Damansara slides on no asset injection plan

Damansara Realty Bhd, a Malaysian property developer, fell to a one-week low after saying its board hasn’t considered a proposal for the “potential injection” of assets into the company by its parent.

The stock slid 1.8 percent to 80.5 sen at 9:10 a.m. local time in Kuala Lumpur, set for its lowest close since Oct. 20. -- Bloomberg

Dutaland falls most in 28 months

Dutaland Bhd, a Malaysian plantation and property group, dropped the most in 28 months in Kuala Lumpur trading after IOI Corp scrapped an agreement to buy the company’s oil palm land for RM830 million.

The stock slid 11 percent to 54 sen at 9:01 a.m. local time, set for its steepest decline since June 18, 2009. -- Bloomberg

YTL Corp rises on share buyback

YTL Corp, a utilities, cement and property group, advanced 1.3 percent to RM1.51 in Kuala Lumpur trading at 9.46am.

YTL spent RM29.4 million buying back 19.7 million shares, it said in a statement. -- Bloomberg

Worst is over for Supermax: OSK

Supermax Corp, a Malaysian glove - maker, rose to its highest level in almost three months after OSK Holdings Bhd said the worst is over for the company as demand for its products is poised to rebound.

The stock climbed 7.1 percent to RM3.49 at 9:21 a.m. local time, set for its highest close since Aug. 5.

Other glove - makers gained.

Top Glove Corp. added 1 percent to RM4.16, Kossan Rubber Industries Bhd gained 1.8 percent to RM2.83. -- Bloomberg

Trading of Hirotako suspended for corporate exercise

KUALA LUMPUR: Trading in the securities of HIROTAKO HOLDINGS BHD [] was suspended on Thursday, Oct 27 from 9am to 5pm

The company said the request for the suspension was pending an announcement of a “potential material corporate exercise involving the securities of Hirotako”.

Supermax advances, CIMB keeps Buy, TP RM4.38

KUALA LUMPUR: Shares of Supermax Corp Bhd advanced on Thursday, Oct 27 on the positive outlook for the glove maker while CIMB Equities Research maintained a Buy on the stock at a target price of RM4.38.

At 9.50am, it was up 16 sen to RM3.42 with 1.49 million shares done.

The FBM KLCI rose 5.24 points to 1,463.04. Turnover was 309.44 million shares valued at RM248.12 million. There were 226 gainers, 105 losers and 197 stocks unchanged.

CIMB Research said investors should accumulate Supermax shares. At just 8.7 times FY12 P/E, the stock was trading at half the valuation of Top Glove, making it a cheaper play on the sector where earnings have bottomed on the back of more stable rubber prices.

“A strengthening distribution platform will ensure that the world’s second largest glove maker emerges unscathed from the next one to three years of overcapacity.

“Also, we gather that a bonus issue may be in the works. Supermax’s results briefing left us feeling more positive about its prospects as it is beefing up its distribution platform,” it said.

RHB Research ups UEM Land fair value to RM1.65

KUALA LUMPUR: RHB Research Institute has raised the fair value for UEM Land to RM1.65 from RM1.40 but maintains its underperform rating.

It said on Thursday, Oct 27 that due to the growing presence of more “Singapore Inc.” in Johor in the midst of uncertain global economic environment, its optimism on the Iskandar development is revived slightly.

“We therefore narrow our discount to RNAV to 35% (from 45%) to derive our revised fair value of RM1.65 (from RM1.40),” it said.

On Tuesday, UEM Land announced that its 50:50 JV company with UM Land – Nusajaya Consolidated Sdn Bhd had inked two agreements with The Ascott Limited (under Capitaland).

The agreements were for Ascott to provide technical advisory services as well as manage and operate 204 units of service residences to be known as “Somerset Puteri Harbour” in Nusajaya upon its expected completion.

“We believe the strategic tie-up is via UM Land as Capitaland has a 21% stake in the company. This new Somerset will be Ascott first presence in Johor,” it said.

Hibiscus up, active on US$55m O&G acquisition

KUALA LUMPUR: Shares of Hibiscus Petroleum Bhd climbed in active trade as investors were positive of its acquisition of a stake in Lime Petroleum Ltd for a total of US$55 million.

At 9.13am, Hibiscus was up one sen to 68.5 sen with 7.08 million shares done. The warrants added 1.5 sen to 30.5 sen with 10.939 million units transacted.

The FBM KLCI rose 5.01 points to 1,462.81. Turnover was 118.18 million shares valued at RM98.65 million. There were 154 gainers, 61 losers and 115 stocks unchanged.

Hibiscus Petroleum had on Tuesday proposed to pay US$55 million for a 35% stake in Lime with interest in three companies that have concession rights in offshore oil & gas exploration assets in the Middle East.

The Lime Group is principally involved in the exploration and production activities in the oil and gas industry in the Middle East region.

Hibiscus said Lime Group’s assets are located in the Middle East, where extensive oil & gas infrastructure has been developed. It also said Lime Group’s assets are located in an area where several other oil and gas companies with significant financial and technical resources operate.

“These other companies include major integrated oil and natural gas producers and numerous other independent oil and natural gas companies and individual producers and operators. In the event that Lime Group has a successful exploration campaign, the assets could attract interest from these other companies as acquisition targets and/or for partnerships,” it said.