Limited gains for KLCI

KUALA LUMPUR (May 10): The FBM KLCI reversed its earlier losses and closed higher on Thursday, but the gains were limited in line with the mixed regional markets still weighed by concerns the global economic outlook.

The FBM KLCI rsoe 3.16 points to close at 1,588.06. It had earlier risen to its intra-day high of 1,590.20.

Gainers edged losers by 376 to 358, while 325 counters traded unchanged. Volume was 1.4 billion shares valued at RM1.39 billion.

Asian shares were mixed, as weak Chinese trade data stoked fears of a growth slowdown, further undermining risk appetites already reduced by worries about the health of Spanish banks and deepening political chaos in Greece, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index fell 0.51% to 20,227.28, Japan’s Nikkei 225 lost 0.39% to 9,009.65, South Korea’s Kospi was down 0.27% to 1,944.93

Meanwhile, the Shanghai Composite Index added 0.07% to 2,410.23 and Taiwan’s Taiex gained 0.11% to 7,484.01, and Singapore’s Straits Times Index edged up 0.09% to 2,903.60.

On Bursa Malaysia, United PLANTATION []s was the top gainer and added 56 sen to RM26.50, Petronas Gas up 30 sen to RM17.28, Ajinomoto 27 sen to RM4.50, Southern Acids and Aeon Credit gained 24 sen each to RM2.45 and RM11.10, Tradewinds Plantations 12 sen to RM5.89, Hup Seng and AirAsia 11 sen each to RM2.36 and RM3.65, while KrisAssets added 10 sen to RM7.10.

Focus was the most actively traded counter with 146.46 million shares done. The stock gained 1.5 sen to 16 sen.

Other actives included Utopia, Ariantec, Permaju, Naim indah Corp, ManagePay, Astral Supreme and HWGB.

Decliners included BAT, The Store, Panasonic, Tahps, KLK, Aeon, Lafarge Malayan Cement, Dutch Lady, PPB and KESM.



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KLCI pares down gains at mid-day as Asian equities turn negative

KUALA LUMPUR (May 10): The FBM KLCI rebounded at the mid-day break on Thursday but pared down its gains as some regional markets turned negative.

Asian shares fell on Thursday, as a weak Chinese trade data stoked fears of a growth slowdown, further undermining risk appetites already reduced by worries about the health of Spanish banks and deepening political chaos in Greece, according to Reuters.

The FBM KLCI gained 3.51 points to 1,588.41 at the mid-day break, lifted by select blue chips. It had earlier risen to its intra-morning high of 1,590.20.

Losers edged gainers by 332 to 256, while 309 counters traded unchanged. Volume was 722.32 million shares valued at RM493.12 million.

The ringgit strengthened 0.11% to 3.0681 versus the greenback; crude palm oil futures for the third month delivery rose RM25 per tonne to RM3,349, crude oil fell 37 cents per barrel tp US$96.44 while gold rose US$4.18 an ounce to US$1,593.75.

At the regional markets, Japan’s Nikkei 225 fell 0.11% to 9,035.48, Hong Kong’s Hang Seng Index lost 0.93% to 20,141.90, the Shanghai Composite Index shed 0.18% to 2,404.15, Taiwan’s Taiex was down 0.16% to 7,487.42, South Korea’s Kospi down 0.10% to 1,948.35 and Singapore’s Straits Times Index fell 0.20% to 2,895.11.

ON Bursa Malaysia, BAT was the top gainer in the morning session and rose 36 sen to RM54.74, Petronas Gas added 30 sen to RM17.28, United PLANTATION []s and Ajinomoto were up 24 sen each to RM26.18 and RM4.47, Petronas Dagangan 16 sen to RM19.86, KrisAssets 12 sen to RM7.12, whiel Hup Seng, RHB Capital and GAB added 10 sen each to RM2.35, RM7.43 and RM13.64.

Focus was the most actively traded counter with 103.8 million shares done. The stock rose two sen to 16.5 sen.

Other actives included Utopia, Ariantec, ManagePay, Naim indah Corp, Astral Supreme, SuperComNet and Permaju.

Decliners included Tahps, The Store, Tradewinds, Panasonic, Dutch Lady, Ekovest, Shell, PPB, KESM and Fiamma.



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KLCI claws back to close higher

KUALA LUMPUR (APRIL 26): The FBM KLCI clawed back to reverse its losses and close higher on Thursday in line with the advance at most key regional markets, on the back of the firmer overnight close at Wall Street and encouraging statements on policy from the US Federal Reserve.

The FBM KLCI rose 0.34 of a point to 1,579.69 at 5pm, clawing back from its intra-day low of 1,577.71.

Market breadth remained weak with 453 losers, 253 gainers and 321 counters trading unchanged. Volume was 1.45 billion shares valued at RM1.46 billion.

Asian shares rose on Thursday, retaining positive momentum as the Federal Reserve reassured markets it would keep its very accommodative stance to support growth, while optimism grew over strong quarterly corporate earnings.

Investor confidence was also boosted by a rally in Apple Inc shares as it reported quarterly profits nearly doubling on the back of soaring iPhone sales in China, lifting tech-heavy Asian markets such as Taiwan and South Korea earlier in the day.

There was scepticism Asian markets would climb as much as their global counterparts did overnight, however, as concerns remain over European banks, with Spain's Santander reporting its first-quarter results later in the session, it said.

At the regional markets, the Hong Kong’s hang Seng Index gained 0.79% to 20,809.71, Japan’s Nikkei 225 edged up 0.01% to 9,561.83, south Korea’s Kospi rose 0.10% to 1,964.04 and Singapore’s Straits Times Index

Meanwhile, Taiwan’s taiex fell 0.55% to 7,521.35 and the Shanghai Composite Index shed 0.09% to 2,40470.

On Bursa Malaysia, United PLANTATION []s led the gainers and was up 44 sen to RM25.94, Panasonic added 40 sen to RM23, BAT up 38 sen to RM55.50, Dutch Lady added 20 sen to RM33.90. Milux 15 sen to RM1.35, KrisAssets and Tradewinds Plantations up 14 sen each to RM6.90 and RM5.70, while Takaful and KPJ Healthcare rose 13 sen each to RM3.80 and RM5.56.

Utopia was the most actively traded counter with 194.51 million shares done. The stock fell half a sen to 9 sen.

Other actives included Ariantec, Metronic, Focus, Naim Indah Corp, SCL, Astral Supreme and ManagePay.

Decliners included Country View, Jaya Tiasa, HLFG, SapuraCrest, Petronas Dagangan, Genting, Kencana, SEGi and Sunway.



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KLCI falls in tandem with regional markets

KUALA LUMPUR (April 9): A slew of negative external developments weighed down investor sentiment at the local bourse, and the FBM KLCI closed in the red on Monday.

Asian shares fell on Monday as a sharp slowdown in U.S. jobs growth raised concerns about the strength of the world's largest economy, prompting investors to curb risk exposure ahead of more U.S. data and earnings as well as figures from China this week, according to Reuters.

China stocks fell 0.9 percent on Monday, led by property firms, after data showed the inflation rate rose more than expected last month, prompting speculation that Beijing may delay further easing of monetary policy, it said.

The FBM KLCI closed 7.59 points lower at 1,591.28.

Market breadth was negative with 468 losers, 238 gainers and 322 counters trading unchanged. Volume was 1.08 billion shares valued at RM1.08 billion.

At the regional markets, Japan’s Nikkei 225 fell 1.47% to 9.546.26, the Shanghai Composite index was down 0.90% to 2,285.78, south Korea’a Kospi fell 1.57% to 1,997.08, Taiwan’s Taiex was fell 1.27% to 7,600.87 and Singapore’ Straits Times Index shed 0.87% to 2,960.10.

On Bursa Malaysia, BAT was the top loser and fell 74 sen to RM54.72, KrisAssets down 21 sen to RM6.67, BLD PLANTATION []s and Toyo Ink fell 20 sen each to RM9.20 and RM1.47, Panasonic and Petronas Dagangan down 18 sen each to RM21.70 and RM18.66, TDM and KLK lost 14 sen each to RM4.81 and RM24.50, while GAB and Petronas Gas were down 12 sen each to RM12.96 and RM16.66.

Naim Indah Corp was the most actively traded counter with 113.6 million shares done. The stock fell four sen to 53 sen.

Other actives included Metronic, DVM, EITA, Managed Pay, SuperComNet, Tiger Synergy and Focus.

Gainers included Aeon, SMPC, Milux, Kluang, Hong Leong Industries, Nationwide, Tanjung Offshore, Parkson, UMS and Nestle.



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KLCI edges lower at mid-morning as regional markets dip

KUALA LUMPUR (March 29): the FBM KLCI edged lower on Thursday in line with the weaker sentiment at key regional markets, following the sharp decline at the Shanghai Composite Index a day earlier.

Asian shares eased for a second day in a row on Thursday, as investors limited their risk exposures on concerns about growth prospects in the world's two largest economies, the United States and China, according to Reuters.

Commodity related assets were likely to be on the defensive after oil and copper fell the previous day, while a sharp decline in Chinese shares will weigh on the Australian dollar, as China is Australia's single largest export market, it said.

The FBM KLCI was down 0.29 of a point to 1,583.46 at 10am. Gainers trailed losers by 143 ti 208, while 238 counters traded unchanged. Volume was 356.91 million shares valued at RN160.94 million.

At the regional markets, Japan’s Nikkei fell 0.88% to 10,093.20, Hong Kong’Hang Seng Index lost 1.13% to 20,649.60, the Shanghai Composite Index shed 0.75% to 2,267.81, Taiwan’s taiex lost 1.83% to 7,890.95, South Korea’s Kospi fell 1.26% to 2,006.14 and Singapore’s Straits Times Index fell 0.54% to 2,999.55.

BIMB Securities Research in a note March 29 said equity markets ended lower (on March 28) amid a directionless trading day.

With no new developments, traders revisited “old” concerns of slowing global economy to justify their selling on oil and commodities related stocks, it said.

“As a consequence, the Dow Jones Industrial Average dipped almost 72 points to 13,126. Reflecting the less than optimistic sentiments, European bourses also succumbed to the selling pressure and closed yesterday’s session broadly lower,” it said.

The research house said Asian equities followed suit with only a handful managed to close on a positive territory.

Taking cue from a weaker regional performance, the FBM KLCI lost 4 points to just below the immediate 1,585 support at 1,583.75, it said.

“Meanwhile, we again saw a net foreign participation of RM132 million yesterday pushing year-to-date total to RM4.67billion.

“Although the amount is not huge, foreign funds have been trickling in continuously for the month of March with a cumulative amount of a whopping RM2.8 billion. We expect some market weakness today with the immediate support at 1,580,” it said.

On Bursa Malaysia, GAB was the top loser at mid-morning and fell 16 sen to RM13.08, BLD PLANTATION []s down 15 sen to RM9.25, RHB Capital nine sen to RM&.81, Hong Leong Bank, Panasonic and Tenaga fell eight sen each to RM12.14, RM21.92 and RM6.34 respectively, SBC Corp seven sen to 91 sen, while Nestle, KrisAssets and HLFG fell six sen each to RM55.90, RM6.94 and RM12.22 respectively.

Naim Indah Corp was the most actively traded counter wit h 47.23 million shares done. The stock rose 1.5 sen to 49.5 sen.

Other actives included SuperComnet, Ariantec, metronic, Iris Corp, Key West, Hubline warrants and Bintai.

Gainers included Dutch Lady, BAT, Toyo Ink, shell, Crescendo, MUH, Southern acids, UAC and MISC.



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Market down, weighed by big cap plantations, Greece worries, high oil prices

KUALA LUMPUR (Feb 22): Big cap PLANTATION [] stocks weighed on the 30-stock FBM KLCI in the morning session on Wednesday, with PPB emerging as the top loser.

At 12.30pm, the FBM KLCI was down 2.46 points to 1,561.32. Turnover was 1.15 billion shares valued at RM744.330 million, reflecting the lower quality of trading with interest seen in lower liners and penny stocks. There were 283 gainers, 450 losers and 287 stocks unchanged.

The broader market was cautious as investors were still nervous about Greece’s ability to stick to the austerity plan. High crude oil prices also posed another major concern, with Brent crude for April at US$121.21 a barrel and US crude for April at US$105.80 a barrel.

Regional markets were mostly higher with Japan’s Nikkei 225 up 0.77% to 9,536.34, Shanghai’s Composite Index added 0.45% to 2,392.16, Taiwan’s Taiex 0.92% to 7,994.53, South Korea’s Kospi 0.04% to 2,025.01. However, Hong Kong’s Hang Seng Index fell 0.8% to 21,460.90 and Singapore’s Straits Times Index 0.43% lower at 3,012.06.

Crude palm oil third-month futures rose RM13 to RM3,281 while the ringgit weakened to 3.0255 to the US dollar.

PPB fell 46 sen to RM17.18, dragging the 30-stock KLCI down 0.86 of a point , IOI Corp fell five sen to RM5.39, pushing the index down 0.76 of a points while KLK fell 30 sen to RM23.70, shaving 0.5 of a point of the index.

Batu Kawan shed 32 sen to RM18.60 and Genting Plantations 15 sen to RM9.25. However, Chin Tek rose 24 sen to RM8.90 and Far East added 12 sen to RM7.40.

PPB’s 18.3% associate Wilmar International Ltd -- the world's largest listed palm oil firm -- reported fourth-quarter profit that missed analysts’ estimates.

BAT was the top loser, down 70 sen to RM52.30, Harrison 52 sen to RM3.18, Fima Corp 43 sen to RM6.32 and YTL Cement 26 sen to RM4.54. Loss-making Perwaja fell 14 sen to 77 sen.

Among the gainers were Dutch Lady, up 40 sen to RM25.80, RHB Cap 30 sen sen to RM7.85, Kris Assets 17 sen to RM6.60, F&N 16 sen to RM18, Hartalega 13 sen to RM7.89 and Genting 10 sen to RM10.84.



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Stocks to watch: AFG, Maybank, Tradewinds Plant, KrisAssets

KUALA LUMPUR (Feb 22): With the corporate results season for the October-December in full swing until Feb 29, they will provide the leads for investors.

So far the banks and PLANTATION []s have been reporting firm set of earnings, based on the recent results, though there had been some writebacks.

Among the stocks to watch are ALLIANCE FINANCIAL GROUP BHD [] (AFG), MALAYAN BANKING BHD [], Tradewinds Plantations Bhd and TH PLANTATIONS BHD [].

Also in focus could be QL RESOURCES BHD [], KRISASSETS HOLDINGS BHD [], Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE), Malaysia Airports Holdings Bhd (MAHB), TEBRAU TEGUH BHD [] and ENG TEKNOLOGI HOLDINGS BHD [].

AFG posted net profit of RM121.29 million in the third quarter ended Dec 31, 2011, up 9% from the RM111.26 million, underpinned by growth in interest income due to the expansion in loans.

Its revenue increased by 9.2% to RM311.43 million from RM284.98 million. Earnings per share were 7.90 sen compared with 7.30 sen.

AFG said for the nine months ended Dec 31, 2011, the earnings rose 14.6% to RM371.80 million from RM324.27 million while it recorded a 9% increase in revenue of RM935.80 million from RM858.18 million.

Maybank has proposed to establish a subordinated programme of up to RM7 billion in nominal value. The net proceeds from the issuance of the subordinated notes will be utilised to fund Maybank’s working capital, general banking and other corporate purposes.

Tradewinds Plantations’ earnings increased 17.5% to RM97.75 million in the fourth quarter ended Dec 31, 2011 from RM83.33 million a year ago, boosted by an increase in its palm products production.

Its revenue soared 174% to RM804.23 million from RM293.45 million.

For the year ended Dec 31, 2011, its net profit increased 79.9% to RM335.46 million from RM186.40 million. Revenue rose 86.8% to RM1.70 billion from RM909.13 million.

TH Plantations recorded a 11.3% fall in profits to RM37.71 million in the fourth quarter ended Dec 31, 2011 from RM42.52 million a year ago, due to maintenance carried out during the quarter.

Its revenue increased by 1.99% to RM130.09 million from RM128.53 million. It proposed dividend per share of 12.50 sen.

For the year ended Dec 31, 2011, net profit increased 39.5% to RM124.83 million from RM89.48 million. Revenue rose 18.8% to RM434.86 million to RM365.97 million.

QL Resources' net profit increased by 3.8% to RM34.42 million in the fourth quarter ended Dec 31, 2011 from RM33.14 million a year ago, due to increased sales in its marine product manufacturing arm, palm oil activities and livestock farming. Its revenue increased 10.6% to RM498.96 million from RM450.95 million a year ago.

KrisAssets said the market value of its two malls -- Mid Valley Megamall and The Gardens Mall in Kuala Lumpur – have been revalued at RM3.290 billion as at Dec 31, 2011. It said this was RM470 million above the valuation as at Sept 30 of RM2.82 billion.

MMHE’s earnings fell 65.4% to RM46.35 million in the third quarter ended Dec 31, 2011 from RM134.15 million a year ago. Its revenue declined 45.6% to RM716.15 million from RM1.316 billion a year ago.

For the nine months, its earnings fell 36.1% to RM205.60 million from RM322.11 million in the previous corresponding period. Its revenue declined 39.1% to RM2.137 billion from RM3.512 billion.

MAHB’s earnings were just up 0.8% to RM122.88 million in the fourth quarter ended Dec 31, 2011 from RM121.91 million a year ago. Its revenue increased by 2% to RM837.38 million from RM820.60 million.

For the financial year ended Dec 31, 2011, its earnings rose 26.6% to RM401.11 million from RM316.78 million. Its revenue increased 11.6% to RM2.754 billion from RM2.468 billion.

Tebrau Teguh reported net losses of RM1.13 million for the fourth quarter ended Dec 31, 2011 due to higher operating expenses. It was also in the red with net loss of RM212,000 a year ago.

For FY11, it was still profitable, with net profit of RM2.58 million, down by 29% from RM3.63 million in FY10. Revenue fell 37.3% to RM113.41 million from RM180.97 million.

Eng Teknologi was in the red for the fourth quarter ended Dec 31, 2011 and for the financial year with net losses of RM51.81 million, and RM42.90 million. The manufacturer of components for hard disk drives said it wasimpacted by the severe floods in Thailand last year.



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KrisAssets: Market value of malls at RM3.29b, up RM470m from Sept 30 valuation

KUALA LUMPUR (Feb 21): KRISASSETS HOLDINGS BHD [] said the market value of its two malls -- Mid Valley Megamall and The Gardens Mall in Kuala Lumpur – have been revalued at RM3.290 billion as at Dec 31, 2011.

It said on Tuesday, this was RM470 million above the valuation as at Sept 30 of RM2.82 billion.

“The revaluation was carried out by independent professional valuers, Jordan Lee & Jaafar Sdn Bhd to ascertain the current market value of Mid Valley Megamall and The Gardens Mall for accounting purposes in line with Financial Reporting Standard 140 on investment PROPERTIES [],” it said.

KrisAssets said the market value of Mid Valley Megamall was RM2.36 billion, 18% higher compared with the Sept 30 valuation of RM2 billion.

The market value of The Gardens Mall was RM930 million, 13.41% higher compared with the Sept 30 valuation of RM820 million.

“The net surplus of RM352.5 million (deferred tax at 25%) are recognised in the statement of comprehensive income of KrisAssets group for the financial period ended Dec 31, 2011 under the fair value model in line with the policy.

“Based on the ordinary share capital including treasury shares as at Dec 31, 2011, the consolidated net assets per share of KrisAssets is RM4.50 per share,” it said.



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Banks, blue chips weigh KLCI down at mid-morning

KUALA LUMPUR (Jan 3): The FBM KLCI bucked the regional trend and retreated on the first trading day of 2012, and slipped 8.62 points to 1,522.11 at mid-morning, weighed by banking and select blue chip stocks.

Gainers led losers by 223 to 160, while 212 counters traded unchanged. Volume was 325.47 million shares valued at RM182.34 million.

At the regional markets, Hong Kong’s Hang Seng Index jumped 1.7% to 18,747.83, South Korea’s Kospi rose 1.97% to 1,862.38, Taiwan’s Taiex added 1.4% to 7,049.28 while Singapore’s Straits Times Index gained 0.62% to 2,662.78.

The China and Japan markets are closed today for holidays.

OSK Research director Chris Eng in his January outlook report said the research house’s expectation of a December rally proved correct as the FBM KLCI raced up in the final trading week of 2011 to end at 1530.73 points, less than 3 points shy of its 2011 year-end target.

“We stand by our earlier strategy that investors should “Remain Defensive, Sell” when KLCI breaks above 1,500 pts, and Buy as the index approaches 1,300 points”.

“As such, we have a Sell call on the market for January,” he said.

Eng said the KLCI was overpriced and lacking fundamentals to sustain at this level.

“With 3 of our 5 Top Dec buys having outperformed the KLCI, we are switching to the more unconventional small cap buys for January given our broader market Sell call.

Among the decliners at mid-morning, Public Bank fell 22 sen to RM13.16, CIMB 17 sen to RM7.27, while Maybank and RHB Capital lost 13 sen each to RM8.45 and RM7.35.

Other losers included Nestle that fell 20 sen to RM56, BAT 16 sen to RM49.76, KrisAssets 15 sen to RM6.10, Batu Kawan 14 sen to RM17.32, while Ewein and Lafarge Malayan Cement fell 10 sen each to 80 sen and RM6.90.

Allianz led the gainers and was up 60 sen to RM5.35; United PLANTATION []s gained 20 sen to RM19.20, Aeon 16 sen to RM7.40, Hibiscus 12.5 sen to RM1.07, Proton 12 sen to RM4.94, Supermax and Tradewinds Plantations 11 sen each to RM3.94 and RM4.45, while MAHB, Malayan Flour Mills and KLK added 10 sen each to RM5.90, RM7.30 and RM22.80 respectively.

The actives included Hibiscus, JCY, IRCB, Proton, Sanichi and TMS.



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KLCI stays in the red at mid-day, struggles to breach 1,500-level

KUALA LUMPUR (Dec 28): Asian stocks retreated on Wednesday as investor sentiment remained weighed by the looming euro zone debt crisis, while a survey showed that confidence among South Korea's largest companies fell to its lowest in four months in January.

The FBM KLCI was down 2.32 points to 1,498.59 at the mid-day break, weighed by select blue chips.

Gainers trailed losers by 227 to 316, while 278 counters traded unchanged. Volume was 558.51 million shares valued at RM332.21 million.

The ringgit weakened 0.14% to 3.1720 versus the US dollar; crude palm oil futures for the third month delivery rose RM32 per tonne to RM3,191, crude oil gained two cents per barrel to US$101.36 while gold fell US$6.22 an ounce to US$1,587.00.

Asian shares eased on Wednesday in low volume with many market players away for year-end holidays, while oil kept gains from the previous day on concerns about possible supply disruptions after Iran threatened to stop the flow of oil from the Gulf, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index fell 0.67% to 18,503.67, South Korea’s Kospi lost 1.13% to 1,821.14, the Shanghai Composite Index fell 0.66% to 2,151.97, Singapore’s Straits Times Index lost 0.30% to 2,665.58, Taiwan’s Taiex shed 0.11% to 7,077.15 while Japan’s Nikkei 225 was flat at 8,440.65.

On Bursa Malaysia, losers included Warisan that fell 38 sen to RM2.41, Batu Kawan down 18 sen to RM17.32, Top Glove and Guan Chong lost 11 sen each to RM4.38 and RM1.98, Nestle, Kluang and HLFG fell 10 sen each to RM56.70, RM2.60 and RM11.70 respectively, while Lafarge Malayan Cement, Harvest Court and UMW fell nine sen each to RM6.81, RM1.01 and RM6.89 respectively.

Among the gainers, Petronas Gas added 40 sen to RM14.80, BAT 30 sen to RM49.30, United PLANTATION []s 20 sen to RM18.80, DKSH 16 sen to RM1.54, KrisAssets up 13 sen to RM6.05, Hup Seng and GAB up 10 sen each to RM1.80 and RM13.30, Tan Chong gained eight sen to RM4.12 and Kwantas was up six sen to RM2.04.

The actives included Utopia, Proton, JCY, MBF Holdings warrants and Vastalux.



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KLCI stays in the red at mid-day, struggles to breach 1,500-level

KUALA LUMPUR (Dec 28): Asian stocks retreated on Wednesday as investor sentiment remained weighed by the looming euro zone debt crisis, while a survey showed that confidence among South Korea's largest companies fell to its lowest in four months in January.

The FBM KLCI was down 2.32 points to 1,498.59 at the mid-day break, weighed by select blue chips.

Gainers trailed losers by 227 to 316, while 278 counters traded unchanged. Volume was 558.51 million shares valued at RM332.21 million.

The ringgit weakened 0.14% to 3.1720 versus the US dollar; crude palm oil futures for the third month delivery rose RM32 per tonne to RM3,191, crude oil gained two cents per barrel to US$101.36 while gold fell US$6.22 an ounce to US$1,587.00.

Asian shares eased on Wednesday in low volume with many market players away for year-end holidays, while oil kept gains from the previous day on concerns about possible supply disruptions after Iran threatened to stop the flow of oil from the Gulf, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index fell 0.67% to 18,503.67, South Korea’s Kospi lost 1.13% to 1,821.14, the Shanghai Composite Index fell 0.66% to 2,151.97, Singapore’s Straits Times Index lost 0.30% to 2,665.58, Taiwan’s Taiex shed 0.11% to 7,077.15 while Japan’s Nikkei 225 was flat at 8,440.65.

On Bursa Malaysia, losers included Warisan that fell 38 sen to RM2.41, Batu Kawan down 18 sen to RM17.32, Top Glove and Guan Chong lost 11 sen each to RM4.38 and RM1.98, Nestle, Kluang and HLFG fell 10 sen each to RM56.70, RM2.60 and RM11.70 respectively, while Lafarge Malayan Cement, Harvest Court and UMW fell nine sen each to RM6.81, RM1.01 and RM6.89 respectively.

Among the gainers, Petronas Gas added 40 sen to RM14.80, BAT 30 sen to RM49.30, United PLANTATION []s 20 sen to RM18.80, DKSH 16 sen to RM1.54, KrisAssets up 13 sen to RM6.05, Hup Seng and GAB up 10 sen each to RM1.80 and RM13.30, Tan Chong gained eight sen to RM4.12 and Kwantas was up six sen to RM2.04.

The actives included Utopia, Proton, JCY, MBF Holdings warrants and Vastalux.



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N. Korean leader’s death rattles Asian mkts, but KLCI only slightly affected

KUALA LUMPUR (Dec 19): The death of North Korea’s leader Kim Jong-il that was announced by the reclusive republic’s state television on Monday rattled already jittery Asian markets worried over the eurozone debt crisis.

Seoul shares extended their fall to nearly 5% on Monday after North Korea's state television reported that North Korean leader Kim Jong-il had died on Saturday, according to Reuters.

Trading on Bursa Malaysia was also choppy with the FBM KLCI struggling to stay in positive territory. At the mid-day break, the FBM KLCI was down 0.93 point to 1,465.39. Market breadth was negative with 403 losers and 201 gainers, while 249 counters traded unchanged. Volume was 886.79 million shares valued at RM458.08 million.

The ringgit weakened 0.05% to 3.1793; crude palm oil futures for the third month delivery rose RM6 per tonne to RM2,990, crude oil shed 63 cents per barrel to US$92.90 and gold lost US$10.25 an ounce to US$1,588.70.

At the regional markets, South Korea’s Kospi fell 3.54% to 1,774.81, the Shanghai Composite Index lost 2.57% to 2,167.68, Hong Kong’s Hang Seng Index down 2.47% to 17,833.42, Taiwan’s Taiex lost 2.03% to 6,647.26, Singapore’s Straits Times Index fell 1.65% to 2,615.26 and Japan’s Nikkei 225 shed 1.12% to 8,307.81.

On Bursa Malaysia, Dutch Lady fell 78 sen to RM23.66, F&N lost 36 sen to RM18, Carlsberg 27 sen to RM8.39, KrisAssets and Batu Kawan fell 26 sen to RM5.62 and RM17.10, LPI Capital and GAB fell 20 sen each to RM13.20 each respectively, while JT International and United PLANTATION []s lost 16 sen each to RM6.78 and RM18.34.

Utopia was the most actively traded counter with 69.97 million shares done. The stock rose 1.5 sen to 11.5 sen.

Other actives included Wijaya, JCY, Versatile, Flonic, Kurnia Asia and Boustead.

Gainers at mid-day included Nestle, Amway, Petronas Gas, Boustead, Far East, NSOP, Gamuda, Perstima, KLK and Suiwah.



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KLCI closes higher but struggles to breach 1,470-level

KUALA LUMPUR (Dec 16): The FBM KLCI could not sustain much of its gains on Friday and struggled to breach the 1,470-point level on some mild profit taking ahead of the weekend.

The FBM KLCI edged up 2.11 points to close at 1,466.22. The index had earlier risen to its intra-day high of

Gainers led losers by 426 to 345, while 313 counters traded unchanged. Volume was 1.79 billion shares valued at RM1.33 billion.

World stocks rose on Friday after upbeat U.S. data and corporate results, while concerns over the European banking sector and nervousness about potential ratings downgrades in European sovereign debt underpinned German government bonds, according to Reuters.

Surprising resilience in the U.S. economy and corporate sector are underpinning investor appetite for risky assets into the year end, although trading is thinning out ahead of a holiday season, it said.

At the regional markets, the Shanghai Composite Index rose 2.02% to 2,224.84, Hong Kong’s Hang Seng Index added 1.43% to 18,285.39, South Korea’s Kospi up 1.15% to 1,839.96, Taiwan’s Taiex gained 0.30% to 6,785.09, Japan’s Nikkei 225 edged up 0.29% to 8,401.72 and Singapore’s Straits Times Index gained 0.91% to 2,659.22.

On Bursa Malaysia, PPB added 36 sen to RM16.76, KrisAssets was up 26 sen to RM5.88, Public Bank 22 sen to RM13.02, LPI Capital 20 sen to RM13.40, Warisan 19 sen to RM2.79, Orient and BHIC 17 sen each to RM5.31 and RM3.15, Tasek 16 sen to RM7.86 and Bintulu Port up 15 sen to RM6.85.

Among the losers, UMW fell 34 sen to RM6.50, Carlsberg down 33 sen to RM8.66, Southern Acids and Malayan Flour Mills lost 17 sen each to RM2.15 and RM7.50, while GAB, IOI Corp, Tan Chong and Panasonic lost 10 sen each to RM13.40, RM5.05, RM4.04 and RM19.94 respectively.

Meanwhile, the actives included Wijaya, Kurnia Asia, Proton, JCY, Envair, Astral Supreme, Dialog and Sanichi.



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KLCI edges up but Asian markets mired in red

KUALA LUMPUR (Dec 15): The FBM KLCI bucked the trend and edged up to close marginally higher on Thursday, but key regional markets mostly extended their losses amid fears that Europe's debt crisis continues to worsen.

But European markets opened slightly higher and bounced off a two-week closing low, lifted by some mild bargain hunting.

The FBM KLCI rose 0.99 point to close at 1,464.11.

Gainers trailed losers by 346 to 380, while 314 counters traded unchanged. Volume was 1.56 billion shares valued at RM1.25 billion.

At the regional markets, the Shanghai Composite Index lost 2.14% to 2,180.90, Taiwan’s Taiex fell 2.28% to 6,764.59, South Korea’s Kospi was down 2.08% to 1,819.11, Hong Kong’s Hang Seng Index lost 1.78% to 18,026.84, Japan’s Nikkei 225 fell 8,377.37 and Singapore’s Straits Times Index shed 1.39% to 2,635.25.

On Bursa Malaysia, QSR and KFCH were in focus on Johor Corporation’s plans to privatise the two companies. QSR rose 44 sen to RM6.44 while KFCH was up 39 sen to RM3.80.

Other gainers included Proton that rose 38 sen to RM4.55, UMW 34 sen to RM6.84, KrisAssets and GAB 32 sen each to RM5.62 and RM13.50, Kulim 28 sen to RM3.97, Jaya Tiasa 18 sen to RM6.91 and APM Automotive 17 sen to RM4.39.

Among the decliners, Dutch Lady lost RM1.30 to RM24.58, KLK 48 sen to RM22.12, Nestle 46 sen to RM56.02, Aeon 25 sen to RM7.15, Batu Kawan 20 sen to RM17.26, Bintulu Port 17 sen to RM6.70, MPI 16 sen to RM2.70, Hong Leong Industries 15 sen to RM3.95 while Hartalega was down 14 sen to RM5.61.

Meanwhile, the actives included JCY, Sanichi, QSR, KFC, Flonic and Proton.



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KLCI pares down loss at mid-day, but gloomy mood prevails

KUALA LUMPUR (Dec 15): The FBM KLCI pared down some of its losses at the mid-day break on Thursday, but the gloomy sentiment across the region remained on fears of a deepening eurozone debt crisis.

The FBM KLCI shed 4.15 points to 1,458.97 at 12.30pm, weighed by select blue chips. The index had earlier fallen to its intra-morning low of 1,448.54.

Losers led gainers by 368 to 211, while 283 counters traded unchanged. Volume was 733.86 million shares valued at RM510.67 million.

The ringgit weakened 0.39% to 3.1973 versus the US dollar; crude palm oil futures for the third month delivery fell RM50 per tonne to RM3,003, crude oil rose 76 cents per barrel to US$95.71 while gold added US$3 an ounce to US$1,577.05.

Asian shares fell into bear market territory for the year and commodities and the euro nursed stinging losses on Thursday, after fears that Europe's debt crisis is still worsening prompted investors to dump riskier assets and huddle in the safety of the dollar and Treasuries, according to Reuters.

The gloomy mood was not improved by a private sector survey indicating China's factory output shrinking again in December, adding to the headwinds facing a global economy struggling with sluggish US growth and the euro zone sliding back into recession, it said.

At the regional markets, Hong Kong’s Hang Seng Index lost 1.85% to 18,014.70, Japan’s Nikkei 225 fell 1.1% to 8,425.58, Taiwan’s Taiex Index was down 1.86% to 6,793.97, South Korea’s Kospi fell 1.99% to 1,820.74, South Korea’s Kospi lost 1.31% to 2,637.26 and the Shanghai Composite Index shed 1.11% to 2,203.84.

Among the losers this morning, Dutch Lady fell 98 sen to RM24.90, KLK was down 40 sen to RM22.20, HLFG and Nestle lost 28 sen each to RM11.38 and RM56.20, Hong Leong Bank 18 sen to RM10.50, Petronas Dagangan 16 sen to RM17.02, Orient 13 sen to RM5.11, BAT 12 sen to RM48.86 while Aeon and PPB fell 10 sen each to RM7.30 and RM16.30.

The gainers included QSR that added 43 sen to RM6.43, KFCH was up 41 sen to RM3.82, KrisAssets up 30 sen to RM5.60, Kulim 27 sen to RM3.96, Jaya Tiasa 25 sen to RM6.98, while Carlsberg and LPI Capital rose 14 sen each to RM8.97 and RM13.18.

The actives included Kulim and KFCH’s warrants, Flonic, Compugates, Boon Koon and Envair.



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KLCI stays in the red at mid-day as investors remain jittery

KUALA LUMPUR (Dec 8): The FBM KLCI stayed in negative territory at the mid-day break on Thursday, in line with most key regional markets as investors stayed undecided ahead of the European crunch summit over the weekend.

Asian shares fell on Thursday as doubts set in about whether European leaders can agree on a plan to tackle the euro zone's two-year-old debt crisis at a high-stakes summit on Friday, according to Reuters.

The FBM KLCI fell 10.28 points to 1,472.71 at the mid-day break.

Losers led gainers by 216 to 364, while 275 counters traded unchanged. Volume was 895.84 million shares valued at RM498.92 million.

The ringgit weakened 0.19% to 3.1316 versus the US dollar; crude palm oil futures for the third month delivery slipped RM3 per tonne to RM3,112, crude oil gained 13 cents per barrel to US$100.62 while gold shed US$3.57 an ounce to US$1,738.23.

At the regional markets, Japan’s Nikkei 225 was down 0.52% to 8,676.76, Hong Kong’s Hang Seng Index lost 0.67% to 19,111.64, Taiwan’s Taiex fell 1.17% to 6,950.81, Singapore’s Straits Times Index lost 1.59% to 2,738.25 and South Korea’s Kospi shed 0.28% to 1,914.00.

Meanwhile, the Shanghai Composite Index gained 0.42% to 2,342.42.

Among the losers on Bursa Malaysia, BAT fell 34 sen to RM47.66, JT International down 25 sen to RM6.55, KLK 22 sen to RM21.94, Hong Leong Bank and IJM Corp 20 sen each to RM10.54 and RM5.50, Axiata 17 sen to RM4.92, Uzma and CIMB 15 sen each to RM1.60 and RM7.05, while Allianz and KrisAssets lost 13 sen each to RM4.75 and RM5.25.

SAAG was the most actively traded counter with 64.4 million shares done. The stock was up half a sen to 7 sen.

Other actives included DVM, Sycal, iDimension, Timecom, Time and MUI Industries.

Among the gainers this morning were Nestle, BHIC, Boxpak, BLD PLANTATION []s, HLFG, Cycle & Carriage Bintang, Milux, Ajinomoto, PPB and Hwatai.



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Asian markets fall on doubts over European leaders’ summit outcome

KUALA LUMPUR (Dec 8): The FBM KLCI slipped on Thursday in line with the weaker overnight close at European bourses as well as Wall Street, following growing concerns over the eurozone debt crisis and doubts over whether a European policymakers’ summit this week would solve the financial woes there.

The FBM KLCI fell 10.62 points to 1,472.37 at 10am, weighed by losses at blue chip stocks.

Losers led gainers by 232 to 164, while 195 counters traded unchanged. Volume was 465.58 million shares valued at RM206.77 million.

Asian shares drifted lower as a report that the G20 was preparing a $600 billion lending facility for the International Monetary Fund (IMF) to help Europe was denied by G20 and IMF officials, according to Reuters.

Meanwhile, Standard & Poor's warned on Wednesday that it could cut the credit ratings of the European Union and large euro-zone banks if a mass downgrade of euro-zone countries materializes.

S&P had said on Monday it may downgrade nearly all 17 euro-zone countries if EU leaders fail to agree on a solution for the region's debt crisis during Friday's summit.

At the regional markets, Hong Kong’s Hang Seng Index lost 1.03% to 19,041.67, Japan’s Nikkei 225 fell 0.97% to 8,637.95, Taiwan’s Taiex was down 1.36% to 6,937.42, South Korea’s Kospi lost 0.69% to 1,906.23, Singapore’s Straits Times Index fell 0.68% to 1,472.90 and the Shanghai Composite Index shed 0.62% to 2,318.21.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Thursday said the FBM KLCI’s resistance areas of 1,484 and 1,503 may cap market gains, whilst the obvious support areas may be located at 1,465 and 1,482.

“Due to the US markets’ mixed tone last night, we might a quiet and benign day for the local index today,” he said.

Among the losers on Bursa Malaysia at mid-morning were BAT that fell 40 sen to RM47.60, JT International down 29 sen to RM6.51, IJM Corp 25 sen to RM5.45, KLK 24 sen to RM21.92, PPB and Hong Leong Bank down 20 sen each to RM16.20 and RM10.54, Uzma 15 sen to RM1.60, Allianz and KrisAssets down 13 sen each to RM4.75 and RM5.25, while Axiata lost 12 sen to RM4.97.

SAAG was the most actively traded counter with 60.5 million shares done. The stock added one sen to 7.5 sen.

Other actives include DVM, Sycal, Timecom, Time, MUI Industries and YGL.

Meanwhile, gainers included Nestle, United PLANTATION []s, BHIC, Proton, Dutch Lady, Tradewinds Plantations, Petrol-One, Boxpak and Eng Kah.



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KLCI reverses earlier losses to close higher

KUALA LUMPUR (Dec 7): The FBM KLCI reversed its earlier losses and closed higher on Wednesday, in line with the improving but still cautious sentiment at key regional markets.

The FBM KLCI rose 2.07 points to close at 1,482.99.

Gainers led losers by 445 to 304 while 306 counters traded unchanged. Volume was 2.09 billion shares valued at RM1.77 billion.

Growing optimism that euro zone leaders are on track to produce a confidence-boosting package of measures to solve the debt crisis at their weekend summit lifted risk appetite on Wednesday, with the euro and global equity markets posting gains, according to Reuters.

At the regional markets, Japan’s Nikkei 225 rose 1.71% to 8,722.17, Hong Kong’s Hang Seng Index up 1.58% to 19,240.58, Taiwan’s Taiex added 1.10% to 7,033.00, South Korea’s Kospi rose 0.87% to 1,919.42, the Shanghai Composite gained 0.29% to 2,332.73 and Singapore’s Straits Times Index rose 1.21% to 2,782.55.

On Bursa Malaysia, KLK was the top gainer and added 48 sen to RM22.16; Nestle rose 40 sen to RM53.60, JT International and KrisAssets were up 30 sen each to RM6.80 and RM5.38, Allianz 21 sen to RM4.88, Aeon 20 sen to RM7.40, Boxpak 18 sen to RM1.69 while Chin Teck, Dutch Lady and BHIC rose 16 sen each to RM8.56, RM22.26 and RM2.86 respectively.

Pavilion REIT, which made its debut on the Main Market of Bursa Malaysia, was the most actively traded counter with 197.3 million units done. The counter added 12 sen to RM1.02.

Other actives included Sanichi, LFE Corp, Utopia’s securities and Proton.

Among the decliners, Proton fell 27 sen to RM4.04, MAHB 24 sen to RM5.80, Tenaga 19 sen to RM5.46, UMW and RHB Capital 13 sen each to RM6.54 and RM7.13, Tradewinds PLANTATION []s 11 sen to RM4.40 while Tasek and LPI Capital fell 10 sen each to RM7.70 and RM13.



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Banks, blue chips lift KLCI by 1.03%

KUALA LUMPUR (Nov 24): The FBM KLCI rose 1.03% on Thursday, as most key regional markets staged a mild recovery on bargain hunting activities.

However, European shares pared gains in early trade on Thursday in a choppy session, with volumes expected to be light throughout the day as the U.S. markets are closed for the Thanksgiving holiday, according to Reuters.

The FBM KLCI jumped 14.82 points to 1,447.99, lifted by gains at banking and blue chip stocks.

Gainers led losers by 440 to 277, while 289 counters traded unchanged. Volume was 1.5 billion shares valued at RM1.08 billion.

At the regional markets, Hong Kong’s Hang Seng Index rose 0.40% to 17,935.10, Taiwan’s Taiex gained 0.85% to 6,864.39, South Korea’s Kospi added 0.67% to 1,795.06, the Shanghai Composite Index was up 0.10% to 2,397.55 and Singapore’s Straits Times Index edged up 0.02% to 2,677.15.

Meanwhile, Japan’s Nikkei 225 fell 1.8% to 8,165.18.

On Bursa Malaysia, HLFG rose 32 sen to RM11.32, CIMB up 11 sen to RM6.79, RHB Capital seven sen to RM7.49, AMMB five sen to RM5.56, Public Bank four sen to RM12.40 and Maybank rose two sen to RM8.19.

Other gainers included Telekom and Axiata that rose 22 sen each to RM4.44 and RM4.96, Genting 16 sen to RM10.28, Sime Darby 15 sen to RM8.88, Batu Kawan 32 sen to RM16.52, KrisAssets 28 sen to RM5.30, CI Holdings and Proton 23 sen each to 90 sen and RM3.18, while MAHB and Nestle gained 20 sen each to RM6.20 and RM50.60.

Among the decliners, BAT fell 26 sen to RM47.24, Dutch Lady 20 sen to RM23.40, Tahps 14 sen to RM4.16, Petrol One 13 sen to RM1.02, KNM 10 sen to RM1.02, while Magni and BRDB fell nine sen each to RM1.14 and RM2.11.

The actives included MBF Holdings warrants, Compugates, JCY, Sumatec, DPS Resources, Emico, Karambunai and KNM.



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KrisAssets rises on speculation of a REIT

KUALA LUMPUR: The mundane shopping mall operator KrisAssets Holdings Bhd came to life yesterday, rising by 40 sen to close at RM5, its highest in recent times.

The stock, which was the top performer in terms of share price appreciation, has surged 18.2% since Nov 1, a significant rise for the stock that has traded in the range of between RM4 and RM4.40 over the past six months.

KrisAssets announced its results for 3QFY11 ended September yesterday, recording a net profit of RM58.1 million from RM32.2 million a year earlier, an 80% rise. Its revenue also increased 8.8% to RM91 million from RM83.6 million. The company proposed a single-tier interim dividend of 7.5 sen per share for FY11.

The results aside, analysts noted that the surge in share price could be due to speculation of the establishment of a retail real estate investment trust (REIT) following the recent completion of its purchase of the The Gardens shopping mall in July from parent IGB Corp Bhd.

“KrisAssets’ current property asset is the 10-year-old Mid Valley Megamall. With the completion of the purchase of The Gardens, there is the possibility of a REIT being set up to take advantage of the tax benefits,” said an analyst.

To qualify as a REIT, a fund must have most of its assets and income tied to a portfolio of real estate. In Malaysia, a REIT is exempt from corporate tax if it distributes at least 90% of its total annual income, and unit holders enjoy a lower 10% withholding tax on distribution.


Another point favouring a REIT is that it is an asset class that is not affected by market sentiments as its share price is backed by assets.

The assets that KrisAssets holds, solely retail malls, command better demand due to higher returns.

“Compared to office spaces, retail REIT are supported by high occupancy rates and strong rental income. The local buying sentiment is also going strong at the moment,” the analyst said.

He added that the yields of the assets in KrisAssets of between 6% and 7% are comparable to other local REIT such as Sunway REIT, CapitaMalls Malaysia Trust REIT and the soon-to-be listed Pavillion REIT.

The analyst also noted that the retail space in Mid Valley Megamall and The Gardens recently saw an increase in rental income.

However, another analyst with AmResearch said a KrisAssets REIT might not take off so soon as it does not have enough funds to purchase the remaining assets from IGB Corp.

“IGB Corp’s remaining assets consisting of Mid Valley and The Gardens’ office towers have an estimated combined value of RM2 billion to RM3 billion. As such, we do not think a REIT will materialise just yet,” he said.

However, he does not discount a possible corporate exercise to raise funds for the acquisition of the other assets.

Speculation on the establishment of a KrisAssets REIT surfaced in February when KrisAssets agreed to buy the entire stake in The Gardens at an indicative price of RM820 million. To fund the acquisition, KrisAssets issued RM300 million in convertible secured bonds.

As at Sept 30, KrisAssets had RM72.8 million in cash and bank deposits. KrisAssets is 75.66% owned by IGB Corp.

On its 3QFY11 results yesterday, KrisAssets attributed the improved performance to higher rental income and lower property maintenance costs. The group also saw a recognition of revaluation surplus of RM25 million for Mid Valley Megamall.

“Excluding the fair value gain on investment property, the group recorded pre-tax profit of RM55.1 million, representing a 20.6% increase, compared with pre-tax profit of RM45.7 million in the corresponding quarter [last year],” it said.

For 9MFY11, KrisAssets’ net profit grew 27.6% to RM170.8 million, on the back of RM273.1 million in revenue.


This article appeared in The Edge Financial Daily, November 23, 2011.



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