Tenaga, blue chips lift KLCI

KUALA LUMPUR (April 12): The FBM KLCI closed higher on Thursday, lifted by gains at blue chips including Tenaga, Genting PLANTATION []s and Petronas Dagangan.

The FBM KLCI gained 4.10 points to close at 1,601.27.

Losers edged gainers by 366 to 360, while 321 counters traded unchanged. Volume was 1.11 billion shares valued at RM1.60 billion.

At the regional markets, most of the bourses reversed earlier losses as the Shanghai Composite Index rose more than 1.8%.

Meanwhile, Hong Kong shares rose on Thursday lifted by the rally in mainland markets on the back of reports of proposals to boost economic development in Shenzen as well as optimism of easier monetary policy following GDP data due later in the week, according to Reuters.

The euro neared a one-week high against the dollar and European bond markets steadied on Thursday as investors awaited an Italian debt sale that will show whether concerns over Spain are spreading to other debt-laden euro zone nations, it said.

At the regional markets, the Shanghai Composite Index rose 1.82% to 2,350.86, Hong Kong’s Hang Seng Index added 0.93% to 20,327.32,Japan’s Nikkei 225 gained 0.70% to 9.524.79, Taiwan’s Taiex edged up 0.08% to 7,662.92, whiel South Korea’s Kospi fell 0.39% to 1,986.63.

On Bursa Malaysia, Jaya Tiasa was the top gainer and rose 44 sen to RM8.99, SMPC up 34 sen to RM1.48, Tradewinds Plantations gained 19 sen to RM5.90, Cybertowers and Sarawak Oil Palms up 16 sen each to 75 sen and RM6.88, Genting Plantations and Brahims 15 sen each to RM9.67 and RM1.33, while Tenaga, Bat and United Plantations rose 14 sen each to RM6.51, RM54.84 and RM24.90 respectively.

Among the decliners, Warisan fell 30 sen to RM2.20, GAB down 22 sen to RM12.64, KLK 18 sen to RM24.32, BLD Plantations 16 sen to RM9.23, Panasonic, Manulife, Top Glove and LPI down 12 sen each to RM21.50, RM3.25, RM4.20 and RM13.80 respectively, RHB Capital fell 11 sen to RM7.36 and Shangri-La lost 10 sen to RM2.98.

The actives included JCY, Tiger Synergy, Asia Bio, Metronic, Ariantec and CSL.



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LPI down 1.3% on weaker quarterly financials

KUALA LUMPUR (April 10) : LPI CAPITAL BHD [] shares fell as much as 1.3% on Tuesday morning after the general insurer reported weaker first quarter financials.

The stock, among the top decliners, was down 18 sen to an intraday low of RM13.70 before trading higher at RM13.90 at 11.36am.

LPI’s net profit fell 19% in the first quarter ended March 31, 2012 from a year earlier, as higher claims and operating expenses, besides lower investment income offset a higher revenue.

Net profit during the quarter came to RM31.48 million against RM38.63 million previously. Revenue rose 15% to RM246.06 million from RM213.33 million.



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Stocks to Watch LPI, Hong Leong, Guan Chong, Silk

KUALA LUMPUR (April 9): Malaysian shares could see further correction on Tuesday against a backdrop of less-optimistic global economic data. Crucial highlights include the still-weak job market in the US, besides China's inflation growth of 3.6% in March.

China's latest inflation numbers, which came in higher than street estimates, have prompted the anticipation that policymakers will delay monetary loosening to spur the world's second largest economy.

Analysts said Malaysia's FBM KLCI may see sideway consolidation with downward bias, due to global economic concerns.

"Domestically, any correction in the benchmark index is expected to be shallow, with domestic factors holding up the market until the dissolution of the parliament paves way for the next general election," TA Securities Holdings Bhd wrote in a note.

On Monday, the FBM KLCI fell 7.59 points to close at 1,591.28, while US equity futures declined on global economic growth concerns. The S&P 500 futures fell some 1% while the Dow Jones Industrial Average futures was down 0.9%, an indication that US stock markets could decline when markets open.

Stocks to watch on Tuesday include LPI CAPITAL BHD [], HONG LEONG BANK BHD [], GUAN CHONG BHD [], HUA YANG BHD [], Silk Holdings Bhd.

LPI's net profit fell 19% in the first quarter ended March 31, 2012 from a year earlier, as the general insurer's contractual liabilities, lower investment income, and higher operating expenses offset a higher revenue. In a statement to the exchange on Monday, LPI said its net profit during the quarter came to RM31.48 million against RM38.63 million previously. Revenue rose 15% to RM246.06 million from RM213.33 million .

The Securities Commission has approved Hong Leong's plan to issue up to US$1.5 billion (RM4.61 billion) worth of bonds to finance its working capital needs.

Cocoa processor Guan Chong plans to undertake a secondary listing on the Singapore bourse. The firm also plans to reward shareholders with a bonus issue of new shares.

TA Securities has upgraded Hua Yang, a property developer, to a "buy" from "hold" with a target price of RM1.68.

PETROFAC (M) Ltd has extended its anchor handling tug supply vessel contract with Silk in a deal worth RM10.77 million. The company said the contract extension was expected to contribute positively to its earnings for the financial years ending July 31, 2012 and 2013.



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LPI 1Q profit down 19% year-on-year

KUALA LUMPUR (April 9) : LPI CAPITAL BHD []’s net profit fell 19% in the first quarter ended March 31, 2012 from a year earlier, as the general insurer’s contractual liabilities, lower investment income and higher operating expenses offset a higher revenue.

In a statement to the exchange on Monday, LPI said its net profit during the quarter came to RM31.48 million against RM38.63 million previously. Revenue rose 15% to RM246.06 million from RM213.33 million.

“The challenges facing the global developed economies are growing rapidly with very little evidence to suggest that there will be an imminent solution to address these concerns.

“This in turn may affect the investment segment of the Ggoup. The group views the dividend income from this segment with caution. However, the group does not foresee it has any big impact to the overall profit as the investment segment only formed about 13% of the group‟s total profit in the financial year 2011,” LPI said.



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KLCI drifts higher at mid-morning

KUALA LUMPUR (March 13): The FBM KLCI drifted slightly higher, lifted by select blue chips at mid-morning on Tuesday in line with the limited gains at key regional markets.

Meanwhile, at the regional markets most market players were on the sidelines awaiting the outcome of a Federal Open Market Committee meeting later in the day, according to Reuters.

The FBM KLCI added 2.47 points to 1,567.22 at 10.05am. Gainers led losers by 198 to 187, while 276 counters traded unchanged. Volume was 252.62 million shares valued at RM166.43 million.

At the regional markets, Japan’s Nikkei 225 rose 1.14% to 10,002.90, Hong KONG’s Hang Seng Index added 0.77% To 21,297.40, the Shanghai Composite Index edged up 0.05% to 2,436.08, Taiwan’s Taiex gained 0.82% to 7,992.51, South Korea’s Kospi was up 1.15% to 2,025.52 and Singapore’s Straits Times Index added 0.52% to 2,977.65.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients said the resistance areas of the KLCI at 1,564 and 1,583 would cap market gains, whilst the weaker support areas were at 1,540 and 1,559.

“Despite the US markets’ rebound last night, we could be in for a weaker day locally,” he said. The KLCI fell 14.25 points to close at 1,564.75 on Monday.

On Bursa Malaysia, BAT was the top gainer, up 40 sen to RM52.40, Ekovest added 15 sen to RM2.75, Sin Heng Chan gained 13.5 sen to 94 sen, LPI Capital 10 sen to RM13.66 and Tradewinds PLANTATION []s nine sen to RM4,64.

Petronas Chemicals and GAB up eight sen each to RM6.64 and RM13.38, Vintage 7.5 sen to 13 sen, Axiata six sen to RM5.10 while Hoover added five sen to 36 sen.

Naim Indah Corp was the most active with 52.94 million shares done. The stock fell half a sen to 72 sen.

Other actives included Winsun, Takason, Tiger Synergy, XDL, Sanichi and Sumatec.

Decliners included Theta warrants, Allianz warrants, UAC, MISC, Carlsberg, tradewinds, Johore Tin, BLD Plantations, AMMB and Hong Leong Bank.



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LPI Capital sees premium growth and improved claims ratio

LPI Capital Bhd (Jan 26, RM13.38)

Upgrade to market perform at RM13.40 with fair value of RM13.60: For FY12, LPI’s management expects gross premiums to grow by 15% to 16%, in line with our assumptions
and below the circa 20% achieved in FY11. In FY11, LPI’s “miscellaneous” classes grew strongly due to the newly introduced mandatory foreign worker insurance, although we
understand this has tapered off in FY12.

Management expects strong growth arising from its construction-related business, such as workers compensation and so on, due to the rollout of more Economic Transformation
Programme projects. LPI also expects strong growth in its marine, aviation and transit (MAT) segment, which it expects will make a larger contribution to LPI’s overall gross premiums portfolio in FY12 of about 5% to 6% (from about 4% currently).

We understand management expects a lower claims ratio for FY12, positively impacted by the increase in its MAT portfolio coupled with economies of scale as it continues to grow its gross premiums.

MAT businesses are generally profitable, although management noted that it is a class of business that LPI has to be careful of writing given the lumpy claims associated with the business. LPI expects its claims ratio for FY12 to be within the range of 46% to 47%, an improvement of two to three percentage points over FY11’s 48.9%.



In FY11, LPI paid out a total of 75 sen per share in dividends, which implies a net payout of 107%. Historically, LPI’s net dividend payout has ranged between 74% and 85%.

Dividends are largely dependent on LPI’s internal capital adequacy ratio (ICAR), which is set by Bank Negara Malaysia. We understand BNM has no issues with LPI’s ICAR, and as such, we believe there is a high likelihood of 100% dividend payout for FY12 onwards.

Risks to our view include:
(i) a change in government policy that may result in lower car prices;
(ii) jump in claims ratio;
(iii) its combined ratio may exceed 100%; and
(iv) intense competition from insurance sector liberalisation.

Our FY12 to FY14 earnings forecasts were increased by 0.5% to 2.4% after reducing our claims ratio for FY12 to FY14 and imputing the losses from the Malaysia Motor Insurance Pool.

LPI’s consistent dividend payouts and attractive yields of 5.7% to 7% per year are supported by its stable cash flow outlook and current net cash position. We believe this will support the share price at current levels, implying a FY12 price-earnings ratio of around 16 times and fair value of RM13.60, based on our upgraded earnings estimates.

We note that a dividend payout of 100%, higher than our 90% payout assumption, would result in further upside to the share price. As such, we expect continued interest in
LPI’s stock, although given its tight trading liquidity, we believe LPI is more suited to investors with long-term investment horizons. We therefore upgrade our call on the stock to “market perform” (from “underperform”). — RHB Research, Jan 26



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KLCI edges marginally higher but external headwinds still a concern

KUALA LUMPUR (Jan 10): The FBM KLCI edged marginally higher at the close on Tuesday, in line with the gains at most key regional markets.

Analysts, however, cautioned that the outlook remains fragile, given external headwinds.

The 30-stock FBM KLCI edged up 0.26 of a point higher to 1,521.99, lifted by select blue chips.

Gainers overtook losers by 416 to 330, while 346 counters traded unchanged. Volume was 1.86 billion shares valued at RM1.87 billion.

At the regional markets, the Shanghai Composite Index rose 2.69% to 2,285.74, South Korea’s Kospi was up 1.46% to 1,853.22, Taiwan’s Taiex gained 1.21% to 7,178.87, Hong Kong’s Hang Seng Index rose 0.73% to 19,004.28, Japan’s Nikkei 225 was up 0.38% to 8.422.26 and Singapore’s Straits Times Index

Meanwhile, European stocks rose but the euro stayed under pressure on Tuesday, with markets nervous about the outlook for the region's economy and banks, prospects for government debt sales and a slowdown in the export-focused Chinese economy, according to Reuters.

MIDF Research acting head of equity Syed Muhammed Kifni said the market was expected to remain jittery going forward with the possibility of the KLCI re-testing its 2011 lows.

Nonetheless, he said that the Euro debt issue would begin to show credible signs of healing later in the 1H2012, adding that when that transpires, the underperforming indices can be expected to show swifter resurgence on the way up.

In contrast, the KLCI is anticipated to experience relative underperformance during the recovery phase, he said.

“With that in mind, we reiterate our KLCI year-end 2012 base case target of 1,530 points.

“As our base case KLCI year-end target for this year virtually matched its 2011 close, in our view, 2012 may quintessentially be a consolidation year.

In his review of the second half of 2011, Syed Muhammed said it was clear that during the turbulence period of 2H2011 (beginning end-July), the performance of key major and regional equity benchmarks could be grouped into four distinct classes, i.e. out-performers, mid-performers, under-performers, and China.

He said the outperformers comprised of S&P500 (SPX), Philippines Composite (PCOMP) and the FBM KLCI.

He said the US benchmark benefitted somewhat from either, (i) a plain misdiagnosis, or (ii) market conditioning, by the US Fed when it publicly warned earlier of the “significant downside risks” to the economy.

He said the FBM KLCI, was also among the least volatile due to its relatively nature vis-à-vis the other markets in the region.

Syed Muhammed said the mid-performers were the Jakarta Composite Index and Thailand’s SET, while the under-performers’ group comprised the Euro region benchmark (SX5E) as well as developed Asian (i.e. Hong Kong’s HSI, Korea’s KOSPI, Taiwan’s TWSE, and Singapore’s FSSTI) markets.

“We believe the underperformances reflect the relative sensitiveness of their economies towards the crisis-hit Euro region,” he said.

On Bursa Malaysia, United PLANTATION []s was the top gainer and rose 78 sen to RM20; F&N added 28 sen to RM19.02, Petronas Dagangan and KLK up 26 sen each to RM17.40 and RM24.84, LPI Capital and Petronas Gas 24 sen each to RM14.08 and RM15.34, Maybulk 23 sen to RM1.95 and Malaysia Smelting Corp 20 sen to RM4.27.

Takaso was the most actively traded counter this morning with 79.2 million shares done. The stock gained half a sen to 24.5 sen.

Other actives included JCY, MBSB, XDL, HWGB, Time, Versatile and KHSB.

Decliners included Genting, GAB, KLCCP, Lafarge Malayan Cement, Tradewinds, MMHE, Amway and KPJ.



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OSK maintains Buy on LPI Capital, FV RM15.40

KUALA LUMPUR (Jan 10): OSK Research said LPI Capital’s (LPI) FY11 earnings were in line with consensus and its full-year forecasts.

The research house said on Tuesday that LPI’s net profit expanded by 12% on-year, largely owing to the group’s impressive underwriting numbers, fortified by its strong gross premium growth.

“However, the group’s claims ratio ticked up due to higher motor claims resulting from losses incurred by the Malaysian Motor Insurance Pool (MMIP).

“Maintain BUY, with a higher FV RM15.40, pegged to a three-year PE band of 19.4 times (previously 17.2 times),” OSK Research said.



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RHB Research maintains underperform on LPI at RM11.60

KUALA LUMPUR (Jan 10): RHB Research Institute is maintaining its Underperform call on LPI Capital with an unchanged fair value of RM11.60.

It said on Tuesday that LPI’s FY11 net profit of RM154.5 million (up 12% on-year) was in line with its and consensus expectations.

RHB Research said the FY11 earnings growth was driven by the 20.1% on-year growth in gross premiums, slightly higher than its assumption of an 18% growth.

However, FY11 claims ratio of 48.9% was higher versus FY10 of 47.7%, although slightly lower than its own projections of 49.5%.

“Our FY12-13 earnings forecasts trimmed slightly by 0.1%-1.7% after: 1) imputing FY11 gross premium numbers, thus resulting in lower FY12 gross premiums; and 2) slight adjustments in our key expenses assumptions. We also introduce our FY14 earnings forecast,” it said.



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Stocks to watch: LPI, Proton, DRB-Hicom, KHSB, Xidelang, Can-One

KUALA LUMPUR (Jan 10): Stocks on Bursa Malaysia could see some positive bias on Tuesday, underpinned by the investors’ firmer sentiment across the broader market, with focus also on stocks with fresh corporate news.

Then again, the sentiment would also hinge on the outcome of the European meeting on Monday to tackle a debt crisis.

World stocks and the euro gained on Monday after last week's sell-offs, but worries over Europe's banks persisted and fears over demand for the region's debt at auctions due this week left riskier assets vulnerable to further losses, Reuters reported.

German and French leaders were meeting to discuss ways to boost growth in euro zone states struggling with a debt crisis and rising unemployment, and to finalize a deal to increase fiscal coordination within the currency union.

At Bursa Malaysia, the market was weaker in early trade on Monday before putting up a stronger performance in the afternoon, underpinned by external news and on-going corporate developments.

Among the stocks which could see trading interest are LPI CAPITAL BHD [], PROTON HOLDINGS BHD [], DRB-HICOM BHD [], KUMPULAN HARTANAH SELANGOR BHD [] (KHSB), Xidelang Holdings Ltd and CAN-ONE BHD [].

LPI Capital Bhd reported a 6.5% increase in net profit to RM39.33 million for the fourth quarter ended Dec 31, 2011 from RM36.94 million a year ago, boosted by the general insurance business.

LPI announced a second interim single tier dividend of 50 sen per share versus 45 sen a year ago.

DRB-Hicom Bhd has confirmed it has submitted a bid to acquire Khazanah Nasional Bhd’s 42.7% stake in Proton Holdings Bhd. DRB-Hicom said it had always viewed Proton as an important automotive industry player while some analysts said DRB-Hicom was the best bet for Proton.

Meanwhile, KHSB has confirmed its major shareholder KUMPULAN PERANGSANG SELANGOR [] Bhd (KPS) has been given the mandate to enhance or revive its investments.

KHSB said that KPS was mandated by the board to explore and evaluate the available options, which may include a reorganisation and restructuring of its investments and mergers, acquisitions or divestments of its non-performing investments.

As for Xidelang, the company said its major shareholder HongPeng International Holdings Ltd does not have any plans to sell its stake.

Xidelang said it had made due and diligent enquiry with HongPeng which replied while it had been receiving enquiries from external parties including private equity firms, “but HongPeng has no intention of selling its stake at this juncture”.

Xidelang also said the discussions between Navis Capital and HongPeng held during October and November last year were solely exploratory in nature and there was no offer being made or a price range indicated by Navis Capital.

Can-One, whose share price has run up over the past three days, could see some pullback as investors take profit unless the company announces its plans to gain more control of KIAN JOO CAN FACTORY BHD []. However, there could be some fightback by some Kian Joo shareholders.

Can-One had won the court tussle to buy the 146.13 million Kian Joo Can Factory shares held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour last Thursday.

Can-One announced to Bursa Malaysia last Friday that the apex court had allowed its appeal to proceed with the completion of the acquisition of the 32.9% stake for RM241.11 million.



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LPI Capital kicks off 4Q reporting season with RM39m net profit

KUALA LUMPUR (Jan 9): LPI CAPITAL BHD [] was the first company to report its financial results for the October-December 2011 quarter, registering a 6.5% increase in net profit to RM39.33 million from RM36.94 million a year ago, boosted by the general insurance business.

The insurance company said on Monday revenue rose 25.5% to RM239.32 million from RM190.63 million largely contributed by the general insurance segment which marked a commendable growth of 26.2% over the corresponding quarter.

“The increase was mainly contributed by higher gross earned premium for the quarter which registered an increase of RM47.4 million (25.8%) over the corresponding quarter,” it said.

LPI said earnings per share were 17.85 sen compared with 16.77 sen. It announced a second interim single tier dividend of 50 sen per share versus 45 sen a year ago.

For the financial year ended Dec 31, 2011, its earnings rose 12% to RM154.49 million compared with RM137.91 million in FY10. Its profit before tax of RM200.10 million showed an increase of RM18.80 million (10.4%) compared to last year.

“The increase in profit before tax was contributed by the general insurance segment, which recorded a profit before tax of RM174.8 million, up by RM26.3 million from last year.

“Investment holding segment recorded a lower profit before tax of RM25.3 million compared to RM32.9 million last year mainly due to lower dividend income,” it said.

Its revenue rose at a stronger pace of 20% to RM902.73 million from RM751.72 million mainly contributed by the general insurance segment which recorded a growth of 22.3%.



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KLCI stays firmly above 1,510-level at mid-day

KUALA LUMPUR (Dec 30): The FBM KLCI stayed firmly above the 1,510-point level at the mid-day break on Friday, as global markets mostly pushed towards ending the year on a positive note.

At the mid-day break, the FBM KLCI rose 7.23 points to 1,513.92.

Gainers led losers by 337 to 254, while 333 counters traded unchanged. Volume was 572.05 million shares valued at RM483.97 million.

The ringgit strengthened 0.02pct to 3.1772 versus the US dollar; crude palm oil futures for the third month delivery gained RM13 per tonne to RM3,168, crude oil was up 12 cents to US$99.77 while gold added US$8.28 an ounce to US$1,554.25.

Meanwhile, Asian stocks nudged higher and the euro clung to overnight gains on Friday, the last trading day of 2011, as positive data from the United States helped allay concerns on the global economy, while year-end short covering lifted crude prices, according to Reuters.

Still, the region's stocks have collectively lost about a fifth of their value this year, as natural calamities and financial turmoil took a toll on the risk appetite of investors, driving them to safer assets such as the US dollar and gold.

At the regional markets, Japan’s Nikkei 225 rose 0.42% to 8,434.55, Hong Kong’s Hang Seng Index gained 0.41% to 18,472.76, the Shanghai Composite Index was up 0.82% to 2,191.46, while Singapore’s Straits Times Index fell 0.25% to 2,666.17 and Taiwan’s Taiex shed 0.09% to 7,068.56.

On Bursa Malaysia, gainers were led by BAT that rose 28 sen to RM49.88, Lipo Corp 14.5 sen to RM1.13, IJM Corp 13 sen to RM5.67, Faber and IOI Corp 12 sen each to RM1.74 and RM5.40, Milux 11 sen to RM1.26, LPI Capital up 10 sen to RM13.60, while Aeon and AIRB added nine sen each to RM7.30 and RM1.65.

Among the decliners, Nestle fell 50 sen to RM55.50, SHH 15 sen to 25 sen, Sunchirin nine sen to RM1.36, Hunza PROPERTIES [], Theta and DKSH lost seven sen each to RM1.42, 50 sen and RM1.58 respectively.

Mulpha was the most actively traded counter with 32.66 million shares done. The stock added one sen to 39.5 sen.

Other actives included Utopia, Sanichi, TMS, Cybertowers and LFE Corp.



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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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Asian markets fall on Eurozone fears, KLCI snaps winning streak

KUALA LUMPUR (Dec 19): The FBM KLCI snapped its positive run on Monday, in line with the fall at key regional markets, on worries that credit ratings downgrades of some European countries could hamper any progress towards resolving the region’s debt crisis.

At mid-morning, the FBM KLCI fell 0.60 point to 1,465.62.

Losers edged gainers by 194 to 170, while 196 counters traded unchanged. Volume was 402.72 million shares valued at RM185.43 million.

Asian stocks fell on Monday on fears possible credit ratings downgrades of several European countries could derail progress towards resolving the euro zone's debt crisis, while the euro steadied after its worst weekly performance in three months, according to Reuters.

At the regional markets, Japan’s Nikkei 225 fell 0.83% to 8,332.07, Hong Kong’s Hang Seng Index lost 1.63% to 17,986.54, the Shanghai Composite Index was down 1.53% to 2,190.89, Taiwan’s Taiex fell 1.74% to 6,667.36, Singapore’s Straits Times Index was down 1.54% 2,618.31 and South Korea’s Kospi lost 2.42% to 1,795.35.

Fitch Ratings had warned on Friday it may downgrade France and six other euro zone countries, saying a comprehensive solution to the region's debt crisis was "technically and politically beyond reach".

Fitch also revised the outlook on France's top-notch rating to negative, saying the downgrade was not imminent but could come in two years.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Monday said the local market remained mildly positive despite the volatile global markets last week.

Some local institutional blue chip buying on Thursday and Friday led the index up in fairly lack lustre trading, he said.

The weaker support areas for the FBM KLCI are in the 1,424 to 1,460-zone. The next resistance levels of 1,466 and 1,511 will see heavy liquidation activities, he said.

Lee said the tone of the global indices was still unstable and that Eurozone worries on how to tame their debt crisis persisted, with Fitch stating that a comprehensive deal was “beyond reach”.

“There could still be inherent price volatility in the next week before the global markets wind-down for the Christmas and New Year holidays in late December,” he said.

Among the decliners at mid-morning, Carlsberg fell 20 sen to RM8.46, JT International lost 18 sen to RM6.76, JobStreet was down 15 sen to RM2.35, LPI Capital and F&N down 10 sen each to RM13.30 and RM18.26, Hartalega lost nine sen to RM5.52, while CCM, Keck Seng and Batu Kawan lost eight sen each to RM1.57, RM4 and RM17.28 respectively.

Meanwhile, gainers included BAT, Nestle, Amway, Bosutead, BHIC, Far East, SOP, Pintaras and Gamuda.

The actives included Wijaya, Boustead, Versatile, JCY and Utopia.



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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 closes lower in line with weaker regional sentiment

KUALA LUMPUR (Dec 6): The FBM KLCI closed lower on Tuesday, in line with the weaker sentiment at key regional markets.

Asian and European stocks, bond futures, and the euro were sent reeling on Tuesday by the shock warning from Standard & Poor's that it might downgrade euro zone countries en masse if no credible plan to solve the debt crisis emerges at a summit later this week, according to Reuters.

The FBM KLCI fell 9.03 points to close at 1,480.92.

Losers led gainers by 493 to 255, while 281 counters traded unchanged. Volume was 2.26 billion shares valued at RM1.31 billion.

At the regional markets, Hong Kong’s Hang Seng Index fell 1.24% to 18,942.23, Taiwan’s Taiex lost 2% to 6,956.28, Japan’s Nikkei 225 was down 1.39% to 8,575.16, South Korea’s Kospi fell 1.04% to 1,902.82, the Shanghai Composite Index lost 0.31% to 2,325.90 and Singapore’s Straits Times Index fell 0.61% to 2,749.24.

Among the decliners on Bursa Malaysia, KLK fell 30 sen to RM21.68, Tasek 20 sen to RM7.80, Proton 19 sen to RM4.31, Aeon 15 sen to RM7.20, BAT 14 sen to RM47.96, Yahorng 13 sen to 47 sen, while BRDB and CIMB fell 12 sen each to RM2.02 and RM7.09.

Orient was the top gainer and rose 31 sen to RM4.79; Dutch Lady and LPI Capital added 20 sen each to RM25.10 and RM13.10, SHL added up 15 sen to RM1.30, Tradewinds PLANTATION []s 14 sen to RM4.56, South Acids 13 sen to RM2.32, while United Plantations and Malpac were up 12 sen each to RM18.48 and RM1.40.

Utopia was the most actively traded counter with 160 million shares done. The stock added two sen to 12 sen.

Other actives included Sanichi, Compugates, Proton securities, MBF Holdings warrants and DRB-Hicom securities.



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Asian markets remain in the red at mid-day on Eurozone jitters

KUALA LUMPUR (Dec 6): Asian markets extended their losses at mid-day on Tuesday, after Standard & Poor's warned that the credit ratings of top-rated European nations may be cut.

The rating agency’s warning brought to a halt a rally in global equities that began last week and had continued on Monday, when the leaders of France and Germany agreed a plan aimed at guiding the region out of its two-year-old crisis, according to Reuters.

The FBM KLCI was down 9.90 points to 1,480.05 at the mid-day break.

Market breadth was negative with losers leading gainers by 404 to 199, while 268 counters traded unchanged. Volume was 1.36 billion shares valued at RM616.77 million.

The ringgit weakened 0.19% to 3.1380 versus the US dollar; crude palm oil futures for the third month delivery fell RM23 per tonne to RM3,103, crude oil slipped 46 cents per barrel to US$100.53 while gold fell US$10.35 an ounce to US$1,712.65.

At the regional markets, Japan’s Nikkei 225 fell 1.23% to 8,588.66, Hong Kong’s Hang Seng Index lost 1.51% to 18,889.76, Taiwan’s Taiex was down 1.2% to 7,012.63, South Korea’s Kospi lost 0.98% to 1,904.11, Singapore’s Straits Times Index fell 0.97% to 2,739.37 and the Shanghai Composite Index shed 0.78% to 2,315.12.

On Bursa Malaysia, KLK fell 34 sen to RM21.64, Batu Kawan and Nestle lost 20 sen each to RM16.90 and RM53, Aeon and Hong Leong Bank down 14 sen each to RM7.21 and RM10.70, CIMB fell 13 sen to RM7.08 while Proton lost 11 sen to RM4.39.

Among the gainers, Dutch Lady added 20 sen to RM25.10, Orient 19 sen to RM4.67, Tradewinds PLANTATION []s 13 sen to RM4.55, United Plantations 12 sen to RM18.48, UM Land 11 sen to RM1.53, Mintye and LPI Capital up 10 sen each to RM1.30 and RM13, Muda 8.5 sen to 95.5 sen and Nylex eight sen to 63 sen.

Utopia was the most actively traded counter with 115.4 million shares done. The stock added two sen to 12 sen.

Other actives included Sanichi, Compugates, Proton securities and DRB-Hicom securities.



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Markets off to cautious start in November

KUALA LUMPUR (Nov 1): Markets kicked off the first trading day of November on a cautious note, with most key regional bourses in the red, as investors worried about a slowdown in global economy and slow progress in the European debt crisis.

At 12.30pm, the FBM KLCI fell 8.01 points or 0.54% to 1,438.88. Turnover was 584.83 million shares valued at RM501.86 million. There were 193 gainers, 394 losers and 241 stocks unchanged.

Japan’s Nikkei 225 fell 1.19% to 8,881.02, Hong Kong’s Hang Seng Index 1.41% to 19,584.69 and Singapore’s Straits Times index 0.66% to 2,836.93.

US light crude oil fell 79 cents to US$92.40, crude palm oil futures for third month delivery shed RM8 to RM2,945 per tonne. The ringgit weakened to 3.1013 to the US dollar.

OSK Research, in its market outlook, said for November, given the previous month’s sharp rally, it expects some pullback in global markets with Malaysia being no exception.

“Barring the announcement of a General Election, we remain Defensive on the Malaysian market and would advocate a Buy if the KLCI retraces towards 1,300 while we could call a Sell on the market if it rises towards the 1,533. Neutral for now with defensive Top 5 Buys all maintained,” it said.

Genting was the top loser, down 24 sen to RM10.52, dragging the KLCI down 2.05 points while CIMB fell nine sen to RM7.48, pushing the index down another 1.55 points.

LPI fell 22 sen to RM13, Panasonic Malaysia 22 sen also to RM19,48, Bursa 12 sen to RM6.67, AirAsia 11 sen to RM3.79 and Petronas Chemicals 10 sen to RM6.35.

Maxbiz was the most active, up four sen to 13 se, with 29 million shares done, prompting query from Bursa Malaysia Securities.

MBSB added four sen to RM1.81, MBSB-WA three sen to 93.5 sen and MBSB-CA two sen to 17 sen after the strong set of third quarter results.

DiGi was the top gainer, adding 40 sen to RM32.10 as investors sought dividend stocks, F&N added 10 sen to RM17.10 while Jerneh Asia rose six sen to RM1.42 after it received a takeover offer from its major shareholder Kuok Brothers Sdn Bhd.

KLCI bucks regional markets, up nearly 11 pts

KUALA LUMPUR (Oct 31): Bursa Malaysia bucked the trend among key regional markets to be the only bourse to close higher, with local funds seen picking up selected index-linked stocks, including Tenaga Nasional.

The KLCI gained 10.89 points or 0.68% to close at 1,491.89 on Monday, the best month since July, after the weak start in the morning due to the Japanese yen intervention. Turnover was 1.33 billion shares valued at RM1.582 billion. Gainers beat losers 426 to 318, while 282 counters traded unchanged.

Acting head of equities at MIDF Research, Syed Muhammed Kifni Syed Kamaruddin said: "The KLCI underperformed during the past week with a gain of only 2.99% vis-a-vis other regional markets such as Jakarta, Thailand, Singapore and Hong Kong which jumped by between 5% and 11%.

"Hence it is not unusual to see the local market playing catch-up this week.”

Despite markets reacting adversely to the recent yen intervention by the Japanese government, Kifni believes that a weaker yen would benefit companies with yen-denominated liabilities such as Tenaga Nasional.

Tenaga Nasional rebounded after the midday close, up 28 sen from a low of RM5.70 to close at RM5.98, driving up the index 1.50 points.

"In addition, car importers and assemblers such as UMW and Tan Chong may also gain from cheaper imported vehicles and parts," he added.

The sombre mood was evident as key regional markets fell. Singapore's Straits Index was down 1.54% to 2,861.11, South Korea's Kospi fell 1.06% to 1,909.03, Hong Kong's Hang Seng 0.77% to 19,864.87, Japan's Nikkei 225 0.69% to 8,988.39 and the Shanghai Composite Index shed 0.21% to 2,468.25.

At Bursa Malaysia, the major gainers were timber-based Jaya Tiasa, Choo Bee, F&N, LPI and DiGi.

Jaya Tiasa rose 29 sen to RM5.70, Choo Bee 28 sen to RM1.70, F&N 22 sen to RM17.00, both LPI and DiGi rose 20 sen to RM13.22 and RM31.70 respectively.

CIMB and IOI Corp gained 11 sen each to RM7.57 and RM5.25 respectively, pushing the index up 3.52 points, while Genting and Public Bank was up 10 sen to RM10.76 and RM12.72 respectively to add 2.46 points to the index.

Among actively traded counters were JCY, MAA and Zelan all up by three sen to close at 60 sen, 51 sen and 39 sen respectively.

KLCI off day’s best as investors lock in gains

KUALA LUMPUR: Blue chips closed off their day’s best on Monday, Oct 24 as investors decided to lock in some of the gains as they awaited firmer news from the euro debt resolution at Wednesday’s summit.

At 5pm, the KLCI was up 11.19 points or 0.78% to 1,450.02, but off the day’s best of 1,462.06. Turnover was 1.24 billion shares valued at RM1.31 billion. Advancing counters beat decliners nearly three to one, with 556 gainers to 203 losers and 254 stocks were unchanged.

Among key regional markets, Reuters reported that the Hang Seng Index closed up 4.14% at 18,771.82. The China Enterprises Index of the top mainland companies listed in Hong Kong climbed 5.4% to finish at 9,717.65. The Shanghai Composite Index closed up 2.29% at 2,370.33

Hong Kong shares recorded their best daily performance in two weeks on Monday, led by mainland energy and materials plays that suffered the brunt of recent bearishness on China, but gains came in low turnover, suggesting a lack of conviction.

Japan’s Nikkei 225 added 1.9% to 8,843.98, South Korea’s Kospi 3.26% to 1,898.32 and Singapore’s Straits Times Index 1.79% to 2,760.95.

At Bursa Malaysia, investors, which had been hammered by the volatile market sentiment, decided to be prudent and take profit after the sharp gains.

Lower priced shares and penny stocks attracted attention, pushing the turnover to new levels in recent weeks. Investors would want to await for solid confirmation of measures to resolve the euro debt crisis before putting in more money into equities.

Consumer stocks were among the top gainers, with BAT chalking up gains of 54 sen to RM44.98, Dutch Lady 34 sen to RM19.34, GAB 20 sen to RM10.64.

Genting rose 27 sen to RM10.02 with 2.98 million shares done while Genting Malaysia eight sen to RM3.75. The other top gainers were PacificMas, up 21 sen to RM3.58, LPI 20 sen to RM12.70 while among PLANTATION []s ChinTek added 17 sen to Rm8.21 and Batu Kawan 16 sen to RM15.50.

Surprisingly on the top losers’ list was HL Bank, down 22 sen to RM10.36 but HLFG gained 12 sen to RM11.40.