Maybank issues RM2.1 billion subordinated notes

KUALA LUMPUR (May10): MALAYAN BANKING BHD [] said it had issued RM2.1 billion of Subordinated Notes with tenure of 12 years on a 12 non-callable 7 basis under its Subordinated Note Programme of up to RM7 billion in nominal value.

The banking group had on Feb 21 this year proposed to establish a subordinated programme of up to RM7 billion in nominal value.

In a filing Thursday, Maybank the Subordinated Notes were priced at 4.25% and would qualify as Tier 2 capital of Maybank subject to compliance with the requirements as specified in the Risk Weighted Capital Adequacy Framework and Capital Adequacy Framework for Islamic Banks (General Requirements and Capital Components) guideline by BNM.

“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,” it said.



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KLCI finishes in red on pre-election sentiment

KUALA LUMPUR (April 27) : The FBM KLCI stayed in the red till the market closed on Friday as pre-election sentiment gets an upper hand in dictating the direction of local equities. This comes ahead of the much-anticipated Bersih 3.0 rally on Saturday.

The less-optimistic sentiment across the local bourse was despite a stronger overnight close across US markets as global investors responded positively to improving US real estate and corporate earnings updates.

At 5pm, the FBM KLCI fell 11.89 points to close at 1,567.8. Across the exchange, 1.3 billion shares worth RM1.4 billion were traded, leading to 286 gainers versus 409 decliners.

Among top gainers, NCB HOLDINGS BHD [] was up 49 sen to RM4.39, while MALAYAN BANKING BHD [] added 12 sen to RM8.64.

Decliners include NESTLE (M) BHD [] which fell 80 sen to RM55.10 while BRITISH AMERICAN TOBACCO (M) [] Bhd was down 70 sen to RM54.80.

Most active was Ariantec Global Bhd which gained two sen to 25.5 sen with some 300 million shares done.



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Maybank among top gainers, trades ex-dividend

KUALA LUMPUR (April 27) : MALAYAN BANKING BHD [] (Maybank) rose as much as 1% as investors chased the stock to capitalise on its dividends. The stock trades ex-dividend on Friday and the final lodgement date falls on this Wednesday.

Shares of Maybank added nine sen to RM8.61 before trading lower at RM8.60 at 10.52am with some 1.5 million shares changing hands.

Maybank plans to reward shareholders with a final cash dividend of 36 sen a share less 25% tax for the six-months ended December 31, 2011. Note that Maybank had changed its financial year end from June 30 to December 31 in July last year.



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Stocks to Watch MAHB, TA Global, Maybank, Aliran Ihsan, MPI

KUALA LUMPUR (April 26): The Malaysian stock market may take the cue from domestic concerns ahead of the coming general election, as investors assess the impact of the much-anticipated Bersih 3.0 rally on Saturday.

Analysts said these local factors could have the upper hand in dictating the direction of the FBM KLCI, despite more optimistic sentiment from the global backdrop.

Trading on the local bourse was volatile on Thursday, as the benchmark erased gains to sink into the red before closing up with a 0.34-point gain to 1,579.69. That could be indicative of trading dynamics on Friday.

Stocks to watch on Friday are Malaysia Airports Holdings Bhd (MAHB), TA Global Bhd, MALAYAN BANKING BHD [] (Maybank), ALIRAN IHSAN RESOURCES BHD [], and MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI).

Airport operator MAHB said first quarter (1Q) net profit rose 7% from a year earlier, as revenue growth mitigated the impact of higher operating expenses. MAHB said net profit came to RM102.73 million in the quarter ended March 31, 2012, against RM96.09 million previously. Revenue grew 6% to RM657.71 million from RM617.77 million.

TA Global, a property developer and investor, is acquiring the Movenpick Karon Beach Resort in Thailand from Saudi Arabia-based Kingdom Holding Co for US$90.21 million (RM276.94 million), a move which will see the acquirer making its initial venture into Thailand's hotel industry. TA Global said it is purchasing the entire stake in two wholly-owned units of Kingdom Holding — namely, Kingdom 5-KR-194 Ltd and Kingdom 5-KR-195 Ltd, under which the hospitality assets are held.

Maybank and water-treatment specialist Aliran Ihsan shares will trade ex-dividend on Friday. Maybank plans to reward shareholders with a final cash dividend of 36 sen a share, less 25% tax for the six-months ended Dec 31, 2011. Note that Maybank had changed its financial year end from June 30 to Dec 31 in July last year.

Aliran Ihsan plans to pay a single-tier first interim dividend of 8.5 sen a share for financial year ending Dec 31, 2012.

Semiconductor manufacturer MPI said it posted a net loss of RM7.43 million in the third quarter (3Q) ended March 31, 2012 against a net profit of RM5.05 million a year earlier, as revenue fell 18% to RM275.76 million from RM334.82 million. The company said revenue fell as the group registered lower sales in major markets — including European and Asian countries — apart from the US. MPI said it plans to reward shareholders with a second interim tax-exempt dividend of five sen a share for financial year ending June 30, 2012.



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KLCI slips into the red at mid-day break

KUALA LUMPUR (April 19): The FBM KLCI gave up some ground to slip into negative territory at the mid-day break on Thursday, in line with the generally tepid sentiment at key regional markets.

Asian shares and the euro traded in tight ranges on Thursday ahead of a Spanish bond sale seen as a key test of investors' risk appetite amid renewed concerns over the euro zone's debt crisis, according to Reuters.

Meanwhile, U.S. stocks slipped on Wednesday, a day after Wall Street's best gains in a month, as uninspiring earnings from tech bellwethers IBM and Intel gave investors a reason to take profits, according to Reuters

The FBM KLCI fell 2.80 points to 1,596.06 at 12.30pm, weighed by losses at select blue chips including CIMB, KLK, Maybank and Genting.

Losers beat gainers by 358 to 221, while 311 counters traded unchanged. Volume was 1.02 billion shares valued at RM661.94 million.

The ringgit weakened 0.13% to 3.0686 versus the greenback, crude palm oil futures for the third month delivery fell RM30 per tonne to RM3,449, crude oil shed 11 cents per barrel to US$102.56 while gold lost US$4.50 an ounce to US$1,637.60.

At the regional markets, Japan’s Nikkei 225 fell 0.89% to 9,580.90, the Shanghai Composite Index down 0.14% to 2,377.57, Singapore’s Straits Times Index fell 0.08% to 2,998.17, south Korea’s Kospi lost 0.33% to 1,997.92, Taiwan’s Taiex edged down 0.01% to 7,604.367 while Hong Kong’s Hang Seng Index gained 0.36% to 20,856.40.

Among the major losers on Bursa Malaysia, Dutch Lady lost 38 sen to RM34.60, KLK 24 sen to RM23.96, Country View 21 sen to 61 sen, Tradewinds 16 sen to RM9.66, KESM and SAM Engineering down 12 sen each to RM2.06 and RM3.67, CSL 10 sen to RM1.68, Subur Tiasa eight sen to RM3 and Nice seven sen to 31 sen.

Meanwhile, CIMB lost three sen to RM7.64, Maybank and Genting down two sen each to M8.85 and RM10.80, and DiGi was down one sen to RM3.92.

Ariantec was the most actively traded counter with 143.99 million shares done. The stock was unchanged at 19 sen.

Other actives included Utopia, CSL, metronic, DBE Gurney, Compugates, Iris Corp and Astral Supreme.

Gainers included Can-One, Tan Chong, F&N, Pintaras, Jaya Tiasa, Bintulu Port, Aeon Credit, Utusan and GAB.



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KLCI stays put above 1,600-mark at mid-day break

KUALA LUMPUR (APRIL 18): The FBM KLCI stayed put above the crucial 1,600-point level at the mid-day break on Wednesday, up in tandem with its key regional peers that rose on the back of a firmer overnight close at Wall Street.

Asian shares rose on Wednesday as firm demand at Spanish debt sales, positive U.S. corporate earnings and an improvement in a key German sentiment survey boosted investor confidence in riskier assets, according to Reuters.

The FBM KLCI rose 5.05 points to 1,601.24 at the mid-dy break, lifted by key blue chips including Maybank, CIMB, Sime darby, Axiata and Tenaga.

The broader market sentiment improved with 319 gainers, 297 losers and 310 counters trading unchanged. Volume was 1.43 billion shares valued at RM757.83 million.

The ringgit strengthened 0.04% to 3.0642 versus the greenback, crude palm oil futures for the third month delivery fell RM8 per tonne to RM3,495, crude oil added 19 cents per barrel to US$102.39 while gold rose US$3.13 an ounce to US$1,652.70.

At the regional markets, Japan’s Nikkei 225 rose 1.85% to 9,639.36, Hong Kong’s Hang Seng Index up 1.2% to 20,808.80, the Shanghai Composite Index gained 1.33% to 2,366.11, south Korea’s Kospi rose 1.06% to 2,006.31 and Singapore’s Straits Times Index edged up 0.57% to 3,003.63, while Taiwan’s Taiex was up 0.39% to 7,615.42.

Among the gainers in the morning session, BAT rose 54 sen to RM55, Dutch Lady added 38 sen to RM34.98, SAM Engineering up 27 sen to RM3.86, subur Tiasa 22 sen to RM3.04, Carlsberg 20 sen to RM11.24, Hong Leong Industries 18 sen to RM4.29, while Tong Herr, Panasonic and United PLANTATION []s gained 10 sen each to RM2.49, RM21.70 and RM24.70.

Meanwhile, Maybank and CIMB rose six sen each to RM8.87 and RM7.68, Sime Darby, Axiata and Tenaga were up three sen each to RM9.93, RM5.39 and RM6.54 respectively.

Metronic was the most actively traded counter with 291.81 million shares done. The stock rose four sen to 21.5 sen.

Other actives included Ariantec, SuperComNet, Focus, Naim Indah Corp, Sanichi and SCL.

Decliners included Nestle, Far East, Sarawak Oil Palms, APM, PMB Tech, KLK, UMS, HLFG and SMPC.



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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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KLCI opens at fresh new high

KUALA LUMPUR (April4): The FBM opened at a fresh new all-time high on Wednesday, with its momentum still intact despite the retreat at most key regional markets following the weaker overnight close at Wall Street after the after the U.S. Federal Reserve said it was less inclined to provide more economic stimulus.

The FBMKLCI was up 0.91 of a point to 1,607.54 at 9am, lifted by gains at blue chips including Genting, Maybank and IOI Corp.

Gainersled losers by 17 to 11, while 38 counters traded unchanged. Volume was 4.09 million shares valued at RM2.74 million.

Meanwhile, Asian shares eased on Wednesday after the minutes from the U.S. Federal Reserve's March meeting suggested the bank was less likely to take further stimulus measures, leaving investors looking for more clues over global growth outlook, according to Reuters.

The minutes showed Fed policymakers, while noting signs of slightly stronger growth, remained focused on a still elevated jobless rate. But the minutes suggested the appetite for further quantitative easing, so-called QE3, has waned significantly in light of improving U.S. economy, it said.

Among the early gainers were BAT that rose 32 sen to RM56.54, Genting up four sen to RM11.08, Boustead two sen to RM5.48, while IOI Corp, Maybank, Telekom, Leader, MBSB, Muhibbah and Mudajaya added one sen each to RM5.37, RM8.96, RM5.39, RM1.07, RM2.29, RM1.35 and RM2.91, respectively.

Iris Corp was the most actively traded counter with 1.4 million shares done. The stock shed half a sen to 18 sen.

Other actives included Ariantec, TMS, IFCA MSC, Hubline, Voir and Telekom.



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KLCI stays above 1,590-level at mid-day break

KUALA LUMPUR (March 30): the FBM KLCI stayed above the 1,590-point level at the mid-day break on Friday, lifted by blue chips including Maybank, CIMB, Petronas gas and KLK.

Meanwhile, Asian shares steadied on Friday as the region's benchmark indices marked their best first quarter in over 20 years and investors awaited a meeting on a possible euro zone firewall and Chinese data that may dictate market trends in coming months.

The FBM KLCI rose 6.44 points to 1,591.88 at the mid-day break.

Gainers trailed losers by 268 to 317, while 354 counters traded unchanged. Volume was 563.26 million shares valued at RM612.26 million.

The ringgit was unchanged at 3.0683 versus the US dollar; crude palm oil futures for the third month delivery fell RM26 per tonne to RM3,430, crudd oil added 62 cents per barrel top US$103.40 while godl shed 45 cents an ounce to US$1660.13.

On Bursa Malaysia, KLK added 42 sen to RM24.56, Takaful up 25 sen to RM3.37, Carlsberg 18 sen to RM10.38, Batu Kawan 14 sen to RM18.74, SEGi 11 sen to RM1.83, Petronas Gss 10 sen to RM16.84, Maybank nine sen to RM8.89, CIMB seven sen to RM7.67 and Ibraco eight sen to RM1.29.

Carotech was the most actively traded counter with 812.94 million shares done. The stiock fell 2.5 sen to 2.5 sen.

Other actives included Metronic, Focus, Key West, Tiger Synergy, SuperComnet, Ariantec, IFCA MSC and CIMB.

Decliners included Dutch Lady, genting, PPB, Shangri-La, TDM, Delloyd, Rapid, HELP, Kluang and Teo Seng.



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KLCI breaches 1,590-level at mid-morning

KUALA LUMPUR (March30): the FBM KLCI trended higher at mid-morning on the final trading day of the first quarter of 2012, while regional markets drifted marginally lower on fears of global growth slowdown.

At 10am, the FBM KLCI was up 4.89 points to 1,590.33, lifted by select blue chips including KLK and Maybank.

Gainers led losers by 186 to 189, while 235 counters traded unchanged. Volume was 252.32 million shares valued at RM154.22 million.

Meanwhile, Asian shares steadied on Friday as investors eyed key events that could dictate market trends in coming months and as the first quarter drew to a close after a stellar performance from equities, according to Reuters.

Still, investor sentiment across asset classes is being undermined by fears of a potential growth slowdown, with European troubles back in focus and concerns about China, the world's second largest economy, it said.

At the regional markets, Japan;s Nikkei 225 shed 0.26% to 10,088.00, Hong Kong’s Hang Seng Index down 0.59% to 20,488.40, the Shanghai Composite Index dipped 0.40% to 2,261.15, Taiwan’s taiex fell 0.24% to 7,853.39, south Korea’s Kospi edged down 0.05% to 2,013.40, and Singapore’s Straits Times index fell 0.50% to 3,009.11.

BIMB Securities Research in a note March 30 said that from it was observing at the moment actual figures have to at least beat forecasts for investors to stay upbeat.

It said this was exactly the scenario Wall Street was facing as investors remain unimpressed despite the lower unemployment claims (but higher than forecast) and a 3% GDP growth for 4Q11.

“For this, the Dow Jones Industrial Average had a mixed session before edging marginally by 20 points to 13,146,” it said.

The research house said European bourses were sold down after S&P cautioned that Greece may have to undergo more restructuring.

“Asian stocks were also broadly lower from weaker European markets but the FBM KLCI was one of the handfuls ended the day on positive territory.

“The index was up 1.7 points to jump just above the immediate resistance of 1,585. We expect market to be lacklustre today amid some downside risks and lack of fresh leads with 1,580 as the immediate support level,” it said.

Among the gainers on Bursa Malaysia at mid-morning, KLK rose 38 sen to RM24.52, BAT 28 sen to RM56.80, Sapuracrest, Maybank, Carlsberg and United PLANTATION []s added eight sen each to RM4.88, RM8.88, RM10.28 and RM24.88 respectively, IOI Corp seven sen to RM5.34, while Cypark and Maxis adde six sen each to RM1.92 and RM6.06.

Carotech was the most actively traded counter with 46 million shares traded. The stock fell three sen to 2 sen.

Other actives included Key West, Winsun, SuperComnet, KBB, Trinity, IFCA MSC, Ariantec and TMS.

Decliners at mid-morning included GAB, Genting, Petronas Dagangan, PPB, Hong Leong Bank, HELP, Kluang, UMW, Harrisons and Tradewinds Plantations.



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HDBSVR: KLCI may struggle to tread above 1,580

KUALA LUMPUR (March 30): HwangDBS Vickers Research (HDBSVR) said despite an absence of positive developments, key US equity indices staged a late rebound on Thursday night.

On Wall Street, the key US indices managed to recover from intra-day losses of 0.7%-1.1% before finishing mixed (with changes of between -0.3% and +0.1%) at the closing bell.

“And following yesterday’s resilient performance, which saw the FBM KLCI ending in the positive territory when most regional peers were in the red, our Malaysian bourse will likely experience listless trading today,” it said.

HDBSVR said on the chart, the benchmark index may struggle to tread just above the immediate support line of 1,580 ahead.

Among the counters that could see added action include: (a) Maybank, after its president said the banking group’s net interest margin is expected to contract by 10 basis points this year due to competitive pressures; (b) Crest Builder, which has won a bid to undertake a joint development of a parcel of prime commercial land located at Dang Wangi LRT station with an estimated gross development value of RM220m; and (c) Cypark, following the signing of an MOU on cooperation in the field of waste management and renewable energy in Myanmar.



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RHB Cap top loser in late afternoon

KUALA LUMPUR (March 29): Shares of RHB CAPITAL BHD [] were the top loser in late afternoon trade on Thursday as investors booked recent profits as market sentiment was impacted by the key regional bourses.

At 3.25pm, RHB Cap was down 16 sen to RM7.74. Turnover was 705,100 shares done.

The FBM KLCI was up 0.19 of a point to 1,583.94. Turnover was 1.04 billion shares valued at RM783.45 million. Losers beat gainers 459 to 207 while 325 counters were unchanged.

European and Asian stock markets deepened this week's losses on Thursday after a bearish round of U.S. data in the previous session, with attention fixed on the most testing in a string of recent debt auctions for Italy, Reuters reported.

European shares fell 0.4 percent in early trade, adding to a roughly 1 percent fall on Wednesday and bringing losses since mid-March to more than 3 percent.

Meanwhile, OSK Research had in a recent report on the Malaysian banking sector, said it was maintaining its Neutral stance on the sector at this juncture given the moderating growth outlook for consumer loans, which contribute a hefty 55% of the overall system loans, as well as continued pressure on net interest margins.

“Our top sector picks are CIMB (BUY, FV: RM8.05), Maybank (BUY, FV: RM9.60) and RHB Capital (BUY, FV: RM9.90),” it said.



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Maybank CEO: not looking at ING's stake in Thai TMB

KUALA LUMPUR (March 29): Malaysia's top lender MALAYAN BANKING BHD [] (Maybank) is "not specifically" looking at acquiring ING Groep NV 's $775 million stake in Thailand's TMB Bank Pcl, Maybank's chief executive said on Thursday.

Maybank president and CEO Datuk Seri Abdul Wahid Omar also said the lender was still open to various opportunities in Thailand, which has been "a missing piece" in its Southeast Asian strategy.

Reuters cited sources as saying that ING was putting its 31 percent stake in Thailand's seventh-largest lender for sale as the Dutch financial services group pushed ahead with Asian divestment.

Besides state-owned Korea Development Bank, Malaysia's Maybank was identified as one of the potential suitors for the block. - Reuters



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CIMB Equities Research has technical sell on Maybank at RM8.83

KUALA LUMPUR (March 29): CIMB Equities Research has a technical sell on Malayan Banking at RM8.83 at which it is trading at a FY13P/E of 11.5 times and price-to-book value of 2.0 times.

It said on Thursday that Maybank appears to be forming a large bearish wedge pattern. CIMB Research said prices are now testing the key RM8.80 resistance as this level was tested at least eight times over the course of two and a half years and failed to breakout every time.

“We think this time would not be any different as the indicators are not supportive of a breakout. A throwover towards RM9.00-RM9.10 cannot be ruled out but it is likely unsustainable.

“We think the stock is a sell on rallies with a stop placed above RM9.22. Anything below RM8.64 would suggest that the bears are in command and could send prices falling towards RM8.15 and RM7.75 next,” said CIMB Research.



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Maybank provides option for shareholders on dividends

KUALA LUMPUR (March 28): MALAYAN BANKING BHD [] has approved an option for shareholders to receive the electable portion of their dividends partly in cash and to reinvest the remaining portion into new shares.

It said the board had on Wednesday approved the adoption of an additional option for shareholders for the fourth dividend reinvestment plan (DRP) and all its futures DRPs.

On Feb 23, the board had proposed a final cash dividend of 36 sen per share, less 25% tax (equivalent to 24 sen net dividend) for the six-month period ended Dec 31, 2011 which could be reinvested into new shares.



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KLCI trends marginally higher at mid-morning

KUALA LUMPUR (March 26): The FBM KLCI trended marginally higher on Monday, in line with the moderate gains at the regional markets, following the rise pf US stocks in light volume last Friday, buoyed by rising energy and basic materials shares, as the S&P 500 kept showing resilience even as it posted its second negative week so far this year.

At 10am, the FBM KLCI gained 0.91 of a point to 1,586.74.

Gainers trailed losers by 172 to 197, while 254 counters traded unchanged. Volume was 338.36 million shares valued at RM147.06 million.

Asian shares edged up on Monday, finding some support after losing ground last week on fears of the impact of an economic slowdown in China, and the euro held near a three-week high, according to Reuters.

Equity markets had got off to a flying start in 2012, but have been wobbling since China lowered its growth forecast for the year to 7.5 percent in mid-March, with concerns exacerbated by weak factory data from China and Europe last week, it said.

At the regional markets, the ShangHai Compoite Index gained 0.24% to 2,355.07, Hong Kong’s Hang Seng Index was up 0.15% to 20,700.50, and Singapore’s Sraits Times Index edged up 0.10% to 2,987.1.

Meanwhile, japan’s Nikkei 225 fell 0.11% to 10,022.90, Taiwan’s Taiwex lost 0.92% to 8,001.94 and South korea’s Kospi fell 0.38% to 2,019.12.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on March 26 said the FBM KLCI gained 14.43 points to close at 1,585.83 last Friday.

“The local market rose in small daily spurts, with buying on some selective blue chips as well as obvious penny stock plays. The obvious areas for the FBM KLCI are in the 1,549 to 1,585 zone.

“The next resistance levels of 1,587 and 1,597 may see heavy liquidation activities,” he said.

Meanwhile, ECM Libra research in its Market outlook and strategy for 2Q2012 said that Overall, its 2Q2012 outlook was that the FBM KLCI was toppish at 1,600

The research house said upside was limited based on the FBMKLCI’s relatively high PER, but downside was also limited in the run-up to General Elections.

“In 2H2012, we expect the FBMKLCI to trade in a range of 1500-1600. If the General Election is held in June 2012, whatever outcome we think will lead to a market correction in 3Q2012.

“4Q2012 could see the FBMKLCI recovering to end the year at 1600 as the market looks forward to 2013,” it said.

“We are thus Neutral on all sectors except for an Overweight on CONSTRUCTION [] and Building Materials. Buy IJM, WCT, Lafarge, Lion Industries. In PLANTATION []s, switch from IOI to KLK,” it said on Monday.

CIMB chief economist Lee Heng Guie in his regional ccompass report released on March 26 said global growth risks appeared to be easing, going by 1) the encouraging global indicators, 2) ebbing funding pressure in the financial markets, and 3) receding Greece debt default risks, at least for now.

“While the threat of a financial catastrophe has been averted, stronger financial firewalls are needed to safeguard against the risk of contagion in the eurozone.

“We remain wary of an escalation of geopolitical tension in the Middle East that could trigger a global oil price shock. Emerging markets may also have to contend with volatile capital flows,” he said.

ON Bursa MalaySia, the top gainer at mid-morning was SuperComnet that added 13.5 sen to 43.5 sen, MajuPerak 11.5 sen to 40 sen, Maybank up nine sen to RM8.84, Nestle, Shell, Yinson and Genting up eight sen each to RM55.98, RM10.10, RM1.81 and RM11.08 respectively, while Tradewinds Plantations gained seven sen to RM4.87.

Among the decliners, Petronas Dagangan fell 18 sen to RM18.30, Far East down 15 asen to RM7.40, Tenaga and Tradewinds fell nine sen each to R6/59 and RM9.70, Aeon Credit, Deleum, WCT and KESM fell seven sen each to RM8.60, RM2.51, RM2 respective, while Kein Hin and LPI lost six sen each tp RM45 sen and RM13.94.

The actives included Karambunai, Metronic, Trinity, Ariantec, SAAG, Supercomnet and MaujuPerak.



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Sunway Bhd unit secures RM180m loan from Maybank

KUALA LUMPUR (March 23): Sunway Bhd’s unit Sunway Destiny Sdn Bhd (SDSB) has secured a term loan facility of RM180 million from MALAYAN BANKING BHD [].

Sunway said on Friday the loan was to part finance the cost of building the new Sunway University/Sunway College academic block in Bandar Sunway.



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KLCI edges higher, lifted by bank stocks

KUALA LUMPUR (March 22): The FBM KLCI closed marginally higher on Wednesday, lifted by gains at select blue chips including Maybank, Public Bank, KLK, and BAT while trading volume surged to nearly 3.6 billion shares.

The 30-stock index rose 4.91 points to close at 1,582.53. Gainers beat losers by 384 to 339, while 270 counters traded unchanged. Volume was 3.59 billion shares valued RM1.79 billion following heavy transactions in penny stocks.

However, Asian shares eased on March, as concerns about China's slowing economy dampened the optimism generated by a brightening outlook for the U.S. economy that has been pushing equity markets higher since late last year, according to Reuters.

But financial spreadbetters predicted major European markets, it said.

At the regional markets, Japan’s Nikkei 225 fell 0.55% to 10.086.49, Hong Kong’s Hang Seng Index shed 0.15% to 20,856.63, South Korea’s Kospi lost 0.73% to 2,027.23, while the Shanghai Composite Index gained 0.06% to 2,378.20 and Taiwan’s Taiex rose 0.12% to 7,981.94.

Meanwhile, European stock index futures signalled gains on Wednesday, with stocks set to bounce back from the previous session's pull-back as investors bet U.S. housing data will give further evidence of economic recovery, eclipsing recent worries over Chinese growth, it said.

Among the gainers on Bursa Malaysia, BAT added 78 sen to RM53.20, PPB up 22 sen to RM16.78, Lafarge Malayan Cement, Sarawak Oil Palms and JTI up 17 sen each to RM7.25, RM6.70 and RM6.86 respectively.

Far East and Cepco added 15 sen each to RM7.40 and RM1.80, Metronic 14.5 sen to 25.5 sen, Tasco 12 sen to RM2.14 while Public Bank and KLK up two sen each to RM13.64 and RM23.43, while Maybank added one sento RM8.74.

Metronic was the most actively traded counter with 845.6 million shares done.

Other actives included Ariantec, Ingenuity Solutions, Focus, Tiger Synergy, Hubline, Asia-Bio, and Naim Indah Corp.

Decliners included Hartalega, Aeon Credit, Litrak, GAB, Gamuda, Kluang, United Malacca, SPMC, Allianz and MSM.



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Stocks to watch: Fajarbaru, KLK, CBIP, Focus

KUALA LUMPUR (March 21): Malaysian equities could be subject to profit taking on Wednesday against a lack of domestic catalysts to drive the market.

Analysts said the strength of the FBM KLCI may be curbed as institutional and retail investors lock in their profits ahead of the country’s impending general election, possibly in May or June this year.

On the global backdrop, the spotlight will be on updates from US and China, sentiments from which are crucial drivers for Asian stock markets, they said.

There is a “lack of strong catalysts” to spur the FBM KLCI higher, Hong Leong Investment Bank Research had said in a market outlook.

The FBM KLCI rose 4.02 points or 0.26% to close at 1,577.62 on Tuesday.

Stocks to watch on Wednesday include Fajarbaru Builder Group Bhd, KUALA LUMPUR KEPONG BHD [] (KLK), CB INDUSTRIAL PRODUCT HOLDING [] Bhd (CBIP) and FOCUS DYNAMICS TECHNOLOGIES [] Bhd.

Other companies which would see trading interest are MALAYAN BANKING BHD [] (Maybank), MMC Corp Bhd, GAMUDA BHD [] and CypARK RESOURCES BHD [].

Fajarbaru secured a RM72.92 million contract from Messrs Shaw Plaza Sdn. Bhd to tear down and rebuild the Shaw Parade complex in Kuala Lumpur.

Kuala Lumpur Kepong Bhd (KLK) is exiting its personal care products under the brand name “Crabtree & Evelyn” with the proposed disposal of CE Holdings Ltd for US$155 million (RM465 million).

“The proposed disposal is expected to bring in a gain on disposal of approximately 11.5 sen per share for the financial year ending Sept 30, 2012,” it said.

In a separate statement, KLK said it was expanding its oil palm PLANTATION [] area in Indonesia with the acquisition of PT. Global Primatama Mandiri (PT GM), which has the rights for 7,400 ha of land in, Kalimantan for plantations.

KLK said on Tuesday its subsidiary KL-Kepong Plantation Holdings Sdn Bhd (KLKPH) had entered into two agreements to acquire 90% of PT GM for RM3.60 million.

HwangDBS Vickers Research Sdn Bhd has raised its target price for CBIP, a manufacturer of palm oil mills, by 23% from RM2.43 to RM3 while maintaining its Buy call for the stock.

This takes into account the stock’s attractive valuations at a forward price to earnings ratio of seven times, HDBSVR said. CBIP was up one sen to RM2.45.

Focus Dynamics, in its response to the query, said it is not aware of any factors contributing to the unusual trading patterns of its shares except for a news report speculating on Datuk Raymond Chan Boon Siew’s proposed acquisition of a 25% stake in the energy-efficient electrical control products manufacturer.

Focus Dynamics said its directors, after deliberating on the news report, have informed that Chan is not a placee in the firm’s private placement exercise.

“The board, however, is not in a position to comment on the report about his plans to acquire equity shares of Focus from the open market,” Focus Dynamics said, adding that the company has not received any proposal from Chan to inject oil and gas projects into the firm.

Maybank president and CEO Datuk Seri Abdul Wahid Omar said the financial services provider plans to set up its branch office in Myanmar as soon as foreign banks are given the approval to do so. Shares of Maybank added one sen to close at RM8.73 on Tuesday.

The MMC Corp Bhd-Gamuda Bhd joint venture has clinched the underground package for the Sungai Buloh-Kajang MRT line with an RM8.2 billion bid. MMC shares climbed 15 sen to RM2.95 while Gamuda added 12 sen to RM3.74.

Cypark Resources targeted to generate turnover of about RM45 million from 2013 when the 33 MW solar capacity from its solar plants are completed.



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Maybank gets BNM nod to raise paid-up by 539m new shares

KUALA LUMPUR (March 20): MALAYAN BANKING BHD [] had received Bank Negara Malaysia’s approval to increase its issued and paid-up share capital by up to 539.3 million new shares.

Maybank said on Tuesday the new shares arose from the implementation of the dividend reinvestment plan.

The recurrent and optional dividend reinvestment plan allows shareholders to reinvest the electable portion of their final cash dividend for the six-month financial period ended Dec 31, 2011 of 36 sen per share less 25% taxation into new shares.



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