Global woes drag Asian equities lower

KUALA LUMPUR (May 7): The FBM KLCI remained in negative territory at the mid-day break on Monday, in line with the gloomy investor sentiment at key regional markets that saw the Japan and Hong Kong markets fall steeply by more than 2% each.

The FBM KLCI fell 7.76 points to 1,583.28 at 12.30pm, weighed by losses at select blue chips and index-linked PLANTATION [] counters.

Losers beat gainesr by 474 to 151, while 258 counters traded unchanged. Volume was 522.55 million shares valued at RM423.45 million.

The ringgit weakened 0.66% to 3,0613 versus the greenback, crude palm oil futures for the third month delivery fell RM30 per tonne to RM3,336, crude oil lost US$1.37 per barrel to US$97.12 while gold slumped US$4/27 an ounce to US$1,637.85.

Asian markets fell after elections in France and Greece raised concerns on whether euro zone economies will continue to pursue austerity measures and as U.S. jobs data came in weaker than expected, according to Reuters.

At the regional markets, Japan’s Nikkei 225 slumped 2.72% to 9,125.48, Hong Kong’s Hang Seng Index lost 2.43% to 20,573.10, the Shanghai Composite Index down 0.26% to 2,445.68, Taiwan’s Taiex fell 2.23% to 7,529.40, South Korea’s Kospi lost 1.77% to 1,953.91 and Singapore’s Straits Times Index fell 1.80% to 2,936.85.

On Bursa Malaysia, Dutch lady fell 30 sen to RM33.08, Tradewinds 19 sen to RM9.85, Carlsberg 18 sen to RM10.82, Hong Leong Bank and Asia Ply 16 sen each to RM12.20 and 14 sen, Allianz 15 sen to RM4.60, while IJM Corp and Petronas Dagangan fell 12 sen each to RM5.46 and RM19.38.

Among the plantations, Tradewinds Plantations fell 18 sen to RM5.80, KLK 16 sen to RM23.60, PPB eight sen to RM16.68, Batu Kawan four sen to RM18.80, Genting Plantations and IOI Corp two sen each to RM9.58 and RM5.25, while Sime Darby, IJM Plantations and Kulim fell one sen each to RM9.78, RM3.25 and RM4.23 respectively.

Time Engineering was the most actively traded counter with 399.51 million shares done. The stock rose four sen to 37 sen.

Other actives included SAAG, Ariantec, KFCH, Maybulk, Benalec, Metronic, JCY and Rubberex.

Gainers included Country View, Lafarge Malayan Cement, Glenealy, GAB< Permaju, NCB, Tan Chong, Tasek, Mentiga and MAHB.



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Stocks to Watch Axis REIT, K-One Tech, IOI, Tan Chong, TNB

KUALA LUMPUR (April 12): Malaysian stocks could take the cue from China's first quarter gross domestic product (GDP) numbers, and the US corporate earnings dynamics on Friday.

Against the backdrop of external uncertainties, analysts cautioned that the FBM KLCI could see limited gains in the absence of domestic catalysts. The FBM KLCI rose 4.1 points to close at 1,601.27 on Thursday.

Stocks to watch on Friday include Axis Real Estate Investment Trust, K-ONE TECHNOLOGY [] BHD [], IOI Corp Bhd, TAN CHONG MOTOR HOLDINGS BHD [], and TENAGA NASIONAL BHD [] (TNB).

Axis REIT plans to acquire land within Negeri Sembilan's Nilai Industrial Area for RM26.5 million. The leasehold sites will be acquired from LRS Property Sdn Bhd, according to the acquirer.

K-One Tech, an electronic systems manufacturer, said one of its three factories in Ipoh was gutted by fire on Tuesday afternoon. The damaged is estimated at RM13 million, it said.

IOI's 30.4% associate Bumitama Agri Ltd rose as much as 36% on the PLANTATION [] firm's debut on the Singapore bourse on Thursday. Bumitama shares added 27 Singapore cents to an intraday high of S$1.02 (RM2.49) before closing lower at 98 Singapore cents.

CIMB Investment Bank has raised its fair value for Tan Chong from RM4.60 to RM4.75 with a "Neutral" recommendation.

TNB's second quarter net profit rose more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd (Petronas) mitigated the impact of costlier fuel to the state-owned utility's profits.

TNB said its bottom line was also helped by higher electricity sales and foreign exchange translation gains. It said net profit came in at RM2.82 billion in the second quarter ended Feb 29, 2012 against RM641.1 million a year earlier as revenue grew 17% to RM8.63 billion from RM7.37 billion.



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IOI’s Bumitama debuts on Singapore exchange, up 36%

KUALA LUMPUR (April 12) : IOI Corp Bhd’s 30.4% associate Bumitama Agri Ltd rose as much as 36% on the PLANTATION [] firm’s debut on the Singapore bourse on Thursday.

Bumitama shares added 27 cents to an intraday high of S$1.02 before trading lower at 98 cents at noon for a market capitalisation S$1.72 billion (RM4.21 billion). At 30.4%, IOI’s stake in Bumitama is worth S$523 million.

For comparison IOI shares declined three sen to RM5.37 on the Malaysian bourse during lunch break for a market value of RM34.5 billion.

The Hongkong and Shanghai Banking Corp Ltd and DBS Bank Ltd are joint managers, bookrunners, and underwriters for Bumitama’s initial public offering.



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KLCI opens at fresh new high

KUALA LUMPUR (April4): The FBM opened at a fresh new all-time high on Wednesday, with its momentum still intact despite the retreat at most key regional markets following the weaker overnight close at Wall Street after the after the U.S. Federal Reserve said it was less inclined to provide more economic stimulus.

The FBMKLCI was up 0.91 of a point to 1,607.54 at 9am, lifted by gains at blue chips including Genting, Maybank and IOI Corp.

Gainersled losers by 17 to 11, while 38 counters traded unchanged. Volume was 4.09 million shares valued at RM2.74 million.

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

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

Among the early gainers were BAT that rose 32 sen to RM56.54, Genting up four sen to RM11.08, Boustead two sen to RM5.48, while IOI Corp, Maybank, Telekom, Leader, MBSB, Muhibbah and Mudajaya added one sen each to RM5.37, RM8.96, RM5.39, RM1.07, RM2.29, RM1.35 and RM2.91, respectively.

Iris Corp was the most actively traded counter with 1.4 million shares done. The stock shed half a sen to 18 sen.

Other actives included Ariantec, TMS, IFCA MSC, Hubline, Voir and Telekom.



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KLCI breaches 1,590-level at mid-morning

KUALA LUMPUR (March30): the FBM KLCI trended higher at mid-morning on the final trading day of the first quarter of 2012, while regional markets drifted marginally lower on fears of global growth slowdown.

At 10am, the FBM KLCI was up 4.89 points to 1,590.33, lifted by select blue chips including KLK and Maybank.

Gainers led losers by 186 to 189, while 235 counters traded unchanged. Volume was 252.32 million shares valued at RM154.22 million.

Meanwhile, Asian shares steadied on Friday as investors eyed key events that could dictate market trends in coming months and as the first quarter drew to a close after a stellar performance from equities, according to Reuters.

Still, investor sentiment across asset classes is being undermined by fears of a potential growth slowdown, with European troubles back in focus and concerns about China, the world's second largest economy, it said.

At the regional markets, Japan;s Nikkei 225 shed 0.26% to 10,088.00, Hong Kong’s Hang Seng Index down 0.59% to 20,488.40, the Shanghai Composite Index dipped 0.40% to 2,261.15, Taiwan’s taiex fell 0.24% to 7,853.39, south Korea’s Kospi edged down 0.05% to 2,013.40, and Singapore’s Straits Times index fell 0.50% to 3,009.11.

BIMB Securities Research in a note March 30 said that from it was observing at the moment actual figures have to at least beat forecasts for investors to stay upbeat.

It said this was exactly the scenario Wall Street was facing as investors remain unimpressed despite the lower unemployment claims (but higher than forecast) and a 3% GDP growth for 4Q11.

“For this, the Dow Jones Industrial Average had a mixed session before edging marginally by 20 points to 13,146,” it said.

The research house said European bourses were sold down after S&P cautioned that Greece may have to undergo more restructuring.

“Asian stocks were also broadly lower from weaker European markets but the FBM KLCI was one of the handfuls ended the day on positive territory.

“The index was up 1.7 points to jump just above the immediate resistance of 1,585. We expect market to be lacklustre today amid some downside risks and lack of fresh leads with 1,580 as the immediate support level,” it said.

Among the gainers on Bursa Malaysia at mid-morning, KLK rose 38 sen to RM24.52, BAT 28 sen to RM56.80, Sapuracrest, Maybank, Carlsberg and United PLANTATION []s added eight sen each to RM4.88, RM8.88, RM10.28 and RM24.88 respectively, IOI Corp seven sen to RM5.34, while Cypark and Maxis adde six sen each to RM1.92 and RM6.06.

Carotech was the most actively traded counter with 46 million shares traded. The stock fell three sen to 2 sen.

Other actives included Key West, Winsun, SuperComnet, KBB, Trinity, IFCA MSC, Ariantec and TMS.

Decliners at mid-morning included GAB, Genting, Petronas Dagangan, PPB, Hong Leong Bank, HELP, Kluang, UMW, Harrisons and Tradewinds Plantations.



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KLCI edges higher in early trade

KUALA LIMPUR (March 30): The FBM KLCI trended higher in early trade on Friday, lifted by select blue chips including Petronas-linked stocks and index-linked PLANTATION [] counters.

At 9.05am, The FBM KLCI was up 4.17 points to 1,589.61.

Gainers led losers by 96 to 49, while 115 counters traded unchanged. Volume was 67.54 million share valued at RM23.14 million.

Among the gainers, BAT rose 28 sen to RM56.80, SapuraCrest 11 sen to RM4.91, Tradewinds nine sen to RM9.72, IOI Corp and PPB eight sen each to RM5.35 and RM16.88, Petronas gas six sen to RM16.80, while Petronas Chemicals, MMCCOrp, Maxis and Keck Seng added five sen each to RM6.73, RM2.85, RM6.05 and RM4.10 respectively.

Decliners included Dutch Lady, Utusan Malaysia, Genting, MMHE, Ewei, AFG, Astino, petronas Dagangan and Carotech.

Carotech was the most actively traded counter with 10.43 million shares done. The stosk fell two sen to 3 sen.

Other actives included Trinity, TMS, Ariantec, IFCA MSC, Caley, Nextnation and Winsun.



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HDBSVR sees market staging a rebound

KUALA LUMPUR (March 27): Hwang DBS Vickers Research said a robust overnight performance on Wall Street could give a fillip to Asian equities on Tuesday.

It said that major US stockindices jumped between 1.2% and 1.8% after the Federal Reserve chairman said accommodative monetary measures are still needed to stir the economy.

“Back home, the benchmark FBM KLCI is expected to pull away from the immediate support level of 1,580, possibly climbing towards the psychological barrier of 1,600 ahead,” it said.

HDBSVR said among the counters that may ride on the buoyant market sentiment include: (a) IOI Corporation, following a news report on the prospect of the PLANTATION [] giant making a huge paper gain of RM696 million arising from the impending listing of its Indonesian-based associate company in Singapore; (b) CBIP, after clinching a RM45 million contract to build a palm oil refinery plant; and (c) MSC, which has agreed to pay a higher royalty to the Perak state government on its sales of tin-in-concentrates in exchange for an extension in the mining lease period for its tin mine operation in the state.



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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 Research has technical sell on IOI Corp

KUALA LUMPUR (March 19): CIMB Equities Research has a technical sell on IOI Corporation at RM5.24 at which it is trading at a FY13 price-to-earnings of 15 times and price-to-book value of 2.8 times.

It said on Monday that IOI violated its wedge support last week and it said the stock was due for a correction.

“If we are right, the next downswing will likely push prices lower towards RM5.00 and RM4.84,” it said.

CIMB Research said as long as the candles stay below its key moving averages, the bears have the upper hand here. Indicators too point to more downside ahead, it added.

The research house said unloading on strength looks like a good option here. Only a rise above RM5.55 would prompt it to review its call.



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Plantations top losers midday

KUALA LUMPUR (March 15): PLANTATION []s were the top losers in the morning on Thursday but volume was relatively thin, as investors took profit after the recent run-up.

At 11.52am, Far East was down 38 sen to RM7.22, PPB 18 sen to RM16.80, Batu Kawan 14 sen to RM18.54 and IOI Corp eight sen lower to RM5.24.

The FBM KLCI shed 0.09 of a point to 1,575.62. Turnover was 569.98 million shares valued at RM567.17 million. There were 230 gainers, 352 losers and 316 stocks unchanged.

Crude palm oil prices for May delivery dipped RM1 to RM3,384 a tonne.



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Market Commentary

The FBM KLCI index gained 0.69 points or 0.04% on Tuesday. The Finance Index increased 0.01% to 14206.39 points, the Properties Index dropped 0.71% to 1057.79 points and the Plantation Index down 0.20% to 8644.77 points. The market traded within a range of 9.44 points between an intra-day high of 1589.95 and a low of 1580.51 during the session.

Actively traded stocks include WINSUN, CSL, ENVAIR, IFCAMSC, HWGB, HWGB-WB, NICORP, GOCEAN, KBUNAI and AXIATA. Trading volume decreased to 1288.12 mil shares worth RM1792.17 mil as compared to Monday’s 1448.66 mil shares worth RM1760.84 mil.

Leading Movers were GENTING (+16 sen to RM10.92), TM (+8 sen to RM5.25), MAYBANK (+2 sen to RM8.79), PETCHEM (+3 sen to RM6.92) and HLBANK (+10 sen to RM12.40). Lagging Movers were CIMB (-6 sen to RM7.42), TENAGA (-7 sen to RM6.24), BAT (-32 sen to RM52.52), DIGI (-2 sen to RM4.11) and IOICORP (-2 sen to RM5.40). Market breadth was negative with 257 gainers as compared to 519 losers. -- JF Apex Securities Bhd



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Market Commentary

The FBM KLCI index gained 0.27 points or 0.02% on Monday. The Finance Index increased 0.37% to 13913.15 points, the Properties Index dropped 0.18% to 1038.48 points and the Plantation Index down 0.22% to 8612.06 points. The market traded within a range of 7.58 points between an intra-day high of 1565.87 and a low of 1558.29 during the session.

Actively traded stocks include NICORP, CSL, FOCUS-WB, HARVEST-WA, ENVAIR, ASIAEP, IFCAMSC, HARVEST, PDZ and GOCEAN. Trading volume decreased to 1642.24 mil shares worth RM1633.98 mil as compared to Friday’s 1695.08 mil shares worth RM1941.07 mil.

Leading Movers were CIMB (+8 sen to RM7.14), YTL (+4 sen to RM1.54), TM (+7 sen to RM5.15), AMMB (+8 sen to RM6.11) and RHBCAP (+20 sen to RM7.86). Lagging Movers were GENM (-6 sen to RM3.81), IOICORP (-3 sen to RM5.40), PBBANK (-4 sen to RM13.62), SIME (-3 sen to RM9.57) and MAYBANK (-2 sen to RM8.75). Market breadth was negative with 327 gainers as compared to 455 losers. -- JF Apex Securities Bhd



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China Stationery in focus, KLCI closes higher

KUALA LUMPUR (Feb 24): China Stationery Ltd (CSL) was in focus on Friday when it made its debut on Bursa Malaysia on Friday, closing 15.8% higher amid some profit-taking activities in the broader market.

CSL closed up 15 sen to RM1.10 and it was the most active stock with 154 million shares traded.

The stationery manufacturer's initial public offering, priced at 95 sen per share, raised RM85.50 million from its public issue of 90 million new shares.

As for the FBM KLCI, it closed up 2.11 points or 0.14% at 1,558.77, led Axiata (up 6.0 sen to RM5.15), YTL Corp (up 7.0 sen to RM1.49) and IOI Corp (up 6.0 sen to RM5.39). Their gains pushed the index up 3.16 points.

Turnover was 1.70 billion shares valued at RM1.94 billion. Gainers led losers 425 to 373 while 343 counters traded unchanged.

Regional markets closed higher, with the Shanghai Composite Index up 1.25% to 2,439.63, Hong Kong's Hang Seng Index up 0.12% to 21,406.86, Japan's Nikkei 225 0.54% to 9,647.38, South Korea's Kospi rose 0.60% to 2,019.89, Singapore's Straits Index up 0.33% to 2,978.08 and Taiwan's Taiex, up 0.28% to 7,959.34.

Commenting on the performance of Bursa Malaysia, Dr Nazri Khan, vice president of retail research at Affin Investment Bank Research said:

"We see the last three profit taking days (Wednesday to Friday) as a healthy correction to neutralise its overbought momentum.

"We also note that the strong ringgit performance (1.1% weekly gain and 4.5% year to date gain) as positive signs of more inflow for the local equities.”

At Bursa Malaysia, top gainers included British American Tobacco up 44 sen to RM52.56, Panasonic Malaysia up 42 sen to RM21.00 and Dutch Lady up 28 sen to RM25.80.

Losers were led by PLANTATION [] stocks such as BLD Plantation down 39 sen to RM9.51 and United Plantation down 34 sen to RM23.84. Oriental Holdings fell 27 sen to RM6.07, MBM Resources also 27 sen lower at RM4.62 and Genting 26 sen to RM10.46.



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Market Commentary

The FBM KLCI index gained 2.11 points or 0.14% on Friday. The Finance Index fell 0.04% to 13861.51 points, the Properties Index up 0.30% to 1040.31 points and the Plantation Index rose 0.31% to 8630.99 points. The market traded within a range of 6.02 points between an intra-day high of 1559.64 and a low of 1553.62 during the session.

Actively traded stocks include CSL, NICORP, HIBISCS-WA, IFCAMSC, TMS, AXIATA, HARVEST-WA, TIGER, ENVAIR and YTL. Trading volume decreased to 1695.08 mil shares worth RM1941.07 mil as compared to Thursday’s 1951.41 mil shares worth RM2109.15 mil.

Leading Movers were IOICORP (+10 sen to RM5.43), MAYBANK (+7 sen to RM8.77), AXIATA (+6 sen to RM5.15), YTL (+8 sen to RM1.50) and TENAGA (+6 sen to RM6.25). Lagging Movers were GENTING (-26 sen to RM10.46), CIMB (-10 sen to RM7.06), SIME (-3 sen to RM9.60), AMMB (-4 sen to RM6.03) and PBBANK (-2 sen to RM13.66). Market breadth was positive with 425 gainers as compared to 373 losers. -- JF Apex Securities Bhd



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CIMB Research ups IOI Corp’s earnings but keep underperform call

KUALA LUMPUR (Feb 24): CIMB Equities Research said IOI Corp’s 1HFY6/12 results were in line with expectations, at 51% of its and consensus full-year forecasts.

It said on Friday that also in line was the 7.0 sen interim dividend.

“We raise our FY12 earnings by 2.5% for higher FFB output, which more than cover our cut in manufacturing earnings.

“IOI Corp remains an Underperform as its valuations are rich relative to the market and its manufacturing margin may be hurt by rising competition,” said CIMB Research.



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IOI Corp Q2 net income rises to RM577.7m

IOI Corp, Malaysia’s second-biggest palm oil planter by market value, said second-quarter profit gained 11 per cent on higher crude palm oil prices.

Net income advanced to RM577.7 million (US$191 million), or 9 sen a share, in the three months ended Dec 31, from RM520.2 million or 8 sen, a year earlier, the company said in a statement today. Sales increased 5 per cent to RM4.17 billion on higher contributions from the group’s core palm oil business.

IOI fetched an average RM3,032 a metric ton for its crude palm oil in the quarter, compared with RM2,800 a year ago, it said.

Palm futures gained 9.3 per cent in the quarter ended Dec 31. The May-delivery contract gained as much as 0.7 per cent to RM3,272 a ton on the Malaysia Derivatives Exchange today after reaching an 8-month high of RM3,294 ringgit.

Palm-oil exports from Malaysia, the second-largest producer, may climb as much as 10 per cent this year, expanding faster than local output and helping to drive down stockpiles and support prices, Lee Yeow Chor, IOI’s executive director and chairman of the Malaysian Palm Oil Council, said on Feb. 15. Prices may reach RM4,000 a ton by June, Dorab Mistry, a director of Godrej International Ltd., forecast in December.

IOI declined 0.2 per cent to RM5.33 at 3:40 p.m. local time compared with the 0.1 drop in the benchmark FTSE Bursa Malaysia KLCI Index.

“The plantation segment is expected to perform well for the current financial year on the back of strong crude palm oil prices and higher FFB productions,” IOI said.

IOI’s resource-based manufacturing segment reported a 22 per cent rise in profit to RM124.2 million on increased margins from oleochemicals and higher sales from specialty fats and refineries, according to the statement.

Property development earnings rose 16 per cent to RM146.1 million, it said. The group generates around 5.9 per cent of its revenue from real estate including investments, according to data compiled by Bloomberg.

The company declared an interim dividend of 7 sen per ordinary share for the financial year ending June 2012. -- Bloomberg



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IOI Corp 2Q net profit up 11% to RM577m, 70% dividends

KUALA LUMPUR (Feb 23): IOI CORPORATION BHD []’s earnings rose 11% to RM577.67 million in the second quarter ended Dec 31, 2011 from RM520.24 million a year ago.

The company said on Thursday its revenue increased by 4.9% to RM4.165 billion from RM3.970 billion. Earnings per share were 8.99 sen compared with 8.15 sen.

IOI said the board of directors declared the first Interim single tier dividend of 70% or 7.0 sen per ordinary share of 10 sen each.

The group reported a pre-tax profit of RM1.191 billion, which is 12% lower than the profit of RM1.351 billion reported in the previous corresponding period.

“The decrease is due mainly to translation loss on foreign currency denominated borrowings of RM240.5 million (compared to a gain of gain of RM139.1 million a year ago). Segment results of the Group however recorded an increase of 15%, with higher contributions from both PLANTATION [] and resource-based manufacturing segments, offset by lower contributions from property segments,” it said.

For the first half, IOI’s earnings fell 17.9% to RM835.77 million from RM1.018 billion in the previous corresponding period. Its revenue rose 10.9% to RM8.313 billion from RM7.489 billion.



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Market Commentary

The FBM KLCI index lost 3.26 points or 0.21% on Wednesday. The Finance Index fell 0.01% to 13949.99 points, the Properties Index dropped 0.44% to 1044.25 points and the Plantation Index down 0.91% to 8666.2 points. The market traded within a range of 6.31 points between an intra-day high of 1565.25 and a low of 1558.94 during the session.

Actively traded stocks include TMS, GOCEAN, IFCAMSC, GPACKET-WA, NICORP, INGENS, FOCUS, MTRONIC, GEFUNG and COMPUGT. Trading volume increased to 2230.80 mil shares worth RM1937.12 mil as compared to Tuesday’s 1894.51 mil shares worth RM1747.28 mil.

Leading Movers were GENTING (+10 sen to RM10.84), TM (+10 sen to RM5.03), TENAGA (+4 sen to RM6.11), RHBCAP (+23 sen to RM7.78) and DIGI (+1 sen to RM4.01). Lagging Movers were IOICORP (-10 sen to RM5.34), PPB (-50 sen to RM17.14), CIMB (-5 sen to RM7.24), GENM (-7 sen to RM3.87) and KLK (-36 sen to RM23.64). Market breadth was negative with 302 gainers as compared to 541 losers. -- JF Apex Securities Bhd



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KLCI closes marginally lower

KUALA LUMPUR (Feb 22): The FBM KLCI closed marginally lower, dragged down by PLANTATION [] stocks and doubts on Greece's ability to undertake austerity measures.

The FBM KLCI on Wednesday closed 3.26 points lower, or 0.21%, to close at 1.560.52, weighed down by plantation-related stocks — such as IOI Group (down 10 sen to RM5.34), PPB GROUP BHD [] (down 50 sen to RM17.14) and KLK (down 36 sen to RM23.64) — which brought the index down by 3.06 points.

A total of 2.32 billion shares were traded, valued at RM1.94 billion. Losers led gainers 541 to 302, while 298 counters traded unchanged.

Regionally, markets closed on a positive note, made upbeat by China's Production Manufacturing Index (PMI) numbers, which rose to 49.7 in February from 48.8 in January — the highest in four months.

Taiwan's Taiex was up 1.01% to 8,001.68, Japan's Nikkei 225 rose 0.96% to 9,554.00, Shanghai's Composite Index up 0.93% to 2,403.59, Hong Kong's Hang Seng Index rose 0.33% to 21,549.28, and South Korea's Kospi increased marginally by 0.22% to 2,028.65. However, Singapore's Straits Index fell 0.97% to 2,995.59.

On Bursa Malaysia, top gainers included DUTCH LADY MILK INDUSTRIES BHD [] (up 40 sen to RM25.80), TAHPS GROUP BHD [] (up 39 sen to RM4.80), and CHIN TECK PLANTATIONS BHD [] (up 34 sen to RM9).

Among top losers were HARRISONS HOLDINGS (M) BHD [] (down 53 sen to RM3.17), after it received a letter of demand from Kastam DiRaja Malaysia for unpaid excise, import and sales tax amounting RM91.75 million.

PPB Group Bhd also continued its losing streak after Wilmar International Ltd — the world's largest palm oil firm — released its 4Q11 results, which missed analyst estimates. The stock was down 50 sen to RM17.14.

Most actively traded on Wednesday included The Media Shoppe (down half a sen to 11 sen, with 221.5 million shares traded), Green Ocean Corporation Bhd (down 2.5 sen to 30 sen), and IFCA MSC BHD [] (up one sen to 14.5 sen).



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Markets firmer, rotational play of penny stocks

KUALA LUMPUR (Feb 17): Key Asian markets except China were firmer at midday on Friday, as investors were relieved that Greece had finally implemented measures to secure a second bailout.

At Bursa Malaysia, the FBM KLCI rose 7.04 points or 0.45% to 1,557.53. Turnover was 1.21 billion shares valued at RM880.56 million. Advancing stocks beat decliners nearly two to one, with 426 gainers to 232 losers. Rotational play was seen in several penny stocks which had been under the radar for several months such as PDZ, GPA, IPower and Marco.

Among key regional markets, Japan’s Nikkei 225 rose 1.68% to 9,393.50, Hong Kong’s Hang Seng Index added 0.70% to 21,425.90, Taiwan’s Taiex 0.12% to 7,879.30 and South Korea’s Kospi 1.48% to 2,027.05 and Singapore’s Straits Times Index 0.47% to 2,991.23. However, Shanghai’s Composite Index lost 0.14% to 2,353.51.

April Brent crude oil futures rose 17 cents to US$120.28 while US light crude oil added 14 cents to US$102.45.

The ringgit gained 0.0107 to 3,0485 to the US dollar. Crude palm oil third-month futures rose RM22 to RM3,211 per tonne.

At Bursa Malaysia, Tasek was the top gainer, up 49 sen to RM8.49 with 64,500 shares done after it declared dividends totaling 86% despite weaker earnings.

Among the index-linked stocks, GENTING BHD []’s 18 sen gain to RM10.70 pushed the KLCI up 1.57 points.

Tenaga saw some recovery, rising 10 sen to RM6.10 on news that the recommended price of natural gas is being finalised and is scheduled to be presented to the Cabinet by the end of March. The framework will decide how much should be borne by Tenaga, independent power producers (IPPs) and end- consumers.

Sime rose nine sen to RM9.63. Among the banks, HLFG added 22 sen to RM11.76, Maybank four sen to RM8.54, Public Bank six sen to RM13.70 and CIMB two sen to RM7.27.

Among PLANTATION []s, Batu Kawan added 34 sen to RM19.86, TDM 14 sen to RM4.84 and IOI Corp three sen to RM5.44. BLD Plantations fell 28 sen to RM9.72 in thin trade and United Plantations 12 sen lower at RM22.54.

Dialog-WA extended its rally for the third day, adding 17 sen to 83 sen with 62.71 million units.

Rotational play was seen in related penny stocks with PDZ to the fore, adding five sen to 13.5 sen with 95.16 million shares done, GPA 1.5 sen to 10.5 sen and IPower one sen to 5.5 sen and Marco-WA adding one sen to 7.5 sen.

Among the decliners were MUH, sliding as much as 22 sen to 38 sen, while Nestle gave up 16 sen to RM55.34 and BAT 12 sen to RM52.18 while Hartalega gave up some of the recent gains, down eight sen to RM7.74.



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