Guan Chong won’t proceed with listing in Singapore

PETALING JAYA: Main Board-listed Guan Chong Bhd will not proceed with its secondary initial public offering (IPO) on the Singapore Exchange (SGX-ST) “for the time being.”

In a statement, managing director and CEO Brandon Tay said that after much consideration, the processing company wished to reassess its strategic directions with regard to capital requirements for expansion.

“The group remains committed to expanding its global reach and broadening its profile as one of the leading cocoa processors in the world, going forward.

Ultimately, we remain focused on implementing growth strategies to bring sustainable benefit to Guan Chong,” it said.

It did not provide a reason for not proceeding with the IPO for now.

In July, Guan Chong refuted a report that it may want to scrap its plan for a secondary listing in Singapore in favour of selling a stake via a corporate exercise.

Guan Chong had in April announced plans for a secondary listing on the Singapore stock exchange to facilitate access to the island nation’s capital market, expand and diversify its shareholder base, and to enhance its profile in the international market.

The company said then that of the 62 million shares offered, 31 million were new shares and another 31 million were vendor shares that would be offered by certain existing shareholders.

Shares in Guan Chong closed 7 sen lower yesterday to RM3.01. A total of some 291,000 shares were traded.



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KLCI stays below 1,600-level at mid-day break, global woes weigh

KUALA LUMPUR (April 20); The FBM KLCI stayed in negative territory at the mid-day break on Friday in line with generally weaker performance at regional markets.

The FBM KLCI was down a marginal 1.14 points to 1,595.48 at 12.30pm, weighed by losses including at Genting and RHB Capital and CIMB.

Gainers trailed losers by 242 to 313, while 322 counters traded unchanged. Volume was 950.42 million shares valued at RM600.85 million.

The ringgit weakened 0.12% to 3.0693 versus the greenback, crude palm oil futures for the third month delivery fell RM16 per tonne to RM3,461, crude oil gaind 34 cents per barrel to US$102.61 while gold added US$1 an ounce to US$1,643.93.

Asian shares fell and commodity-linked currencies such as the Australian dollar slipped on Friday after disappointing U.S. economic data stirred doubts about the strength of the recovery, according to Reuters.

Renewed worries on the euro zone debt crisis also kept riskier assets under pressure, as a better-than-feared Spanish bond auction failed to allay concerns that Spain may follow Greece, Ireland and Portugal in needing an international bailout, it said.

At the regional markets, Japan’s Nikkei 225 fell 0.35% to 9,555.17, Hong Kong’s Hang Seng Index was down 0.24% to 0.24% to 20,944.10, the Shanghai Composite Index shed 0.60% to 2,392.92, Taiwan’s Taiex fell 1.12% to 7,537.58, South Korea’s Kospi lost 1.25% to 1,974.93 and Singapore’s Straits Times Index was down 0.20% to 3,002.14.

On Bursa Malaysia, Manulife was the top loser in the morning session and fell 14 sen to RM3.22, Batu Kawan and genting fell 10 sen each to RM18.80 and RM10.82, RHB Capital fell nine sen to RM7.43, Mentiga 7.5 sen to 68.5 sen, while SAM Engineering, Pintaras, S P Setia, Guan Chong and CIMB fell seven each to RM3.58, RM2.96, RM3.81, RM2.85 and RM7.56 respectively.

Ariantec was the most actively traded counter with 325.08 million shares traded. The stosk rose six sen to 23.5 sen.

Other actives included Metronic, Focus, CSL, SuperComNet, Astral Supreme, AWC and Utopia.

Gainers included BAT, Aeon Credit, KLK, Panasonic, Country View, Jaya Tiasa, Dutch Lady, Far East, Ta Ann and CBIP.



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World economic concerns weigh on KLCI

KUALA LUMPUR (April 17) : The Malaysian equities barometer rose on Tuesday morning against a backdrop of mixed global economic updates. These include news on European sovereign debt woes which offset the effects of improved retail sales in the US.

Analysts said the FBM KLCI could take the cue from the mixed overnight performance of US equity benchmarks against concerns on the impact of Europe’s debt crisis on world financial markets.

“In the absence of fresh market leads, our Malaysian bourse will probably continue to be range-bound for the time being,” HwangDBS Vickers Research Sdn Bhd wrote in a note.

At 10am, the FBM KLCI added 2.19 points to 1,599.7. Across the exchange, some 476 million shares worth RM183 million were traded, leading to 93 gainers versus 139 decliners.

Among top gainers, PETRONAS GAS BHD [] added 10 sen to RM16.88 while GUAN CHONG BHD [] was up eight sen to RM2.95.

Decliners include NESTLE (M) BHD [] which fell 18 sen to RM55.82 while SARAWAK OIL PALMS BHD [] was down 14 sen to RM6.80.

Among Asian bourses, Japan’s Nikkei 225 climbed 0.38% to 9,506.47 points while Australia’s S&P/ ASX 200 rose 0.32% to 4,315.9. South Korea’s Kospi was up 0.2% to 1,996.6.



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Stocks to Watch LPI, Hong Leong, Guan Chong, Silk

KUALA LUMPUR (April 9): Malaysian shares could see further correction on Tuesday against a backdrop of less-optimistic global economic data. Crucial highlights include the still-weak job market in the US, besides China's inflation growth of 3.6% in March.

China's latest inflation numbers, which came in higher than street estimates, have prompted the anticipation that policymakers will delay monetary loosening to spur the world's second largest economy.

Analysts said Malaysia's FBM KLCI may see sideway consolidation with downward bias, due to global economic concerns.

"Domestically, any correction in the benchmark index is expected to be shallow, with domestic factors holding up the market until the dissolution of the parliament paves way for the next general election," TA Securities Holdings Bhd wrote in a note.

On Monday, the FBM KLCI fell 7.59 points to close at 1,591.28, while US equity futures declined on global economic growth concerns. The S&P 500 futures fell some 1% while the Dow Jones Industrial Average futures was down 0.9%, an indication that US stock markets could decline when markets open.

Stocks to watch on Tuesday include LPI CAPITAL BHD [], HONG LEONG BANK BHD [], GUAN CHONG BHD [], HUA YANG BHD [], Silk Holdings Bhd.

LPI's net profit fell 19% in the first quarter ended March 31, 2012 from a year earlier, as the general insurer's contractual liabilities, lower investment income, and higher operating expenses offset a higher revenue. In a statement to the exchange on Monday, LPI said its net profit during the quarter came to RM31.48 million against RM38.63 million previously. Revenue rose 15% to RM246.06 million from RM213.33 million .

The Securities Commission has approved Hong Leong's plan to issue up to US$1.5 billion (RM4.61 billion) worth of bonds to finance its working capital needs.

Cocoa processor Guan Chong plans to undertake a secondary listing on the Singapore bourse. The firm also plans to reward shareholders with a bonus issue of new shares.

TA Securities has upgraded Hua Yang, a property developer, to a "buy" from "hold" with a target price of RM1.68.

PETROFAC (M) Ltd has extended its anchor handling tug supply vessel contract with Silk in a deal worth RM10.77 million. The company said the contract extension was expected to contribute positively to its earnings for the financial years ending July 31, 2012 and 2013.



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Guan Chong targets secondary listing in Singapore

KUALA LUMPUR (APRIL 9); GUAN CHONG BHD [] is seeking secondary listing on the Main Board of the Singapore Exchange Securities Trading Ltd (SGX).

In a a statement Monday, Guan Chong managing director and chief executive officer Brandon Tay Hoe Lian said the company was aiming for the dual-listing on SGX-ST to facilitate its access to the capital market in Singapore, and giving it the flexibility to tap into additional sources of equity funding for its expansion.

“Aside from improving our market liquidity, the proposed secondary listing will enable the Group to expand and diversify GCB’s shareholder base and improve our market visibility, specifically to the retail and institutional investors in the region.

“As we seek to export more cocoa products through Singapore, this exercise will raise our profile even more in the international market,” said Tay.

Tay said the proposed corporate exercise would entail two parts: firstly, a Public Offering of up to 62 million ordinary shares of 25 sen par, or 19.4% of total existing share capital of 319.7 million shares, comprising 31 million new shares and 31 million vendor shares to be offered by key substantial shareholders; secondly, a 1-for-2 Bonus Issue of up to 205.3 million new shares to the enlarged base of shareholders, subsequent to the Public Offering.

The issue and offer price to the investors in Singapore will be determined at a later date by Guan Chong, he said.

He said the proceeds raised from the planned secondary listing would be used for the expansion of the Group’s existing operations, product development activities, and general working capital requirements, as well as to defray expenses related to the proposal.

The proposed dual-listing exercise was expected to be completed by second half of 2012, said Tay.



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KLCI stays above 1,600-level at mid-day break

KUALA LUMPUR (April 3): The FBM KLCI stayed above the 1,600-level at the mid-day break on Tuesday, in line with the generally overall positive sentiment at key regional markets.

Asian shares rose on Tuesday on the back of strong gains in global equities overnight, after solid manufacturing data from the United States, and as leading Asian exporters offset signs of mild recession in Europe, according to Reuters.

The stronger-than-expected U.S. factory data pushed U.S. stocks to four-year highs, while European shares recorded their biggest daily gain in three weeks despite sluggish factory activity in the euro zone, it said.

The FBM KLCI rose 3.55 points to 1,607.33 at the mid-day break.

Gainers trailed losers by 323 to 294, while 319 counters trade unchanged. Volume was 591.10 million shares valued at RM55.31 million.

The ringgit strengthened 0.27% to 3,0463 versus US dollar; crude palm oil futures for the third month delivery gained RM27 per tonne to RM3,528, crude oil slipped 34 cents per barrel tp US$104.89 and godl rose US$2.15 an ounce to US$1,679.82.

At the regional markets, Hong Kong’s hamng Seng Idnex rose 0.48% to 20,621.40, the Shanghai Composite Index addd 0.47% to 2,262.79, Taiwan’s Taiex rose 1.65% to 7,733.08, South Korea’s Kosp added 0.85% to 2,046.58, whiel Japan’s Nikkei 225 fell 0.60% to 10,048.70 and Singapore’s Straits Times edged down 0.10% to 3,013.18.

Maybank Investment Bank Bhd research maintained its year-end KLCI target of 1,565 points, based on 13.3 times one-year forward earnings.

In a staretegy report released April 3, Maybank IB Research said while external conditions had improved and global financial markets continue to receive liquidity support, Malaysia was not out of the woods yet as the eurozone debt crisis had yet to fully play out, and there were still downside risks to the global economy.

“On the domestic front, an early 13th General Election (13GE), to be followed by the UMNO party elections this year-end, may lend to cautiousness in trading over the next few months,” it said.

On Bursa Malaysia, Dutch lady was the top gainer in the morning session on Tuesday and rose 52 sen top RM36.02, BAT added 42 sen to RM56.48, Carlsberg up 28 sen to RM10.74, Guan Chong 13 sen to RM2.82, United Malacca, Voir and Sarawak Planatations up 12 sen each to RM7.52, 66 sen and RM3.21 rspectively, while Jaya Tiasa and Nestle rose 11 sen each to RM8.63 and RM56.

Ingenuity Solutions was the most actively traded counter with 85.15 million shares done. The stock fell half a sen to 10 sen.

Other actives included Metronic, Naim Indah Corp, SuperComnet, Hubline, Araintec, Carotech, CIMB and Karambunai.

Decliners included Tahps, Genting PLANTATION []s, Cepco, United Plantations, SMPC, PPB, Petronas Dagangan and Can One.



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Guan Chong sees strong revenue in 2012

KUALA LUMPUR: Guan Chong Bhd, one of the top cocoa processors in the world, may see a 30% to 50% increase in revenue for FY12 ending Dec 31, say fund managers with guidance from the management. Its second production line at Batam, Indonesia commences operations in March or April this year.

The second line at Batam will increase Guan Chong’s annual cocoa grinding capacity, in Malaysia and Indonesia combined, by over 40% to 200,000 tonnes.

For FY11, the consensus is for Guan Chong’s revenue to come in at around RM1.3 billion, compared with RM1.17 billion in FY10. A 30% to 50% increase in FY12 will lead to revenue of RM1.69 billion to RM1.95 billion.

“Margin per tonne may be lower [in FY12] but overall group performance will be sustained [due to higher revenue],” its managing director and CEO Brandon Tay Hoe Lian told The Edge Financial Daily in a recent phone interview.

For the nine months to Sept 30, 2011, Guan Chong posted a net profit of RM90.47 million on a revenue of RM990.36 million, an increase of 58.4%, and 18.4% from a net profit of RM57.11 million and revenue of RM836.30 million in the same nine-month period in 2010. For the full FY10, net profit was RM101.15 million on the back of RM1.16 billion in revenue.

Guan Chong is principally involved in manufacturing cocoa-derived food ingredients — cocoa butter, cocoa powder, cocoa cake, and cocoa liquor (cocoa mass). These products are mainly used to produce chocolates, dairy products, bakery products, instant drinks, confectionery and chocolate drinks.

In a statement to Bursa Malaysia recently, Guan Chong said its second production line at Batam is expected to start commercial production in March or April this year. The line will increase Guan Chong’s total annual cocoa grinding capacity to 200,000 tonnes from 140,000 tonnes currently.

Guan Chong’s first production line at Batam has an annual production capacity of 60,000 tonnes, while its plant in Pasir Gudang, Johor, has a capacity of 80,000 tonnes.

Tay expects the additional capacity in Batam to be absorbed by orders from new multinational corporations and existing customers, which include global chocolate manufacturers like MARS, Hershey’s and South Korea’s Lotte Confectionery.

Tay said the recent rebound of cocoa prices will not significantly affect Guan Chong’s margins as most price changes are passed on to its customers.

Cocoa prices surged in recent weeks due to concerns that the nationwide strike in Nigeria (the world’s fourth largest producer) would disrupt supplies, Bloom-berg reported.

For instance, cocoa futures for March delivery were up by as much as 15.9% from US$2,028 (RM6,165.12) per tonne on Jan 9 to US$2,350 per tonne on Jan 12. However, prices are still low compared with a peak of US$3,593 per tonne in March 2011.

“We sell forward as far as a year [into next year] and stock up more than two months of our needs of raw materials,” Tay said.

He added that higher cocoa future prices had actually encouraged more cocoa bean production in countries such as Indonesia, where Guan Chong’s Batam plant sources its cocoa from. And as the company sources cocoa internally in Indonesia it avoids paying taxes, giving it a better cost advantage. This is the main reason Guan Chong is expanding its capacity in Indonesia, the third largest cocoa producer in the world.

On the industry outlook, Tay said demand for cocoa products will remain relatively steady or slightly better than 2011.

Guan Chong’s short-term plan is to ensure that its enlarged operation (with the second production line at Batam) runs smoothly, he said.

“We have been increasing our capacity from 80,000 tonnes in 2010 to 200,000 tonnes in 2012 in just a three-year time frame. We need to digest the increased capacity and fine-tune our overall performance to the top,” he said.

On its long-term plans, Tay said: “We will continue to seek opportunities to expand Guan Chong’s downstream business and synergy to invest in related industries.”

Guan Chong, with total issued shares of 319.74 million, had a market capitalisation of RM745 million at its close of RM2.33 on Tuesday. It had a book value of 78.4 sen as at end-September 2011.

Its share price has gained around 6% over the past 52 weeks and has traded between a 52-week high of RM3.10 and a low of RM1.69.

Since its listing in 2005 until 2010, Guan Chong has chalked up compound annual growth rates of about 30% for revenue and 43% for net profit.

In FY10, Guan Chong paid total dividends of 10.625 sen per share representing a payout ratio of 27.5% of its profit for the year. For FY11, it has declared dividends amounting to 9.25 sen per share to date, pending the release of its 4QFY11 results. In 2010, Guan Chong set a dividend policy of 25% which will take effect from FY11.

According to Bloomberg data, Guan Chong is trading at a forward price-earnings ratio of 6.3 times, a wide valuation compared with its Singapore-listed peer Petra Foods Ltd, with a forward PER of about 15 times.


This article appeared in The Edge Financial Daily, February 2, 2012.



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HwangDBS keeps 'buy' call on Guan Chong

HwangDBS Vickers Research has maintained a "buy" call on Guan Chong Bhd shares with a lower target price of RM2.80.

In a research note today, HwangDBS said Guan Chong was expected to meet its full-year financial year 2011 net profit estimate of RM118.8 million but lack order visibilty post-financial year 2011.

HwangDBS said beyond the near-germ global uncertainties, the group was poised to be among the top five largest cocoa processors in the world.

"The group normally signs forward contracts with buyers to sell cocoa butter and cocoa powder or cake products to secure sales upfront," it said.

It said Guan Chong was also a net beneficiary of a stronger US dollar as nearly all receivables (exports accounted for over 95 per cent of sales) and payables were dominated in US dollar.

"This also provides a natural edge for the group's borrowings (RM384 million at end-September 2011), which are mostly denominated in US dollar and primarily used to purchase cocoa beans," it said.

HwangDBS said the stock, after plunging from a high of RM2.52 in November 2011 to a low of RM1.99 in December 2011, has recovered to RM2.33 currently.

It said the progressive disposal of 10.3 million Guan Chong shares and the cessation of Lembaga Tabung Angkatan Tentera as a substantial shareholder at end-December 2011 may lift near-term overhang on the stock. -- Bernama



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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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LTAT sells 10m Guan Chong shares

KUALA LUMPUR (Jan 13): Lembaga Tabung Angkatan Tentera (LTAT) disposed of 10.27 million shares of GUAN CHONG BHD [] on Dec 30, 2011.

A filing with Bursa Malaysia showed that after the disposal of the 3.23% stake, the superannuation fund had ceased to be a substantial shareholder as its stake was reduced to 5.90 million shares or 1.85%.

Guan Chong manufactures cocoa-derived food ingredients such as cocoa mass, cocoa butter, cocoa cake and cocoa powder.

The share price closed at RM2.06 on Dec 30, but since then, the share price has been trending upwards and closed at RM2.38 on Friday.



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KLCI extends gains for seventh day

KUALA LUMPUR (Dec 30): The FBM KLCI rose for the seventh day on Friday, and stayed above the 1,500-point level for the fourth day running, in line with the gains at most global markets.

US stocks rallied on Thursday, moving the S&P 500 back in positive territory for 2011 ahead of the last trading day of the year, on more positive signals on the U.S. economy, according to Reuters.

The FBM KLCI was up 5.42 points to 1,512.11 at mid-morning, lifted by select blue chips.

Gainers led losers by 216 to 139, while 264 counters traded unchanged. Volume was 233.73 million shares valued at RM156.04 million.

At the regional markets, Japan’s Nikkei 225 rose 0.39% to 8,431.49, Hong Kong’s Hang Seng Index added 0.42% to 18,474.82, the Shanghai Composite Index gained 0.63% to 2,187.25, Taiwan’s Taiex edged up 0.10% to 7,081.62 while Singapore’s Straits Times Index shed 0.21% to 2,667.09.

BIMB Securities Research in a note Dec 30 said it may be holiday mood for many but the equity markets are determined to end 2011 with a bang.

Encouraging signs of improved economic outlook from the US and a not too shabby Italian bond auction have placed investors on a steadier platform before entering into 2012, it said.

“For now, with 2012 just around the corner such positive news would be a welcomed sight and boost sentiments hence an all round gains by European bourses,” it said.

The research house said on Wall Street, the Dow Jones Industrial Average recorded a 135 point jump to almost 12,300 or an impressive 6% year-to-date improvement.

Meanwhile in Asia, the overall performance was rather mixed with Malaysia posting another positive session registering another 2.6 points gain to remain above the crucial 1,500 level, it said.

“We presume the FBMKLCI to maintain its uptrend with 1,515 as the immediate resistance.

“Though it falls short of our 1,530 closing target for 2011 we are still pleased,” it said.

On Bursa Malaysia, BAT was the top gainer at mid-morning and rose 34 sen to RM49.94; Petronas Gas was up 10 sen to RM15.30, Guan Chong up nine sen to RM2.10, Box-Pak eight sen to RM2.31, YHS and DiGi added seven sen each to RM1.92 and RM3.85, while KLK, Sime Darby and KPJ were up six sen each to RM22.74, RM9.06 and RM4.68.

Mulpha was the most actively traded counter with 22 million shares done. The stock added one sen to 39.5 sen.

Other actives included Utopia, TMS, LFE Corp, Scomi Marine, Sanichi and Scomi.

The decliners included Batu Kawan, Sunchirin, Hunza PROPERTIES [], GAB, Theta, KrisAssets, Nestle and Esso.



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KLCI stays in the red at mid-day, struggles to breach 1,500-level

KUALA LUMPUR (Dec 28): Asian stocks retreated on Wednesday as investor sentiment remained weighed by the looming euro zone debt crisis, while a survey showed that confidence among South Korea's largest companies fell to its lowest in four months in January.

The FBM KLCI was down 2.32 points to 1,498.59 at the mid-day break, weighed by select blue chips.

Gainers trailed losers by 227 to 316, while 278 counters traded unchanged. Volume was 558.51 million shares valued at RM332.21 million.

The ringgit weakened 0.14% to 3.1720 versus the US dollar; crude palm oil futures for the third month delivery rose RM32 per tonne to RM3,191, crude oil gained two cents per barrel to US$101.36 while gold fell US$6.22 an ounce to US$1,587.00.

Asian shares eased on Wednesday in low volume with many market players away for year-end holidays, while oil kept gains from the previous day on concerns about possible supply disruptions after Iran threatened to stop the flow of oil from the Gulf, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index fell 0.67% to 18,503.67, South Korea’s Kospi lost 1.13% to 1,821.14, the Shanghai Composite Index fell 0.66% to 2,151.97, Singapore’s Straits Times Index lost 0.30% to 2,665.58, Taiwan’s Taiex shed 0.11% to 7,077.15 while Japan’s Nikkei 225 was flat at 8,440.65.

On Bursa Malaysia, losers included Warisan that fell 38 sen to RM2.41, Batu Kawan down 18 sen to RM17.32, Top Glove and Guan Chong lost 11 sen each to RM4.38 and RM1.98, Nestle, Kluang and HLFG fell 10 sen each to RM56.70, RM2.60 and RM11.70 respectively, while Lafarge Malayan Cement, Harvest Court and UMW fell nine sen each to RM6.81, RM1.01 and RM6.89 respectively.

Among the gainers, Petronas Gas added 40 sen to RM14.80, BAT 30 sen to RM49.30, United PLANTATION []s 20 sen to RM18.80, DKSH 16 sen to RM1.54, KrisAssets up 13 sen to RM6.05, Hup Seng and GAB up 10 sen each to RM1.80 and RM13.30, Tan Chong gained eight sen to RM4.12 and Kwantas was up six sen to RM2.04.

The actives included Utopia, Proton, JCY, MBF Holdings warrants and Vastalux.



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KLCI stays in the red at mid-day, struggles to breach 1,500-level

KUALA LUMPUR (Dec 28): Asian stocks retreated on Wednesday as investor sentiment remained weighed by the looming euro zone debt crisis, while a survey showed that confidence among South Korea's largest companies fell to its lowest in four months in January.

The FBM KLCI was down 2.32 points to 1,498.59 at the mid-day break, weighed by select blue chips.

Gainers trailed losers by 227 to 316, while 278 counters traded unchanged. Volume was 558.51 million shares valued at RM332.21 million.

The ringgit weakened 0.14% to 3.1720 versus the US dollar; crude palm oil futures for the third month delivery rose RM32 per tonne to RM3,191, crude oil gained two cents per barrel to US$101.36 while gold fell US$6.22 an ounce to US$1,587.00.

Asian shares eased on Wednesday in low volume with many market players away for year-end holidays, while oil kept gains from the previous day on concerns about possible supply disruptions after Iran threatened to stop the flow of oil from the Gulf, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index fell 0.67% to 18,503.67, South Korea’s Kospi lost 1.13% to 1,821.14, the Shanghai Composite Index fell 0.66% to 2,151.97, Singapore’s Straits Times Index lost 0.30% to 2,665.58, Taiwan’s Taiex shed 0.11% to 7,077.15 while Japan’s Nikkei 225 was flat at 8,440.65.

On Bursa Malaysia, losers included Warisan that fell 38 sen to RM2.41, Batu Kawan down 18 sen to RM17.32, Top Glove and Guan Chong lost 11 sen each to RM4.38 and RM1.98, Nestle, Kluang and HLFG fell 10 sen each to RM56.70, RM2.60 and RM11.70 respectively, while Lafarge Malayan Cement, Harvest Court and UMW fell nine sen each to RM6.81, RM1.01 and RM6.89 respectively.

Among the gainers, Petronas Gas added 40 sen to RM14.80, BAT 30 sen to RM49.30, United PLANTATION []s 20 sen to RM18.80, DKSH 16 sen to RM1.54, KrisAssets up 13 sen to RM6.05, Hup Seng and GAB up 10 sen each to RM1.80 and RM13.30, Tan Chong gained eight sen to RM4.12 and Kwantas was up six sen to RM2.04.

The actives included Utopia, Proton, JCY, MBF Holdings warrants and Vastalux.



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KLCI drifts lower at mid-morning

KUALA LUMPUR (Dec 14): The FBM KLCI drifted lower on Wednesday, marginally extending its losses at mid-morning in line with the overall weaker sentiment at key regional markets.

At 10am, the FBM KLCI fell 1.60 points to 1,463.79 at 10am.

Gainers edged losers by 178 to 171, while 200 counters traded unchanged. Volume was 337.92 million shares valued at RM154.64 million.

Asian shares drifted lower and the euro floundered near an 11-month low on Wednesday after the Federal Reserve failed to take any new steps to stimulate growth and offset the chilling effects of Europe's still-unresolved debt crisis, according to Reuters.

Wall Street stocks fell after the US central bank's final policy meeting of the year, at which the Fed noted modest improvement in the US economy but added that market turbulence in the face of Europe's woes posed a big risk, it said.

At the regional markets, Hong Kong’s Hang Seng Index lost 0.71% to 18,316.30,the Shanghai Composite Index fell 0.59% to 2,235.29, Singapore Straits Times Index was down 0.42% to 2,674.57, Japan’s Nikkei lost 41% to 8,517.57, South Korea’s Kospi fell 0.38% to 1,857.04 and Taiwan’s Taiex was down 0.31% to 6,874.73.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Wednesday said the FBM KLCI’s resistance areas of 1,467 and 1,493 would cap market gains, whilst the weaker support areas may be located at 1,448 and 1,462.

“Due to the US markets’ poorer tone last night, we will have a volatile day for the local index today with further profit taking and liquidation,” he said.

On Bursa Malaysia, KLK and BAT fell 26 sen each to RM22.84 and RM48.44, Tecnic down 21 sen to RM3.10, BLD PLANTATION []s fell 16 sen to RM7.14, Hong Leong Bank was down 14 sen to RM10.40, YLI and Astral Asia down eight sen each to 32 sen and RM1.40, while AMMB, Boustead and Cypark fell seven sen each to RM5.79, RM5.35 and RM1.35 respectively.

Among the gainers, Nestle added 50 sen to RM56.50, Dutch Lady rose 20 sen each to RM26.60, F&N up 18 sen to RM18.40, GAB 16 sen to RM13.14, BIMB 12 sen to RM1.85, Goldis, CI Holdings and Guan Chong rose 11 sen each to RM1.90, RM1.28 and RM2.22 respectively, Kumpulan Europlus gained seven sen to RM1.10, while DiGi added six sen to RM3.73.

Meanwhile, the actives included Sanichi, Envair, TFP, Kurnia Asia, OSK, Takaso and Proton warrants.



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KLCI closes lower but narrows losses

KUALA LUMPUR (Dec 13): The FBM KLCI narrowed its losses on Tuesday, but investor sentiment across the region remained jittery as the Eurozone debt crisis and fear of credit downgrades in that region kept investors on the sidelines.

The FBM KLCI close 1.71 points lower at 1,465.39. The index had earlier fallen to its intra-morning low of 1,457.31.

Losers edged gainers by 386 to 344, while 315 counters traded unchanged. Volume was 1.83 billion shares valued at RM1.39 billion.

Meanwhile, European shares rose on Tuesday as investors bought up beaten-down stocks following sharp falls on Monday after a plan outlined at last week's EU summit for stricter budget rules failed to ease worries about the region's debt crisis, according to Reuters.

Gains, however, are likely to be short-lived on concern about credit downgrades after Moody's Investors Service said its ratings for all EU member states would be reviewed in the first quarter of 2012 as well as eight Spanish banks, it said.

Also, market activity is likely to be subdued ahead of the release of US retail sales for November due out later and the outcome of the Federal Reserve's FOMC meeting, though no change in U.S. interest rates is expected, it said.

At the regional markets, the Shanghai Composite Index fell 1.87% to 2,248.59, South Korea’s Kospi lost 1.88% to 1,864.06, Japan’s Nikkei was down 1.17% to 3,292.79, Taiwan’s Taiex lost 0.76% to 6,896.31, Hong Kong’s Hang Seng Index fell 0.69% to 18,447.17 and Singapore’s Straits Times Index.

On Bursa Malaysia, JobStreet was the top loser and fell 28 sen to RM2.50; PPB lost 24 sen to RM16.36, NSOP down 20 sen to RM5.36, Genting 19 sen to RM10.64, Guan Chong 15 sen to RM2.15, DKSH 14 sen to RM1.59, Sungei Bagan and Genting PLANTATION []s 13 sen each to RM2.82 and RM8.15, while MISC was down 12 sen to RM5.48.

Sanichi was the most actively traded counter with 170.3 million shares done. The stock added 5.5 sen to 23 sen.

Other actives included Utopia, Proton, warrants of MAS, BIMB, MBSB and Affin respectively.

Among the gainers, BAT added RM1.50 to RM48.70, GAB and KLK up 70 sen each to RM12.98 and RM23.10, Dutch Lady 42 sen to RM26.40, HLFG 38 sen to RM11.70, Carlsberg 31 sen to RM8.46, Orient 29 sen to RM5.30, JT International 24 sen to RM6.92, F&N 22 sen to RM18.22 and Petronas Dagangan 20 sen to RM17.38.



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Stocks to watch: Harvest, Hibiscus, SEGi, Guan Chong, Tenaga

KUALA LUMPUR (Nov 9): HARVEST COURT INDUSTRIES BHD [] is expected to be in focus on Thursday, Nov 10 especially after the surge in the share price to multi-year highs amid high volume, prompting Bursa Malaysia Securities to caution investors.

Also in focus could be Hibiscus Petroleum Bhd, SEG INTERNATIONAL BHD [], GUAN CHONG BHD [] and TENAGA NASIONAL BHD [].

Bursa Securities cautioned investors over the recent sharp rise in the price and volume of Harvest shares and warrants.

“Notwithstanding the recent announcements made by the company, Bursa Securities would like to advise investors to exercise caution and to make informed decisions in the trading of Harvest and Harvest-WA,” it said on Wednesday.

Harvest closed up 27 sen to RM1.45 with 24.20 million shares done while the warrants rose 21 sen to RM1.26 with 32.15 million units done. The caution could see speculators taking profit on Thursday.

Also under the watch of Bursa Securities was Hibiscus and Emico Bhd. The regulator had queried the company over the sharp increase in price and high volume of the securities recently.

However, in response to the query, Hibiscus said it was not aware of any factors which may have contributed to the unusual market activity.

It said it had announcement the fulfillment of the Tranche 1 conditions as set out in the share subscription agreement set out on Oct 25 relating to the proposed subscription and proposed acquisition of shares in Lime Petroleum Plc.

Meanwhile, Emico, whose shares and warrants had surged in active trade on Wednesday, said it was unaware of the reasons. Trading was suspended late Wednesday and resumes on Thursday. The warrants surged 23 sen to 30 sen with 11.87 million units done while the shares rose 19.5 sen to 39.5 sen with 89.36 million shares transacted.

SEG International’s earnings rose 66.3% to RM18.32 million in the third quarter ended Sept 30, 2011 from RM11.01 million a year ago, boosted by an increase in student enrolments.

It said on Wednesday, revenue increased by 24.1% to RM69.95 million from RM56.36 million while earnings per share were 3.50 sen versus 2.22 sen.

For the nine-month period, its net profit increased by 74.2% to RM54.57 million from RM31.32 million.

Guan Chong Bhd’s net profit rose 45% to RM25.94 million in the third quarter ended Sept 30, 2011 from RM17.86 million a year ago.

It said on Wednesday that revenue increased by 23.3% to RM365.72 million from RM296.56 million while earnings per share were 8.16 sen versus 5.59 sen.

Guan Chong said the higher turnover was mainly due to higher sales volume of cocoa products as the result of contribution from its Batam plant, which started in February.

Standard & Poor's Ratings Services had revised downwards its outlook on Tenaga Nasional Bhd to negative from stable on weakened profitability.

"We revised the outlook to negative because we expect Tenaga's weakened profitability and higher operating costs to continue to weaken its significant financial risk profile," said S&P credit analyst Rajiv Vishwanathan.

"Our view is based on our anticipation that higher fuel prices stemming from a shortage of gas supply will continue to burden the company's cash flows. Moreover, the company is likely to incur capital expenditure on its hydroelectric and thermal power projects over the next 12 months."

Guan Chong 3Q net profit up 45% to RM25.94m

KUALA LUMPUR (Nov 9): GUAN CHONG BHD []’s net profit rose 45% to RM25.94 million in the third quarter ended Sept 30, 2011 from RM17.86 million a year ago.

It said on Wednesday that revenue increased by 23.3% to RM365.72 million from RM296.56 million while earnings per share were 8.16 sen versus 5.59 sen.

Guan Chong said the higher turnover was mainly due to higher sales volume of cocoa products as the result of contribution from its Batam plant, which started in February.

“The profit before tax for the quarter ended Sept 30 increased to RM 33.82 million. This is mainly attributed by higher sales volume and gain on commodity futures contracts,” it added.

However, when compared with the second quarter ended June 30, the group’s profit before tax declined to RM 33.82 million from RM 40.24 million. The decrease was mainly caused by unrealised loss arising from foreign exchange due to appreciation of US Dollar.

For the nine-month period, it earnings rose 58.4% to RM90.47 million from RM57.11 million while revenue increased by 18.4% to RM990.36 million from RM836.29 million.