KLCI falls 25.72 points in April

KUALA LUMPUR (April 30): The FBM KLCI closed higher on Monday but fell some 25.72 points in April, as investor sentiment took a beating given rising external and domestic uncertainties.

The FBM KLCI rose 2.81 points to close at 1,570.61 on Monday.

Gainers trailed losers by 297 to 388, while 318 counters traded unchanged. Volume was 945.42 million shares valued at RM1.38 billion.

Asian shares were mixed on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading was subdued with Japanese and Chinese markets closed, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.7% to 21,094.21, South Korea added 0.34% to 1,981.99, Taiwan’s Taiex was up 0.28% to 7,601.72 while Singapore’s Straits Times Index shed 0.26% to 2,973.91.

ON Bursa Malaysia, BAT was the top gainer and rose 74 sen to RM55.54, Aeon Credit added 64 sen to RM10.70, Shell rose 36 sen to RM10.28, Petronas Dagangan 30 sen to RM19.36, Nestle and Panasonic gained 20 sen each to RM55.30 and RM22.70, OSK 15 sen to RM1.71, Tradewinds and Knusford added 14 sen each to RM9.78 and RM1.94, while Toyo Ink gained 12 sen to RM1.53.

Ariantec was the most actively traded counter with 399.1 million shares done. The stock fell one sen to 24.5 sen.

Other actives included Utopia, Metronic, CSL, Astral Supreme, Focus, DRB-Hicom, Bumi Armada and BIMB warrants.

Decliners on Monday included SAM Engineering, Dutch Lady, Petronas Gas, MMHE, Kluang, Dayang Enterprise, Subur Tiasa. UAC and Bumi Armada.



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KLCI up at mid-day break, moves above 1,570-level

KUALA LUMPUR (April 30): The FBM KLCI brushed off the concerns arising from last weekend’s Bersih 3.0 rally that turned ugly and inched higher on Monday, in line with the gains at most regional markets, lifted by select blue chips in early trade.

The FBM KLCI was up 4.01 points to 1,571.81 at the mid-day break.

Gainers trailed losers by 229 to 285, while 299 counters traded unchanged. Volume was 398.95 million shares valued at RM422 million.

Asian shares rose on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading was subdued with Japanese and Chinese markets closed, according to Reuters.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.12% to 20,974.40, south Korea’s added 0.14% to 1,978.20, while Singapore’s Straits Times Index fell 0.20% to 2,975.62 and Taiwan’s Taiex shed 0.09% to 7,473.49.

MIDF Research in its weekly fund flow analysis said Malaysian stocks continued to attract foreign money last week.

It said foreign investors bought on net basis, Malaysian-listed shares amounted to RM356.1 million compared with RM408.8 million the week before. Foreign investors have now been net buyers of Malaysian stocks for 11 consecutive weeks now.

“We cross over to May this week.

“The adage “Sell in May and go away” is certainly not uncorroborated — the KLCI had recorded negative return for the month in six out of the last 10 years, averaging -3.2%. We therefore begin the month with a historical obstacle to surmount,” it said on Monday.

On Bursa Malaysia, Petronas Dagangan was the top gainer and added 24 sen to RM19.30, Aeon Credit and Nestle gained 20 sen each to RM10.26 and RM55.30, Tasek and Takaful was up 15 sen each to RM8.70 and RM4, Tradewinds PLANTATION []s up 14 sen to RM5.84, Toyo Ink and Carlsberg added 12 sen each to RM1.53 and RM11.60.

Meanwhile, RHB Capital and OSK Holdings rose on gaining the ministry of finance nod for a merger. RHB Capital rose 11 sen to RM7.36 whiel OSK was up 13 sen to RM1.69.

Ariantec was the most actively traded counter with 201.62 million shares done. The stock fell half a sen to 25 sen.

Other actives included Utopia, DRB-Hicom, CSL, Focus, Daya Materials, Bumi Armada and YTL Corp.

Decliners at mid-day included Dutch Lady, Jaya Tiasa, PacificMas, UAC, Amway, Bumi Armada and MMHE.



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KLCI inches higher at mid-morning, brushes off concerns after Bersih rally

KUALA LUMPUR (April 30): The FBM KLCI brushed off events over last weekend arising from the Bersih 3.0 rally and inched higher on Monday, in line with the gains at most regional markets, lifted by select blue chips in early trade.

At 10am, the FBM KLCI was up 3.64 points to 1,571.44.

Gainers led losers by 184 to 151, while 202 counters traded unchanged. Volume was 183.93 million shares valued at RM115.43 million.

Asian shares inched higher on Monday as weaker-than-expected U.S. growth data left open the possibility for more monetary stimulus from the Federal Reserve, but trading will likely be subdued with Japanese and Chinese markets closed, according to Reuters.

Global stocks ended higher on Friday on strong earnings reports, while the dollar dipped as data showed growth in the U.S. economy cooled in the first quarter to a 2.2% annual growth rate, below a 2.5% forecast, feeding views that the Fed could ease policy further to boost growth, it said.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.12% to 20,973.80, South Korea’s Kospi added 0.44% to 1,984.09, while Singapore’s Straits Times index fell 0.20% to 2,975.60 and Taiwan’s Taiex shed 0.27% to 7,460.38.

Maybank Investment Bank Bhd in a market strategy note Monday maintained its Neutral stance on the FBM KLCI and said it expects the market to continue pricing in political concerns ahead of the 13th General Elections (13GE).

It said last Saturday's Bersih 3.0 rally had thrown up the possibility of the 13GE being deferred.

“On the external front, renewed concerns over the Eurozone imply heightened volatility again for equity markets.

“Against such a backdrop, we expect domestic equities to stay range bound ahead of the 13GE, and advise investors to stay selective in their picks,” it said.

BIMB Securities Research said on Monday that in the US solid corporate earnings, improving economic growth and employment had kept investors upbeat on equities hence the higher closing for the Dow Jones Industrial Average at 13,228 (+24 points).

Meanwhile European bourses all closed higher possible on a rebound after an eventful week, it said.

“We believe this as a lull before the storm as the situation in Spain is ripe for traders to manufacture more volatility ahead.

“To recap, the country recently was downgraded by the S&P and recently reported its unemployment rate of 24.4% for 1Q12 should become as a main target to derail sentiments, it said.

The research house said Asian markets were weaker possibly spooked by the situation in Spain amid profit taking activities.

“Locally, the FBM KLCI fell almost 12 points to 1,567 ahead of the Bersih 3.0 Rally as investors continue to pare down their holdings.

“We believe outlook for the local bourse has deteriorated for the 2Q12 unless corporate earnings for the 1Q excel. Next support is seen at 1,560,” it said.

Among the gainers on Bursa Malaysia at mid-morning, Chin Teck added 29 sen to RM9.30, Aeon Credit and Petronas Dagangan up 22 sen each to RM10.38 and RM19.28, Tasek 21 sen to RM8.76, UMW and Carlsberg 14 sen each to RM7.97 and RM11.62, Genting PLANTATION []s 13 sen to RM9.52, Toyo Ink and KLK 12 sen each to RM1.53 and RM23.82, while Petra Energy added 11 sen to RM1.27.

Utopia was the most actively traded counter with 178.28 million shares done. The stock was unchanged at 8.5 sen.

Other actives included DRB-Hicom, XDL, CSL, Berjaya Corp. Daya Materials, Metronic and Oversea.

Decliners included PacificMas, Bumi armada, Dutch Lady, IJM Plantations, Sarawak Plantations, Batu Kawan, GAB and Gadang.



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KLCI dips to below 1,580-level, blue chips drag

KUALA LUMPUR (April 25): The FBM KLCI closed below the 1,580-point level on Wednesday, reversing its gains earlier in the morning session, weighed by losses including Genting, Tenaga, CIMB, KLK and Petronas Dagangan.

The index fell 2.93 points to 1,579.35.

Market breadth was weak with 405 losers, 315 gainers and 346 counters trading unchanged. Volume was 1.47 billion shares valued at RM1.53 billion.

Meanwhile, global shares rose on Wednesday ahead of the U.S. Federal Reserve's policy meeting, due mainly to signs of good demand for euro zone sovereign debt before a German bond sale, and some strong corporate earnings, according to Reuters.

Markets could take their cues from several planned public speeches by European Central Bank officials, which will be scrutinised for any signs it would consider more liquidity operations if the euro zone's problems worsened, it said.

At the regional markets, Japan’s Nikkei 225 rose 0.98% to 9,561.01, Taiwan’s Taiex added 0.86% to 7,563.18, and the Shanghai Composite Index gained 0.75% to 2,406.81 and Singapore’s Straits Times Index added 0.20% to 2,980.19.

Meanwhile, Hong Kong’s Hang Seng Index lost 0.15 % to 20,646.29 and South Korea’s Kospi shed 0.07% to 1,961.98.

Among the decliners on Bursa Malaysia, BAT fell 28 sen to RM55.12, KLK and TH PLANTATION []s lost 16 sen each to RM23.82 and RM2.65, CSL down 15 sen to RM1.48, UMS 14 sen to RM1.66, Yeo Hiap Seng 13 sen to RM2.88, Toyo Ink, Tanjung Offshore and MMC Corp down 12 sen each to RM1.36, 78 sen and RM2.62 respectively, while Quality Concrete lost 11 sen to RM1.24.

Utopia was the most actively traded counter with 186.1 million shares done. The stock added one sen to 9.5 sen.

Other actives included Ariantec, Ramunia, CSL, Metronic, Astral Supreme, HWGB and JCY.

Meanwhile, the gainers included Panasonic, UMWE, The Store, NSOP, SPB, Batu Kawan, Cepco, TDM and Scientex.



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KLCI falls in tandem with regional markets

KUALA LUMPUR (April 9): A slew of negative external developments weighed down investor sentiment at the local bourse, and the FBM KLCI closed in the red on Monday.

Asian shares fell on Monday as a sharp slowdown in U.S. jobs growth raised concerns about the strength of the world's largest economy, prompting investors to curb risk exposure ahead of more U.S. data and earnings as well as figures from China this week, according to Reuters.

China stocks fell 0.9 percent on Monday, led by property firms, after data showed the inflation rate rose more than expected last month, prompting speculation that Beijing may delay further easing of monetary policy, it said.

The FBM KLCI closed 7.59 points lower at 1,591.28.

Market breadth was negative with 468 losers, 238 gainers and 322 counters trading unchanged. Volume was 1.08 billion shares valued at RM1.08 billion.

At the regional markets, Japan’s Nikkei 225 fell 1.47% to 9.546.26, the Shanghai Composite index was down 0.90% to 2,285.78, south Korea’a Kospi fell 1.57% to 1,997.08, Taiwan’s Taiex was fell 1.27% to 7,600.87 and Singapore’ Straits Times Index shed 0.87% to 2,960.10.

On Bursa Malaysia, BAT was the top loser and fell 74 sen to RM54.72, KrisAssets down 21 sen to RM6.67, BLD PLANTATION []s and Toyo Ink fell 20 sen each to RM9.20 and RM1.47, Panasonic and Petronas Dagangan down 18 sen each to RM21.70 and RM18.66, TDM and KLK lost 14 sen each to RM4.81 and RM24.50, while GAB and Petronas Gas were down 12 sen each to RM12.96 and RM16.66.

Naim Indah Corp was the most actively traded counter with 113.6 million shares done. The stock fell four sen to 53 sen.

Other actives included Metronic, DVM, EITA, Managed Pay, SuperComNet, Tiger Synergy and Focus.

Gainers included Aeon, SMPC, Milux, Kluang, Hong Leong Industries, Nationwide, Tanjung Offshore, Parkson, UMS and Nestle.



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KLCI closes higher, lifted by CIMB and select blue chips

KUALA LUMPUR (March 29): The FBM KLCI closed higher on Thursday, lifted by select blue chips including CIMB, Genting, Hong Leong Bank and BAT but the broader market was cautious.

The 30-stock index added 1.69 points to 1585.44. Gainers trailed losers by 260 to 462, while 353 counters traded unchanged. Volume was 1.50 billion shares valued at RM1.39 billion.

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.

The Shanghai Composite Index fell 1.43% to 2,252.16, Hong Kong’s Hang Seng Index lost 1.32% to 20,609.39, Taiwan’s Taiex fell 2.06% to 7,872.66, South korea’s Kospi fell 0.85% to 2,014.41 while Singapore’s Straits Times index fell 0.28% to 3,007.44.

However, European stocks pared early losses and rose on Thursday, bouncing off a three-week low as rallying mining shares offset losses in the energy sector, where Total extended its slide, hit by worries over a gas leak in the North Sea, said Reuters.

On Bursa Malaysia, Warisan TC gained 20 sen to RM2.70, Aeon up 19 sen to RM9.40, BAT 18 sen to RM56.52, Hong Leong Bank 16 sen to RM12.38, Jaya Tiasa and Litrak added 15 sen each to RM8.38 and RM4.10. Toyo Ink rose 12 sen to RM1.58, WCT and Crescendo 11 sen each to RM2.50 and RM1.92, and Shell 10 sen to RM10.20.

Other gainers included CIMB that rose 10 sen to RM7.60, Genting four sen to RM11.14, Genting Malaysia two sen to RM3.89.

Decliners included Dutch lady, BLD PLANTATION []s, RHB Capital, GAB, Batu Kawan, SMPC, Bursa, United Plantations and Kossan.

The actives included Ariantec, Naim Indah Corp, Metronic, SuperComnet, Focus, Ingeuity Solutions, Key West and ManagePay.



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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 closes lower as Asian markets dip

KUALA LUMPUR (March 28): The FBM KLCI closed lower on Wednesday as Asian markets slipped into the red, led by the Shanghai Composite Index that fell more than 2.5%.

The FBM KLCI fell 4.35 points to close at 1,583.75. Market breadth was negative with losers beating gainers by 491 to 244, while 350 counters traded unchanged. Volume was 1.56 billion shares valued at RM1.31 billion.

Asian markets were mostly in the red, as Hong Kong and China shares ended lower on Wednesday, as weak corporate earnings reports increased worries over the domestic economy, according to Reuters.

At the regional markets, the Shanghai Composite Index lost 2.65% to 2,284.88, Hong Kong’s Hang Seng index fell 0.77% to 20,885.42, Japan’s Nikkei 225 was down 0.71% to 10,182.57, South Korea’s Kopsi fell 0.39% to 2,031.74 and Singapore’s Straits Times Index shed 0.10% to 3,015.98.

On Bursa Malaysia, Southern Acids was the top loser and fell 20 sen to RM2.30, Hartalega fell 15 sen to RM7.95, Petronas Gas 14 sen to RM16.76 and MPI, 13 sen to RM3.12.

Fima Corp, Y&G, Toyo Ink and Coastal Contracts lost 12 sen each to RM6.11, 58 sen, RM1.46 and RM1.98 respectively.

Shares of Supercomnet 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 15 sen to 21 sen with 110.9 million shares traded.

Other actives included Metronic, Utopia, Ariatec, IFCA MSC, Silver Bird, Ingenuity Solutions and Naim Indah Corp.

Gainers included Dutch Lady, BAT, Bintulu Port, Takaful, BLD PLANTATION []s, MAHB, Sungai Bagan, Manulife and SMPC.



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KLCI stays above 1,570-level at mid-day

KUALA LUMPUR (March 14): The FBM KLCI remained in positive territory at the mid-day break on Wednesday and stayed above the 1,570 level in line with the positive sentiment at key regional markets.

Asian markets extended their gains from the morning on the back of a firmer overnight close at Wall Street and were given an added impetus after most of the largest U.S. banks passed their annual stress test, according to the Federal Reserve, in a conservative report card that underscored the recovery of the financial sector but called out a few laggards, including Citigroup.

The Fed announced the results in an earlier-than-expected release on Tuesday. JPMorgan Chase pulled the trigger on announcing its own glowing marks before the Fed's release, and helped lift the stock market, according to Reuters.

At 12.30pm, the KLCI was up 9.20 points to 1,573.22. Gainers led losers by 427 to 221, while 318 counters traded unchanged. Volume was 630.98 million shares valued at RM701.74 million.

The ringgit weakened 0.20% to 3.0044 versus the US dollar; crude palm oil futures for the third month delivery rose RM45 per tonne to RM3,337, crude oil added 32 cents per barrel to US$107.90 while gold rose US$5.18 an ounce to US$1,704.95.

At the regional markets, Japan's Nikkei 225 rose 1.74% to 10,071.70, Hong Kong’s Hong Seng Index rose 1.28% to 21,613.40, the shanghai Composite Index added 0.74% to 2,474.07, South Korea’s Kospi gained 1.34% to 2,052.22 and Singapore’s Straits Times Index was up 1.14% to 3,023.10.

At Bursa Malaysia, BAT added RM1.18 to RM53.98, Aeon 39 sen to RM9.50, GAB 20 sen to RM13.44, Toyo Ink 19 wen to RM1.63, United PLANTATION []s and Shell 18 sen each to RM25 and RM10.18, Jaya Tiasa 14 sen to RM7.60, UMW 12 sen to RM7.24, Panasonic and Johore Tin 12 sen each to RM22.20 and RM1.33.

Naim Indah Corp was the most actively traded counter with 99.9 million shares done. The stock fell 1.5 sen to 67 sen.

Other actives included astral Supreme, Euro Holdings, YTL, Sing Heng Chan, Tiger Synergy, Hwatai and Camres.

Meanwhile, decliners in the morning session included Tahps, Sunchirin, Warisan, Scientex, BOnia, MIlux, APB and Batu Kawan.



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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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KLCI pares down losses at mid-day, broader market stays weak

KUALA LUMPUR (Feb 3): The FBM KLCI pared down some its losses at the mid-day break on Friday, in line with the limited losses at key regional markets.

The FBM KLCI was down 0.24 of a point to 1,536.85 at the mid-day break.

The broader market was weaker with losers leading gainers by 449 to 298, while 335 counters traded unchanged. Volume was 1.32 billion shares valued at RM1.03 billion.

The ringgit weakened 0.13% to 3.0224 versus the US dollar; crude palm oil futures for the third month delivery was flat at RM3,050 per tonne, crude oil added 14 cents a barrel to US$96.50 while gold fell US$3.20 an ounce to US$1,756.27.

Hong Kong and China shares were weaker at midday in thin Friday trade, but losses on the benchmark indexes were limited by chart support levels with investors cautious ahead of fresh U.S. employment data later in the day, according to Reuters.

At the regional markets, Japan’s Nikkei 225 was down 0.14% to 8,864.48, Hong Kong’s Hang Seng Index shed 0.10% to 20,719.20, the Shanghai Composite Index was down 0.07% to 2,310.87, South Korea’s Kospi fell 0.87% to 1,966.95, while Singapore’s Straits Times Index rose 0.80% to 2,924.35 and Taiwan’s Taiex added 0.16% to 7,664.83.

On Bursa Malaysia, KLK fell 56 sen to RM25.04, Dutch Lady was down 36 sen to RM25.24, DKSH 20 sen to RM1.91, SapuraCrest and Genting shed 18 sen each to RM5 and RM10.98, F&N 16 sen to RM17.66, PPB 12 sen to RM17.08, Kamdar 10.5 sen to 37.5 sen, Toyo Ink nine sen to RM1.60 an d APM eight sen to RM4.50.

Gainers this morning included United PLANTATION []s, Tradewinds, MalPac, GAB, TDM, Sime Darby, BLD Plantations, Delloyd, BAT and Petronas Gas, while the actives included Nicorp, Mah Sing, JCY, DBE Gurney, Compugates, DRB-Hicom and Maxbiz.



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KLCI starts 2012 in negative territory as rally fizzles out

KUALA LUMPUR (Jan 3): The FBM KLCI fell into negative territory on the first trading day of 2012 as the rally fizzled out and profit taking activities chipped off its gains made during the final week of 2011.

The 30-stock index fell 1.12% or 17.19 points to 1,513.54, weighed by losses at banking and key blue chips.

The broader market sentiment however was mixed with gainers leading losers by 446 to 325, while 278 counters traded unchanged. Volume was 1.6 billion shares valued at RM1.41 billion.

Meanwhile, better-than-expected data from China's giant manufacturing sector boosted global stocks and the euro on Tuesday and pushed safe-haven bets like German bonds lower, according to Reuters.

Europe's debt crisis still clouds the outlook ahead of a daunting first quarter of borrowing which is expected to push the euro lower and undermine demand for the region's lower-rated sovereigns, it said.

Signs of improved growth in the United States may also cool any speculation about another round of money-printing by the Federal Reserve, improving the outlook for the dollar, it said.

At the regional markets, Hong Kong’s Hang Seng Index jumped 2.4% to 18,877.41, South Korea’s Kospi rose 2.69% to 1,875.41, Taiwan’s Taiex gained 1.46% to 7,053.38 and Singapore’s Straits Times Index added 1.59% to 2,688.36.

The China and Japan markets were closed today for holidays.

Banking stocks were among the major losers, with Maybank falling 24 sen to RM8.34, Public Bank down 22 sen to RM13.16, CIMB 20 sen to RM7.24, RHB Capital 17 sen to RM7.31, AMMB 15 sen to RM5.80 and Hong Leong Bank 14 sen to RM10.76.

Other losers included BAT that fell 48 sen to RM49.44, Petronas Dagangan 36 sen to RM17.44, Petronas Gas 30 sen to RM14.90, Nestle 20 sen to RM56, while JT International and PPB fell 18 sen each to RM7.21 and RM16.98.

Gainers included KLK that added 30 sen to RM23, Y&G 25 sen to RM1, Genting 24 sen to RM11.24, Hibiscus 22.5 sen to RM1.17, Glenealy, Toyo Ink, IGB and SOP up 20 sen each to RM6.22, RM1.80, RM2.66 and RM5.79, while KPower added 19.5 sen to 47 sen.

Meanwhile, the actives included Hibiscus, Maxbiz, XDL, JCY, Sanichi and DBE Gurney.



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New generation of IPPs to draw familiar names

KUALA LUMPUR: The Energy Commission’s notice for the pre-qualification of prospective bidders for the development of a combined cycle gas turbine (CCGT) power plant in Peninsular Malaysia, representing the start of the fourth generation independent power producers (IPPs), is expected to attract bids from familiar names along with some new players.

In a statement on its website, the commission is inviting applicants with previous experience in implementing power projects to submit their expressions of interest by Jan 12. The commission will then conduct a pre-qualification process, in accordance with the criteria in the request for proposal document, which will be sent out
later.

In line with government policy, foreign participation in a consortium is capped at 49%.

Analysts are expecting all the country’s current crop of IPPs to bid for these upcoming projects along with some of the smaller players.

“The first generation IPPs would undoubtedly participate in these projects. They currently have the option to re-use their existing equipment for these new plants, as long as it has been refurbished or after they have invested some additional capital expenditure,” said OSK Research head Chris Eng.

Hence, it is likely that the list of bidders for the new CCGT plant will include the usual suspects — YTL Power International Bhd, Malakoff Bhd and Tanjong plc. The only exceptions might be Genting Bhd and Sime Darby Bhd according to analysts. It has been reported previously that Genting was mulling over the disposal of its power operations.

Alongside the big boys, Eng said it is likely that smaller players might take their chances in bidding for the project. This might include the likes of Jaks Resources Bhd, which is in the business of pipes and has clinched a RM5.96 billion power plant project in Vietnam. Other possible names include Toyo Ink Group Bhd, which also has a power plant project in Vietnam, and Leader Universal Holdings Bhd, which was involved in a plant in Cambodia.

“However, you might not see Mudajaya [Group Bhd] take part as the company is still sorting out issues with its IPP in India,” said Eng.

Association of Water and Energy Research Malaysia president S Piarapakaran was quoted as saying that opening up the bidding to foreign parties would help increase the number of players which could invest in more efficient technology. Piarapakaran also urged the Energy Commission to blacklist first generation IPPS that did not renegotiate their power purchase agreements from this bid.

The Edge weekly has earlier reported that the government will call for tenders for eight gas-fired power plants, where the players would possibly pay market rates for the fuel.

According to the Energy Commission’s 2010 annual report, listed under electricity supply plan for West Malaysia are five CCGTs due to come onstream between 2017 and 2019. Each of the plants has a generation capacity of 750MW.

The only other new plant mentioned in the commission’s annual report is a 1,000MW capacity coal-fired plant that is scheduled to be commissioned by 2020, as well as Tenaga Nasional Bhd’s two hydropower plants in Hulu Terengganu and Ulu Jelai, due to come online in 2015 and 2016 respectively. TNB’s additional 1,000MW from its Janamanjung coal-fired plant is targeted to start contributing from 2015 onwards, while Malakoff’s Tanjung Bin 1,000MW extension will come onstream by
2016.

It has been previously stressed by a number of players that the country could face a power crunch if the planning doesn’t start now. The Energy Commission estimates that based on November 2010’s electricity demand, the country will require an additional 7,372MW between 2015 and 2020, with another 15,724MW needed from 2021 to 2030.



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Toyo Ink’s power venture fails to fuel share price rally

KUALA LUMPUR: Toyo Ink Group Bhd’s story on turning the ink maker into a power producer does not seem to sell well to the investing public.

The company, which announced the receipt of the letter of approval to build a US$2.5 billion (RM7.95 billion) power plant in Vietnam, succumbed to heavy selling pressure that pulled its share price to an intra-day low of RM1.53 yesterday, down 22.8% from its recent peak of RM1.88 recorded last Tuesday.

The stock managed to regain some lost ground in the last trading hour to end yesterday at RM1.70, with 35,900 shares transacted. Nonetheless, Toyo Ink’s share price has gained 37% from its year’s low of RM1.24.

To recap, Toyo Ink was granted a letter of award from the Vietnamese government for a power plant project in Hau Giang province in southern Vietnam.

According to the announcement to Bursa Malaysia, the approval letter from the Vietnamese government stated that it agreed to let Toyo Group (Malaysia) to conduct research and development of the Song Hau 2 thermo power plant project.

The power plant is expected to have a capacity of 2x1,000 MW.

The company’s venture has raised eyebrows as Toyo Ink is not in the power generation business, and the project will only see maiden earnings contribution in five years, at the earliest.

Its managing director Steven KC Song had indicated that it would take three to four years to build the plant and operations should begin in 2017 or 2018. If everything goes according to plan, Song expects return on investment in seven to nine years.

There are doubts on the venture as Toyo Ink has yet to be granted any power purchase agreement and to secure any financing facilities.

Toyo Ink’s balance sheet as at Sept 30 showed that the company’s borrowings were at about RM31.6 million, a large bulk being short-term debts. Its cash balance stood at RM1.78 million.

According to Song, the company will seek partners to raise capital and to bring in the expertise to build and operate the power station.

Song is optimistic about the prospects of undertaking the power plant project and said, “The Vietnamese are struggling with power supply issues.”
The company’s ink business has not fared well in the past two years.

For the six months ended Sept 30, Toyo Ink’s net profit fell more than half to RM402,000 from RM1.72 million in the previous corresponding period. Revenue shrank to RM48.3 million from RM57.4 million previously.

Toyo Ink’s net profit was down sharply to RM2.7 million or 6.35 sen per share from RM4.01 million or 9.38 sen per share for FY11 ended March 31, despite higher revenue at RM109.9 million compared with RM93.6 million the year before.

Even if the power project is a viable venture, shareholders will only see the benefits in 2017. Investors are probably more concerned over the company’s earnings prospect in the immediate future.



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Toyo Ink shares fall to lowest since Dec 1

KUALA LUMPUR (Dec 13): Share of TOYO INK GROUP BHD [] fell to the lowest since Dec 1 as investors, who had chased up the stock over the US$2.5b Vietnam power plant, turned cautious about the financing and return on investment.

At 11.37am, it was down 12 sen to RM1.53 with 5,000 shares done, the lowest since Dec 1. It had surged to a high of RM1.88 on Dec 6.

To recap, last Friday, Toyo Ink said it planned to finance the coal-fired thermo power plant power plant in Vietnam from a corporate exercise and also through borrowings.

Since the project involved a massive capital outlay, the company said it would consider raising certain portion of the project capital via corporate exercise and then funding the balance through borrowings.

Toyo Ink said it would also seek equity partnerships to incorporate a joint venture company in Vietnam.



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Toyo Ink extends losses, more details of US$2.5b power plant needed

KUALA LUMPUR (Dec 12): Shares of TOYO INK GROUP BHD [] fell to RM1.60 on Monday, extending its losses from last Friday as investors turned cautious about the return on investment from the US$2.5b coal-fired thermo power plant power plant in Vietnam.

At 3.04pm, it was down seven sen to RM1.60, off the day’s high of RM1.80. There were 28,000 shares done.

However, the 30-stock FBM KLCI was up 10.69 points to 1,470.82. There were 1.05 billion shares done valued at RM601.71 million. There were 350 gainers, 288 losers and 298 stocks unchanged.

Last Friday, Toyo Ink said it planned to finance the US$2.5b coal-fired thermo power plant power plant in Vietnam from a corporate exercise and also through borrowings.

Since the project involved a massive capital outlay, the company said it would consider raising certain portion of the project capital via corporate exercise and then funding the balance through borrowings.

Toyo Ink said it would also seek equity partnerships to incorporate a joint venture company in Vietnam.



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KLCI snaps losing streak as Asian markets rise

KUALA LUMPUR (Dec 12): The FBM KLCI snapped its losing streak and rose in early trade on Monday, in line with the gains at key regional markets after European policymakers took a step closer to fiscal union over the weekend.

At 9.05am, the FBM KLCI rose 5.69 points to 1,465.82.

Gainers led losers by 144 to 22, while 88 counters traded unchanged. Volume was 57.56 million shares valued at RM31.05 million.

Among the early gainers were Proton, Lafarge Malayan Cement, Toyo Ink, Nestle, AirAsia, CIMB, Genting, MAHB, Petronas Chemicals and Bumi Armada.



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Toyo Ink to fund US$2.5b Vietnam power plant from project capital, borrowings

KUALA LUMPUR (Dec 9): TOYO INK GROUP BHD [] plans to finance the US$2.5 billion coal-fired power plant power plant in Vietnam from a corporate exercise and also through borrowings.

Since the project involved a massive capital outlay, the company said on Friday it would consider raising part of the project capital from a corporate exercise and funding the balance via borrowings.

Toyo Ink said it would also seek equity partnerships to incorporate a joint venture company in Vietnam, adding this might involve changes in the company’s existing corporate structure, capital management and financial risk management.

The company was responding to a query from Bursa Malaysia Securities on the proposed investment project.

Toyo Ink also said the power purchase agreement, implementation agreement and the developing and expanding cooperation framework had yet to be finalised.

It share price closed 10 sen lower at RM1.67 as investors were concerned its recent price surge was overdone as returns on investment in the power plant would be longer.

The Edge FinancialDaily reported on Friday Toyo’s share price has benefited from the letter of approval it received from the Vietnamese government for the power plant, but realising the earnings may be a long way off.



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Toyo has ink on paper, but not yet the power

KUALA LUMPUR: Toyo Ink Group Bhd’s share price has benefited from the letter of approval it received from the Vietnamese government for a US$2.5 billion (RM7.8 billion) power plant, but realising the earnings may be a long way off.

It has taken over three years of hard work to obtain the letter, but Steven KC Song, managing director of Toyo, revealed at a press conference yesterday that the plant will take three to four years to build and estimated that it would only begin operating in 2017 or 2018.

It should be at least six to seven years before the US$2.5 billion project even begins turning in cash, yet Toyo’s share price surged as high as RM1.88 on Tuesday, with a 50 sen or 36.23% gain for the month.

Furthermore, Song told the press that Toyo has yet to secure funding as it has not yet nominated a merchant bank to provide financial advice.

He declined to comment which merchant banks the group is in talks with but noted that the merchant banks the company is courting would have an international presence.

Toyo announced on Wednesday that it received a letter from the Vietnamese government with regard to the building of a two times 1000MW coal-fired power plant in Hau Giang province.

According to its announcement to Bursa Malaysia, the award is for “the Toyo group to have research and development of Song Hau 2 Thermo Power Plant Project, capacity of two times 1000MW at Song Hau Power Centre, Hau Giang Province”.


The announcement added that “the Ministry of Industry and Trade (of Vietnam) will preside, cooperate with the People’s Committee of Hau Giang Province in providing guidance to Toyo Ink in the setting up of the investment project and implementation of next steps of the project, organisation of assessment and submission for approval as required by laws”.

A market observer noted that the wording of the letter is rather vague, as it does not outwardly say that the project has been awarded to Toyo, but rather “the research and development”.

Furthermore, Toyo has yet to sign a power-purchase agreement (PPA) with the Vietnamese government although Song said, “Hopefully, it won’t take too long. Once we have negotiated the PPA and agreed upon a rate with the Vietnamese government, we will know our revenue.”

The terms of a PPA are crucial to determine the viability of a project, its returns and the ability to obtain financing.

Likewise, Song could not provide a gearing ratio for the project, citing a lack of financial advice but indicated gearing would depend on the amount of cash its partners would bring to the multi-billion dollar project.

In comparison, Toyo’s market cap yesterday for its 42.8 million shares was only RM75.76 million.

A quick look at Toyo’s balance sheet reveals that the group’s cash and bank balances stood at RM1.78 million as at Sept 30 with a total of RM106.78 million in current assets against RM89.45 million in current liabilities.

With so little cash on its balance sheet, Toyo will have to raise a substantial amount of equity to leverage against if it hopes to raise US$2.5 billion, even if it brings in several cash rich partners. Song also revealed that Toyo is still looking to bring in a partner with the technical expertise to help the group set up the power station as it has no prior experience with setting up power plants, a highly technical industry.

“Toyo Ink will continue with its core operations. We will set up a new company to undertake the power plant project,” said Song. “Any partners we wish to work with have to be approved by the Vietnamese government.

“The Vietnamese are struggling with power supply issues. They know we won’t undertake the project unless it is beneficial to us as well, so we expect a reasonable rate.”

“How long it takes for us to recoup our investment will depend on the price per megawatt the government gives us in the PPA,” said Song who estimated that return on investment will take seven to nine years.

“Once the plant is up and running we can issue an initial public offering to pay off some of the debt used to finance the plant,” said Song but declined to comment on when this would happen. The biggest risk to the project is inflation, but Song believes that the Vietnamese government is dealing with it.

Toyo’s share price fell 11 sen yesterday to RM1.77 after the suspension of its shares throughout Wednesday was lifted.


This article appeared in The Edge Financial Daily, December 9, 2011.



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Toyo Ink shares fall on concerns of longer ROI from Vietnam IPP

KUALA LUMPUR (Dec 9): Shares of TOYO INK GROUP BHD [] fell on Friday on concerns that its recent rally was overdone as its returns on investment in Vietnam’s US$2.5 billion (RM7.8 billion) power plant would be longer.

At 3.37pm, it was down 12 sen to RM1.65. There were 41,000 shares done at prices ranging from RM1.59 to RM1.71.

The FBM KLCI fell 15.17 points to 1,457.75. Turnover was 952 million shares valued at RM690.61 million. There were 155 gainers, 520 losers and 255 stocks unchanged.

The Egde FinancialDaily reported on Friday Toyo’s share price has benefited from the letter of approval it received from the Vietnamese government for the power plant, but realising the earnings may be a long way off.

It has taken over three years of hard work to obtain the letter, but Steven KC Song, managing director of Toyo, said on Thursday that the plant will take three to four years to build and estimated that it would only begin operating in 2017 or 2018.

It should be at least six to seven years before the US$2.5 billion project even begins turning in cash, yet Toyo’s share price surged as high as RM1.88 on Tuesday, with a 50 sen or 36.23% gain for the month.

Song had also said Toyo has yet to secure funding as it has not yet nominated a merchant bank to provide financial advice.



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