Stocks to watch MAA Group, Petra Energy, Crest Builder, Malaysian Airline, Air Asia, DKLS

KUALA LUMPUR (May 5): The FBM KLCI could take trend higher next week, as the first quarter earnings reporting season kicks off, and as analysts expect better sequential earnings for companies.

Global stocks swooned and crude oil tumbled on Friday after a weak U.S. jobs report and data that suggested a deeper recession across the euro zone than previously thought dented sentiment, according to Reuters.

Major U.S. and European stock indexes fell more than 1 percent, U.S. crude oil slumped about 4 percent and government debt prices jumped after the Labor Department said American employers reduced hiring more than expected in April, it said.

MIDF Research head of equity Syed Muhammed Kifni said with the earnings reporting season for the first quarter 2012 beginning this week, he expects to see an overall sequential improvement in the bottom line figures.

“Both ours and consensus KLCI earnings growth for this year are estimated at around mid-teens, supported by decent organic earnings growth performance as well as absence of lumpy abnormal losses,” he said.

Syed Muhammmed said that despite recent difficulty of the KLCI to sustain itself above the 1,600 points levels, in our opinion, the recent liquidity-driven rally has not yet ended as the local market undercurrent remains positive.

Furthermore, notwithstanding the feeble dynamics in Europe, risk-on mood is still prevalent on Wall Street as attested by its benchmark index which is stealthily approaching the pre-2008 highs, he said.

“This continuing appetite for risk assets may help the markets in this region to also regain their upward momentum. Hence we believe the KLCI will again attempt to knock against the psychological 1,600 points ceiling in the coming days.

“We reiterate both our year-high as well as year-end 2012 KLCI base case targets of 1,670 points and 1,600 points respectively,” he said.

Among the stocks that could be in focus next week are MAA Group Bhd, PETRA ENERGY BHD [], CREST BUILDER HOLDINGS BHD [], MALAYSIAN AIRLINE SYSTEM BHD [], Air Asia Bhd and DKLS INDUSTRIES BHD [].

MAA Group Bhd is selling its wholly-owned security equipment and services unit for RM7 million, a move which will help the financial services entity focus on its core business.

Petra Energy Bhd declared a final tax-exempt dividend (single-tier) of half a per share for the financial year ended Dec 31, 2011 to be paid on July 13 this year.

The founding family of Crest Builder Holdings Bhd raked in proceeds of RM4.1 million from the sale of five million shares or 4% in the CONSTRUCTION [] firm.

Updates to the exchange show that Yong Tiok Chin who is the daughter of founder and managing director Yong Soon Chow had disposed of the shares at 82 sen each on Thursday.

Shares of Malaysian Airline System Bhd and Air Asia Bhd could continue to be in focus next week after the reversal of their share-swap agreement and the resignation of Tan Sri Tony Fernandes and Datuk Kamarudin Meranun from MAS' board.

DKLS Industries Bhd has inked a heads of agreement with the Selangor State Development Corporation (PKNS) to collaborate in the redevelopment of a 15.9-acre area in Petaling Jaya into a mixed development comprising commercial, retail and residential units.

The company said on Friday that the gross development value of the Proposed Redevelopment was estimated at the range of RM1.5 billion.



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AirAsia advances in active trade post share-swap being called off

KUALA LUMPUR (May 4): Shares of Air Asia Bhd continued to see heavy trading on Friday as after the reversal of its share-swap agreement with Malaysian Airlines System Bhd (MAS) and the resignation of Tan Sri Tony Fernandes and Datuk Kamarudin Meranun from MAS' board.

At 4.15pm, shares of Air Asia rose 2 sen to RM3.62 with 12.6 million shares traded in.

Volume traded of the stock has been on the high side since the share-swap reversal announcement on Wednesday,May 2.

On May 3, Air Asia's volume traded at 13.8 million compared to only 1.53 million shares traded on Monday, Apr 30.

Meanwhile, MAS rose 1 sen to RM1.25 with 2.6 million shares traded in on Friday.



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Stocks to watch Fajarbaru, Pharmaniaga, Tasco, Quill Capita, New Hoong Fatt, APFT, MAS, AirAsia

KUALA LUMPUR (May 3): The FBM KLCI could face a struggle to eke out some gains on Friday, as investor sentiment could take a hit by external factors that have plagued global equity markets over the week.

European stocks slipped into negative territory on Thursday after a weaker-than-expected U.S. service sector data cast doubts over the strength of the recovery in the world's biggest economy, according to Reuters.

Most global equity markets trended lower on Thursday after the S&P 500 and the Dow edged lower on Wednesday as data showed that private sector hiring fell far more than expected in April, sparking concerns that Friday's U.S. jobs report will also disappoint investors, according to Reuters.

Among the stocks that could be in focus on Bursa Malaysia on Friday are Fajarbaru, Pharmaniaga, Tasco, Quill Capita, New Hoong Fatt, APFT, MAS and AirAsia.

Fajarbaru Builder Group Bhd has secured a sub-contract worth RM299.84 million to build a power substation from MALAYSIAN RESOURCES CORP []oration Bhd .

The company said on Thursday that its unit Fajarbaru Builder Sdn. Bhd had received a letter of acceptance to build the Kg Kuala Sungai Baru substation and other associated works for the Ampang (AMG) Line Extension project.

PHARMANIAGA BHD [] says first quarter net profit rose 85% from a year earlier as revenue growth mitigated the impact of higher operating cost, besides finance and tax expenses.

In a statement to the exchange, Pharmaniaga said net profit came to RM28.69 million in the quarter ended March 31, 2012 versus RM15.48 million previously as revenue grew 16% to RM446.75 million from RM385.33 million.

The firm said it plans to pay a first interim single-tier dividend of 7.5 sen a share for financial year ending December 31, 2012. Conglomerate BOUSTEAD HOLDINGS BHD [] owns some 72% in Pharmaniaga.

Tasco Bhd net profit for the first quarter ended March 31, 2012 rose 4.6% to RM6.76 million from RM6.46 million a year earlier, due to better margins from its air freight forwarding division arising from urgent export shipments.

The company said on Thursday that its revenue for the quarter edged lower to RM117.89 million from RM118.36 million in 2011.

QUILL CAPITA TRUST [], a commercial and industrial-based real estate investment trust says first quarter net profit rose 5% from a year earlier, helped by higher revenue and lower operating expenses.

In a statement to the exchange, Quill said net profit came to RM8.07 million in the quarter to March 31, 2012 from RM7.68 million previously while revenue was up 2% to RM17.78 million from RM17.51 million.

NEW HOONG FATT HOLDINGS BHD [] net profit for the first quarter ended march 31, 2012 fell 42.1% to RM4.1 million from RM7.08 million a year earlier, due mainly to increased in manufacturing and operating costs as well as higher foreign exchange loss.

The company said on Thursday that its revenue for the quarter edged up 0.6% to RM54.02 million from RM53.71 million in 2011 due to higher demand for export sales.

APFT Bhd’s unit Asia Pacific Flight Training Sdn Bhd (APFTSB), has signed a five-year MPL Services Agreement with Canada-based CAE Inc (CAE) on the Multi-crew Pilot License (MPL) training for AirAsia cadets.

In a statement to Bursa Malaysia on Thursday, A PFT said this was the first and only MPL training in Malaysia.

it said that previous batches of AirAsia CAE MPL cadets were trained in Canada.

Meanwhile, shares of MALAYSIAN AIRLINE SYSTEM BHD [] and AIRASIA BHD [] could extend their gains from Thursday after the airlines said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.



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MAS – AirAsia cooperation should be continued, says Dr M

KUALA TERENGGANU May 3: The cooperation between Malaysia Airlines (MAS) and low-cost carrier AirAsia should be continued for the benefit of both companies, former Prime Minister Tun Dr Mahathir Mohamad said today.

He said that through the cooperation, MAS would be able to learn from AirAsia and vice versa.

"I see people opposing, not the cooperation forged by both, but the manner in which the share swap deal of the airline companies was done. This is what many people protested against.

"So, now, with the share swap having been cancelled, the cooperation should continue as there is much that MAS can learn from AirAsia.

"(AirAsia) Fares are very cheap, sometimes free, but it has been able to provide the service for the past 10 years. Logically, the company should be bankrupt, while MAS, which has received government aid of up to RM3 billion, is still losing money every year," he added.

He was speaking at a media conference after his lecture on 'The Challenges Faced by Muslims Now: Perception and Reality', organised by the Terengganu state government with the cooperation of the Terengganu Strategic Study and Integrity Institute here.

Khazanah Nasional Bhd yesterday announced the cancellation of the share swap deal between MAS and AirAsia after it failed to get the support of stakeholders to continue with the initiative. – Bernama



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MAS, AirAsia soar 10% on share-swap termination

KUALA LUMPUR (May 3): Shares of MALAYSIAN AIRLINE SYSTEM BHD [] and AIRASIA BHD [] advanced on Thursday after the airlines said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.

MAS rose 12 sen to RM1.34 before trading lower at RM1.27 at 11.34am with some 6.1 million shares done.

AirAsia which fell as much 4% to RM3.20 earlier, rose 32 sen to RM3.65. The stock was traded at RM3.56 at 11.36am with about seven million shares done.

In separate statements to the exchange, MAS and AirAsia said both firms have agreed to terminate their share swap arrangements. As a result, the domestic airlines said they have signed a supplemental agreement to revise the terms of their collaboration.

This has prompted MAS and AirAsia to sign two memorandums of understanding to define the scope their proposed collaboration. According to both firms, this include an assessment on the feasibility of establishing a joint venture firm which will offer aircraft component maintenance services besides a plan to set up a special purpose vehicle to undertake joint procurement processes.



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Stocks to watch Unisem, Daya Materials, Opcom, Heitech Padu, Hock Lok Siew Corp

KUALA LUMPUR (May 2): The FBM KLCI could be hard pressed to sustain its gains on Thursday, as early trade in Europe and Wall Street on May 2 pointed to weaker performance at the equity markets as disappointing euro zone data sparked new concerns over the region's fiscal health ahead of domestic economic data.

Markit's Eurozone Manufacturing Purchasing Managers' Index dropped to 45.9 last month from 47.7 in March, marking its lowest reading since June 2009. European shares erased earlier gains and the euro dropped to its lowest level in two weeks against the Japanese yen., according to Reuters.

A slew of announcemnts on Bursa Malaysia, including that of the termination of the share swap deal between MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and AIRASIA BHD [] could spur investor activity, but whether the FBM KLCI can advance will be left to be seen.

Among the stocks that could be in focus are UNISEM (M) BHD [], DAYA MATERIALS BHD [], OPCOM HOLDINGS BHD [], HEITECH PADU BHD [] and Hock Lok Siew Corporation Bhd.

Unisem posted net loss RM13.52 million for the first quarter ended March 31, 2012 compared with net profit RM5.09 million a year earlier.

It said that revenue for the quarter fell to RM256.61 million from RM291.97 million in 2011.

Daya Materials Bhd’s unit Daya CMT Sdn Bhd has secured a CONSTRUCTION [] contract worth RM270 million from Yuk Tung Corporation Sdn Bhd.

Daya said that Daya CMT had been awarded the contract as the principal sub-contractor for the development comprising 3-Blocks of 28-Storey mixed development consisting soho units, office lots, podium car park and basement car park at Jalan Sungai Besi in Kuala Lumpur.

Opcom Holdings Bhd, a fibre-optic cable manufacturer, has secured an RM82 million variation order to an existing RM359 million contract with TELEKOM MALAYSIA BHD [].

Opcom said it had secured the RM359 million fiber-to-the-home contract from Telekom in April 2009. Opcom had in May 2011 secured a two-year extension for the project till April 19, 2013.

Heitech Padu Bhd secured a RM15.2 million job from the national registration department.

Hock Lok Siew Corp said on Wednesday that it had been designated a Practice Note 17 company after triggering the prescribed criterias of the Listing Rules.

Meanwhile, the RM1.1 billion share-swap deal involving beleaguered Malaysian Airline System Bhd (MAS) and AirAsia Bhd has been called off, according to filings to Bursa Malaysia Securities Bhd on Wednesday.

Shares in both MAS and AirAsia were suspended from trading on Wednesday ahead of the announcement, but the airlines have not announced when their respective securities would resume trading.

However, if MAS and AirAsia resume trade on Thursday, investor interest would certainly be high given the nature and magnitude of the original deal that is being called off.

In separate announcements, the two airlines on May 2 said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.

Secondly, the MoU was to establish the broad set of business principles for the establishment of a special purpose vehicle (SPV) by MAS, AirAsia and AAX to improve value for money and increase competitiveness and benefits to customers through procurement synergies by outsourcing to the SPV the procurement processes for identified goods and services in agreed categories



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MAS- AirAsia share swap scrapped

KUALA LUMPUR (May 2): The RM1.1 billion share-swap deal involving beleaguered MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and AIRASIA BHD [] has been called off, according to filings to Bursa Malaysia Securities Bhd on Wednesday.

Shares in both MAS and AirAsia were suspended from trading on Wednesday ahead of the announcement.

In separate announcements, the two airlines said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.

Secondly, the MoU was to establish the broad set of business principles for the establishment of a special purpose vehicle (SPV) by MAS, AirAsia and AAX to improve value for money and increase competitiveness and benefits to customers through procurement synergies by outsourcing to the SPV the procurement processes for identified goods and services in agreed categories.



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MAS, AirAsia share trading to be halted from 9am today

KUALA LUMPUR (May 2): Trading in the securities of Malaysian Arline System Bhd and AIRASIA BHD [] will be halted from 9am on Wednesday at the request of the two airlines pending a material announcement.

Malaysia Airlines was expected to announce the cancellation of plans for a share swap with budget carrier AirAsia.

For more on this, read today’s edition of the Edge Financial Daily’s report on Boards of Khazanah and Tune Air today will make official their decision to abandon the RM1.1 billion share-swap deal involving MAS and AirAsia.



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AirAsia, MAS fall, focus on share-swap, oil prices

KUALA LUMPUR (April 25) : AIRASIA BHD [] and MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) shares fell against the backdrop of rising crude oil prices, and possibly, on concerns that the share-swap arrangement between both airlines may be reversed due to opposition from MAS employees.

AirAsia declined as much as 2.3% or eight sen to settle at RM3.33 at lunch break while MAS was down 0.8% to RM1.24 before trading unchanged at midday interval. AirAsia and MAS saw some two million and 600,000 shares done respectively.

AirAsia is the second-largest decliner among the FBM KLCI‘s 30 stocks after diversified group MMC Corp Bhd which fell 3.65% to RM2.64.

Crude oil futures rose as global markets responded positively to improving US corporate earnings and housing sector updates, apart from firm demand for European government bonds.

Crude oil on the New York Mercantile Exchange rose 11 cents to US$103.66 a barrel versus the IntercontinentalExchange’s Brent crude oil which was up 10 cents to US$118.26 a barrel.



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Stocks to Watch Top Glove, SelProp, MAS, Globetronics, Keck Seng

KUALA LUMPUR (April 24): Malaysian stocks will take the cue from crucial global economic data from Europe and the US as investors assess external factors against domestic pre-election sentiment.

European highlights include the sale of government bonds in Spain and the Netherlands, while across the Atlantic the spotlight will be on indications of more quantitative easing (QE) by US policymakers to sustain the world's largest economy.

Analysts said signs of a further QE may spur global equities while an opposite indication could result in profit taking. In the US, the S&P 500 futures added 3.75 points to 1,366.5, while the Dow Jones Industrial Average futures climbed 30 points to 12,901.

In Malaysia, the FBM KLCI fell 1.52 points to close at 1582.28 points on Tuesday.

Stocks to watch on Wednesday are Top Glove Corp Bhd, Selangor PROPERTIES [] Bhd (SelProp), MALAYSIAN AIRLINE SYSTEM BHD [] (MAS), GLOBETRONICS TECHNOLOGY [] BHD [], and KECK SENG (M) BHD [].

Maybank Investment Bank Bhd has raised its earnings per share (EPS) forecast for Top Glove by 8% to 12% for financial years (FY) ending Aug 31, 2012 to 2014 after taking into account lower prices of natural rubber. Maybank IN, which revised upwards its fair value for Top Glove shares by 29% to RM5.40 from RM4.20, also upgraded the stock to a "buy" from "sell".

SelProp shares will trade ex-dividend on Wednesday. Shareholders have approved the company's plan to pay a first and final dividend of 10%, less 25% tax for the financial year ending Oct 31, 2011.

MAS gained as much as 3.3% or four sen to RM1.27 in intraday trade, against a backdrop of declining crude oil prices. Commodity prices fell on concerns that European sovereign debt woes will curb demand.

Globetronics's first quarter (1Q) net profit declined 4% from a year earlier, as the electronics component manufacturer registered lower revenue and higher operating cost. In a statement to the bourse, Globetronics said net profit came to RM6.2 million in the quarter to March 31, 2012, against RM6.43 million previously. Revenue fell 15% to RM56.79 million from RM67.09 million, as the company registered less turnover from China and Singapore, it said.

Keck Seng — which undertakes oil palm cultivation, besides real estate and hospitality operations — said it plans to reward shareholders with a final dividend of 6%, less 25% tax for financial year ended Dec 31, 2011. The proposed dividend requires shareholders' consent at the firm's coming annual general meeting.



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MAS gains 3% on falling oil prices

KUALA LUMPUR (April 24) : MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) gained as much as 3.3% or four sen to RM1.27 in intraday trade against a backdrop of declining crude oil prices. The stock, however, traded lower at RM1.26 as at 3pm with some 477,000 shares done.

The investment fraternity has a cautious sentiment on MAS’ outlook. In a note, OSK Research Sdn Bhd analyst Ahmad Maghfur Usman said crucial concerns for MAS include its capital commitments against costlier jet fuel and sluggish air travel demand.

“We see the increasing likelihood for the national-flagged carrier to call for another round of a rights issue as its credit facility dries up. Furthermore, there are risks that its collaborative framework with AirAsia could be called off due to strong resistance from its unionised workforce.

“If this does happen, MAS will be negatively impacted over the longer run as more headwinds are expected from the intensification of competition ahead of the Open Sky Policy,” Ahmad Maghfur said. OSK maintains its “sell” call and target price of 90 sen for MAS.



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KLCI extends loss on external woes

KUALA LUMPUR (April 5): The FBM KLCI extended its loss on Thursday, in line with the weaker overnight close at the US markets as well as lacklustre opening at regional markets.

The 30-stock index fell 3.79 points to 1,595.48 at 9am.

Losers led gainers by 57 to 23, while 86 counters traded unchanged. Volume was 13.1 million shares valued at RM4.09 million.

US stocks fell for a second day on Wednesday as investors contemplated a world without monetary stimulus and a poorly received bond auction in Spain suggested the effects of Europe's funding operations were waning, according to Reuters.

Meanwhile, Global stocks dropped more than 1 percent and gold tumbled to its lowest in nearly three months on Wednesday a day after U.S. central bank meeting minutes dented hopes for more economic stimulus and as a Spanish debt auction drew weak results, it said.

BIMB Securities Research said European stocks fell for a second day yesterday after Spain sold fewer bonds than its maximum target and the Federal Reserve damped expectations of more monetary stimulus for the US. Spain sold €2.6bn (US$3.4bn) of bonds; near the minimum target of €2.5bn; and borrowing costs rose in its first auction since the country said public debt will surge to a record this year.

US stocks ended in negative territory for a second day fueled by disappointment over the Fed's latest minutes and ongoing worries over the euro zone, the research house said in a note April 5.

The Dow and the S&P logged their biggest decline since March 6, while the Nasdaq suffered its worst day of the year. The S&P 500 lost 1 percent to 1,398.96 while DJIA slid 124.8 points to 13,074.75, it said.

“Back home, the local market has retraced as expected where the FBMKLCI fell more than 7 points to 1,599.27; dragged down by financial and PROPERTIES [] sector.

“Net foreign is still positive at RM176.7m yesterday but we reckon market sentiment to be weaker due to profit taking activities coupled with weak share performance in US and Europe. Expect immediate support to be seen at 1,595 followed by 1,590,” it said.

Among the decliners in early trade, KLK fell 22 sen to RM24.38, Genting lost 10 sen to RM10.98, Maybank don nine sen to RM8.79, RHB Capital and Malayan Flour Mills fell four sen each to RM7.70 and RM2, CIMB, MAS, Mah Sing and TDM fell two sen each to RM7.70, RM1.34, RM2.02 and RM4.68 respectively.

Gainers,meanwhile, included Tradewinds, BHIC, Parkson, SEGi, Pos Malaysia, Leader, Proton and N2N.

The actives included JCY, Carotech, Kurasia, Metronic and Winsun.



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MIDF Research maintains Sell call on MAS, target price RM1.35

KUALA LUMPUR (April4): MIDF Research has maintained its Sell rating on Malaysian Arline System Bhd (MAS) with a target price of RM1.35 after the airline unexpectedly discarded its plan to launch a new premium regional airline.

MAS had said that it was slight business module realignment for the regional airline initiative. Strategy and objective of short-haul operation will remain unchanged while the premium regional service will instead offer in-house under MAS brand.

MIDF Research in note Wednesday aid that the decision to scrap the new airline came in as a surprise and would possibly put a question mark on MAS’ ability to execute its turnaround plan.

“There are still many structural weaknesses faced by MAS such as its sliding position in the premium category and over-staffing, which MAS need to tackle.

“Hence, we reiterate our current view with SELL recommendation and our target price to RM1.35 by pegging its Price-to-Book value in FY12 to 1.8 times,” it said.



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Stocks to Watch Petra, MAS, MISC

KUALA LUMPUR (Apr 3): There is still room for the FBM KLCI to trade higher, according to analysts, as technical trading dynamics improve in anticipation of more positive updates by the government ahead of Malaysia’s general election.

Analysts said the 30-stock index has breached the 1,600 point level; hence, the possibility that the FBM KLCI will reach the next hurdle of 1,620 points.

The benchmark added 2.85 points to close at a fresh all-time high of 1,606.63 points on Tuesday.

Stocks to watch on Wednesday include PETRA ENERGY BHD [], Y.S.P.SOUTHEAST ASIA HOLDING [] Bhd, SARAWAK OIL PALMS BHD [] (SOPB), MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and MISC BHD [].

Petra Energy has signed a memorandum of understanding with Baker Hughes (M) Sdn Bhd to undertake oil and gas projects in Malaysia.

Y.S.P. plans to reward shareholders with a single-tier first and final dividend of six sen per ordinary share for financial year ended Dec 31, 2011.

SOPB is diversifying into the shipping business following a joint venture (JV) agreement with Shin Yang Shipping Corp Bhd.

MAS has called off its plans to set up a short-haul regional premium airline, and will instead provide such services via an operating unit under the company.

Malaysian Rating Corp Bhd (MARC) has revised the outlook of MISC’s Islamic bonds to negative from stable. The revision has taken into account the shipping firm’s weaker financials, according to MARC.



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MAS drops regional airline plan

PETALING JAYA (April 3):- Malaysia Airlines (MAS) has dropped its plan to establish a short-haul regional premium airline and will instead offer such services in-house as a division under the national carrier.

Without offering any reason, MAS Chief Operating Officer (Short Haul) Ignatius M.C. Ong said there was already a slight business module realignment for the regional airline initiative.

"Strategy and objective of the short-haul operations will remain unchanged but there will be no new airline.

"The operations will come under the banner of Malaysia Airlines," he told reporters here after launching Firefly's fifth anniversary.

Ong also said MAS's organisation structure remained unchanged and the top management would make an official announcement soon.

MAS Chief Executive Officer Ahmad Jauhari Yahya is in charge of the national carrier's long-haul operations while his deputy, Mohammed Rashdan Yusof, looks after the airline's short-haul operations.

Late last year, Ahmad Jauhari, when revealing MAS's business plan, announced the establishment of a new regional premium airline by mid-2012 to focus on short-haul premium travel to profitable routes such as Asean and China.

He had said then that MAS would run the new entity without interference from other associated entities and the new airline would be a new business model for sustainable profitability and ensure focus on unique needs of regional premium travellers.

The plan was also for the regional airline to fly all domestic and regional routes serviced by MAS today.

Malaysia Airlines was in the red for the financial year ended Dec 31, 2011, with a net loss of RM2.52 billion, on the back of RM13.9 billion in revenue, thus marking its worst financial results since its inception.

For the fourth quarter, the national carrier recorded a net loss of RM1.28 billion on a turnover of RM3.68 billion. – Bernama



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Malaysia Airlines increases regional and long-haul network frequencies

KUALA LUMPUR (March 24): Malaysia Airlines is offering increased full-service weekly frequencies effective tomorrow between Kuala Lumpur and Beijing, Manila, Phnom Penh, Los Angeles, Taipei, Bangkok, Medan and Jakarta, taking advantage of an expected rise in demand on these routes.

These sectors will see a gradual increase in total capacity from the current 19,540 seats to 24,820 by May 1, the airline said in a statement here today.

The company said these routes would mainly use B737-800 and B777-200 aircraft, all equipped with in-seat personal TV screens and more leg room for customers' comfort.

The additional frequencies also seek to offer travel enthusiasts from Malaysia more convenient connections to enjoy events like the Penghu Fireworks Festival in Taiwan, Beijing International Book Fair and Cocoa de Flores in Manila.

The company said travellers can now take advantage of the 50 per cent increased frequency of 21 weekly flights between Kuala Lumpur and Manila at all-inclusive return economy class fares starting from RM1,357.

For travel to Phnom Penh, customers can enjoy return economy class fares from only RM814 and more flight choices with the 55 per cent frequency increase to 14 weekly services by May 1.

For Indonesia, passengers will have more flight choices with all-inclusive return economy class fares from RM647 to Jakarta and RM477 to Medan as Malaysia Airlines increases weekly frequencies to 42 flights for the Kuala Lumpur-Jakarta route effective tomorrow and double daily for the Kuala Lumpur-Medan route.

As for travel to Bangkok, all-inclusive return fares start from RM883 as the national carrier commences four daily flights between Kuala Lumpur and Bangkok, also effective tomorrow.

Other attractive deals are available on Malaysia Airlines’ website www.malaysiaairlines.com, Malaysia Airlines Call Centre at its 24-hour toll-free number 1-300-88-3000, and all its ticket offices in Malaysia.- Bernama



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MAS launches 'The Big Flight' competition on YouTube

KUALA LUMPUR (March 23): Malaysia Airlines had on Friday launched "The Big Flight" competition at its official YouTube brand channel which will see the winners earning a joyride on the airline's A380 plane.

In a statement on Friday, MAS said those interested in the competition need to submit a short video by April 22, stating why they are unique and deserve to fly on the Malaysia Airlines A380 Joyride.

Participants must be Malaysian, aged 18-years and above with a valid passport.

Twenty shortlisted videos will be chosen based on creativity, originality and overall impression.

The shortlisted videos will then be put up on YouTube for voting by the public, and the top eight most voted videos will win the joyride tickets.

Its Marketing and Promotions Senior Vice President, Al-Ishsal Ishak said the competition was part of the airline's "A380 Pride of Nation" campaign, launched earlier this month.

Details on the competition and video submissions can be found at http://www.youtube.com/MalaysiaAirlines.

Malaysia Airlines is expected to receive the first of six A380 aircraft in mid-June this year.

The aircraft will have 494 seats in a three-class configuration comprising eight First Class, 66 Business Class seats and 420 Economy Class seats. The A-380 will fly the Kuala Lumpur-London route from July. - Bernama



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Najib to review MAS-AirAsia deal-MAS union official

KUALA LUMPUR (March 14) : Prime Minister Datuk Seri Najib Tun Razak has promised to review a share-swap deal between Malaysian Airline System (MAS) and AirAsia, a MAS employees union official said on Wednesday, signalling a tie-up may be scrapped after MAS posted record losses.

The 20,000 strong union MASEU is opposed to the $364 million deal that has brought AirAsia founder Tony Fernandes and his brand of aggressive cost cutting into the MAS boardroom, which they say resembles a take-over by the budget carrier.

Senior officials from the two airlines were not immediately available for comment. A government spokesman confirmed that union officials had met the prime minister but he declined to comment on details of the meeting.

The deal, formulated by Najib, was to help both carriers compete effectively against competitors like Tiger Airways and Singapore Airlines once the Southeast Asian open sky policy comes into effect in 2015.

MASEU officials met Najib in February to protest against the deal that would lead to restructuring MAS into short-haul and long-haul operations and could lead to job cuts, said MASEU Secretary General Abdul Malek Ariff.

That month, MAS reported its worst ever losses of 2.5 billion ringgit ($823.86 million) for 2011, eight months after the share swap deal was signed in August, shocking analysts who expected the restructuring to limit losses.

Failing to placate the union could turn into a political hot potato for Najib as MAS operations are centered in Selangor, an important industrial state Najib wants to wrest back from the opposition in elections that could be held within months.

"The prime minister has promised to look into the matter but we've heard nothing from him," Abdul Malek told Reuters, adding the government was losing the support of union members.

"Sentiment among the unions used to be 50:50 for the government and the opposition. Now after this, 90 percent will opt for the opposition," he said.

Under the deal announced in August, Tune Air, which is controlled by AirAsia's Fernandes and Kamarudin Meranun, would take a 20.5 percent stake in MAS and two board seats.

In exchange, state investment arm Khazanah Nasional, the majority shareholder in MAS, would hold 10 percent in AirAsia.

CIMB is the adviser for both companies on the deal, which is almost completed with the exchange of warrants ongoing, said a banking source.

Khazanah also declined to comment. A government spokesman said MASEU officials met the prime minister "some time back" but declined to comment further.

SAVING MAS?

Analysts say the new structure was supposed to help MAS, which has had a tumultuous history stretching back to 1997, when unprofitable routes pushed it into the red.

It notched its worst ever financial year in 2011 because of surging fuel costs and one-off provisions for impairment of aircraft, excess capacity and redelivery of aircraft.

In total, the provisions stood at 1.1 billion ringgit for the fourth quarter alone. Following the losses, MAS said it would do fundraising to strengthen its balance sheet.

In contrast, AirAsia has posted profits over the last four quarters, tapping strong demand for air travel in Southeast Asia. It is also planning IPOs in Bangkok and Indonesia to expand in the region where carriers like Lion Air and JetStar are seeking to dominate.

Analysts said at the moment there was no meaningful partnership between AirAsia and MAS, except for the joint procurement of jet fuel cargoes.

"They are welcome to unwind the deal. But what's key is, would this save MAS? Would previously terminated routes be restated?," said Ahmad Maghfur Usman, a transport analyst with OSK Investment Bank.

"Definitely, AirAsia benefits in the near term because of the route cuts. It is tough to say what exactly benefits MAS because the detail of the collaboration has yet to be announced. But over the longer term, through shared resources, both carriers will benefit." - Reuters



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Transport Minister: No info on status of MAS-AirAsia share swap

KUALA LUMPUR (March 13): The Transport Ministry said it has no information on the latest on the AIRASIA BHD []-MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) share swap deal.

Speaking at the sidelines of the 6th World Cargo Symposium, Transport Minister Datuk Seri Kong Cho Ha said on Tuesday that he had yet to receive any decision or reports on the development of the matter.

Asked if the share swap deal was not final, Kong said: "That is a decision that has to be made by the related companies and Khazanah (Nasional Bhd). I can't comment anything now because I don't have any information.”

"What I know is the MoT has not received any information that the deal has been cancelled," he said.

On the recent cutting of routes with the latest by AirAsia X to Christchurch, Kong said it was a business decision of the airline.



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Stocks to watch: Kimlun, PFCE, SIG Gases, Gamuda

KUALA LUMPUR (March 13) : The Malaysian stock market which saw a downward correction on Monday, is likely to find support on Tuesday from a still-liquid market amid positive domestic news flow ahead of the country’s impending general election .

Analysts said the existing uptrend in the FBM KLCI was still intact as the domestic backdrop is still flush with liquidity and foreign funds are still pouring into the local market.

“The FBM KLCI still has more legs” TA Securities Holdings Bhd head of research Kaladher Govindan wrote in a note on Monday.

On Monday, news of China’s economic slowdown dragged Asian stock markets lower. These include updates that the world’s second largest economy’s exports growth coming in at 18.4% in February, way below street estimates of a 31.1% expansion, according to Bloomberg.

A slowdown in China does not bode well for Asian exporting countries where stock indices had reacted negatively to the updates.

Japan’s Nikkei 225 which fell 0.4% to 9,889.86 and Taiwan’s Taiex which was down 1.1% to 7927.55 and Singapore’s Straits Times Index retreated 0.03% to 2962.18. The FBM KLCI of 30 blue chip stocks fell 0.9% or 14.25 points to close at 1,564.75.

Stocks to watch on Tuesday include Kimlun Corp Bhd, PFCE Bhd, SIG Gases Bhd, GAMUDA BHD [], MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and AIRASIA BHD [].

Kimlun Corporation Bhd has secured two contracts worth RM151.61 million for housing projects in Johor Bahru.

It had accepted a RM114.70 million contract from S P Setia Bhd’s unit Bukit Indah (Johor) Sdn Bhd for the CONSTRUCTION [] of service apartments and ancillary buildings.

It also secured a RM36.90 million contract from Keck Seng (Malaysia) Bhd to build 244 houses in Johor Bahru, Johor. The estimated date of completion is September 2013.

Ceramic products maker PFCE is acquiring the entire equity interest in its single largest shareholder PFC Engineering Sdn Bhd for RM300 million under an all share deal which will transform the acquirer into an oil and gas support services provider. PFC Engineering owns 40% of PFCE.

Shares of PFCE last closed at 70 sen on Friday, prior to the suspension of the stock’s trading on Monday. PCFE will resume trading on Tuesday.

SIG Gases Bhd is teaming up with a unit of Iwatani Corporation, Japan to set up a joint venture company to set up facilities in Samalaju Industrial Park, Bintulu, Sarawak.

The JV would pave the way for SIG Gases and Iwatani to be strategic business partners to set up the facilities in Samalaju to produce and supply of liquid products and compressed gases to customers in Sarawak.

RHB Research Institute Sdn Bhd had reduced its fair value for Gamuda shares by 2.8% from RM3.89 to RM3.78. The downward revision factors in potential earnings from the Klang Valley Mass Rapid Transit project into the research firm’s valuation for Gamuda’s construction business, RHB said. Gamuda shares, however, rose three sen to RM3.70.

The Edge weekly, quoting sources, reported that the share swap between the major shareholders of MAS and AirAsia could be unraveled following resistance from the Malaysian Airline System Employees’ Union. MAS shares declined two sen to RM1.36 on Monday while AirAsia fell four sen to RM3.59.



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