KL shares sharply higher at midday

Share prices ended the morning session higher today in line with the positive movement on regional markets as investors took fresh leads following progress on the eurozone debt plan, dealers said.

At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) advanced 15.01 points to 1,472.81, after opening 3.75 points higher at 1,461.55.

The benchmark index moved between a high of 1,473.20 and fell to a low of 1,459.98.

Dealers said investors took cue from the decision by European leaders for a 50 per cent haircut by private sector investors in Greek bonds and boosted the firepower of the eurozone rescue fund to US$1.4 trillion.

"This gives some hope to players as the Greek Prime Minister also said Greece would able to return to the bond markets sooner than 2021, the year in which it is expected to do so, by the International Monetary Fund," a dealer said.

The Finance Index rose 124.61 points to 13,271.75, the Industrial Index added 21.69 points to 2,706.71 and the Plantation Index advanced 98.15 points to 7,484.71.

The FBM Emas gained 112.109 points to 10,040.30, the FBMT100 increased 110.37 points to 9,861.43 and the FBM Ace Index added 29.75 points to 4,003.44, while the FBM 70 Index increased 161.41 points to 10,820.09.

Advancers led decliners by 489 to 189 while 234 counters were unchanged, 594 untraded and 26 others suspended.

Trading was firmer with a total volume of 984.32 million shares worth RM1.073 billion.

Of the active counters, Dutaland fell 6.5 sen to 54.5 sen, The Media Shoppe was flat at 9.5 sen, UEM Land rose 12 sen to RM2.11 and SAAG Consolidated earned half-a-sen to seven sen.

Among heavyweights, Maybank and CIMB added two sen each to RM8.29 and RM7.28 respectively, Sime Darby was flat at RM8.85 and Petronas Chemicals earned 10 sen to RM6.29. - Bernama

Tenaga sells RM4.85b Islamic bonds

Malaysia’s Tenaga Nasional Bhd sold RM4.85 billion (US$1.5 billion) of Islamic bonds maturing in five to 20 years at yields between 3.80 percent and 4.90 percent, according to the company’s chief executive officer.

The Islamic bonds, or sukuk, which pay returns from assets that comply with the religion’s ban on interest, were sold in 16 portions and were priced at the lower end of the initial yield guidance, Che Khalib Mohamad Noh said in an interview in Kuala Lumpur today.

“The sukuk drew about RM23 billion in orders at the close of the offer on Oct. 25,” said Che Khalib. “We are extremely happy with the yields and the oversubscription rate.”

Proceeds from the sale by Malaysia’s biggest power producer will be used to finance the company’s coal-fired plant in the northern state of Perak, he said. -- Bloomberg

RHBCap rise on eurozone, merger hopes

Malaysia’s RHB Capital Bhd shares rose as much as 4.9 per cent on today as investors, buoyed by positive news from developments in the Eurozone, returned to the market.

RHB shares were particularly attractive among financials because it is presently undergoing negotiations with OSK Holdings Bhd to takeover the latter’s brokerage business.

“We are expecting results of the negotiation next month,” a local analyst told Reuters.

“However, the market has mixed reaction about the deal, which we suspect will be priced at between 1.9-2.2 times book value.”

The analyst could not be named as she was not authorised to speak to the media.

RHB shares were up 4.6 per cent to RM7.70 (US$2.461) per share as at 0321 GMT compared to the broader market’s 0.8 per cent rise. - Bernama

Markets up on EU plan to contain euro zone crisis

KUALA LUMPUR: Asian markets rallied on Thursday, Oct 27 after euro zone leaders struck a deal to contain the euro crisis, with the key indices up between 1% and 1.7%.

At 12.30pm, the FBM KLCI was up 14.86 points or 1.02% to 1,472.66. Turnover was 984.32 million shares valued at RM1.07 billion. There were 489 gainers, 149 losers and 234 stocks unchanged.

Japan’s Nikkei 225 rose 1.7% to 8,896.92, Hong Kong’s Hang Seng Index added 1.74% to 19,399.03, South Korea’s Kospi 1.31% to 1,919.16 and Singapore’s Straits Times Index advanced 1.7% to 2,817.10.

Reuters reported euro zone leaders struck a deal with private banks and insurers to accept a 50% haircut on their Greek government bonds under a plan to lower Greece's debt burden and try to contain the two-year-old euro zone crisis.

Under the deal, the private sector agreed to voluntarily accept a nominal 50% cut in its bond investments to reduce Greece's debt burden by 100 billion euros, cutting its debts to 120% of GDP by 2020, from 160% now.

Crude palm oil third-month futures rose RM39 to RM2,990 per tonne while Brent jumped US$1, or 0.9%, to US$109.91 a barrel and U.S. oil added US$1.56, or 1.7%, to US$91.76 a barrel.

At Bursa Malaysia, IOI Corp rose 18 sen to RM5.28 after it cancelled its RM830 million land purchase deal with Dutaland.

Dutaland fell 6.5 sen to 54.5 sen with 30.34 million shares done while Dutaland-WA lost three sen to 10 sen with 22.74 units done.

Hibiscus-WA rose 1.5 sen to 30.6 sen while the shares added 1.5 sen to 69 sen after its decision to buy a stake in Lime Petroleum Ltd for a total of US$55 million.

MBM Resources rose two sen to RM3.09 on a possibility it might buy a stake in Hirotako.

Among the major gainers in the morning session was Supermax, after analysts upgraded its outlook. It rose 36 sen to RM3.62. BLD PLANTATION []s was the top gainer, up 57 sen to RM6.90.

Among index-linked stocks. BAT added 40 sen to RM45.30, RHB Cap 35 sen to RM7.70, HLFG 30 sen to RM11.78, Genting 27 sen to RM10.26 while MISC rose 19 sen to RM6.99, Tenaga and HL Bank 18 sen each to RM5.96 and RM10.54.

Among the decliners were Ewein, down 22 sen to 86 sen, JFTech 17 sen to 13 sen, Ibraco and Lafarge 13 sen each to RM1.20 and RM6.99.

MBM Resources keen on Hirotako stake?

KUALA LUMPUR: Auto parts manufacturers MBM RESOURCES BHD [] is believed to be keen to acquire a stake in HIROTAKO HOLDINGS BHD [], which makes car safety restraint equipment including seat belts, analysts said.

Trading in Hirotako was suspended from 9am to 5pm on Thursday, Oct 27.

Hirotako’s pre-suspension price was 88 sen.

In its second quarter ended June 30, 2011, it posted net profit of RM12.67 million on the back of RM75.17 million in revenue. Its net asset per share was RM1.15 and it had RM77.54 million cash and cash equivalents.

However, concerns could be its high receivables of RM61.08 million as at June 30, 2011 up from RM39.41 million as at Dec 31, 2010.

Hiro-Dapat Holdings Sdn Bhd is the largest shareholder with 39.948 million shares or 22.85%. Hirotako group managing director Datuk Kuan Peng Ching @ Kuan Peng Soon is deemed interest in the stake via Hiro-Dapat.

KL shares higher at midmorning

At 10.30 am today, there were 349 gainers, 116 losers and 209 counters traded unchanged on the Bursa Malaysia.

The FBMKLCI was at 1,467.52 up 9.72 points, the FBMACE was at 4,009.13 up 35.44 points, and the FBMEmas was at 9,999.59 up 71.40 points.

Turnover was at 526.437 million shares valued at RM495.794 million. - Bernama

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