KLCI up more than 23 points week-on-week

KUALA LUMPUR (May 4): The FBM KLCI rose 23.24 points week-on-week, and was among the better performers compared with its regional peers on Friday.

The FBM KLCI rose 7.87 points to close at 1,691.04 on Friday, lifted by gains at blue chips including Petronas Dagangan, Tenaga, Genting and AirAsia.

Gainers outpaced losers by 456 to 274, while 352 counters traded unchanged. Volume was 1.33 billion shares valued at RM1.59 billion.

Asian shares were mixed for a second successive day on Friday as another batch of lacklustre U.S. data stoked concerns that the recovery in the world's biggest economy is faltering, according to Reuters.

At the regional markets, the Shanghai Composite Index added 0.49% to 2,452.01, Taiwan’s taiex added 0.54% to 7,700.95, Hong Kong’s Hang Seng Index fell 0.77% to 21,086.00, South Korea’s Kospi lost 0.30% to 1,989.15 and Singapore’s Straits Times Index

Japan’s Nikkei 225 was closed for a national holiday.

Meanwhile, European shares opened lower and industrial commodities like oil and copper were weak on Friday on concerns about the health of the world's biggest economy before a reading on the strength of the U.S. jobs market, said Reuters.

Weekend elections in France and Greece, which could complicate efforts to resolve the euro zone debt crisis, were also weighing on sentiment, leaving the euro steady against the dollar at around $1.3150 and debt markets little changed, it said.

On Bursa Malaysia, Nestle was the top gainer on Friday and rose 40 sen to RM55.90, Allianz, Aeon and Petronas Dagangan added 20 sen each to RM4.75, RM10 and RM19.50 respectively, Coastal Contracts 19 sen to RM2.13, SAM Engineering 18 sen to RM3.20, Tenaga and MBM Resources up 15 sen each to RM6.60 and RM5.24, while Maybulk and Genting rose 14 sen each to RM1.79 and RM10.64.

AirAsia was among the actively traded counters with 14.45 million shares done. The stock added four sen to RM3.64.

Other actives included Ariantec, Glomac, Maybulk, Astral Supreme, Metronic and Jotech.

Decliners on Friday included Knusford, Southern Acids, Cepco, Asia File, Ireka, Takaful, Hoover, Nakamichi, Aeon Credit and Lafarge Malayan Cement.



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Tenaga names COO as its new president and CEO

KUALA LUMPUR (May 3): TENAGA NASIONAL BHD [] has named its chief operating officer Datuk Ir Azman Mohd as its president and chief executive officer.

In a filing to Bursa Malaysia Securities on Thursday, Tenaga said that Azman was its COO from 2010 until his appointment as president.

Azman, who holds a Bachelor of Engineering from the University of Liverpool, started his career at Tenaga as an Assistant District Engineer for Temerloh and Mentakab in 1979, the utility company said.



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Tenaga up 2% on AAA ratings

KUALA LUMPUR (April 19) : TENAGA NASIONAL BHD [] (TNB) shares rose as much as 2% after Malaysian Rating Corp Bhd (MARC) affirmed its AAA ratings for the state-owned utility’s Islamic bonds with a stable outlook.

TNB added 14 sen to RM6.69 before settling lower at RM6.58 at lunch break. Some 2.5 million shares changed hands.

MARC said its rating for TNB is supported by the utility’s economic importance which should ensure a high degree of government financial support to sustain its existing ratings in the future.

TNB’s second quarter net profit rose more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd mitigated the impact of costlier fuel to the utility’s profits.

TNB said net profit came in at RM2.82 billion in the quarter ended February 29, 2012 against RM641.1 million a year earlier as revenue grew 17% to RM8.63 billion from RM7.37 billion. It said its bottom line was also helped by higher electricity sales and foreign exchange translation gains.



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Stocks to Watch PBB, TNB, Eversendai, Century Software, FSBM

KUALA LUMPUR (April 18): External factors — especially those emanating from Europe and the US — are seen as crucial drivers of global stock markets on Thursday. Investors will continue to monitor Spain government bond sales and US corporate earnings as they weigh the impact of pre-election sentiment in Malaysia.

While trading volume across the Malaysian exchange has increased due to transactions for penny and ACE Market stocks, analysts are also mindful of the lower traded value. This, they said, is an indication that the broader market and blue chip stocks could still in consolidation mode due to cautious trade.

The FBMM KLCI of 30 blue chip stocks added 2.67 points to close at 1,598.86 on Wednesday, just short of the psychological 1,600-point barrier. A total of 2.13 billion shares worth RM1.62 billion were traded.

Stocks to watch on Thursday include PUBLIC BANK BHD [] (PBB), TENAGA NASIONAL BHD [] (TNB), Eversendai Corp Bhd, Century Software Holdings Bhd, and FSBM HOLDINGS BHD [].

PBB says its first quarter net profit rose 6% from a year earlier as higher interest and fee-based income, besides lower allowance for impaired loans, mitigated the impact of higher operating expenses. It said net profit came to RM940.81 million in the quarter ended March 31, 2012 against RM884.06 million previously. Revenue was up 13% to RM3.37 billion from RM2.99 billion.

Malaysian Rating Corp Bhd (MARC) has affirmed its AAA ratings for TNB's Islamic bonds with a stable outlook. The rating is supported the utility's economic importance which should ensure a high degree of government financial support to sustain its existing ratings in the future, according to MARC.

South Korea's Hyundai Engineering & CONSTRUCTION [] Co Ltd has roped in Malaysia's Eversendai as a subcontractor for Package 2 of the Qatar National Museum project. The package is worth QAR160 million (RM134 million). Eversendai said it will fabricate and supply steel structures for the construction of the museum.

Century Software has clinched two contracts worth a combined RM5.6 million from the Inland Revenue Board (LHDN). The job includes the maintenance and upgrade of accounting software for the client, Century said.

Information TECHNOLOGY [] firm FSBM will trade ex-rights on Thursday. The firm is undertaking a renounceable rights issue of up to 60.32 million new shares with an equal number of free new detachable warrants at an issue price of 30 sen per rights unit. The exercise is undertaken on the basis of one rights share and one warrant for one existing unit held in FSBM. The rights units will start trading on the local exchange next Tuesday.



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Stocks to watch Eversendai, Boustead, Tenaga, Genting Plantations

KUALA LUMPUR (April 14): Malaysian shares are anticipated to rise next week and analysts expect the FBM KLCI to extend its rally higher supported by positive sentiment on good Q1 earning result, further stimulus from global central banks, easing borrowing costs in Europe and stronger than expected China’s economic recovery.

Investor jitters at the regional markets over rising tensions in the Korean Peninsula dissipated with North Korea’s botched missile launch.

However, euro zone crisis is flaring up and debt auctions by safe-haven Germany and current bad boy Spain in the coming week will provide a gauge how far investor sentiment has changed since the shock and awe of recent ECB liquidity injections has worn thin, according to Reuters.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said the impressive rebound made by China stock market (China Shanghai composite posted best-in-two-months daily performance last week) would give more upside momentum to the emerging markets including Malaysia.

“As China is the world's biggest importer of commodities, we reckon stronger Chinese stocks and weaker USA dollar will lead to more commodity buying (FTSE China climbed 4%, CRB Index up 1% and Dollar Index down 2% respectively) which in turn will benefit Malaysian stocks.

Among the stocks that could be in focus on Bursa Malysia are Eversendai Corp Bhd, BOUSTEAD HOLDINGS BHD [], TENAGA NASIONAL BHD [] and Genting PLANTATION []s Bhd.

Eversendai Corp will undertake a 193 million riyal (RM158 million) structural steel job for the railway station at King Abdul-Aziz International Airport in Saudi Arabia.

The company said last Friday that it ha been appointed as subcontractor for the project by Saudi Binladin Group Architecture & Building CONSTRUCTION [] Division.

Bosutead has roped in Luxembourg-based Ikano Holding SA as a joint venture (JV) partner to acquire prime Kuala Lumpur land where both companies intend to develop and manage a shopping centre.

Boustead last Friday said the JV would it to increase its portfolio of retail investment PROPERTIES [] and leverage on its expertise to jointly develop and manage a shopping centre in the Kuala Lumpur city centre location," Boustead said.

Ikano owns and runs IKEA retail outlets across South East Asia under a franchise agreement with IKEA System BV.

Tenaga could extend its gains on Monday on the back of its net profit rising more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd mitigated the impact of costlier fuel to the state-owned utility's profits.

The stock rose 10 sen to close at RM6.61 last Friday.

Genting Plantations will acquire a controlling 63.2% stake in a joint venture (JV) company for US$116 million (about RM355 million), a move which will give the acquirer access to some 74,000 ha of oil palm plantation in Kalimantan, Indonesia.

In a statement to Bursa Malaysia on Friday, Genting Plantations said it would jointly own the Singapore-based JV entity Global Agripalm Investment Holdings Pte Ltd with Global Agrindo Investment Co Ltd which will hold the remaining stake. Global Agrindo is part of Indonesia-based Sin Tek Huat Group.



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TNB up 1.5% on better quarterly financials

KUALA LUMPUR (April 13): Shares of TENAGA NASIONAL BHD [] (TNB) gained as much as 1.5% on Friday morning following updates that the state-owned utility's second quarter (2Q) net profit rose more than four fold from a year earlier.

The stock rose 10 sen to an intraday high of RM6.61 before settling lower at RM6.59 at lunch break.

TNB's net profit came in at RM2.82 billion in 2Q ended Feb 29, 2012 against RM641.1 million a year earlier, as revenue grew 17% to RM8.63 billion from RM7.37 billion.

CIMB Investment Bank Bhd said in a note that it expected a better second half for TNB as the utility uses more gas to generate electricity against a backdrop of higher power demand in the country. CIMB raised its target price for TNB by 4.3% to RM7.98 from RM7.65 with a "trading buy" call.



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Stocks to Watch Axis REIT, K-One Tech, IOI, Tan Chong, TNB

KUALA LUMPUR (April 12): Malaysian stocks could take the cue from China's first quarter gross domestic product (GDP) numbers, and the US corporate earnings dynamics on Friday.

Against the backdrop of external uncertainties, analysts cautioned that the FBM KLCI could see limited gains in the absence of domestic catalysts. The FBM KLCI rose 4.1 points to close at 1,601.27 on Thursday.

Stocks to watch on Friday include Axis Real Estate Investment Trust, K-ONE TECHNOLOGY [] BHD [], IOI Corp Bhd, TAN CHONG MOTOR HOLDINGS BHD [], and TENAGA NASIONAL BHD [] (TNB).

Axis REIT plans to acquire land within Negeri Sembilan's Nilai Industrial Area for RM26.5 million. The leasehold sites will be acquired from LRS Property Sdn Bhd, according to the acquirer.

K-One Tech, an electronic systems manufacturer, said one of its three factories in Ipoh was gutted by fire on Tuesday afternoon. The damaged is estimated at RM13 million, it said.

IOI's 30.4% associate Bumitama Agri Ltd rose as much as 36% on the PLANTATION [] firm's debut on the Singapore bourse on Thursday. Bumitama shares added 27 Singapore cents to an intraday high of S$1.02 (RM2.49) before closing lower at 98 Singapore cents.

CIMB Investment Bank has raised its fair value for Tan Chong from RM4.60 to RM4.75 with a "Neutral" recommendation.

TNB's second quarter net profit rose more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd (Petronas) mitigated the impact of costlier fuel to the state-owned utility's profits.

TNB said its bottom line was also helped by higher electricity sales and foreign exchange translation gains. It said net profit came in at RM2.82 billion in the second quarter ended Feb 29, 2012 against RM641.1 million a year earlier as revenue grew 17% to RM8.63 billion from RM7.37 billion.



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Tenaga 2Q profit quadraples on fuel-cost compensation

KUALA LUMPUR (April 12): TENAGA NASIONAL BHD []'s (TNB) second quarter net profit rose more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd mitigated the impact of costlier fuel to the state-owned utility's profits.

In a statement to the exchange on Tuesday, TNB said its bottom line was also helped by higher electricity sales and foreign exchange translation gains. It said net profit came in at RM2.82 billion in the second quarter ended February 29, 2012 against RM641.1 million a year earlier as revenue grew 17% to RM8.63 billion from RM7.37 billion.

Cumulative first-half net profit rose 76% to RM2.59 billion from RM1.47 billion a year earlier while revenue was up 15% to RM17.32 billion from RM15.1 billion, TNB said.

The firm said it plans to reward shareholders with a dividend per share of 5.09 sen during the quarter in review.



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KLCI reverses earlier loss, breaches 1,600-level at mid-day break

KUALA LUMPUR (April 12): The FBM KLCI reversed its earlier losses and breached the 1,600-point level at the mid-day break on Thursday, as regional markets turned positive as well.

The FBM KLCI added 0.24% or 3.76 points to 1,600.93 at the mid-day break, lifted by gains at select blue chips.

Gainers trailed losers by 267 to 302, while 308 counters traded unchanged. Volume was 553.07 million shares valued at RM574.19 million.

Asian shares eked out small gains and the euro steadied on Thursday, reflecting investor caution over sovereign funding for troubled eurozone economies Spain and Italy, despite their declining yields that helped global equities rebound overnight, according to Reuters.

An encouraging start to the earnings season helped US stocks snap a five-day losing streak, spurring investors to scale back safe haven buying of gold and US and German government debt on Wednesday, but further selling of these perceived safe assets weakened in Asia on Thursday, its aid.

At the regional markets, the Shanghai Composite Inded added 0.40% to 2,318.16, Hong Kong's Hang Seng Index rose 0.36% to 20,212.83, Japan's Nikkei 225 gained 0.29% to 9,.485.52, Taiwan's Taiex edged up 0.04% to 7,659.70, Singapore's Straits Times Index rose 0.58% to 2,963.29 while South Korea's Kospi shed 0.90% to 1,976.83.

BIMB Securities Research in a note Thursday said that buoyed by Alcoa's better than expected earnings for the 1Q12 plus easing concerns over Europe, investors became less edgy thus the 89 points gain for the Dow Jones Industrial Average to surpass the 12,800 level.

The research house However said it still detected a hint of skepticism as Wall Street closed 40 points off its intra-day high.

As for Europe, successful sale of bonds by Germany, Italy and Spain had allayed fears of a deepening crisis, it said.

In response to indications of more bond purchases, yields for both Italy and Spain declined hence pushed European bourses all higher.

It was a rather mixed day for Asian markets as most are still coping with indications from both the US and Europe.

"Malaysia was closed for public holiday (on Wednesday) after another interesting day on Tuesday with the FBM KLCI adding almost 6 points to inch closer to 1,600 again.

"We reckon buying on the local bourse to persist supporting any weaknesses. Today, we may see the 1,600 mark to be breached again," it said.

On Bursa Malaysia, BAT was the top gainer in the morning session and rose 86 sen to RM55.56, SMPC 34 sen to RM1.48, Genting PLANTATION []s up 21 sen to RM9.73, Timwell up 14 sen to 95 sen, Tradewinds Plantations up 12 sen to RM5.83, CyberTowers up 11.5 sen to 70.5 sen, MSC up 11 sen to RM4.72, Kluang up 10 sen to RM2.90, while Tenaga and Advanced Packaging added nine sen each to RM6.46 and RM1.39 respectively.

The decliners included Dutch Lady, Manulife, GAB, Chin Teck, Toyo Ink, BLD Plantations, Top Glove, Pansonic and KLK, while the actives included Asia Bio, Tiger Synergy, Metronic, Asia Global, DGSB and Tambun.



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Tenaga up 1.3% in anticipation of record profit

KUALA LUMPUR (April 12) : TENAGA NASIONAL BHD [] (TNB) shares rose as much as 1.3% in morning trade as investors chased the stock in anticipation that the state-owned utility’s announcement of a record quarterly profit on Thursday.

The stock rose eight sen to an intraday high of RM6.45 as at 10.51am, placing it among top gainers across the Malaysian exchange.

Analysts said TNB may announce higher profits for the second quarter ended February 29, 2012, helped mainly by RM2 billion worth of cost-sharing payments from the government and Petroliam Nasional Bhd. In a note, Maybank Investment Bank said TNB could have registered a profit of RM2.16 billion (excluding foreign exchange (forex) translation), a record in the company’s history.

Excluding forex and cost-sharing payments, Maybank said TNB could have posted a core net profit of RM658 million in the second quarter, a 42% increase from a year earlier. This compares to a net loss of RM224.7 million in the preceding first quarter.



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RHB Research upgrades utilities sector to Overweight

KUAL A LUMPUR (April 12): RHB Research Institute Sdn Bhd has upgraded the Utilities sector to Overweight from Neutral and said it was turning more positive on Tenaga Naional Bhd given better visibility of its earnings outlook with the improved gas supply.

In a note April 12, the research house said that while imported LNG pricing remained an issue, it believed that the implementation of a dual pricing system wass more likely and therefore have an earnings neutral impact to Tenaga.

“As for YTL Power, the stock lacks catalysts while dividends are no longer attractive. However, sentiment may improve if the 1Bestarinet project helps to monetise its WiMAX network.

“Given our recent upgrade on TNB, we upgrade the sector to Overweight, from neutral,” said RHB Research.



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RHB Research upgrades Tenaga to Outperform, ups fair value to RM7.60

KUALA LUMPUR (April 10): RHB Research Institute Sdn Bhd has upgraded TENAGA NASIONAL BHD [] to Outperform and raised its fair value for to RM7.60 (from RM6.50 previously) and said it was turning more positive on Tenaga given better visibility of its earnings outlook with the improved gas supply.

In a results preview on Tuesday, RHB Researh said given that the gas supply situation had improved significantly to 1,100-1,150 mmscfd in 2Q (1Q: 1,050 mmscfd), it expectes earnings to jump quareter-on-quarter.

“We estimate 2Q core net profit of RM500 million-RM600 million (1QFY12: RM196 million, 2QFY11: RM442 million),” it said.

RHB Research said it gathered that Tenaga would write back the RM2.05 billionn compensation in 2Q.

It said this opened the possibility for Tenaga to resume paying dividends. For 1HFY12, we estimate electricity unit sales growth of 4.6%. This is within management’s guidance and our forecast of 4-5% and 4% respectively.

“We are turning more positive on Tenaga given better visibility of its earnings outlook with the improved gas supply. Fair value raised from RM6.50 to RM7.60 based on unchanged target FY13 PER of 15x and EPS of 50.8 sen after rolling over the valuation base year to 2013,” it said.



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Ingress clinches RM27 million TNB project

KUALA LUMPUR (April 6) : Ingress Corp Bhd will establish a switching station for TENAGA NASIONAL BHD [] (TNB) in a deal worth RM26.6 million. The 275-kilovolt station will be set up at Pantai Remis, Selangor.

In a statement to the exchange on Friday, Ingress said TNB has issued a letter of intent for the project to a joint venture between two subsidiaries of Ingress, namely, Multi Discovery Sdn Bhd and Ramusa Engineering Sdn Bhd.

“The project is expected to contribute positively to the earnings of the Ingress group,” Ingress said.

According to Ingress, the estimated one-and-half year project will start between May and July this year which is the second quarter of its current financial year ending Jan 31, 2013.



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KLCI edges lower at mid-morning as regional markets dip

KUALA LUMPUR (March 29): the FBM KLCI edged lower on Thursday in line with the weaker sentiment at key regional markets, following the sharp decline at the Shanghai Composite Index a day earlier.

Asian shares eased for a second day in a row on Thursday, as investors limited their risk exposures on concerns about growth prospects in the world's two largest economies, the United States and China, according to Reuters.

Commodity related assets were likely to be on the defensive after oil and copper fell the previous day, while a sharp decline in Chinese shares will weigh on the Australian dollar, as China is Australia's single largest export market, it said.

The FBM KLCI was down 0.29 of a point to 1,583.46 at 10am. Gainers trailed losers by 143 ti 208, while 238 counters traded unchanged. Volume was 356.91 million shares valued at RN160.94 million.

At the regional markets, Japan’s Nikkei fell 0.88% to 10,093.20, Hong Kong’Hang Seng Index lost 1.13% to 20,649.60, the Shanghai Composite Index shed 0.75% to 2,267.81, Taiwan’s taiex lost 1.83% to 7,890.95, South Korea’s Kospi fell 1.26% to 2,006.14 and Singapore’s Straits Times Index fell 0.54% to 2,999.55.

BIMB Securities Research in a note March 29 said equity markets ended lower (on March 28) amid a directionless trading day.

With no new developments, traders revisited “old” concerns of slowing global economy to justify their selling on oil and commodities related stocks, it said.

“As a consequence, the Dow Jones Industrial Average dipped almost 72 points to 13,126. Reflecting the less than optimistic sentiments, European bourses also succumbed to the selling pressure and closed yesterday’s session broadly lower,” it said.

The research house said Asian equities followed suit with only a handful managed to close on a positive territory.

Taking cue from a weaker regional performance, the FBM KLCI lost 4 points to just below the immediate 1,585 support at 1,583.75, it said.

“Meanwhile, we again saw a net foreign participation of RM132 million yesterday pushing year-to-date total to RM4.67billion.

“Although the amount is not huge, foreign funds have been trickling in continuously for the month of March with a cumulative amount of a whopping RM2.8 billion. We expect some market weakness today with the immediate support at 1,580,” it said.

On Bursa Malaysia, GAB was the top loser at mid-morning and fell 16 sen to RM13.08, BLD PLANTATION []s down 15 sen to RM9.25, RHB Capital nine sen to RM&.81, Hong Leong Bank, Panasonic and Tenaga fell eight sen each to RM12.14, RM21.92 and RM6.34 respectively, SBC Corp seven sen to 91 sen, while Nestle, KrisAssets and HLFG fell six sen each to RM55.90, RM6.94 and RM12.22 respectively.

Naim Indah Corp was the most actively traded counter wit h 47.23 million shares done. The stock rose 1.5 sen to 49.5 sen.

Other actives included SuperComnet, Ariantec, metronic, Iris Corp, Key West, Hubline warrants and Bintai.

Gainers included Dutch Lady, BAT, Toyo Ink, shell, Crescendo, MUH, Southern acids, UAC and MISC.



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KLCI slips at mid-day break in line with regional markets

KUALA LUMPUR (March 28): The FBM KLCI slipped at the mid-day break on Wednesday in line with the overall weaker sentiment at key regional markets, after US stocks retreated from near four-year peaks on Tuesday.

Asian shares drifted lower on Wednesday as investors waited for more clues on the state of the U.S. economy, after hopes for further stimulus from the U.S. Federal Reserve strengthened risk appetite and lifted prices the previous session, according to Reuters.

Te FBM KLCI shed 0.91 of a point to 1,587.19, weighed by losses at select blue chips including BAT, MISC and Tenaga.

Gainers trailed losers by 173 to 383, while 296 counters traded unchanged. Volume was 637.64 million shares valued at RM341.29 million.

The ringgit weakened 0.20% to 3.0635 versus the US dollar; crude palm oil futures for the third month delivery rose RM 9 per tonne to RM3,490, crude oil fell 57 cents per barrel to US$106.76, while gold lost 88 cents an ounce to US$1,679.00.

Among the decliners in the morning session, United PLANTATION []s fell 16 sen to RM24.72, BAT down 10 sen to RM54, Parkson and MISC down eight sen each to RM5.42 and RM5.21, WCT and Tenaga lost seven each to RM2.37 and RM6.42, while Box-pak, Batu Kawan and Ivory fell six sen each to RM2.18, RM18.62 and 65 sen respectively.

Shares of Supercomnet Technologies Bhd extended their losses in active trade for the second day on Wednesday after the proposed disposal of an 18.66% stake by several major shareholders fell through.

Supercomnet fell 13 sen to 23 sen with 85.09 million shares traded.

Other actives included Utopia, Metronic, Ariantec, Silver Bird, and Tiger Synergy.

Meanwhile, the gainers included Dutch Lady, Takaful, Bintulu Port, TDM, Widetech, Alliaaz, KLK< KFCH and Kulim.



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KLCI reverses gains, slips into negative territory

KUALA LUMPUR (March 26): The FBM KLCI slipped and closed in negative territory on Monday in line with most of the key regional markets that reversed their earlier gains and fell in later trade, extending losses after weak PMI reports last week stoked fears that China's economy was slowing and the euro zone is sliding into recession.

The FBM KLCI fell 2.85 points to close at 1,582.98, weighed by losses at index-linked PLANTATION [] stocks and select blue chips including Tenaga and MISC.

At the regional markets, Taiwan’s Taiex lost 1.35% to 7,967.62, South Korea’s Kospi fell 0.38% to 2,019.19, Singapore’s Straits Times Index xx, while Japan’s Nikkei 225 gained 0.07% to 10,018.24, the Shanghai Composite Index added 0.05% to 2,350.690 and Hong Kong’s Hang Seng index closed flat at 20,0668.86.

Meanwhile, European shares rose on Monday in a technical bounce, after recording their steepest weekly loss since the start of the year, as investors searched for bargains and positioned themselves for a potential strong German Ifo figure.

On Bursa Malaysia, Carlsberg was the top loser and fell 26 sen to RM10.20, Jaya Tiasa 22 seen to RM8.08, Chin teck Plantations fell 20 sen to RM9.10, Warisan down 19 sen to RM2.41, Tenaga lost 18 sen to RM6.50, JT International and Litrak lost 16 sen each to RM6.60 and RM3.94, Far East 15 sen to RM7.40 while AirAsia fell 13 sen to RM3.46.

Among plantations, Genting Plantations lost 22 sen to RM9.25, while KLK and IOI Corp fell four sen each to RM23.86 and RM5.34.

Among the gainers, Dutch Lady added 42 sen to RM31.40, SMPC up 28 sen to RM1.84, Aeon 25 sen to RM9.40, BAT 20 sen to RM54, Supercomnet added 19.5 sen to 49.5 sen, PUC and Hartalega 14 sen each to 29 sen and RM8.09, Unisem 13 sen to RM1.46, HLFG 12 sen to RM12.12 while Malayan Flour Mills was up 11 sen to RM4.44.

The actives included Focus, metronic, Supercomnet, Ariantec, Naim Indah Corp, Flonic and Karambunai.



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KLCI trends marginally higher at mid-morning

KUALA LUMPUR (March 26): The FBM KLCI trended marginally higher on Monday, in line with the moderate gains at the regional markets, following the rise pf US stocks in light volume last Friday, buoyed by rising energy and basic materials shares, as the S&P 500 kept showing resilience even as it posted its second negative week so far this year.

At 10am, the FBM KLCI gained 0.91 of a point to 1,586.74.

Gainers trailed losers by 172 to 197, while 254 counters traded unchanged. Volume was 338.36 million shares valued at RM147.06 million.

Asian shares edged up on Monday, finding some support after losing ground last week on fears of the impact of an economic slowdown in China, and the euro held near a three-week high, according to Reuters.

Equity markets had got off to a flying start in 2012, but have been wobbling since China lowered its growth forecast for the year to 7.5 percent in mid-March, with concerns exacerbated by weak factory data from China and Europe last week, it said.

At the regional markets, the ShangHai Compoite Index gained 0.24% to 2,355.07, Hong Kong’s Hang Seng Index was up 0.15% to 20,700.50, and Singapore’s Sraits Times Index edged up 0.10% to 2,987.1.

Meanwhile, japan’s Nikkei 225 fell 0.11% to 10,022.90, Taiwan’s Taiwex lost 0.92% to 8,001.94 and South korea’s Kospi fell 0.38% to 2,019.12.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on March 26 said the FBM KLCI gained 14.43 points to close at 1,585.83 last Friday.

“The local market rose in small daily spurts, with buying on some selective blue chips as well as obvious penny stock plays. The obvious areas for the FBM KLCI are in the 1,549 to 1,585 zone.

“The next resistance levels of 1,587 and 1,597 may see heavy liquidation activities,” he said.

Meanwhile, ECM Libra research in its Market outlook and strategy for 2Q2012 said that Overall, its 2Q2012 outlook was that the FBM KLCI was toppish at 1,600

The research house said upside was limited based on the FBMKLCI’s relatively high PER, but downside was also limited in the run-up to General Elections.

“In 2H2012, we expect the FBMKLCI to trade in a range of 1500-1600. If the General Election is held in June 2012, whatever outcome we think will lead to a market correction in 3Q2012.

“4Q2012 could see the FBMKLCI recovering to end the year at 1600 as the market looks forward to 2013,” it said.

“We are thus Neutral on all sectors except for an Overweight on CONSTRUCTION [] and Building Materials. Buy IJM, WCT, Lafarge, Lion Industries. In PLANTATION []s, switch from IOI to KLK,” it said on Monday.

CIMB chief economist Lee Heng Guie in his regional ccompass report released on March 26 said global growth risks appeared to be easing, going by 1) the encouraging global indicators, 2) ebbing funding pressure in the financial markets, and 3) receding Greece debt default risks, at least for now.

“While the threat of a financial catastrophe has been averted, stronger financial firewalls are needed to safeguard against the risk of contagion in the eurozone.

“We remain wary of an escalation of geopolitical tension in the Middle East that could trigger a global oil price shock. Emerging markets may also have to contend with volatile capital flows,” he said.

ON Bursa MalaySia, the top gainer at mid-morning was SuperComnet that added 13.5 sen to 43.5 sen, MajuPerak 11.5 sen to 40 sen, Maybank up nine sen to RM8.84, Nestle, Shell, Yinson and Genting up eight sen each to RM55.98, RM10.10, RM1.81 and RM11.08 respectively, while Tradewinds Plantations gained seven sen to RM4.87.

Among the decliners, Petronas Dagangan fell 18 sen to RM18.30, Far East down 15 asen to RM7.40, Tenaga and Tradewinds fell nine sen each to R6/59 and RM9.70, Aeon Credit, Deleum, WCT and KESM fell seven sen each to RM8.60, RM2.51, RM2 respective, while Kein Hin and LPI lost six sen each tp RM45 sen and RM13.94.

The actives included Karambunai, Metronic, Trinity, Ariantec, SAAG, Supercomnet and MaujuPerak.



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KLCI closes marginally higher, stays above 1,580-level

KUALA LUMPUR (March 22): the FBM KLCI closed marginally higher on Thursday in line with the mostly mixed regional markets.

However, European stocks slipped on Thursday, keeping the benchmark world equity index below recent eight-month highs, while the dollar was weaker against the yen as data showing China's factory activity shrank renewed concerns about global growth, according to Reuters.

The HSBC flash PMI, the earliest indicator of China's industrial activity, fell to 48.1 in March from February's four-month high of 49.6, with new orders sinking to a four-month low, it said.

It raises the prospect for a further monetary policy easing to help underpin growth, although lingering inflation risks put Beijing's policymakers in a dilemma, it said.

The 30-stock FBM KLCI closed 0.71 of a point higher at 1,583.24, lifted by select blue chips including KLK and Tenaga. Losers overtook gainers by 379 to 363 whie 360 counters traded unchanged. Volume was 2.86 billion shares valued at RM1.5 billion.

At the regional markets, the Shanghai composite Index shed 0.10% to 2,375.77, Singapore’s Straits Times Indexwas down 0.74% to 2,983.48 and South Korea’s Kospi was down 0.05% to 2,026.12.

Elsewhere, Hong Kong’s Hang Seng Index gained 0.22% to 20,901.56, Japan’s Nikkei 225 added 0.40% to 10,127.08 and Taiwan’s Taiex rose 0.98% to 8,059.94.

KLK was the top gainer and added 40 sen to RM23.82, Takaful rose 23 sen to RM2.65, Cybertowers and Jaya Tiasa up 19 sen each to 54 en and RM7.69, MHC PLANTATION []s up 17 sen to RM1.77, Southern Acids 15 sen to RM2.50, Sunchirin and Tenaga 13 sen each to RM1.55 and RM6.71, while Litrak gained 11 sen to RM4.10.

Metronic was the most actively traded counter with 347.7 million shares done. The stock was unchanged at 25.5 sen.

Other actives included Utopia, Ingenuity Solutions, Ariantec, Flonic, DBE Gurney, Hubline and Naim Indah Corp.

Decliners included Lafarge Malayan Cement, PPB, United Plantations, Nestle, Hightec, Kulim, RHB Capital and IOI Corp.



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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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Market Commentary

The FBM KLCI index gained 11.69 points or 0.75% on Wednesday. The Finance Index increased 0.53% to 14082.29 points, the Properties Index up 0.18% to 1039.21 points and the Plantation Index rose 0.18% to 8611.44 points. The market traded within a range of 7.30 points between an intra-day high of 1575.71 and a low of 1568.41 during the session.

Actively traded stocks include NICORP, CSL, YTL, TIGER, HWGB, EURO, AXIATA, SIME, ASUPREM and SILVER. Trading volume increased to 1273.33 mil shares worth RM1844.76 mil as compared to Tuesday’s 1163.12 mil shares worth RM1471.04 mil.

Leading Movers were CIMB (+14 sen to RM7.40), TENAGA (+15 sen to RM6.47), AXIATA (+6 sen to RM5.12), PETGAS (+48 sen to RM16.98) and PETCHEM (+8 sen to RM6.78). Lagging Movers were DIGI (-5 sen to RM3.95), YTLPOWR (-2 sen to RM1.77), HLBANK (-4 sen to RM12.06) and MMHE (-1 sen to RM5.35). Market breadth was positive with 444 gainers as compared to 334 losers. -- JF Apex Securities Bhd



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