KLCI closes higher but some pullback expected next week

KUALA LUMPUR (April 6): The FBM KLCI closed higher on Friday, while the few regional markets that were open for trade ended the day in negative territory, as investors stayed on the sidelines ahead of key U.S. jobs data.

China shares ended up 0.2 percent in thin volume on Friday, moving around a key psychological level as investors awaited a slew of economic data next week which could signal possible policy changes, according to Reuters.

The FBM KLCI closed 5.43 points higher at 1,598.87.

Gainers led losers by 457 to 248, while 324 counters traded unchanged. Volume was 1.28 billion shares valued at RM1.14 billion.

At the regional markets, the Shanghai Composite Index added 0.19% to 2,306.55, Taiwan’s Taiex gained 0.87% to 7,706.26, south Korea’s Kospi edged up 0.01% to 2,029.03 while Japan’s Nikkei 225 fell 0.81% to 9,688.45.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said the FBM KLCI was now ripe for a pullback towards a lower sideways range of 1580-1600 level.

“We reckon the equity optimism will take a mild negative turn following a surprised absence of USA stimulus and Spanish revived fiscal concerns with the bond yields climbing to their highest level in five month (Spanish 10-Year bond rose to 5.8%).

“This has stoked concerns regarding the European debt crisis, boosted safe-haven appeal of the USA dollar and weighed on local risk-taking sentiment,” he said.

DR Nazri said he also expects the bullish sentiment to take a pause after the Federal Reserve meeting minutes earlier this week indicated reduced prospects for more quantitative easing.

ON Bursa Malaysia, BAT was the top gainer and added 48 sen to RM55.46, Dutch Lady added 30 sen to RM35.80, Tradewinds PLANTATION []s and BLD Plantations rose 25 sen each to RM5.44 and RM9.40, Tradewinds up 18 sen to RM9.97, TDM 17 sen to RM4.95, SMPC and Naim Holdings 15 sen each to RM2.12 and RM2.05, Mulpha 14 sen to 60 sen and MAHB 13 sen to RM5.89.

Naim Indah Corp was the most actively traded counter with 149.52 million shares done. The stock rose 8.5 sen to 57 sen.

Other actives included Metronic, SuperComNet, Ariantec, CSL, Focus, Tiger Synergy, Green Ocean, Ingenuity Solutions and TMS.

Decliners included F&N, Batu Kawan, Shell, HUp Seng, Hong Leong Industries, Takaful, HDBS, Aeon and Tiong Nam Logistics.



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KLCI snaps losing streak, but stays shy of 1,600-level at mid-day

KUALA LUMPUR (APRIL 6): The FBM KLCI snapped its two-day losing streak on Friday and rose at the mid-day break, while key regional markets were mostly closed for the Easter weekend holidays.

The FBM KLCI rose 6.29 points to 1,599.73 at the mid-day break.

Gainers led losers by 319 to 233, while 306 counters traded unchanged. Volume was 595.27 million shares valued at RM502.46 million.

The ringgit strengthened .07% t0 3.0625 versus the US dollar; crude palm oil futures for the third month delivery rsoe RM14 per tonne to RM3,546, crude oil was US$103.31 per a barrel (as of April 4 closing) whiel gold fell US$1.18 an ounce to US$1,630.05.

Asian shares struggled on Friday, with many markets closed for the Easter holiday, as investors stayed on the sidelines ahead of key U.S. jobs data, avoiding risk after rising yields in weaker euro zone countries refuelled concerns about the region's debt issues, according to Reuters.

Worries about Spain's rising bond yields were offset somewhat by fresh U.S. data on Thursday that provided more evidence of a recovering labour market, raising prospects of the non-farm payrolls report due later on Friday being solid, it said.

At the regional markets, Japan’s Nikkei 225 fell 1.05% to 9,665.28, Taiwan’s taiex added 0.60% to 7,685.52 and South Korea’s Kospi shed 0.25% to 2,023.75.

BIMB Securities Research in a note April 6 said that European stocks climbed in the final hour of trading on Thursday, after new on US initial jobless claims fell to their lowest levels in four years last week.

Meanwhile Spain’s 10-year bonds dropped for a third day, pushing the yield on the country’s benchmark debt seven basis points higher to 5.76%, it said.

The research house Wall Street ended largely unchanged in a lackluster session as investors hesitated to jump in amid ongoing worries over the euro zone and ahead of Friday's monthly jobs report.

Nonetheless, for the week, all three major averages recorded their worst decline this year, it said.

The Dow Jones Industrial Average slipped 0.11 percent, to close at 13,060.14, declining for a third-straight session while S&P 500 erased or 0.06 percent, to finish at 1,398.08, it said.

BIMB Research said that regionally, most major indices closed lower yesterday, due to weak Spanish bond sale which weaken investors’ confidence.

“In the local front, the FBM KLCI is well supported at 1,590 levels despite poor regional performance, losing 0.36% to close at 1,593.44. Net foreign participation remains positive yesterday at RM66.2m.

“Technical point of view, the near term outlook remains sluggish with immediate support to be seen at 1,590 followed by 1,580,” it said.

ON Bursa Malaysia, BAT the top gainer in the morning session and rose 68 sen to RM55.66, Dutch Lady added 50 sen to RM36, Tradewinds PLANTATION []s rose 31 sen to RM5.50, SMPC up 28 sen to RM2.25, Tradewinds 23 sen to RM10.02, Naim Holdings 14 sen to RM2.04, Mulpha 13 sen to 59 sen, Hing Yap 12 sen to RM1.68, MBM Resources 11 sen to RM4.91 and HLFG added 10 sen to RM12.48.

Naim Indah Corp was the most actively traded counter with 58.3 million shares done. The stock rose 2.5 sen to 51 sen.

Other actives included Metronic, Tiger Synergy, CSL, Green Ocean, Focus, TMS, Ariantec, Systech and DBE Gurney.

Decliners included Shell, F&N, Petrol One, KLK, HDBS, SapureCrest, Batu Kawan, Subur, Perduren and MGRC.



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Mulpha Land up 33% to two-year high

KUALA LUMPUR (April 6 ) : MULPHA LAND BHD [] shares rose as much as 33% during intraday trade on Friday, sending the stock to its highest in about two years.

Shares of Mulpha Land added 15 sen to a high of 61 sen before the stock was transacted lower at 59 sen at 12.15pm.

Regulators had in March this year, granted a six-month extension to Mulpha Land to implement its planned rights issue.

Mulpha Land had announced in May 2011 that it planned to undertake a rights issue of 456.61 million new shares and 273.96 million free warrants. At an indicative issue price of 22 sen per rights unit, the rights issue is expected to raise RM100.45 million.



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Stocks to watch: Amway, Prestariang, Can-One, Mulpha Intl

KUALA LUMPUR (Feb 15): Stocks on Bursa Malaysia could see cautious trade after the FBM KLCI snapped its two-days of gains despite the firmer broader market.

However, lending support could come from the better-than-expected economic numbers where the fourth quarter 2011 GDP expanded at 5.2%. Economists had expected the 4Q2011 GDP to have expanded 4.5% on-year, driven by upbeat domestic demand.

Among the stocks to watch are Amway (Malaysia) Holdings Bhd, Prestariang Bhd, CAN-ONE BHD [] and Mulpha International following the latest corporate developments.

Amway’s net profit for the fourth quarter ended Dec 31, 2011 rose 36.1% to RM24.93 million from RM18.31 million a year earlier, due mainly to improved gross margin arising from the lower cost of products and lower operating expense.

Amway declared a fourth interim single tier dividend of nine sen net per share for the financial year ended Dec 31, 2011, to be paid on March 30, 2012. The company was adopting a dividend payout ratio of no less than 80% of the company’s current year net earnings from the financial year 2012.

For the financial year ended Dec 31, Amway’s net profit was up 14.9% to RM89.99 million from RM78.32 million in 2010, while revenue rose to RM735.81 million from RM719.41 million.

Prestariang posted net profit of RM10.55 million in the fourth quarter ended Dec 31, 2011, underpinned by strong demand for its information communications TECHNOLOGY [] (ICT) training. Its revenue was RM32.63 million. Its earnings per share were 4.80 sen. It proposed a final single-tier dividend of 4.0 sen per share.

For the financial year ended Dec 31, 2011, it reported net profit of RM33.61 million on the back of RM111.75 million in revenue.

The legal tussle between Can-One Bhd and Kian Joo Holdings Sdn Bhd resumed. The former managing director of KIAN JOO CAN FACTORY BHD [] (KJCF) Datuk See Teow Chuan and 13 others have filed an application seeking the review of the Federal Court ruling that gave the nod for Can-One to buy the 32.9 pct stake of KJCF.

Mulpha expects to record a one-off gain of about RM57.35 million from the sale of its 75% stake in Hong Kong listed Manta Holdings Company Ltd for HK$285 million (RM111.15 million).

Mulpha said its unit Jumbo Hill Group Ltd had on Tuesday entered into a sale and purchase agreement with Eagle Legend International Holdings Ltd to dispose of the stake, comprising of 150 million shares, at HK$1.90 a share.

Meanwhile, DENKO INDUSTRIAL CORPORATION [] Bhd saw Green Power Resources Ltd increasing its stake in the company. Green Power, which is based in Singapore, acquired 9.0 million shares in Denko on Feb 9 and increased its shareholding to 13.14% or 13.72 million shares. The shares were disposed of by Yong Boon Cheong at 30 sen each.

GD EXPRESS CARRIER BHD []'s net profit for the second quarter ended Dec 31, 2011 rose 30% to RM2.11 million from RM1.62 million a year earlier, due mainly to growth in customer base and increase in business from existing customers.



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Mulpha Intl to realise RM57.3m one-off gain from sale of HK firm

KUALA LUMPUR (Feb 15): MULPHA INTERNATIONAL BHD [] expects to record a one-off gain of about RM57.35 million from the sale of its 75% stake in Hong Kong listed Manta Holdings Company Ltd for HK$285 million (RM111.15 million).

Mulpha said on Wednesday its unit Jumbo Hill Group Ltd had on Tuesday entered into a sale and purchase agreement with Eagle Legend International Holdings Ltd to dispose of the stake, comprising of 150 million shares, at HK$1.90 a share.

At HK$1.90 a share, this is a premium of 13.1% over the closing price of Manta on the last practicable date of HK$1.68 and it higher than the 52-week trading range of between HK$1.15 and HK$1.89.

Manta’s core activities are rental and trading of tower cranes, CONSTRUCTION [] equipment and provision of maintenance services for tower cranes in Hong Kong, Macau, Singapore and Vietnam.

Mulpha said its carrying value of the investment in Manta as at Dec 31, 2011 was about RM48.24 million.

“The proposed disposal is in line with Mulpha International group’s strategy to dispose of its non-core assets and focus on its core business in property development and investment and property related business.

“The proposed disposal enable Mulpha International to realise its investment in Manta at an attractive valuation, the proceeds of which may be redeployed to the repayment of bank borrowings and/or working capital requirements of the Mulpha International group,” it said.



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CIMB Research has technical buy on Mulpha International at 38 sen

KUALA LUMPUR (Jan 17): CIMB Equities Research has a technical buy on Mulpha International at 38 sen at which it is trading at a price-to-book value of 0.3 times.

It said on Tuesday that Mulpha International has been trading in a sideways consolidation mode for the past few weeks after it broke out from its medium term downtrend channel in early December 2011.

“This shows that a near term bottom may have been formed. The 37 sen level is the immediate support,” it said.

CIMB Research said the technical landscape remains lethargic, reflecting its early consolidation tone. MACD is flat while RSI is hovering slightly below the 50 pts mark.

“Traders with higher risk appetite may start to nibble now. However, be quick to cut loss if the 37 sen level is breached. Meanwhile, resistance is at 40 sen and 42.5 sen. The 200-day SMA is also a magnet for prices,” it said.



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SC reprimands Mulpha International directors

KUALA LUMPUR (Jan 4): The Securities Commission has reprimanded the board of the directors of MULPHA INTERNATIONAL BHD [] for failure to ensure the full disclosure of information in its abridged prospectus.

The SC said on Wednesday 4 that Mulpha was reprimanded the previous day for failure to ensure the final basis of allocation of excess rights shares was consistent with the basis disclosed in the company’s abridged prospectus dated Feb 24, 2010.



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KL shares higher at midday

Bursa Malaysia ended the morning session on a positive note today in line with the improved sentiment on the regional markets, dealers said.

At 12.30pm, the FTSE Bursa Malaysia KLCI gained 7.32 points, or 0.49 per cent, to 1,514.01 after opening 2.29 points higher at 1,508.98.

A dealer said late window-dressing in selected heavyweights was likely to ensure the benchmark index ended the year above 1,500.

Market breadth was positive with gainers leading losers by 337 to 254 while turnover amounted to 572.05 million shares worth RM483.97 million.

The Finance Index increased 26.21 points to 13,449.97, Plantation Index advanced 73.24 points to 8,161.56 and the Industrial Index gained 8.83 points to 2,729.90.

The FTSE Bursa Malaysia Emas Index jumped 49.06 points to 10,397.01 and the FTSE Bursa Malaysia Mid 70 Index expanded 59.72 points to 11,546.49.

FTSE Bursa Malaysia Ace Index, however, slipped 0.96 point to 4,067.30.

Of the volume leaders, Mulpha rose one sen to 39.5 sen, Wijaya-Warrants was half sen higher at 42 sen while 1 Utopia was unchanged at 6.5 sen.

Among heavyweights, Maybank up one sen to RM8.33, Sime Darby gained five sen to RM9.05 and CIMB added three sen to RM7.19. -- Bernama



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KL shares open on strong note

Share prices on Bursa Malaysia were higher in active trading early Friday morning as investors bet on a 2012 bounce, dealers said.

After 10 minutes of trading, the underlying FTSE Bursa Malaysia KLCI (FBM KLCI) stood at 1,510.57, up 3.88 points or 0.26 per cent, led by selected heavyweights especially plantation counters.

It opened 3.98 points higher at 1,510.67.

Market sentiment was also fueled by positive signals out of the US and Asian markets with trading remaining in the positive territory on the last trading day of the year.

HwangDBS Vickers Research said the local bourse could extend its six-day rising streak, which has seen the market chalk up cumulative gains of 41.5 points or 2.9 per cent.

On Bursa Malaysia, the Finance Index gained 13.16 points to 13,436.92, the Plantation Index expanded 23.64 points to 8,111.96 and the Industrial Index added 12.45 points to 2,733.52.

The FTSE Bursa Malaysia Emas Index climbed 24.41 points to 10,372.36, the FTSE Bursa Malaysia Mid 70 Index increased 14.62 points to 11,501.39 and the FTSE Bursa Malaysia Ace Index rose 4.82 points to 4,073.08.

Trading was positive with gainers outnumbering losers 137 to 37 while 120 counters were unchanged, 1,476 untraded and 17 others suspended.

Volume stood at 66.75 million worth RM63.5 million.

Among the active counters, Mulpha was one sen higher at 39.5 sen, LFE Corporation perked 1.5 sen to 21 sen and Scomi Marine added 4.5 sen to 41 sen.

Among the heavyweights, Maybank and CIMB rose one sen each to RM8.33 and RM7.17 respectively, while Sime Darby gained five sen to RM9.05. -- Bernama



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RHB Research expects Mulpha Intl to end 6-wk consolidation

KUALA LUMPUR (Dec 30): RHB Research Institute says technically, it expects Mulpha International to end its 6-week long consolidation and resume its uptrend in the immediate term on expectations of strengthening buying momentum.

In its technical outlook for the share price on Friday, it said given the stock’s positive short-term outlook, it expects the stock to retest the 76.4% FR level of 42 sen in the short term.

“Any breakout above the 42 sen barrier, would then turn the medium-term outlook positive and drive the stock’s price towards the next resistances of 47 sen (61.8% FR level) and 51 sen (50% FR level) over the medium term,” it said.

RHB Research said while it does acknowledge that the stock’s medium-term outlook is still negative, it thinks its proximity to its immediate support of 37 sen (which held well over the last two months) offers investors a compelling risk to reward ratio for a short and medium-term play.

“Hence, we advise short and medium-term investors to buy at yesterday’s close of 38.5 sen in anticipation of the stock’s price resuming its uptrend in the immediate term. Long-term investors are, however, strongly advised to stay aside for now,” it said.

RHB Research said on the downside, it noted that the breaching of the support of 37 sen would turn the immediate outlook negative and the stock’s price could lose its chance of redeeming its uptrend in the short term. Hence, investors should strictly cut loss at below 37 sen.

Overall, investors with a theoretical entry price of 38.5 sen would see a limited downside risk of 1.5 sen from the cut loss level of 37 sen compared to an upside of 3.5 sen and 8.5 sen to the resistance of 42 sen and 47 sen respectively.



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Mulpha Q3 pre-tax profit drops to RM10m

Mulpha International Bhd's pre-tax profit for the third quarter ended Sept 30, 2011, dropped to RM10.226 million from RM16.734 million recorded in the same period last year.

Revenue decline to RM172.751 million from RM180.755 million previously.

Mulpha in filing to Bursa Malaysia today said the higher pre-tax profit was contributed substantially by the gain on disposal of Hilton Melbourne Airport Hotel amounting to RM242.5 million. -- Bernama



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CIMB Research has technical buy on Mulpha Intl

KUALA LUMPUR (Nov 8): CIMB Research has a technical buy on Mulpha International at 39.5 sen at which it is trading at a price-to-book value of 0.3 times.

It said on Tuesday Mulpha appears to be forming a short term bullish flag pattern, and this pattern suggests that prices are more likely to breakout of its long term downtrend resistance soon.

“MACD and RSI are flattening out but remained above the key support levels. This would increase the odds of another break upwards.

“The stock is a buy now with a stop placed below 38 sen, is 30-day SMA. The gap at 38 sen to 39.5 sen could also give the bulls some support. On the upside, resistance is seen at 42.5 sen and the gap at 45 sen to 46 sen. The 200-day SMA at 48 sen could also be tested,” it said.