Supermax 3Q earnings slump 18.9% to RM30.91m

KUALA LUMPUR: SUPERMAX CORPORATION BHD []’s net profit fell 18.9% to RM30.91 million in the third quarter ended Sept 30, 2011 from RM38.11 million a year ago, affected by the higher natural rubber and nitrile latex prices.

It said on Monday, Oct 24 although profitability is lower than last year, “we are seeing positive signs for a rebound after recording a second consecutive quarter of core profit growth”. It said natural rubber latex prices fell from a high of RM10.87 per kg wet in April 2011 to RM7.91 as at Oct 21.

Supermax’s revenue was however higher at RM271.42 million, up 15.4% from RM235.10 million from a year ago. Earnings per share were 9.09 sen compared with 11.24 sen. It declared a dividend of 3.0 sen per share.

It added the higher revenue was because it benefited from a full quarter contribution from new lines commissioned in the final two weeks of the corresponding quarter last year.

For the nine-month period, earnings fell 42.5% to RM77.86 million from RM135.44 million. Revenue rose 8.7% to RM750.71 million from RM690.58 million.

However, it expected earnings to range between RM100 million and RM120 million for the financial year ending Dec 31, 2011.

IOI expects stronger earnings for FY end June 2012

KUALA LUMPUR: IOI CORPORATION BHD [] expects its financial performance for the current financial year ending June 30, 2012 (FY2012) to be better than FY2011.

Its group executive director Datuk Lee Yeow Chor said on Monday, Oct 24 the optimism was based on the improved profitability in its resources based manufacturing division, underpinned by lower crude palm oil prices.

At midday, CPO for third month delivery was up RM10 to RM2,892 per tonne.

Optimism returns to markets, KLCI up nearly 20 pts

KUALA LUMPUR: Key regional markets notched up gains of between 0.35% and 3.92% at the midday break on Monday, Oct 24 as optimism returned to the market on hopes of a solid resolution to the euro zone debt crisis on Wednesday.

At 12.30pm, the FBM KLCI rose 1.32% or 19.32 points to 1,458.15. Turnover was 754.23 million shares valued at RM648.31 million. Advancing counters beat decliners 506 to 143 while 226 stocks were unchanged.

US light crude oil rose 77 sen to US$88.17 while Brent crude rose above US$110, crude palm oil futures rose RM10 to RM2,893 and the ringgit was firmer at 3.1300 to the US dollar.

Reuters reported investors are riding high on hopes that Wednesday's meeting of euro zone leaders to discuss their final decisions on the debt issue would yield even more positive results. However, sharp differences remain over the size of losses private holders of Greek government bonds will have to accept.

Hong Kong’s Hang Seng Index rose 3.92% to 18,731.74, South Korea’s Kospi 2.82% to 1,890.15, Taiwan’s Taiex 2.67% to 7,448.05 and Singapore’s STI 1.99% to 2,766.37 while Japan’s Nikkei 225 gained 1.7% to 8,226.13. Shanghai's Composite Index inched up 0.35% to 2,325.30.

At Bursa Malaysia, local funds were seen nibbling on selected blue chips, including Petronas related stocks and Genting.

Genting rose 27 sen to RM10.02, pushing the index up by 2.31 points while Sime Darby added 16 sen to RM8.71, nudging the index by 2.22 points while IOI Corp’s gains of 12 sen to RM5.12 (1.78 points to the index).

MISC rose 31 sen to RM6.95, PetGas and PetDag 18 sen each to RM13.28 and RM16.38.

Among consumer stocks BAT was the top gainer, rising 42 sen to RM44.86, Dutch Lady 30 sen to RM19.30 and Nestle 18 sen to RM49.48. Other major gainers were HLFG, which added 32 sen to RM11.60 and DiGi 22 sen to RM31.80.

The most active was MBF Holdings-WA, up 3.5 sen to 14 sen with 69.92 million units done. Time dotCom rose four sen to 61 sen and the call warrants TimeCom-CA 0.5 sen to two sen.

PNB buys nearly 3.5m S P Setia shares

KUALA LUMPUR: Permodalan Nasional Bhd (PNB) raised its stake in S P Setia Bhd with the purchase of another 3.469 million shares and 1.206 million warrants in the open market last Friday, Oct 21.

Maybank Investment Bank said on Monday, Oct 24 that PNB ought the 3.469 million shares at an average price of RM3.82 sen. It bought the 1.206 million warrants at an average of 87.5 sen.

On Sept 28, PNB serve the notice of take-over offer on S P Setia to acquire the shares at RM3.90 each and 91 sen per warrant.

Mid-day markets continue upward trend

KUALA LUMPUR: Markets continued its uptrend at mid-day, with all regional bourses trading in the positive.

On the global scene, markets held their breaths as the world waits at the edge of its seat for the apex of the European Union (EU) two-leg summit this Wednesday.

Key indices in the United States climbed between 1.5% and 2.3% on Friday, rallying in expectations of a comprehensive plan to counter the EU sovereign debt crisis.

In its market preview for today, HwangDBS Vickers Research said that “we reckon that the benchmark FBM KLCI will probably trade sideways with a slight positive bias. However, we think the benchmark index is unlikely to break through the immediate resistance level of 1,445”.

It added that counters Damansara Realty Bhd and Dayang Enterprise Holdings Bhd may expect movements today following reports that Johor Corp is looking to inject some of its property assets into its subsidiary Damansara Realty while Murphy Sarawak has awarded Dayang a contract extension estimated at RM50mil to RM100mil.

The FBM KLCI at mid-day trade was at 1459.61 points, up 1.44% with 754.23mil shares traded valued at RM648.31mil. 508 counters gained and 143 lost while 226 remained unchanged.

Top gainers were British American Tobacco (M) which gained 42 sen to RM44.86; Hong Leong Financial Group Bhd, which rose 32 sen to RM11.60 and MISC Bhd which climbed 31 sen to RM6.95.

Top losing counters were Stone Master Corporation Bhd which slid 19.5 sen to RM0.30; Warisan TC Holdings Bhd which shed 10 sen to RM2.21 and UMW Holdings Bhd which dipped 10 sen to RM6.70.

On the regional level, Singapore's Straits Times Index was up 1.98% at 2765.99; Hong Kong's Hang Seng Index rose 3.92% to 18731.74; Seoul's Kospi Index gained 2.81% to 1890.04; Shanghai's A share index dipped 0.35% to 2325.30 and Tokyo's Nikkei 225 was 1.83% better at 8837.51.

Nymex crude oil was quoted at USD88.17 per barrel. Spot gold was USD1644.90 per ounce while silver was USD31.49 per ounce.

The ringgit was quoted at 3.1366 to the USD and 4.3486 to the euro.

Genting Malaysia price estimate raised

Genting Malaysia Bhd rose in Kuala Lumpur trading after its share-price estimate was increased at UOB Kay-Hian Holdings Ltd, which cited its overseas earnings growth prospects.

The stock climbed 1.1 percent to RM3.71 at 9:31 a.m. local time, set for its highest close since Oct. 13.

The share estimate was raised to RM3.95 from RM3.79, UOB-Kay Hian wrote in a report today. -- Bloomberg

Damansara Realty gains most in 28 months

Damansara Realty Bhd, a Malaysian builder and property developer, rose to its highest level in more than 28 months after The Edge reported that its parent Johor Corp may transfer property projects to the company.

The stock gained 6.7 percent to 88 sen at 9:16 a.m. local time in Kuala Lumpur trading, set for the highest close since June 16, 2009. -- Bloomberg

Blue chips power ahead 22 pts

KUALA LUMPUR: Blue chips, led by Sime, Petronas stocks and Genting powered ahead in the first hour of trade on Monday, Oct 24 as investors were optimistic about the plan to contain the euro zone's sovereign debt crisis.

At 10am, the FBM KLCI was up 22.40 points or 1.56% to 1,461.23. Turnover was 330.95 million shares valued at RM223.96 million. The broader market displayed the positive outlook, with 395 gainers, 68 losers and 158 stocks unchanged.

The ringgit was firmer against the US dollar, up 0.0120 to RM3.1365. US crude oil was up 25 sen to US$87.65.

Key regional markets rallied, with the MSCI Asia Pacific Index up 1.7%. Hong Kong’s Hang Seng Index opened up 3.1% to 18,584.46 and Singapore’s Straits Times Index added 1.59% to 2,755.51 while Shanghai’s Composite Index gained 0.66% to 2,332.51. Japan’s Nikkei 225 rose 1.36% to 8,797.02.

Petronas Gas rose 30 sen to RM13.40 and PetDag 20 sen to RM16.40 while MISC added 20 sen to RM6.40.

BAT was the top gainer, adding 46 sen to RM44.90 while HLFG gained 38 sen to RM11.60 and Sime 29 sen to RM8.4 and DiGi 28 sen to RM31.86. Genting climbed 21 sen to RM9.96 and Genting PLANTATION []s to RM7.48.

CIMB Equities Research, in its technical analysis of the KLCI, said the 30-stock index went into a consolidation phase last week. Index hit a high of 1,465 but succumbed to profit taking by the end of the week.

“This week, we expect the market to remain sideways, possibly between the 1,430-1,465 levels. A break either way will influence its next immediate term trend. If the 50-day SMA (1,437) fails to hold, then the bears would have an upper hand.

“Otherwise, there is still a possibility that the index may charge towards 1,465 again. If this level is taken out, then the 61.8% retracement of the July-September downtrend at 1,487 will be its next target to beat,” it said.