KLCI up more than 23 points week-on-week

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

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

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

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

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

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

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

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

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

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

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

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



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

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

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

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

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

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

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

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

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

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

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

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

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



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KLCI closes lower as Asian markets dip

KUALA LUMPUR (March 28): The FBM KLCI closed lower on Wednesday as Asian markets slipped into the red, led by the Shanghai Composite Index that fell more than 2.5%.

The FBM KLCI fell 4.35 points to close at 1,583.75. Market breadth was negative with losers beating gainers by 491 to 244, while 350 counters traded unchanged. Volume was 1.56 billion shares valued at RM1.31 billion.

Asian markets were mostly in the red, as Hong Kong and China shares ended lower on Wednesday, as weak corporate earnings reports increased worries over the domestic economy, according to Reuters.

At the regional markets, the Shanghai Composite Index lost 2.65% to 2,284.88, Hong Kong’s Hang Seng index fell 0.77% to 20,885.42, Japan’s Nikkei 225 was down 0.71% to 10,182.57, South Korea’s Kopsi fell 0.39% to 2,031.74 and Singapore’s Straits Times Index shed 0.10% to 3,015.98.

On Bursa Malaysia, Southern Acids was the top loser and fell 20 sen to RM2.30, Hartalega fell 15 sen to RM7.95, Petronas Gas 14 sen to RM16.76 and MPI, 13 sen to RM3.12.

Fima Corp, Y&G, Toyo Ink and Coastal Contracts lost 12 sen each to RM6.11, 58 sen, RM1.46 and RM1.98 respectively.

Shares of Supercomnet extended their losses in active trade for the second day on Wednesday after the proposed disposal of an 18.66% stake by several major shareholders fell through. Supercomnet fell 15 sen to 21 sen with 110.9 million shares traded.

Other actives included Metronic, Utopia, Ariatec, IFCA MSC, Silver Bird, Ingenuity Solutions and Naim Indah Corp.

Gainers included Dutch Lady, BAT, Bintulu Port, Takaful, BLD PLANTATION []s, MAHB, Sungai Bagan, Manulife and SMPC.



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HDBSVR maintains Buy on Coastal Contracts, target price RM3.25

KUALA LUMPUR (Feb 27): HwangDBS Vickers Research (HDBSVR) is maintaining its Buy recommendation on Coastal Contracts with a target price of RM3.25.

It said on Monday that the 4Q11 net profit shrunk 7% on-year but up 41% on-quarter due to higher sales of lower-end vessels, which fetch lower margins (24% EBIT margin vs 4Q10’s 27%). Revenue was 8% higher on higher vessel sales recorded (13 units versus seven units in 4Q10).

As for the FY11 earnings, they were in line with market expectations at RM191 million.

“Besides its RM610 million outstanding order book as at January 2012 (which will last till end-2012), we expect further upside from additional sales through its business model of building ahead of demand,” it said.

HDBSVR said further, demand for offshore support vessels (OSVs) should be sustainable through strong replacement demand, as indicated by the divergence in utilisation rates of old fleets compared to new fleets.

“We believe Petronas’ increase in investment in the region will also benefit Coastal, given its solid track record and ability to supply new vessels within short lead times,” it said.



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Coastal Contracts breaking traditional boundaries

Coastal Contracts Bhd (Feb 3, RM2.40)
Maintain buy at RM2.29 with target price of RM3.25: Coastal has a healthy current order book of RM610 million, sustainable till 2012. We expect operating margins to fall to pre-2009 levels of about 20%, though vessel orders should remain strong on the back of increasing investments by Petroliam Nasional Bhd and replacement demand in the face of diverging utilisation rates between old and new fleets. The recent joint venture announced on Dec 22 last year between Coastal and various parties to bid for offshore oil and gas (O&G) contracts could jump-start the company’s fabrication segment on top of greater sales in Malaysia.

Coastal’s venture into higher value offshore supply vessels (OSVs) is evident as it is constructing two subsea vessels worth US$105 million (RM316 million) involved in pipe and platform servicing, to be completed in end-2013. Indonesia will be a key driver for Coastal, as we understand the company is venturing into the floating production, storage and offloading (FPSO) and LNG segments to tap into upstream markets. Coastal is tendering for a 20-year FPSO contract in Indonesia with a contract value that could potentially quadruple its existing order book. On the LNG front, Coastal is looking into a similar long contract but both will be mutually exclusive due to capital constraints. The company will likely seek debt (net cash position) and capital markets for financing.



Coastal’s FY12F price-earnings ratio of six times is unjustified against the regional average of 16 times. It remains a prime candidate for privatisation, considering its strong track record in performance delivery. The stock is supported by persistently high crude oil prices (hovering near US$96 per barrel) and offers a cheap proxy for the strong correlation. — HwangDBS Vickers Research, Feb 3


This article appeared in The Edge Financial Daily, February 8, 2012.



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HDBSVR sees KLCI lacking market direction

KUALA LUMPUR (Feb 8): HwangDBS Vickers Research said the FBM KLCI could see a lack of market direction when trading resumes on Wednesday but Genting Malaysia could see trading interest after the latest development over its casino venture in Florida.

“On the chart, the bellwether may swing sideways with a marginal downward bias, with its immediate support level pegged at 1,530,” it said in its market outlook.

HDBSVR said during the closure of the Malaysian stock exchange on Monday and Tuesday, regional peers posted a mixed performance.

Over the two-day period, Singapore was up 1.4%, Japan (+1.0%) and Korea (+0.5%) chalked up gains but Indonesia (-1.5%), China shares listed in Hong Kong (-0.9%) and Hong Kong (-0.3%) lost grounds. Meanwhile, Wall Street showed little changes with key U.S. equity indices closing between -0.1% and +0.2% since last Friday.

HDBSVR said stocks that may be of added interest include: (a) Genting Malaysia, as its casino venture plan in Florida in the U.S. could be disrupted by last Friday’s withdrawal of a casino gambling bill by its legislative sponsor; (b) Coastal Contracts, after a business weekly reported that it plans to penetrate into the upstream segment of Indonesia’s oil & gas sector; and (c) The Media Shoppe, which may secure a RM21m contract to design, supply and commission passenger information and closed-circuit television systems.



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KLCI reverses earlier losses, closes up 7.7 points

KUALA LUMPUR (Jan 30): The FBM KLCI reversed its earlier losses and rose in the final minutes of trade on Tuesday in line with the higher closing at regional markets, lifted by gains including at Petronas-linked counters and Genting.

The FBM KLCI rose 7.74 points to close at 1,521.29. For the month, however, the index fell 9.44 points from its closing of 1,530.73 on Dec 30 last year.

Gainers overtook losers by 415 to 394, while 353 counters traded unchanged. Volume was 1.78 billion shares valued at RM2.18 billion.

At the regional markets, the Shanghai Composite Index edged up 0.33% to 2,292.61, Hong Kong’s Hang Seng Index rose 1.14% to 20,390.49, Japan’s Nikkei 225 was up 0.11% to 8,802.51, South Korea’s Kospi was up 0.79% to 1,955.79 and Taiwan’s Taiex added 1.48% to 7,517.08, while Singapore’s Straits Times Index rose 0.64% to 2,906.69.

Meanwhile, European shares rose on Tuesday on hopes Greece was nearing a debt swap deal needed to avoid a messy default, while European leaders agreed on stricter budget discipline measures to help prevent further debt accumulation in the region, according to Reuters.

On Bursa Malaysia, Petronas Gas rose 48 sen to RM15.68, Petronas Dagangan 30 sen to RM18, Glenealy 24 sen to RM7.37, FIma Corp and Coastal Contracts 23 sen each to RM6.45 and RM2.30, Genting 22 sen to RM11.12, BLD PLANTATION []s and GAB 20 sen each to RM8.59 and RM12.40, while Malayan Flour Mills added 19 sen to RM4.33.

Among the decliners, MPI fell 20 sen to RM3.48, Perstima down 18 sen to RM3.72, United Plantations 16 sen to RM20.34, Advanced Packaging and Hong Leong Bank 14 sen each to RM1.18 and RM11.36, Nestle, APM Automotive, Lafarge Malayan Cement and Uzma lost 10 sen each to RM55.70, RM4.50, RM6.68 and RM1.76 respectively, while Asia File lost nine sen to RM3.61.

The actives included Coastal Contracts, DRB-Hicom, Compugates, Axiata, DBE Gurney, TMS and Mudajaya.



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KLCI extends losses, stays below 1,520-level

KUALA LUMPYR (Jan 19): The FBM KLCI extended its losses on Thursday and stayed below the 1,520-point level, lagging behind most Asian markets.

The index closed 0.57 of a point lower at 1,516.81.

Gainers edged losers by 378 to 370, while 325 counters traded unchanged. Volume was 1.94 billion shares valued at RM1.62 billion.

At the regional markets, the Shanghai Composite Index rose 1.31% to 2,296.08, Hong Kong’s Hang Seng Index added 1.3% to 19,942.95, Japan’s Nikkei 225 was up 1.04% to 8,639.68, South Korea’s Kospi up 1.19% to 1,914.97 and Singapore’s Straits Times Index edged up 0.57% to 2,811.20.

On Bursa Malaysia, Y&G fell 23 sen to 77 sen, Batu Kawan lost 20 sen to RM18.66, Triplc and Genting down 18 sen each to 41.5 sen and RM10.82, Nadayu 12 sen to RM1.06, Southern Acids and Kossan 11 sen each to RM2.21 and RM3.50, Asia File nine sen to RM3.65 while Amway and BIMB lost eight sen each to RM9.40 and RM2.16.

Among the gainers, MPI jumped 36 sen to RM3.15 after RHB Research upgraded the stock to Market Perform (from underperform) and raised its target price to RM2.79.

Other gainers include APM Automotive that added 20 sen to RM4.68, Glenealy 18 sen to RM6.55, Chin Teck 16 sen to RM8.76, TDM 15 sen to RM3.97, Coastal Contracts 12 sen to RM2.05, whiel Knusford, Hong Leong Bank and BRDB added 10 sen each to RM1.70, RM11 and RM2.23 respectively.

DBE Gurney was the most actively traded counter with 314.65 million shares done. The stock jumped 2.5 sen to 13.5 sen.

Other actives included TMS, JCY, Axiata, MBSV, Nextnation, Telekom and BIMB.



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Coastal: More wind in its sails

Coastal Contracts Bhd (Dec 16, RM1.92)

Maintain buy at RM1.79 with target price of RM3.25: Coastal scored RM233 million worth of vessel construction contracts — two offshore support vessels (OSV) for longtime client Tidewater Group, one OSV and two landing craft to customers from Nigeria and Malaysia (both new), and two barges from an Indonesian return customer. This brings its outstanding order book to RM610 million as at last Friday, with year-to-date order wins at RM690 million.

Though these contracts were certainly a welcome surprise to end the current year, earnings impact will only be felt in 2012, as Coastal has a policy of recognising revenue upon vessel delivery. Thus we absorb the above contracts into our FY12 order book assumption of RM710 million wins (33%). We retain our cautiously optimistic outlook for FY12 as margins shrink from continued excess OSV supply (especially in the less than 8,000 BHP range) while oil and gas activity could slow due to possible liquidity issues in Europe and the cascading effect on global markets.


We maintain our “buy” call on Coastal with RM3.25 target price, pegged to eight times FY12 earnings per share (EPS) of 40.5 sen. We like Coastal for its cheap valuations (4.4 times FY12F EPS against 12 times peer average and trading at slightly above -1 standard deviation of 3.2 times), consistency in delivering stellar results (43% compound annual growth rate for FY07 to FY10A earnings), net cash position with solid operating cash flows (RM196.7 million cash pile) and cost efficient business structure (circa 30% net margin). The stock price should be supported by persistently high oil prices (US$94per barrel as at last Thursday). — HwangDBS Vickers Research, Dec 16


This article appeared in The Edge Financial Daily, December 19, 2011.



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KL shares higher at midday

KUALA LUMPUR:Share prices on Bursa Malaysia were higher at mid-day today with plantation stocks leading gains, dealers said.

At lunch break, the FTSE Bursa Malaysia KLCI (FBM KLCI) rose 3.09 points or 0.21 per cent to 1,467.2.

Plantation stocks which retreated after a recent sell-off, saw the likes of PPB Group today, rising 26 sen to RM16.66 and KLK gaining 16 sen to RM22.28.

However, according to HwangDBS Vickers Research, the benchmark index will probably struggle to overcome the immediate resistance threshold of 1,475 moving ahead.

The research house reckons that the local bourse might not show much upside after outperforming regional peers yesterday.

It said the market could see an added interest in Proton on reports that it would be taken over at about RM6 per share and Coastal Contracts having secured RM233 million vessel contracts.

The Finance Index fell 4.68 points to 13,073.7 and the Plantation Index shed 7.91 points to 7,898.18 but the Industrial Index rose 8.63 points to 2,653.77.

The FBM Emas Index increased 10.75 points to 13,089.13, the FBM Mid 70 Index added 46.021 points to 11,077.41 and the FBM ACE Index gained 18.29 points to 4,132.49.

Gainers led losers by 324 to 291 with 274 counters traded unchanged.

Turnover stood at 974.25 million lots worth RM555.68 million.

For the actives, JCY-CD was flat at 31 sen, Proton-CG lost 3.5 sen to 54 sen and Proton-CH fell four sen to 46 sen.

Among heavyweights, Maybank declined two sen to RM8.21, Sime Darby rose four sen to RM8.99 and CIMB was up one sen at RM6.93. - Bernama



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Coastal gains on securing vessel deals

Coastal Contracts Bhd, a shipbuilder, rose the most in more than three weeks in Kuala Lumpur trading after securing contracts to sell RM233 million of vessels.

The stock gained 3.9 percent to RM1.86 at 9:04 a.m. local time, set for the steepest increase since Nov. 23. -- Bloomberg



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Coastal Contracts shares up as YTD order wins rise to RM690m

KUALA LUMPUR (Dec 16): COASTAL CONTRACTS BHD [] shares rose on Friday after its year-to-date order wins rose to RM690 million after the company secured new contracts worth RM233 million.

At 9.05am, Coastal Contracts added seven sen to RM1.86 with 67,900 shares traded.

The company said on Dec 15 that its units had secured contracts for the sale of three offshore support vessels, two landing crafts and two barges for a total of RM233 million.

“With this latest batch of contracts, the value of Coastal Group’s secured vessel sales orders currently stood at about RM610 million, with deliveries through 2012,” it said.

Coastal Contracts said the contracts were expected to contribute positively to its earnings for the financial year ending Dec 31, 2012.



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HDBSVR: Market may not show much upside

KUALA LUMPUR (Dec 16): Hwang DBS Vickers Research said the Malaysian bourse may not show much upside on Friday after outperforming its regional peers on Thursday despite the firmer overnight close on Wall Street.

Major equity indices on Wall Street rose slightly on Thursday, up between 0.1% and 0.4% at the closing bell, following the release of better manufacturing data and lower jobless claims in the U.S.

As for the benchmark FBM KLCI, it would probably struggle to overcome the immediate resistance threshold of 1,475 ahead.

In terms of share price actions for the day, HDBSVR said there could be added interest in Proton on news the national automaker is believed to be taken over at about RM6 per share by the major shareholders of UMW Holdings (despite an official denial by the company itself).

Also in focus could be Coastal Contracts, which secured RM233 million worth of vessel contracts.



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Stocks to watch: Coastal Contracts , Sanichi, Dialog, JCY

KUALA LUMPUR (Dec 16): Regional markets including Bursa Malaysia could trade on a cautious note on Friday as investors’ risk appetite for equities would be restrained by worries about the global economy and Europe's debt crisis but the firmer overnight close on Wall Street could provide some encouragement.

U.S. stocks rose on Thursday, as signs of strength in the economy and higher-than-expected profit at FedEx outweighed more warnings about Europe.

The Dow Jones industrial average was up 45.33 points, or 0.38 percent, at 11,868.81. The Standard & Poor's 500 Index was up 3.93 points, or 0.32 percent, at 1,215.75. The Nasdaq Composite Index was up 1.70 points, or 0.07 percent, at 2,541.01.

At Bursa Malaysia, stocks which could see trading interest include COASTAL CONTRACTS BHD [], SANICHI TECHNOLOGY [] BHD [], DIALOG GROUP BHD [] and hard-disk drive manufacturer JCY International Bhd.

Coastal Contracts’s year-to-date order wins rose to RM690 million after the company secured new contracts worth RM233 million for the sale of three offshore support vessels, two landing crafts and two barges.

“With this latest batch of contracts, the value of Coastal Group’s secured vessel sales orders currently stood at about RM610 million, with deliveries through 2012,” it said.

Sanichi, whose shares inched up in very active trade on Thursday, could see continued trading action. It received a letter of intent from China’s Guangxi Huayin to purchase 150,000 tonnes of steam coal per month, totaling 1.80 million tonnes for a one-year period.

Sanichi said Guangxi Huayin is one of the largest and most advanced aluminium producers in China and the shareholders include the Aluminium Corporation of China with a 33% stake.

Meanwhile Dialog Group Bhd, which is undertaking a cash call to raise funds for more investments in the upstream oil and gas opportunities, has fixed the rights shares at RM1.20 each and the exercise price of the warrants at RM2.40 each.

The issue price would be a discount of about 46% to the theoretical ex-rights price of RM2.23 per share, based on the five-day volume-weighted average market price (VWAMP)up to Dec 14 of RM2.43.

As for the warrants, it said the exercise price was 8% above the theoretical ex-rights price of RM2.23 per share, based on the five-day VWAMP up to Dec 14 of RM2.43.

JCY could see continued trading interest as it was not impacted by the severe floods in Thailand unlike other hard-disk drive manufacturers which had major operations in Thailand.

CIMB Equities Research said believed a full restoration to pre-flood production was at least six to nine months away, but suppliers with strong balance sheets to invest could benefit from greater allocations in the near term.

“Improvements in average selling prices (ASP) for drive makers should also be positive for the industry,” it said. It advised investors to be selective as it believed volume would remain hindered by component shortages.

“Buy JCY as we expect strong near-term earnings on higher ASPs and allocations,” it said.



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Coastal Contracts orderbook hits RM690m with new RM233m deals

KUALA LUMPUR (Dec 15): COASTAL CONTRACTS BHD []’s year-to-date order wins rose to RM690 million after the company secured new contracts worth RM233 million.

It said on Thursday that its units had secured contracts for the sale of three offshore support vessels, two landing crafts and two barges for a total of RM233 million.

“With this latest batch of contracts, the value of Coastal Group’s secured vessel sales orders currently stood at about RM610 million, with deliveries through 2012,” it said.

Coastal Contracts said the contracts were expected to contribute positively to its earnings for the financial year ending Dec 31, 2012.



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CIMB Research has technical sell on Coastal Contracts at RM1.84

KUALA LUMPUR (Dec 14): CIMB Equities Research has a technical sell on Coastal Contracts at RM1.84 at which it is trading at a price-to-book value of 1.2 times.

It said on Wednesday the rebound from its September’s low is at stake. If prices fail to hold on above the support trend line (now at RM1.83), there is a high possibility that the candles may slip towards RM1.77 and RM1.62 in the near term.

“Technical landscape remains lethargic. MACD signal line has flattened out while RSI is below the 50pts mark.

“Aggressive traders may want to lock in some profits now while others should only join the selling bandwagon when prices fall below the RM1.77 level. Put a buy stop at RM1.91, just in case,” it said.



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KL shares close lower

Shares of the following companies had unusual moves in Malaysia trading. Stock symbols are in parentheses and prices are as of the close in Kuala Lumpur.

The FTSE Bursa Malaysia KLCI Index fell 1.1 per cent to 1,431.55, its lowest since Oct. 12. The gauge dropped 1.6 per cent this week, its fourth weekly decline. The market will be shut on Nov. 28 for a public holiday.

Ann Joo Resources Bhd, a steelmaker, declined 4 per cent to RM1.90, its lowest level since Oct. 4. The company had a third-quarter net loss of RM24.5 million (US$7.7 million), compared with a profit of RM10.4 million a year earlier.

Coastal Contracts Bhd, a shipbuilder, slid 3.7 per cent to RM1.85, the steepest retreat since Nov. 1. Third-quarter profit dropped to RM36.7 million from RM53.6 million a year earlier.

Genting Bhd, a casino, power and plantation group, dropped 2.5 per cent to RM10.02, its lowest close since Oct. 25. Third-quarter net income fell 22 per cent from a year earlier to RM597.2 million.

MISC Bhd, the world’s largest owner-operator of liquefied natural gas tankers, sank 5.4 per cent to RM5.80, its lowest since Oct. 11. MISC said it will stop operating container vessels after the unit lost US$789 million in three years. The move will result in a one-off US$400 million charge this year, MISC said in a statement.

MNRB Holdings Bhd, a reinsurance company, dropped 7 per cent to RM2.66, the most since November 2008. MNRB had a second-quarter net loss of RM5.9 million, compared with a profit of RM21.3 million a year earlier.

Muhibbah Engineering (M) Bhd, a builder, added 1.9 per cent to RM1.09. Third-quarter net income doubled to RM16.8 million from a year earlier. -- Bloomberg



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Coastal Contracts drops most in a week

Coastal Contracts Bhd, a Malaysian shipbuilder, fell the most in a week in Kuala Lumpur trading after third-quarter profit dropped to RM36.7 million from RM53.6 million a year earlier. The stock slid 1.6 per cent to RM1.89 at 9:15 a.m. local time, set for its biggesst drop since Nov. 18. -- Bloomberg



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Coastal Contracts posts 32pc dip in Q3 pre-tax profit

Coastal Contracts Bhd recorded a 32 per cent dip in pre-tax profit to RM36.6 million for the third quarter ended September 30, 2011 against RM53.6 million recorded in the previous corresponding period.

The company registered a lower revenue of RM110.2 million for the same period compared with RM192.1 million registered in the corresponding quarter of last year.

In a filing to Bursa Malaysia, the company said its shipbuilding and ship repair division registered a lower revenue of RM108.6 million, versus RM188 million recorded in the previous corresponding period, due to less vessels delivered in the third quarter of the current financial year.

The revenue generated from its vessel chartering division dropped 61 per cent to RM1.6 million, from RM4.1 million registered in the same corresponding quarter, due to lower fleet utilisation rate, the company said.

Despite the growing concern over the Eurozone sovereign-debt crisis, Coastal Contract said crude oil price maintained around US$98 per barrel.

With the robust deepwater oilfield developments off the western coast of Sabah, the company is actively pursuing opportunities to diversify into the offshore structure fabrication business.

With the continued growth in committed exploration and production capital expenditure by oil companies, Coastal Group said it was modestly optimistic of clinching new contracts for offshore support vessels.

The group expects to redeploy its chartering fleet within Asia Pacific's niche market for coastal and inland waterway transportation to earn recurring income stream.

With net cash of RM180 million and substantially low gearing ratio of 2.3 per cent, as at end-September 2011, the group was on a solid financial footing which would shield it from the fickle market environment.

"Barring drastic adverse developments in the global and regional economies, Coastal Group is on track to achieve a reasonably satisfactory financial performance for 2011, backed by the shipbuilding division's solid vessel sales order book," the company added. -- Bernama



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CIMB Research has technical sell on Coastal Contracts

KUALA LUMPUR (Nov 21): CIMB Equities Research has a technical sell on Coastal Contracts at RM1.87 at which it is trading at a price-to-book value of 1.3 times.

It said on Monday that Coastal Contracts is hovering in a bearish flag pattern, suggesting that the rebound from its September’s low may not be sustainable.

“If prices fail to hold on above the support channel of the flag pattern (now at RM1.78), there is a high possibility that prices may fell towards RM1.70 and RM1.62,” it said.

CIMB Research said the recent rebound lifted MACD signal line towards the zero level but RSI has hooked downward. Hence, it thinks the bears are slowing picking up.

“Use any rebound towards the RM1.91-RM2.04 to sell into strength. Unless these levels are taken out, we will rather stick with the bear’s camp,” it said.



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