Time dotCom rises as Q3 profit doubled

Time dotCom Bhd, a Malaysian fiber- optic capacity provider, rose the most in almost three weeks in Kuala Lumpur trading after saying its third-quarter profit doubled to RM40.7 million.

The stock gained 3.1 percent to 66.5 sen at 9:11 a.m. local time, set for its biggest increase since Nov. 9. -- Bloomberg



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Tekala slides to 8-year low on Q2 net loss

Tekala Corp, a Malaysian timber company, fell to its lowest in more than eight years after its fiscal second-quarter net loss widened to RM44.6 million from RM7.6 million a year earlier.

The stock slid 2.9 percent to 50.5 sen at 9:08 a.m. local time in Kuala Lumpur trading, set for its lowest close since March 2003. -- Bloomberg



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Tradewinds climbs on 17% Q3 income hike

Tradewinds (Malaysia) Bhd, an oil- palm planter, rose the most in a week in Kuala Lumpur trading after reporting a 17 percent increase in third-quarter net income to RM144.4 million.

The stock climbed 2.2 percent to RM9.48 at 9:16 a.m. local time, set for its biggest increase since Nov. 22. -- Bloomberg



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KL shares higher in early session

Shares on Bursa Malaysia were traded higher, in early session, today tracking bullish regional sentiment following a strong overnight close on Wall Street, dealers said.

After 10 minutes of trading, the key FTSE Bursa Malaysia KLCI (FBM KLCI) stood at 1,439.40, up 0.55 per cent or 7.85 points when compared with Friday's close of 1,431.55. It opened 6.22 points better at 1,437.77 this morning.

The market was closed yesterday for the Awal Muharram holiday.

A dealer said the benchmark index could play catch-up today amid improved risk appetite following fresh optimism that Europe's debt crisis would be contained and a robust US economy.

On Bursa Malaysia, the Finance Index increased 67.75 points to 12,851.33, the Plantation Index perked 20.21 points to 7,628.94 and the Industrial Index rose 8.55 points to 2,605.64.

The FBM Emas Index climbed 57.92 points to 9,873.89, the FBM70 Index surged 74.43 points to 10,770.34 and the FBM ACE Index advanced 28.31 points to 4,160.31.

Gainers led losers 300 to 38 while 101 counters were unchanged, 1,034 untraded and 16 others were suspended. Turnover stood at 134.99 million shares worth RM100.86 million.

Volume leaders, Sumatec Resources rose 0.5 sen to 31.5 sen, Advance Synergy up 2 sen at 22 sen while Sumatec-Warrants was unchanged at 18 sen.

Among heavyweights, Maybank gained 4 sen to RM7.99, Sime Darby jumped 14 sen to RM8.80 and CIMB rose 3 sen to RM6.77. -- Bernama



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RHB Research downgrades Tenaga to Underperform, FV RM5

KUALA LUMPUR (Nov 29): RHB Research Institute downgraded TENAGA NASIONAL BHD [] (TNB) to an underperform with a revised fair value RM5.00 (previously RM5.45) after it cut the earnings for FY11 by 11%.

It said on Tuesday the lower fair value was based on unchanged target CY12 PER of 13 times, but also added the stock could be supported by its book value of RM5.53.

RHB Research said Petronas Chemical’s management recently highlighted that maintenance on Dec 24, 2011 to Jan 4, 2012 by Petronas at the Guntong-E complex will cut gas supplies to 70% of usual levels.

“Although typically an off-peak period for electricity demand, an overriding concern remains the shortfall in gas supplied to TNB. We gather TNB is currently still only receiving 900-1,000 mmscfd on average in Nov.

“For September and October, we gather that TNB received about 900 mmscfd to 950 mmscfd on average. This implies another loss for TNB in 1QFY12, possibly similar to 4QFY11’s loss of around RM500 million,” it said.

The research house said due to lower-than-expected gas supply, we have cut FY11 earnings by 11%. TNB is not too hopeful the gas supply will normalise anytime soon.

“While earnings visibility remains poor, we do not rule out the possibility of a re-rating for TNB, if: 1) some form of compensation (RM2.1 billion in total or 38 sen a share) is paid by Petronas for the earlier gas supply issue; and 2) a tariff hike is approved (government has accepted coal prices should be adjusted to US$110 a tonne from US$85 a tonne, but key issue is implementation),” it said.



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Genting, Sime lift KLCI in early trade

KUALA LUMPUR (Nov 29): Shares of GENTING BHD [] and Sime Darby lifted the FBM KLCI in early trade on Tuesday, as trading sentiment was given a boost by the firmer overnight close on Wall Street.

In New York, stocks rebounded from seven days of losses on Monday as investors used the latest effort from European leaders to resolve the region's debt crisis as an opportunity to cover short positions.

At Bursa Malaysia, the KLCI was up 7.78 points to 1,439.33 at 9.11am. Turnover was 127.77 million shares valued at RM96.36 million. The broader market was very positive with 298 gainers to 33 losers while 100 counters were unchanged.

Genting rose 22 sen to RM10.40 while Sime Darby’s strong first quarter results saw it adding 14 sen to RM8.80.

BAT was the top gainer, adding 60 sen to RM46 while HLFG gained 22 sen to RM11.38, Nestle, 20 sen to RM51.10, Esso 15 sen to RM3.56 and Batu Kawan 12 sen to RM16.70.



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OSK Research: F&N’s share price may trade higher

KUALA LUMPUR (Nov 29): OSK Retail Research said F&N Holdings Bhd’s share price may trade higher after it broke above the short-term resistance level.

It said on Tuesday this consumer stock wasn’t spared during the recent market selloff of August-September.

“Nonetheless, its long-term uptrend is still intact as the low of September is well above the low of December 2010,” it said.

OSK Research said that clear and strong buying interest lies near the low of September, just above RM16.00, from the volume spikes from August–October. In fact, it was followed by a strong rebound in early-November and the stock is back above the 200-day MAV line.

This is followed by a near three-week consolidation and the second leg of the rebound may have started, after it broke above the consolidation high of RM17.58 and this also violates the 100-day MAV line.

“Thus, look for the stock (F&N) to trade higher, and purchase can be made above the stop of RM17.36. The first target is RM19.00, the low of May and June and then the all-time high of RM19.80,” it said.

OSK Research said a break above RM19.80 could see F&N’s share price testing RM21.00, based on the measured move of the December 2010–April 2011 rally.

The research house said a close below RM17.36 will invalidate the trade and the technical picture may turn weak.

“That will again see a break below the 200-day MAV line and the creation of lower highs. A close below RM15.86 will confirm the trend weakness,” it said.



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HDBSVR sees Bursa Malaysia playing catch-up

KUALA LUMPUR (Nov 29): Hwang DBS Vickers Research (HDBSVR) said while Bursa Malaysia could play catch-up with key regional markets on Tuesday and following the strong overnight close on Wall Street.

It said on Tuesday that while Bursa Malaysia was closed on Monday for a public holiday, regional bourses mostly ended in positive territory with India’s benchmark index up 3.0%, China shares listed in Hong Kong added 2.3% and South Korea’s Kospi 2.2%.

Over on Wall Street, key US equity indices jumped between 2.6% and 3.5% last night following buoyant retail sales and hopes that the European leaders would act harder to resolve the region’s sovereign debt crisis.

“Consequently, the benchmark FBM KLCI could play catch-up today. After a plunge of 22.8-point or 1.6% last week, the bellwether is expected to stage a technical rebound towards the first resistance level of 1,445 ahead,” it said.

The positive market backdrop will probably lift large caps like Sime Darby and IJM Corporation, which have announced their latest quarterly results on Friday evening that came in within expectations.

“On the other hand, MRCB and Kinsteel may see selling pressures after reporting below par quarterly earnings,” it said.



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