Pelikan disposes of associate company

Pelikan Holding AG (PHAG) has signed a heads of agreement with Columbia Products Pty Ltd to dispose of its associate company, Columbia Pelikan Pty Ltd (Pelikan Australia), for A$15 million (RM48.17 million) cash.

In a statement today, Pelikan International Corp Bhd (Pelikan) said the disposal was in line with the group's plan to divest non-core assets and the monetise such type of investments.

"Pelikan Australia is an associate of PHAG and the management does not participate in the day-to-day operations and strategic direction of the company," it said.

Pelikan president/chief executive officer, Loo Hooi Keat, said the focus of Pelikan was on capitalising on distribution, branding, research and development.

"In addition to this, it will pursue divestments strategies of non-core assets to unlock the cash values and keep the group asset light," he said.

Pelikan was suspended from trading for about an hour this morning. Trading was resumed at 10am.

As at 12.18pm, the shares slipped half sen to 75.5 sen with 70,400 units traded.

PHAG is 96.45 per cent-owned unit of Pelikan.

Pelikan Australia is principally engaged in the production and distribution of stationery and office products. -- BERNAMA



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KLCI extends gains at mid-day as Asian markets rise

KUALA LUMPUR (Dec 23): The FBM KLCI extended its gains at the mid-day break on Friday, in line with its regional peers ahead of more economic data coming out from the US later today, as most global markets head for an extended weekend with the Christmas break.

At 12.30pm, the FBM KLCI was up 3.30 points to 1,494.76.

Gainers led losers by 304 to 279, while 320 counters traded unchanged. Volume was 451.74 million shares valued at RM363.87 million.

The ringgit strengthened 0.30% to 3.1565 versus the US dollar; crude palm oil futures for the third month delivery rose RM32 per tonne to RM3,129, crude oil was up 20 cents per barrel to US$99.73 and gold added US$4.75 an ounce to US$1,610.30.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.08% to 18.576.06, the Shanghai Composite Index gained 1.45% to 2,218.01, Taiwan’s Taiex added 2.14% to 7,115.13, South Korea’s Kospi rose 1.19% to 1,869.45 and Singapore’s Straits Times Index edged up 0.35% to 2,674.11.

On Bursa Malaysia, Nestle and BAT rose 30 sen each to RM56.90 and RM48.18, AIC was up 15 sen to RM1.30, MAHB 13 sen to RM5.59, while KLK, UMW, Esso, Genting and IJM rose 10 sen each to RM22.10, RM6.55, RM3.51, RM10.86 and RM5.52 respectively.

Among the decliners, Tasco, Shell and PPB fell 10 sen each to RM1.55, RM9.20 and RM17 respectively; HELP and Public Bank lost six sen each to RM1.65 and RM13.20, Huat Lai and WCT fell five sen each to RM2.30 and RM2.25, while Bina Goodyear was down 4.5 sen to 60 sen.

The actives included Perisai, Astral Supreme, Sanichi, UEM Land, Envair, KNM and Utopia.



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Chin Well expects to sustain overseas revenue stream, says MD

KUALA LUMPUR (Dec 23): CHIN WELL HOLDINGS BHD [] expects to sustain overseas revenue contribution going forward, and focus on expanding its market share in Europe as well as emerging Asia and North America, said its managing director Tsai Yung Chuan.

He said whilst the company would take advantage of the European Union’s (EU) listing of Chin Well as one of the 8 Malaysian companies exempted from import duty, it will not ignore markets in emerging Asia as well as North America.

The manufacturer of carbon steel fasteners exports its screws, bolts, and nuts to 39 countries in 5 continents.

Tsai said that over the years, the company had exported to an increasing number of countries in Europe, Asia, and North America, and more than doubled its overseas revenues to about RM400 million in just 5 years.

“Our market development strategy has indeed solidified the group’s position as the leading player in Malaysia and South East Asia,” he said in a statement Friday.

Tsai said Chin Well’s export revenues contributed about 78% to the Group’s revenue of RM502.6 million in FY2011, versus 56% in FY2006.

He said the company intended to increase our man-hour capacity, in addition to improving our cost efficiency to maintain price competitive as part of developing its new markets.

Chin Well’s total workforce currently stands at 1,080 in both facilities in Bukit Mertajam, Penang, and Nhon Trach District, Vietnam.

Tsai said the company plans to increase the workforce by 10% in the current financial year in order to cope with the increased demand for fasteners.

He said the company did not expect heavy investment in capital expenditure in the near term, since it had ample production capacity in both facilities in Penang and Vietnam, both of which were operating at about 60% utilisation rates.

In July 2011, the EU listed Chin Well as one of eight Malaysian fastener manufacturers exempt from the 85% anti-dumping duty for exports to Europe, in an attempt to circumvent transhipment of China-made fasteners through Malaysia-based fastener producers.

The EU had earlier in January 2009 imposed a five-year tariff of up to 87.5% on imports of China-made fasteners to Europe, in an attempt to reinstate fair competition in global market.



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FBM KLCI up at mid-morning, but stays shy of 1,500-level

KUALA LUMPUR (Dec 23): The FBM KLCI rose on Friday and stayed in positive territory in line with regional markets and the overnight gains at Wall Street, but stayed shy of the crucial 1,500-level in thin trade.

The FBM KLCI was up 2.77 points to 1,494.23 at 10am, lifted by gains at select blue chips.

Gainers led losers by 223 to 126, while 213 counters traded unchanged. Volume was 198.4 million shares valued at RM105.92 million.

Asian stocks edged up on Friday, as signs of a strengthening economy in the United States encouraged a modest year-end rally in riskier assets, according to Reuters.

Wall Street stocks had risen for a third straight day on Thursday, leaving the S&P 500 index virtually flat for the year, after data showed new claims for unemployment benefit dropped to their lowest in 3-1/2 years, it said.

At the regional markets, Hong Kong’s Hang Seng Index rose 1.11% to 18,582.37, Taiwan’s Taiex gained 1.62% to 7,079.36, South Korea’s Kospi added 1.15% to 1,868.69, Singapore’s Straits Times Index was up 0.38% to 2,674.83 and the Shanghai Composite Index edged up 0.14% to 2,189.33.

Meanwhile, Japan’s stock markets were closed for a national holiday.

BIMB Securities Research in a note Dec 22 said better than expected job data in the US and higher than expected injection of funds by the ECB had positive cumulative impact on the equity markets all round.

Consequently European bourses registered an all round gain of around 1% whilst the Dow Jones Industrial Average climbed 62 points to remain above the 12,000 mark, it said.

The research house said it looked like focus on the Eurozone had been diverted temporarily in light of the tension in the middle-east where crude prices were again pushed nearer to the US$100/barrel again.

In Asia, regional markets closed on a mixed note from the lack of fresh leads, it said.

“As for Malaysia, the FBM KLCI is inching ever closer to the psychological 1,500 mark with a 6.5 point gain. Although we believe selective buying on blue chips to continue, the extended weekend may thwart any aggressive push on the upside.

“Nonetheless, we remain sanguine that the index to breach the 1,500 level,” it said.

Among the gainers, Nestle was up 30 sen to RM56.90, BAT added 26 sen to RM48.14, AIC 15 sen to RM1.30, Dutch Lady and CIMB 10 sen each to RM23.40 and RM7.10, KLK and Hai-O up eight sen each to RM22.08 and RM1.90, while CCM and Muhibbah rose seven sen each to RM1.49 and RM1.15.

Perisai was the most actively traded counter with 9.53 million shares done. The stock added 4.5 sen to 73 sen.

Other actives included Astral Supreme, Sanichi, Envair, Utopia, UEM Land, LFE Corp and KNM.

Decliners included Y&G, Bina Goodyear, HELP, Kretam, Scomi Engineering, MESB, WCT and Bernas.



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KL shares open slightly steadier

Share prices on Bursa Malaysia opened slightly higher in early trade prompted by window dressing activities as investors sought after quality stocks for their portfolio, dealers said.

Four minutes after the market opened, the FTSE Bursa Malaysia KLCI (FBM KLCI) was 3.11 points higher at 1,494.57, pushed by gains seen in selected heavyweights.

The Finance Index improved 37.03 points to 13,406.99, the Plantation Index edged up 0.84 of a point to 7,924.09 while the Industrial Index slipped 1.3 points to 2,665.38.

The FBM Emas Index rose 11.73 points to 10,226.66, the FBM Mid 70 Index added 10.76 points to 11,427.23, the FBMT100 increased 18.67 points to 10,059.20 while the FBM ACE Index declined 9.22 points to 4,018.58.

Gainers led losers 80 to 35 while 93 counters were unchanged.

Turnover amounted to 259,601 lots worth RM13.449 million.

Among the active counters, Perisai added 4.5 sen to 73 sen but AsiaEP eased half-a-sen to 6.5 sen and Envair shed 2.5 sen to 24 sen.

Among the heavyweights, Maybank rose three sen to RM8.48, Sime Darby perked one sen to RM9.01 and CIMB increased seven sen to RM7.07. -- Bernama



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MQ jumps after Thai factory resumes ops

MQ Technology Bhd, a Malaysian maker of high-precision moulds and hard-disk drive components, rose to the highest level in almost two weeks in Kuala Lumpur trading after saying its Thai factories resumed operations after flooding.

The stock jumped 12 per cent to 9.5 sen at 9:30 a.m. local time, set for its highest close since Dec. 12. -- Bloomberg



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Perisai Petroleum rises on profit report

Perisai Petroleum Teknologi Bhd, a Malaysian oil and gas services provider, rose to a four-month high in Kuala Lumpur trading after the Edge reported that the company expects to see annual profit contributions of at least US$16.7 million from its acquisition of Garuda Energy (L) Ltd.

The stock gained 5.1 per cent to 72 sen at 9:29 a.m. local time, set for its highest close since Aug. 5 -- Bloomberg



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RHB Research downgrades construction sector to Neutral from Overweight

KUALA LUMPUR (Dec 23): RHB Research Institute Sdn Bhd has downgraded its recommendation for the CONSTRUCTION [] sector to Neutral from Overweight.

In a note Friday, the research house said investors’ confidence and comfort level that the Klang Valley MRT project would start work soon was being chipped away by further delays in the roll-out of certain already long-overdue large-scale projects.

Even if the Klang Valley MRT project is to start work as scheduled, initial progress is likely to be painfully slow due to bureaucratic hurdles, it said.

There is generally a lack of credible new large-scale projects in the pipeline, it said.

“Gamuda and Fajarbaru are downgraded to Market Perform from Outperform.

“No changes in Outperform for TRC, HSL and Eversendai, Trading Buy for MRCB, Market Perform for WCT and Underperform for IJM,” said RHB Research.



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