Tuesday, 17 April 2012

KLCI succumbs to global economic woes

KUALA LUMPUR (APRIL 17): The FBM KLCI succumbed to the mounting concerns over the euro zone sovereign debt crisis that kept most regional markets in negative territory on Tuesday.

The FBM KLCI closed 1.32 points lower at 1,596.19.

Gainers edged losers by 355 to 341, while 351 counters traded unchanged. Volume was 2.08 billion shares valued at RM1.63 billion.

Hong Kong shares fell on Tuesday, dragged lower by large-cap bank and materials shares as nervous investors awaited a bond auction which could see a further jump in Spain's borrowing costs, threatening a new crisis in the euro zone, according to Reuters.

On the mainland, the Shanghai Composite fell 0.94% to 2,334.98, while the CSI300 index was off 1.3 percent, it said.

Elsewhere, Hong Kong’s Hang Seng Index fell 0.23% tyo 20,562.31, Japan’s Nikkei 225 shed 0.06% to 9,464.71, Taiwan’s taiex lost 1.86% to 7,585.87, South Korea’s Kospi down 0.37% to 1,985.30 and Singapore’s Straits Times Index shed 0.18% to 2,986.59.

Among the decliners on Bursa Malaysia, Dutch Lady fell 56 sen to RM34.60, Warisan down 30 sen to RM2.33, Tahps fell 27 sen to RM4.53, BAT lost 22 sen to RM54.46, SMPC 21 sen to RM1.12, MISC 13 sen to RM5.17, while KLuang and Ta Ann fell 12 sen each to RM2.68 and RM6.57.

Ariantec Global was the most actively traded counter with 515.66 million shares done. The stock jumped 8.5 sen to 20 sen. It had earlier been issued an unusual market activity (UMA) query by Bursa Malaysia Securities Bhd to Ariantec Global Bhd over the sharp rise in the price and high volume in the company’s shares recently.

Other actives included Metronic, Focus, Astral Supreme, Ingenuity Solutions, SuperComNet, CSL, Naim Indah Corp and Winsun.

Meanwhile, the gainers on Tuesday included SAM Engineering, Carlsberg, CSL, Subur Tiasa, Y&G, Golsta, Southern Acids, Rapid, Manulife and The Store.



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SMPC rights shares hit limit-down

KUALA LUMPUR (April 17) : Securities of SMPC Corp Bhd were among the most actively-traded and major decliners on the maiden trading day of the steel manufacturer’s rights units on Tuesday. The stock went ex-rights last Thursday.

SMPC’s rights issue of new shares (SMPC-OR) fell as much as 61% or 30 sen to settle at 19.5 sen at lunch break while the irredeemable convertible unsecured loan stocks (ICULS) which are traded as SMPC-LR fell as much as 90% or 4.4 sen to settle at 0.5 sen.

Meanwhile, SMPC shares declined as much as 26% to 98 sen before settling higher at RM1.08.

SMPC is undertaking a renounceable rights issue of up to 19.39 million new shares with 9.7 million free warrants on the basis of six rights units and three warrants for every two existing shares held.

The company is also implementing a renounceable rights issue of up to RM19.39 million worth of zero-coupon, 10-year ICULS with 9.7 million free warrants on the basis of RM6 worth of ICULS and three warrants for every two existing shares held.

In conjunction with the rights issue, SMPC implemented a capital reduction where it cancelled 90 sen from each existing share of RM1 and, subsequently, consolidated 10 units of 10 sen shares into one share of RM1.



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Bursa queries Ariantec

KUALA LUMPUR (April 17): Bursa Malaysia Securities Bhd has issued an unusual market activity (UMA) query to Ariantec Global Bhd over the sharp rise in the price and high volume in the company’s shares recently. Ariantec was the most actively traded stocks in the morning session on Tuesday on Bursa Malaysia with 315.47 million shares done. The stock rose 5.5 sen to 17 sen.



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CIMB to update “soon” on Philippines Bank of Commerce stake buy, says Nazir

KUALA LUMPUR (APRIL 17): CIMB Group Holdings Bhd chief executive Dato' Sri Nazir Razak said the company would announce an update on the potential acquisition of a stake in Philippines' Bank of Commerce (BoC) "soon". Speaking after the banking group’s AGM this here, he said negotiations were ongoing and that foreign ownership in Philippine banks was capped at 60%.



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KLCI struggles to breach 1,600-mark

KUALA LUMPUR (APRIL 17): The FBM KLCI stayed in positive territory in the morning session on Tuesday, but struggled to breach the 1,600-point mark as regional markets mostly retreated on mounting concerns over the euro zone sovereign debt crisis.

Asian shares were capped while the euro fell on Tuesday, as soaring Spanish borrowing costs underscored the fading impact of the European Central Bank's bond purchases and stoked investor nervousness over euro zone debt woes, according to Reuters.

The FBM KLCI was up 0.69 of a point to 1,598.20 at the mid-day break.

Gainers trailed losers by 283 to 278, while 322 counters traded unchanged. Volume was 1.2 billion shares valued at RM669.23 million.

The ringgit strengthened 0.03% to 3.0665 versus the greenback, crude palm oil futures for the third month delivery fell RM2 per tonne to RM3,485, crude oil was unchanged at US$102.93 per barrel while gold fell US$2.63 an ounce to US$1,649.25.

At the regional markets, Japan’s Nikkei 225 edged up 0.11% top 9,480.84 while Taiwan’s Taiex fell 1.61% to 7,605.13, Hong Kong’s hang Seng Index lost 0.58% to 20,490.90, Singapore’s Straits Times Index was down 0.39% to 2,980.57, South Korea’s Kospi shed 0.30% to 1,986.75 and the Shanghai Composite Index inched down 0.18% to 2,352.72.

Mybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Tuesday said the FBM KLCI dropped 5.61 points to close at 1,597.51 on Monday.

“Its resistance areas of 1,597 and 1,609 may cap market gains, whilst the obvious support areas are located at 1,580 and 1,594,’ he said.

He said despite the US markets’ mixed tone last night, Bursa Malaysia could be in for a low-volume trading day.

“From the 1,310.53 low (Sept 2011), the market has surged past its previous resistance of 1,597.08 to stall at 1,600.33 (On April 3).

“Bearish divergence is ample and investors may liquidate on rallies,” he said.

SAM Engineering was the top gainer in the morning session and rose 41 sen to RM3.60, Hartalega added 16 sen to RM8.12, CSL 14 sen to RM1.62, Far East and Subur Tiasa gained 10 sen each to RM7.60 and RM2.73, Rapid nine sen to RM2.54, Carlsberg eight sen to RM10.90, MBSB and Lafarge Malayan Cement gained seven sen each to RM2.23 and RM7.29, while Golsta was up 6.5 sen to 59.5 sen.

Among the decliners, Dutch Lady fell 46 sen to RM23.70, SMPC fell 25 sen to RM1.08, Nestle down 16 sen to RM55.84, Sarawak Oil Palms lost 13 sen to RM6.81, Iretex 12 sen to RM1, Knusford and Bintulu Port fell 10 sen each to RM1.80 and RM6.90, while MalPac and Ta Ann lost nine sen each to RM1.49 and RM6.60.

Ariantec was the most actively traded counter with 315.47 million shares done. The stock rose 5.5 sen to 17 sen.

Other actives included Metronic, Focus, Ingenuity Solutions, SuperComNet, Naim Indah Corp and JCY.



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MBSB up 4% in anticipation of higher dividends

KUALA LUMPUR (April 17) : MALAYSIA BUILDING SOCIETY BHD [] (MBSB) shares rose as much as 4% on Tuesday morning, possibly, in anticipation of higher dividends by virtue of the financial services provider’s land disposal proceeds.

The stock added nine sen to RM2.25 before being transacted lower at RM2.23 at 12.03pm. Some 3.5 million shares changed hands.

In a note, RHB Research Institute Sdn Bhd said MBSB could register a one-off gain of some RM100 million from the sale of its tracts in Sungai Buloh and Johor.

The one-off gain may result in an additional net dividend yield of 1% assuming a 30% payout ratio, according to RHB.



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Hartalega continues ascend on expansion plans

KUALA LUMPUR (APRIL 17): HARTALEGA HOLDINGS BHD [] shares continued to advance on Tuesday after the company said it was setting up a RM1.5 billion “next generation integrated glove manufacturing complex” (NGC) comprising 70 new high tech production lines.

At 12.01pm, Hartealega gained 23 sen to RM8.19 with 242,900 shares done.

The company last Friday said that its wholly owned subsidiary Hartalega NGC Sdn Bhd that was incorporated on March 29 is the designated corporate vehicle for the setting up of the NGC project, that is mainly involved in the production of rubber gloves to cater to fast rising global demand.



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Latexx up 6%, among top gainers

KUALA LUMPUR (April 17) : LATEXX PARTNERS BHD [] shares rose as much as 6%, placing shares of the rubber glove manufacturer among top gainers on Tuesday morning.

The stock added nine sen to RM1.58 before trading lower at RM1.55 at 11.24am.

Latexx said last February that it plans to reward shareholders with a tax-exempt final dividend of 3% a share for financial year ended December 31, 2011.

The company has not announced the entitlement and payment dates for the dividend.



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