KLCI closes lower, but pares down loses

KUALA LUMPUR (April 24): The FBM KLCI closed lower on Tuesday, but pared down it losses to move above the 1,580-point mark in line with the slight recovery at most key regional and European markets.

European share markets and the single currency staged modest recoveries on Tuesday, after steep losses caused by the worsening performance of the euro zone economy and a sharp rise in concern over the political will to fix its fiscal problems, according to Reuters.

The FBM KLCI fell 1.52 points to close at RM1,582.28. The index had earlier fallen to its intra-day low of 1,579.04.

Market breadth remained weak with 409 losers, 273 gainers and 348 counters trading unchanged. Volume was 1.42 billion shares valued at RM1.55 billion.

At the regional markets, Hong Kong’s hang Seng Index gained 0.26% to 20,677.16, Taiwan’s Taiex added 0.24% to 7,498.84, the Shanghai Composite Index edged up 0.01% to 2,388.83 and Singapore’s Straits Times Index

Meanwhile, South Korea’s Kospi fell 0.47% to 1,963.42 and Japan’s Nikkei 225 shed 0.78% to 9,468.04.

Among the decliners on Bursa Malaysia, Petronas dagangan fell 26 sen to RM19.28, Jaya Tiasa down 22 sen to RM9.54, Carlsberg 20 sen to RM11.30, SAM Engineering 17 sen to RM3.38, APM Automotive down 14 sen to RM4.50, Tradewinds 13 sen to RM9.52, S P Setia 11 sen to RM3.73, while Subur Tiasa and Ta Ann lost 10 sen each to RM2.85 and RM6.50.

Ariantec was the most actively trade counter with 142.38 million shares done. The stock gained one sen to 25 sen.

Other actives included Ingenuity Solutions, Metronic, Focus, CSL, Ramunia, TMS, JCY and Astral Supreme.

Gainers included Aeon Credit, Top Glove, CSL, Panasonic, MMC Corp, Three-A Resources, Quality Concrete, UMW and JCY.



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Ta Ann gains on share dividend

KUALA LUMPUR (April 20) : Timber firm TA ANN HOLDINGS BHD [] climbed as much as 3.7% as investors chased the stock to capitalise on its proposed share dividend.

Shares of Ta Ann added 24 sen to RM6.74 before settling lower at RM6.65 at lunch break on Friday.

Ta Ann plans to undertake a bonus share issue on the basis of one bonus unit for every five existing shares in the company. It said the exercise, to be completed by the second quarter of this year, will involve up to 61.8 million new shares, hence, an expanded issued base for the company upon completion.

Ta Ann had cash of RM180.44 million as at December 31 last year against debt obligations of RM449.44 million, translating into net debt of RM269 million.



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Maybank IB Research maintains Buy on Ta Ann, target price RM9

KUALA LUMPUR (April 20): Maybank Investment Bank Bhd Researh has maintained its Buy rating on TA ANN HOLDINGS BHD [] at RM6.50 with a target price of RM9, and said Ta Ann's proposed 1-for-5 bonus issue not only helped to improve liquidity but it would “recapitalise” its share base as its seeks to achieve sustainable growth in the long run.

In a note Friday, the research house said the stock continues to trade at an attractive 10.9x 2013 PER, with low EV/planted ha of ~MYR42,600 (43% discount to industry average).

“It is also poised to deliver a 15% 3-year net profit CAGR. Maintain Buy and MYR9.00 TP on 15x 2013 PER. Ta Ann is our top pick among the PLANTATION [] stocks,” it said.



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KLCI succumbs to global economic woes

KUALA LUMPUR (APRIL 17): The FBM KLCI succumbed to the mounting concerns over the euro zone sovereign debt crisis that kept most regional markets in negative territory on Tuesday.

The FBM KLCI closed 1.32 points lower at 1,596.19.

Gainers edged losers by 355 to 341, while 351 counters traded unchanged. Volume was 2.08 billion shares valued at RM1.63 billion.

Hong Kong shares fell on Tuesday, dragged lower by large-cap bank and materials shares as nervous investors awaited a bond auction which could see a further jump in Spain's borrowing costs, threatening a new crisis in the euro zone, according to Reuters.

On the mainland, the Shanghai Composite fell 0.94% to 2,334.98, while the CSI300 index was off 1.3 percent, it said.

Elsewhere, Hong Kong’s Hang Seng Index fell 0.23% tyo 20,562.31, Japan’s Nikkei 225 shed 0.06% to 9,464.71, Taiwan’s taiex lost 1.86% to 7,585.87, South Korea’s Kospi down 0.37% to 1,985.30 and Singapore’s Straits Times Index shed 0.18% to 2,986.59.

Among the decliners on Bursa Malaysia, Dutch Lady fell 56 sen to RM34.60, Warisan down 30 sen to RM2.33, Tahps fell 27 sen to RM4.53, BAT lost 22 sen to RM54.46, SMPC 21 sen to RM1.12, MISC 13 sen to RM5.17, while KLuang and Ta Ann fell 12 sen each to RM2.68 and RM6.57.

Ariantec Global was the most actively traded counter with 515.66 million shares done. The stock jumped 8.5 sen to 20 sen. It had earlier been issued an unusual market activity (UMA) query by Bursa Malaysia Securities Bhd to Ariantec Global Bhd over the sharp rise in the price and high volume in the company’s shares recently.

Other actives included Metronic, Focus, Astral Supreme, Ingenuity Solutions, SuperComNet, CSL, Naim Indah Corp and Winsun.

Meanwhile, the gainers on Tuesday included SAM Engineering, Carlsberg, CSL, Subur Tiasa, Y&G, Golsta, Southern Acids, Rapid, Manulife and The Store.



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Global economic concerns weigh on KLCI

KUALA LUMPUR (April 16) : Malaysian stocks fell on Monday morning in tandem with regional peers following a weaker close across US markets last Friday. Global equities were hit by fresh concerns on the European debt crisis besides news that China’s first quarter economic growth came in below street forecast.

Analysts foresee a correction in the FBM KLCI this week against a backdrop of weak technical indicators and still-volatile global landscape.

“Moreover, weaker-than-expected economic numbers from the US due to weak jobs growth in March, drop in consumer confidence and more than forecast jobless claims does not augur well for growth in the world's largest economy, hence, increasing correction potential.

“Additional worries in Asia after China's economy expanded by 8.1% in the first quarter, the slowest pace since 2009, could exert further downward pressure for the local market this week,” TA Securities Holdings Bhd wrote in note.

At 10am, the FBM KLCI fell 4.89 points to 1,598.23. Across the exchange, some 184 million shares worth RM109 million were traded, leading to 163 gainers versus 237 decliners.

Among top gainers JAYA TIASA HOLDINGS BHD [] added 60 sen to RM9.68 while TA ANN HOLDINGS BHD [] was up 13 sen to RM6.69.

Decliners HONG LEONG FINANCIAL GROUP BHD [] fell 20 sen to RM12.24 while DUTCH LADY MILK INDUSTRIES BHD [] was down 18 sen to RM 35.40

Most active was INGENUITY SOLUTIONS BHD [] which traded unchanged at 10 sen with some 23 million shares done.

Among Asian bourses, Japan’s Nikkei 225 fell 1.44% to 9,499.33 points while Australia’s S&P/ ASX 200 declined 0.61% to 4,296.9. South Korea’s Kospi was down 1.14% to 1,985.98.



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Stocks to Watch Jaya Tiasa, Gopeng, Xian Leng

KUALA LUMPUR (April 2): Malaysian equities could exhibit further weakness on Friday in anticipation of less trading volume during the Good Friday and Easter holiday season.

Analysts said weaker technical indicators for equities, and fresh concerns on a protracted European sovereign debt crisis could result in more volatility for the FBM KLCI ahead of Malaysia's general election.

The FBM KLCI fell 5.83 points to finish at 1,593.44 points on Thursday.

Stocks to watch on Friday include JAYA TIASA HOLDINGS BHD [], TA ANN HOLDINGS BHD [], GOPENG BHD [], FAVELLE FAVCO BHD [], and XIAN LENG HOLDINGS BHD [].

Jaya Tiasa, a PLANTATION [] and timber entity, rose as much as 2.7% or 24 sen to RM9, ahead of the ex-date for its treasury shares on Friday.

Ta Ann climbed as much 3% or 18 sen to RM6.38, after Maybank Investment Bank Bhd initiated coverage on the timber player with a buy call and fair value of RM8.

Gopeng, a builder, plans to reward shareholders with a final dividend of 9.8 sen, less 25% tax.

Crane builder Favelle Favco has secured five contracts with a combined value of about RM102.1 million.

The special audit on Xian Leng revealed financial irregularities in its fish farm development capital expenditure amounting to RM90.7 million, of which a total of RM85.7 million was disbursed under "questionable circumstances". Trading of Xian Leng shares, which has been suspended, will resume on Friday.



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KLCI extends loss for second day running

KUALA LUMPUR (APRIL 50): The FBNM KLCI extended its losses for a second day running while most global markets either pared down their losses or reversed earlier retreats on bargain hunting activities.

The FBM KLCI closed 5.83 points lower at 1,593.44, paring down its losses from the earlier intra-day low of 1,591.85.

Losers edged gainers by 352 to 342, while 317 counters traded unchanged. Volume was 1.24 billion share valued at RM1.22 billion.

At the Asian markets, Chinese shares jumped 1.7% the biggest single-day rise since early February led by non-banking financials after Premier Wen Jiabao said the monopoly formed by the country's big banks needed to be broken to get money flowing to cash-starved private firms, according to Reuters.

Hong Kong shares ended a holiday-shortened week weaker on Thursday, dragged by the Chinese financial sector as investors took profit on the final trading day before a four-day holiday weekend and ahead of US jobs data on Friday, it said.

Meanwhile, European shares eked out modest gains on Thursday with investors looking for bargains after three weeks of losses but sentiment remained fragile after lower demand at a Spanish auction rekindled funding concerns for weaker euro zone countries, said Reuters.

At the regional markets, the Shanghai Composite Index rose 1.74% to 2,302.24, South Korea’s Kospi addd 0.50% to 2,028.77 and Singapore’s Straits Times Index xx

Meanwhile, Hong Kong’s Hang Seng Index lost 0.95% to 20,593.00, Japan’s Nikkei fell 0.53% to 9,767.61 and Taiwan’s Taiex fell 1.56% to 7,639.82.

ON Bursa Malaysia, BAT was the top loser and fell 60 sen to RM54.98, GAB lost 20 sen to RM13, Aeon Credit down 15 sen to RM8.74, Milux, F&N and Genting fell 12 sen each to RM1.28, RM18.88 and RM10.96 respectively, MAHB down 11 sen to RM5.76 while Amway fell 10 sen to RM9.80.

Takaful was the top gainer and added 48 sen to RM3.70, Tradewinds PLANTATION []s added 25 sen to RM5.19, Cepco up 24 sen to RM1.79, Tradewinds added 19 sen to RM9.79, Ta Ann 18 sen to RM6.38, Jaya Tiasa 17 sen to RM8.93, Inno 14 sen to RM1.64, Y&G 13 sen to 73 sen, while Shell and Sin Heng Chan added 12 sen each to RM10.30 and RM1.12.

Metronic was the most actively traded counter with 124,92 million shares done. The stock added 2.5 sen to 17,5 sen.

Other actives included Naim Indah Corp, Ariantec, Focus, Carotech, SupertComNet, Ingenuity Solutions, JCY and Key West.



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Ta Ann edges up after Maybank IB starts coverage

KUALA LUMPUR (April 5): TA ANN HOLDINGS BHD [] shares edged up on Thursday after Maybank Investment Bank Bhd Research initiated coverage on one the stock at RM6.20 with a Buy Rating and target price of RM8, and said three key catalysts will propel earnings for the company, namely: (i) an explosive 18% 3-year forward CAGR in FFB output, (ii) Japan‟s reCONSTRUCTION [], (iii) a maiden contribution from its forest PLANTATION [] in 2015.

At 11.30am, Tan Ann added four sen to RM6.24 with 27,600 shares traded.

In a note Thursday, the research house said Ta Ann’s earnings quality was boosted by its transformation into a producer of palm oil, which contributed 77% of PBT in 2011.

“The stock trades at 11.7x 2013 PER, with low EV/planted ha of about RM39,600, and is poised to deliver an 11% 3-year net profit CAGR. We initiate coverage with a Buy and RM8.00 TP on 15x 2013 PER (+29% upside),” it said.



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Maybank IB starts coverage on Ta Ann with Buy call, target price RM8

KUALA LUMPUR (April 5): Maybank Investment Bank Bhd Research has initiated coverage on TA ANN HOLDINGS BHD [] at RM6.20 with a Buy Rating and target price of RM8, and said three key catalysts will propel earnings for the company, namely: (i) an explosive 18% 3-year forward CAGR in FFB output, (ii) Japan‟s reCONSTRUCTION [], (iii) a maiden contribution from its forest PLANTATION [] in 2015.

In a note Thursday, the research house said Ta Ann‟s earnings quality was boosted by its transformation into a producer of palm oil, which contributed 77% of PBT in 2011.

“The stock trades at 11.7x 2013 PER, with low EV/planted ha of about RM39,600, and is poised to deliver an 11% 3-year net profit CAGR. We initiate coverage with a Buy and RM8.00 TP on 15x 2013 PER (+29% upside),” it said.



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KLCI edges up mid-day, lifted by select blue chips

KUALA LUMPUR (March 29): The FBM KLCI edged up at the mid-day break on Thursday, lifted by select blue chips including CIMB, Genting-linked counters, Petronas Chemicals and BAT.

At 12.30pm, the KLCI was up 0.41% to 1,584.16. Gainers trailed losers by 197 to 388, while 318 counters were traded unchanged. Volume was 819.28 million shares valued at RM554.24 million.

Asian shares fell for a second successive day on Thursday as concerns about growth prospects in the world's two largest economies, the United States and China, prompted investors to trim their risk exposure ahead of the end of the quarter, according to Reuters.

Hong Kong’s Hang Seng Index lost 1.2% to 20,634.30, Taiwan’s Taiex fell 2.67% to 7,823.78, South Korea’s Kospi fell 1.06% to 2,010.26, Japan’s Nikkei 225 was down 0.82% to 10,099.30, the Shanghai Composite Index 0.58% to 2,271.60 and Singapore’s Straits Times Index 0.28% to 3,007.44.

Among the gainers on Bursa Malaysia, Dutch Lady was the top gainer, up RM2.62 to RM37.50.

BAT added 18 sen to RM56.52, Aeon 14 sen to RM9.35, Toyo Ink 14 sen to RM9.35, MISC 12 sen to RM5.32 and Shell 10 sen to RM10.20. Southern Acids, Kulim, Ta Ann and Crescesndo added nine sen each to RM2.39, RM4.30, RM6.18 and RM1.90 respectively.

CIMB rose seven sen to RM7.57, while Petronas Chemicals, Genting and Genting PLANTATION []s added two sen each to RM6.70, RM11.12 and RM3.89 respectively.

Naim Indah Corp was the most actively traded counter with 56.7 million shares done. The stock added half a sen to 48.5 sen.

Other actives included Ariantec, Focus, SuperComnet, Metronic, Key West and Iris Corp.

Among the decliners were Shangri-la, BLD Plantations, GAB, Sungei Bagan, RHB Capital, SMPC, PPB, SBC Corp and Kris Assets.



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KLCI rebounds at mid-morning

KUALA LUMPUR (March 27): The FBM KLCI rebounded at mid-morning on Tuesday, in line with the overnight gains at Wall Street and improved sentiment at the key regional markets.

At 10.05am, the FBM KLCI added 6.76 points to 1,589.74, lifted by gains at select blue chips including Petronas-linked stocks and index-linked PLANTATION [] counters.

Gainers led losers by 275 to 186, while 258 counters traded unchanged. Volume was 434.91 million shares valued at RM221.33 million.

Wall Street stock rose more than 1% on Monday, as Federal Reserve Chairman Ben Bernanke's comments supported views that easy monetary policy would remain in place for some time and fanned expectations for more asset purchases by the U.S. central bank, according to Reuters.

Asian stocks rebounded on Tuesday and the dollar eased after Federal Reserve Chairman Ben Bernanke said ultra-loose monetary policy was still needed to reduce unemployment even though the U.S. economy has shown signs of improvement, it said.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.26% to 20,929.10, the Shanghai Composite Index added 0.42% to 2,360.44, Taiwan’s Taiex gained 0.30% to 7,991.17, South Korea’s Kospi rose 0.73% to 2,034.01 and Singapore’s Straits Times Index was up 0.67% to 2,994.38.

Meanwhile, Japan’s Nikkei 225 fell 1.69% to 10,187.40.

BIMB Securities Research in a note March 27 said Ben Bernanke’s encouraging statement on the US job market acted as a confidence booster that propped the Dow Jones Industrial Average 161 points higher to convincingly breach its resistances of 13,150 and 13,200.

Over in Europe, more commitment (if required) would be available by Eurozone policy makers enhanced equities participation with almost all closed on positive territory.

The research house said that regionally, most Asian bourses ended Monday’s session on a weaker note as the developments in the west were missed.

Domestically, the FBM KLCI finally corrected with a marginal 2.9 point dip to 1,583 after fighting really hard to stay above the 1,585 level, it said.

“Nonetheless, with the positives all round overnight, we would reckon this to sway trading on a more positive note and the index should trend between the 1,585/90 range.

“We noticed foreign buying was apparent again yesterday with a net participation of RM233 million pushing total inflow of foreign monies surpassing the RM4 billion mark year-to-date,” it said.

On Bursa Malaysia, Dutch lady was the top gainer and rose 46 sen to RM31.86, Petronas Dagangan was up 22 sen to RM18.70, Petronas Gas and F&N rose 14 sen each to RM16.88 and RM18.40, Ta Ann and MPI up 11 sen each to RM6.11 and RM3.24, while Hong Leong Industries, BAT, PPB and KLK gained 10 sen each to RM4.17, RM54.10, RM16.74 and RM23.96 respectively.

Oversea Enterprise was the most actively trade counter with 25.18 million shares done. The stock rose six sen to 20.5 sen.

Other actives included Supercomnet, TMS, Eduspec, Iris Corp, Carotech and Flonic.

Meanwhile, the decliners included Supercomnet, Hartalega, MSM, CHHB, AirAsia, SMPC, PUC, Favelle Favco and Chin Well.



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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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Quality of buying declines on Bursa

KUALA LUMPUR (March 20): The quality of buying in the morning session on Tuesday declined, with trading interest focused on penny stocks, while the broader market showed some signs of weakness.

Investors were staying on the sidelines, as evidenced by the small gains and cautious regional markets. Most of the most active stocks were penny counters.

At 12.30pm, the FBM KLCI was up 3.48 points to 1,577.08. Turnover was 1.28 billion shares valued at RM676.65 million. Decliners led advancers 382 to 245 while 333 counters were unchanged.

Hong Kong’s Hang Seng Index slipped 0.67% to 20,974.03, Taiwan’s Taiex shed 0.69% to 7,988.42, South Korea’s Kospi 0.26% lower at 2,041.59 but Singapore’s Straits Times Index added 0.58% to 3,006.53. Japan was closed.

At Bursa Malaysia, dealers said retail investors were staying on the sideline while some who had already bought blue chips and mid-cap stocks were awaiting fresh news. They said the retail investors were not ready to rush in.

According to Bursa Malaysia, local retail participation had declined to about 26%, local institutions were at 54.6% and foreigners at about 19.4%.

Focus, which was queried by Bursa Securities over the sharp rise and heavy volume, added 3.5 sen to 23 sen. There were 112.93 million shares done. It warrants, WA added 4.5 sen to 8.5 sen and WB 2.5 sen to 15 sen.

Dutaland-LB added 15 sen to RM1.05, BCorp-LR 15.5 sen to 13 sen. Index-linked stock BAT rose 14 sen to RM52.52, HLFG 10 sen to RM11.98 and PetGas eight sen to RM16.48.

Ta Ann added 12 sen to RM5.87, PIE 11 sen to RM4.88 and IGB seven sen to RM2.87.

Share prices of Metronic Global and its 17%-owned unit Ariantec Global slipped in active trade. Ariantec fell three sen to 10.5 sen and it was the most active with 121.23 million shares done while Metronic eased one sen to 12 sen.

HL Industries was the top loser, down 12 sen to RM4.06, Batu Kawan and United PLANTATION []s shed 10 sen each to RM18.40 and RM25. EPMB extended its decline, down 6.5 sen to 90 sen.



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KLCI up 0.6% at mid-morning

KUALA LUMPUR (March 14): The FBM KLCI rose at mid-morning on Wednesday, in line with the improved sentiment at key regional markets following the firmer overnight close at Wall Street.

At 10am, the 30-stock index was up 9.18 points to 1,573.20. Gainers led losers by 326 to 106, while 223 counters were traded unchanged. Volume was 246.15 million shares valued at RM221.51 million.

Asian shares rose on Wednesday as upbeat US economic data boosted investors' risk appetite, while reduced expectations for further monetary easing from the Federal Reserve underpinned the dollar, according to Reuters.

At the regional markets, Japan’s Nikkei 225 rose 1.92% to 10,089.60, Hong Kong's Hang Seng Index gained 0.96% to 21,544.50, the Shanghai Composite Index edged up 0.18% to 2,460.12, Taiwan’s Taiex rose 0.60% to 10,489.60, South Korea’s Kopsi rose 1.28% to 2,051.03 and Singapore’s Straits Times Index added 0.95% to 3,017.49.

BIMB Securities Research said US stocks climbed sharply overnight, pushing the major averages to multi-year highs since 2007 backed by stronger US economy; improved retail sales and recovering banking sector.

The S&P 500 rose 1.8 percent to 1,395.95 while the Dow added 217.97 points to 13,177.68. The rally picked up speed in the final hour after JPMorgan Chase boosted its dividend and announced a US$15 billion buyback, said the research house.

Over in Europe, shares climbed to their highest in more than seven months boosted by encouraging economic data from Germany and the US.

“Domestically, the FBM KLCI closed flat (on Tuesday) just below the 1,565 support level; nonetheless net foreign trading participation remains positive at RM77.7 billion," it said.

BIMB Research said the strong rally over in US and Europe might boost sentiment on the local market and it expected the KLCI might test the immediate 1,570.

On Bursa Malaysia, BAT was the top gainer, up RM1.48 to 54.28, Hwatai 19.5 sen to 74 sen, Toyo Ink 19 sen to RM1.63, Genting PLANTATION []s 17 sen to RM9.40, UMW 16 sen to RM7.27.

Shell and Tasek gained 10 sen each to RM10.10 and RM8.70, while Ta Ann and AirAsia added nine sen each to RM5.69 and RM3.63.

Sin Heng Chan, which fell earlier following a query by Bursa Malaysia Securities over its unusual market activity on Tuesday, rose 16 sen to RM1.25,

Naim Indah Corp was the most active counter with 43.99 million shares done. The stock fell three sen to 65.5 sen.

Other actives included Euro Holdings, FFHB, Sinh Heng Chan, Winsun, Silver Bird, Hwatai, YTL and CAM Resources.

Decliners included Quality Concrete, Sunchirin, MISC, LTKM, Gadang, PFCE, UPA Corp and Selangor Dredging.



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CIMB leads KLCI to higher close, 11 pts away from all-time high

KUALA LUMPUR (March 2): CIMB led the FBM KLCI to a higher close, just 11 points away from the all-time high of 1,594.74 in July 2011, as the firmer blue chips galvanised market sentiment.

At the close, the KLCI was up 10.33 points or 0.66% to 1,583.78. Turnover was 1.63 billion shares valued at RM1.93 billion. Advancing counters beat decliners 540 to 276 while 330 counters were unchanged.

Reuters reported European shares edged up to their highest level in more than a week on Friday, with the European Central Bank's ultra-cheap funding this week helping the euro zone debt market and further reducing risk within the battered banking sector.

Financials were among the top gainers, with the STOXX Europe 600 Banking index rising 0.6 percent and Commerzbank advancing 3%. The index, which was the worst performer in 2011 with a 32% drop, has gained about 19% so far this year.

Among the key regional markets, Japan’s Nikkei 225 rose 0.72% to 9,777.03, Hong Kong’s Hang Seng Index added 0.81% to 21,562.26, Shanghai’s Composite Index added 1.43% to 2,460.69 and Singapore’s Straits Times Index 0.49% higher at 2,993.49.

BAT was the top gainer, adding 40 sen to RM53.50. Its fourth interim dividend of 66 sen per share tax exempt will go ex on Tuesday.

CIMB rose 16 sen to RM7.33, pushing the index up 2.82 points after the banking group moved closer to expand its regional reach by acquiring certain assets of The Royal Bank of Scotland in Asia Pacific.

AMMB added nine sen to RM6.26 while Maybank and Public Bank rose two sen each to RM8.77 and RM13.70.

Petronas Chemical added 15 sen to RM6.90, Genting 14 sen to RM10.60 while DiGi and YTL advanced eight sen each to RM4.12 and RM1.78.

KHSB was the most active counter with 76 million shares done, adding 6.5 sen to 62.5 sen.

Silver Bird was unchanged at 20.5 sen as the price could have bottomed out after being sold down on Thursday where it lost nearly half its value.

China Stationery Ltd saw its share price slipping three sen to RM1.8 as investors took profit following its listing on Feb 24 at the offer price of 95 sen.

Among the decliners, PPB fell 34 sen to RM16.94, Dutch Lady 22 sen to RM29.50, Ta Ann 20 sen to RM5.71 and Hartalega 19 sen to RM8.13.



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Market lacklustre as investors cautious of Greece's reforms commitment

KUALA LUMPUR (Feb 14): Blue chips reversed into the red after the first hour of trading on Tuesday following the lack of follow-through buying support, in line with the cautious regional markets.

Reuters reported that the initial relief over Greece's approval of harsh austerity measures in exchange for crucial aid gave way to doubts about Athens' ability to pursue the reforms, with social unrest intensifying.

At 10.02am, the FBM KLCI was down 1.06 points to 1,561.76. Turnover was 620.93 million shares valued at RM300.42 million. Losers beat gainers 331 to 170 while 289 stocks were unchanged.

CIMB Equities Research in its technical outlook that it was beginning to see more weakness creeping into the KLCI index.

“The past two candles have been small with Friday’s candle forming a bearish harami pattern. The strong volume run-up the past week could potentially be a buying climax with prices stalling at the 1,560-1,565 resistance level. A close below the 1,550 levels would likely confirm the reversal and send the index back towards 1,524 and 1,500 next.

“Anything above 1,565 should be viewed as a bonus to lock in profits at a higher level. A break below 1,500 would mean that 1,565 is most likely going to be a very significant top that is unlikely to be challenged for at least a couple of years,” said CIMB Research’s technical outlook for the market.

KLK was the top loser, down 38 sen to RM25.60, BAT 20 sen to RM51.30, HL Bank 10 sen to RM11.46, Tenaga seven sen to RM6.12 and PetDag six sen to RM18.72.

Naim Indah Corp fell seven sen to 49 sen with 34.89 million shares done.

JCY fell five sen to RM1.30. CIMB Research said the rally in JCY’s share could be over and looks poised for a deep correction.

“We believe that it is time to get out and lock in gains. Even if there is upside left, it is likely limited to RM1.50-1.60 levels. The key level to watch out for is RM1.31, where a break below would likely signal that prices are headed back to RM1.08 and RM1.03 next, where the latter is its 50-day SMA. Sell now,” it said in its technical outlook.

Among the gainers were Petronas Gas, up 18 sen to RM16.78, Ta Ann 12 sen to RM5.89, MNRB 11 sen to RM2.80 while PetChem gained six sen to RM7.01.



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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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Ta Ann sees softer plywood prices

KUALA LUMPUR: Timber outfit Ta Ann Holdings Bhd is expecting plywood prices to soften this year, while a economic slowdown would affect demand for plywood in Japan and other markets.

“We are not very bullish on the timber sector this year due to the weak global economic sentiments. A possible second recession would affect housing starts in Japan and other economies and impact the demand for timber products,” said a Ta Ann spokesman

He told The Edge Financial Daily that 2011 had been a good year for the timber market due to rising log and plywood prices. An industry observer noted that the plywood prices increased last year due to the anticipated rise in demand for timber for reconstruction work in Japan.

Plywood prices increased some 12% last year after the Japan earthquake due to speculative buying on reconstruction efforts. However, plywood prices have since eased to around US$620 (RM1,941) per cubic metre due to inventory build-up in the country. Japan is the biggest plywood export market for local timber players.

“Demand from Japan has been flattish due to the build-up in inventory. We expect plywood prices to remain around US$630 per cu m as we do not see any increase in demand from Japan just yet,” said the spokesman. A timber analyst also noted that some Japanese plywood producers had resumed production, which prevents any boost in plywood imports to Japan.

Last week, Malaysian Timber Industry Board director-general Dr Jalaluddin Harun said timber players would also need to compete with soft plywood suppliers from Canada and Russia in the Japanese market.



The Ta Ann spokesman noted that Japan has been importing soft plywood since the 1990s.

“Japan’s market consists of 80% soft plywood and 20% hard plywood (tropical plywood). This has always been the case since the 1990s. As such, I do not foresee the soft wood players to eat into the hard plywood market share as both have different applications and usage,” he said.

He said log prices would also soften in the coming months due to price correction.

“Last year, log prices had increased from US$220 to US$260 per cu m. However, this could not be sustained as the prices are becoming too expensive for markets such as India,” he said.

As such, he noted that Ta Ann would see its oil palm plantations remain the main contributor to the group’s profits due to higher fresh fruit bunch (FFB) production and increasing mature hectarage.

“The oil palm business would contribute about 80% to our earnings. We expect crude palm oil prices to remain strong at the current RM3,000 per tonne levels while our production would increase by 25% to 30% to 600,000 tonnes this year,” he said.

A timber analyst said reconstruction efforts in Japan are expected to start in the first half of 2012 as any further delay would affect the national’s economic productivity. Since the earthquake, Japan has approved up to ¥15.3 trillion (RM623 billion) for reconstruction works.

“We foresee plywood exports to be flattish or increase marginally this year. Note that any global economic slowdown would impact the housing starts in key markets such as India, China and Japan,” he said. For the first 11 months of 2011, Japan imported 3.37 million cu m of plywood, which is a 17.6% increase from the corresponding period in 2010.

In a recent report, RHB Research said Ta Ann and Jaya Tiasa Holdings Bhd are becoming “quasi-plantation stocks” as their plantations contribute over 70% to their earnings.

“Jaya Tiasa and Ta Ann would still enjoy relative robust earnings growth due to significant increase in their FFB production volumes over the next two years as a result of maturing hectarage. This could provide earnings comfort for investors and cushion the more volatile earnings from timber,” it said.

It maintained a “neutral” call on the timber sector. It has a fair value of RM7.80 and RM6.97 for Jaya Tiasa and Ta Ann respectively.

Jaya Tiasa and Ta Ann closed at RM7.09 and RM5.50 respectively last Friday.


This article appeared in The Edge Financial Daily, January 16, 2012.



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Jaya Tiasa and Ta Ann to benefit from plantations

Timber
Maintain neutral: Given the recent rally in the plantation sector, we believe this will spur investor interest in quasi-plantation stocks such as Jaya Tiasa Holdings Bhd and Ta Ann Holdings Bhd. While both companies are perceived as timber companies, their earnings profiles have changed over the years, with more than 70% of earnings likely to be contributed by their plantation divisions.

We have a favourable view on the plantation sector in light of the risk of supply shortages with the onset of the La Nina weather phenomenon amid inelastic demand that is unlikely to fall off the cliff. The plantation sector is supported by high crude oil prices and continued strength in liquidity flows in the market.

Notwithstanding our relatively flat crude palm oil (CPO) price assumptions of RM3,100 per tonne in 2012 and RM2,900 per tonne in 2013, we highlight that Jaya Tiasa and Ta Ann will still enjoy relatively robust earnings growth due to significant increase in their fresh fruit bunch (FFB) production volumes over the next few years as a result of increasing mature hectarage.

This could provide “earnings comfort” to investors and help to cushion the more volatile earnings from timber. We believe this will help support the share price performance of Jaya Tiasa and Ta Ann, vis-a-vis pure timber play companies such as WTK Holdings Bhd and Lingui Development Bhd, given the current lacklustre earnings from timber.

We maintain our earnings forecasts. The risks include: (i) lower than expected improvement in Japan’s housing starts; and (ii) price discounting from neighbouring countries with lower cost of production, resulting in lower exports from Malaysia to its major export markets.

In line with the upgrade in our target price earnings ratio for the plantation sector, we adjust our target PER (from 12 to 13 times) for the plantation division of Jaya Tiasa and Ta Ann accordingly. Hence, our fair value for Jaya Tiasa is raised to RM7.80 (from RM7.28) and for Ta Ann to RM6.97 (from RM6.49).

We maintain our “neutral” call on the timber sector as we remain cautious that the recovery in Japan housing starts could stall due to a protracted slowdown in the global economy. This could weigh on timber prices and earnings over the longer term. Nevertheless, we still like Jaya Tiasa and Ta Ann, as there will be a significant boost to their earnings from the plantation division due to increasing FFB production volume and favourable CPO prices. — RHB Research Institute, Jan 11


This article appeared in The Edge Financial Daily, January 12, 2012.



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KLCI struggles to extend gains as external concerns persist

KUALA LUMPUR (Jan 12): The FBM KLCI struggled to stay in positive territory at mid-morning on Thursday as key regional markets traded mixed following the softer overnight close at Wall Street.

Asian shares were subdued and the euro hovered near a 16-month low on Thursday as worries about euro zone sovereign funding kept investors risk-averse ahead of a Spanish debt sale that is seen as a key test of confidence, according to Reuters.

The FBM KLCI edged up 0.17 of a point at mid-morning.

Gainers led losers by 221 to 197, while 238 counters traded unchanged. Volume was 333.23 million shares valued at RM251.65 million.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note Thursday said the FBM KLCI’s resistance areas of 1,524 and 1,535 may cap market gains, whilst obvious support areas may be located at 1,500 and 1,522.

“Due to the US markets’ quiet tone last night; we could be in for yet another benign day of trading activity,” he said.

At the regional markets, Japan’s Nikkei 225 slipped 0.71% to 8,388.11, Hong Kong’s Hang Seng Index shed 0.14% to 19,124.80, South Korea’s Kospi lost 0.28% to 1,840.38 and Singapore’s Straits Times Index was down 0.16% to 2,742.66.

Meanwhile, the Shanghai Composite Index added 0.07% to 2,277.65 and Taiwan’s Taiex rose 0.08% to 7,194.15.

On Bursa Malaysia, Pos Malaysia was the top gainer at mid-morning and added 14 sen to RM2.71; Kulim added 10 sen to RM4.41, Can-One, Proton and CBIP rose nine sen each to RM1.74, RM5.37 and RM4.84, Jetson and Genting eight sen each to RM1.32 and RM10.84, Ann Joo seven sen to RM1.87 and Sarawak PLANTATION []s six sen to RM2.60.

Among the decliners, Ta Ann fell 40 sen to RM5.20, KLK down 12 sen to RM24.58, Tan Chong nine sen to RM4.20, Shell and Top Glove down seven sen each to RM9.43 and RM5.18, NCB, Ewein and Kossan down six sen each to RM3.86, 79 sen and RM3.51 respectively, while NSOP fell five sen to RM5.55.

The actives included Pos, Proton, OSK, RedTone, Hibiscus and Envair.



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