IRCB major shareholder disposes of 9m IRCB shares

KUALA LUMPUR (Dec 30): Chip Lam Seng Bhd, a major shareholder of INTEGRATED RUBBER CORPORATION BHD (IRCB) disposed of nine million shares over three trading days in late December.

Filings with Bursa Malaysia showed Chip Lam Seng sold 2.5 million shares on Dec 23 and 3.5 million shares on Dec 27. It disposed of three million shares on Dec 28.

After the recent disposals, its shareholding in IRCB was reduced to 154.62 million shares or 26.12%.



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Integrated Rubber falls on Q3 net loss

Integrated Rubber Corp, a Malaysian glove maker, fell to a one-week low in Kuala Lumpur trading after reporting a third-quarter net loss of RM5.3 million.

The stock dropped 3 percent to 16 sen at 9:03 a.m. local time, set for its lowest close since Dec. 21. -- Bloomberg



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Stocks to watch: Cypark, Box-Pak, IRCB, Trinity

KUALA LUMPUR (Dec 31): With Friday being the last trading day of the year, there could be some last-minute window dressing activities for blue chip stocks to ensure the FBM KLCI closes well above the 1,500 mark and ends the year in a positive note.

The FBM KLCI closed closed 2.58 points higher at 1,506.69. Year-to-date, the 30-stock benchmark index is down only 0.81%. The overall market tone was firmer with advancing counters beating decliners 492 to 254.

However, investors should also expect some profit-taking on stocks which had run up recently like Proton on strong newsflow.

As expected, external developments from Europe and the US would determine the final trading day.

Among the stocks which could see trading interest are CYPARK RESOURCES BHD [], BOX-PAK (MALAYSIA) BHD [], INTEGRATED RUBBER CORPORATION [] Bhd (IRCB), Trinity Corporation Bhd (formerly TALAM CORPORATION BHD []), KUMPULAN EUROPLUS BHD [] and BERJAYA CORPORATION BHD [].

Cypark received a contract worth RM14.71 million to upgrade the landfill site at Kok Foh, Jempol in Negeri Sembilan. It received the letter of acceptance for the contract from the National Solid Waste Management Department.

Shares of Box-Pak could continue to see selling pressure after KIAN JOO CAN FACTORY BHD [] stated it was unaware of any negotiations to privatise Box-Pak. Box-Pak closed 24 sen down to RM2.23 with 5.35 million shares done.

Meanwhile, IRCB posted net loss RM5.29 million in the third quarter ended Oct 31, 2011 from net profit RM2.88 million a year earlier, on lower output and volatile latex prices. Its revenue for the quarter fell 21.96% to RM24.83 million from RM31.82 million in 2010.

For the nine months ended Oct 31, IRCB posted net loss of RM17.93 million compared to net profit RM3.36 million in the previous corresponding period while revenue decreased to RM86.99 million from RM107.24 million.

Trinity posted net loss of RM29.26 million in the third quarter ended Oct 31, 2011 from RM83.29 million a year ago.

The losses were due to an impairment provision of RM9.20 million made on a piece of development land to be sold to a third party and also provisions made for doubtful debts of RM14.93 million.

Kumpulan Europlus posted net profit of RM1 million in the third quarter ended Oct 31, 2011 compared with net loss of RM19.31 million a year ago.

Its pre-tax profit of RM1.33 million versus pre-tax loss of RM16.08 million a year ago was mainly due to interest income of RM1.66 million, accretion of equity interest in Talam Corp Bhd of RM 2.21 million and fair value gain of RM 2.09 million on short term investments.

Thai conglomerate Charoen Pokphand Foods PCL’s Malaysian company is acquiring property-based MKH Bhd’s food processing and livestock farming operations for RM64 million.

Berjaya Corporation Bhd posted net profit of RM22.96 million in its second quarter ended Oct 31, 2011, down 73.4% from RM86.54 million a year ago in the absence of write-backs.

It said in the previous quarter, there were certain gains on write-back of impairment relating to associated companies and recognition of gains on disposal of subsidiary companies.

“Operationally, the current quarter results are comparable to the previous year corresponding quarter results,” it said.



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IRCB posts net loss RM5.29 million in 3Q

KUALA LUMPUR (Dec 29): INTEGRATED RUBBER CORPORATION [] Bhd (IRCB) posted net loss RM5.29 million in the third quarter ended Oct 31, 2011 from net profit RM2.88 million a year earlier, on lower output and volatile latex prices.

The company said on Thursday that its revenue for the quarter fell 21.96% to RM24.83 million from RM31.82 million in 2010.

Loss per share was 0.98 sen compared to earnings per share of 1.21 sen, while net assets per share was 14 sen.

For the nine months ended Oct 31, IRCB registered a net loss of RM17.93 million compared to net profit RM3.36 million a year earlier, while revenue decreased to RM86.99 million from RM107.24 million.

Reviewing its performance, IRCB said the drop in revenue was due mainly to decrease in production output caused by the shortage of manpower and volatility of latex price for the third quarter.

It said that in addition, the stock write down of RM1.46 million which was non-recurring in nature further caused deterioration of its results.

On its prospects, IRCB said the volatility of latex price and foreign exchange coupled with the excess supply capacity remain as competitive and challenging factors in the industry.

However, the company said that with the more manageable raw material prices and recovery of manpower, it expects to improve its revenue in the coming quarter.



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OSK Research sees bounce in Integrated Rubber Corp’s shares

KUALA LUMPUR (Dec 29): OSK Retail Research said INTEGRATED RUBBER CORPORATION BHD’s (IRCB) share price has already retraced back to 15.5 sen, which is the opening level of the strong intra-day rally on Oct 20.

It said on Thursday that on that day, the stock rallied 29% and the opening point of such strong price action was normally perceived as strong buying support.

“As IRCB’s volume had noticeably increased yesterday, there is a possibility that the stock will start rebounding from here and towards the 200-day MAV line. “Traders could consider accumulating the shares at the current level and bet for a rebound to emerge near the 15.5 sen level,” it said.

OSK Research said the 200-day MAV line, which now lies at the 18 senlevel, represented the upside target. On the flip side, the stop loss is pegged at below the 15.5 sen level.



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KL shares open softer in cautious trade

Share prices on Bursa Malaysia opened softer this morning in cautious trading, dealers said. The FBM KLCI opened 0.38 points lower at 1,484.6 and trended lower to 1,484.05 at 9.50am.

However, the Finance Index rose 0.27 points to 13,267.37, Plantation Index increased 14.69 points to 7,922 and the Industrial Index gained 1.2 points to 2,664.02. The FBM Emas Index declined 4.55 points to 10,165.91, FBM Mid 70 Index added 9.601 points to 11,174.07 and the FBM ACE Index shed 29.84 points to 4,036.55.

Losers led gainers 234 to 151 while 206 counters were unchanged. Turnover amounted to 288.949 million shares worth RM123.920 million.

Of active counters, TMC Life Sciences Bhd-Warr added 11 sen to 11.5 sen, Sanichi Tech shed one sen to 14.5 and Integrated Rubber Corp increased one sen to 17 sen. In heavyweights, Maybank rose one sen to RM8.38, Sime Darby eased one sen to RM8.99 and CIMB added three sen to RM6.98. -- Bernama



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CIMB Research has technical buy on Integrated Rubber at 18 sen

KUALA LUMPUR (Nov 29): CIMB Equities Research has a technical buy on INTEGRATED RUBBER CORPORATION [] at 18 sen at which it is trading at a price-to-book value of 0.5 times.

The research house said on Tuesday the recent correction dragged prices towards its 50-day SMA but it thinks the stock is ripe for a stronger rebound soon.

CIMB Research said currently, the bulls are trying to push above its 200-day SMA. Expect momentum to pick up strongly once the candles swing above the 19 sen level.

“MACD histogram bars are falling at a slower pace, suggesting that selling pressure has tapered off. RSI too has hooked upward.

“Risk takers may start to nibble now while others should wait for a push above the 19 sen level before going long. Be quick to cut loss if the 16.5 sen level is breached,” it said.



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Market Commentary

The FBM KLCI index gained 10.07 points or 0.68% on Monday. The Finance Index increased 0.55% to 13494.2 points, the Properties Index dropped 0.10% to 965.87 points and the Plantation Index rose 0.94% to 7565.3 points. The market traded within a range of 17.57 points between an intra-day high of 1493.28 and a low of 1475.71 during the session.

Actively traded stocks include JCY, MAA, ZELAN, JCY-CD, OLYMPIA, IRCB, BORNOIL, MBFHLDG-WA, TMS and KURASIA. Trading volume decreased to 1331.98 mil shares worth RM1581.95 mil as compared to Friday’s 1877.90 mil shares worth RM2295.28 mil.

Leading Movers were CIMB (+11 sen to RM7.57), IOICORP (+11 sen to RM5.25), TENAGA (+12 sen to RM5.98), GENTING (+16 sen to RM10.76) and PBBANK (+10 sen to RM12.72). Lagging Movers were YTL (-2 sen to RM1.49), GAMUDA (-3 sen to RM3.40), HLBANK (-3 sen to RM10.60), TM (-1 sen to RM4.24) and PETDAG (-2 sen to RM16.30). Market breadth was positive with 426 gainers as compared to 318 losers.-- JF Apex Securities Bhd

KL shares lower at midafternoon

Share prices on Bursa Malaysia were lower at midafternoon today, dragged down by heavyweights led by Petronas Dagangan and RHB Capital, dealers said.

As at 3pm, the benchmark index declined 0.98 point to 1,480.84, after opening 2.84 points higher at 1,484.66.

Dealers said investor sentiment was dented by negative movement on regional markets following weaker US equities market overnight.

Petronas Dagangan and RHB Capital fell 12 sen each to RM16.20 and RM7.55, respectively.

Decliners led advancers by 373 to 277 while 266 counters were unchanged, 554 untraded and 19 others suspended. Trading was moderate with a volume of 757.43 million shares worth RM713.9 million.

The Finance Index fell 17.87 points to 13,402.72, Industrial Index was down by 5.75 points to 2,708.91 and the Plantation Index decreased 1.14 points to 7,493.54.

The FBM Emas lost 10.94 points to 10,106.42 and the FBM 70 Index declined 40.5 points to 10,919.15. The FBMT100 dropped 13.03 points to 9,922.96 and the FBM Ace Index slipped 37.14 points to 4,035.81.

Of the active counters, JCY International gained four sen to 61 sen, Integrated Rubber rose a sen to 20 sen and MAA Group added three sen to 51 sen.

Among heavyweights, Maybank fell one sen to RM8.34, CIMB rose two sen to RM7.48 and Sime Darby declined four sen to RM8.86. -- Bernama

KL shares end morning session lower

Share prices on Bursa Malaysia ended the morning session lower today on selling pressure after recent gains, led by Petronas Dagangan, dealers said.

At 12.30pm, the 30-stock index was 4.04 points lower at 1,477.78, pulled down mostly by loses in selected heavyweights, although it opened 2.84 points higher at 1,484.66 this morning.

They said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) moved in line with the weaker trend on key equity indices on Wall Street which closed between -0.1 per cent and +0.2 per cent.

HwangDBS Vickers said the markets possibly imply waning investor optimism on the European debt bailout plan, which thus far still lacks actionable details.

"Some investors are standing on the sidelines waiting for a fresh catalyst," it said, adding, the FBM KLCI's immediate support level is seen at 1,475.

The benchmark index has gained three per cent over the last four trading days, HwangDBS said.

Meanwhile, volume stood at 637.1 million shares worth RM526.3 million with losers leading gainers 334 to 261 with 263 others unchanged and 612 untraded.

The Finance Index fell 21.16 points to 13,399.43, the Plantation Index declined 6.71 points to 7,487.97 and the Industrial Index lost 10.12 points to 2,704.54.

The FBM Emas Index decreased 29.811 points to 10,087.55, the FBM Mid 70 Index fell 51.07 points to 10,908.58 and the FBM Ace Index declined 32.03 points to 4,040.92.

Among active stocks, JCY International rose four sen to 61 sen while Integrated Rubber Corp and Borneo Oil, was up 1.5 sen each to 20.5 sen and 42.5 sen respectively.

For the heavyweights, Maybank fell one sen to RM8.34 and Sime Darby fell five sen to RM8.85 but CIMB improved two sen to RM7.48. -- Bernama