IOI Corp dn, Maybank Research cuts stock to Hold

KUALA LUMPUR (Nov 17): IOI Corp Bhd share fell to a low of RM5.16 in thin trade on mild profit taking on Thursday while Maybank Investment Bank Research downgraded it to a Hold after the share price exceeded its target price.

At 11.14am, it was down four sen to RM5.19. There were 305,400 shares done at prices ranging from RM5.16 to RM5.21.

Maybank Research said IOI Corp’s share price had surpassed its target price, up 12% since it last upgraded the stock on Aug 25 and up 20% from its recent bottom.

The research house said the first quarter earnings for the period ended Sept 30 were expected to be weaker on-quarter.

“Sentiment may be dampened by huge forex translation loss of c.RM230m in 1QFY12 following a weaker ringgit.

“We maintain our earnings forecasts pending the release of 1Q results on Nov 18. TP is unchanged at RM5.14 based on 16 times FY13 price-to-earnings ratio,” it said.



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KLCI extends losses as Asian markets stay jittery

KUALA LUMPUR (Nov 17): The FBM KLCI extended its losses at mid-morning on Thursday, Nov 17 in line with the weaker key regional markets following the overnight plunge at Wall Street as US stocks fell on fears of a contagion from eurozone crisis.

Asian shares and the euro fell further on Thursday as doubts deepened about Europe's ability to stop its sovereign debt crisis from spinning out of control, with the region's biggest nations split over the European Central Bank's bond buying role, according to Reuters.

The focus of concern is shifting to difficulties in securing funds from money markets, where strains are intensifying due to rising government borrowing costs that have made financial institutions reluctant to buy sovereign bonds and lend to each other for fear of counterparty exposure to euro zone debts, it said.

The FBM KLCI fell 6.05 points to 1,470.79 at 10am.

Losers led gainers by 250 to 122, while 201 counters traded unchanged. Volume was 316.5 million shares valued at RM156.42 million.

At the regional markets, Hong Kong’s Hang Seng Index lost 1.28% to 18,718.55, Singapore’s Straits Times Index fell 0.87% to 2,783.02, Taiwan’s Taiex was down 0.56% to 7,346.12, Japan’s Nikkei 225 fell 0.17% to 8,448.74 and South Korea’s Kospi shed 0.06% to 1,854.97.

Meanwhile, the Shanghai Composite Index edged up 0.29% to 2,474.08.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients said that due to US markets’ very poor tone last night, there could be another downward day for the local index.

He advised investors to trade with a short-term time frame locally.

“It is unwise to join the recent penny stock activity (eg Harvest with its suspension, designation and limit-down and SYF with its large cumulative 2 days’ price and percentage drop) as these stocks do not have any fundamentals and the companies are loss-making.

“Sell these stocks swiftly if their trends turn down violently,” he said.

On Bursa Malaysia, BAT fell 46 sen to RM46.54, Harvest Court lost 44 sen to RM1.05, MISC 12 aen to RM6.67, AIRB and Petronas Gas fell 10 sen each to RM1.49 and RM13.24, CIMB nine sen to RM6.97, HDBS seven sen to RM2.28 and Genting PLANTATION []s was down six sen to RM7.91.

Among the gainers, Kretam and Nestle added 28 sen each to RM2.50 and RM49.50, Amway 17 sen to RM9.21, Ekovest and TDM nine sen each to RM2.67 and RM3.37, Can-One and MAHB seven sen each to RM1.02 and RM6.19, KLK six sen to RM21.12, Kenanga 5.5 sen to 72 sen and REC Capital five sen to 51.5 sen.

Compugates was the most actively traded counter with 19.4 million shares done. The stock was unchanged at 8 sen.

Other actives included TMC Life, Tricubes, YGL, Sumatec, Asia EP, REC Capital and DPS Resources.



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KL shares open lower

Share prices on Bursa Malaysia started the trading day on a weaker note, tracking the bearish Wall Street market on Wednesday, and as investors globally remained cautious over the impact of the European debt woes on the economy, dealers said.

Eighteen minutes after the opening, the FTSE Bursa Malaysia (FBM KLCI) slipped 6.13 points to 1,470.71 with losses mostly seen in Sime Darby. Earlier, the benchmark index opened 1.32 points lower at 1,475.54.

The Finance Index declined 33.069 points to 13,138.86, the Plantation Index eased 5.67 points to 7,681.82 and the Industrial Index slipped 8.93 points to 2,709.82.

The FBM Emas Index dropped 31.71 points to 10,088.11, the FBM Mid 70 Index was 19.87 points lower at 11,015.46 and the FBM ACE Index decreased 13.95 points to 4,232.12.

Decliners led advancers 163 to 90 while 134 counters were unchanged, 1,094 untraded and 32 others were suspended. Turnover stood at 149.163 million shares valued at RM71.428 million.

HWANGDBS Vickers Research, in its note today, said major US equity indices plunged between 1.6 per cent and 1.7 per cent at the closing bell partly on fears that American banks could be hit by the spreading eurozone sovereign debt crisis.

Consequently, Asian equities will likely suffer from the spillover effects today, it said. "Back home, the benchmark FBM KLCI is expected to drop below its immediate support level of 1,475, possibly falling towards the next support line of 1,445 ahead," it added.

Actives, Compugates was unchanged at eight sen, TMC Life Sciences shed two sen to 47.5 sen and Tricubes edged up half-a-sen to 26.5 sen.

For heavyweights, Maybank slipped two sen to RM8.37, Sime Darby lost 11 sen to RM8.82, CIMB shed seven sen RM6.99 and Petronas Chemicals dropped six sen to RM6.15. -- Bernama



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Malton climbs on doubling Q1 profit

Malton Bhd, a Malaysian property developer, rose in Kuala Lumpur trading after fiscal first- quarter profit more than doubled to RM12.1 million.

The stock climbed 1.5 percent to 70 sen at 9:02 a.m. local time.


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Proton continues to ride on takeover rumours

KUALA LUMPUR (Nov 17); PROTON HOLDINGS BHD [] shares continued to advance on Thursday, Nov 17 after rumours of a possible takeover by Tan Sri Syed Mokhtar’s DRB-Hicom and the Naza Group resurfaced.

At 9.32am, Proton rose three sen to RM3.56 with 766,300 shares traded.

The Edge Financial Daily reported today that speculation was rife that there was renewed interest by DRB-Hicom as well as the Naza Group to acquire Proton.

Both DRB-Hicom and Naza are involved in the manufacturing and distribution of cars.

For more, read today’s edition of The Edge Financial Daily.



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Amway (M) gains on higher Q3 net income

Amway (Malaysia) Holdings Bhd, a direct sales company, advanced to the highest level in more than three months in Kuala Lumpur trading after its third-quarter net income rose 20 percent to RM25.8 million.

The stock gained 3.4 percent to RM9.35 at 9:07 a.m. local time, set for the highest close since Aug. 5. -- Bloomberg



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MBF Hlgs slides on Q3 net loss

MBF Holdings Bhd, a Malaysian credit card, property and auto group, fell to its lowest in more than a month after its third-quarter net loss widened to RM12.6 million from RM3.9 million a year earlier.

The stock slid 1.9 percent to 78 sen at 9:15 a.m. local time in Kuala Lumpur, set for its lowest close since Oct. 7. -- Bloomberg



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MIDF Research maintains Buy on TH Plantations, TP RM2.51

KUALA LUMPUR (Nov 17): MIDF Research is maintaining its Buy call on TH PLANTATION []s Bhd at a higher revised price of RM2.51 from RM2.26.

It said on Thursday in line with the upwards earnings revision, it was revising our target price by 11% to RM2.51.

“The target price is derived from 9.5 times EPS12, which is 0.5-standard deviation below its three-year historical PER of 10.3 times,” it said.

“The higher targeted PER (we previously discount the valuation by one standard deviation) is to reflect TH Plant’s maturity and stable business operation,” it added.



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