KLCI snaps four-day winning streak, dips at mid-day break

KUALA LUMPUR (APRIL 4): The FBM KLCI snapped its four –day winning streak and retreated at the mid-day break on Wednesday, in line with the generally weaker sentiment at key regional markets following the overnight dip at Wall Street.

Asian shares fell on Wednesday after the minutes from the U.S. Federal Reserve's March meeting suggested the bank was less inclined to take further stimulus measures, leaving investors looking for more clues to the global growth outlook, according to Reuters

Fed policymakers remained focused on a still elevated jobless rate while noting signs of slightly stronger growth, but the minutes suggested the appetite for further quantitative easing, so-called QE3 has waned significantly in light of an improving U.S. economy, it said.

At the mid-day break, the FBM KLCI was down 5.78 points to 1,600.85, weighed by losses at select blue chips.

Market breadth turned negative with losers leading gainers by 369 to 199, while 315 counters traded unchanged. Volume was 571.84 million shares valued at RM399.87 million.

The ringgit weakend 0.45% to 3.0613 versus the US dollar; crude palm oil futures for the third month delivery rose RM31 per tonne to RM3,530, crude oil shed 32 cents per barrel to US$103.69 whiel gold fell US$1.82 an ounce to US$1,644.30.

At the regional markets, Japan's Nikkei share average abruptly broke below 10,000 to hit a four-week low on Wednesday, after stop-losses were triggered on index futures, raising concerns that Tokyo's strong equities rally so far this year was coming to a halt.

The Nikkei 225 fell 1.59% to 9,890.65, Hong Kong’s Hang Seng index lost 1.31% to 20,790.90, Taiwan’s Taiex and South Korea’s Kospi fell 1.3% each respectively to 7,760.85 and 2,022.54 respectively, Singapore’s Straits Times Index shed 0.38% to 3,003.16 while the Shangai Composite Index edged up 0.47% to 2,262.79 .

BIMB Securities Research in a note Wednesday said that traders I the US resorted to profit on Tuesday taking amid signs that additional stimulus were diminishing from the Feds latest signal.

As such, the Dow Jones Industrial Average dipped 65 points to just below the 13,200 level.

We find this odd as we interpret this as positive and that the US economy is on auto pilot without the requirement of more financial steroids.

Regionally, Asian markets were slightly higher across the board except for Taiwan being hit hard from rumours that capital gains tax may be imposed on stock trades.

Meanwhile, the FBM KLCI continued with its uptrend with another record high via another 2.9 point gain to close at almost 1,607.

Nonetheless, we noticed that investors are becoming wary of the local bourse’s recent uptrend and believe a correction would emerge anytime soon.

“Foreign funds had again flowed into the market with another net positive of RM203 million yesterday.”

“Despite the foreign buying, we reckon the index may see some retracement today albeit marginally,” it said.

On Bursa Malaysia, Shell was the top loser in the morning session and fell 14 sen to RM10.14, PPB lost 12 sen to RM16.58, Litrak, Carlsberg and AFG fell 10 sen each to RM3.94, RM10.70 and RM3.86 respectively, Sop and Amway lost nine sen each to RM6.85 and RM9.80, Inno down eight sen to RM1.42, while MMHE and RHB Capital fell seven sen each to RM3.39 and RM7.70.

Among the gainers, Milux added 15 sen to RM1.40, Tradewinds and malPac up 10 sen each to RM9.64 and RM1.59, Tradewinds PLANTATION []s seven sen to RN4.92, Ewein and MBM Resources up six sen each to 84 sen and RM4.8, whiel Quality Concrete, Fiamma and NSOP added five sen each to RM1.29, RM1.15 and RM6.15 respectively.



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KLCI stays lackluster at mid-morning as Asian markets fall

KUALA LUMPUR (Jan 9): Trading on the FBM KLCI remained lackluster at mid-morning on Monday as lack of fresh local leads as well as negative external sentiment kept investors on the sidelines.

Asian shares fell as renewed gloom about the fallout from the European sovereign debt crisis overshadowed signs of vigour in the US economy, according to Reuters.

Data on Friday showed that while US employment growth accelerated last month, euro zone retail sales fell and economic sentiment soured at the end of 2011, pointing to recession in the currency bloc, it said.

The FBM KLCI shed 0.03 point to 1,514.10 at 10.10am.

Gainers led losers by 249 to 160, while 236 counters traded unchanged. Volume was 395.02 million shares valued at RM213.43 million.

At the regional markets, Hong Kong’s Hang Seng Index lost 1.23% to 18,364.27, South Korea’s Kospi fell 1.31% to 1,818.92, Singapore’s Straits Times Index was down 1.03% to 2,687.49, Taiwan’s Taiex lost 0.77% to 7,065.53 and the Shanghai Composite Index shed 0.24% to 2,158.11.

Japan stock markets are closed for a national holiday.

BIMB Securities Research in a note Jan 9 said investors remained torn between US improving economic conditions and the “bubbling” undercurrent over in Europe.

As a result, Wall Street had a relatively mixed week before ending another 55 points lower amid a mixed performance from European bourses, it said.

The research house said that for this week, attention would be centred on corporate earnings for the 4Q11 in the US hence investors are expected to stay sidelined.

Taking lead from Europe’s weal opening, regional markets were rather mixed but the situation could be buoyed this week from signs that China has been easing its liquidity crunch with December’s loans growth higher than anticipated coupled with better M2 growth.

“In Malaysia, the FBM KLCI closed flat in tandem with regional performance.

“Unless there are fresh catalysts, we expect it to be another lacklustre performance. Immediate resistance is seen at 1,515 with 1,525 as the next level,” it said.

On Bursa Malaysia, Dutch Lady was the top gainer at mid-morning and was up 80 sen to RM26; Batu Kawan rose 42 sen to RM18.90, Harvest Court 32 sen to RM1.40, Can-One 19 sen to RM1.78, Hong Leong Bank 16 sen to RM10.92, Proton 15 sen to RM5.14, while Inno, Tradewinds PLANTATION []s and KPS added 12 sen each to RM1.48, RM4.45 and RM1.17 respectively.

Nextnation was the most actively traded counter with 27.4 million shares done. The stock added one sen to 12.5 en.

Other actives included KHSB, Takaso, DPS Gurney, DRB-Hicom, Proton and SYF Resources.

Meanwhile, decliners included Nestle, KLK, BLD Plantations, BAT, Parkson, Kian Jpp, Boxpak, Delloyd, Cepco and MMHE.



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KLCI drifts lower, sentiment cautious

KUALA LUMPUR (Dec 20): The FBM KLCI drifted lower on Tuesday on mild profit-taking, as Asian markets remained shaky despite edging upwards after the sharp selldown on Monday following the death of North Korean leader Kim Jong-il.

At the mid-day break, the FBM KLCI fell 5.14 points to 1,472.64. Losers led gainers by 352 to 274, while 277 counters traded unchanged. Volume was 849.18 million shares valued at RM509.99 million.

The ringgit weakened 0.25% to 3.1908 versus the US dollar; crude palm oil futures for the third month delivery fell RM14 per tonne to RM3,006, crude oil gained 42 cents per barrel to US$94.30 while gold rose US$2.80 an ounce to US$1,597.07.

At the regional markets, Japan’s Nikkei 225 edged up 0.54% to 8,341.20, Hong Kong’s Hang Seng Index rose 0.54% to 18,168.61, the Shanghai Composite Index was up 0.16% to 2,221.68, Taiwan’s Taiex added 0.43% to 6,661.99, South Korea’s Kospi rose 0.88% to 1,792.50 and Singapore’s Straits Times Index edged up 0.09% to 2,620.50.

On Bursa Malaysia, BAT was the top loser at mid-day and fell RM1.40 to RM48; PPB lost 40 sen to RM16.80, Tradewinds PLANTATION []s down 25 sen to RM4.30, Perak Corp 22 sen to RM1.12, HLFG and Petronas Gas down 18 sen each to RM11.52 and RM13.92, Inno 16 sen to RM1.34 and F&N fell 14 sen to RM17.96.

Gainers included Panasonic that rose 20 sen to RM20.02, Jaya Tiasa 11 sen to RM6.90, Dutch Lady, KAF, IGB and Tenaga up 10 sen each to RM23.40, RM1.43, RM2.43 and RM5.55 respectively, while Harvest Court was up nine sen to RM1.18.

Astral Supreme was the most actively traded counter with 66.2 million shares done. The stock edged up half a sen to 22.5 sen. Bursa Malaysia Securities Bhd later this morning had issued an unusual market activity query over the sharp increase in price and high volume of the company’s securities recently.

Other actives included Utopia, JCY, Gamuda and UEM Land warrants, and Wijaya warrants.



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UOB buys Innosabah

PETALING JAYA: Singapore’s third largest banking group United Overseas Bank Ltd (UOB) is gaining a foothold in the local stockbroking scene with its proposed acquisition of east Malaysia-based Innosabah Securities Bhd.

The banking group’s stockbroking unit UOB-Kay Hian Holdings Ltd has proposed to acquire Innosabah from Kretam Holdings Bhd for RM56.68 million, which includes a RM15 million premium over its net assets.

“The purchase consideration shall be equivalent to the net asset value of Innosabah as at Dec 31, 2011, but without taking into account excluded assets comprising receivables of or indebtedness to Innosabah, and excluding goodwill and intangible assets plus a premium of RM15 million,” Kretam announced to Bursa Malaysia yesterday.

The price tag is equivalent to 1.36 times the adjusted unaudited net assets of Innosabah as at Sept 30, 2011, after accounting for the disposal of the excluded assets of RM41.68 million.

This acquisition follows a string of recent mergers and acquisitions (M&A) among local stockbrokers and investment banks, and would allow the UOB group to offer services ranging from equity trading to corporate advisory services.

It also leaves OCBC Bank as the only Singapore-based bank that does not yet have a presence in the local stockbroking industry.

DBS Bank Ltd, which is the largest bank in Southeast Asia, has a 27.7% stake in Hwang-DBS (M) Bhd, one of Malaysia’s top investment banking and brokerage groups.
It is understood that Innosabah, which was put under restricted trading at the height of the 1998 Asian financial crisis, has been up for sale for a while now as Kretam has been shifting its focus to plantations.

Kretam has seen a strong improvement in its financial performance over the past year, with net profit doubling to RM64.14 million for the nine months ended Sept 30, 2011 compared with RM30.09 million a year ago.

Its shares gained one sen to RM2.45 yesterday and are trading near a 12-month high of RM2.50.

After a series of M&A in the industry, Innosabah was left as one of the seven standalone stockbroking companies in the country, according to the Securities Commission’s website.

The other six are BIMB Securities Sdn Bhd, FA Securities Sdn Bhd, Jupiter Securities Sdn Bhd, KAF-Seagroatt & Campbell Securities Sdn Bhd, Malacca Securities Sdn Bhd and SJ Securities Sdn Bhd.

Although it is a standalone broker, Innosabah was granted approvals by the SC in January 2011 to undertake activities accorded to a “1+1” stockbroking company,

The 1+1 status, previously accorded to players who have merged with at least one other party, allows the stockbrokers to open branches, provide electronic access facilities and undertake structured product offerings, without resorting to further mergers.

With Asia seen as the main driver of global growth in the coming years, it is not surprising to see financial institutions and stockbrokers expanding their presence in the region.

A few Malaysian players have forged partnerships with stockbrokers in neighbouring countries, enabling them to offer an array of cross-border products and services and tap Asian’s domestic wealth.

Other foreign entities that are rumoured to be looking for stockbroking assets in Malaysia are OCBC Bank and Phillip Capital.

On the domestic front, the local stockbroking sector has seen a series of policy changes over the past decade to facilitate more consolidation within the industry.

Back in the 1990s, the authorities required all stockbroking firms to merge with at least one other party to consolidate the industry post Asian financial crisis.

To attain the universal broking status, there had to be a merger of three parties to undertake corporate finance advisory job.

Since 2000, some of these universal brokers have moved on to become full-fledged investment banks, which require an even higher minimum paid-up capital of RM500 million.

According to SC’s website, there are currently 14 investment banks, six stockbrokers with 1+1 mergers, seven standalone stockbrokers, seven foreign stockbrokers under special licence and one universal broker — PM Securities Sdn Bhd.

The six 1+1 stockbroking firms are A A Anthony Securities Sdn Bhd, Inter-Pacific Securities Sdn Bhd, JF Apex Securities Bhd, M & A Securities Sdn Bhd , Mercury Securities Sdn Bhd and TA Securities Holdings Bhd.

In 2009, the stockbroking industry was further liberalised to allow foreign ownership of up to 70% in the local players, from 49% previously.

There are seven foreign stockbroking firms here. These players, including the likes of CLSA Securities Malaysia Sdn Bhd and Credit Suisse Securities (M) Sdn Bhd, were granted free licences as part of the liberalisation process.

Ever since the relaxation, M&A in the industry have picked up with some of the notable ones like the marriage of Malayan Banking Bhd and Kim Eng Securities.

This came after Kim Eng ended talks with Berjaya Corp Bhd (BCorp) over BCorp’s proposed sale of Inter-Pacific Securities Sdn Bhd’s stockbroking business.

CIMB Group Holdings Bhd had earlier taken over Singapore-based GK Goh Holdings Ltd for a regional stockbroking and investment banking platform.

A merger between RHB Capital Bhd and OSK Holdings Bhd is also being finalised.



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Asian markets pare down gains as European euphoria fades

KUALA LUMPUR (Dec 12): Asian markets, including at Bursa Malaysia, retreated in the afternoon session on Monday as the initial euphoria over the European leaders’ summit deal to pursue stricter budget rules and a stronger fiscal union did little to abate fears of a deepening financial crisis in the region.

European shares fell on Monday as euphoria over a European Union deal on deeper economic integration faded, weighed by concerns over politicians' response to the debt crisis in the short-term and the likely impact of austerity measures on growth, according to Reuters.

The FBM KLCI could not sustain its earlier gains and closed 0.48% or 6.97 points higher at 1,467.10. The index had earlier risen to its intra-day high of 1,474.55.

Losers overtook gainers by 362 to 357, while 325 counters traded unchanged. Volume was 1.6 billion shares valued at RM1.13 billion.

At the regional markets, Japan’s Nikkei 225 close 1.36% higher at 8,653.82, South Korea’s Kospi up 1.33% to 1,899.76, Taiwan’s Taiex gained 0.81% to 6,949.04 and Singapore’s Straits Times Index edged up 0.26% to 2,701.72.

Meanwhile, the Shanghai Composite Index fell 1.02% to 2,291.54 and Hong Kong’s Hang Seng Index shed 0.06% to 18,575.66.

On Bursa Malaysia, Nestle was the top gainer and rose RM1.52 to RM55.90; Dutch Lady gained RM1.06 to RM25.98, PPB 30 sen to RM16.60, GAB and Tahps 28 sen each to RM12.28 and RM4.48, Proton 24 sen to RM4.23, while Inno, F&N and Genting rose 20 sen each to RM1.50, RM18 and RM10.82.

Among the decliners, MISC and Lafarge Malayan Cement fell 20 sen each to RM5.60 and RM6.66, Ajinomoto, DKSH and BAT lost 10 sen each to RM3.92, RM1.73 and RM47.20 respectively, Quality Concrete down nine sen to RM1.25, Boxpak eight sen to RM1.72 while Malpac lost seven sen to RM1.33.

The actively traded stocks included Utopia, Proton, Sanichi, Compugates and Flonic.



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Banks, select blue chips lift KLCI at mid-day

KUALA LUMPUR (Dec 12): The FBM KLCI rose 0.80% at the mid-day break on Monday, in line with most key regional markets that advanced after a European leaders’ summit over the weekend offered a glimmer of hope of a solution to the eurozone debt crisis.

Analysts however said that the deal reached at the summit was not an adequate measure the address the region’s long-term debt crisis.

The FBM KLCI was up 11.72 points to 1,471.85, lifted by gains at banking stocks and select blue chips.

Gainers led losers by 336 to 250, while 290 counters traded unchanged. Volume was 874.85 million shares valued at RM493.64 million.

The ringgit weakened 0.14% to 3.1518 versus the US dollar; crude palm oil futures for the third month delivery lost RM34 per tonne to RM3,052, crude oil fell 12 cents per barrel to US$99.29 while gold slumped US$17.45 an ounce to US$1,694.15.

MIDF Research chief economist Anthony Dass in a note Monday said he was fairly sceptical over the outcome although he acknowledged that there had been progress.

However, he cautioned that there still remained inadequate satisfactory resolution over the debt crisis.

“Risk of downgrading by rating agencies remains since it did not address the increasingly shaky banks or go far enough to shore up the euro-zone battered debt markets remains.

“What turned out to be a disappointment is when ECB remains as ‘lender of last resort’ to only banks not governments,” he said.

At the regional markets, Japan’s Nikkei 225 rose 1.63% to 8,675.54, Hong Kong’s Hang Seng Index gained 1.42% to 18,850.70, South Korea’s Kospi was up 0.92% to 1,891.96, Singapore’s Straits Times Index added 0.75% to 2,714.86 and Taiwan’s Taiex edged up 0.67% to 6,939.55.

Meanwhile, the Shanghai Composite Index shed 0.45% to 2,304.80.

On Bursa Malaysia, the gainers were led by Dutch Lady that rose 98 sen to RM25.90; Nestle was up 62 sen to RM55, GAB 42 sen to RM12.42, KLK 28 sen to RM22.56, Proton 27 sen to RM4.26, Shell 21 sen to RM9.51 while PPB, NSOP and Inno gained 20 sen each to RM16.50, RM5.62 and RM1.50 respectively.

Among banks, RHB Capital rose 15 sen to RM6.95, AMMB 14 sen to RM5.88, CIMB 11 sen to RM7, Public Bank, Hong Leong Bank and HLFG added six sen each to RM12.68, RM11.54 and RM10.68 respectively, Maybank three sen to RM8.18 while Affin added two sen to RM2.81.

Decliners this morning included Lafarge Malayan Cement, APM Automotive, Quality Concrete, Tahps, Suria, Malpac, DKSH and Lingui.

The actives included Utopia, Proton, Compugates, LFE Corp, Flonic, Sersol and SYF Resources.



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Muted gains on KLCI as profit taking sends Asian markets lower

KUALA LUMPUR (Dec 2): Gains on the FBM KLCI were muted at the mid-day break on Friday, while most Asian markets fell as investors took profit ahead of the US employment data set to be released later in the day.

Although Asian stocks are poised for their first weekly rise in a month buoyed by coordinated central bank actions, the release of mixed economic data from the United States and China spooked some investors and profit taking started chipping off the gains at some of the regional markets.

The FBM KLCI was up 1.86 points at 1,487.12 at the mid-day break. Gainers trailed losers by 234 to 332, while 277 counters traded unchanged. Volume was 810.72 million shares valued at RM541.42 million.

The ringgit strengthened 0.31% to 3.1301 versus the US dollar; crude palm oil futures for the third month delivery fell RM10 per tonne to RM3,048, crude oil slipped 7 cents to US$100.13 while gold fell US$2.13 an ounce to US$1,742.70.

At the regional markets, Japan’s Nikkei was up 0.27% to 8,620.25.

Elsewhere, the Shanghai Composite Index lost 1.44% to 2,352.52, Taiwan’s Taiex fell 0.94% to 7,111.55, Singapore’s Straits Times was down 0.65% to 2,743.84, Hong Kong’s Hang Seng Index fell 0.49% to 18,909.07, and South Korea’s Kospi lost 0.30% to 1,910.36.

On Bursa Malaysia, Nestle was the top gainer at the mid-day break and was up 60 sen to RM52.80; Dutch Lady gained 30 sen to RM24.70, Proton up 29 sen to RM3.39, Tradewinds PLANTATION []s 23 sen to RM4.15, Panasonic, HLFG and Harvest Court 20 sen each to RM19.94, RM11.78 and RM1.10 respectively, while Petronas Dagangan and Petronas Gas added 18 sen each to RM16.80 and RM13.50.

Among the decliners, Aeon Credit fell 20 sen to RM6.10, Shangri-La and Genting Plantations down 13 sen to RM2.25 and RM8, Inno 12 sen to RM1.23, SHL and BAT fell 10 sen each to RM1.15 and RM48, Timwell down nine sen to 76 sen, while PPB and TSH lost eight sen each to RM16.50 and RM1.91.

The actives included Wijaya warrants, DPS Resources, SYF Resources, Compugates and Tiger Synergy.



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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