Is the penny stock party winding down like Harvest?

KUALA LUMPUR: Even as shares in designated Harvest Court Industries Bhd dipped 31% back to penny status yesterday, following the resignation of Mohd Nazifuddin Najib — son of Prime Minister Datuk Seri Najib Razak — from its board, market data showed the recent penny stock party may be winding down.

While Sumatec Resources Bhd, the 10th lower liner to be queried on unusual market activity (UMA) this month, topped yesterday’s most active list after 52% of its share base changed hands, it was the only penny stock among the top five active counters to end with a gain.

Compugates Holdings Bhd, DPS Resources Bhd, MMS Ventures Bhd and SYF Resources Bhd all ended the day between 2.91% and 43.18% lower. SYF and DPS had responded to an UMA query on Nov 14. At yesterday’s 16.5 sen close, DPS is down 47% from its recent high of 31 sen on Nov 14, but is still almost double the 9.5 sen a month ago.

While the total stock value done on the local bourse yesterday still indicated strong trading in penny stocks, the average value of shares traded of 82 sen had been steadily climbing for a fifth straight day after hitting an average low of 52 sen on Nov 15 — incidentally the day after Bursa Securities decided to impose that rare trading restriction on Harvest Court, which the regulator did in May 2006 on Iris Corp Bhd.

Similarly, the number of declining stocks had beaten the number of gainers for a sixth straight market day yesterday, stock market data showed.

Harvest Court lost 43.5 sen to close at its day low of 96.5 sen with 252,700 shares done yesterday. That’s more than half its high of RM2.14 on Nov 14, but still many times the 7.5 sen on Sept 27 before volume surged.

Sumatec, on the other hand, surged 7.5 sen or 36.6% to 28 sen — highest since April this year with over 112 million shares done. It was only at seven sen just a month ago.

Also closing with gains in active trade yesterday were lower liners GPRO Technologies Bhd, Karambunai Corp Bhd and Tricubes Bhd.

It remains to be seen for how long more penny stocks will continue dominating trading volumes.

Prior to this month, the local bourse last saw heavy trading of lower liners from mid-April to mid-June 2009, Bloomberg data showed. Seven stocks received UMA queries in June 2009. They were Measat Global Bhd, Transmile Group Bhd, Compugates Holdings Bhd, SAAG Consolidated Bhd, Equine Capital Bhd, Emico Holdings Bhd and Dataprep Holdings Bhd.

Bernama reported yesterday that Nazifuddin, who is still chairman of Sabah-based real estate developer Sagajuta Group, remains committed to Harvest Court despite his resignation from the board on Monday. He still owns a 2.2% stake in Harvest Court. It was also reported that Sagajuta managing director Datuk Raymond Chan still has 15.7% in Harvest Court.

In an interview published in a local daily yesterday, Chan said he and Nazifuddin would not exit Harvest Court anytime soon but intend to stick around for two to three years “to do genuine business”. He also said they are “comfortable” with their stakes, without committing to keeping their holdings or precluding them to buy or sell down their stakes.

Chan said Nazifuddin will focus on 1Green Enviro Sdn Bhd, while he handles the “many developments” within Sagajuta. He is not getting any government jobs.
“It is all private jobs,” Chan reportedly said.

Describing himself as “a young businessman trying to make a living”, 28-year-old Nazifuddin, who returned to Malaysia two years ago after a stint at a bank in Hong Kong, said he would “think twice about going back to the market” following the attention he received from the short-lived appointment at Harvest Court’s board. Chan reportedly has 30% of Sagajuta (Sabah) Sdn Bhd and Nazifuddin a 10% stake.


This article appeared in The Edge Financial Daily, November 23, 2011.



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Near two-year record in UMA

KUALA LUMPUR: With penny stock spurts resulting in nine queries in half a month, November is turning out to be a record month for so-called unusual market activity (UMA) queries.

With three queries issued yesterday to SYF Resources Bhd, DPS Resources Bhd and Flonic Hi-Tech Bhd, it is now one query away from the record 10 Bursa Malaysia issued for October 2009, filings show.

Yesterday’s fifth most actively traded stock, SYF saw over 102.6 million shares, a whopping 60% of its share base, traded on the open market, even as investors chased the stock to its highest level in over five years.

In its reply to the stock exchange, SYF, which manufactures rubberwood furniture, said it is in the final stages of negotiations for the joint development of properties with “landowners who are mainly related parties”.

The company — which on Oct 25 was lifted from Practice Note 1 status following a cash call and debt restructuring exercise — also cited a recent media report that a son of a senior government official will soon be joining its board, which it did not confirm or deny.

Closing at 92 sen yesterday, the loss-making furniture maker gained 25 sen or 37.31% for the day, but was off an intra-day high of 97 sen. Its warrants, SYF-WA, made it to the eighth spot on the top gainers’ list yesterday, after gaining 30 sen to close at 65 sen.

Another usually quiet counter -- another rubberwood furniture maker -- DPS Resources Bhd was also queried after the closing bell yesterday.

More than 100% of its share base changed hands yesterday, making it the most actively traded counter with over 266 million shares transacted.

The stock surged as much as 19.5 sen or 144.4% to 33 sen intra-day yesterday before settling at 31 sen. That was still more than double last Friday’s 13.5 sen close, with a more than 10 times jump in volume yesterday, though trading interest has gone up since last Thursday.

On Sept 27, DPS welcomed to its boardroom Datuk Tahir Hassan, 62, who has 32 years experience in the civil service.

He is currently a member of the Melaka state legislative assembly. Executive director Datin Chu Kim Guek sold 1.21 million shares at 13.5 sen apiece on Nov 11, filings dated Nov 14 showed. She is the wife of DPS chairman and managing director Datuk Sow Chin Chuan.

DPS and Flonic had yet to reply to the query at the time of writing.

Closing at 28 sen yesterday, Flonic, which began seeing increased trading interest on Nov 3, has gained 87% over seven market days from its 15 sen close on Nov 2. Its volume of 35.3 million shares yesterday was about 25% its share base.

Flonic is a manufacturer of precision cleaning systems for hard disk drives and other industries.

Harvest Court Industries Bhd, meanwhile, in which investors have been warned to exercise care when trading its shares, continued to climb yesterday to reach its highest since May 2000.

Gaining 29% or 48 sen to close at RM2.13, Harvest Court, which was still a penny stock just a week ago, is already 28 times the 7.5 sen it closed at seven weeks ago on Sept 27.

Stoking interest was the emergence of a new shareholder and director, Datuk Raymond Chan, the controlling shareholder of Sagajuta (Sabah) Sdn Bhd, which is awarding projects to the company. Chan was appointed to Harvest’s board on the same day as 28-year old Mohd Nazifuddin Najib, the prime minister’s second son.

Others that have been queried so far this month are Emico Holdings Bhd, Hibiscus Petroleum Bhd, Sanichi Technology Bhd, GPRO Technologies Bhd and Maxbiz Corp Bhd.


This article appeared in The Edge Financial Daily, November 15, 2011.



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SC cautions investors on speculative penny stocks

KUALA LUMPUR: Securities Commission (SC) chairman Tan Sri Zarinah Anwar has warned investors to be cautious over the rising number of penny stocks whose prices have skyrocketed of late without material corporate developments.

“I would like to remind investors that they have to exercise caution and make informed investment decisions. Everybody has a role to play in terms of ensuring fair and orderly trading in the market,” Zarinah commented when asked about the growing speculative interest in penny stocks.

She noted that the SC and Bursa Malaysia have surveillance systems in place and monitor all price movements for all counters listed on the exchange.

“Action will be taken depending on the outcome of our surveillance,” she told reporters on the sidelines of the 5th International Islamic Capital Market Forum yesterday.

Recently, penny stocks, particularly on the ACE Market, have seen heavy trading volume and sharp spikes in share prices. Despite poor financial results, these stocks have garnered strong speculative interest.

Among the counters, notably, is Harvest Court Industries Bhd. In barely four weeks, the stock has jumped 16 times from 8.5 sen to RM1.40 yesterday.

The company saw the emergence of a new shareholder, Datuk Raymond Chan, who bought part of his 13.83% stake from the company’s managing director Ng Swee Kiat. Ng later proposed to Affin Bank Bhd to acquire the bank’s 18.3% equity interest for 25 sen per share.

Other penny stocks that have joined the euphoria include Karambunai Corp Bhd, Envair Holdings Bhd, Focus Dynamics Technologies Bhd, Sanichi Technologies Bhd and GPRO Technologies Bhd.

Bursa has queried some of these counters on unusual market activity (UMA). Most of them have replied by saying the board is not aware of any material corporate developments in the companies. Those queries, however, do not seem to have stopped some of those counters from climbing further.

Asked about the share swap deal between state investment arm Khazanah Nasional Bhd and Tune Air Sdn Bhd of shares in Malaysian Airline System Bhd (MAS) and AirAsia Bhd, Zarinah said the SC is reviewing all the trading data. “We will make a decision upon our review and determination of our findings.”

There is no time frame for the investigation, she added.

Deputy Finance Minister Datuk Dr Awang Adek told the Dewan Rakyat last week that the SC and Bursa have launched an investigation into the swap deal involving MAS and AirAsia shares. He said the probe would also look into the possibility of insider trading and will take time because it involves many accounts and a huge value.

He said if the probe finds evidence of insider trading, the Malaysian Anti-Corruption Commission may also be invited to investigate.

Under the swap deal announced in August, Tune Air and Khazanah, major shareholders of AirAsia and MAS respectively, agreed to swap their shares in the two airlines. After the swap, Tune Air now owns 20.5% equity interest in MAS, while Khazanah holds a 10% stake in the low-cost carrier.


This article appeared in The Edge Financial Daily, November 11, 2011.

Market Commentary

The FBM KLCI index gained 9.18 points or 0.62% on Wednesday. The Finance Index increased 0.19% to 13282.17 points, the Properties Index up 0.90% to 959.54 points and the Plantation Index rose 0.37% to 7586.04 points. The market traded within a range of 9.53 points between an intra-day high of 1490.74 and a low of 1481.21 during the session.

Actively traded stocks include HIBISCS-WA, TEJARI, ASUPREM, DATAPRP, EMICO, HIBISCS, COMPUGT, GPRO, JCY and JCY-CD. Trading volume increased to 2677.72 mil shares worth RM1818.10 mil as compared to Tuesday’s 1812.89 mil shares worth RM1538.64 mil.

Leading Movers were AXIATA (+13 sen to RM4.96), SIME (+12 sen to RM8.92), GENTING (+14 sen to RM11.00), PETCHEM (+7 sen to RM6.48) and CIMB (+4 sen to RM7.36). Lagging Movers were KLK (-6 sen to RM21.14), GENM (-1 sen to RM3.86), AMMB (-1 sen to RM5.83), UMW (-2 sen to RM6.85) and HLFG (-2 sen to RM11.88). Market breadth was positive with 562 gainers as compared to 222 losers.-- JF Apex Securities Bhd

SC: Actively-traded stocks under watch

Over the recent weeks, several stocks, including penny shares, outperformed the best performing FTSE Bursa Malaysia KLCI component stock by multiple fold.

KUALA LUMPUR: The Securities Commission (SC) says it is monitoring actively-traded stocks to ensure fair and orderly market.

"In the discharge of our regulatory obligations, the SC vigilantly monitors all counters and price movements to ensure a fair and orderly market," said an SC spokesperson.

Over the recent weeks, several stocks, including penny shares, were in the limelight. A number of them outperformed the best performing FTSE Bursa Malaysia KLCI component stock by multiple fold.

Petronas Dagangan Bhd, the best-performing FBM KLCI component stock, has been rising 40 per cent so far this year. In contrast, the likes of Harvest Court Industries Bhd, Envair Bhd and GPRO Technologies Bhd gained between 175 per cent and over 500 per cent year-to-date.

Bursa Malaysia is also doing its best to keep the market in order.

So far this month, four companies have been queried for "unusual market activities" by Bursa. They are Harvest Court, GPRO, Maxbiz Corp and Sanichi Technology.

The SC said it is also looking into the activities of local and foreign investors, as well as detecting any unusual market activities for all transactions.

For example, GPRO, over the last two to three months, saw the emergence of Christian Kwok-Leun Yau Heilesen, who now owns almost 25 per cent of the company.

Heilesen was a controversial figure after the DVM Technology incident, where he, along with another foreign investor, had bought a substantial stake in the company and asked for an extraordinary general meeting to seek the removal of several directors including its founder. However, Heilesen disposed of his entire stake in DVM about a week later.

"The SC has its own market surveillance system to monitor and detect any irregular or unusual market activities for all transactions, be they local or foreign investors.

"The SC then reviews these transactions to determine if any further action is required," it said.

The rise of penny stocks on Bursa

Over the past two weeks, penny stocks have been dominating the top active lists. More importantly, a bulk of these active penny stocks have appreciated in prices.

Kuala Lumpur: Interest on penny stocks is on the rise again, a sign of renewed confidence among retail investors, said brokers and analysts.

Penny stocks are quoted securities that are trading below the RM1 mark. They are seen as studs in a bull market, as retailers clamour for action at the lowest possible cost.

Over the past two weeks, penny stocks have been dominating the top active lists. More importantly, a bulk of these active penny stocks have appreciated in prices.

Interest in penny stocks are mainly driven by retail investors' confidence, added participation of day traders and speculators and the willingness of brokerages to provide margins.


"It clearly shows the return of retail investors, which is also a sign of the return of confidence on the market," Jupiter Securities head of research, Pong Teng Siew, told Business Times on Friday.

Another analyst added that the rally in these penny stocks could be driven by recent gains on blue chip counters.

"Many blue chips have gained significantly over the past four weeks, resulting in a good run last month. A number of these stocks have now become 'expensive'. This may be why investors are now shifting their focus onto penny stocks," said an analyst from a local research house.

Among the top performing penny stocks over the past two weeks are Harvest Court Industries Bhd, which more than tripled from 27 sen to 87.5 sen; Connectcounty Holdings Bhd (+80 per cent); Sanichi Technology Bhd (+54 per cent); Karambunai Corp Bhd (+50 per cent); DVM Technologies Bhd (+18 per cent); GPRO Technologies Bhd (+15 per cent); XOX Bhd (+14 per cent); and Envair Holding Bhd (+10 per cent).

Retail investors' participation in stock market has also increased over the recent days.

So far this month, at least one-third of trades were done by local retail investors and last Thursday, most of the trades were done by retail investors (41.73 per cent local retail participation against 34.98 per cent local institution participation and 23.29 per cent foreign participation).

Data also showed that retail investors were net seller of about RM40 million worth of shares over the past week.

"This is normal, as most retail investors adopt short-term trading mentality, so the net sellers position may probably because they buy low, sell high," added Pong.

While the growing interest signifies the return of retail investors confidence, analysts remained uncertain if it could translate into a year-end mini-bull run.

"I think all signs are pointing to a short-term rally, but it is difficult to determine when it will start or end, or how long it will last," said the analyst who declined to be named.

Fresh impetus for some

PETALING JAYA: The emergence of new, politically connected shareholders and directors appears to be giving fresh impetus to selected small counters on Bursa Malaysia amid the current weak market sentiment.

The companies that have seen politically linked figures come on board in recent months include Harvest Court Industries Bhd, Envair Holding Bhd and Sanichi Technology Bhd.

The three counters, two of which are listed on the ACE Market, saw significant price movements on high trading volume in recent weeks. What is interesting is that all three companies made losses in their last financial years.

Mohd Nazifuddin Najib, the son of Prime Minister Datuk Seri Najib Razak, was appointed a non-executive director of Harvest, which was lifted from its PN17 status in December 2009, at the end of October.

Nazifuddin is also chairman of Sagajuta (Sabah) Sdn Bhd, best known as the developer of the 1Borneo mall in Kota Kinabalu, Sabah. Sagajuta has several ongoing projects including 1Sulaman and 1Likas in Kota Kinabalu, and 1Gateway in Klang. Its controlling shareholder and managing director is Datuk Raymond Chan Boon Siew.

Both Chan and Nazifuddin joined Harvest’s board on Oct 28 after Chan emerged as a substantial shareholder of Harvest 10 days earlier, when he acquired 23.808 million shares, or a 13.85% stake, at 20 sen per share.

The value of Chan’s stake has since tripled, with the stock closing at 64 sen yesterday as investors anticipate he may inject Sagajuta’s assets into Harvest was awarded a contract by Sagajuta for the supply of door leaves for some RM7.03 million.

Chan’s entry into Harvest follows the abortion of earlier plans to inject Sagajuta into Jerneh Asia Bhd.

About a week prior to Chan and Nazifuddin’s appointments, the company received an unusual market activity (UMA) query from Bursa Malaysia on Oct 17.


In response, Harvest said it is unaware of other developments, apart from the discussions between managing director and shareholder Ng Swee Kiat and Affin Bank Bhd for the proposed purchase the entire shares and warrants held by Affin in Harvest.

The query, however, did not stop Harvest shares from rising further, especially after the two appointments.

The counter reached a new high yesterday of 64 sen, a 760% premium to its recent low of 7.5 sen on Sept 26, 2011. The counter gained 334% year-to-date (YTD) compared with 509% in the last three months on an average daily trading volume of 8.34 million.

It is worth noting that for the whole of last year, Harvest posted a net loss of RM2.82 million from a net profit of RM12.16 million a year ago.

While the company posted a net profit of RM168,000 in 2QFY11 ended June 30, it is still in the red for the nine-month period with a net loss of RM678,000.

Envair, meanwhile, appointed Mohd Anuar Mohd Hanadzlah, the brother of Second Finance Minister Datuk Seri Ahmad Husni Mohd Hanadzlah executive director.

The loss-making Envair, which manufactures, sells and services clean air and containment facilities, made headlines recently when it unveiled plans to sell two million barrels of light crude oil per month to a Chinese company for a five-year period, in a deal worth some US$182 million (RM573 million) per month.

Envair was asked by Bursa Malaysia to clarify the deal. This was one of a number of queries from the exchange on Envair’s announcements since Oct 13 that it wanted to venture into the oil and gas business.

The company has also announced that ZAI Corporate Finance Ltd, a London-based investment banking firm, was interested in subscribing to up to 30% of its share base under a private placement exercise. There have been no updates on this development.

Envair posted a net loss of RM290,000 in 2QFY11 ended June 30 and a net loss of RM816,000 for the nine-month period. For the whole of FY10 ended Dec 31, it made a net loss of RM5.38 million.

Envair shares gained some 204% over the three months on an average trading volume of 1.26 million. YTD the counter put on some 407% to settle at 35 sen yesterday.

ACE Market-listed Sanichi Technology Bhd saw the emergence of Datuk Mohd Wira Dani Abdul Daim, son of former finance minister Tun Daim Zainuddin, as a new substantial shareholder three months ago.

Wira Dani recently bought 10 million shares or 6.12% of the loss-making precision moulds and tools maker for RM6 million or six sen per share. The transacted price was about 20% below the market price 7.5 sen at the time.

Sanichi’s share price shot up by as much as 10% after Wira Dani bought into the company in early August.

But over the recent three months, Sanichi lost over 47% to close at 5 sen yesterday. It reached its 52-week high on Aug 4, 2011 at 11.5 sen and its low of 3.5 sen on Dec 22, 2010.

Sanichi is still in the red with a net loss of RM14.93 million in FY11 ended June 30 on the back of RM9.44 million revenue.

Also notable are two counters that have seen significant movement in their share prices of late: GPRO Technologies Bhd and DVM Technology Bhd.

Interestingly, the reason behind the price movement of both companies appears to be centred around one individual: Christian Kwok-Leun Yau Heilesen.

The movement in its share price prompted Bursa Malaysia to query GPRO Technologies earlier this week.

In response, GPRO said it was not aware of any activity that may have contributed to the unusual price movement and yet, the counter settled at 23.5 sen yesterday, translating into about 200% gain YTD.

To recap, GPRO, whose market capitalisation is barely RM24 million, saw the emergence of Heilesen as a new major shareholder, when he bought 38.23 million shares or a 15.29% stake in the ACE Market-listed IT firm recently.

Heilesen acquired the shares on the open market for RM3.25 million or 8.5 sen each in early September. At current prices, the value of his stake has appreciated nearly three times.

This is the second ACE Market - listed loss-making company that Heilesen has bought into in less than two months. The first was DVM, which he later sold down in less than three weeks in August.

Heilesen made news last month when he bought into DVM and requested an EGM to remove four directors from the company’s board. However, he sold down his stake barely two weeks after the share purchase.

To recap, Heilesen, a Danish national, and Raymond Yip Wai Man from Hong Kong emerged as substantial shareholders in DVM via the acquisition of its shares on the open market. Both had a combined interest of close to 20% in the company before selling down their stakes.

While the duo were picking up shares on the open market, the company’s single largest shareholder, Datuk Goh Kian Seng, was paring down his stake to 5.05%.

DVM closed at 7.5 sen yesterday, an increase of more than 40% YTD, but down 73.2% from its recent high just three months ago.

It reached a high on Aug 2, 2011 of 28 sen, which was a 409% premium to its record low of 5.5 sen last November.


This article appeared in The Edge Financial Daily, November 4, 2011.

GPRO, Maxbiz get UMA query

KUALA LUMPUR: The spike in the share prices of Maxbiz Corp Bhd and GPRO Technologies Bhd prompted Bursa Malaysia to query the two companies on the unusual market activity (UMA).

GPRO was the most actively traded stock yesterday, bucking the downtrend on the broad market with a gain of about 29%. The stock hit an intra-day high of 25.5 sen before retreating to close at a six-year high of 24.5 sen yesterday. Some 47.9 million shares changed hands yesterday.

Shortly after the opening bell, Maxbiz surged 83% or 7.5 sen to an intraday high of 16.5 sen from Monday’s closing price of 9 sen.

Maxbiz ended 33.3% higher to 12 sen, the highest level since March. About 33.9 million shares were traded yesterday, making it the third most active counter on Bursa.

In reply to Bursa yesterday, both Maxbiz and GPRO said their boards were not aware of any material activities that would have contributed to the UMA yesterday.

Interestingly, the two companies recently saw some movements in their boardrooms.

Last Friday, garment maker Maxbiz told Bursa it had appointed two new directors — Datuk Mohamad Taufik Omar and Wong Kam Wah.

GPRO's RFID solutions for garment professionals.
GPRO has been in the red since FY05 ended Dec 31.

A director at Vasseti Bhd, Taufik was made chairman and audit committee chairman of Maxbiz while Wong was appointed executive director. Wong is currently managing director of Container Link Sdn Bhd and Serai Makmur Container Depot Sdn Bhd.

Maxbiz is still bidding to recover what it alleges are “missing” assets after it took over the listing status of Geahin Engineering Bhd via a reverse takeover exercise.

In late June, Maxbiz filed suit against 18 defendants including accounting firm Ernst & Young, Public Investment Bank Bhd and Pacific Trustees Bhd.

The PN17 firm Maxbiz is claiming damages to the tune of RM163.48 million from the defendants along with general and exemplary damages, interest, legal costs and other relief deemed proper by the court.

Maxbiz, which is also categorised as PN1, defaulted on RM3 million of redeemable unsecured loan stocks (RULS) and RM22.62 million of redeemable convertible secured loan stocks (RCSLS)

GPRO, which develops IT solutions for textile and apparel manufacturers, on Oct 14 appointed Christian Kwok-Leun Yau Heilesen executive director.

Shares in GPRO have been heavily traded since early September after Heilesen surfaced as a substantial shareholder in the company.

It is not known what the new shareholder has in the pipeline for GRPO.

But the stock has gained nearly 160% or 15 sen after Heilesin bought into the ACE Market-listed firm, whose market capitalisation was only RM20 million at end-August.

Heilesen, who is founder and CEO of Funmobile Holding Ltd (a Hong Kong-based mobile content developer), has increased his stake in GPRO to 24.89% on Oct 15 from 15.29% oan Sept 12.

Coincidentally, GPRO’s single largest shareholder Vital Research Sdn Bhd had substantially reduced its stake to 10.79% on Sept 8 from about 20% in March.

Its executive chairman Tang Tiong Seng, who held interest via Vital Research, has also trimmed his indirect stake in the company from 14.92% on Sept 6 to 0.12% on Sept 13.

This is the second ACE Market- listed loss-making company that Heilesen has bought into in less than two months. The first was DVM Technology Bhd, which he later sold down under three weeks.

GPRO has been in the red since FY05 ended Dec 31. For the six months ended June 30, it incurred a net loss of RM1.34 million or 0.54 sen per share, compared with RM1.59 million or 0.64 sen per share a year earlier. Revenue was at RM503,000 versus RM246,000 a year ago.


This article appeared in The Edge Financial Daily, November 2, 2011.

GPRO falls after yesterday's 29% surge

GPRO Technologies Bhd, a Malaysian information technology company, fell in Kuala Lumpur trading after it said it isn’t aware of a reason to account for yesterday’s 29-percent surge in its shares.

The stock dropped 4.1 percent to 23.5 sen at 9:20 a.m. local time.

KL shares end lower on profit-taking

KUALA LUMPUR: Share prices on Bursa Malaysia ended sharply lower today on profit-taking amid the uncertainty in the short-term market outlook, dealers said.

The FBM KLCI fell 16.25 points, or 1.1 per cent, to close at 1,475.64, after opening 7.76 points lower at 1,484.13.

The benchmark index hovered between 1,474.61 and 1,485.9 as continuous selling pressure dragged it into negative territory.

Dealers said the market started the new trading month on broadly weaker sentiment led by the consumer and services sectors.

The manufacturing sector was also affected after the release of weak manufacturing figures from China.

China's purchasing managers index for October fell to 50.4 in October from 51.2, reflecting the slow pace of China's manufacturing expansion.

TA Securities senior technical analyst, Stephen Soo, said the market has reached 'overbought' position after a strong rally, so profit-taking was not a surprise.

"The investors also took their cues from Wall Street's losses due to weak leads from European markets as Greece government announced that the country would hold a referendum on a new aid package," he told Bernama here today.

The overall market sentiment was negative with losers led gainers by 583 to 198 while 213 counters were unchanged, 476 untraded and 20 others suspended.

Trading was moderate with a volume of 1.19 billion shares worth RM1.29 billion compared with 1.33 billion shares worth RM1.58 billion yesterday.

The Finance Index fell 60.83 points to 13,433.37, Industrial Index eased 33.40 points to 2,692.24 and the Plantation Index dropped 80.34 points to 7,484.96.

The FBM Emas decreased 116.61 points to 10,052.71 and the FBM 70 Index declined 148.39 points to 10,806.78.

The FBMT100 fell 114.42 points to 9,873.79 and the FBM Ace Index slipped 48.07 points to 3,983.37.

Among losers, Panasonic Manufacturing fell 32 sen to RM19.70, Litrak dropped 17 sen to RM3.47 and Innoprise Plantations slipped 15 sen to RM1.35.

Of the actives, GPRO rose 5.5 sen to 24.5 sen, MBSB-Wa increased half sen to 91 sen and Maxbiz gained three sen to 12 sen.

Among top gainers, F&N rose 20 sen to RM17.20, Hong Leong Bank increased 12 sen to RM10.72 and Jaya Tiasa added 11 sen to RM5.82.

In heavyweights, Maybank gained one sen to RM8.37, CIMB lost eight sen to RM7.49 and Sime Darby was down five sen to RM8.85.

Volume on the Main Market decreased to 916.54 million shares valued at RM1.25 billion from 1.06 billion shares valued at RM1.54 billion on Monday.

Turnover on the ACE market increased to 166.23 million units worth RM27.52 million from 156.02 million units worth RM26.49 million previously.

Warrants slipped to 107.83 million shares valued at RM10.16 million from 111 million units valued at RM8.38 million yesterday.

Consumer products accounted for 64.55 million shares traded on the Main Market, industrial products 212.6 million, construction 47.63 million, trade and services 271.32 million, technology 36.63 million, infrastructure 16.4 million, finance 136.63 million, hotels 458,600, properties 91.7 million, plantation 28.79 million, mining 33,000, REITs 2.49 million and closed/fund 27,000. - Bernama

KL shares lower at mid-afternoon

Share prices on Bursa Malaysia remained lower at mid-afternoon today as the FTSE Bursa Malaysia KLCI (FBM KLCI) failed to sustain its position, sliding due to profit-taking activities, dealers said.

As at 3.10pm, the benchmark index declined 11.21 points to 1,480.68, after opening 7.76 points lower at 1,484.13.

Volume stood at 740.35 million shares worth RM663.38 million, with losers leading gainers 453 to 190 with 233 others unchanged and 594 untraded.

The Finance Index fell 62.48 points to 13,431.72, the Plantation Index declined 51.82 points to 7,513.48 and the Industrial Index lost 18.5 points to 2,707.14.

The FBM Emas Index decreased 75.261 points to 10,094.06, the FBM Mid 70 Index fell 94.29 points to 10,860.89 and the FBM Ace ndex declined 7.13 points to 4,024.31.

Among active stocks, GPRO added 5.5 sen to 24.5 sen, Maxbiz gained 4 sen to 13 sen and MBSB-Wa rose 1 sen to 91.5 sen.

For the heavyweights, Maybank decreased 1 sen to RM8.35, CIMB fell 8 sen to RM7.89 and Sime Darby declined 3 sen to RM8.87. -- Bernama

Market Commentary

The FBM KLCI index lost 16.25 points or 1.09% on Tuesday. The Finance Index fell 0.45% to 13433.37 points, the Properties Index dropped 1.87% to 947.79 points and the Plantation Index down 1.06% to 7484.96 points. The market traded within a range of 11.29 points between an intra-day high of 1485.90 and a low of 1474.61 during the session.

Actively traded stocks include GPRO, MBSB-WA, MAXBIZ, MBSB, JCY, MBSB-CA, AIRASIA, HIRO-WA, SUMATEC and SUMATEC-WA. Trading volume decreased to 1193.45 mil shares worth RM1293.60 mil as compared to Monday’s 1331.98 mil shares worth RM1581.95 mil.

Leading Movers were PBBANK (+4 sen to RM12.76), HLBANK (+12 sen to RM10.72), MAYBANK (+1 sen to RM8.37), PETGAS (+4 sen to RM13.14) and KLK (+4 sen to RM21.10). Lagging Movers were GENTING (-36 sen to RM10.40), IOICORP (-16 sen to RM5.09), TENAGA (-17 sen to RM5.81), GENM (-16 sen to RM3.69) and CIMB (-8 sen to RM7.49). Market breadth was negative with 198 gainers as compared to 583 losers.-- JF Apex Securities Bhd

Bursa Securities queries GPRO over high volume

KUALA LUMPUR (Nov 1): Bursa Malaysia Securities has queried CPRO Technologies Bhd over the unusual market activity (UMA) in the trading of its shares.

It had on Tuesday issued an UMA query on the sharp increase in price and high volume in GPRO's shares.

At 4.36pm, GPRO is up 5.5 sen to 24.5 sen. Turnover was 46 million shares, at prices ranging from 18.5 to 25.5 sen.

KL shares easier at midday

Share prices on Bursa Malaysia ended the morning session lower today, led by the manufacturing and services sectors following weak data from China, dealers said.

At 12.30pm, the 30-stock index was 7.71 points lower at 1,484.18, after opening 7.76 points lower at 1,484.13, as continuous selling pressure pulled the index into negative territory.

Dealers said China's purchasing managers index for October, a key indicator of manufacturing activity, declined for the first time in three months.

It fell to 50.4 in October from 51.2, reflecting the slow pace of China's manufacturing expansion.

HwangDBS Vickers said the weakness became more pronounced with investors cautious over weak leads from European markets.

Greek Prime Minister George Papandreou has pledged to put the European Union's agreement on financing for Greece to a referendum.

"We expect the benchmark FBM KLCI to not be spared the bearish external sentiment. The index should come under selling pressure today, possibly retreating towards its immediate support level of 1,475," the research house said.

Meanwhile, volume stood at 584.83 million shares worth RM501.87 million, with losers leading gainers 394 to 193 with 241 others unchanged and 642 untraded.

The Finance Index fell 42.91 points to 13,451.29, the Plantation Index declined 26.82 points to 7,538.48 and the Industrial Index lost 11.53 points to 2,714.11.

The FBM Emas Index decreased 54.21 points to 10,115.11, the FBM Mid 70 Index fell 73.72 points to 10,881.46 and the FBM Ace Index declined 0.37 of a point to 4,031.07.

Among the active stocks, Maxbiz gained four sen to 13 sen, MBSB-Wa rose three sen to 93.5 sen and GPRO added four sen to 23 sen.

Among the heavyweights, Maybank increased one sen to RM8.37, CIMB fell nine sen to RM7.84 and Sime Darby decreased four sen to RM8.86. -- Bernama

KL shares lower at mid-morning

Share prices on Bursa Malaysia turned lower at mid-morning today on profit taking in key heavyweights, led by Genting, dealers said.

At 11am, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) declined 8.15 points to 1,483.74, after opening 7.76 points lower at 1,484.13.

Losers led gainers 345 to 155 while 210 counters were unchanged, 760 untraded and 20 others suspended.

A total of 399.54 million shares worth RM317.6 million were traded.

The Finance Index fell 30.7 points to 13,463.5, the Plantation Index declined 43.32 points to 7,521.98 and the Industrial Index lost 11.63 points to 2,714.01.

The FBM Emas Index decreased 56.761 points to 10,112.56, the FBM Mid 70 Index fell 76.87 points to 10,878.31 and the FBM Ace Index rose 8.28 points to 4,039.72.

Among active stocks, investment holdings company Maxbiz Corp, which has been issued an unusual market activity (UMA) query by Bursa Malaysia, rose four sen to 13 sen, GPRO Technologies added 3.5 sen to 22.5 sen and MBSB gained three sen to RM1.80.

For the heavyweights, Maybank rose one sen to RM8.37, CIMB fell eight sen to RM7.49, Sime Darby lost four sen to RM8.86 and Genting declined four sen to RM3.81. -- BERNAMA

Market Commentary

The FBM KLCI index gained 10.89 points or 0.74% on Friday. The Finance Index increased 0.97% to 13420.59 points, the Properties Index up 0.46% to 966.84 points and the Plantation Index rose 0.03% to 7494.68 points. The market traded within a range of 10.05 points between an intra-day high of 1488.20 and a low of 1478.15 during the session.

Actively traded stocks include HIRO-WA, HARVEST-WA, GPRO, HARVEST, MBFHLDG-WA, TIMECOM, HIRO, HUBLINE, SAAG and RAMUNIA-WA. Trading volume increased to 1877.90 mil shares worth RM2295.28 mil as compared to Thursday’s 1877.17 mil shares worth RM2413.17 mil.

Leading Movers were CIMB (+18 sen to RM7.46), GENTING (+30 sen to RM10.60), MAYBANK (+6 sen to RM8.35), PETCHEM (+10 sen to RM6.41) and SIME (+5 sen to RM8.90). Lagging Movers were IOICORP (-12 sen to RM5.14), UMW (-7 sen to RM6.59), DIGI (-10 sen to RM31.50) and YTL (-1 sen to RM1.51). Market breadth was positive with 470 gainers as compared to 338 losers. -- JF Apex Securities Bhd

KL shares bullish at midafternoon

Share prices on Bursa Malaysia were higher at midafternoon today, tracking the positive movements on the Asian bourses, dealers said.

As at 2.46pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) index advanced 11.10 points to 1,482.03. It opened 9.29 points better at 1,480.22.

The Finance Index rose 107.13 points to 13,398.46, Industrial Index was up by 1.37 points to 2,702.71 and the Plantation Index increased 23.40 points to 7,515.86.

The FBM Emas rose 76.73 points to 10,125.87 and the FBM 70 Index improved by 107.561 points to 10,993.87.

The FBMT100 increased by 79.341 points to 9,943.69 and the FBM Ace Index added 6.39 points to 4,069.36.

Gainers thumped losers by 450 to 271 while 311 counters were unchanged, 444 untraded and 25 others suspended.

Volume amounted to 1.283 billion shares worth RM1.217 billion.

Of the active counters, Hubline gained half sen to 10 sen, GPRO Technologies added 1.5 sen to 21 sen and Compugates added one sen to seven sen.

Pan Malaysia Capital, however, was flat at 8.5 sen.

Among heavyweights, Maybank added five sen to RM8.34, CIMB rose 13 sen to RM7.41, Petronas Chemicals earned eight sen to RM6.39 and Maxis jumped four sen to RM5.33.

Sime Darby, however, declined three sen to RM8.82. -- Bernama

FBMKLCI rises 0.8pc at midday

Share prices ended the morning session higher today in line with the positive movement on regional markets, prompted by Europe's decision to boost the region's rescue fund and ease the debt crisis, dealers said.

At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 11.47 points to 1,482.40, after opening 9.29 points higher at 1,480.22.

The benchmark index moved between a high of 1,488.20 and fell to a low of 1,480.22.

Hong Leong Investment Bank said riding on the overnight bullish Wall Street and Europe markets, the FBM KLCI is expected to continue its uptrend towards the 1,500 psychological barrier after a mild profit taking consolidation.

The Finance Index rose 103.08 points to 13,394.41, the Industrial Index added 4.88 points to 2,706.22 and the Plantation Index advanced 35.65 points to 7,528.11.

The FBM Emas gained 79.58 points to 10,128.72, the FBMT100 increased 81.971 points to 9,946.32 and the FBM Ace Index added 21.23 points to 4,084.20, while the FBM 70 Index increased 110.90 points to 10,997.21.

Advancers led decliners by 456 to 260 while 303 counters were unchanged, 457 untraded and 25 others suspended.

Trading was firm with a total volume of 1.215 billion shares worth RM1.126 billion.

Of the active counters, Hubline and Compugates added half-a-sen each to 10 sen and 6.5 sen respectively, while GPRO Technologies and Time DotCom gained 1.5 sen each to 21 sen and 64 sen.

Among heavyweights, Maybank increased five sen to RM8.34, CIMB jumped 11 sen to RM7.39, Sime Darby was down three sen to RM8.82 and Petronas Chemicals earned nine sen to RM6.40. -- Bernama