AMMB Q2 net income grows to RM370m

AMMB Holdings Bhd, a Malaysian banking group, said second-quarter net income rose to RM369.5 million from RM332.9 million a year earlier, according to a statement to the Kuala Lumpur stock exchange.

Revenue climbed to RM2.14 billion from RM1.77 billion, it said. -- Bloomberg



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KLCI slips into red as Asian markets retreat

KUALA LUMPUR (Nov 16): The FBM KLCI slipped into negative territory at the mid-day break on Wednesday, Nov 16 as key Asian markets sank on fears of a contagion effect from the eurozone.

Asian shares and the euro fell on Wednesday as signs that rising borrowing costs were affecting AAA-rated France stirred fears that even core euro zone members may not escape contagion from the region's debt crisis, according to Reuters.

The political outlook remained unclear in struggling Italy and Greece as they attempt to push through severe austerity measures needed to get bail-out funds and win market confidence. Prime Minister designate Mario Monti was expected to unveil Italy's new government on Wednesday, it said.

The FBM KLCI was down shed 0.34 of a point to 1,476.88 at 12.30pm. Losers overtook gainers by 421 to 241, while 294 counters traded unchanged. Volume was 1.24 billion shares valued at RM706.41 million.

The ringgit weakened 0.47% to 3.1651 versus the US dollar; crude palm oil futures for the third month delivery fell RM10 per tonne to RM3,168, crude oil lost 67 cents per barrel to US$98.70 while gold fell US$11.97 an ounce to US$1,768.85.

At the regional markets, Hong Kong’s Hang Seng Index fell 1.94% to 18,973.07, the Shanghai Composite Index lost 1.73% to 2,486.12, Japan’s Nikkei 225 was down 0.76% to 8,476.62, Taiwan’s Taiex fell 0.79% to 7,431.90, South Korea’s Kospi lost 0.62% to 1,874.47 and Singapore’s Straits Times Index shed 0.50% to 2,797.52.

On Bursa Malaysia, Harvest Court was the top loser when it resumed trade this morning after it Bursa Malaysia Securities Bhd had on Monday declared the securities counter as a designated counter.

Bursa Securities’ decision to designate the securities of Harvest and the warrants due to excessive speculation observed in the trading of both securities and has been taken in the interest of ensuring a fair and orderly market.

Harvest Court fell 63 sen to RM1.50 while its warrants lost 54 sen to RM1.27.

Other decliners included Shell that fell 24 sen to RM7.55, Manulife and Petronas Chemicals down 18 sen each to RM2.77 and RM6.22, SYF Resources 11.5 sen to 63.5 sen, Nilai and KLK 10 sen each to RM1.40 and RM20.98, while Lafarge Malayan Cement lost nine sen to RM6.78.

Among the gainers, Dutch Lady added 50 sen to RM22.30, Proton up 33 sen to RM3.54, DiGi 22 sen to RM34.84, TDM 20 sen to RM3.18, Carlsberg 18 sen to RM7.23, Bumi Armada 16 sen to RM3.99, Tradewinds 14 sen to RM9.07, Maybank 13 sen to RM8.40, Aeon Credit 12 sen to RM5.68 and Parkson nine sen to RM5.74.

Compugates was the most actively traded counter with 66.98 million shares done. The stock added half a sen to 8 sen.

Other actives included Tiger Synergy, Asia EP, DPS Resources, Ingenuity Solutions, Tricubes and Systech.



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Tricubes secures police contract for traffic summons

KUALA LUMPUR (Nov 16): TRICUBES BHD [] has secured a contract from the Malaysian police to handle the traffic summons and enquiries.

It said on Wednesday it had received a letter of award from the police appointing as the collection agent of traffic summons via the automated teller machines and also enquiry of traffic summons through the short messaging services.



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Alliance Financial Group 2Q net profit up 18.2% to RM120.95m

KUALA LUMPUR (Nov 16): ALLIANCE FINANCIAL GROUP BHD [] (AFG) reported a strong set of financial results for the second quarter ended Sept 30, 2011, with earnings up 18.2% to RM120.95 million from RM102.27 million a year ago.

It said on Wednesday that revenue increased by 5.9% to RM314.60 million from RM296.98 million. Earnings per share were 7.9 sen compared with 6.7 sen.

For the first half, the earnings rose 8.2% to RM250.51 million from RM213 million while its revenue increased 8.9% to RM624.37 million from RM573.20 million.

At the pre-tax profit level, there was a 16.8% increase to RM336.3 million as the improvement was underpinned by growth in non-interest income, Islamic banking earnings and lower impairment charges.

Alliance Bank Malaysia Bhd Group chief executive officer Sng Seow Wah said: “We are happy with our first half performance, which reflects the results of the strategic initiatives undertaken over the last 18 months in upgrading capabilities and systems to deliver earnings and value creation across our franchise in consumer and SME banking.”

For the 1H, the group reported a 13.8% or RM97.2 million growth in income from its lending operations, including Islamic Banking, due to the 8.1% year-on-year expansion in the net loans portfolio.

“However, the 25 bps rise in the Overnight Policy Rate (OPR) as well as the 3% rise in statutory reserve ratio (SRR) in the last 12 months, put pressure on interest margins, and hence, the net interest income, including Islamic banking, registered a marginal increase of RM14.4 million or 3.2%,” it said.



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AMMB 2Q earnings up 10.9% to RM369.4m from yr ago

KUALA LUMPUR (Nov 16): AMMB HOLDINGS BHD []’s earnings rose 10.9% to RM369.47 million in the second quarter ended Sept 30,2011 from RM332.87 million a year ago, boosted by the group’s retail banking operations.

It said on Wednesday its revenue increase by 20.5% to RM2.138 billion from RM1.773 billion while earnings per share were 12.35 sen versus 11.08 sen. It declared a single tier dividend of 6.6% per share.

For the first half, its earnings increased by 15.6% to RM810.99 million while its revenue increased 17.6% to RM4.092 billion from RM3.477 billion.

AMMB also said its core capital ratio strengthened to 10.4% as at end September from 10.2% at end March while the risk-weighted capital ration increased to 14.9% from 14.4%.

“Improvement in earnings for current reporting quarter ended Set 30, as compared to preceding financial year corresponding quarter was mainly attributed to net impairment writeback on financial investment of RM17.7 million as opposed to net impairment loss of RM45.0 million, higher other operating income and net income from Islamic banking business by RM33.6 million and RM27.5 million respectively,” it said.

AMMB said the higher earnings from net income from insurance business of RM49.7 million and net interest income of RM524.8 million had also contributed to the improvement in earnings for the current reporting quarter ended Sept 30.

The banking group said the improvement in earnings for current reporting quarter from a year ago was partially off-set by higher other operating expenses, higher allowances for impairment on loans and financing, higher impairment loss on foreclosed PROPERTIES [] and doubtful sundry receivables of RM428.0 million, RM121.1 million, RM28.2 million and RM1.3 million respectively.



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KL shares lower mid-day

Share prices on Bursa Malaysia remained lower as at midday today with mild profit taking activities seen in selected heavyweights, led by Petronas Chemicals, dealers said.

As at 12.30 pm, the FTSE Bursa Malaysia (FBM KLCI) slipped 0.19 of a point to to 1,477.03, with the benchmark index moving between 1,473.57 and 1,487.37. However, gains in Maybank managed to cap some of the losses.

The Finance Index rose 39.06 points to 13,178.5 but the Plantation Index declined 12.32 points to 7,622.52 while the Industrial Index added 5.27 points to 2,720.59.

The FBM Emas Index shed 1.8 points to 10,118.51 but the FBM Mid 70 Index rose 9.29 points to 11,030.68 while the FBM ACE Index dropped 36.27 points to 4,235.16.

Losers outnumbered gainers by 421 to 241 while 294 counters were unchanged, 525 untraded and 23 others suspended. Turnover stood at 1.241 billion shares worth RM706.413 million.

For the actives, Compugates and AsiaEP added half sen each to eight sen and 10 sen respectively while Tiger Synergy was unchanged at 13.5 sen.

For the heavyweights, Maybank gained 13 sen to RM8.40 and Sime Darby rose six sen to RM8.97 but CIMB eased four sen to RM7.06 and Petronas Chemicals lost 18 sen to RM6.22. -- Bernama



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CI Holdings clarifies Erwin Selvarajah still Permanis CEO

KUALA LUMPUR (Nov 16): CI Holdings Bhd (CIH) clarified that Erwin Selvarajah has resigned as chief executive officer (CEO) of CIH with effect from Nov 11, 2011.

CIH said on Wednesday that Erwin resigned from the CEO post after the recent change in shareholding of Permanis Sdn Bhd and its group of companies from CIH to Asahi Group Holdings Ltd., Japan.

“Erwin, however, maintains his post as the CEO of Permanis,” it said.



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KL shares reverses earlier gain

Share prices on Bursa Malaysia turned easier at mid-morning today as investors remained wary over uncertainties in the global market, dealers said.

As at 11.06 am, the FTSE Bursa Malaysia (FBM KLCI) eased 0.9 of a point to to 1,476.32, dragged down by losses, mostly seen in Petronas Chemicals. However, gains in Maybank managed to cap some of the losses.

The Finance Index improved 49.97 points to 13,189.41, the Plantation Index added 7.23 points to 7,642.07 but the Industrial Index slipped 4.65 points to 2,710.67.

The FBM Emas Index shed 0.529 of a point to 10,119.78 but the FBM Mid 70 Index rose 18.94 points to 11,040.33 while the FBM ACE Index declined 8.89 points to 4,262.54.

Losers led gainers by 292 to 275 while 287 counters were unchanged, 627 untraded and 23 others suspended. Turnover stood at 905.911 million shares worth RM497.617 million.

HWANGDBS Vickers Research, in its research note today said key US stock indices ended higher by between 0.1 per cent and 0.5 per cent on Tuesday, on hopes that the new Italian Prime Minister would make progress in resolving the country’s sovereign debt problems.

"The nervous Wall Street performance may spread to our local bourse ahead, with the benchmark FBM KLCI likely to oscillate around the immediate support level of 1,475, pending the emergence of fresh market leads," it said.

Harvest Court, which resumed trading this morning after being declared as designated securities, lost 63 sen to RM1.50 with 660,000 shares changing hands.

Meanwhile, banking groups AMMB Holdings and Alliance Financial Group are scheduled to announce their latest quarterly financial results during lunch today.

For the actives, AsiaEP added half sen to 10 sen, Tiger Synergy was unchanged at 13.5 sen while Ingenuity Solutions shed half sen to 6.5 sen.

For the heavyweights, Maybank gained 13 sen to RM8.40, Sime Darby was flat at RM8.91, CIMB eased one sen to RM7.09 and Petronas Chemicals lost 16 sen to RM6.24. -- Bernama



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