Monday, 12 December 2011

Maybank eyes RM300m from Fortune8 fund

Maybank's latest single premium and capital guaranteed investment-linked insurance plan, the Fortune8, aims to achieve its cap of RM300 million in sales by the time the fund closes on Dec 31, 2011.

The Fortune8, is a closed-end three-year, six-month investment-link plan, that provides a guaranteed investment return and capital protection on the investment with an additional potential upside return from the performance of commodity prices.

"The Fortune8 is appealing to customers as it provides a potential upside return apart from guaranteeing 100 per cent of the capital on maturity and paying a five per cent guaranteed cash payout at the end of the 18th policy month," its deputy president and head of community financial services, Lim Hong Tat said in a statement today.

Customers can start investing with a minimum RM15,000 and additional investments in multiples of RM1,000.

"The fund provides exposure to commodities as a hedge against the global inflationary environment, including items such as food, transportation and many more.

"Commodities are able to protect investors from the short term effects of inflation while providing capital appreciation," he said.

The investment-linked plan allows investors the choice to invest in commodities like energy, precious metals, industrial metals, agriculture and livestock.

The Fortune8 is in line with Maybank Group’s strategy to extend its asset management business, not only in Malaysia but regionally.

"Given the growing demand from customers for a diversified range of investment products, especially from those with a low risk profile, we believe that the Fortune8 will provide them the confidence to invest even in volatile market conditions,"Lim said.

The Fortune8 is underwritten by Etiqa Insurance Berhad can be purchased at all Maybank branches nationwide. -- Bernama



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Bursa queries Sersol over price surge

Bursa Malaysia Securities Bhd has issued an Unusual Market Activity (UMA) query to Sersol Technologies Bhd today due to the recent sharp rise in price and high volume in the company’s shares.

As at 11.29am, its share price was 6.5 sen or 23.63 per cent higher at 34 sen.

The UMA query is posted on Bursa Malaysia’s website, www.bursamalaysia.com, under the classification of "Listing Circular," said Bursa in a statement.

It said investors are advised to take note of Selsol's reply to the UMA query which will be posted on Bursa Malaysia’s website under company announcements, http://announcements.bursamalaysia.com, when making their investment decision. -- BERNAMA



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Fitch: Malaysian banks’ outlook stable

SINGAPORE: Fitch Ratings says in a new report that the outlooks of its rated Malaysian banks are expected to remain stable, even if a fresh economic slowdown were to emerge from the mounting global uncertainty.

Downward rating risks could arise should such a downturn, particularly if sharp and protracted, lead to significant capital impairment risks for the local banks.

However, the agency views this likelihood as fairly low, due to their satisfactory loss-absorption qualities and risk management, as well as a prudent regulatory environment.

Fitch believes Bank Negara Malaysia will closely monitor household debt, which - at 76 per cent of end-2010 GDP - remains high and leaves the banking sector vulnerable to sharp increases in unemployment and interest rates.

Precautionary measures may be tightened further to those introduced in 2010-H111 to prevent households from over-extending themselves, particularly in an environment of continued ample liquidity, low interest rates and rising asset prices.

This, together with banks’ satisfactory risk management, underpins Fitch’s view that domestic loans to individuals will remain of fairly sound quality through credit cycles.

While the ongoing sovereign turmoil in Europe is unlikely to materially impact on the Malaysian bank’s credit profiles, global economic prospects are becoming increasingly weak, posing fresh downside risks to the Malaysian economy and banking system.

Fitch believes that the impact of higher credit costs can be absorbed largely through banks’ earnings, leaving limited risk of capital erosion.

Such resilience was also observed in the 2008-2009 global economic crisis and is broadly consistent with the conclusion of the agency’s stress test.



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Bursa Securities queries Sersol Technologies

KUALA LUMPUR (Dec 12): Bursa Malaysia Securities Bhd has issued an unusual market activity query over the trading of SERSOL TECHNOLOGIES BHD []’s shares on Monday.

The regulator said on Monday the query was due to the sharp rise in price and high trading volume in Sersol’s shares.

At 11.25am, Sersol rose 6.5 sen to 34 sen with 13.7 million shares traded.



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SYF Resources active, up on positive 1Q results

KUALA LUMPUR (Dec 12): SYF RESOURCES BHD [] shares rose in active trade on Monday after the company’s first quarter financial results showed a significant improvementg after regularising its financial condition.

At 10.50am, SYF rose 1.5 sen to 71 sen with 11.9 million shares done while its warrants added 1.5 sen to 55 sen with 10.76 million units traded.

SYF recorded net profit of RM39.24 million in the first quarter ended Oct 31, 2011 when compared with net loss of RM581,000 a year ago after the waiver of debts and overprovision of interest.

Its revenue for the quarter rose to RM42.98 million from RM40.44 million in 2010, while earnings per share was 43.37 sen from loss per share of 0.69 sen.



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MIDF Research: Eurozone may not be seeing a lasting impact

KUALA LUMPUR (Dec 12): MIDF Research said the eurozone would not be seeing a lasting relief following the summit of European policymakers over the weekend.

MIDF Research chief economist Anthony Dass in a note Monday said he was fairly skeptical over the outcome although he acknowledged that there had been progress, but cautioned that there still remained inadequate satisfactory resolution over the debt crisis.

He also said that the Summit saw Germany as the clear winner, while UK was full of resentment.

He said the concern was whether the agreement would shift to treaty should there be lack of synchronisation.

“Risk of downgrading by rating agencies remains since it did not address the increasingly shaky banks or go far enough to shore up the euro-zone battered debt markets remains.

“What turned out to be a disappointment is when ECB remains as ‘lender of last resort’ to only banks not governments,” he said.

Dass said that ECB’s lowering of its borrowing costs to lift the economy was limited in the near-term.

He said the other underlying concerns were possibilities for a change in the game plan as the fiscal compact are being put in place.

“Also, will the ECB be more dovish, now that fiscal austerity is supposedly taking shape? Could all these be a wishful thinking? Also they may fail to calm the tensions in the financial market.

“Risk of EU seeking funds from BRIC’s cannot be ruled out and will be a slap,” he said.



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KLCI firmly higher at mid-morning

KUALA LUMPUR (Dec 12): The FBM KLCI was firmly higher at mid-morning on Monday, as key regional markets steadied following European policymakers coming to a consensus towards fiscal union.

At 10am, the FBM KLCI rose 11.60 points to 1,471.73.

Gainers led losers by 294 to 96, while 195 counters traded unchanged. Volume was 344.29 million shares valued at RM158.96 million.

Regional markets advanced after twenty-six of the 27 European Union leaders on Friday agreed to pursue stricter budget rules for the single currency area and also to have euro zone states and others provide up to 200 billion euros in bilateral loans to the International Monetary Fund (IMF) to help tackle the crisis, according to Reuters.

Last week, a Reuters report that China planned a new US$300 billion vehicle to invest in Europe and the United States also buoyed investor sentiment, boosting US stocks on Friday.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.49% to 18,862.71, Japan’s Nikkei 225 added 1.32% to 8,649.36, South Korea’s Kospi gained 1.29% to 1,898.91, Taiwan’s Taiex was up 0.19% to 6,975.39, and Singapore’s Straits Times Index gained 0.90% to 2,718.83.

Meanwhile, the Shanghai Composite Index shed 0.41% to 2,305.86.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Dec 12 said the FBM KLCI lost 28.89-points and closed at 1,460.13 last Friday, adding that the local market remained negative in light of the volatile global markets.

He said a drop in the global markets (from last Monday to Friday) led to the softer sentiment for the local bourse, and that some blue chips stocks led the fall in fairly lack lustre trading.

“Although the tone of the global indices has improved somewhat, Eurozone worries on how to tame their debt crisis still persist.

“There could still be inherent and great price volatility in the next two weeks before the global markets wind-down for the Christmas and New Year holidays in late December,” he said.

On Bursa Malaysia, Nestle was the top gainer at mid-morning and rose RM1.90 to RM56.28; Dutch Lady added 58 sen to RM25.50, BAT 54 sen to RM47.84, KLK 28 sen to RM22.56, NSOP 27 sen to RM5.69, Petronas Gas 26 sen to RM14.10, while GAB, PPB, HLFG and Shell gained 20 sen each to RM12.20, RM16.50, RM11.68 and RM9.50 respectively.

Decliners included Lafarge Malayan Cement, Quality Concrete, Shangri-La, South Steel, Triplc and Ekovest, while the actives included Utopia, Compugates, SYF Resources, Flonic and Emico.



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UM Land in JV with Raffles for international school in Johor

KUALA LUMPUR (Dec 12): UNITED MALAYAN LAND BHD [] is teaming up with Raffles Campus Pte Ltd for the proposed development of an international school for use by Raffles as its Johor campus.

It said on Monday UM Land’s unit Seri Alam PROPERTIES [] Sdn Bhd would also sell a piece of freehold land, measuring 19.71 acres, in Plentong, Johor, for RM10.83 million to Raffles.

Elaborating on the deal, UM Land said the shareholders agreement would see both parties setting up a joint venture company, Raffles Campus (Seri Alam) Sdn Bhd to develop an international school for use by Raffles as its Johor campus.

To recap, Raffles is a unit of Singapore’s Strategic TECHNOLOGY [] for Education and Academic Management Pte Ltd which in turn is 70% held by Strategic Foundation Ltd (a not-for-profit organisation).



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