KLCI reverses earlier losses, closes slightly firmer

KUALA LUMPUR (Feb 3): The FBM KLCI recovered lost ground in the afternoon session on Friday and closed higher as gainers overtook losers, buying into blue chips including Petronas Gas and Sime Darby.

The 30-stock index added 1.68 points to close at 1,538.77.

Gainers led losers by 461 to 399, while 352 counters traded unchanged. Volume was 2.84 billion shares valued at RM2.32 billion.

Asian stocks were mixed, but gains were capped ahead of the economic and employment data scheduled for release later on Friday.

At the regional markets, the Shanghai Composite Index rose 0.77% to 2,330.40, Taiwan’s Taiex added 0.29% to 7,674.99, Hong Kong’s Hang Seng Index edged up 0.08% to 20,l756.98 and Singapore’s Straits Times Index gained 0.58% to 2,917.95.

Meanwhile, Japan’s Nikkei 225 fell 0.61% to 8,831.93 and South Korea’s Kospi lost 0.60% to 1,972.34.

European shares fell slightly on Friday, from six-month closing highs, as investors awaited U.S. jobs data for indications of the strength of the recovery in the world's biggest economy, according to Reuters.

On Bursa Malaysia, United PLANTATION []s jumped RM1.10 to RM21.80, Petronas Gas gained 32 sen to RM16.20, Tradewinds 29 sen to RM10.22, BLD Plantations and GAB 24 sen each to RM8.84 and RM12.64, Delloyd, Gamuda and Sime Darby gained 18 sen each to RM3.68, RM3.90 and RM9.46 respectively, while TDM added 15 sen to RM4.72.

Naim Indah Corp was the most actively traded counter with 260.5 million shares done. The stock rose nine sen to 18 sen.

Other actives included SAAG, DBE Gurney, Karambunai, Compugates, Petronas Chemicals, JCY and DRB-Hicom.

Decliners included KLK, Dutch Lady, F&N, Southern Acids, DKSH, SapuraCrest, Genting, Malayan Flour Mills and Genting Plantations.



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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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KLCI tapers down at mid-morning on mild profit taking

KUALA LUMPUR (Jan 18): The FBM KLCI slipped into negative territory at mid-morning on Wednesday on mild profit taking as investors began squaring off positions ahead of the extended weekend to celebrate the Chinese New Year next week.

At 10am, the FBM KLCI fell 2.19 points to 1,517.17, weighed by select blue chips.

Gainers edged losers by 209 to 185, while 229 counters traded unchanged. Volume was 361.96 million shares valued at RM185.82 million.

Asian shares and the euro steadied on Wednesday after sentiment improved on soothing economic data the day before, as focus returns to Europe with Portugal testing investor confidence in a debt sale and Greece resumes talks on its debt restructuring, according to Reuters.

European equities hit their highest in more than five months while gains in U.S. stocks were pared on Tuesday after Citigroup Inc reported an 11 percent drop in quarterly profit, as the European crisis battered capital markets and hurt the bank's trading revenue and fee-generating deals, it said.

At the regional markets, Japan’s Nikkei 225 rose 0.11% to 8,476.12, Hong Kong’s Hang Seng Index added 0.14% to 19,654.70, the Shanghai Composite Index was up 0.17% to 2,302.31 and Taiwan’s Taiex gained 0.24% to 7,238.25.

Meanwhile, South Korea’s Kospi fell 0.22% to 1,888.53 and Singapore’s Straits Times Index shed 0.19% to 2,810.36.

BIMB Securities Research in note Jan 18 said that investors’ risk appetite had expanded, adding that despite the looming Greece debt default and the recent downgrade of some European credit ratings, equity markets both in the US and Europe advanced buoyed by positive economic news.

Unlike previously, the positives now carry higher multiplier effects than the negatives, it said.

Reflecting the improved sentiments, yields of Italy, Germany and Spain had all declined, it said.

The research house said most European bourses closed higher overnight with the Dow Jones Industrial Average upped 60 points despite off its intra-day high.

Regional performances were also on a high with most ended the day on positive tone possibly from improved opening over in Europe, it said.

“Locally, the FBM KLCI rose 10 points yesterday to close above its immediate resistance of 1,515 at 1,519.36.

“We reckon there are funds out there snapping at equities on weakness and see the index to remain resilient. We may see the next immediate resistance of 1,525 level breached today,” it said.

On Bursa Malaysia, Petronas Dagangan was the top loser at mid-morning and fell 34 sen to RM17.16; Ireka and Eupe fell 13 sen each to 66 sen and 50 sen, Tenaga down 12 sen to RM6.11, Malayan Flour Mills and Maybank nine sen each to RM7.68 and RM8.20, United PLANTATION []s and PPB six sen each to RM20 and RM16.94, while Sapura Industrial and Delloyd fell five sen each to RM1.40 and RM3.38.

DBE Gurney was the most actively trade counter with 49.3 million shares done. The stock gained one sen to 10 sen.

Other actives included XDL, E&O, BIMB, Compugates, Mudajaya and Maybulk.

Gainers at mid-morning included BAT, Sungei Bagan, Batu Kawan, HLFG, Carlsberg, Parkson, Genting, CCM and Mudajaya.



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Delloyd Ventures expands bus chassis business

KUALA LUMPUR: Diversified Delloyd Ventures Bhd plans to expand its commercial bus and chassis manufacturing business in Malaysia, following its success in Indonesia.

Group managing director Datuk Seri Tee Boon Kee told The Edge Financial Daily that the group had already made a prototype of the chassis of the compressed natural gas (CNG) buses it is now manufacturing in Indonesia to be submitted to the local authorities.

The prototype buses will then be subject to test runs and authority approvals, he said.

“We wanted to complete the prototype and submit it last year but we were occupied with a delivery,” he added.

Other than Malaysia and Indonesia, Delloyd Ventures has automotive parts and component manufacturing operations in Thailand.

The group ventured into the commercial vehicle manufacturing industry in 2008 through the acquisition of a 51% stake in PT Asian Auto International (PTAAI), Indonesia.

PTAAI is involved in the manufacturing and assembly of the Komodo brand of buses and articulated CNG buses for TransJakarta, the bus rapid transit system in Jakarta.

At present, the group only manufactures the chassis while PTAAI builds the body of the bus. The group last year secured a contract for 23 buses for a sum of RM32 million.

Apart from manufacturing automotive components the group also distributes Proton, Suzuki, Hyundai and Brilliance Auto’s Jinbei vans.

Although the auto parts division incurred losses, higher sales of Proton Saga and Persona units contained the losses to below RM1 million in FY09, and the division is now in the black with a profit of RM600,000 for FY11.

Tee said the group plans to spend about RM10 million on new moulds and machinery for its original equipment manufacturing business this year, adding that there is unlikely to be any major capital expenditure. The company has also diversified into plantations as a new engine of growth.

In 2006, the group acquired a 60% stake in PT Rebinmas Jaya, which owns three oil palm plantations in Pulau Belitung, Indonesia. The total planted area is 14,422ha as at September 2011, of which 6,945ha are matured trees.

It also has a 1,449ha plantation in Sungai Rambai, Selangor, with a mature acreage of 1,210ha or 83% as at September 2011.

Delloyd Ventures plans to double its revenue from the plantation segment in three years on higher fresh fruit bunch yield from its Indonesian estates.
“We are taking time to acquire new landbank as prices are still very high,” Tee said.

For the Malaysian plantation operations, the group wants to replant an average of 100ha annually over the next seven years and to complete the replanting of trees which are over 25 years of age by 2021.


This article appeared in The Edge Financial Daily, January 11, 2012.



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