Sumatec inks pact with Markmore Energy

Sumatec Resources Bhd, a Malaysian engineering group, said it signed an agreement with Markmore Energy (Labuan) Ltd for a proposed production-sharing contract by CaspiOilGas LLP.

The partners would develop and extract hydrocarbon in Kazakhstan’s Shelly Oil Field where CaspiOilGas is a concession holder, Sumatec said in a Kuala Lumpur stock exchange filing today. -- Bloomberg



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BIMB Holdings posts RM16.31m net profit in 3Q

KUALA LUMPUR (Nov 29): BIMB HOLDINGS BHD [] posted net profit of RM16.31 million in the third quarter ended Sept 30, 2011, which was sharply lower from the second quarter’s RM62.84 million due to relatively lower net income, higher operating overheads.

It said on Tuesday that its revenue was RM481.31 million while earnings per share were 1.53 sen. This was a decline from the revenue of RM502.26 million in 2Q and EPS of 5.89 sen.

BIMB said the group's profit before zakat and taxation (PBZT) for the quarter under review of RM110.6 million declined by RM43.0 million or 28% compared to the PBZT of RM153.6 million in 2q.

“The decrease was mainly attributable to relatively lower net income, higher operating overheads and higher allowance for impairment on financing, advances and others,” it said.

Bank Islam Malaysia Bhd’s PBZT for 3Q11 of RM101.0 million was lower compared to 2Q by RM32.2 million or 24%. The decrease was due mainly to lower writebacks in impairment allowances by RM16.1 million and by both fund based and non-fund based income by RM13.5 million respectively.

For the quarter under review, SYARIKAT TAKAFUL MALAYSIA BHD [] (STMB) recorded a PBZT of RM 10.1 million which was RM11.7 million lower than the preceding quarter of RM 21.8 million. The decrease was mainly attributable to lower surplus transfers from Family Takaful and General Takaful. The lower surplus transfers was due to higher reserving for family takaful group products and the impact of poor performance of the equity market.

For the nine-month period, BIMB said its group net profit was RM130.52 million on the back of revenue of RM1.467 billion.

The group's PBZT of RM399.8 million for the nine months increased RM127.8 million or 47% over the previous corresponding period. Net profit attributable to the shareholders had improved by RM37.7 million or 41% to RM130.5 million.

“The higher profitability recorded for the nine months financial period ended Sept 30, 2011 was mainly due to higher operating results registered by the Group's subsidiaries, mainly Bank Islam Malaysia group and STMB group by 20% and 81% respectively.

“The growth in the Group's net income was driven by higher profit from continued growth in financing, higher non-fund based income and improved asset quality in Bank Islam (Bank Islam), as well as higher profit generated from Takaful businesses.

Bank Islam recorded a PBZT of RM342.0 million for the nine months ended 30 September 2011, an increase of RM101 million or 42% compared to the last corresponding period. The significant achievement translated into a return on equity (ROE) of 17.3% compared to 16.5% as at end December 2010. The Islamic banking system average ROE was 14.5% as at end December 2010. The return on assets (ROA) was 1.5% compared to 1.2% as at end December 2010. The Islamic Banking System average was 1.2% as at end December 2010.

BIMB said for the nine months financial period ended Sept 30, STMB recorded operating revenue of RM1.045 billion comprising RM892.5 million in gross contribution and RM152.6 million in investment income. The gross contribution was mainly attributable to Family Takaful group business and motor and fire class of business.



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Proton H1 profit dips on Lotus' expenses

Proton Holdings Bhd recorded a lower pre-tax profit of RM47.524 million for the six months ended September 30, 2011 versus RM185.914 million chalked up in the corresponding quarter last year.

Revenue dwindled to RM4.496 billion, during the period under review, from RM4.530 billion raked in previously.

"The lower profit is largely attributed to higher expenses incurred by Lotus Group International Ltd, which is in line with Proton's effort to achieve Lotus's long-term business transformation plan," the national automaker said in a filing to Bursa Malaysia today.

Meanwhile, Proton said in statement today that Lotus has received orders for more than 300 vehicles since opening its first showroom in China. -- Bernama, Bloomberg



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MISC to sell 16 container ships

MISC Bhd, Southeast Asia’s largest shipping line by market value, intends to sell its 16 container vessels within about six months as it exits unprofitable cargo-box operations.

The prices for the ships will depend on market conditions, the Kuala Lumpur-based company said in an e-mailed reply to Bloomberg News questions on Nov 27. Any vessels not sold in the period will be kept in “a short re-activation mode” until December 2012, including manning and maintenance, MISC said.

The shipping line will also look to sub-lease chartered-in vessels or return them to owners early, it said. The contracts on 10 of the company’s 14 chartered-in ships expire by the end of June. It didn’t say how long the other four contracts run.

MISC, controlled by Malaysia’s state oil company Petroliam Nasional Bhd, said last week it will exit container shipping after the unit accumulated US$789 million of losses in three years. The company garners less than 20 per cent of sales from the sector, with the remainder coming from tankers and energy- related businesses.

Only two of MISC’s 16 owned container vessels are able to carry more than 5,000 boxes, according to its website. The rest are smaller, reflecting the shipping line’s decision in 2010 to exit the Asia-Europe market and instead focus on intra-Asia routes.

The group also owns or leases 29 liquefied-natural gas ships, 83 petroleum tankers and 28 chemical tankers, according to its website.

The shipping line said on Nov 25 that it may take a US$400 million charge from closing the unprofitable container unit, which would contribute to an expected full-year loss.

The shares of MISC climbed 2.6 per cent, the biggest intraday increase since Nov 23, to RM5.95 at 11.46am today. The stock has declined 29 per cent this year, the biggest drop among the 30 stocks in the benchmark FTSE Bursa Malaysia KLCI Index. -- Bloomberg



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Malaysia auto-parts makers eye India

A group of Malaysian auto-parts makers are scouting for Indian partners to export products for the country's burgeoning automobile sector.

At least five vendors are exploring prospects in two major Indian cities, Chennai (Tamilnadu), an emerging hub for global auto producers, and Pune in Maharashtra, to market their auto components.

"Malaysian companies are looking for market opportunities in India and also the right partner for joint ventures.

"Malaysia has quality auto products, while Indian companies are looking for other (sourcing) options and this is a good sign," Chennai-based Malaysia External Trade Development Corporation (Matrade) Commissioner, Shah Nizam Ahmad said.

The companies were on a specialised marketing mission for automotive parts and components to the two Indian cities from Nov 23-25.

Meanwhile, Mumbai-based Matrade Commissioner, Noraslan Hadi Abdul Kadir said the companies had managed to secure potential sales of RM18.8 million in both cities.

"Malaysia has the technology and what our companies need are local partners to export to the Indian market or even set up production here," he added.

India's auto component industry is estimated at nearly US$40 billion (RM120 billion), driven by the sharp rise in demand for passenger cars and utility vehicles.-- Bernama



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BIMB records higher earnings

BIMB Holdings Bhd (BHB)'s profit before tax and zakat (PBZT) rose 47 per cent to RM399.8 million for the nine months ended Sept 30, 2011.

In a statement today, group managing director/chief executive officer Johan Abdullah said the higher profitability was mainly due to higher operating results reported by the group's main subsidiaries, Bank Islam Malaysia Bhd and Syarikat Takaful Malaysia Bhd Group (STMB).

Bank Islam recorded a PBZT of RM342 million, up 42 per cent from the same period last year, against a revenue of RM1.2 billion.
Meanwhile, Syarikat Takaful posted an operating revenue of RM1,045.1 million comprising RM892.5 million in gross contribution and RM152.6 million in investment income.

On prospects, Johan said the group would continue to leverage on Bank Islam's strong Islamic branding and competitive position to sustain core retail financing and deposit-investment businesses while Syarikat Takaful was expected to increase its market share by introducing new products, increasing agency workforce and strategic tie-ups with Islamic banks to market its banca takaful products.

Meanwhile, BHB also announced the adoption of a dividend pay-out policy of at least 50 per cent of the company's net profit attributable to shareholders.

It explained that the move was necessary to retain adequate reserves for future growth. -- Bernama



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KL shares bullish at afternoon

Shares on Bursa Malaysia ended the morning session today on a bullish note with continued buying interest seen in selected heavyweights, dealers said.

At 12.30pm, the underlying FTSE Bursa Malaysia KLCI (FBM KLCI) gained 1.57 per cent or 22.45 points to 1,454 supported by gains in heavyweights, including CIMB, Genting, Maybank and Tenaga Nasional.

The key index had opened 6.22 points higher at 1,437.77 this morning.

A dealer said the positive local bourse was in tandem with key regional markets, following the firmer overnight close on Wall Street, as well as improved risk appetite on fresh optimism that Europe's debt crisis would be contained.

Furthermore, investor sentiment was buoyed by the robust US Thanksgiving weekend retail sales, the dealer also said, adding, the local bourse is likely to remain in positive territory today.

On Bursa Malaysia, the market breadth was positive with 450 gainers and 183 losers with turnover amounting to 654.64 million shares valued at RM724.88 million.

The Finance Index surged 268.55 points to 13,052.13, the Plantation Index jumped 54.79 points to 7,663.52 and the Industrial Index gained 17.82 points to 2,614.91. The FTSE Bursa Malaysia Emas Index perked 135.45 points to 9,951.42, the Malaysia Mid 70 Index increased 103.62 points to 10,799.53 and the FTSE Bursa Malaysia Ace Index was 19.36 points higher at 4,151.36.

Among actives, Sumatec rose 0.5 sen to 31.5 sen, JCY-Call Warrant was up 4 sen to 25 sen while Sumatec-Warrants declined 0.5 sen to 17.5 sen.

For the heavyweights, Maybank added 11 sen to RM8.06, Sime Darby jumped 18 sen to RM8.84 and CIMB surged 31 sen to RM7.05.-- Bernama



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KLCI rallies on fund buying of banks, Genting

KUALA LUMPUR (Nov 29): Fund buying of banks and GENTING BHD [] sparked a rally on Bursa Malaysia on Tuesday, sending the FBM KLCI up more than 22 points or 1.55% as the local market played catch-up with other regional markets and Wall Street.

At 12.30pm, the KLCI was up 22.26 points to 1,453.81. Turnover was 654.66 million shares valued at RM724.89 million. There were 450 gainers, 182 losers and 232 stocks unchanged.

Crude palm oil futures fell RM9 to RM3,060 per tonne while US light crude oil slipped 61 cents to US$97.60 per barrel while the ringgit was quoted at 3.1805 to the US dollar.

Among the key regional markets, Japan’s Nikkei 225 rose 1.29% to 8,394.14, Hong Kong’s Hang Seng Index 0.46% to 18,121.46 and Shanghai’s Composite Index 0.55% higher at 2,396.04. Taiwan’s Taiex added 1.05% to 6,960.96 and South Korea’s Kospi 1.94% to 1,850.48 but Singapore’s Straits Times Index fell 0.17% to 2,689.79.

At Bursa Malaysia, financial stocks were the major gainers as funds bought them on hopes of a recovery. HLFG rose 56 sen to RM11.73, CIMB 31 sen to RM7.05, AMMB 24 sen to RM5.88, Public Bank 12 sen to RM12.52 and Maybank 11 sen to RM8.06.

BAT was the top gainer, up RM1.10 to RM46.50 with 78,200 shares done. Genting rose 48 sen to RM10.50 while Sime Darby gained 18 sen to RM8.84. Proton was nine sen higher to RM3.17 on rising speculation of a takeover.

Sumatec was the most active with 34.91 million shares done with its warrants shed 0.5 sen to 17.5 sen with 20.54 units done.

During the midday break, Sumatec announced that it picked by Markmore Energy (Labuan) Ltd (MELL), which is controlled by Tan Sri Halim Saad, for a production sharing contract at an oil field near the Caspian Sea.

Harvest was the top loser, down 21 sen to RM76 sen while the warrants fell 17 sen to 55 sen. Other decliners were Delloyd, down 14 sen to RM3.32, Fibon 9.5 sen to 40.5 sen and Shangri-la eight sen to RM2.12.



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