Stocks to Watch Kencana, SapuraCrest, Oriental, KAF, BAT

KUALA LUMPUR (April 23): Malaysian stocks may see further weakness on Tuesday against less-optimistic fundamental and technical indicators. Analysts have a downside-bias perception on the FBM KLCI in anticipation that global economic data and Malaysia's pre-election sentiment could curb gains across the 30-stock benchmark.

Crucial global highlights this week include potential indications of further quantitative easing by US policymakers, and China's monetary policy, results from which will influence the direction of global financial markets.

The spotlight also falls on Europe after the Flash Purchasing Manager's Indexes for Europe indicated a quicker pace of economic decline for the region. These global updates have resulted in a sell-off across Asian stockmarkets.

The FBM KLCI fell 8.05 points to 1,583.8 on Monday.

Stocks to watch on Tuesday include KENCANA PETROLEUM BHD [], SAPURACREST PETROLEUM BHD [], ORIENTAL HOLDINGS BHD [], KAF-Seagroatt & Campbell Bhd, and BRITISH AMERICAN TOBACCO (M) [] Bhd (BAT).

Shares of Kencana and SapuraCrest rose on news that trading of both stocks will be suspended beginning May 2 to facilitate the capital repayment exercises by the oil and gas support service providers. The capital repayment is in conjunction with the merger of both firms under a new-listed entity, SapuraKencana Petroleum Bhd.

Diversified entity Oriental trades ex-dividend on Tuesday. The company — the portfolio of which includes automotive, property and PLANTATION []s — plans to reward shareholders with a single-tier interim dividend of 3% for the financial year ended Dec 31, 2011. The final lodgement day is this Thursday.

KAF's third quarter (3Q) net profit more than doubled from a year earlier, as the stockbroking firm registered higher non-operating gains, which mitigated the impact of lower revenue and higher operating expenses. In a statement to the exchange on Monday, KAF said net profit came to RM8.62 million in the quarter to Feb 29, 2012 versus RM4 million a year earlier. Revenue fell 15% to RM7.18 million from RM8.45 million.

BAT's net profit rose 9% to RM194.51 million in the first quarter ended March 31, 2012 from RM178.56 million a year earlier, helped by higher revenue and lower operating expenses. The company said revenue rose 5% to RM1.04 billion from RM992.15 million. The tobacco firm plans said it plans to reward shareholders with a first interim tax-exempt dividend of 65 sen a share for the current financial year ending Dec 31, 2012.



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KAF 3Q profit doubles on non-operating gains

KUALA LUMPUR (April 23) : KAF-Seagroatt & Campbell Bhd’s third quarter net profit more than doubled from a year earlier as the stockbroking firm registered higher non-operating gains which mitigated the impact of lower revenue and higher operating expenses.

In a statement to the exchange on Monday, KAF said net profit came to RM8.62 million in the quarter to February 29, 2012 versus RM4 million a year earlier. Revenue fell 15% to RM7.18 million from RM8.45 million.

“There is no net gain on disposal of unquoted investments, which are mainly private debts securities, for the current financial period to date. There was no sale of PROPERTIES [] during the period.

“Particulars on the purchase or disposal of quoted securities are not provided, as the activities of the group comprises principally of stockbroking and related services,” said debt-free KAF which had a cash pile of RM93.97 million as at February 29 this year.

Cumulative nine-month net profit fell 31% to RM12.87 million from RM18.64 million a year earlier while revenue was down 7% to RM21.34 million from RM23.01 million. The company said barring any unforeseen circumstances, its performance for the current financial year will be line with the local stock market.



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KLCI stays in the black at mid-day, lifted by select blue chips

KUALA LUMPUR (Feb 2): The FBM KLCI remained in positive territory at the mid-day break on Thursday, tracking the gains at key regional markets, but struggled to climb above the 1,530-level.

At 12.30pm, the index added 7.94 points to 1,529.23, lifted by gains at select blue chips.

Gainers led losers by 504 to 272, while 338 counters traded unchanged. Volume was 1.46 billion shares valued at RM1.31 billion.

The ringgit strengthened 0.81% to 3.0208 versus the US dollar; crude palm oil futures for third month delivery fell RM10 per tonne to RM3,065, crude oil slipped eight sen to US$97.53 while gold rose US$4.35 an ounce to US$1,747.75.

At the regional markets, Japan’s Nikkei 225 rose 0.91% to 8,889.85, Hong Kong’s Hang Seng Index added 1.46% to 20,629.60, the Shanghai Composite Index up 0.31% to 2,275.04, Taiwan’s Taiex gained 0.75% to 7,605.84, South Korea’s Kospi rose 1.29% to 1,984.55 while Singapore’s Straits Times Index was up 0.48% to 2,918.82.

On Bursa Malaysia, Hartalega was the top gainer this morning and was up 42 sen to RM7.64; BAT added 40 sen to RM49.80, Petronas Gas 38 sen to RM16.06, KAF, Malayan Flour Mills, IJM Corp and Petronas Dagangan added 20 sen each to RM1.95, RM4.53, RM5.94 and RM18.20 respectively, United PLANTATION []s 18 sen to RM20.52 while SOP added 15 sen to RM6.30.

Tebrau Teguh was the most actively traded counter after a takeover offer made by Iskandar Waterfront Holdings Sdn Bhd (IWH), which is offering 76 sen per share – or just one sen above Tebrau’s pre-suspension price of 75 sen.

The stock rose 8.5 sen to 83.5 sen with 52.6 million shares done.

Other actives included DBE Gurney, Petronas Chemicals, Coastal Contracts, DRB-Hicom, Karyon, UEM Land and Benalec.

Decliners included Glenealy, RHB Capital, Southern Steel, Mintye, Dutch Lady, KLK, TDM, Tenaga, Melewar and SHL.



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KLCI edges up to close higher, but broader market stays weak

KUALA LUMPUR (Dec 22): The FBM KLCI inched up to close higher on Thursday and bucked the trend among regional markets that appeared to be weighed by eurozone debt crisis jitters.

Meanwhile, European stocks rose in early trade on Thursday, reversing all of the previous session's losses, but nagging worries over the euro zone debt crisis after the European Central Bank's 3-year tender were seen capping the rebound ahead of the holiday break, according to Reuters.

The FBM KLCI rose 6.48 points to close at 1,491.46, lifted by gains at select blue chips.

But the broader market remained weak with losers beating gainers by 455 to 290, while 287 counters traded unchanged. Volume was 1.2 billion shares valued at RM1.02 billion.

At the regional markets, Japan’s Nikkei 225 fell 0.77% to 8,395.16, the Shanghai Composite Index lost 0.22% to 2,186.30, Hong Kong’s Hang Seng Index was down 0.21% 18,378.23, South Korea’s Kospi fell 0.05% to 1,847.49, Taiwan’s Taiex was flat at 6,966.35 and Singapore’s Straits Times Index shed 0.32% to 2,664.80.

On Bursa Malaysia, Nestle was the top gainer and added 42 sen to RM56.60; Hong Leong Bank rose 32 sen to RM10.86, United PLANTATION []s 30 sen to RM18.60, PPB 24 sen to RM17.10, Supermax 20 sen to RM3.68, Top Glove 19 sen to RM4.65, Shell 15 sen to RM9.30, Genting 14 sen to RM10.76 and Hartalega 13 sen to RM5.68.

Jaya Tiasa was the top loser and fell 18 sen to RM6.81; Widetech lost 14 sen to 52 sen, Petrol One 13 sen to 84 sen, Dutch Lady and KAF down 12 sen each to RM23.30 and RM1.60, while Sungei Bagan lost nine sen to RM2.78.

The actives included TMC Life, Sanichi, Hibiscus, Utopia, Flonic, UEM Land, Envair and IRCB.



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KLCI edges up marginally at mid-day, but sentiment remains jittery

KUALA LUMPUR (Dec 22): The FBM KLCI edged up marginally at the mid-day break on Thursday, while key regional markets slipped as lingering concerns over the eurozone debt crisis kept investor sentiment jittery.

Asian shares and the euro eased on Thursday as doubts remained over how much of the funds banks raised from an inaugural long-term European Central Bank tender will actually flow into struggling euro zone economies and help restore confidence, according to Reuters.

The FBM KLCI edged up 0.79 point to 1,485.77 at the mid-day break, lifted by select blue chips.

Gainers trailed losers by 212 to 380, while 274 counters traded unchanged. Volume was 629.41 million shares valued at RM397.79 million.

The ringgit weakened 0.53% to 3.1778; crude palm oil futures for the third month delivery rose RM13 per tonne to RM3,085; crude oil added 18 cents per barrel to US$98.85 while gold fell US$4.78 an ounce to US$1,610.45.

At the regional markets, Japan’s Nikkei 225 fell 0.58% to 8,411.33, Hong Kong’s Hang Seng Index lost 0.53% to 18,318.39, the Shanghai Composite Index was down 0.44% to 2,181.52, Singapore’s Straits Times Index lost 0.39% to 2,662.79, South Korea’s Kospi fell 0.23% to 1,844.20 and Taiwan’s Taeix shed 0.07% to 6,961.34.

On Bursa Malaysia, Boustead added 14 sen to RM5.80, Nestle and Top Glove added 12 sen each to RM56.30 and RM4.58, Supermax gained 11 sen to RM3.59, while PPB, Hartalega and Petronas Dagangan gained 10 sen each to RM16.96, RM5.65 and RM17.06 respectively.

Among banking stocks, Hong Leong Bank gained six sen to RM10.60, CIMB four sen to RM6.99 and Maybank one sen to RM8.38.

BAT was the top loser this morning and fell 28 sen to RM47.68; Petrol One down 13 sen to 84 sen, KAF 10 sen to RM1.62, Sungei Bagan seven sen to RM2.80, Mahajaya down 6.5 sen to 61 sen, while Utusan, Uzma, Batu Kawan, Quality Concrete and Kluang lost six sen each to 72 sen, RM1.56, RM17, RM1.24 and RM2.60 respectively.

Meanwhile, the actively traded stocks included TMC Life, Hibiscus, Sanichi, Flonic, IRCB, Envair and Rimbunan Sawit.



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KAF, UEM Land, JCY buck market downtrend

PETALING JAYA: Amid the bearish market sentiment yesterday, several stocks bucked the generally downward trend, perked up by company-specific news.
Stocks such as stockbroker KAF-Seagroatt & Campbell Bhd, property developer UEM Land Holdings Bhd and hard disk drive (HDD) component maker JCY Holdings Bhd ended the day higher, outpacing the broader FBM KLCI which shed 12.61 points or 0.85% to settle at 1465.17.

KAF rose 15 sen or 11.3% to end at RM1.48 after The Edge Financial Daily reported yesterday that a Singapore bank, speculated to be OCBC Bank, is looking to acquire the company’s securities business.

OCBC, the second largest banking group in Singapore and Southeast Asia, is the only one of Singapore’s big three banks with no presence in Malaysia’s capital market services industry.

Following The Edge Financial Daily article, Bloomberg also reported yesterday that OCBC is planning to acquire 49% of KAF’s equities brokerage unit for 1.3 to 1.4 times book value, and that the transaction will be completed in early 2012, quoting unnamed sources.

Last week, United Overseas Bank (UOB), Singapore’s third largest banking group, entered into an agreement to acquire Innosabah Securities Bhd from Kretam Holdings Bhd for RM56.68 million.







Government-linked property developer UEM Land closed three sen or 1.3% higher at RM2.28, on high volume of 16.71 million shares. This came a day after the stock was included as one of the constituents of the 30-stock FBM KLCI on Monday. As the only pure property developer on the KLCI, analysts said the status may attract investors looking for exposure to Malaysia’s property sector, and in particular Iskandar Malaysia.

In a recent report, Maybank-Kim Eng said the group will likely win more government land deals such as the Rubber Research Institute of Malaysia (RRIM) land in Sungai Buloh, Selangor, the former Pudu jail land development project in Jalan Hang Tuah, as well as the former Unilever factory land in Bangsar, Kuala Lumpur.

Another stock which captured investor interest yesterday was JCY, which closed three sen higher at 91 sen per share, following a three sen gain on Monday. The stock was among the most actively traded with 34.1 million shares changing hands.

An article in The Edge weekly noted that JCY’s plant in Thailand had escaped the flooding that devastated the country’s industrial parks, and that the company is poised to benefit from higher prices of HDD components.

JCY managing director James Wong told The Edge that the price of HDD components has increased by 20% due to a shortage following the supply chain disruption in Thailand.

“Before the floods, the average selling price [ASP] of HDD had been falling around 2% to 3% every quarter. But the floods caused a shortage of HDDs, which pushed up ASP,” he said Wong.


This article appeared in The Edge Financial Daily, December 21, 2011.



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Blue chips, improved sentiment lift KLCI

KUALA LUMPUR (Dec 21): The FBM KLCI closed on a firmer tone on Wednesday, tracking slightly improved global market sentiment after upbeat U.S. and German data and strong demand for Spanish debt.

The 30-stock index rose 19.81 points to close at 1,484.98, lifted by gains at blue chips.

Gainers led losers by 405 to 307, while 336 counters traded unchanged. Volume was 1.65 billion shares valued at RM1.32 billion.

At the regional markets, Japan’s Nikkei 225 added 1.48% to 8,459.98, Hong Kong’s Hang Seng Index rose 1.86% to 18,416.45, Taiwan’s Taiex surged 4.56% to 6,966.48, South Korea’s Kospi rose 3.09% to 1,848.41 and Singapore’s Straits Times Index was up 2.25% to 2,673.32.

Meanwhile, the Shanghai Composite Index reversed its earlier gains and fell 1.12% to 2,191.15.

On Bursa Malaysia, gainers included Genting that rose 26 sen to RM10.62, KAF and HLFG up 24 sen each to RM1.72 and RM11.66, Tenaga 22 sen to RM5.72, BHIC 21 sen to RM3.39, Public Bank and AMMB 20 sen each to RM13.20 and RM5.90, RHB Capital 19 sen to RM7.01 and WCT 18 sen to RM2.29.

Among the decliners, MPI and Batu Kawan lost 14 sen each to RM2.59 and RM17.06, Nestle, Tahps, JT International and Tradewinds fell 12 sen each to RM56.18, RM4.28, RM6.88 and RM9.82, while Focus Point and IGB lost 11 sen each to 28.5 sen and RM2.31.

Meanwhile, the actives included TMS, Utopia, Hibiscus, Hirotako, Sanichi, Maxbiz and Vastalux.



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Asian markets stay in the black but pare down some gains

KUALA LUMPUR (Dec 21): Asian markets stayed in the black on Wednesday on upbeat mood as China and Taiwan upped the ante to support their respective stock markets, while encouraging US and German data and strong demand for Spanish debt tempered risk-aversion.

However, some of the indices pared down their gains as Japan exports fell at their fastest annual pace in six months in November as a strong yen, the Eurozone debt crisis and a slowdown in emerging economies weighed on overseas demand.

The FBM KLCI was up 16.14 points to 1,481.31 at the mid-day break, lifted by gains including at Genting and banking stocks.

Gainers led losers by 361 to 226, while 308 counters traded unchanged. Volume was 824.31 million shares valued at RM535.75 million.

The ringgit strengthened 0.40% to 3.1684 versus the US dollar; crude palm oil futures for the third month delivery rose RM18 per tonne to RM3,038, crude oil added 50 cents to US$97.74 and gold gained US$8.22 an ounce to US$1,624.13.

At the regional markets, Japan’s Nikkei was up 1.28% to 8,443.56, Hong Kong’s Hong Seng Index added 1.6% to 18,368.66, the Shanghai Composite Index edged up 0.24% to 2,221.14, Taiwan’s Taiex jumped 4.23% to 6,944.65, South Korea’s Kospi gained 3.10% to 1,848.56 and Singapore’s Straits Times Index was up 1.52% to 2,654.17.

On Bursa Malaysia, PPB and Genting rose 28 sen each to RM16.98 and RM10.64, BAT up 24 sen to RM48.24, KAF 23 sen to RM1.71, HLFG 20 sen to RM11.62, Public Bank 16 sen to RM13.16, Fima Corp and AMMB 15 sen each to RM5.90 and RM5.85, while F&N was up 14 sen to RM18.08.

Among the decliners, Batu Kawan fell 20 sen to RM17, JT International 14 sen to RM6.86, MPI 11 sen to RM2.62, Nestle 10 sen to RM56.20, Uzma and IGB nine sen each to RM1.61 and RM2.33, Ho Hup 6.5 sen to 62.5 sen and Vastalux 6.5 sen to 2 sen.

The actives included Utopia, TMS, Maxbiz, JCY, Vastalux, Focus and Nova MSC.



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OCBC said to buy into KAF-Seagroatt

Oversea-Chinese Banking Corp, Southeast Asia’s second-largest lender by assets, plans to buy a stake in the brokerage business of Malaysia’s KAF-Seagroatt & Campbell Bhd, a person with knowledge of the matter said.

Singapore-based OCBC aims to acquire 49 percent of the equities brokerage unit at a price equivalent to 1.3 to 1.4 times book value, said the person, who declined to be identified as the information is private. OCBC expects to complete talks with KAF-Seagroatt, which have been going on for more than a year, early in 2012, the person said.

The offer would follow UOB Kay-Hian Holdings Ltd’s purchase last week of Malaysian broker Innosabah Securities Bhd from Kretam Holdings Berhad. UOB Kay-Hian, a unit of Singapore- based United Overseas Bank Ltd, paid RM56.7 million for Innosabah, according to a stock exchange announcement.

KAF-Seagroatt jumped 11 percent at 3:28 p.m. local time in Kuala Lumpur trading, giving the company a market value of RM176 million. The Edge Financial Daily earlier reported that a Singapore bank is interested in buying the company’s broking business, without naming the suitor.

OCBC had no comment on the planned acquisition. KAF-Seagroatt Chairman Ahmad Kadis couldn’t be reached for comment today at his office. -- Bloomberg



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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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KAF-Seagroatt up on Singapore bank interest

KAF-Seagroatt & Campbell Bhd, a Malaysian stock brokerage, rose to the highest level in more than a month in Kuala Lumpur trading after the Edge Financial Daily reported that a Singapore bank is keen on buying its stockbroking business.

The stock gained 3.8 percent to RM1.38 at 9:03 a.m. local time, set for its highest close since Nov. 9. -- Bloomberg



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