Toyo Ink extends losses, more details of US$2.5b power plant needed

KUALA LUMPUR (Dec 12): Shares of TOYO INK GROUP BHD [] fell to RM1.60 on Monday, extending its losses from last Friday as investors turned cautious about the return on investment from the US$2.5b coal-fired thermo power plant power plant in Vietnam.

At 3.04pm, it was down seven sen to RM1.60, off the day’s high of RM1.80. There were 28,000 shares done.

However, the 30-stock FBM KLCI was up 10.69 points to 1,470.82. There were 1.05 billion shares done valued at RM601.71 million. There were 350 gainers, 288 losers and 298 stocks unchanged.

Last Friday, Toyo Ink said it planned to finance the US$2.5b coal-fired thermo power plant power plant in Vietnam from a corporate exercise and also through borrowings.

Since the project involved a massive capital outlay, the company said it would consider raising certain portion of the project capital via corporate exercise and then funding the balance through borrowings.

Toyo Ink said it would also seek equity partnerships to incorporate a joint venture company in Vietnam.



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Celcom, Broadcast Australia in digital TV transmission network venture

KUALA LUMPUR (Dec 12): Celcom Axiata Bhd and Broadcast Australia are teaming up to set up a nationwide digital television transmission network in Malaysia.

The two parties signed the agreement on Monday which would enable them to bid for projects in the design, CONSTRUCTION [] and long term operation of digital TV infrastructure.

Celcom chief executive officer Datuk Seri Shazalli Ramly said Celcom had been seeking to diversify its business and this partnership was the first step towards achieving that objective.

“This collaboration lowers the risk for such a crucial and large national project, with both partners having a proven track record and easy access to the required funding," he said.



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KL shares firmer at mid-day

Share prices on Bursa Malaysia ended the morning session in positive territory today with continued gains seen in selected bluechips, dealers said.

At 12.30pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) was up 11.72 points to 1,471.85, after opening 3.6 points higher at 1,463.73.

A dealer said the uptrend on the local bourse was in line with key regional markets, following a firmer overnight close on Wall Street as well as positive sentiment from the European region.

Risk appetite also improved on fresh optimism that the eurozone debt crisis could be contained after the pact reached by the European countries for deeper economic integration and a proposal to increase the rescue fund's size.

The Finance Index rose 120.271 points to 13,061.16 and the Plantation Index jumped 58.41 points to 7,919.1 while the Industrial Index added 11.1 points to 2,661.06.

The FTSE Bursa Malaysia Emas Index increased 74.141 points to 10,073.69, the Ace Index gained 15.45 points to 4,189.9 and the Mid 70 Index went up 79.14 points to 10,994.85.

Gainers led losers 336 to 250 while 290 counters were unchanged with 601 untraded and 18 others suspended. Trading volume stood at 874.853 million shares valued at RM493.640 million.

For the actives, 1 Utopia Bhd-WA and 1 Utopia Bhd were unchanged at five sen and 11.5 sen respectively, Proton Holding - CG went up five sen to 36 sen and LFE Corp Bhd perked 4.5 sen to 27 sen while Compugates Holdings Bhd lost a sen to six sen.

Among heavyweights, Maybank added three sen to RM8.18, CIMB rose 11 sen to RM7, Sime Darby climbed a sen to RM8.91, Petronas Chemicals increased nine sen to RM6.09 and Tenaga Nasional Bhd gained three sen to RM5.56. -- Bernama



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DRB-Hicom best buyer for Proton stake: Mahathir

DRB-Hicom Bhd, a Malaysian automobile assembler controlled by billionaire Syed Mokhtar Shah Al-Bukhary, is the best potential buyer for Khazanah Nasional Bhd’s 43 percent stake in carmaker Proton Holdings Bhd, former Prime Minister Mahathir Mohamad said.

Khazanah has yet to select a buyer, said Mahathir, who is an adviser to Proton. A new shareholder would need to invest fresh funds to develop new products, so the stake should be sold at a “reasonable” price, he said in a joint interview today in Putrajaya, outside of Kuala Lumpur. -- Bloomberg



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NSOP advances as dividend of 24 sen per share goes ex

KUALA LUMPUR (Dec 12): Share price of NEGRI SEMBILAN OIL PALMS BHD [] (NSOP) rose on Monday as its second interim dividend of 24% or 24 sen per share went ex.

At midday, it was up 20 sen to RM5.62 with 1,000 shares done.

The FBM KLCI rose 11.72 points to 1,471.85. Turnover was 874.85 million shares valued at RM493.64 million. There were 336 gainers, 250 losers and 290 stocks unchanged.



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Banks, select blue chips lift KLCI at mid-day

KUALA LUMPUR (Dec 12): The FBM KLCI rose 0.80% at the mid-day break on Monday, in line with most key regional markets that advanced after a European leaders’ summit over the weekend offered a glimmer of hope of a solution to the eurozone debt crisis.

Analysts however said that the deal reached at the summit was not an adequate measure the address the region’s long-term debt crisis.

The FBM KLCI was up 11.72 points to 1,471.85, lifted by gains at banking stocks and select blue chips.

Gainers led losers by 336 to 250, while 290 counters traded unchanged. Volume was 874.85 million shares valued at RM493.64 million.

The ringgit weakened 0.14% to 3.1518 versus the US dollar; crude palm oil futures for the third month delivery lost RM34 per tonne to RM3,052, crude oil fell 12 cents per barrel to US$99.29 while gold slumped US$17.45 an ounce to US$1,694.15.

MIDF Research chief economist Anthony Dass in a note Monday said he was fairly sceptical over the outcome although he acknowledged that there had been progress.

However, he cautioned that there still remained inadequate satisfactory resolution over the debt crisis.

“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.

At the regional markets, Japan’s Nikkei 225 rose 1.63% to 8,675.54, Hong Kong’s Hang Seng Index gained 1.42% to 18,850.70, South Korea’s Kospi was up 0.92% to 1,891.96, Singapore’s Straits Times Index added 0.75% to 2,714.86 and Taiwan’s Taiex edged up 0.67% to 6,939.55.

Meanwhile, the Shanghai Composite Index shed 0.45% to 2,304.80.

On Bursa Malaysia, the gainers were led by Dutch Lady that rose 98 sen to RM25.90; Nestle was up 62 sen to RM55, GAB 42 sen to RM12.42, KLK 28 sen to RM22.56, Proton 27 sen to RM4.26, Shell 21 sen to RM9.51 while PPB, NSOP and Inno gained 20 sen each to RM16.50, RM5.62 and RM1.50 respectively.

Among banks, RHB Capital rose 15 sen to RM6.95, AMMB 14 sen to RM5.88, CIMB 11 sen to RM7, Public Bank, Hong Leong Bank and HLFG added six sen each to RM12.68, RM11.54 and RM10.68 respectively, Maybank three sen to RM8.18 while Affin added two sen to RM2.81.

Decliners this morning included Lafarge Malayan Cement, APM Automotive, Quality Concrete, Tahps, Suria, Malpac, DKSH and Lingui.

The actives included Utopia, Proton, Compugates, LFE Corp, Flonic, Sersol and SYF Resources.



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Infortech Alliance sells 25% stake in Shanghai associate

KUALA LUMPUR (Dec 12): INFORTECH ALLIANCE BHD [] is selling a 25% stake in Shanghai Infortech Software Development Co. Ltd -- which develops computer software and provides support services -- for RM572,000 to its major shareholder, who is a Chinese national.

It said on Monday it had signed a conditional share sale agreement with Luo Xin – who currently holds a 70% stake in Shanghai Infortech – to dispose of its 25% stake for RM572,000 or RM4.54 per share.

Infortech Alliance said the pricing was reasonable as it was a premium of RM2.665 or about 142% above the audited net asset per share of RM1.876.

It said Shanghai Infortech develops, sells and provides support for convenience store management software and human resource management software. Most of the customers are Japanese companies based in China.



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Maybank’s Fortune8 closed-end fund targets RM300m investments

KUALA LUMPUR (Dec 12): MALAYAN BANKING BHD []’s closed-end fund Fortune8, targets RM300 million in sales when the fund closes on Dec 31, 2011.

It said on Monday the Fortune8 is a single premium and capital guaranteed investment-linked insurance plan. It is a closed-end three-year, six-month investment-link plan.

The fund provides a guaranteed investment return and capital protection on the investment with additional potential upside return from the performance of commodity prices.

Maybank deputy president and head of community financial services Lim Hong Tat said Fortune8 provided potential upside return apart from guaranteeing 100% of the capital on maturity and paying a 5% guaranteed cash payout at the end of the 18th policy month.

“Customers can start investing with a minimum investment of RM15,000 and additional investments in multiples of RM1,000,” he said.

“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 short term effects of inflation while providing capital appreciation,” he said.

Fortune8 investors can choose to invest in commodities like energy, precious metals, industrial metals, agriculture and livestock.

Lim said Fortune8 was 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 Fortune8 will provide them the confidence to invest even in volatile market conditions,” he added.



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