KLCI reverses earlier losses, closes up 7.7 points

KUALA LUMPUR (Jan 30): The FBM KLCI reversed its earlier losses and rose in the final minutes of trade on Tuesday in line with the higher closing at regional markets, lifted by gains including at Petronas-linked counters and Genting.

The FBM KLCI rose 7.74 points to close at 1,521.29. For the month, however, the index fell 9.44 points from its closing of 1,530.73 on Dec 30 last year.

Gainers overtook losers by 415 to 394, while 353 counters traded unchanged. Volume was 1.78 billion shares valued at RM2.18 billion.

At the regional markets, the Shanghai Composite Index edged up 0.33% to 2,292.61, Hong Kong’s Hang Seng Index rose 1.14% to 20,390.49, Japan’s Nikkei 225 was up 0.11% to 8,802.51, South Korea’s Kospi was up 0.79% to 1,955.79 and Taiwan’s Taiex added 1.48% to 7,517.08, while Singapore’s Straits Times Index rose 0.64% to 2,906.69.

Meanwhile, European shares rose on Tuesday on hopes Greece was nearing a debt swap deal needed to avoid a messy default, while European leaders agreed on stricter budget discipline measures to help prevent further debt accumulation in the region, according to Reuters.

On Bursa Malaysia, Petronas Gas rose 48 sen to RM15.68, Petronas Dagangan 30 sen to RM18, Glenealy 24 sen to RM7.37, FIma Corp and Coastal Contracts 23 sen each to RM6.45 and RM2.30, Genting 22 sen to RM11.12, BLD PLANTATION []s and GAB 20 sen each to RM8.59 and RM12.40, while Malayan Flour Mills added 19 sen to RM4.33.

Among the decliners, MPI fell 20 sen to RM3.48, Perstima down 18 sen to RM3.72, United Plantations 16 sen to RM20.34, Advanced Packaging and Hong Leong Bank 14 sen each to RM1.18 and RM11.36, Nestle, APM Automotive, Lafarge Malayan Cement and Uzma lost 10 sen each to RM55.70, RM4.50, RM6.68 and RM1.76 respectively, while Asia File lost nine sen to RM3.61.

The actives included Coastal Contracts, DRB-Hicom, Compugates, Axiata, DBE Gurney, TMS and Mudajaya.



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KLCI slips below 1,515-level at mid-day, select blue chips weigh

KUALA LUMPUR (Jan 31): The FBM KLCI slipped to below the 1,515-point level at the mid-day break on Tuesday, weighed by losses at select blue chips including Tenaga and PLANTATION []-related stocks.

The FBM KLCI fell 2.24 points to 1,511.31 at the mid-day break. Market breadth turned negative with losers leading gainers by 418 to 263, while 329 counters traded unchanged. Volume was 829.67 million shares valued at RM768.79 million.

The ringgit strengthened 0.43% to 3.0468 versus the US dollar; crude palm oil futures for the third month delivery fell RM19 per tonne to RM3,063, crude oil added 58 cents to US$99.36 while gold rose US$5.10 an ounce to US$1,735.18.

Meanwhile, Asian shares and the euro recovered earlier losses on Tuesday after Greek Prime Minister Lucas Papademos raised hopes for a deal to be reached this week to avoid a default, but markets were starting to worry that Portugal might need a second rescue, according to Reuters.

Japan’s Nikkei 225 added 0.40% to 8,827.91, Hong Kong’s Hang Seng Index was up 0.71% to 20,304.40, the Shanghai Composite Index gained 0.19% to 2,289.43, Taiwan’s Taiex added 0.24% to 7,425.48, South Korea’s Kospi was up 0.46% to 1,949.42, but Singapore’s Straits Times Index shed 0.40% to 2,876.84.

On Bursa Malaysia, BAT fell 54 sen to RM48.84, Hong Leong Bank 18 sen to RM11.32, MPI 17 sen to RM3.51, Asia File and Advanced Packaging 14 sen each to RM3.56 and RM1.18, JT International and Perstima 12 sen each to RM6.83 and RM3.78, Lafarge Malayan Cement 11 sen to RM6.67, Tenaga 10 sen to RM5.87 and Ta Ann nine sen to RM5.67.

Among plantation-related stocks, KLK fell six sen to RM25.66, while IOI Corp and Batu Kawan shed four sen each to RM5.36 and RM19.20.

Gainers included Glenealy, Malayan Flour Mills, Fima Corp, GAB, Coastal Contracts, Maxis, Mudajaya, Triplc, BLD Plantations and Shell, while the actives included DRB-Hicom, DBE Gurney, Axiata, TMS and DGSB.



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KLCI extends loss at mid-morning as investors stay on sidelines

KUALA LUMPUR (Jan 31): The FBM KLCI extended its losses at mid-morning on Tuesday, albeit marginally as investors stayed on the sidelines ahead of the Federal Territories day holiday on Wednesday that would see the local stock market closed.

The FBM KLCI shed 1.31 points to 1,512.24 at mid-morning, weighed by select blue chips.

Gainers trailed losers by 206 to 214, while 263 counters traded unchanged. Volume was 336.38 million shares valued at RM209.43 million.

Meanwhile, Asian shares and the euro struggled on Tuesday as stumbling talks on Greek debt restructuring reignited concerns over funding in other highly indebted countries, with markets starting to worry that Portugal might need a second bailout, according to Reuters.

At the regional markets, Japan’s Nikkei rose 0.43% to 8,831.00, Hong Kong’s Hang Seng Index up 0.93% to 20,348.00, the Shanghai Composite Index gained 0.41% to 2,294.42, Taiwan’s Taiex rose 0.85% to 7,470.51, South Korea’s Kospi added 0.88% to 1,957.55 and Singapore’s Straits Times Index edged up 0.13% to 2,891.94.

BIMB Securities Research on Tuesday said that unresolved negotiation over Greece’s debt remains as the main obstacle for many equity markets.

There was some progress within the EU as most countries had signed a financial pact to strengthen the region’s financial standing, it said in a note.

It said investors were now more risks tolerant as many would still prefer to accumulate stocks on weaknesses, as reflected by the Dow Jones Industrial Average’s intra-day rebound erasing earlier losses to end the session 7 points lower.

The research house said as for European bourses, selling continued to hinder performances as most closed lower.

As expected, regional bourses succumbed to bouts of profit taking following a weak opening in Europe with no fresh catalysts in sight, it said.

“For Malaysia, the FBM KLCI broke its immediate resistance of 1,515 to end the day with a 7 points loss at 1,513.

“We expect the index to remain rather flat today from the lack of fresh leads,” it said.

Meanwhile, Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients Tuesday said the FBM KLCI’s resistance areas of 1,513 and 1,530 would cap market gains, whilst weaker support areas may be located at 1,493 and 1,510.

“Due to the US markets’ mildly negative tone last night, we could be in for yet another range bound trading day before the City Day holiday tomorrow,” he said.

On Bursa Malaysia, BAT was the top loser at mid-morning and fell 28 sen to RM49.10; PPB fell 18 sen to RM16.72, Perstima 13 sen to RM3.77, MPI 12 she to RM3.56, Hong Leong Bank 10 sen to RM11.40, JobStreet, Tenaga and Petronas Dagangan down eight sen each to RM2.10, RM5.89 and RM17.62, while TSR Capital fell six sen to 87 sen.

Gainers included Glenealy, Malayan Flour Mills, Petronas Gas, Mudajaya, Coastal Contracts, Triplc, Plenitude, CBIP and Aeon, while the actives included DBE Gurney, DRB-Hicom, TMS, Maybulk, Mudajaya and Coastal warrants.



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Perstima retreats on weaker 3Q earnings

KUALA LUMPUR (Jan 31): Perusahaan Sadur Timah Malaysia (Perstima) Bhd shares retreated on Tuesday after the its net profit for the third quarter ended Dec 31, 2011 fell 42.95% to RM7.99 million from RM14.01 million a year ago, due mainly to lower sales volume coupled with lower profit margin.

At 9.10am, Perstima shed 10 sen to RM3.80 with 7,300 shares done.

Its revenue for the quarter slipped 9.4% to RM204.26 million from RM225.47 million in 2010.

For the nine months ended Dec 31, Perstima’s net profit fell 48.6% to RM30.55 million from RM59.42 million in 2010, while revenue was 3.51% lower at RM621.77 million from RM644.43 million.

Reviewing its performance, Perstima on Monday said its lower profit margin was due to the increase of production cost which was higher than the increase in selling price in order to remain competitive against importation in the market.

On its outlook, Perstima said it expects its operating environment to remain challenging and competitive due to lower tinplate price from China and Korea as well as the expected economic downturn in the global market.



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Stocks to watch: MAHB, Public Bank, MPI, Axiata

KUALA LUMPUR (Jan 31): Stocks on Bursa Malaysia could trade on a cautious note on Tuesday following investors’ disappointment over the absence of a Greek debt deal, though the broader market was firmer with interest in lower liners.

Reuters reported that dampened optimism about the global economic picture and the Greek crisis pushed the euro off six-week highs and sent world stocks lower on Monday with investors cautious ahead of an EU leaders’ summit.

EU leaders will sign off on a permanent rescue fund for the euro zone at a summit on later on Monday and are expected to agree on a balanced budget rule in national legislation, with unresolved problems in Greece casting a shadow on the discussions.

As for Bursa Malaysia, the FBM KLCI fell 7.33 points to close at 1,513.55, weighed by losses including at Genting, Hong Leong Bank and HLFG. However, gainers led losers by 460 to 387, while 310 counters traded unchanged. Volume was 2.31 billion shares valued at RM1.84 billion.

Among the companies which could see trading interest are Malaysia Airports Holdings Bhd (MAHB), PUBLIC BANK BHD [], MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI) and Axiata Group Bhd.

Other stocks of interest would be Perusahaan Sadur Timah Malaysia (Perstima) Bhd, D’nonce TECHNOLOGY [] Bhd and also JOTECH HOLDINGS BHD [], and AIC CORPORATION BHD [] and AutoV Corporation Bhd.

MAHB plans to raise RM598.40 million from a proposed share placement exercise to finance the new low cost carrier terminal at Kuala Lumpur International Airport (klia2).

The airports operator said it planned to issue 110 million new shares, or 10% of its issued and paid-up share capital to investors to be identified via a book building exercise.

Based on a 5% discount to the five-day volume weighted average market price (VWAMP) of MAHB shares up to and including Jan 27, of RM5.7298, the indicative issue price for the placement shares would be RM5.44.

Public Bank Bhd recorded net profit of RM876.98 million in the fourth quarter ended Dec 31, 2011, up 3.6% from a year ago due to higher net interest and net income from Islamic banking business. It declared a second interim single-tier dividend of 28 sen per share.

Its revenue rose 11.8% to RM3.32 billion from RM2.97 billion a year ago. Its earnings per share were 25.04 sen compared with 24.16 sen.

For the 4Q ended Dec 31, 2011, the group registered a pre-tax profit of RM1.163 billion, an increase of RM33.0 million or 2.9% as compared to the previous corresponding quarter. The improved performance was mainly due to higher net interest and net income from Islamic banking business.

MPI posted net loss RM16.21 million in the second quarter ended Dec 31, 2011 compared to net profit RM25.29 million a year earlier, due mainly to weaker demand and lower revenue.

Its revenue for the quarter fell 24.04% to RM279.23 million from RM367.59 million in 2010. Loss per share was 8.37 sen compared to earnings per share of 13.05 sen, while net assets per share were RM3.77.

Axiata Group Bhd has received another two-year extension from the Securities Commission (SC) to get the local authorities’ approval for its outdoor structures.

The SC had given it until Jan 29, 2014 to get the approvals for the outdoor structures, which were part of the conditions for its listing on Bursa Malaysia.

As at Dec 19, 2011, Axiata said 22 outdoor structures were pending approval from local authorities. Applications for 27 outdoor structures have been declined, and the Celcom Group is in the midst of appealing to the relevant local authorities.

Perstima’s net profit for the third quarter ended Dec 31, 2011 fell 42.95% to RM7.99 million from RM14.01 million a year ago, due mainly to lower sales volume coupled with lower profit margin. Its revenue for the quarter slipped 9.4% to RM204.26 million from RM225.47 million in 2010.

D’nonce Technology Bhd posted net loss of RM6.11 million in the first quarter ended Nov 30, 2011 compared with a net profit of RM498,000 a year ago due to the impact of the severe flooding in Thailand last year.

Its factories in Bangkok were inundated by the flood waters which damaged its property, plant and equipment and inventories in early October 2011. As to date, its factories in Bangkok have yet to commence operations.

Datuk Goh Tian Chuan’s special purpose vehicle Temasek Formation Bhd (TFB) has received the Securities Commission’s approval to merge Jotech Holdings Bhd, and AIC Corporation Bhd and AutoV Corporation Bhd.

The proposed merger of the three companies for a total consideration of about RM696 million would be satisfied via the issuance of new Temasek Formation shares.



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Perstima 3Q net profit falls 42.9% to RM7.99m on lower sales

KUALA LUMPUR (Jan 30): Perusahaan Sadur Timah Malaysia (Perstima) Bhd net profit for the third quarter ended Dec 31, 2011 fell 42.95% to RM7.99 million from RM14.01 million a year earlier, due mainly to lower sales volume coupled with lower profit margin.

The company said on Monday that its revenue for the quarter slipped 9.4% to RM204.26 million from RM225.47 million in 2010.

Earnings per share fell to 8.05 sen from 14.11 sen, while net assets per share was RM3.17.

For the nine months ended Dec 31, Perstima’s net profit fell 48.6% to RM30.55 million from RM59.42 million in 2010, while revenue was 3.51% lower at RM621.77 million from RM644.43 million.

Reviewing its performance, Perstima said its lower profit margin was due to the increase of production cost which was higher than the increase in selling price in order to remain competitive against importation in the market.

On its outlook, Perstima said it expects its operating environment to remain challenging and competitive due to lower tinplate price from China and Korea as well as the expected economic downturn in the global market.

“These factors will affect the growth and profitability of the group for the next three months,” it said.



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