MMC-Gamuda JV firm to spend over RM100m on tunnel boring machines

IPOH (Dec 17): MMC Gamuda KVMRT (T) Sdn Bhd (MGKT) will spend over RM100 million on refurbishing and upgrading its tunnel boring machines.

The 50:50 joint venture firm of MMC Corp Bhd and Gamuda Bhd is the underground work package contractor for the MRT project Line 1.

MGKT's head of tunneling Ng Hau Wei said the refurbishment and modification works of the tunnel boring machines are in preparation for its next tunneling job.

"We estimate the amount of direct works will cost over RM100 million," he told a media briefing here at their refurbishment plant.

He said the works included the storage and preservation of the boring machines.

According to Ng, MGKT will partner German firm Herrenknecht AG to undertake the necessary works for 10 tunnel boring machines, the same ones which were deployed for MRT Line 1.

Under the agreement, Herrenknecht AG will collaborate with local steel works and heavy engineering specialist Waiko Engineering Works Sdn Bhd to jointly carry out the machine refurbishment works.

Ng foresees the tunneling business in the Southeast Asia region will grow and he said MGKT is looking for more tunneling jobs.

"It is defintely growing if you look at Malaysia and Singapore, and even at Hong Kong. We hope the trend will be positive from now on," he said.

Malakoff Intl buys indirect stake in Bahrain power, desalination plant

KUALA LUMPUR (May 11): MMC CORPORATION BHD []'s 51%-owned subsidiary Malakoff International Ltd (MIL) has acquired the entire issued and paid up capital of IP Middle East Holding Co Ltd (IPME) from International Power Holdings Ltd (IPR) for US$113.4 million (RM348 million).

In a filing to Bursa Malaysia Securities on Friday, MMC Corp said that as a result of the acquisition, MIL will hold an indirect 40% equity interest in Hidd Power Company B S C (c) Bahrain ("HPC") through IPME, which owns a 57.1% equity interest in IPSUM Hidd Holding Co Ltd, which in turn owns a 70% equity interest in HPC.

"HPC is the owner and operator of a 'Build, Own and Operate' power generation and water desalination plant in Bahrain," it said.

The filing confirmed a report by The Edge Financial Daily on May 3, which said that Malakoff Corp had acquired a 40% stake in Hidd Power Co (HPC), a power and water generation provider located in Bahrain.The deal was signed in Bahrain on Monday, citing reports by the Gulf Daily News and the Bahrain News Agency.



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MMC plans to list Malakoff in 2013

KUALA LUMPUR (May 8) : MMC CORPORATION BHD [] (MMC) plans to list Malakoff Corporation Bhd next year as prospects for the company remain bullish, said its group managing director Datuk Hasni Harun.

"We are looking at the possibility of another key subsidiary, Malakoff going for public listing next year," he said in a statement on Tuesday.

Hasni explained that its immediate focus was to list its subsidiaries as part of an effort to unlock value of its stable of assets.

He added that Gas Malaysia Bhd's listing exercise would be completed by the second quarter of this year.

The company's positive growth in 2011 is expected to remain bullish after MMC and joint venture company, GAMUDA BHD [] were awarded the RM8.28 billion contract for tunneling works for the underground portion of the Klang Valley MRT.

"We are encouraged by the positive results for 2011, demonstrating our commitment in delivering growth to our shareholders. We have been registering consistent revenue growth at a compounded annual growth rate of 43.6% over the past 10 years, underpinned by continuous improvements in our operations and achievements in securing key infrastructure projects,” he said.



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MMC Corp could divest part of controlling stake in Malakoff Corp, says MD

KUALA LUMPUR (May 8): MMC Corp Bhd's planned relisting of 51% subsidiary Malakoff Corp Bhd could involve an offer for sale of MMC's stake in Malakoff and sale of new shares in the subsidiary.

Its group managing director Datuk Hasni Harun said on Tuesday that the the firm could divest a minimum of 25% of its 51% controlling stake in Malakoff which owns power plants.

Hasni said the proceeds from Malakoff's relisting would be used to pare down MMC's debt and raise fresh capital for the parent company.



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KLCI opens higher, blue chips lead

KUALA LUMPUR (May 4): The FBM opened higher on Friday, lifted by gains at select blue chips.

The FBM KLCI rose 2.96 points to 1,586.13 at 9am.

Gainers led losers by 84 to 38 while 74 counters traded unchanged. Volume was 19.99 million shares valued at RM21.55 million.

Meanwhile, global stocks and crude oil fell on Thursday after data showing tepid growth in the U.S. services sector raised concerns about the economic recovery a day before a highly anticipated labor market report for April, according to Reuters.

Stocks turned lower, government debt pared losses and the U.S. dollar trimmed gains against the yen after the Institute for Supply Management said its services sector index fell to 53.5 in April from 56.0 the previous month, it said.

U.S. stocks fell on Thursday as economic data sent mixed signals on the recovery a day before the April payrolls report, while shares of Green Mountain plunged after poor results.

Slower-than-expected growth in the dominant U.S. services sector drove the day's trading. The retail sector dragged the market lower after several chains, including Target Corp and Gap Inc, fell after missing April sales estimates.

MIDF Research in a note Friday said bot its own and consensus FBM KLCI earnings growth for this year were expected to be at around mid-teens, i.e. 16.2% and 16.6% respectively, supported by (i) decent organic earnings growth performance, as well as (ii) absence of lumpy abnormal losses.

“Furthermore, we believe the current liquidity-driven rally has not yet ended despite recent difficulty of the KLCI to sustain itself above the 1,600 points levels,” it said.

The research house said that with the risk-on mood still prevailing on Wall Street, as attested by the main benchmark which is stealthily approaching its pre-2008 highs, it may eventually help the markets in this region to resume their upward momentum.

“Hence we expect to see further upside to the local market with an “encore rally” in the coming months.

“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,” it said.

On Bursa Malaysia, Aeon led the gainers and rose 40 sen to RM10.20, Petronas Dagangan and Top Glove gained 20 sen each to RM19.50 and RM4.70, Orient 12 sen to RM6.80, Petronas Chemicals 10 sen RM6.65, Genting eight sen to RM10.58, Lafarge Malayan Cement and MMC Corp up sen each to RM7.39 and RM2.78, and KLK six sen to RM23.78.



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KLCI dips to below 1,580-level, blue chips drag

KUALA LUMPUR (April 25): The FBM KLCI closed below the 1,580-point level on Wednesday, reversing its gains earlier in the morning session, weighed by losses including Genting, Tenaga, CIMB, KLK and Petronas Dagangan.

The index fell 2.93 points to 1,579.35.

Market breadth was weak with 405 losers, 315 gainers and 346 counters trading unchanged. Volume was 1.47 billion shares valued at RM1.53 billion.

Meanwhile, global shares rose on Wednesday ahead of the U.S. Federal Reserve's policy meeting, due mainly to signs of good demand for euro zone sovereign debt before a German bond sale, and some strong corporate earnings, according to Reuters.

Markets could take their cues from several planned public speeches by European Central Bank officials, which will be scrutinised for any signs it would consider more liquidity operations if the euro zone's problems worsened, it said.

At the regional markets, Japan’s Nikkei 225 rose 0.98% to 9,561.01, Taiwan’s Taiex added 0.86% to 7,563.18, and the Shanghai Composite Index gained 0.75% to 2,406.81 and Singapore’s Straits Times Index added 0.20% to 2,980.19.

Meanwhile, Hong Kong’s Hang Seng Index lost 0.15 % to 20,646.29 and South Korea’s Kospi shed 0.07% to 1,961.98.

Among the decliners on Bursa Malaysia, BAT fell 28 sen to RM55.12, KLK and TH PLANTATION []s lost 16 sen each to RM23.82 and RM2.65, CSL down 15 sen to RM1.48, UMS 14 sen to RM1.66, Yeo Hiap Seng 13 sen to RM2.88, Toyo Ink, Tanjung Offshore and MMC Corp down 12 sen each to RM1.36, 78 sen and RM2.62 respectively, while Quality Concrete lost 11 sen to RM1.24.

Utopia was the most actively traded counter with 186.1 million shares done. The stock added one sen to 9.5 sen.

Other actives included Ariantec, Ramunia, CSL, Metronic, Astral Supreme, HWGB and JCY.

Meanwhile, the gainers included Panasonic, UMWE, The Store, NSOP, SPB, Batu Kawan, Cepco, TDM and Scientex.



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KLCI edges down 0.1% at mid-day break

KUALA LUMPUR (April 25): The FBM KLCI edged down 0.1% at the mid-break on Wednesday in choppy trade, weighed by losses at key blue chips including Genting, Tenaga and Petronas-linked counters.

The benchmark index was down 0.81 of a point to 1,581.47 at the mid-day break.

Gainers trailed losers by 271 to 302, while 318 counters trade unchanged. Volume was 777.12 million shares valued at RM621.37 million.

The ringgit weakened 0.04% to 3.0638 versus the greenback, crude palm oil futures fell RM3 per tonne to RM3,460, crude oil gained 21 cents per barrel to US$103.76 and gold added 10 cents an ounce to US$1,642.38.

Meanwhile, Asian shares rose on Wednesday, buoyed by firm U.S. corporate earnings, signs of an improving U.S. housing market, and healthy demand for euro zone sovereign debt, while investor focus shifted to the Federal Reserve's policy meeting.

Markets will be looking for the Fed's economic assessment and clues to future monetary policy, including the probability of a third round of quantitative easing, when it ends its two-day meeting later on Wednesday.

At the regional markets, Japan’s Nikkei 225 gained 0.98% to 9,560.47, Hong Kong’s Hang Seng Index edged up 0.08% to 20,693.10, the Shanghai Composite Index rose 0.33% to 2,396.68, Taiwan’s Taiex gained 0.83% to 7,561.07, South Korea’s Kospi was up 0.23% to 1,967.99 and Singapore’s Straits Times Index was up 0.09% to 2,976.93.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Wedneday said the FBM KLCI declined 1.52 points to close at 1,582.28 on Tuesday.

“Its resistance areas of 1,582 and 1,609 will cap market gains, whilst the weaker support areas are located at 1,562 and 1,579.

“Despite the US markets’ better tone last night, we may be in for another day of heavy selling here,” he said.

On Bursa Malaysia, Petronas Dagangan was the top loser and fell 20 sen to RM19.08, Tradewinds PLANTATION []s fell 15 sen to RM5.51, UMS 13 sen to RM1.67, Yeoh Hiap Seng 12 sen to RM2.89, Aeon Credit 11 sen to RM9.87, MMC Corp 10 sen to RM2.64, TH Plantations nine sen to RM2.72, Tanjung Offshore 8.5 sen to 81.5 sen and Rapid fell eight sen to RM2.49.

Meanwhile, Genting and Tenaga fell four sen each to RM10.52 and RM6.49, KLK eight sen to RM23.90 and Petronas Gas fell six sen to RM16.88.

Utopia was the most actively traded counter with 108.85 million shares done. The stock added one sen to 9.5 sen.

Other actives included Ariantec, Ramunia, CSL, Metronic, JCY, Karambunai and Astral Supreme.

Gainers included Panasonic, UMW, TDM, KPJ shares and warrants, Pintaras, Ekovest, MPI and Carlsberg.



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Stocks to watch: MMC Corp, Gamuda, Destini Prima, building materials

KUALA LUMPUR (April 21): Stocks on Bursa Malaysia could trade range bound next week as investor sentiment remains edgy with the global economic outlook situation still remaining hazy at best, underpinned by the disappointing U.S. economic data last week stirring doubts about the strength of the recovery of the economic giant.

However, the local market could see some excitement over developments from the Klang Valley Mass Rapid Transit's (MRT) project, which could spur activities for building materials players as well.

Among the stocks that could be in focus are MMC Corp Bhd, GAMUDA BHD [] and Destini Prima Bhd.

The MMC Corp Bhd-GAMUDA BHD [] joint venture (JV) has accepted the RM8.28 billion Klang Valley Mass Rapid Transit's (MRT) underground works package.

In separate statements to the exchange last Friday, MMC and Gamuda said their equally-owned JV entity MMC Gamuda KVMRT (T) Sdn Bhd had secured the contract from Mass Rapid Transit Corp Sdn Bhd (MRT Corp) on Thursday.

Destini Prima Bhd, which was formerly known as SATANG HOLDINGS BHD []) has secured a two-year contract worth RM7.90 million from the Ministry of Defence Malaysia.

The company said on April 20 that its wholly owned unit Destini Prima Sdn Bhd (formerly known as Satang Jaya Sdn Bhd) had entered into a contract with MinDef to supply Anti-Tank Ammunition 40mm Rocket Propelled Grenade (RPG) for the arm for a period of two (2) years commencing from 30 April 2012 to 31 March 2013.

On thee outlook for the local market, MIDF Research head of equity Syed Muhammed Kifni said that the extended streak of net purchases of Bursa-listed shares by foreign investors that began in mid-February came to an end in the second week of April.

Subsequently, he said there was a waning strength of average foreign net purchases which conceivably underlies the difficulty of the FBM KLCI to sustain itself above the 1,600 points levels during the past weeks.

The ember of Euro debt crisis which recently re-flared in Spain may have offered the fundamental excuse for some investors to turn ‘risk-off’, he said.

Nonetheless, Syed Muhammed said still healthy internal factors helped provide a backstop against the feeble external dynamics.

“Hence the local market undercurrent is expected to remain positive and the benchmark index should again attempt to knock against the psychological 1,600 points ceiling in the coming days.

“Moreover the US Fed is anticipated to keep the key rates unchanged during its midweek meeting, thus we expect the FBM KLCI to continue trading range bound this week between its immediate technical support and resistance of 1,580 points and 1,610 points respectively,” he said.



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MMC-Gamuda JV secures RM8.28 billion MRT job

KUALA LUMPUR (April 20): The MMC Corp Bhd-GAMUDA BHD [] joint venture (JV) has accepted the RM8.28 billion Klang Valley Mass Rapid Transit's (MRT) underground works package.

In separate statements to the exchange on Friday, MMC and Gamuda said their equally-owned JV entity MMC Gamuda KVMRT (T) Sdn Bhd had secured the contract from Mass Rapid Transit Corp Sdn Bhd (MRT Corp) on Thursday.

"The underground works package comprises the design and CONSTRUCTION [] of tunnels, seven underground stations and other associated works in connection therewith for an approximate length of 9.5km traversing from Semantan north portal to Maluri south portal.

"The articles of agreement between MRT Corp and the JV shall be executed in due course," MMC and Gamuda said.



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KLCI edges higher in early trade

KUALA LIMPUR (March 30): The FBM KLCI trended higher in early trade on Friday, lifted by select blue chips including Petronas-linked stocks and index-linked PLANTATION [] counters.

At 9.05am, The FBM KLCI was up 4.17 points to 1,589.61.

Gainers led losers by 96 to 49, while 115 counters traded unchanged. Volume was 67.54 million share valued at RM23.14 million.

Among the gainers, BAT rose 28 sen to RM56.80, SapuraCrest 11 sen to RM4.91, Tradewinds nine sen to RM9.72, IOI Corp and PPB eight sen each to RM5.35 and RM16.88, Petronas gas six sen to RM16.80, while Petronas Chemicals, MMCCOrp, Maxis and Keck Seng added five sen each to RM6.73, RM2.85, RM6.05 and RM4.10 respectively.

Decliners included Dutch Lady, Utusan Malaysia, Genting, MMHE, Ewei, AFG, Astino, petronas Dagangan and Carotech.

Carotech was the most actively traded counter with 10.43 million shares done. The stosk fell two sen to 3 sen.

Other actives included Trinity, TMS, Ariantec, IFCA MSC, Caley, Nextnation and Winsun.



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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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MMC, Gamuda in focus after MRT projects

KUALA LUMPUR (March 20): MMC Corp and Gamuda’s securities provided some life into the otherwise lacklustre market on Tuesday as investors stayed mostly on the sidelines in line with the cautious regional markets.

The FBM KLCI closed up 4.02 points or 0.26% to 1,577.62, lifted by gains in IOI Corp and Tenaga. Turnover was 2.14 billion shares valued at RM1.76 billion. There were 314 gainers, 431 losers and 376 counters unchanged.

Hong Kong’s Hang Seng Index fell 1.08% to 20,888.20, Shanghai Composite Index lost 1.38% to 2,376.84, Taiwan’s Taiex shed 0.89% to 7,972.70 but Singapore’s Straits Times Index added 0.42% to 3,002.73.

Market sentiment was cautious as reflected in the broader market where declining stocks led advancers. While there was some fund support for key stocks, trading activity was heavy in penny stocks and lower liners.

The KLCI is one of the laggards among the key regional markets, with the index up 6.27% in US dollar terms year-to-date compared with STI’s 16.55%, Hang Seng Index’s 9.87% and Shanghai Composite’s 7.77%.

IOI Corp and Tenaga rose five sen each to RM5.29 and RM6.54, pushing up the index by 1.39 points.

MMC added 15 sen to RM2.95, pushing the index up by 0.57 of a point. Gamuda rose 12 sen to RM3.74 and Gamuda-WD 10 sen to RM1.45.

The securities of the companies saw active trade after their joint venture won the underground package for the Sungai Buloh-Kajang MRT line with the bid of RM8.2 billion.

Hartalega was the top gainer, up 26 sen to RM8.19, Ta Ann 13 sen to Rm5.88, HLFG 12 sen to RM12, and Batu Kawan 10 sen to RM18.60.

Share prices of Metronic Global and its 17%-owned unit Ariantec Global slipped in active trade. Ariantec fell 3.5 sen to 10.5 sen and it was the most active with 121.23 million shares done while Metronic eased two sen to 11 sen.

Focus, which was queried over the sharp increase in the price of its securities and volume, saw its share price ending the day two sen higher at 21.5 sen. Focus-WA added four sen to eight sen and Focus-WB two sen to 14.5 sen.

Among the index-linked stocks, Petronas Chemicals fell three sen to RM6.71, Public Bank two sen to RM13.62 and RHB Cap three sen to RM8.

Aeon was the top loser, down 25 sen to RM9.13 with 20,500 shares done. Cypark lost 11 sen to RM1.87 and United PLANTATION []s 10 sen to RM25.



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Gamuda, MMC advance on MRT project award

KUALA LUMPUR (March 20): Shares of GAMUDA BHD [] and MMC Corp Bhd rose in Tuesday’s afternoon session after their joint venture won the underground package for the Sungai Buloh-Kajang MRT line with the bid of RM8.2 billion.

At 3.11pm, Gamuda was up nine sen to RM3.71 with 8.66 million shares done while Gamuda-WD added eight sen to RM1.43. MMC rose nine sen to RM2.89 with 1.73 million shares done.

The FBM KLCI was 2.61 points higher at 1,576.21. Turnover was 1.55 billion shares valued at RM935.55 million. There were 268 gainers, 414 losers and 333 stocks were unchanged.

Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) said on Tuesday it had awarded the package to the MMC-Gamuda JV because of the consortium’s strengths in design, CONSTRUCTION [] plant and tunneling equipment, tunneling and station construction methodology.

“The consortium also offered the most competitive price at RM8.2 billion to design and build the 9.5km MRT underground tunnel and seven underground stations,” it said.



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MMC-Gamuda JV clinches underground package for KL MRT

KUALA LUMPUR (March 20): The joint venture of MMC CORPORATION BHD [] and GAMUDA BHD []’s (MMC-Gamuda JV) clinched the underground package for the Sungai Buloh-Kajang MRT line with the bid of RM8.2 billion.

Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) said on Tuesday it had awarded the package to the MMC-Gamuda JV because of the consortium’s strengths in design, CONSTRUCTION [] plant and tunneling equipment, tunneling and station construction methodology.

“The consortium also offered the most competitive price at RM8.2 billion to design and build the 9.5km MRT underground tunnel and seven underground stations,” it said.

MRT Corp said the final evaluation showed that MMC-Gamuda JV was the best evaluated tenderer that offered the technical criteria and the best bid which was 3.4 per cent lower than the second lowest offer.

It said the decision was made at a one stop procurement committee meeting chaired by Prime Minister Datuk Seri Najib Tun Razak at Parliament on Monday.

Elaborating on the factors why the MMC-Gamuda JV was picked, MRT Corp said the JV was selected based on the consortium’s strengths in design, construction plant and tunneling equipment, tunneling and station construction methodology especially in the challenging karstic limestone formation, and for the construction plan and resources it committed.

“MMC-Gamuda JV also stood out because of its past experience in handling underground works in the same ground conditions and for putting together the same team which handled the Stormwater Management and Road Tunnel (SMART) project,” it said.

Works for the underground package will be directly supervised by MRT Corp.

The MMC-Gamuda JV was one of five companies or joint ventures which pre-qualified under a stringent set of criteria to tender the underground package of the MRT project. The other tenderers were Hyundai-Gadang-Chengal Jaya Joint Venture, Taisei Corp, Sinohydro Group Ltd, and the China Railway Group Ltd.



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MMC-Gamuda awarded RM8.2b MRT job

Mass Rapid Transit Corp has awarded a RM8.2 billion tunnelling contract to a joint venture between MMC Corp and Gamuda Bhd.

The single largest package in the mass rail network project was awarded to the companies following a competitive bid with four other tenderers, Mass Rapid Transit, or MRT, said in an e-mailed statement today. -- Bloomberg



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Stocks to watch: Sin Heng Chan, Ramunia, MMC, asiaEP

KUALA LUMPUR (March 13) : Malaysian stocks could encounter downward pressure on Wednesday as investors turned cautious on the technical dynamics of the local market. Analysts believe any gains on the FBM KLCI could be stifled by profit taking amid a downside bias perception on the local benchmark.

In a note on Tuesday, Hong Leong Investment Bank Bhd research head Low Yee Huap said the research firm had changed its stance from positive to cautious as it foresees more profit taking consolidation in the local stock market.

Low said “the bears look stronger now” against a backdrop of weaker technical readings in the FBM KLCI.

On Tuesday, anticipation of better US retail sales numbers had spurred Asian stock markets and crude oil prices. Notable gainers include Hong Kong’s Hang Seng which rose 0.97% to close at 21,339.7 points and Australia’s S&P / ASX 200 which climbed 1.21% to 4247.62 while Taiwan’s Taiex was up 1.31% to 8031.51.

Malaysia’s FBM KLCI of 30 blue chip stocks which rose as much as 0.3% to an intraday high of 1569.15 points, however pared earlier gains to settle with a 0.73 point loss to 1564.02 points.

Stocks to watch on Wednesday include Sin Heng Chan (M) Bhd, RAMUNIA HOLDINGS BHD [], MMC CORPORATION BHD [],asiaEP Resources Bhd, Lafarge Malayan Cement Bhd , GEFUNG HOLDINGS BHD [] and YTL Corp Bhd.

Shares of Sin Heng Chan surged on Tuesday, prompting a query from Bursa Malaysia securities over the unusual market activity.

Its share price closed up 29.5 sen to RM1.10 with 8.48 million units done. However, the company said it was unaware of any reason for the unusual market activity.

Ramunia’s unit has secured a RM23.62 million contract from Aquaterra Energy Ltd to fabricate two wellhead support structures.

Gas Malaysia Bhd is seeking a further extension of six months until Oct 6 from the Securities Commission to complete the proposed listing exercise. MMC Corporation said Gas Malaysia had applied to the SC for its approval for the six-month extension.

West River Capital Sdn Bhd (WRC) has rejected TSM GLOBAL BHD []’s request for better offer terms including the price and this has seen the latter resolving to consider other offers.

TSM said WRC’s offer price would remain at RM1.25 per share.

asiaEP’s major shareholder Tian Ee Intertrade Sdn Bhd has made a requisition for an EGM following the company’s decision to terminate its planned private placement, the firm said in statement to Bursa Malaysia on Tuesday. asiaEP shares rose 0.5 sen to close at nine sen.

RHB Research Institute has upgraded LAFARGE MALAYAN CEMENT BHD [] from an underperform to market perform and revised upwards its fair value by 25% from RM5.94 to RM7.43. The research house has also raised its earnings forecast for the cement producer by between 3% and 21% for FY12 to FY14 period. Lafarge shares rose five sen to RM7.26.

Bahamas-based Golden Knights International Ltd emerged a a major shareholder in marble products manufacturer Gefung Holdings Bhd with a 5.11% stake. This follows Golden Knights’ acceptance of its entitlement from Gefung’s rights issue. Gefung shares added one sen to 17.5 sen

YTL Corp Bhd saw heavy trading after its unit YTL Communications Sdn Bhd was reported to be in the midst of implementing the 1Bestarinet project in government schools. The initiative involves the setting up of Internet access to enable virtual learning environment in public schools. Shares of YTL Corp were up two sen to RM1.68 with some 21 million shares done.



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Gas Malaysia seeks 6-month extension until Oct 6 for listing

KUALA LUMPUR: Gas Malaysia Bhd is seeking a further extension of six months until Oct 6 from the Securities Commission to complete the proposed listing exercise.

MMC CORPORATION BHD [] said on Tuesday that Maybank Investment Bank Bhd had, on behalf of Gas Malaysia, submitted an application to the SC for its approval for the six-month extension.

“Notwithstanding the above and as announced on Feb 17, 2012, MMC Corp was advised by Gas Malaysia that the proposed listing is expected to be completed by the second quarter of 2012,” it said.



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Market Commentary

The FBM KLCI index gained 5.44 points or 0.34% on Monday. The Finance Index increased 0.53% to 14204.47 points, the Properties Index dropped 0.05% to 1065.4 points and the Plantation Index down 0.19% to 8661.77 points. The market traded within a range of 8.59 points between an intra-day high of 1594.72 and a low of 1586.13 during the session.

Actively traded stocks include TMS , NICORP, GOCEAN, KHSB, CSL, DRBHCOM-CF, DRBHCOM, COASTAL-CA, DRBHCOM-CG and YTL. Trading volume decreased to 1448.66 mil shares worth RM1760.84 mil as compared to Friday’s 1630.35 mil shares worth RM1934.59 mil.

Leading Movers were CIMB (+15 sen to RM7.48), GENTING (+16 sen to RM10.76), TENAGA (+6 sen to RM6.31), PBBANK (+6 sen to RM13.76) and MMCCORP (+9 sen to RM2.84). Lagging Movers were YTL (-4 sen to RM1.74), KLK (-18 sen to RM23.40), GENM (-3 sen to RM3.87), AXIATA (-1 sen to RM5.16) and PETCHEM (-1 sen to RM6.89). Market breadth was negative with 391 gainers as compared to 414 losers. -- JF Apex Securities Bhd



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RHB Group provides RM1.38bn loan for RM6b Tg Bin power plant

KUALA LUMPUR (March 1): RHB Bank and RHB Investment Bank are providing RM1.38 billion to partly finance the CONSTRUCTION [] of the RM6 billion coal-fired power plant in Tanjung Bin, Johor.

The financing of the 1,000 MW plant is managed by Malakoff Corporation Bhd’s unit Tanjung Bin Energy Issuer Bhd

RHB Investment Bank is the mandated lead arranger whilst RHB Bank is the lender in the syndicated facilities. RHB Investment Bank is also a joint lead manager in the Sukuk programme.

According to a statement issued by RHB Group, Malaysia's energy demand is projected to grow at 3.4% annually, which is double the 2010 level with the rollout of the large scale infrastructure and construction projects under the 10th Malaysia Plan.



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MMC Corp FY11 pre-tax profit jumps to RM1bn

KUALA LUMPUR (Feb 29): MMC Corp Bhd chalked up RM1.002 billion in pre-tax profit for the financial year ended Dec 31, 2011 from RM555.7 million registered in 2010.

Revenue increased to RM9.337 billion compared with RM8.564 billion recorded previously.

For 4Q2011, MMC Corp posted a higher pre-tax profit of RM376.72 million against RM46.86 million a year ago. Revenue increased to RM2.412 billion, from RM2.18 billion.

MMC Corp said the better results were driven by the energy and utilities segment. The group declared a four sen per share dividend for the just-ended financial year. - Bernama



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