Gopeng jumps 12% on dividend news

KUALA LUMPUR (April 6 ) : GOPENG BHD [] shares rose as much as 12% on Friday morning following the builder’s announcement that it plans to reward shareholders with a final dividend of 9.8 sen (less 25% tax) a share for the year ended Dec 31, 2011.

Gopeng added 8.5 sen to an intraday high of 80.5 sen at 10.33am. The company said the dividend is subject to shareholders' consent at its annual general meeting in May this year.



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KLCI up 5pts in morning trade

KUALA LUMPUR (April 6) : The FBM KLCI rebounded on Friday morning following two consecutive days of losses as investors weigh global economic prospects in Europe and the US, against pre-election sentiment in Malaysia.

In technical terms, analysts said the FBM KLCI has touched its lower support trend line, and a break below that level could add downward pressure on the equity gauge.

“Nevertheless, the overall trend of the FBM KLCI still remained up. As the total volume continued to dwindle, the overall market is likely to remain in a consolidation mode with some penny stocks in rotational play,” SJ Securities Sdn Bhd wrote in a note.

The stock barometer added 5.02 points to 1,598.46 at 10am with some 237 million shares worth RM111 million changing hands. There were 206 gainers versus 119 declining stocks.

Top gainers BRITISH AMERICAN TOBACCO (M) [] Bhd rose 70 sen to RM55.68 while TRADEWINDS (M) BHD [], was up 18 sen to RM9.97.

Decliners KUALA LUMPUR KEPONG BHD [] fell 10 sen to RM24.50 while HWANG-DBS (M) BHD [] was down seven sen to RM2.41.

Most active was Naim Indah Corp Bhd which added two sen to 50.5 sen with some 37 million shares done.

Among Asian equity benchmarks, Japan’s Nikkei 225 fell 0.52% to 9,716.39 points while South Korea’s Kospi declined 0.07% to 2,027.35.

The Hong Kong and Australian bourses are closed on Friday and next Monday for the Good Friday and Easter holiday season. Singapore and US markets are not traded on Friday.



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Maybank IB Research upgrades Tan Chong to Buy

KUALA LUMPUR (April 6): Maybank Investment Bank Bhd Research has upgraded TAN CHONG MOTOR HOLDINGS BHD [] to a Buy with a revised target price of RM5.38, ahead of an anticipated sector recovery in 2H 2012.

In a note Friday, the research house said that this followed a 17-18% rise in 2012-13 net profit forecasts, on higher vehicle sales assumptions (+9-21%).

“We reckon the disruption to the regional parts supply chain, margin weakness and poor Jan-Mar 2012 performance have all been priced in. Our TP (+35%), premised on 10x 2013 PER (previously 8x), offers 20% upside.

“Our re-rated PER target reflects improved optimism ahead,” it said.



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KLCI edges up in early trade in thin volume

KUALA LUMPUR (April 6): The FBM KLCI edged up in early trade on Friday, while regional markets eased with many bourses closed for the Good Friday and Easter weekend.

The FBM KLCI rose 0.67 of a point to 1,594.11 at 9.01am, liftedby elect ble chips.

Gainers led losers by 59 to 16, while 90 counters traded unchanged. Volume was 19.28 million shares valued at RM7.29 million.

Asian shares eased on Friday, when many markets were closed for the Easter holiday, as investors stayed on the sidelines ahead of key U.S. jobs data, avoiding risk after rising yields in weaker euro zone countries refuelled concern about Europe, according to Reuters.

Worries about Spain's rising bond yields were somewhat offset, however, by fresh U.S. data on Thursday that provided more evidence of a recovering labour market, raising the prospect for the non-farm payrolls report due later on Friday to be solid, it said.

Thursday's data showed U.S. jobless claims fell to the lowest level since April 2008, another positive news following a report on private-sector jobs earlier this week, boding well for the American government's widely watched monthly employment figures due on Friday, said Reuters.

Among the early gainers on Bursa Malaysia, BAT rose 70 sen to RM55.60, Petronas Dagangan added 14 sen to RM18.98, Favelle Favco roe seven sen to RM1.44, Lafarge Malayan Cement and Gopeng six sen each to RM7.13 an 78 sen, Takaful four sen to RM3.74, Hibiscus three sen to RM1.71, Ideal Jacobs 2.5 sen to 19.5 seb and Petra Energy two sen to RM1.08.

Naim Indah Corp was the most actively traded counter with 6.4 million shares done. The stock added half a sen to 49 sen.

Other actives included AirAsia, Jetson, CSL, Tiger Synergy, DBE Gurney and DPS.

Decliners included Airasia, Jetson, CSL, Tiger Synergy, DBE Gurney and DPS.



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CIMB Research maintains Trading Buy on UOA Development Bhd, target price RM1.84

KUALA LUMPUR (April 6): CIMB Research has maintained its Trading Buy recommendation on UOA Development Bhd at RM1.4 with a target price of RM1.84, and said its visit and showroom tour of the company reaffirmed its positive view on UOA Development.

The research in a note Friay said UOA Development’s 1Q new sales of over RM300 million put the company firmly on the path to meet, if not exceed, its full-year target of RM1 billion.

Due to the depressed share price, UOA Dev’s valuations are among the cheapest in our property coverage.

“Its P/Es are the lowest while its dividend yields are the highest. We maintain our Trading Buy call and target basis of 30% discount to RNAV,” it said.



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Stocks to Watch Jaya Tiasa, Gopeng, Xian Leng

KUALA LUMPUR (April 2): Malaysian equities could exhibit further weakness on Friday in anticipation of less trading volume during the Good Friday and Easter holiday season.

Analysts said weaker technical indicators for equities, and fresh concerns on a protracted European sovereign debt crisis could result in more volatility for the FBM KLCI ahead of Malaysia's general election.

The FBM KLCI fell 5.83 points to finish at 1,593.44 points on Thursday.

Stocks to watch on Friday include JAYA TIASA HOLDINGS BHD [], TA ANN HOLDINGS BHD [], GOPENG BHD [], FAVELLE FAVCO BHD [], and XIAN LENG HOLDINGS BHD [].

Jaya Tiasa, a PLANTATION [] and timber entity, rose as much as 2.7% or 24 sen to RM9, ahead of the ex-date for its treasury shares on Friday.

Ta Ann climbed as much 3% or 18 sen to RM6.38, after Maybank Investment Bank Bhd initiated coverage on the timber player with a buy call and fair value of RM8.

Gopeng, a builder, plans to reward shareholders with a final dividend of 9.8 sen, less 25% tax.

Crane builder Favelle Favco has secured five contracts with a combined value of about RM102.1 million.

The special audit on Xian Leng revealed financial irregularities in its fish farm development capital expenditure amounting to RM90.7 million, of which a total of RM85.7 million was disbursed under "questionable circumstances". Trading of Xian Leng shares, which has been suspended, will resume on Friday.



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PwC : Irregularities in Xian Leng’s accounts

KUALA LUMPUR (April 5) : The special audit on XIAN LENG HOLDINGS BHD [] revealed financial irregularities in its fish farm development capital expenditure amounting to RM90.7 million of which a total of RM85.7 million was disbursed under "questionable circumstances".

In a statement to the exchange on Thursday, Xian Leng which undertakes commercial breeding of ornamental fish, said the auditor PricewaterhouseCoopers Advisory Services Sdn Bhd (PwC), had disclosed that there was lack of evidence that the RM85.7 million portion was paid to four contractors, as indicated in Xian Leng's records during financial years 2005 to 2008.

According to the audit findings, the cheque payments were authorised by on Xian Leng managing director Ng Huan Tong, while signatories to the cheques were two former board members: Chua Chong Seng and Lim Wan Hong.

Lim is the spouse of Ng, who had voluntarily resigned from his position last Tuesday as PwC finalised its investigation. Xian Leng said its board is deliberating on the next course of action, which may include lodging a police report.



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Favelle Favco clinches RM102 million worth of contracts

KUALA LUMPUR (April 5) : Crane builder FAVELLE FAVCO BHD [] has secured five contracts with a combined value of about RM102.1 million.

In a statement to the exchange on Thursday, Favelle Favco said the purchase orders received in March and April this year involve tower and offshore cranes for local and foreign clients. The cranes are due for delivery in 2012 and 2013, according to Favelle Favco.

The company said the jobs are expected to contribute positively to its earnings for the current financial year ending Dec 31, 2012 and beyond.

Favelle Favco shares added one sent to RM1.37 on Thursday.



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