KLCI crosses 1,590-level as blue chips lift

KUALA LUMPUR (May 8): The FBM KLCI closed higher on Tuesday on some mild bargain hunting while regional markets ended mixed, albeit recovering from sharp decline on Monday after election results in Europe spooked investors.

The FBM KLCI rose 5.73 points to close at 1,590.60 on Tuesday, lifted by gains including at BAT, Petronas-linked counters and Genting.

Gainers beat losers by 404 to 307, while 357 counters traded unchanged. Volume was 1.27 billion shares valued at RM1.24 billion.

Uncertainty over the implications of the Greek and French elections for Europe's efforts to resolve its debt crisis sent the euro and shares lower on Tuesday and supported safe-haven German government bonds, according to Reuters.

Attention is focused on Greece where politicians are struggling to form a government after voters plunged their country into limbo in Sunday's election. The uncertainty has reignited fears its hard-fought bailout deal could unravel, forcing the country's exit from the euro, it said.

At the regional markets, the Shanghai Composite Index shed 0.12% to 2,448.88, Hong Kong’s Hang Seng index was down 0.25% to 20,484.75, while Japan’s Nikkei 225 rose 0.69% to 9,181.65, South Korea’s Kospi gained 0.54% to 1,967.01, Taiwan’s taiex added 0.10% to 7,545.71 and Singapore’s Straits Times Index.

On Bursa Malaysia, BAT and Petronas Dagangan added 52 sen each to RM55.68 and RM19.94, Tasek and Dutch Lady were up 26 sen each to RM9.29 and RM33.30, Kulim 21 sen to RM4.45, MKH 20 sen to RM2.40, GAB 18 sen to RM13.34, Ekovest 17 sen to RM2.65, Iretex 16 sen to RM1.30, Permaju 14.5 sen to 87.5 sen, Petronas Gas 14 sen to RM17, Genting 10 sen to RM10.66 and Petronas Chemicals two sen to RM6.57.

Ariantec was the most actively traded counter with 76.74 million shares done. The stock fell half a sen to 24.5 sen.

Other actives included Naim indah Corp, Compugates, Sanbumi, TMS, Harvest, Permaju, JCY and Metronic.

Decliners included Jaya Tiasa, Toyo Ink, MMHE, Lafarge Malayan Cement, Sarawak Oil Palms, JCY, Top Glove, Ibraco and IJM land.



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KLCI stays in the black at mid- day break

KUALA LUMPUR (May 8): The FBM KLCI reversed its earlier losses and stayed in positive territory at the mid-day break on Tuesday, in line with most key regional markets that shrugged off jitters from a day earlier following election results in Greece and France.

The FBM KLCI added 2.75 points to 1,587.62 at the mid-day break, lifted by gains at select blue chips.

Gainers outpaced losers by 302 to 272, while 332 counters traded unchanged. Volume was 620.94 million shares valued at RM467.71 million.

The ringgit strengthened 0.01% to 3,0543 versus the US dollar; crude palm oil futures rose RM28 per tonne to RM3,374, crude oil shed two cents per barrel to US$97.92 and gold fell US$1.63 an ounce to US$1,636.93.

Shares recovered on Tuesday from the previous day's plunge, as sentiment improved on hopes Spain would use public funds to bolster its struggling banks, although persistent wariness over Greece weighed on the euro, according to Reuters.

MSCI's broadest index of Asia-Pacific shares outside Japan inched up 0.1 percent, having slid more than 2 percent the day before for its worst daily fall in about five months and hitting its lowest in about three months, it said.

At the regional markets, Japans’ Nikkei 225 gained 0.68% to 9,180.87, South Korea’s Kospi added 0.50% to 1,966.13, Singapore’s Straits Times Index was up 0.42% to 2,937.16 and Taiwabn’s Taiex edged up 0.13% to 7,548.19.

Meanwhile, the Shanghai Composite Index lost 0.65% to 2,435.90 and Hong Kong’s Hang Seng Index shed 0.05% to 20,525.90.

On Bursa Malaysia, BAT was the top gainer and rose 70 sen to RM55.86, Kulim 24 sen to RM4.48, Tasek 20 sen to RM9.23, Ekovest 17 sen to RM2.65, MSM 16 sen to RM5.34, Atlan 13 sen to RM4.39, Tong Herr and Permaju 11 sen each to RM2.51 and 84 sen, whiel Nakamichi and Multico added 10 sen each to 76 sen and RM1.25.

Menawile, Genting rose eight sen to RM10.64, Genting PLANTATION []s six sen to RM9.50 and Petronas Chemicals up three sen to RM6.58.

TMS was the most actively traded counter with 41.34 million shares done. The stock added half a sen to 9.5 sen.

Other actives included Sanbumi, Ariantec, JCY, Permaju, Naim Indah Corp and Metronic.

Decliners in the morning session included Jaya Tiasa, Toyo Ink, Lafarge Malayan Cement, PPB, JCY, Sarawak Oil Palms, IJM Land, MMHE, Texchem and OIB.



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Malaysian shares down on European debt concerns

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

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

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

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

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

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

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



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KLCI pares down gains at mid-day

KUALA LUMPUR (March 27): the FBM KLCI pared down some of its gains at the mid-day break on Tuesday while key regional markets mostly rebounded on the back of the firmer overnight close at Wall Street.

Asian stocks rebounded on Tuesday and the dollar struggled after Federal Reserve Chairman Ben Bernanke said ultra-loose monetary policy was still needed to reduce unemployment even though the U.S. economy has shown signs of improvement, according to Reuters.

Wall Street stocks had risen more than 1 percent on Bernanke's comments, which supported views that easy monetary policy would remain in place for some time and fanned expectations for more asset purchases by the U.S. central bank, it said.

The FBM KLCI was up 5.20 points to 1,588.18 at the mid-day break, lifted by gains at select blue chips. The index had earlier risen to its intra-morning high of 1,591.03.

Losers edged gainers by 334 to 311, while 333 counters traded unchanged. Volume was 1.09 billion shares valued at RM726.26 million.

The ringgit strengthened 0.33% to 3.0697 versus the US dollar; crude palm oil futures for the third month delivery rose RM3 per tonne to RM3,462, crude oil fell 28 cents par e barrel to US$106.75 and gold lost US$3.15 an ounce to US$1,686.93.

At the regional markets, Japan’s Nikkei 225 rose 1.56% to 10,174.10, Hong Kong’s Hang Seng Index gained 1.37% to 20,951.20, the Shanghai Composite Index edged up 0.20% to 2,355.29, Taiwan’s Taiex was up 0.42% to 8,001.40, South Korea’s Kospi rose 0.60% to 2,031.27 and Singapore’s Straits Times Index added 0.85% to 2,999.72.

On Bursa Malaysia, Dutch Lady rose 60 sen to RM32, F&N was up 28 sen to RM18.54, Petronas Dagangan gained 24 sen to RM18.72, HLFG 18 sen to RM12.30, Genting PLANTATION []s 16 sen to RM9.41, MPI 15 sen to RM3.28, Petronas Gas and KLK up 14 sen each to RM16.88 and RM24, Amway 11 sen to RM9.81 and Ekovest 10 sen to RM2.70.

Metronic was the most actively traded counter with 152.12 million shares done. The stock rose 2.5 sen to 23 sen.

Other actives included Ariantec, Supercomnet, Frontken, Oversea Enterprise, Focus, TMS, Edusopec and Flonic.

Decliners this morning included Nestle, Supercomnet, SMPC, NISC, Top Glove, Favelle Favco, Allianz, AirAsia and Kossan.



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FBM KLCI slips into the red, rebounds towards midday

KUALA LUMPUR (March 19) : Malaysian equities briefly slipped into the red before rebounding into positive territory towards midday. Analysts have a downside bias perception on the technical dynamics of the FBM KLCI until more domestic catalysts emerge to arrest the weakness in the local market.

For now, they said external news flow, especially, more positive economic data from the US should give a boost to Asian equities. These include the anticipation of better housing market figures from the world’s largest economy this week.

At 12.30pm, the 30-stock-FBM KLCI rose 2.25 points to 1,573.65 with some 1.05 billion shares worth RM658 million traded. The index which had reached an intraday high of 1,574.3 points earlier had declined to an intraday low of 1,570.88 points.

Across the exchange, there were 265 gainers versus 363 decliners while 287 stocks were unchanged.

Top gainers include PETRONAS GAS BHD [] which added 38 sen to RM16.38 followed by EKOVEST BHD [] which gained 16 sen to RM2.75.

Decliners include NESTLE (M) BHD [] which fell 20 sen to RM55.80 while AEON CREDIT SERVICE (M) BHD [] was also down by a similar quantum to RM9.20.

Most active was Ariantec Global Bhd which added 2.5 sen to 12 sen with some 133 million shares done.

Comments from International Monetary Fund managing director Christine Lagarde over the weekend had offered support to Asian equities on Monday morning. Lagarde said the world economy has stepped back from the brink of danger and signs of stabilisation are emerging from the euro zone and the US.

She, however, warned that high debt levels in developed economies and rising crude oil prices are still crucial risks for the global backdrop.

Major Asian stock indices saw gains towards midday. Japan’s Nikkei 225 climbed 0.26% to 10,156.1 points , Hong Kong’s Hang Seng was up 0.27% to 21,375.6 while Australia’s S&P/ASX 200 gained 0.51% to 4,298.1



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KLCI drifts higher at mid-morning

KUALA LUMPUR (March 13): The FBM KLCI drifted slightly higher, lifted by select blue chips at mid-morning on Tuesday in line with the limited gains at key regional markets.

Meanwhile, at the regional markets most market players were on the sidelines awaiting the outcome of a Federal Open Market Committee meeting later in the day, according to Reuters.

The FBM KLCI added 2.47 points to 1,567.22 at 10.05am. Gainers led losers by 198 to 187, while 276 counters traded unchanged. Volume was 252.62 million shares valued at RM166.43 million.

At the regional markets, Japan’s Nikkei 225 rose 1.14% to 10,002.90, Hong KONG’s Hang Seng Index added 0.77% To 21,297.40, the Shanghai Composite Index edged up 0.05% to 2,436.08, Taiwan’s Taiex gained 0.82% to 7,992.51, South Korea’s Kospi was up 1.15% to 2,025.52 and Singapore’s Straits Times Index added 0.52% to 2,977.65.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients said the resistance areas of the KLCI at 1,564 and 1,583 would cap market gains, whilst the weaker support areas were at 1,540 and 1,559.

“Despite the US markets’ rebound last night, we could be in for a weaker day locally,” he said. The KLCI fell 14.25 points to close at 1,564.75 on Monday.

On Bursa Malaysia, BAT was the top gainer, up 40 sen to RM52.40, Ekovest added 15 sen to RM2.75, Sin Heng Chan gained 13.5 sen to 94 sen, LPI Capital 10 sen to RM13.66 and Tradewinds PLANTATION []s nine sen to RM4,64.

Petronas Chemicals and GAB up eight sen each to RM6.64 and RM13.38, Vintage 7.5 sen to 13 sen, Axiata six sen to RM5.10 while Hoover added five sen to 36 sen.

Naim Indah Corp was the most active with 52.94 million shares done. The stock fell half a sen to 72 sen.

Other actives included Winsun, Takason, Tiger Synergy, XDL, Sanichi and Sumatec.

Decliners included Theta warrants, Allianz warrants, UAC, MISC, Carlsberg, tradewinds, Johore Tin, BLD Plantations, AMMB and Hong Leong Bank.



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KLCI pauses in line with regional markets

KUALA LUMPUR (March 12): The FBM KLCI slipped at mid-morning on Monday in line with the cautious sentiment at most regional markets.

Asian shares fell on Monday as investors paused to assess the effect of strong U.S. jobs data, which scaled back expectations for more easing ahead of this week's Federal Reserve meeting, while concerns over China's slowdown also weighed on sentiment, according to Reuters.

The FBM KLCI shed 0.90 of a point to 1,578.10 at 10am, weighed by losses at select blue chips.

Gainers led losers by 219 to 165, while 221 counters traded unchanged. Volume was 310.96 million shares valued at RM194.03 million.

At the regional markets, Japan’s Nikkei 225 was up 0.25% to 9,955.00, Hong Kong’s Hang Seng Index edged up 0.01% to 21,087.90, the Shanghai Composite Index added 0.09% to 2,437.29, , and Singapore’s Straits Times Index added 0.15% to 2,967.70, while South Korea’s Kospi fell 0.40% to 2,010.20, Taiwan’s Taiex was down 0.07% to 8,010.31.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Monday said The FBM KLCI lost 4.78 points and closed at 1,579.00 last Friday.

The weaker support areas for the FBM KLCI are in the 1,530 to 1,572 zone, he said.

“The next resistance levels of 1,579 and 1,597 may see heavy liquidation activities,” he said.

On Bursa Malaysia, decliners at mid-morning included Sunchirin that fell eight sen to RM1.40, Petronas Chemicals down sevens sen to RM6.77. Media Prima, KLK and Kulim lost six sen each to RM2.65, RM23.34 and RM4.20 respectively, whiel Bursa and Public Bankl fell four sen each to RM7.38 and RM13.70,

Naim Indah Corp was the most actively traded counter with 83.4 million shares done. The stock added six sen to 70.5 sen.

Other actives included HLS Corp, HWGB,Key West, and Hubline.

Gainers included Petrol One that rose 30 sen to RM1.15, Ekovest up 21 sen to RM2.78. Nice 15.5 sen to 51 sen, Tecnic 15 sen to RM3.85, Lafarge Malayan Cement and Bonia 12 sen each to RM7.37 and RM2.64, P.I.E 11 sen to RM4.75, UMW 10 aen to RM7.30 and NWP eight sen to 24 sen.



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Stocks to watch: Silver Bird, MAS, Proton, Ekovest

KUALA LUMPUR (March 1): Blue chips could extend their gains on Thursday, as regional market sentiment would receive the boost after the European Central Bank provided 530 billion euros (US$711 billion) of cheap funding for banks.

The ECB's Long Term Refinancing Operation (LTRO) has been a major factor behind the rally in European equities since the turn of the year.

A total of 800 banks borrowed money at the tender, the second round of three-year funds, with demand exceeding the 500 billion euros expected by traders polled by Reuters.

At Bursa Malaysia, the FBM KLCI was up 12.92 points or 0.83% to close at 1,569.65, its highest since July 2011.

However, the losses from MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and PROTON HOLDINGS BHD [], which were expected by the market, could have some impact.

SILVER BIRD GROUP BHD [], which resumes trading on Thursday, cautioned investors in the trading of its securities after the auditors have expressed a disclaimer opinion on the company’s latest audited accounts for the financial year ended Oct 31, 2011.

Silver Bird Group suspended its group managing director, Datuk Tan Han Kook and two other key executives effective Feb 24 as it undertakes an internal inquiry into allegations of irregularities in the company’s accounts.

Meanwhile, MAS posted net losses totaling RM1.277 billion in the fourth quarter ended Dec 31, 2011 versus net profit of RM225.92 million a year ago as it severely affected by high fuel costs and non-fuel expenses.

Proton posted heavier net losses of RM88.20 million in the third quarter ended Dec 31, 2011 compared with the net loss of RM60.10 million a year ago due to a decline in year-end sales.

Other stocks to watch are SIME DARBY BHD [], KENCANA PETROLEUM BHD [], MAH SING GROUP BHD [], and EKOVEST BHD [].

Sime Darby reported net profit of RM1.10 billion in the second quarter ended Dec 31, 2011. For the first half, it reported a 42% increase in net profit to RM2.175 billion from RM1.531 billion in the previous corresponding period.

Kencana Petroleum Bhd has secured a RM74 million contract from ExxonMobil Exploration and Production Malaysia (EMEPMI) to fabricate the substructure for a platform off Terengganu.

Mah Sing Group Bhd expanded its land bank with the latest acquisition of 157 acres (63.4 ha) in Bandar Kundang, Gombak for RM40.94 million about RM6 per sq ft. It proposed to build a self-contained, secured lifestyle township named M Residence 2@Rawang with a gross development value of about RM650 million.

Ekovest's earnings soared 615.82% to RM11.31 million for its second quarter ended Dec 31, 2011, from RM1.58 million a year ago, due to increased revenue from its CONSTRUCTION [] arm.

Malaysia Steel Works (KL) Bhd posted net losses of RM13.33 million in the fourth quarter ended Dec 31, 2011 compared with net profit of RM8.99 million a year ago. For the financial year ended Dec 31, 2011, it was still profitable, with net profit of RM24.53 million, or down 12.6% to RM24.53 million from RM28.09 million in FY10.

Poultry-based TEO SENG CAPITAL BHD [] posted a 12.95% increase in its profits to RM7.15 million for the third quarter ended Dec 31, 2011, from RM6.33 million a year ago, underpinned by larger sales of eggs and better prices.



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Ekovest 2Q earnings surge to RM11.3m

KUALA LUMPUR (Feb 29): EKOVEST BHD []'s earnings soared 615.82% to RM11.31 million for its second quarter ended Dec 31, 2011, from RM1.58 million a year ago, due to increased revenue from its CONSTRUCTION [] arm.

The company, which specialises in civil engineering works and construction, said on Wednesday, that revenue increased 13.8% to RM46.96 million from RM41.26 million. Earnings per share improved to 6.33 sen compared to 0.92 sen a year ago.

The group attributed its improved performance to its construction arm which contributed RM78.69 million to total revenue.

For the six months ended Dec 31, 2011, revenue rose 26% to RM78.82 million from RM62.52 million, while profit jumped 590% to RM17.82 million from RM2.58 million.



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IWH increases purchases from KPRJ

KUALA LUMPUR: Iskandar Waterfront Holdings Sdn Bhd (IWH) has increased its share purchases from Kumpulan Prasarana Rakyat Johor Sdn Bhd (KPRJ), buying KPRJ’s stake in PLS Plantations Bhd, and confirming its purchase in Tebrau Teguh Sdn Bhd.

In two separate announcements to Bursa Malaysia yesterday, Tebrau confirmed IWH’s purchase of a 33.15% stake in the company while PLS said IWH acquired a 23.4% stake in PLS from KPRJ yesterday, bringing IWH’s purchases from KPRJ to a total of RM261.29 million.

KPRJ is a major shareholder of PLS. The company told Bursa yesterday that it received notification that KPRJ had entered into a share sale agreement with IWH, whereby the latter will acquire 76.5 million 20 sen shares in PLS for RM1.21 per share, representing a five sen premium to the five-day weighted average share price.

In its Jan 31 announcement, Tebrau said its major shareholder KPRJ had entered into a definitive agreement with IWH to sell its 33.15% Tebrau stake, which consisted of 222 million 50 sen shares, for 76 sen cash apiece. Before the sale was announced, KPRJ held 41.15% in Tebrau.

In addition, the announcement said the proposed acquisition will trigger a mandatory takeover offer by IWH and the parties acting in concert with it for all the remaining shares in Tebrau not owned by the former for 76 sen cash per share.

The news comes just a day after Prime Minister Datuk Seri Najib Razak announced a RM200 facilitation fund to kickstart the Iskandar Integrated Waterfront City Project in Danga Bay. The project will reportedly cover a total of 25km on the east and west of the Johor Causeway facing Singapore, with a reported gross development value of RM80 billion.

IWH is a special purpose vehicle established to develop the Iskandar project. IWH’s shareholders are KPRJ and Credence Resources Sdn Bhd, whose major shareholder is Ekovest Bhd executive chairman Datuk Lim Kang Hoo.

Tebrau has been in the news since it announced on Jan 31 that it had accepted IWH’s offer for the 33.15% stake. The developments have sent Tebrau’s stock price soaring. It closed up 2.5 sen or 2.8% to 91.5 sen yesterday, its highest close in 13 months.

PLS is an investment holdings company that is involved in plantation and construction activities. It finished at RM1.15 yesterday, unchanged since Feb 9. Its close on Feb 8 was RM1.19.


This article appeared in The Edge Financial Daily, February 14, 2012.



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KLCI up on late buying of Genting, Tenaga

KUALA LUMPUR (Feb 13): Blue chips closed higher in late trade on Monday, nudged up by gains in GENTING BHD [], Tenaga and PLANTATION [] stocks, in line with the firmer regional markets and European bourses after Greece voted in favour of the austerity bill.

The KLCI was in the red most of the day and managed to rebound towards the last half-hour of trade. It closed 1.16 points or 0.07% higher at 1,562.82. Turnover was 2.66 billion shares valued at RM2.12 billion. There were 364 gainers, 517 losers and 321 stocks unchanged.

Greece approved the deeply unpopular austerity bill to help secure a second bailout, even as riots in central Athens and violence across the country raised doubts about implementation of the approved spending cuts, Reuters reported.

Asian markets posted modest gains on the news, extending their bright start to the year. However, turnover declined from last week, suggesting that some players were cautious about chasing the rally further.

Japan’s Nikkei 225 rose 0.58% to 8,999.18, Hong Kong’s Hang Seng Index added 0.5% to 20,887.40, Taiwan’s Taiex 0.64% to 7,912.91, South Korea’s Kospi 0.6% to 2,005.74 and Singapore’s Straits Times Index 0.54% to 2,975.98. Shanghai’s Composite Index was flat at 2,351.85.

US light crude oil rose US$1.18 to US$99.85. The ringgit strengthened 0.0069 to 3.0248 against the US dollar.

At Bursa Malaysia, with Monday being the T+3 settlement day after the huge volume on Wednesday, saw some mild selling pressure in lower liners and penny stocks. The broader market weakened somewhat with profit taking picking up pace.

Genting Bhd rose 20 sen to RM10.50 and Tenaga eight sen to RM6.19, adding 2.77 points to the KLCI. BAT was the top gainer, up RM1.20 to RM51.50.

Plantations were given a boost with third-month delivery up RM38 to RM3,168 per tonne. United Plantations added 50 sen to RM22.50, KLK 50 sen also to RM25.98 and BLD Plantations 41 sen to RM10.08.

Compugates was the most active with 272.28 million shares done, up one sen to 13 sen. Talk of a corporate exercise saw Time adding 5.5 sen to 40.5 sen. Hopes of higher offer price saw Tebrau Teguh adding 2.5 sen to 91.5 sen.

Naim Indah Corp fell 11 sen to 56 sen with 196.26 million units done. The share price had surged from 9.0 sen on Feb 2 on expectations of a corporate exercise. It resumed trading on Monday after announcing last Friday it proposed to acquire 60% in Sagajuta (Sabah) Sdn Bhd for an indicative price of RM240 million from Generasi Cipta Sdn Bhd.

Petronas Dagangan fell 18 sen to RM18.78, GBH 17 sen to RM1.09 and Ekovest 16 sen to RM2.77. DRB-Hicom eased 11 sen to RM2.87.



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KLCI slips into negative territory at mid-day, lags Asian markets

KUALA LUMPUR (Jan 19): The FBM KLCI fell at the mid-day break on Thursday, lagging behind key Asian markets as some mild profit taking on the penultimate trading day before the extended weekend for the Chinese New Year holidays chipped off earlier gains.

The FBM KLCI slipped 1.60 points to 1,515.78 at 12.30pm.

Losers overtook gainers by 324 to 296, while 308 counters traded unchanged. Volume was 1.09 billion shares valued at RM675.52 million.

The ringgit strengthened 0.52% to 3.1027 versus the US dollar; crude palm oil futures for the third month delivery fell RM26 per tonne to RM3,154, crude oil added 86 cents a barrel to US$101.45 while gold gained US$3.50 an ounce to US$1,663.45.

At the regional markets, Japan’s Nikkei 225 added 1.1% to 8,645.04, Hong Kong’s Hang Seng Index gained 1.11% to 19,906.30, the Shanghai Composite Index rose 0.90% to 2,286.89, South Korea’s Kospi gained 1.14% to 1,914.03, Singapore’s Straits Times Index was up 0.54% to 2,810.52 and Taiwan’s Taiex edged up 0.17% to 7,233.69.

On Bursa Malaysia, the decliners at mid-day included Sunchirin that fell 20 sen to RM1.50, Batu Kawan down 18 sen to RM18.68, Triplc 17.5 sen to 42 sen, Genting down 16 sen to RM10.84, Southern Acids 14 sen to RM2.18, Warisan 11 sen to RM2.49, Tasek 10 sen to RM7.90, Bursa down nine sen to RM6.86 while Hong Leong Industries and Amway fell eight sen each to RM4 and RM9.40.

Among the gainers, Nestle was up 30 sen to RM56.30, Aturmaju 16 sen to 74 sen, Parkson 14 sen to RM5.74, BAT 12 sen to RM49.92, while Knusford, Petronas Gas, Ekovest and Sarawak Oil Palm added 10 sen each to RM1.70, RM15.38, RM2.60 and RM6.05 respectively.

D.B.E Gurney, which was the most actively traded counter this morning, was issued with an unusual market activity query by Bursa Malaysia Securities Bhd.

The stock was unchanged at 11 sen with 166.2 million shares done.

Other actives included TMS, JCY, MBSB, BIMB, Nextnation and Ingenuity Solutions.



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KLCI edges up at mid-morning, struggles to stay above 1,520

KUALA LUMPUR (Jan 19): The FBM KLCI edged up at mid-morning on Thursday but struggled to stay above the 1,520-level as pre-holiday mood kept investors on the sidelines.

The FBM KLCI rose 3.42 points to 1,520.80 at 10am.

Gainers led losers by 233 to 164, while 251 counters traded unchanged. Volume was 461.40 million shares valued at RM215.42 million.

Asian shares rose to a one-month high and the euro firmed on Thursday after news that the International Monetary Fund was seeking to boost its resources to tackle the euro zone debt crisis alleviated worries about Europe's funding difficulties, according to Reuters.

Smooth debt sales by Portugal and above-estimate earnings from Wall Street powerhouse Goldman Sachs Group Inc added to the positive mood just as investor risk-aversion has started to weaken after recent data suggested euro zone problems have not seriously derailed global economic activities, it said.

At the regional markets, Japan’s Nikkei 225 added 1.25% to 8,657.27, Hong Kong’s Hang Seng Index gained 0.63% to 19,811.50, South Korea’s Kospi added 0.73% to 1,906.24, Singapore’s Straits Times Index was up 0.46% to 2,808.20, Taiwan’s Taiex was up 0.17% to 7,233.69 and the Shanghai Composite Index was up 0.16% to 2,269.99.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to client said that the FBM KLCI’s resistance areas of 1,518 and 1,532 may cap market gains, whilst obvious support areas may be located at 1,505 and 1,516.

“Despite the US markets’ positive tone last night, we could be in for yet another range bound day of trading activity ahead of the Chinese New Year holidays,” he said.

On Bursa Malaysia, the gainers at mid-morning were led by Parkson, Aturmaju and Hong Leong Bank that rose 16 sen each to RM5.76, 74 sen and RM11.06 respectively; UMW added 14 sen to RM6.99, Petronas Gas 12 sen to RM15.40, Ekovest and Knusford 10 sen each to RM2.60 and RM1.70, while Guan Chong and BAT gained eight sen each to RM2.44 and RM49.88.

D.B.E Gurney, which was the most actively traded counter at mid-morning, was issued with an unusual market activity query by Bursa Malaysia Securities Bhd.

The stock rose half a sen to 11.5 sen with 125 million shares done.

Other actives included TMS, MBSB, BIMB, JCY, XDL and DRB-Hicom.

Decliners included Southern Acids, Nestle, MAHB, Lafarge Malayan Cement, HLFG, MISC, BHIC and Maybulk.



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The River of Life beautification work for Ekovest-MRCB

KUALA LUMPUR: The project delivery partner (PDP) of the River of Life project, Ekovest-MRCB JV Sdn Bhd, will earn more than just the RM22 million fee in the coming three years, said Ekovest Bhd managing director Lim Keng Cheng.

Lim pointed out that the joint venture firm, will get better benefits as the PDP of the project than being a sub-contractor bidding for the work packages of the River of Life project. Ekovest has a 60% stake in the Ekovest-MRCB.

Speaking after the company’s AGM, Lim told the media that Ekovest-MRCB might participate in the beautification of a 10.7km portion of the Klang river, but will not take part in the river cleaning works. He said according to the agreement between Ekovest-MRCB and the federal government, the PDP is not allowed to tender for the land along the 10.7km portion of the river.

Furthermore, the joint venture firm is not permitted to bid for the river cleaning works for the 110 km of the Klang river that runs through the capital.

However, according to Lim, the agreement is silent on the beautification works of the project.

“As the PDP, our role is to coordinate the 43 government agencies to make sure the project be delivered on time, and we also have some monetary incentives, where we should look into enhancing the value of the land, the various engineering on the cleaning of the river, and ensure the KPI (key performance indicator) is met on the beautification of the river,” said Lim, who is the nephew of Datuk Lim Kang Hoo.

Lim (left) and executive director Cho Joy Leong at the press conference yesterday.

Kang Hoo is the major shareholder of Ekovest, holding a 24.61% equity stake.

In an earlier announcement to Bursa Malaysia, Ekovest said being the PDP, Ekovest-MRCB would earn a maximum fee of RM22 million, which is equivalent to 1% of the total projected works to be delivered over the three-year period.

In addition, it noted that the PDP will also enjoy “monetary incentives” with respect to the river rehabilitation and beautification works.

However, Lim declined to reveal the details of the “monetary incentives”. He only disclosed that as part of the special monetary incentives, the PDP would earn a sum by helping the government to look for buyers for the land along the riverbank.

Also, he said Ekovest-MRCB would be rewarded if the joint venture firm managed to look for bidders who could do the river beautification and rehabilitation works at the lowest costs, even at costs below the allocated budget.

For 1QFY12 ended Sept 30, Ekovest recorded a net profit of RM6.5 million compared with RM1 million in the previous corresponding period. Revenue rose to RM31.9 million from RM21.3 million previously.

For FY11 ended June 30, Ekovest posted a net profit of RM24.6 million compared with RM10.1 million the year before. However, revenue was sharply lower at RM128.2 million versus RM217.7 million for FY10.

Ekovest attributed the higher earnings to the recognition of RM20.97 million after incorporating the effects of adopting FRS 139 compared to the preceding year.

However, excluding earnings recognition under FRS 139, the company’s earnings were lower compared with the preceding year as a result of a drop in revenue.

Ekovest’s order book stands at RM230 million currently and this can keep the company busy for up to two years, while its tender book stands at around RM3 billion. Ekovest plans to develop its 11.5 acres of land in Cheras into a mixed development worth RM1.5 billion, to be located near an MRT station.

In addition, Ekovest also has 20 acres of land each in Setapak and Iskandar Malaysia.


This article appeared in The Edge Financial Daily, December 20, 2011.




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RHB Research positive on construction sector, MRCB FV RM2.55

KUALA LUMPUR (Dec 7): RHB Research Institute has turned positive on the CONSTRUCTION [] sector as there is now even more urgency for the Government to expedite the roll-out of various public projects.

The research house said on Wednesday this move by the government to pump prime the local economy to shield it against the increased risk of the global economy slipping into a double-dip recession.

“For MRCB, an additional trading angle also comes from the strong likelihood of it being offered a dual role, i.e. project manager and developer, by parent Employees Provident Fund (EPF) in the redevelopment of the 2,680-acre Rubber Research Institute (RRI) land in Sungai Buloh.

“Also, a 60:40 JV between Ekovest and MRCB is poised to bag the beautification portion worth RM1bn of the initial phase of the River of Life project. Indicative fair value for MRCB is RM2.55 based on “sum of parts”,” RHB Research said.



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Ekovest and MRCB in River of Life venture

KUALA LUMPUR: Malaysian Resources Corp Bhd and Ekovest Bhd says Ekovest-MRCB JV Sdn Bhd signed a project delivery partner pact with the government for the River of Life development.

The companies said he venture will earn one per cent of the total estimated River of Life project cost and enjoy monetary incentives.



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Stocks to watch: Guocoland, CBIP, Ekovest, MRCB, Wijaya Baru

KUALA LUMPUR (Dec 7): Investor sentiment at the local stock market is likely to remain cautious on Wednesday in line with the overall tepid mood at key regional markets a day earlier after Standard & Poor's warned it might downgrade top-rated Germany and other euro zone countries.

S&P had placed the ratings of 15 euro zone countries on credit watch negative, including the region's two biggest economies Germany and France, and said "systemic stresses" are building as credit conditions tighten in the 17-nation region.

However, analysts say they are cautiously optimistic that European policymakers would make some progress in finding a solution to the eurozone debt crisis at the summit later this week, and as such the decline at the stock market was not expected to be severe, with the exception of further shocks like credit rating downgrades.

On Bursa Malaysia, among the stocks that could be in focus are GUOCOLAND (MALAYSIA) BHD [], CB INDUSTRIAL PRODUCT HOLDING [] Bhd (CBIP), EKOVEST BHD [], MALAYSIAN RESOURCES CORPORATION BHD and Wijaya Baru Global Berhad.

Guocoland’sunit is acquiring 46.72 acres of land worth RM107.8 million in the Cheras locality as part of its land bank expansion plan for future developments.

Its unit Ace Acres Sdn Bhd had entered into a sales and purchase agreement with Bond Corporation Sdn Bhd to acquire nine parcels of land located in Cheras and Mukim Petaling.

Meanwhile, CBIP secured a RM17.88 million contract from Felda Palm Industries Sdn Bhd for the conversion of the Trolak palm oil mill in Sungkai, Perak. Its unit Modipalm Engineering Sdn Bhd has accepted the letter of award to build and install the mill.

Ekovest - MRCB JV Sdn Bhd (EMJV) was picked the be the project delivery partner (PDP) by the government for to assist in the implementation and delivery of the River of Life (ROL) project.

EMJV is a joint venture between Ekovest Bhd and Malaysian Resources Corporation Bhd, where Ekovest will subscribe to 60% of the issued and paid up capital of the Company, while MRCB will subscribe to the remaining 40%. EMJV said it would earn a maximum fee of RM22 million or 1% of the total projected works to be delivered over three years.

It will also receive monetary incentives for the work done and the contract is expected to contribute positively to its future earnings.

Meanwhile, Wijaya Baru received its shareholders’ nod to acquire US$80 million in timber and palm oil concessions from Wealth Gate Pte Ltd and Suffolk Pte Ltd.

Wijaya will acquire 100% of Suffolk and Wealth Gate's shares, giving Wijaya ownership of two 40,000 ha plots of land in Irianjaya which can be converted into oil palm PLANTATION []s.



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Ekovest-MRCB JV picked PDP for River of Life

KUALA LUMPUR (Dec 6): Ekovest - MRCB JV Sdn Bhd (EMJV) has been appointed the project delivery partner (PDP) by the government to assist in implementing the River of Life (ROL) project.

EMJV is an EKOVEST BHD [], MALAYSIAN RESOURCES CORP []oration Bhd (MRCB) joint venture, where Ekovest will subscribe to 60% of the company's paid-up and MRCB the remaining 40%.

The ROL project is an Entry Point Project in the Greater Kuala Lumpur National Key Economic Area under the Government’s Economic Transformation Programme.

The project's objective is to transform the rivers running through the heart of Kuala Lumpur by undertaking river rehabilitation, beautification of riverbank and river corridor development. It involves rehabilitation of Sungai Kelang and Sungai Gombak and the beautification of an initial 10.7km stretch.

EMJV’s PDP service will be three years with a projected contract value of RM2.2 billion.

In a statement Tuesday, EMJV said it would earn a maximum fee of RM22 million or 1% of the total projected works to be delivered over a three year period.

It will also enjoy monetary incentives with respect to the work done, it said, adding that the contract was expected to contribute positively to its future earnings.

EMJV director KC Lim said with the combined strength and expertise of both JV partners, it was confident of successfully implementing the project as the PDP, as well as fulfilling the KPIs to enjoy the performance incentives offered by the government. As the PDP, EMJV will monitor and coordinate the inter agency cooperation.



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KLCI extends losses as Asian markets stay jittery

KUALA LUMPUR (Nov 17): The FBM KLCI extended its losses at mid-morning on Thursday, Nov 17 in line with the weaker key regional markets following the overnight plunge at Wall Street as US stocks fell on fears of a contagion from eurozone crisis.

Asian shares and the euro fell further on Thursday as doubts deepened about Europe's ability to stop its sovereign debt crisis from spinning out of control, with the region's biggest nations split over the European Central Bank's bond buying role, according to Reuters.

The focus of concern is shifting to difficulties in securing funds from money markets, where strains are intensifying due to rising government borrowing costs that have made financial institutions reluctant to buy sovereign bonds and lend to each other for fear of counterparty exposure to euro zone debts, it said.

The FBM KLCI fell 6.05 points to 1,470.79 at 10am.

Losers led gainers by 250 to 122, while 201 counters traded unchanged. Volume was 316.5 million shares valued at RM156.42 million.

At the regional markets, Hong Kong’s Hang Seng Index lost 1.28% to 18,718.55, Singapore’s Straits Times Index fell 0.87% to 2,783.02, Taiwan’s Taiex was down 0.56% to 7,346.12, Japan’s Nikkei 225 fell 0.17% to 8,448.74 and South Korea’s Kospi shed 0.06% to 1,854.97.

Meanwhile, the Shanghai Composite Index edged up 0.29% to 2,474.08.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients said that due to US markets’ very poor tone last night, there could be another downward day for the local index.

He advised investors to trade with a short-term time frame locally.

“It is unwise to join the recent penny stock activity (eg Harvest with its suspension, designation and limit-down and SYF with its large cumulative 2 days’ price and percentage drop) as these stocks do not have any fundamentals and the companies are loss-making.

“Sell these stocks swiftly if their trends turn down violently,” he said.

On Bursa Malaysia, BAT fell 46 sen to RM46.54, Harvest Court lost 44 sen to RM1.05, MISC 12 aen to RM6.67, AIRB and Petronas Gas fell 10 sen each to RM1.49 and RM13.24, CIMB nine sen to RM6.97, HDBS seven sen to RM2.28 and Genting PLANTATION []s was down six sen to RM7.91.

Among the gainers, Kretam and Nestle added 28 sen each to RM2.50 and RM49.50, Amway 17 sen to RM9.21, Ekovest and TDM nine sen each to RM2.67 and RM3.37, Can-One and MAHB seven sen each to RM1.02 and RM6.19, KLK six sen to RM21.12, Kenanga 5.5 sen to 72 sen and REC Capital five sen to 51.5 sen.

Compugates was the most actively traded counter with 19.4 million shares done. The stock was unchanged at 8 sen.

Other actives included TMC Life, Tricubes, YGL, Sumatec, Asia EP, REC Capital and DPS Resources.



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KLCI rises but struggles to maintain gains

KUALA LUMPUR (Nov 9): The FBM KLCI extended its gains for the third trading day on Wednesday, Nov 9 in line with a generally positive sentiment at key regional markets following the firmer overnight close at Wall Street.

However, the benchmark index struggled to maintain some of its gain at mid-morning and was up 8.89 points to 1,489.35.

Gainers led losers by 332 to 100, while 195 counters traded unchanged. Volume was 594.47 million shares valued at RM334.93 million.

Asian shares rose and the euro steadied on Wednesday after Italian Prime Minister Silvio Berlusconi said he would resign, raising hopes the debt-ridden country would proceed with reforms to contain the euro zone's sovereign debt crisis from spreading, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index jumped 2.48% to 20,166.60, the Shanghai Composite Index added 0.89% to 2,526.06, Japan’s Nikkei 225 gained 0.87% to 8,730.64, South Korea’s Kospi rose 0.79% to 1,918.25, Taiwan’s Taiex rose 0.42% to 7,632.73 and Singapore’s Straits Times Index edged up 0.39% to 2,877.73.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Nov 9 said that due to the US markets’ much firmer tone last night, there could be an initial rise for the FBM KLCI.

He said later profit taking activities could curtail the local market’s rise in the afternoon session.

“The Asian markets will still gyrate wildly despite a firm tone for the overnight American markets.

“As such, we advise clients to still trade with a short-term time frame locally,” he said.

On Bursa Malaysia, DiGi rose 44 sen to RM34.44, United PLANTATION []s gained 22 sen to RM17.80, Harvest Court 21 sen to RM1.39, Petronas Dagangan and PPB were up 14 sen each to RM16.34 and RM17.22, Bursa 12 sen to RM6.81, Axiata 11 sen to RM4.94 and MISC 10 sen to RM6.99.

Among the decliners, Lafarge Malayan Cement lost seven sen to RM6.92, Petrol One and F&N fell six sen each to RM1.04 and RM17.46, Ekovest five sen to RM2.50, while Mexter, KLK and GAB fell four sen each to 11 sen, RM21.16 and RM11.02 respectively.

The actives at mid-morning included Tejari, Sanichi, Hibiscus, JCY, Tebrau, Flonic and Hubline.