden temporarily, and it is still uncertain how Can-One plans to pay off its huge borrowings in the long run.


This article appeared in The Edge Financial Daily, January 30, 2012.



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KLCI slips at mid-morning as regional rally takes a breather

KUALA LUMPUR (Jan 27): The FBM KLCI slipped at mid-morning on Friday, in line with the weaker sentiment at key regional bourses as markets took a breather from the recent rally.

At the global markets, a broad asset rally inspired by the US Federal Reserve's pledge to keep rates low paused on Friday, as investors sought to gauge how sustainable the burst of optimism will be while waiting for the outcome of crucial Greek debt talks, according to Reuters.

The FBM KLCI fell 3.74 points to 1,520.12 at 10am, weighed by losses at select blue chips.

Gainers edged losers by 235 to 205, while 252 counters traded unchanged. Volume was 538.98 million shares valued at RM369/81 million.

At the regional markets, Japan’s Nikkei 225 edged down 0.02% to 8,847.62 and South Korea’s Kospi shed 0.14% to 1,954.48, while Hong Kong’s Hang Seng Index added 0.24% to 20,487.90 and Singapore’s Straits Times Index gained 0.25% to 2,901.54.

BIMB Securities Research in a note Jan 27 said it was a mixed trading day on Wall Street on Thursday from a mixed batch of earnings and economic data in the US.

Lower new home sales, higher durable goods orders and higher jobless claims had all placed investors on an indecisive mode, it said.

As a consequence, the Dow Jones Industrial Average erased early gains to end the session 22 points lower, it said.

The research house said whilst negotiations in Athens are still ongoing, most European indices reversed their losses from the past few sessions to chalk up impressive gains possibly on a technical rebound.

As for Asia, equity performances remain strong with almost all closed on a high, it said.

“Locally, the FBM KLCI gained 4 points to close above the 1,520 mark with interests again centred on the lower liners and we expect the same for today.

“It is interesting to note that the MYR is gaining momentum against the greenback hovering at RM3.04/US$1 indicating that funds may be flowing back into the country again.

“Recent calls to overweight the PLANTATION [] sector are bearing fruits and our top calls are Hap Seng Plantations and TH Plantations which are still low on valuations,” it said.

Among the decliners on Bursa Malaysia, Genting Plantations fell 25 sen to RM9.40, TDM 13 sen to RM4.29, Fima Corp 12 sen to RM6.14, Hong Leong Industries nine sen to RM4.30, Public Bank eight sen to RM13.32, Kossan seven sen to RM3.40, while Aeon, Delloyd and Can-One fell six sen each to RM7.40, RM3.44 and RM2.03.

Gainers included IJM Corp, Scicom, Nestle, Hartalega, DRB-Hicom, AZRB, Amway, Shell and MISC, while the actives included TMS, Karyon, DBE Gurney, Jotech, UEM Land and DRB-Hicom.



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Banks, blue chips lift KLCI firmly higher

KUALA LUMPUR (Jan 26): The FBM KLCI closed firmly higher on Thursday as banking and blue chip counters rallied, while investors also nibbled on lower liner stocks.

The 30-stock index closed 4.10 points higher at 1,523.86.

At the regional markets, Hong Kong’s Hang Seng Index jumped 1.63% to 20,439.14, South Korea’s Kospi edged up 0.25% to 1,957.18 and Singapore’s Straits Times Index edged up 0.10% to 2,894.43, while Japan’s Nikkei 225 fell 0.39% to 8,849.47.

Financial markets in mainland China and Taiwan are shut for the Lunar New Year holiday this week and will resume trading on Monday.

Meanwhile, European shares rose on Thursday, halting two-days of losses, after the U.S. Federal Reserve said interest rates would remain low for a considerably longer period than expected and it was ready to offer additional stimulus to boost economic growth, according to Reuters.

On Bursa Malaysia, Genting PLANTATION []s added 37 sen to RM9.65, Tahps 32 sen to RM4.50, TDM and AutoV 21 sen each to RM4.42 and RM1.86, Batu Kawan, DRB-Hicom and AIC 20 sen each to RM19, RM2.50 and RM1.49, while Boxpak added 19 sen to RM2.36.

Among banking stocks, HLFG added 36 sen to RM12.26, Hong Leong Bank up 30 sen to RM11.60, Public Bank eight sen to RM13.40, AMMB three sen to RM5.82 and Maybank two sen to RM8.22.

DBE Gurney was the most actively traded counter with 130.3 million shares done. The stock added 1.5 sen to 14 sen.

Other actives included Karyon, Hibiscus, JCY, DRB-Hicom and Jotech.

Among the decliners, Dutch Lady fell 20 sen to RM25.58, Malayan Flour Mills 16 sen to RM3.87, Encorp and Nestle 10 sen each to 58 sen and RM56, APM Automotive and Can-One down eight sen each to RM4.60 and RM2.09, Top Glove seven sen to RM5.06, while Inno, Sungei Bagan and KLCCP lost six sen each to RM1.44, RM2.90 and RM3.30 respectively.



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Kian Joo stake sale completed

KUALA LUMPUR: Can-One Bhd finally got hold of 32.9% equity interest, or 146.1 million shares, in Kian Joo Can Factory Bhd (KJCF) from the See family via an off-market trade yesterday.

The news should lay to rest any remaining uncertainty over Can-One’s acquisition of the stake in KJCF at RM1.65 per share, which is at a 25.6% discount to yesterday’s closing price of RM2.22.

In fact, Can-One’s share price climbed further yesterday, setting a record high of RM2.17. Some 6.9 million shares changed hands on the open market.

It has been two weeks since the Federal Court ruled in favour of Can-One’s takeover of the See family’s 32.9% stake in KJCF.

The delay to the block of shares changing hands had raised uncertainty about whether Can-One was facing hurdles on the share purchase after a three-year tussle in the courtroom.

To recap, Can-One won the bid for its largest competitor, KJCF, three years ago at RM1.65 per share but the See family waged a legal battle to reject the share disposal.

Today, KJCF has net assets per share of RM1.96 and it is valued at 1.13 times book value based on yesterday’s closing of RM2.22.

As such, Can-One is buying KJCF at a discount of 0.84 times book value. Can-One only has to pay RM241 million for the KJCF block that is worth RM324.3 million based on yesterday’s closing price. This gives Can-One a paper gain of about RM83.3 million.

KJCF has a string of real estate assets in Malaysia and Vietnam with a total net book value of RM340.98 million, according to the company’s latest annual report.

With KJCF shares in hand, Can-One will no longer have to contemplate the See family’s potential “poison pill” of a rights issue.

The rights issue was announced in February 2011 and would have diluted the block of shares substantially if the See family decides not to subscribe to the cash call before selling to Can-One.


An analyst noted that Can-One’s acquisition will translate into better margins. Combined, both players will be able to command better prices as well as leverage their combined size for better prices from suppliers.

Analysts also said Can-One is getting a bargain as KJCF has a stable earnings track record, having expanded its production capacity in Malaysia and Vietnam. It also has improved future earnings prospects as it ventures into Indonesia.

As things stand, KJCF looks poised for a record year of profits.

TA Research forecasts KJCF’s FY11 net profit to rise to RM116.8 million, up 14.5% from RM101.98 million for FY10. Net profit for FY12 is expected to be RM143 million.

In line with that expectation, Kenanga Research forecasts KJCF’s net profit for FY11 to grow 10.6% year-on-year to RM112.8 million and hit RM132 million for FY12. Kenanga maintained its target price of RM2.38 with a “market perform” call on the counter.

Funding to acquire KJCF would not have been difficult to secure, as Can-One has bought an income-generating asset at a discount.

On the other hand, Can-One’s relatively weak cash position of RM11.85 million compared with its debt obligation of RM226.04 million may be a problem moving forward. Concern has been raised that the high gearing might prove challenging, particularly if Can-One should require additional funding at a later date.






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Can-One, Kian Joo shares retreat in early trade

KUALA LUMPUR (Jan 26): Shares of CAN-ONE BHD [] and Kian Joo Can Factory fell on Thursday, a day after the former said it had completed the acquisition of the 32.9% stake in KJCF for RM241.11 million cash consideration.

At 9.40am, Can-One fell nine sen to RM2.08 with 1.61 million shares done, while KJCF lost four sen to RM2.18 with 84,000 shares traded.

Analysts are expecting Can-One to make a general offer after securing the 32.9% block of KJCF.



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Stocks to watch: Can-One, Kian Joo, Hibiscus, KNM

KUALA LUMPUR (Jan 26): Markets would be on the lookout for signals from the Federal Reserve about its monetary policy on Thursday morning while the eurozone is still mired in crisis.

Concern over how Greece's debt talks will develop trumped any appetite for riskier assets on Wednesday, despite good economic data from Germany and a widely held view that the Federal Reserve is set to signal an extended period of ultra-low rates.

Reuters reported Wednesday that the Fed looked set to keep monetary policy on hold, even as it releases forecasts expected to show interest rates will be near zero for at least two more years.

It said given recent improvement in the U.S. economy, the central bank will probably remain non-committal regarding the prospect for additional bond purchases, but will leave the door open to further action if Europe's banking problems spill over into the United States.

At Bursa Malaysia, the broader market closed higher in late trade, despite the decline in the FBM KLCI due to losses in banking stocks.

Stocks which could see trading interest following the latest corporate news are CAN-ONE BHD [], KIAN JOO CAN FACTORY BHD [] (KJCF), Hibiscus Petroleum Bhd and KNM GROUP BHD [].

Can-One said on Wednesday it had completed the acquisition of the 32.9% stake in KJCF for RM241.11 million cash consideration.

Analysts are expecting Can-One to make a general offer after securing the 32.9% block of KJCF.

Hibiscus Petroleum, which was queried by Bursa Malaysia Securities Bhd after its securities jumped in very active trade on Wednesday, replied it was unaware of the reasons for the unusual market activity.

The shares closed 32 sen higher at RM1.52 with 53.58 million shares done while the warrants climbed 14.5 sen to 85 sen with 176.11 million units done.

KNM has proposed to acquire a company owning 55 acres of land at Storey's Bar Road, Peterborough, England for 25 million pound sterling or RM120 million.

It had signed an exclusivity agreement with Poplar Holdings Ltd for the grant of exclusivity to acquire the latter’s unit Poplar Investments Ltd which owns the 55 acres of vacant land.

KNM said the agreement was to secure exclusive rights to purchase the sale shares and indirectly own the land to build an 80 MW waste to energy plant.



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Can-One completes purchase of 32.9% stake in KJCF

KUALA LUMPUR (Jan 25): CAN-ONE BHD [] has completed the acquisition of the 32.9% stake in KIAN JOO CAN FACTORY BHD [] (KJCF) for RM241.11 million cash consideration.

Can-One said on Wednesday the acquisition of the 146.13 million KJCF shares from Kian Joo Holdings Sdn Bhd was deemed completed as all the conditions in the conditional shares sale agreement dated March 23, 2009 had been fulfilled.

Analysts are expecting Can-One to make a general offer after securing the 32.9% block of KJCF.

They added Can-One would be in a better position to increase the market share once its take control of KJCF.

To recap, Can-One announced on Jan 6 that it won the legal tussle to acquire the block of KJCF shares after a Federal Court ruled in its favour.



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KLCI holds steady at mid-day break, but struggles to breach 1,520

KUALA LUMPUR (Jan 20): The FBM KLCI held steady at the mid-day break on Friday but struggled to stay above the 1,520-point level, while most key regional markets extended their gains to fresh two-month highs.

At 12.30pm, the FBM KLCI rose 2.55 points to 1,519.36.

Gainers led losers by 358 to 237, while 305 counters traded unchanged. Volume was 989.06 million shares valued at RM645.76 million.

The ringgit edged up 0.05% to 3.1027 versus the US dollar; crude palm oil futures for the third month delivery gained RM16 per tonne to RM3,173, crude oil added 11 cents a barrel to US$100.50 while gold slipped US$1.32 an ounce to US$1,657.03.

At the regional markets, Japan’s Nikkei 225 rose 1.31% to 8,752.95, South Korea’s Kospi gained 0.95% to 1,933.16, Singapore’s Straits Times Index added 0.55% to 2,826.55, the Shanghai Composite Index up 0.37% to 2,304.59 and Hong Kong’s Hang Seng Index up 0.25% to 19,992.50.

On Bursa Malaysia, Petronas Dagangan added 20 sen to RM17.70, New Hoong Fatt up 17 sen to RM2.50, Yinson 15 sen to RM2.29, KLK and TDM up 14 sen each to RM24.92 and RM4.11, Can-One up 13 sen to RM2.13, Malayan Flour Mills, Batu Kawan and MPI added 12 sen each to RM7.80, RM18.78 and RM3.27 respectively, while Genting PLANTATION []s rose 11 sen to RM9.26.

DBE Gurney was the most actively traded counter after it confirmed that it was in talks with a shareholder of CI Holding Bhd which includes a private placement exercise.

The stock fell half a sen to 13 sen with 121.84 million shares done, while its warrants gained half a sen to 8 sen with 49.99 million units done.

Other actives included TMS, DVM, Compugates, Flonic, Utopia and Focus.

Decliners at mid-day included BAT, Nestle, Supermax, A-Rank, Cepco, Harvest Court, Dutch Lady, KrisAssets and Fututec.



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KLCI edges up at mid-morning but sentiment remains subdued

KUALA LUMPUR (Jan 20): The FBM KLCI edged up at mid-morning on Friday in line with the gains at key regional markets and positive overall sentiment at the US and European markets.

However, trading at the local bourse remained relatively subdued ahead of the extended weekend with the Chinese New Year holidays next Monday and Tuesday.

The FBM KLCI rose 2.27 points to 1,519.08 at 10am, lifted by select blue chips.

Gainers led losers by 256 to 135, while 229 counters traded unchanged. Volume was 442.37 million shares valued at RM164.34 million.

Asian shares extended their gains to fresh two-month highs on Friday as solid euro zone sovereign debt sales and signs of Greece moving closer to a vital debt-swap deal eased concerns over Europe's refinancing capability and boosted risk appetite, according to Reuters.

Upbeat earnings from more US banks and data confirming the US economy stayed on a recovery track also helped underpin sentiment, which has been improving since the start of the year, it said.

At the regional markets, Japan’s Nikkei 225 rose 1.3% to 8,751.79, Hong Kong’s Hang Seng Index added 0.40% to 20,022.30, South Korea’s Kospi was up 0.90% to 1,932.23, Singapore’s Straits rose 0.47% to 2,824.49 and the Shanghai Composite Index edged up 0.16% to 2,299.84.

Taiwan’s Taiex is closed until Jan 30.

BIMB Securities Research in a note Friday said European shares ended higher yesterday backed by solid demand for Spain's and France's bond auctions, and better than expected fourth-quarter earnings from Morgan Stanley and Bank of America.

In the US, stocks finished modestly higher posting a three-day rally, thanks to a better-than-expected jobless claims report and as financials rallied following BofA's earnings report, it said.

“The Dow Jones Index rose 45.03 points to close at 12,623.98.

“Back by the positive news flow and strong rally over in US and Europe, we shall expect a higher trading with immediate resistance 1,530 followed by 1,535 while support at 1,515 level,” it said.

On Bursa Malaysia, United PLANTATION []s was the top gainer at mid-morning and added 40 sen to RM20.50; MPI rose 15 sen to RM3.30, Petronas Dagangan and KLK up 14 sen each to RM17.64 and RM24.92, Dutch Lady and BAT 10 sen each to RM26 and RM49.90, Bonia nine sen to RM2.35, while Lafarge Malayan Cement and Can-One added eight sen each to RM6.81 and RM2.08.

DBE Gurney was the most actively traded counter after it confirmed that it was in talks with a shareholder of CI Holding Bhd which includes a private placement exercise.

The stock fell half a sen to 13 sen with 70.1 million shares done, while its warrants traded unchanged at 7.5 with 37.5 million units done.

Other actives included TMS, DVM, Flonic, Utopia, Fastrak and KHSB.

Decliners included F&N, A-Rank, Harvest Court, Fututec, Supermax and Coastal Contracts.



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Can-One, Kian Joo buck market on GO speculation

KUALA LUMPUR (Jan 16): Shares of CAN-ONE BHD [] and KIAN JOO CAN FACTORY BHD [] (KJCF)extended their rally on Monday as market talk of a general offer by Can-One for KJCF intensified.

At 3.08pm, Can-One was up 12 sen to RM2 with 12.07 million shares done while KJCF added eight sen to RM2.24 with 4.18 million units transacted.

However, the FBM KLCI fell 11.08 points to 1,511.99. Turnover was 873.85 million shares valued at RM678.80 million. There were 148 gainers, 554 losers and 244 stocks unchanged.

Expectations of a general offer by Can-One after it was given court approval to acquire the 32.9% block of KJCF had seen the stocks rallying.

However, analysts said Can-One would be in a better position to increase the market share once its take control of KJCF. However, they expected some profit taking after Can-One’s price surge.

They said Can-One was cheap currently based on the future business growth and investors should pick up the stock if there was a price correction.

As for KJCF, they said long-term investors should stay invested as the fundamentals remain robust.



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Stocks to watch: Hiap Teck, Mitrajaya, Frontken, Can-One, Kian Joo

KUALA LUMPUR (Jan 14): Key regional markets including Bursa Malaysia are likely to start off the new week on Jan 16 on a cautious note as the eurozone crisis drags on.

The latest move by Standard & Poor's to downgrade the long-term ratings on nine eurozone sovereigns will weigh on market sentiment.

S&P stripped France of its top AAA rating and downgraded of half the nations in the euro zone, which Reuters reported might complicate European efforts to solve a two-year old debt crisis.

“In our view, the policy initiatives taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the eurozone,” said S&P.

On Wall Street, stocks dropped on Friday, snapping a four-day winning streak on the downgrade.

The Dow Jones industrial average fell 48.96 points, or 0.39%, to 12,422.06 at the close. The Standard & Poor's 500 Index lost 6.41 points, or 0.49%, to 1,289.09. The Nasdaq Composite Index fell 14.03 points, or 0.51%, to 2,710.67.

For the week, the DJIA rose 0.5%, while the S&P 500 advanced 0.9%, and the Nasdaq gained 1.4%.

Reuters reported that investors will look to earnings next week for insight on how the euro zone's debt woes may affect profits.

At Bursa Malaysia, stocks which could see trading interest are HIAP TECK VENTURE BHD [], MITRAJAYA HOLDINGS BHD [], FRONTKEN CORPORATION BHD [], CAN-ONE BHD [] and KIAN JOO CAN FACTORY BHD [].

Meanwhile, The Edge weekly reports in its latest edition that the Genting group's partnership with the state of New York - in a proposed US$4 billion development that would house the largest convention centre in the US - would give it an edge when it comes time to bid for a full-fledged casino licence.

Snack and confectionery manufacturer Cocoaland’s earnings recovered last year, whether the company can sustain its performance in the current financial year will depend on its ability to pass on the additional costs incurred in production to customers.

Hiap Teck Venture’s additional 354.14 million new shares under its rights issue with the 88.53 million warrants will be listed on Monday.

Mitrajaya’s unit has secured two contracts worth a total RM33.41 million from Putrajaya Holdings Sdn Bhd for CONSTRUCTION [] jobs in Putrajaya. Pembinaan Mitrajaya Sdn Bhd was awarded contracts to build houses and shop offices in Precints 11 and 8 in Putrajaya.

Frontken executive chairman and managing director Wong Hua Choon has disposed of his whole stake of 59.50 million shares or 5.8% stake.

Wong sold all the shares at 12 sen in two blocks to its German shareholder Jorg Helmut Hohnloser on Friday. Its net asset per share was 21 sen. Hognloser’s shareholding increased to 28.8% or 290.99 million shares after he acquired the shares.

Can-One and Kian Joo would continue to see trading interest on market expectations that Can-One would likely launch a general offer for KJCH after securing the 32.9% block.



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Can-One, Kian Joo climb on mkt talk of possible GO

KUALA LUMPUR (Jan 13): Shares of CAN-ONE BHD [] and KIAN JOO CAN FACTORY BHD [] (KJCF) climbed on Friday afternoon on market expectations that Can-One would likely launch a general offer for KJCH after securing the 32.9% block.

At 3.46pm, Can-One was up 13 sen to RM1.91. There were 13.18 million shares done at prices ranging from RM1.77 to RM1.99.

KJCH rose 14 sen to RM2.15, the most in recent days. There were 3.61 million shares transacted at prices ranging from RM2.01 to RM2.15.

Last Thursday, Jan 5, Can-One won the legal tussle to acquire the 146.13 million KJCF shares held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour.

The apex court had allowed Can-One’s appeal to proceed with the completion of the acquisition of the 32.9% stake for RM241.11 million.

Market talk was that Can-One could then launch a general offer for the remaining shares in KJCF.

To recap, on Nov 16, 2011 Can-One said the Securities Commission had approved a further extension of times until May 6, to complete the proposed acquisition.

As at Sept 30, 2011, KJCF’s net asset per share was RM2.02. It had cash of nearly RM60 million.



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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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