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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Stocks to Watch CIMB, Muhibbah, S P Setia Bhd

KUALA LUMPUR (Apr 2): The FBM KLCI could extend its gains on Tuesday after finishing 0.5% or 7.45 points higher at an all-time high of 1,603.78 on Monday, riding on the improved sentiment at global markets after surprisingly firm China manufacturing data on Monday.

MIDF Research had on Monday raised its end-2012 target for the FBM KLCI to 1,600 points from the earlier 1,530 points.

The tendency to "buy on weakness" among the local institutions will help our equity market to outperform its regional peers during a cyclical downturn, the research house said in a note on Monday.

World stocks rose on Monday, underpinned by surprisingly firm China manufacturing data on Monday, though further evidence that the world's second biggest economy is slowing, along with eurozone debt jitters, kept demand for riskier assets in check, according to Reuters.

Wall Street was set to start the second quarter flat as the focus turned to equivalent US figures later in the day, with investors keen to see if recent momentum in the world's largest economy could be maintained, it said.

Meanwhile, European shares had eked out modest gains at the start of the second quarter after data last Sunday showed China's official Purchasing Managers' Index (PMI), which covers large factories, jumped to an 11-month high of 53.1 in March, beating forecasts, Reuters said.

Among the stocks that could be in focus on Bursa Malaysia are CIMB Investment Bank (CIMB), MUHIBBAH ENGINEERING (M) BHD [] and S P Setia Bhd.

CIMB is acquiring most of the Asia Pacific cash equities and associate investment banking of the Royal Bank of Scotland (RBS) for the sum of RM849.4 million, group CEO Datuk Seri Nazir Razak said on Monday.

The assets are valued at the effective price-to-book ratio is about 0.98 times.

Nazir said that the deal transforms CIMB into an Asian Pacific investment bank, and that the exercise will also see the merged businesses absorbing 350-400 RBS staff to join CIMB.

Muhibbah announced that its 50:50 joint venture (JV) with Australia's Monadelphous Group Ltd has won an additional contract for the CONSTRUCTION [] and commissioning of a shiploader associated with the Wiggins Island Coal Export Terminal Pty Ltd ("WICET"), worth A$60 million (RM192 million).

Muhibbah had on Dec 23 last year said the JV won a A$330 million contract for the construction of an approach jetty and ship berth in Queensland, Australia.

The facilities will be constructed for a project by WICET, which is privately-owned and funded by a group of Queensland coal exporter.

S P Setia has roped in Rimbunan Hijau Group as a joint venture (JV) partner to develop and operate an industrial park in China's Guangxi province.

In a statement to the Bursa Malaysia on Monday, S P Setia said both companies have formed JV entity Qinzhou Development (M) Consortium Sdn Bhd. The JV entity has, in turn, signed a JV framework agreement with Qinzhou Jingu Investment Co Ltd to develop the China-Malaysia Qinzhou Industrial Park on an approximately 13,590.5 acres (5,436 ha) site.



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Muhibbah Australian JV gets additional RM192m contract

KUALA LUMPUR (April 2): MUHIBBAH ENGINEERING (M) BHD [] has announced that its 50:50 joint venture with Australia’s Monadelphous Group Ltd has won an additional contract for the CONSTRUCTION [] and commissioning of a shiploader associated with the Wiggins Island Coal Export Terminal Pty Ltd’s (“WICET”) worth A$60 million (equivalent to approximately RM192 million).

Muhibbah had on Dec 23 last year said the JV won a A$330 million (RM1.06 billion) contract for the construction of an approach jetty and ship berth in Queensland, Australia.

The facilities will be constructed for a project by WICET, which is privately owned and funded by a group of Queensland coal exporters.

Muhibbah said on Monday the contract was scheduled to start immediately and be completed by first quarter of calendar year 2014.

The Contract is expected to contribute positively to its earnings for the current and future financial year, it said.



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CIMB Research has technical buy on Muhibbah at RM1.40

KUALA LUMPUR (March 7): CIMB Equities Research has a technical buy on Muhibbah Engineering at RM1.40 at which it is trading at a price-to-book value of 1.0 times.

It said on Wednesday that the recent correction dragged prices towards its 30-day SMA but the bulls have since made a comeback.

“A short term base is formed at RM1.31, its recent swing low. This reflects a change in underlying tone from sell to buy,” it said.

CIMB Research said the indicators also show signs of improvement. MACD signal line is poised for a positive crossover while RSI is above the 50pts mark.

“As long as the RM1.31 level remains steady, any pullback is an opportunity to accumulate. Next resistance levels are RM1.53 and RM1.64. Always place a stop at below the RM1.30 level, just in case,” it said.



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CIMB Research ups Muhibbah to trading buy, TP RM1.63

KUALA LUMPUR (Feb 3): CIMB Equities Research said the Asia Petroleum Hub (APH) has taken a positive twist as a CIMB Bank-led restructuring is reportedly in the works.

The research house said on Friday that if successful, it would bring in the additional funds needed to complete the project.

“For Muhibbah, it would mean no provisions and possibly, additional APH works. We raise EPS and RNAV for a recent project award. Our target price goes up from RM1.24 to RM1.63 as we narrow our RNAV discount from 50% to 40%.

“We upgrade from Hold to Trading Buy given the possibility of a favourable outcome for APH in the next one to two months,” it said.

On Thursday, Singapore’s Straits Times reported that APH was set to get a financial lifeline from a consortium led by its main banker, CIMB Bank. CIMB has lent more than RM800 million to APH.

Local bankers involved in the restructuring of APH said that protracted shareholding disputes which hobbled the project have been resolved and CIMB has committed to providing the necessary funding to complete the project.

The news report said as part of the settlement hammered out in recent days, APH’s current shareholders have agreed to surrender their equity holdings.

It is unclear if they received any financial compensation. The project is about two-thirds completed and the new consortium hopes to finish it within 18 months.

The news report quoted a banker as saying that taking over a project for a bank is a little out of the box, but this is a very viable business and there is no reason why CIMB shouldn't own it as a major investment.



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CIMB Research maintains trading buy on Muhibbah Engineering

KUALA LUMPUR (Jan 9): CIMB Equities Research is maintaining a trading buy call on Muhibbah Engineering Bhd following the latest corporate development in Asian Petroleum Hub Sdn Bhd (APH).

Last Friday, CIMB Bank Bhd, which is the financier of the APH project, has appointed PricewaterhouseCoopers (PwC) as receivers and managers over APH to facilitate a restructuring exercise.

CIMB Research said on Monday while APH has been put under receivership again, this not necessarily bad news for Muhibbah as it could lead to an alternative solution that would raise the additional funds needed to complete the project.

“The stock is trading above our worst-case target price (full provisions) of 81 sen, based on an unchanged 40% RNAV discount. The share price should be supported by potential positive newsflow on contract awards. Maintain Trading Buy,” it said.



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Stocks to watch: Harvest, Can-One, Astral Supreme, Muhibbah

KUALA LUMPUR (Jan 7): Stocks on Bursa Malaysia could start on a cautious note next week, Jan 9, on continuing worries about a looming recession in Europe and the eurozone crisis, but fresh corporate news could provide some support.

On the local political front, the court is set to deliver its ruling on Parti Keadilan Rakyat (PKR) advisor Datuk Seri Anwar Ibrahim’s sodomy trial on Monday morning.

On Friday, the police agreed to allow PKR supporters to gather peacefully at the car park outside the Jalan Duta court complex here when the court is scheduled to deliver the verdict in Anwar's sodomy case.

On Wall Street, U.S. stocks rose in the first week of 2012, even though news that the U.S. jobless rate neared a three-year low did not whet interest in equities on Friday.

For the week, the Dow Jones Industrial Average rose 1.2%, the S&P gained 1.6% and the Nasdaq added 2.7% for the week, with most gains coming from cyclical sectors tied to growth.

Reuters reported on Friday that fears a capital black hole are spreading over the euro zone's banking sector threatens to overshadow the first meeting in 2012 of German Chancellor Angela Merkel and French President Nicolas Sarkozy next week to discuss the region's debt crisis.

European banks technically have until Jan. 20 to say how they will raise the estimated 115 billion euro ($147.12 billion)of capital needed by the end of June to repair balance sheets devastated by the euro zone's sovereign debt crisis.

But investors' nerves have become frayed after seeing Italian bank UniCredit forced to deeply discount a planned one-for-one equity rights issue, and calls for more details on how others plan to raise funds are set to grow, Reuters said

At Bursa Malaysia, among the stocks to watch include HARVEST COURT INDUSTRIES BHD [], CAN-ONE BHD [], KIAN JOO CAN FACTORY BHD [], ASTRAL SUPREME BHD [] and Muhibbah Engineering Bhd.

Bursa Malaysia Securities Bhd is removing the trading curbs on Harvest Court Industries Bhd’s shares and warrants with effect from Monday – nearly eight weeks after they were imposed on Nov 16.

Can-One Bhd won the legal tussle to acquire the 146.13 million Kian Joo Can Factory Bhd held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour on Thursday.

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

Astral Supreme secured a €2.96 million (RM12.45 million) contract from Germany’s Sphairon Technologies GmbH.

What would interest investors is that based on the company’s annual revenue for financial year ended Dec 31, 2010 of RM13.36 million, the order value was about 93.2% of the latest annual revenue.

Muhibbah’s shares could be given a boost after CIMB Bank Bhd, which is the financier of the Asia Petroleum Hub Sdn Bhd (APH) project, has appointed PricewaterhouseCoopers (PwC) as receivers and managers over APH to facilitate a restructuring exercise.

Muhibbah maintained the APH project was viable and it was “working with various financiers, including CIMB, and other relevant parties towards an amicable solution”.



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CIMB Bank picks PwC as receivers, managers over Asia Petroleum Hub project

KUALA LUMPUR (Jan 6): CIMB Bank Bhd, which is the financier of the Asia Petroleum Hub Sdn Bhd (APH) project, has appointed PricewaterhouseCoopers (PwC) as receivers and managers over APH to facilitate a restructuring exercise.

Muhibbah Engineering Bhd said in a statement to Bursa Malaysia on Friday that the APH project was viable and it was “working with various financiers, including CIMB, and other relevant parties towards an amicable solution”.

To recap, APH had awarded an RM820 million contract for Muhibbah to undertake marine piling and jetty works. Payments later stalled and about RM371 million was outstanding.

In mid-June 2011, news reports that APH had been placed under receivership by CIMB Bank sent Muhibbah’s shares tumbling 32 sen to RM1.52 from RM1.90 in a single day.

Investors were understandably concerned whether Muhibbah would be able to collect RM371 million owed by to it by APH.



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Muhibbah Australian JV secures RM1.05b contract

KUALA LUMPUR: Muhibbah Engineering (M) Bhd has announced that its 50:50 joint venture with Australia’s Monadelphous Group Ltd has won a A$330 million (RM1.06 billion) contract for the construction of an approach jetty and ship berth in Queensland, Australia.

The facilities will be constructed for a project by Wiggins Island Coal Export Terminal Pty Ltd (Wicet), which is privately owned and funded by a group of Queensland coal exporters.

“This marks another new era for Muhibbah group’s expansion of marine-related business into advanced countries such as Australia,” the company said in an announcement to Bursa Malaysia yesterday.

The contract, which involves the first stage of the project by Wicet, was awarded to the Monadelphous Muhibbah Marine JV.

“The joint venture brings together Muhibbah’s global expertise in the delivery of marine and port construction works and Monadelphous’ expertise in the civil construction of large-scale projects for Australian resources customers,” it said.

The JV will start work on the project immediately and to be completed by the first quarter of 2014.

The contract involves the construction of an offshore plant and infrastructure comprising a 1.8km approach jetty and transfer tower platform, wharf, wharf conveyor, berthing and mooring dolphins, ship access platforms, jetty conveyor and transfer tower. It will increase the company’s order book to RM3.84 billion from RM2.79 billion recorded as at Nov 18, which comprised RM1.98 billion from its infrastructure construction division, RM609 million from the crane division and RM200 million from shipyard.

Wicet aims to build the export facility to meet global demand for thermal and metallurgical coal.

Stage one of the project carries an annual coal export capacity of 27 million tonnes, which will grow to 80 million tonnes once the terminal is fully developed.


This article appeared in The Edge Financial Daily, December 23, 2011.



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FBM KLCI up at mid-morning, but stays shy of 1,500-level

KUALA LUMPUR (Dec 23): The FBM KLCI rose on Friday and stayed in positive territory in line with regional markets and the overnight gains at Wall Street, but stayed shy of the crucial 1,500-level in thin trade.

The FBM KLCI was up 2.77 points to 1,494.23 at 10am, lifted by gains at select blue chips.

Gainers led losers by 223 to 126, while 213 counters traded unchanged. Volume was 198.4 million shares valued at RM105.92 million.

Asian stocks edged up on Friday, as signs of a strengthening economy in the United States encouraged a modest year-end rally in riskier assets, according to Reuters.

Wall Street stocks had risen for a third straight day on Thursday, leaving the S&P 500 index virtually flat for the year, after data showed new claims for unemployment benefit dropped to their lowest in 3-1/2 years, it said.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.11% to 18,582.37, Taiwan’s Taiex gained 1.62% to 7,079.36, South Korea’s Kospi added 1.15% to 1,868.69, Singapore’s Straits Times Index was up 0.38% to 2,674.83 and the Shanghai Composite Index edged up 0.14% to 2,189.33.

Meanwhile, Japan’s stock markets were closed for a national holiday.

BIMB Securities Research in a note Dec 22 said better than expected job data in the US and higher than expected injection of funds by the ECB had positive cumulative impact on the equity markets all round.

Consequently European bourses registered an all round gain of around 1% whilst the Dow Jones Industrial Average climbed 62 points to remain above the 12,000 mark, it said.

The research house said it looked like focus on the Eurozone had been diverted temporarily in light of the tension in the middle-east where crude prices were again pushed nearer to the US$100/barrel again.

In Asia, regional markets closed on a mixed note from the lack of fresh leads, it said.

“As for Malaysia, the FBM KLCI is inching ever closer to the psychological 1,500 mark with a 6.5 point gain. Although we believe selective buying on blue chips to continue, the extended weekend may thwart any aggressive push on the upside.

“Nonetheless, we remain sanguine that the index to breach the 1,500 level,” it said.

Among the gainers, Nestle was up 30 sen to RM56.90, BAT added 26 sen to RM48.14, AIC 15 sen to RM1.30, Dutch Lady and CIMB 10 sen each to RM23.40 and RM7.10, KLK and Hai-O up eight sen each to RM22.08 and RM1.90, while CCM and Muhibbah rose seven sen each to RM1.49 and RM1.15.

Perisai was the most actively traded counter with 9.53 million shares done. The stock added 4.5 sen to 73 sen.

Other actives included Astral Supreme, Sanichi, Envair, Utopia, UEM Land, LFE Corp and KNM.

Decliners included Y&G, Bina Goodyear, HELP, Kretam, Scomi Engineering, MESB, WCT and Bernas.



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Muhibbah surges after winning Aussie jobs

Muhibbah Engineering (M) Bhd, a Malaysian builder, gained the most in two months in Kuala Lumpur trading after its joint venture with Australia’s Monadelphous Group Ltd won a A$330 million (US$334 million) contract to construct a coal jetty and ship berth in Queensland.

The stock surged 6.5 per cent to RM1.15 at 9:02 a.m. local time, set for its steepest increase since Oct 19. -- Bloomberg



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Muhibbah active, up on RM1.05b Aussie job

KUALA LUMPUR (Dec 23): Muhibbah Engineering Bhd shares rose in early trade on Friday after the company and its Australian joint venture partner Monadelphous Group Limited landed a RM1.05 billion (AUD330 million) job to build an approach jetty and ship berth in Queensland.

At 9.05am, Muhibbah rose six sen to RM1.14 with 1.17 million shares done.

Muhibbah said on Thursday that Monadelphous Muhibbah Marine JV (MMM) had secured the contract to build the jetty and ship berth associated with the Wiggins Island Coal Export Terminal Pty Ltd’s (WICET) Project at Gladstone in Queensland.

MMM is a 50:50 joint venture between Muhibbah CONSTRUCTION [] Pty Ltd, a wholly owned subsidiary of Muhibbah in Australia and Monadelphous Engineering Pty Ltd, a wholly owned subsidiary of Monadelphous Group Ltd.



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Muhibbah wins RM1b Aussie job

Muhibbah Engineering (M) Bhd says its 50:50 joint venture with Monadelphous Group Ltd has won a RM1.05 billion contract in Australia.

Monadelphous Muhibbah Marine JV will build approach jetty and ship berth associated with the Wiggins Island Coal Export Terminal Pty Ltd (WICET)'s project at Gladstone in Queensland.

"The MMM joint venture brings together Muhibbah's global expertise in the delivery of marine and port construction works and Monadelphous's expertise in the civil construction of large-scale projects for Australian resources customers.

"This also marks another new era for Muhibbah Group' sexpansion of marine-related business into advanced countries such as Australia," it said in a filing to Bursa Malaysia yesterday.

The job includes building offshore plant and infrastructure such as a 1.8km approach jetty and transfer tower platform, wharf, berthing and mooring dolphins, ship access platforms and jetty conveyor.

The work, which is part of stage one of the WICET project, is scheduled to start immediately and be completed by early 2014.

WICET is privately owned and funded by a group of Queensland coal exporters to build an export facility for thermal and metallurgical coal.

The new terminal will be at Golding Point, to the west of the existing RG Tanna terminal in Gladstone. It will be built in stages to match forecast coal export demand and operated by Gladstone Ports Corp.

Stage one has a contracted annual coal export capacity of 27 million tonnes. Once fully developed, the terminal will have an annual capacity of more than 80 million tonnes.



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Stocks to watch: Muhibbah, Perisai Petroleum, MRCB, HELP, technology-related stocks

KUALA LUMPUR (Dec 22): Trading on Bursa Malaysia on Friday ahead of the extended weekend is likely to be cautious, given the muted reaction of regional markets on Thursday following the take-up of nearly 490 billion euros from the European Central Bank at its first-ever offer of three-year loans on Wednesday.

Although the FBM KLCI closed higher on Thursday, the broader market remained weaker with losers edging gainers, a trend that will likely be repeated on Friday.

Among the stocks that could be in focus today are Muhibbah Engineering Bhd, PERISAI PETROLEUM TEKNOLOGI BHD, MALAYSIAN RESOURCES CORPORATION BHD, HELP INTERNATIONAL CORPORATION BHD and TECHNOLOGY-related stocks.

Muhibbah Engineering Bhd and its Australian joint venture partner Monadelphous Group Limited have landed a RM1.05 billion (AUD330 million) job to build an approach jetty and ship berth in Queensland.

Muhibbah said on Thursday that Monadelphous Muhibbah Marine JV (MMM) had secured the contract to build the jetty and ship berth associated with the Wiggins Island Coal Export Terminal Pty Ltd’s (WICET) Project at Gladstone in Queensland.

MMM is a 50:50 joint venture between Muhibbah CONSTRUCTION [] Pty Ltd, a wholly owned subsidiary of Muhibbah in Australia and Monadelphous Engineering Pty Ltd, a wholly owned subsidiary of Monadelphous Group Ltd.

Perisai expects contribution from its mobile offshore production unit (MOPU), which it acquired through Garuda Energy (L) Ltd to be realised by FY12.

Its managing director Zainol Izzet Ishak said on Thursday that the acquisition would be finalised by the end of this year and will start contributing to the group's bottom line from the first day of its operation as the group's asset.

MRCB’s unit MRCB Engineering Sdn Bhd was awarded a RM13.93 million contract to upgrade the Sabah Employees Provident Fund (EPF) building in Kota Kinabalu.

HELP’s net profit for the fourth quarter ended Oct 31, 2011 fell 44.6% to RM3.59 million from RM6.47 million a year earlier, due to new student recruitment affected by delays in obtaining licences and approvals for operations.

Revenue for the quarter rose to RM28.44 million from RM27.33 million in 2010.

HELP proposed a final gross dividend of two sen per share of 50 sen each, amounting to RM2.13 million for the financial year ending Oct 31, 2011.

For the financial year ended Oct 31, HELP’s net profit fell 31.6% to RM13.06 million from RM19.1 million in 2010, on the back of increased revenue of RM108.06 million from RM105.2 million a year earlier.

Meanwhile, OSK Investment Research on Thursday upgraded the technology sector to Neutral and said that better HDD pricing could help mitigate losses from the Thailand flood.

It said that against the backdrop of the massive works in progress to restore operations following Thailand’s crippling floods, the worst could well be over.

The research said it had become less bearish on the hard-hit HDD components sector given the ongoing accelerated restoration as well as potential price hike over the immediate term, which could mitigate the earnings pressure from forgone capacity in the short term.

The research house upgraded Eng Teknologi and Notion Vtec from Sell to Neutral, and upped its recommendation on JCY International to Trading Buy from Sell.



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Muhibbah’s Australian JV gets RM1.05b job in Queensland

KUALA LUMPUR (Dec 22): Muhibbah Engineering Bhd and its Australian joint venture partner Monadelphous Group Limited have landed a RM1.05 billion (AUD330 million) job to build an approach jetty and ship berth in Queensland.

Muhibbah said on Thursday that Monadelphous Muhibbah Marine JV (MMM) had secured the contract to build the jetty and ship berth associated with the Wiggins Island Coal Export Terminal Pty Ltd’s (WICET) Project at Gladstone in Queensland.

MMM is a 50:50 joint venture between Muhibbah CONSTRUCTION [] Pty Ltd, a wholly owned subsidiary of Muhibbah in Australia and Monadelphous Engineering Pty Ltd, a wholly owned subsidiary of Monadelphous Group Ltd.

Muhibbah said the contract included the construction of offshore plant and infrastructure including a 1.8km approach jetty and transfer tower platform, wharf, wharf conveyor including the drive and take up tower, berthing and mooring dolphins, ship access platforms, jetty conveyor (including the section onshore) and transfer tower.

It said the work, which is part of stage one of the project, was scheduled to commence immediately and be completed by the first quarter of the 2014 calendar year.

Muhibbah said the contract was expected to contribute positively to its earnings for the current and future financial year.

Monadelphous Group Limited (Monadelphous) is an Australian firm listed on the Australian Securities Exchange, an engineering group providing construction, maintenance and industrial services to the resources, energy and infrastructure industry sectors.



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CIMB Research has technical sell on Muhibbah at RM1.02

KUALA LUMPUR (Dec 12): CIMB Equities Research has a technical sell on Muhibbah Engineering at RM1.02 at which it is trading at a FY13 price-to-earnings of 4.4 times and price-to-book value of 0.8 times.

It said on Monday Muhibbah Engineering broke below its triangle pattern last week.

“If the candles fail to push back above the support-turned-resistance trend line soon, we expect prices to fall towards 95 sen and 90 sen,” it said.

CIMB Research said the near term outlook does not look encouraging as prices are trading below all its key moving averages. Resistance is seen at RM1.05-RM1.08.

“Technical landscape looks subdued. MACD signal line has slipped into the negative territory while RSI has also hooked downward,” it said.



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KL shares close lower

Shares of the following companies had unusual moves in Malaysia trading. Stock symbols are in parentheses and prices are as of the close in Kuala Lumpur.

The FTSE Bursa Malaysia KLCI Index fell 1.1 per cent to 1,431.55, its lowest since Oct. 12. The gauge dropped 1.6 per cent this week, its fourth weekly decline. The market will be shut on Nov. 28 for a public holiday.

Ann Joo Resources Bhd, a steelmaker, declined 4 per cent to RM1.90, its lowest level since Oct. 4. The company had a third-quarter net loss of RM24.5 million (US$7.7 million), compared with a profit of RM10.4 million a year earlier.

Coastal Contracts Bhd, a shipbuilder, slid 3.7 per cent to RM1.85, the steepest retreat since Nov. 1. Third-quarter profit dropped to RM36.7 million from RM53.6 million a year earlier.

Genting Bhd, a casino, power and plantation group, dropped 2.5 per cent to RM10.02, its lowest close since Oct. 25. Third-quarter net income fell 22 per cent from a year earlier to RM597.2 million.

MISC Bhd, the world’s largest owner-operator of liquefied natural gas tankers, sank 5.4 per cent to RM5.80, its lowest since Oct. 11. MISC said it will stop operating container vessels after the unit lost US$789 million in three years. The move will result in a one-off US$400 million charge this year, MISC said in a statement.

MNRB Holdings Bhd, a reinsurance company, dropped 7 per cent to RM2.66, the most since November 2008. MNRB had a second-quarter net loss of RM5.9 million, compared with a profit of RM21.3 million a year earlier.

Muhibbah Engineering (M) Bhd, a builder, added 1.9 per cent to RM1.09. Third-quarter net income doubled to RM16.8 million from a year earlier. -- Bloomberg



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Muhibbah Engr jumps on doubling Q3 profit

Muhibbah Engineering (M) Bhd, a Malaysian builder, rose the most in a month in Kuala Lumpur trading after saying its profit doubled in the third-quarter to RM16.8 million.

Its shares jumped 3.7 per cent to RM1.11 at 9:16 a.m. local time, set for their biggest increase since Oct. 27. -- Bloomberg



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Muhibbah Engr posts higher Q3 pre-tax profit

Muhibbah Engineering (M) Bhd registered a higher pre-tax profit of RM33.25 million for the third quarter ended Sept 30, 2011 compared with RM21.3 million chalked up in the same period last year.

In a filing to Bursa Malaysia today, it said revenue for the period rose to
RM523 million compared with RM289 million previously. -- Bernama



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CIMB Research has technical buy on Muhibbah

KUALA LUMPUR: CIMB Equities Research has a technical buy on Muhibbah Engineering at RM1.21 at which it is trading at a FY12 price-to-earnings of 6.1 times and price-to-book value of 1.0 times.

It said on Thursday, Oct 20 Muhibbah Engineering broke out of its medium term downtrend channel recently. The rebound also lifted prices above its 30-day and 50-day SMAs.

“Looking at the chart, we think there is still room to the upside. Prices are likely to charge towards RM1.28 and RM1.36 in the near term. If these levels are taken out, the 200-day SMA (at RM1.45) will be the next target,” it said.

CIMB Research said the MACD signal line has returned to the black while RSI is also above the 50pts mark. The positive technical reading reflects its stance on the stock.

“Traders with higher risk appetite may start to nibble now. However, always put a stop at below RM1.11, just in case,” it said.