MIDF Research maintains Neutral on Hartalega, ups target price to RM7.50

KUALA LUMPUR (May 9): MIDF Research has maintained its Neutral rating on HARTALEGA HOLDINGS BHD [] and raised it target price to RM7.50 (from RM7.06 previously), which it said was derived from Hartalega's higher 3-year historical average PE ratio of 12 times, based on its FY13 estimated EPS of 62.5 sen per share.

“We are of the opinion that at the current price, the stock fairly reflects its fundamentals, thus limiting its upside potential.

“Therefore, we maintain our NEUTRAL call on the stock,” the research house said in a note Wednesday.



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Stocks to Watch CIMB, Kencana, Hartalega, Grand-Flo

KUALA LUMPUR (May 8): A slew of corporate announcements, including CIMB Group Holdings Bhd's planned acquisition of 60% of Bank of Commerce (BoC) in the Philippines, could help pique investors' appetite at Bursa Malaysia on Wednesday.

Elsewhere, investor sentiment remains on tenterhooks as the weekend results of elections in Europe have raised the specter of the troubles faced by the beleaguered eurozone.

Investors sold European shares and the euro on Tuesday, unnerved by the political stalemate in Greece and the threat of a Franco-German split over policies to tackle the region's debt crisis, according to Reuters.

Among the stocks that could be in focus are CIMB Group Holdings Bhd, KENCANA PETROLEUM BHD [], HARTALEGA HOLDINGS BHD [] and GRAND-FLO SOLUTION BHD [].

CIMB Group Holdings has entered into conditional share purchase agreements (SPA) with San Miguel PROPERTIES [] Inc, San Miguel Corporation Retirement Plan and various minority shareholders for the proposed acquisition of 60% of Bank of Commerce (BoC) in the Philippines. In a statement on Tuesday, CIMB said the acquisition was for the equivalent of RM881 million cash.

Kencana's unit Kencana HL Sdn Bhd has been awarded a RM460 million engineering, procurement, CONSTRUCTION [] and commissioning (EPCC) contract from Murphy Sarawak Oil Co Ltd. In a statement on Bursa Malaysia on Tuesday, it said that Kencana HL had received a letter of award from Murphy for the fabrication of offshore topsides.

Hartalega declared a third interim dividend of six sen per share single tier for the financial year ended March 31, 2012, to be paid on June 13. Its net profit for the fourth quarter ended March 31, 2012 fell 4.55% to RM50.01 million from RM52.39 million a year earlier, despite a 24.77% increase in revenue to RM240.22 million.

The company said on Tuesday that the significant increase in revenue was in line with the continuous expansion in production capacity and increase in demand. However, its bottom line was impacted by the increase in raw material prices of nitrile latex, fuel costs and more competitive sales pricing for the current quarter compared with the corresponding quarter of the preceding year, it said.

Grand-Flo's net profit for the first quarter ended March 31, 2012 rose 5.91% to RM2.22 million from RM2.09 million a year earlier, due mainly to strong tracking solutions sales abroad. It said on Tuesday that its revenue jumped 19.6% to RM20.37 million from RM17.03 million. Meanwhile, earnings per share were 1.39 sen compared to 1.44 sen a year ago.

Grand-Flo proposed a final dividend of 1.2 sen per share, comprising a gross dividend of 0.037 sen per share and a tax exempted dividend of 1.163 sen per share for foteh financial year ended Dec 31, 2011. Grand-Flo said that in line its results, it proposed to set a dividend policy to distribute a minimum 20% of its net profit as annual dividends to shareholders effective from the financial year ended Dec 31 2011, subject to shareholders' approval.



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Hartalega 4Q net profit down 4.55% to RM50.01m, declares third interim dividend of 6 sen

KUALA LUMPUR (May 8): HARTALEGA HOLDINGS BHD [] net profit for the fourth quarter ended March 31, 2012 fell 4.55% to RM50.01 million from RM52.39 million a year earlier, despite a 24.77% increase in revenue to RM240.22 million.

The company said on Tuesday that the significant increase in revenue was in line with the continuous expansion in production capacity and increase in demand.

However, its bottom line was impacted by the increase in raw material prices of nitrile latex, fuel cost and more competitive sales pricing for the current quarter compared with the corresponding quarter of the preceding year, it said.

Earnings per share was 13.73 sen compared with 14.42 sen a year earlier, whiel net assets per share was RM1.70.

The company declared a third interim dividend of six sen per share single tier for the financial year ended March 31, 2012 to be paid on June 13.

For the financial year ended March 31, Hartalega’s net profit was up 5.95% to RM201.62 million from RM190.29 million.

Hartalega said revenue for the year rose to RM931.08 million from RM734.92 million.

Reviewing its performance, Hartalega said the global demand for nitrile gloves continued to grow by 29% for the year 2011 due mainly to switching momentum from natural rubber gloves to nitrile gloves.

It said his had spurred a significant increase in nitrile gloves production capacity by the industry which it was confident would be more than matched by resilient demand dynamics.

‘Furthermore, we do not expect a price war from the second half of 2012, as claimed by certain quarters as global demand growth continues to outpace growth in industry capacity,” it said.

The company said that on the contrary, it had to put some of its customers on allocation for their April 2012 purchase and beyond despite adding two new production lines in plant 5 to meet escalating demand.

“Based on our experiences, there are no expectations for a price war in the foreseeable future.

“Rather, the continued expansion in global demand for nitrile rubber gloves would be satisfied by industry capacity increase. This would only generate healthy competition among competitive rubber glove manufacturers,” it said.

Hartalega said it had achieved the internal target growth for both sales revenue and net profit for the financial year ended 31 March 2012.

“The board of directors is optimistic that the Group will achieve continuous growth and securing better results for the next financial year,” it said.



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

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

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

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

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

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

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

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

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

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

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

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

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



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KLCI weighed down by US and Europe economic data

KUALA LUMPUR (May 3) : Malaysians stocks fell on Thursday morning in tandem with Asian bourses after US markets finished weaker in overnight trade.

Global investors have responded negatively to fresh updates on slower private-sector hiring in the US and weaker factory output figures from Europe.

At 9.59am, the FBM KLCI fell 2.44 points to 1,579.95. Across the exchange, some 321 million shares worth RM164 million were traded, leading to 155 gainers versus 173 decliners.

Top gainers include HARTALEGA HOLDINGS BHD [] which added 28 sen to RM8.08 while AIRASIA BHD [] rose 14 sen to RM3.47.

Among decliners, DUTCH LADY MILK INDUSTRIES BHD [] was down 40 sen to RM33 while PPB GROUP BHD [] fell 16 sen to RM16.54.

Most actively-traded was Naim Indah Corp Bhd which fell 0.5 sen to 51 sen with some 34 million shares transacted.

Across Asia, Australia’s S&P/ASX 200 added 0.02% to 4,437 points, South Korea’s Kospi fell 0.2% to 1,995.01, while Singapore’s Straits Times was down 0.05% to 3,004.66. The Japan bourse is closed for a public holiday.



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CIMB Research maintains Neutral on rubber glove sector

KUALA LUMPUR (April 126): CIMB Research has maintained its Neutral rating on the rubber glove sector and said the expected implementation of a minimum wage policy by end-Apr would reduce its core EPS forecasts by 2.0-8.9% assuming a floor monthly wage of RM1,000.

In a note Thursday, CIMB Research said this was an opportunity for efficient glovemakers to gain share when smaller competitors fail.

“Our earnings estimates and target prices are unchanged as details are unknown. Key variables include the i) wage level, ii) treatment of foreign workers, iii) classification of ex-gratia payments and iv) timeline.

“We remain Neutral on the sector, with Hartalega being our top pick and Top Glove our top sell,” it said.



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KLCI struggles to breach 1,600-mark

KUALA LUMPUR (APRIL 17): The FBM KLCI stayed in positive territory in the morning session on Tuesday, but struggled to breach the 1,600-point mark as regional markets mostly retreated on mounting concerns over the euro zone sovereign debt crisis.

Asian shares were capped while the euro fell on Tuesday, as soaring Spanish borrowing costs underscored the fading impact of the European Central Bank's bond purchases and stoked investor nervousness over euro zone debt woes, according to Reuters.

The FBM KLCI was up 0.69 of a point to 1,598.20 at the mid-day break.

Gainers trailed losers by 283 to 278, while 322 counters traded unchanged. Volume was 1.2 billion shares valued at RM669.23 million.

The ringgit strengthened 0.03% to 3.0665 versus the greenback, crude palm oil futures for the third month delivery fell RM2 per tonne to RM3,485, crude oil was unchanged at US$102.93 per barrel while gold fell US$2.63 an ounce to US$1,649.25.

At the regional markets, Japan’s Nikkei 225 edged up 0.11% top 9,480.84 while Taiwan’s Taiex fell 1.61% to 7,605.13, Hong Kong’s hang Seng Index lost 0.58% to 20,490.90, Singapore’s Straits Times Index was down 0.39% to 2,980.57, South Korea’s Kospi shed 0.30% to 1,986.75 and the Shanghai Composite Index inched down 0.18% to 2,352.72.

Mybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Tuesday said the FBM KLCI dropped 5.61 points to close at 1,597.51 on Monday.

“Its resistance areas of 1,597 and 1,609 may cap market gains, whilst the obvious support areas are located at 1,580 and 1,594,’ he said.

He said despite the US markets’ mixed tone last night, Bursa Malaysia could be in for a low-volume trading day.

“From the 1,310.53 low (Sept 2011), the market has surged past its previous resistance of 1,597.08 to stall at 1,600.33 (On April 3).

“Bearish divergence is ample and investors may liquidate on rallies,” he said.

SAM Engineering was the top gainer in the morning session and rose 41 sen to RM3.60, Hartalega added 16 sen to RM8.12, CSL 14 sen to RM1.62, Far East and Subur Tiasa gained 10 sen each to RM7.60 and RM2.73, Rapid nine sen to RM2.54, Carlsberg eight sen to RM10.90, MBSB and Lafarge Malayan Cement gained seven sen each to RM2.23 and RM7.29, while Golsta was up 6.5 sen to 59.5 sen.

Among the decliners, Dutch Lady fell 46 sen to RM23.70, SMPC fell 25 sen to RM1.08, Nestle down 16 sen to RM55.84, Sarawak Oil Palms lost 13 sen to RM6.81, Iretex 12 sen to RM1, Knusford and Bintulu Port fell 10 sen each to RM1.80 and RM6.90, while MalPac and Ta Ann lost nine sen each to RM1.49 and RM6.60.

Ariantec was the most actively traded counter with 315.47 million shares done. The stock rose 5.5 sen to 17 sen.

Other actives included Metronic, Focus, Ingenuity Solutions, SuperComNet, Naim Indah Corp and JCY.



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Hartalega continues ascend on expansion plans

KUALA LUMPUR (APRIL 17): HARTALEGA HOLDINGS BHD [] shares continued to advance on Tuesday after the company said it was setting up a RM1.5 billion “next generation integrated glove manufacturing complex” (NGC) comprising 70 new high tech production lines.

At 12.01pm, Hartealega gained 23 sen to RM8.19 with 242,900 shares done.

The company last Friday said that its wholly owned subsidiary Hartalega NGC Sdn Bhd that was incorporated on March 29 is the designated corporate vehicle for the setting up of the NGC project, that is mainly involved in the production of rubber gloves to cater to fast rising global demand.



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Stocks to Watch Axis REIT, Chin Well, Bumi Armada, CIMB, Hartalega

KUALA LUMPUR (April 16): Malaysia's stock market benchmark could take the cue from external factors on Tuesday as global economic headwinds take centre stage in a still-fragile macro landscape.

Analysts said dynamics across the US, China and European countries will be closely watched as investors assess the impact from these major importing nations on world financial markets.

In Malaysia, it will be interesting to see whether domestic funds could offer adequate support to the FBM KLCI against a still-volatile global backdrop which have thrown most Asian indices into the red.

The FBM KLCI of 30 stocks fell 5.61 points to close at 1,597.51 on Monday.

Stocks to watch on Tuesday include Axis Real Estate Investment Trust (Axis REIT), Bumi Armada Bhd, CHIN WELL HOLDINGS BHD [], CIMB Group Holdings Bhd, and HARTALEGA HOLDINGS BHD [].

Axis REIT's first quarter net profit rose 27% from a year earlier, as a higher top line and a revaluation surplus mitigated the impact of higher expenses. In a statement to the exchange on Monday, Axis REIT said its net profit came to RM20.96 million in the quarter ended March 31, 2012 versus RM16.49 million previously while revenue was up 18% to RM32.29 million from RM27.25 million.

Bumi Armada will offer oil and gas support services to Russia-based OAO Lukoil in a deal worth an estimated U$200 million (RM614 million). In a statement to Bursa Malaysia on Monday, Bumi Armada said the job includes engineering, procurement, installation and pre-commissioning of subsea in-field and inter-field pipelines for the Filanovsky field in the Caspian Sea.

Chin Well, a screw and bolt manufacturer, plans to pay a tax-exempt interim dividend of 2% for the financial year ending June 30, 2012.

Reuters reported that CIMB will enter into an agreement to acquire a controlling 60% stake in the Philippines-based conglomerate San Miguel Corp's unlisted banking arm "soon", quoting a senior board member. The deal will allow San Miguel — the Philippines's most diverse conglomerate — to keep a minority stake in the unlisted bank while focusing on its new ventures such as power, mining, telecoms, infrastructure, and more recently, airlines.

RHB Research Institute Sdn Bhd has slashed its net profit forecast for Hartalega, a nitrile glove manufacturer, by between 6.1% and 18.5% for financial years 2012 till 2014. The research house said it has taken into account the glove manufacturer's lower capacity utilisation, and average selling prices apart for costlier raw material and higher net interest expenses.



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MIDF Research maintains Neutral on Hartalega, target price RM7.06

KUALA LUMPUR (April 16): MIDF Research has maintained its Neutral recommendation on HARTALEGA HOLDINGS BHD [] with a target price of RM7.06, and it was positive on the glove maker’s Next Generation Integrated Glove Manufacturing Complex (NGC) project.

The research house said it was positive on the project, as the demand for nitrile glove has been growing strongly especially from the developed markets.

“However, we believe that the stock price is ahead of its fundamentals, and factors such as overcrowding of nitrile glove producers, volatility in exchange rate, and increase in nitrile material price will limit the upside potential.

“As the contribution from the NGC Project will only be enjoyed from FY15 onwards, we are maintaining our NEUTRAL recommendation with an unchanged TP of RM7.06, derived from 11x EPS13, based on its 3-year historical PER average,” it said in a note on April 16.



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Hartalega up on expansion plans

KUALA LUMPUR (APRIL 9): HARTALEGA HOLDINGS BHD [] shares advanced on Monday after the company said it was setting up a RM1.5 billion “next generation integrated glove manufacturing complex” (NGC) comprising 70 new high tech production lines.

At 11.32am, Hartealega gained 10 sen to RM8 with 292,600 shares done.

The company last Friday said that its wholly owned subsidiary Hartalega NGC Sdn Bhd that was incorporated on March 29 is the designated corporate vehicle for the setting up of the NGC project, that is mainly involved in the production of rubber gloves to cater to fast rising global demand.

Meanwhile, CIMB Research maintained its Outperform rating on Hartelega Holdings Bhd at RM7.91 with a target price of RM9.98 and said the company’s 28.4 billion-pieces-of-gloves expansion by FY22 was a strong signal that it remains focused on growth.

The research house in a note April 9said the project enables Hartalega to defend its dominant position and add market share.



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CIMB Research maintains Outperform call on Hartalega

KUALA LUMPUR (April 9): CIMB Research has maintained its Outperform rating on Hartelega Holdings Bhd at RM7.91 with a target price of RM9.98 and said the company’s 28.4 billion-pieces-of-gloves expansion by FY22 was a strong signal that it remains focused on growth.

The research house ina note April said the project enables Hartalega to defend its dominant position and add market share.

“We believe backing by the government mitigates risks and raises the probability of success,” it said.

Also, the Kuan family remains invested in the project as they could contribute RM172 million of equity or 41.7% of the external funding via warrant conversion.

“Maintain Outperform and target, still based on 13.05x forward P/E, in line with Top Glove’s 2-year historical average,” said CIMB Research.

The research house said investors should accumulate the shares, adding that Hartalega had overtaken Top Glove as the world’s most valuable glovemaker.

“Soon it may exceed Top Glove’s capacity as well. Yields remain tops in the sector. Re-rating catalysts would be i) strong 4Q results, ii) acquisition of the 100-acre site, and iii) securing of gas supply,” it said.



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Stocks to watch Hartalega, Ingress Corp, EITA, and oil gas-related

KUALA LUMPUR (April 7): The FBM KLCI could experience some pullback in the week beginning April 9, as the rally over the past two weeks may not be sustainable given overriding external factors.

World stock markets look poised to fall early next week and safe-haven government debt prices could rally after U.S. employment figures fell short of expectations on Friday, according to Reuters.

U.S. stock futures fell more than 1% and Treasuries prices rallied after U.S. payrolls grew by 120,000 in March, far below the expected gain of 203,000 jobs, it said.

MIDF Research head of equity Syed Muhammed Kifni said that although the FBM KLCI recorded a fresh all-time high of 1,609.33 points last week, the joy was short-lived as the local market was not spared by the global market sell-off.

He said the pullback in global risk assets was triggered by the release of the minutes of recent US Fed meeting, which were interpreted by many as the central bank signaling its hesitation on launching a fresh round of monetary stimulus as the economy improves.

“Additionally, the poor Spanish government bond auction only added fuel to proverbial fire.

“We view the pullback as a clear manifestation that the recent market rally was underpinned mainly by liquidity, rather than valuations,” he said

Syed Muhammad said that nonetheless the streak of net foreign buying of Bursa-listed shares continued unbroken this past week.

Bursa data shows that foreign investors had been net buyers for 35 consecutive trading days until last Thursday, he said.

“We thus see no reason to not to expect a continuation of the streak this week. Hence the underlying market sentiment should remain healthy so long as the liquidity flow into the market remains positive and we are confident that the FBM KLCI will regain the 1,600s level perhaps towards the later part of this week.

“Moreover, our external trade as well as industrial production figures due for release this week might potentially be key market movers. The consensus expectations are pointing towards all-around sequential improvements in the numbers,” he said.

Syed Muhammed said the immediate resistance and support levels for FBM KLCI were pegged at 1,610 points and 1,590 points respectively.

Meanwhile, Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said the FBM KLCI was now ripe for a pullback towards a lower sideways range of 1580-1600 level.

“We reckon the equity optimism will take a mild negative turn following a surprised absence of USA stimulus and Spanish revived fiscal concerns with the bond yields climbing to their highest level in five month (Spanish 10-Year bond rose to 5.8%).

“This has stoked concerns regarding the European debt crisis, boosted safe-haven appeal of the USA dollar and weighed on local risk-taking sentiment,” he said.

Among the stocks that could be in focus are HARTALEGA HOLDINGS BHD [], INGRESS CORPORATION BHD [], EITA Reources Bhd, and oil gas-related counters.

Hartalega is setting up a RM1.5 billion“next generation integrated glove manufacturing complex” (NGC) comprising 70 new high tech production lines.

The company said last Friday that its wholly owned subsidiary Hartalega NGC Sdn Bhd that was incorporated on March 29 is the designated corporate vehicle for the setting up of the NGC project, that is mainly involved in the production of rubber gloves to cater to fast rising global demand.

Ingress Corp Bhd will establish a switching station for TENAGA NASIONAL BHD [] (Tenaga) in a deal worth RM26.6 million. The 275-kilovolt station will be set up at Pantai Remis, Selangor.

In a filing to Bursa Malaysia Securities last Friday, Ingress said Tenaga had issued a letter of intent for the project to a joint venture between two subsidiaries of Ingress, namely, Multi Discovery Sdn Bhd and Ramusa Engineering Sdn Bhd.

Elevator manufacturer and distributor of electrical and electronics equipment EITA Resources Bhd, will be listed on Monday on the Main Board of Bursa Malaysia.

The group’s IPO entails a public issue of 23 million new ordinary shares and an offer for sale of 17 million ordinary shares, at an IPO price of RM0.76 per share.

Of the 23 million new shares, 6.5 million were allocated for public balloting and 3.5 million shares for eligible directors, employees and business associates of the Group.

Oil and gas stocks could attract some investor interest after RHB Research Institute Sdn Bhd on April 6 said it has an Overweight rating on the oil and gas sector and said it was positive on the sector following Petroliam Nasional Bhd’s (Petronas) statement on April 5 that the proposed Refinery and Petrochemical Integrated Development (RAPID) project, to be located in Pengerang, Johor, was progressing as scheduled.

The research house said on Friday that the statement was the closest indication yet that the RAPID would proceed as planned.



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Hartalega to set up RM1.5b next generation glove making complex

KUALA LUMPUR (APRIL 6): HARTALEGA HOLDINGS BHD [] is setting up a RM1.5 billion “next generation integrated glove manufacturing complex” (NGC) comprising 70 new high tech production lines.

The company said on Friday that its wholly owned subsidiary Hartalega NGC Sdn Bhd that was incorporated on March 29 is th designated corporate vehicle for the setting up of the NGC project, that is mainly involved in the production of rubber gloves to cater to fast rising global demand

Hartalega said the capacity expansion project was scheduled to begin in 2013 and targeted to complete in year 2021.

The company said the project had been accorded the EPP (“Entry Point Project”) status under the Malaysian Government’s Economic Transformation Programme due to its high economic impact.

Hartalega said the project would located within a new site of about 100 acres with several dedicated buildings, including research and development centre, learning and development centre, renewable energy plant, environment friendly worker quarters and sports and recreation centre.

It said the whole location would be landscaped to be green and eco-friendly incorporating lush greenery with investment in environmental preservation mechanisms like water and waste treatment plants.

Hartalega said the NGC project would be spread over two 4-year phases and employ about 4,600 workers, namely, first phase (2013 to 2017) – 40 production lines with total annual capacity of 14 billion and second phase (2017 to 2021) – 30 production lines with total annual capacity of 10.5 billion.

“On completion of the HNGC project, the total installed production capacity of the Hartalega group including the current factories in Bestari Jaya will be 38 billion pieces per annum,” it said.



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KLCI closes lower as Asian markets dip

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

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

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

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

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

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

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

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

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



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Glove makers among top losers

KUALA LUMPUR (March 27): Glove makers Top Glove, Hartalega and Kossan were among the top losers in afternoon trade on Tuesday despite the overall firmer market.

At 2.46pm, the Top Glove was down 12 sen to RM4.53 with 350,900 shares done, Haratalega and Kossan lost seven sen each to RM8.02 and RM3.23. Supermax was unchanged at RM1.88.

The FBM KLCI was up 4.55 points to 1,587.53. Turnover was 1.18 billion shares done valued at RM802.06 million. There were 326 gainers, 342 losers and 344 counters unchanged.



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MMC, Gamuda in focus after MRT projects

KUALA LUMPUR (March 20): MMC Corp and Gamuda’s securities provided some life into the otherwise lacklustre market on Tuesday as investors stayed mostly on the sidelines in line with the cautious regional markets.

The FBM KLCI closed up 4.02 points or 0.26% to 1,577.62, lifted by gains in IOI Corp and Tenaga. Turnover was 2.14 billion shares valued at RM1.76 billion. There were 314 gainers, 431 losers and 376 counters unchanged.

Hong Kong’s Hang Seng Index fell 1.08% to 20,888.20, Shanghai Composite Index lost 1.38% to 2,376.84, Taiwan’s Taiex shed 0.89% to 7,972.70 but Singapore’s Straits Times Index added 0.42% to 3,002.73.

Market sentiment was cautious as reflected in the broader market where declining stocks led advancers. While there was some fund support for key stocks, trading activity was heavy in penny stocks and lower liners.

The KLCI is one of the laggards among the key regional markets, with the index up 6.27% in US dollar terms year-to-date compared with STI’s 16.55%, Hang Seng Index’s 9.87% and Shanghai Composite’s 7.77%.

IOI Corp and Tenaga rose five sen each to RM5.29 and RM6.54, pushing up the index by 1.39 points.

MMC added 15 sen to RM2.95, pushing the index up by 0.57 of a point. Gamuda rose 12 sen to RM3.74 and Gamuda-WD 10 sen to RM1.45.

The securities of the companies saw active trade after their joint venture won the underground package for the Sungai Buloh-Kajang MRT line with the bid of RM8.2 billion.

Hartalega was the top gainer, up 26 sen to RM8.19, Ta Ann 13 sen to Rm5.88, HLFG 12 sen to RM12, and Batu Kawan 10 sen to RM18.60.

Share prices of Metronic Global and its 17%-owned unit Ariantec Global slipped in active trade. Ariantec fell 3.5 sen to 10.5 sen and it was the most active with 121.23 million shares done while Metronic eased two sen to 11 sen.

Focus, which was queried over the sharp increase in the price of its securities and volume, saw its share price ending the day two sen higher at 21.5 sen. Focus-WA added four sen to eight sen and Focus-WB two sen to 14.5 sen.

Among the index-linked stocks, Petronas Chemicals fell three sen to RM6.71, Public Bank two sen to RM13.62 and RHB Cap three sen to RM8.

Aeon was the top loser, down 25 sen to RM9.13 with 20,500 shares done. Cypark lost 11 sen to RM1.87 and United PLANTATION []s 10 sen to RM25.



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CIMB leads KLCI to higher close, 11 pts away from all-time high

KUALA LUMPUR (March 2): CIMB led the FBM KLCI to a higher close, just 11 points away from the all-time high of 1,594.74 in July 2011, as the firmer blue chips galvanised market sentiment.

At the close, the KLCI was up 10.33 points or 0.66% to 1,583.78. Turnover was 1.63 billion shares valued at RM1.93 billion. Advancing counters beat decliners 540 to 276 while 330 counters were unchanged.

Reuters reported European shares edged up to their highest level in more than a week on Friday, with the European Central Bank's ultra-cheap funding this week helping the euro zone debt market and further reducing risk within the battered banking sector.

Financials were among the top gainers, with the STOXX Europe 600 Banking index rising 0.6 percent and Commerzbank advancing 3%. The index, which was the worst performer in 2011 with a 32% drop, has gained about 19% so far this year.

Among the key regional markets, Japan’s Nikkei 225 rose 0.72% to 9,777.03, Hong Kong’s Hang Seng Index added 0.81% to 21,562.26, Shanghai’s Composite Index added 1.43% to 2,460.69 and Singapore’s Straits Times Index 0.49% higher at 2,993.49.

BAT was the top gainer, adding 40 sen to RM53.50. Its fourth interim dividend of 66 sen per share tax exempt will go ex on Tuesday.

CIMB rose 16 sen to RM7.33, pushing the index up 2.82 points after the banking group moved closer to expand its regional reach by acquiring certain assets of The Royal Bank of Scotland in Asia Pacific.

AMMB added nine sen to RM6.26 while Maybank and Public Bank rose two sen each to RM8.77 and RM13.70.

Petronas Chemical added 15 sen to RM6.90, Genting 14 sen to RM10.60 while DiGi and YTL advanced eight sen each to RM4.12 and RM1.78.

KHSB was the most active counter with 76 million shares done, adding 6.5 sen to 62.5 sen.

Silver Bird was unchanged at 20.5 sen as the price could have bottomed out after being sold down on Thursday where it lost nearly half its value.

China Stationery Ltd saw its share price slipping three sen to RM1.8 as investors took profit following its listing on Feb 24 at the offer price of 95 sen.

Among the decliners, PPB fell 34 sen to RM16.94, Dutch Lady 22 sen to RM29.50, Ta Ann 20 sen to RM5.71 and Hartalega 19 sen to RM8.13.



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ECB boost for regional markets, KLCI eyes all-time high

KUALA LUMPUR (March 2): Key regional markets, especially China and Hong Kong rallied in the morning session on Friday while at Bursa Malaysia, the FBM KLCI cast its eyes on the all-time high of 1,594 on July 8, 2011.

The ringgit broke past the crucial 3.000 level against the US dollar to reach 2.9935 in the morning and it was at 3.0002 at midday.

At 12.30pm, the FBM KLCI was up 11.34 points or 0.72% to 1,584.79 – which was just 10 points of the all-time high of 1,594.74. Turnover was 824.36 million shares valued at RM843.70 million. Gainers beat losers 422 to 246 while 322 stocks were unchanged.

Markets rose following the inflow of cheap European Central Bank funds this week which had eased fears of a meltdown in the euro zone financial sector, overriding some weak data and concerns about surging oil prices, Reuters said.

The ECB's half a trillion euros in cheap, 3-year loans added to the banking system this week underpinned markets, driving down bond yields of highly-indebted euro zone governments, such as Italy, on Thursday.

US light crude oil fell 40 cents to US$108.44. Crude palm oil futures fell RM17 to RM3,263.

Japan’s Nikkei 225 rose 0.67% to 9,772.60, Hong Kong’s Hang Seng Index added 0.97% to 21,595.90, Shanghai’s Composite Index 0.93% to 2,448.66 and Singapore’s Straits Times Index 0.47% to 2,992.95.

At Bursa Malaysia, the gains on blue chips were led by CIMB, Sime Darby and Petronas Chemicals, which helped underpin the overall market sentiment and gave a boost to the smaller cap stocks and lower liners.

CIMB rose 17 sen to RM7.34, pushing the KLCI up 2.99 points to RM7.34 while Sime Darby’s gains of 17 sen to RM10.10 pushed the index up another 2.41 points. PetChem and Genting added 14 sen each to RM6.89 and RM10.60.

The top gainer was Panasonic Malaysia, up 80 sen to RM22.80. BAT added 40 sen to RM53.50 and Oriental Holdings 16 sen to RM6.35.

Perwaja-WA jumped 28 sen to 28.5 sen with 17.14 million units done.

Naim Indah Corp was the most active with 42.33 million shares done, unhinge dat 53 sen.

Silver Bird inched up one sen to 21.5 sen with 28.61 million shares transacted after the sell-down pushed the share price down by 50%.

Dutch Lady fell the most, down 50 sen to RM29.22 but with only 6,800 shares done. PPB lost 30 sen to RM16.98, Hartalega 17 sen to RM8.15 and Petronas Gas six sen to RM16.84.



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Weak start for Bursa Malaysia’s first IPO of 2012

KUALA LUMPUR (Feb 23): Bursa Malaysia’s first initial public offer (IPO) for 2012, Sentoria Group Bhd, got off to a weak start, with the share price ending the morning session below its reference price of 87 sen.

The weak debut also reflected the cautious local and key regional markets as investors feared high oil prices would slow down global economic growth and also the continuing Euro zone debt crisis saga.

At 12.30pm, the FBM KLCI was down 1.08 points to 1,559.44. Turnover was 937.15 million shares valued at RM811.77 million. Declining stocks beat advancers 515 to 206 while 293 counters were unchanged.

All the key regional markets fell, with the exception of Japan where the Nikkei 225 rose 0.13% to 9,566.42.

Hong Kong’s Hang Seng Index fell 0.98% to 21.337.50, Shanghai’s Composite Index lost 0.05% to 2,402.30, Taiwan’s Taiex 0.71% to 7,945.15 and South Korea’s Kospi 1.12% to 2,006.01 while Singapore’s Straits Times Index shed 0.97% to 2,966.66.

At Bursa Malaysia, property developer Sentoria fell eight sen to 79 sen in active trade, with 21.62 million shares done. Its reference price was 87 sen, which was the placement price while the price offered to the public was 85 sen.

CIMB fell seven sen to RM7.17, dragging the KLCI down 1.23 points while HL Bank lost 12 sen to RM11.72 and Maybank one sen to RM8.70. Public Bank rose four sen to RM13.72.

AirAsia shed seven sen also to RM3.58, pushing the index down by 0.45 of a point. GENTING BHD [] lost four sen to RM10.80.

Among the PLANTATION []s, IOI’s decline of five sen, dragged the index down by 0.76 of a point. Batu Kawan fell 20 sen to RM18.60 and KLK 16 sen to RM23.48.

Lafarge fell 17 sen to RM7.20 and Boustead 16 sen to RM5.38 while SapuraCrest gave up 12 sen to RM4.88.

However, Axiata managed to support the index by 1.8 points when it rose nine sen to RM5.10. Tenaga added eight sen RM6.19, nuding the index by 1.02 points. United Plantations was the top gainer, up 54 sen to RM23.96, Hartalega 26 sen to RM8.23 and Oriental 25 sen to RM6.03.



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