Metrod to gain RM74.5m from disposal of Austria-based unit

KUALA LUMPUR (Dec 27): Metrod (Malaysia) Bhd is set to realise a gain of about RM74.5 million from the disposal of its Austria-based units for RM202.2 million (€49 million).

It said on Tuesday that its wholly-owned subsidiary, Metrod (Singapore) Ptd had entered into an agreement with GEP II Beteiligungs GmbH to dispose ASTA Holdings GmbH and ASTA Elektrodraht GmbH.

ASTA Holdings was incorporated in Austria and is principally an investment holding company, and is a wholly-owned subsidiary of Metrod Singapore.

Meanwhile, ASTA Elektrodraht’s principal activities include functioning as a general partner of the limited commercial partnership, ASTA KG and leasing of premises to ASTA KG. The equity ownership of ASTA Elektrodraht is held by ASTA Holdings and Metrod Singapore in the proportion of 99%:1%.

On the rationale for the disposal, Metrod said it was timely given the challenges faced by Metrod in relation to the businesses of the ASTA Target Group in light of the current volatile and uncertain global economic conditions, increased market competition, threat of recession and deteriorating future outlook.

As for the utilisation of proceeds from the disposal, Metrod said it was still assessing and evaluating plans for the use of the cash proceeds from the Proposed Disposal with the objective of maximising shareholders’ value which may include, but not limited to, the acquisition of viable businesses/assets.



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OSK keeps 'buy' call on Sunway

Sunway Bhd shares gained four sen to RM2.50 with 243,800 shares traded as at 10.20am today after its wholly-owned subsidiary, Sunway Geotechnics (M) Sdn Bhd, secured a RM27.57 million contract from Hap Seng Land Development (JTR) Sdn Bhd.

The contract is for the proposed construction and completion of earthworks and piling for basements one and two and ground floor reinforces concrete structures for a 43-storey service apartment at Jalan Tun Razak, Kuala Lumpur.

OSK Research viewed the contract positively although the size was small relative to the other contracts Sunway had secured earlier in the year.

"More importantly, it was in line with Sunway's intention to focus more on niche and specialised contracts for its construction division following the completion of its merger," it said in a research note today.

Sunway's construction orderbook valued at about RM2.8 billion will last it for at least another 1.5 years.

Nevertheless, it is continuously bidding for more contracts with an order book replenishment target of RM1.5 billion, annually.

"We believe it stands a good chance of securing more contracts from Iskandar Region for next year as well as potential contracts from the KL MRT project, further supported by its good track record," OSK Research said.

It maintained a buy recommendation on Sunway at an unchanged fair value of RM3.31 per share. -- Bernama



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KL shares easier at midmorning

At 10.30 am today, there were 197 gainers, 246 losers and 225 counters traded unchanged on the Bursa Malaysia.

The FBM-KLCI was at 1,493.77 down 2.38 points, the FBMACE was at 4,024.45 down 14.36 points, and the FBMEmas was at 10,235.98 down 17.54 points.

Turnover was at 230.029 million shares valued at RM94.755 million. -- Bernama



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KLCI kicks off year’s final trading week on tepid note

KUALA LUMPUR (Dec 27): The FBM KLCI started the final trading week of the year on a weaker note and fell 4.61 points to 1,491.54 at mid-morning, weighed by select blue chips.

Losers led gainers by 179 to 174, while 194 counters traded unchanged. Volume was 176.78 million shares valued at RM66.23 million.

Asian shares were steady on Tuesday in thin volume as investors took to the sidelines before U.S. markets reopen later in the day from a long weekend and data which could offer clues over growth prospects in the world's largest economy, according to Reuters.

European and some Asian markets, including Hong Kong and Australia, were closed on Tuesday, it said.

At the regional markets, Japan’s Nikkei 225 fell 0.52% to 8,435.63, the Shanghai Composite Index shed 0.06% to 2,188.82, Taiwan’s Taiex lost 0.52% to 7,055.82, South Korea’s Kospi fell 0.74% to 1,843.03 and Singapore’s Straits Times was down 0.26% to 1,492.21.

BIMB Securities Research in a note Dec 27 said the Eurozone enjoyed a temporary reprieve as traders and investors alike were in holiday mood ahead of Christmas and 2012, adding that global equities continued with their uptick as European bourses have all registered positive gains.

Buoyed by improved US economic outlook and absence of nasty news, the Dow Jones Industrial Average jumped 124 points to close at almost 12,300, it said.

However, the research house said that surprisingly, the feel good factor did not entirely cascade down to Asian bourses as the region markets ended rather mixed.

“As for Malaysia, the FBMKLCI continued with its uptrend and is within touching distant of the 1,500 mark.

“We reckon trading would be lacklustre over the next few days and will be interesting to see if the benchmark index is able to break the psychological 1,500 looking forward. We are sticking our necks out that it will,” it said.

On Bursa Malaysia, BAT was the top loser at mid-morning and was down 20 sen to RM49; PPB fell 18 sen to RM16.80, Genting PLANTATION []s down 16 sen to RM8.25, JT International 13 sen to RM6.86, Petra Energy and Hong Leong Bank fell eight sen each to RM1.05 and RM10.86, Harvest Court seven sen to RM1.06 while Daibochi and Shangri-La fell six sen each to RM2.58 and RM2.38.

Gainers included Nestle, HLFG, AIC, TDM, F&N. GAB, United Plantations, Kretam and Boustead, while the actives included Proton, Vastalux, Marco, Envair and Utopia.



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Sunway edges up on getting RM27.57m job from Hap Seng Land

KUALA LUMPUR (Dec 27): SUNWAY HOLDINGS BHD [] shares edged up on Tuesday after its unit secured a contract worth RM27.57 million from Hap Seng Land Development (JTR) Sdn Bhd for the CONSTRUCTION [] of pilings, basement and ground floor for one block of 43-storey service apartment at Jalan Tun Razak, KL.

At 9.48am, Sunway was up three sen to RM2.49 with 87,000 shares traded.

Sunway said on Friday that its wholly-owned subsidiary Sunway Construction Sdn Bhd’s unit Sunway Geotechnics (M) Sdn Bhd had been awarded the contract.

The company said the project was targeted for completion by Dec 12, 2012, and was expected to contribute positively to its earnings for the financial year ending Dec 31, 2012 onwards.



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Ingress Corp up on landing Proton contract

KUALA LUMPUR (Dec 27): INGRESS CORPORATION BHD [] shares advanced on Tuesday after it received a letter of acceptance from Perusahaan Otomobil Nasional Sdn Bhd (Proton) with a total value of RM84.8 million over a period of five years to supply parts for new Proton models.

At 9.35am, Ingress was up 3.5 sen to 78 sen with 109,400 shares traded.

The company said on Friday its 90%-owned subsidiary Ingress Precision Sdn Bhd had been contracted to supply door sash.

Meanwhile, its wholly owned unit Ingress Engineering Sdn Bhd (IESB) would supply roof drip moulding and beltline moulding, it said.



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Ingress rises on Proton parts supply deal

Ingress Corp, a Malaysian auto-parts supplier, rose to a six-week high in Kuala Lumpur trading after winning an RM84.8 million contract to supply parts for new Proton Holdings Bhd vehicles.

The stock advanced 4.7 percent to 78 sen at 9:02 a.m. local time, set for its highest close since Nov. 14. -- Bloomberg



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SCAN advances after buying 2 firms

SCAN Associates Bhd rose the most in seven months in Kuala Lumpur trading after agreeing to buy two companies for RM98 million as part of a reverse takeover.

The stock gained 35 percent to 13.5 sen at 9:07 a.m. local time, set for its steepest increase since May 13. -- Bloomberg



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