HWDBSVR sees KLCI slipping below 1,580

KUALA LUMPUR (March 29): Hwang DBS Vickers Research said there is a possibility that the key FBM KLCI will slip below its immediate support line of 1,580 on Thursday.

In its market outlook on Thursday, it said if the KLCI falls below the 1,580, the index may be on its way to test the next support level of 1,555 in the near term.

This comes as Wall Street lost momentum overnight. Major U.S. stock indices were down 0.5% each amid disappointing economic data and falling crude oil prices.

Hoping to buck the weak market sentiment on our local bourse are two counters: (a) Gamuda after announcing stronger-than-expected quarterly profit yesterday evening; and (b) Bintai Kinden, as it would be involved (via a joint venture arrangement) in a electrical services and control systems job in Singapore’s MRT project valued at S$166 million.

Separately, two ACE Market companies will resume trading: (a) Key West Global, following its plan to venture into the oil & gas industry in Indonesia via the acquisition of convertible bonds for US$52.5m; and (b) Nextnation, which has proposed to acquire land in Cyberjaya for RM18.5 million, a bonus issue of one warrant for every 10 existing shares and a private placement exercise.



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Key West jointly acquires Indon outfit to venture into O&G sector

SHAH ALAM (March 28): ACE Market listed KEY WEST GLOBAL TELECOMMUNICATIONS BHD and Maryland International Offshore Ltd have acquired Manjung Niaga Sdn Bhd (MNSB) for US$52.5 million as part of the Key West's plan to position itself as an oil and gas player.

Key West executive director Stephen Ng said on Wednesday MNSB owns 95% of PT Formasi Sumatera Energi (PT FSE) which in turn owns a 15-year joint operational right to reactivate and optimise the production of petroleum resources in the Tanjung Tiga Timur field in South Sumatera, Indonesia.

Speaking after a signing ceremony between Key West and Maryland Offshore, he said the company plans to finance the deal via a new issuance of shares amounting US$24.5 million and US$28 million in cash.

The group, which initially was focused on the telecommunications industry, had recently disposed of its telco divisions and is now positioning itself as an oil and gas player.

"Based on the current oil price of US$125 per barrel, our latest venture will bring in revenue of more than RM3.485 million a month," Ng said.



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Trading in Key West shares suspended

KUALA LUMPUR (March 27): Trading in the shares of KEY WEST GLOBAL TELECOMM []unications Bhd will be suspended on Wednesday, March 28 for the signing of an agreement with Maryland International Offshore Ltd.

According to a circular from Bursa Malaysia Securities, the suspension would come into effect from 9am on Wednesday until further notice.

However, a statement issued by Key West said the suspension would come into effect from 9am to 5pm on Wednesday only.

On March 20, the board of directors of Key West told Bursa Malaysia that it was “in discussion with PT Formasi Sumatera Energi to further venture its oil and gas businesses in Indonesia”. However, as of that date, the terms were yet to be finalised.

In a separate statement, Key West announced that Wong Meng Tak has been appointed an independent director.

Wong is currently an independent director of D&O Green Technologies Bhd.



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CIMB Research has technical sell on Key West Global at 23.5 sen

KUALA LUMPUR (March 26): CIMB Equities Research has a technical sell on KEY WEST GLOBAL TELECOMM []unications at 23.5 sen.

It said on Monday the stock is trading in a rising wedge pattern, which is bearish in nature.

“We caution traders to be alert here. If the candles violate the wedge support trend line (now at RM0.23), the next downswing would likely drag prices back towards 21.5 sen and 20 sen,” it said.

CIMB Research said the MACD histogram bars are losing pace, suggesting that momentum is slowly weakening. RSI too has hooked downward.

“Traders should wait for a slip below 23 sen before joining the sellers’ camp. Put a buy stop at 25 sen,” it said.



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Key West gains, unaware of reverse takeover

Key West Global Telecommunications Bhd added 2.2 per cent to 23.5 sen in Kuala Lumpur trading at 9.37am, headed for its highest close since Jan. 8, 2010.

The telecommunications products and services provider has no knowledge of any reverse takeover plan by Indonesian tycoon Yanki Regan, it said in an exchange filing in response to a Business Times report. -- Bloomberg



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Market closes mixed on profit taking

KUALA LUMPUR (March 9): Share prices on Bursa Malaysia closed mixed on Friday as traders firmed their position ahead of the weekend, dealers said.

The FBM KLCI inched up 0.64 of a point to close at 1,579 after having moved between 1,577.23 and 1,582.Decliners led advancers by 388 to 369 while 344 counters closed unchanged.

A dealer said although strong interest from foreign investors was seen in the market, profit taking had offset earlier gains.

The Finance Index lost 12.46 points to 14,104, the INDUSTRIAL INDEX [] was down 7.11 points to 2,864.1 but the PLANTATION [] Index rose 16.6 points to 8,629.54.

The FBM Emas Index added 3.74 points to 10,899.05, FBM Ace Index was down 6.3 points to 4,660.87 and the FBMT100 added 2.18 points to 10,684.46.

Total volume amounted to 1.306 billion shares valued at RM1.367 billion compared with 1.769 billion shares valued at RM1.763 billion registered on Thursday.

Actively traded stocks included Naim Indah which added 1.5 sen to 64.5 sen, Lee Swee Kiat which increased three sen to 19.5 sen and Key West Global which gained 2.5 sen to 22 sen.

Sumatec lost half a sen to 28.5 sen and Sumatec-Warr shed one sen to 15.5 sen.

Among heavyweights, Maybank gained two sen to RM8.74, CIMB rose eight sen to RM7.34, Sime Darby and Petronas Chemicals earned one sen each to RM9.85 and RM6.84 respectively and Tenaga gathered 13 sen to RM6.39. - Bernama



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CIMB Research has technical buy on Keywest at 15.5 sen

KUALA LUMPUR (Feb 22): CIMB Equities Research has a technical buy on Keywest Global Telecommunicatons at 15.5 sen at which it is trading at a price-to-book value of 6.6 times.

It said on Wednesday that prices broke out of its consolidation triangle on Tuesday on rising volume.

“Prices appear to have built a base above its moving averages and the thrust from the ‘base’ means that the run is likely on firm footing,” it said.

CIMB Research said both MACD and RSI have hooked upward sharply, suggesting a pick up in momentum.

“Risk takers may choose to buy now with a stop placed below 13.5 sen. Resistance is seen around the 19 sen and 21.5 sen levels,” it said.



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