KLCI rises 0.7% on positive external factors

KUALA LUMPUR (May 2): The FBM KLCI rose more than 0.7% on Wednesday, advancing in line with the firm gains at key regional markets following positive data coming out from the US.

Asian shares rose and the dollar recovered against the yen on Wednesday after strong U.S. factory activity data raised hopes that the world's biggest economy remained on a recovery track while growth in Asian manufacturing improved broader sentiment, according to Reuters.

European shares were expected to open mixed, with most exchanges reopening after the May Day holiday on Tuesday. Financial spreadbetters predicted that major European markets, it said.

The FBM KLCI rose 0.75% to close 11.78 points higher at 1,582.39 on Wednesday, lifted by gains including at Genting-related counters.

Gainers beat losers by 458 to 281, while 288 counters traded unchanged. Volume was 1.33 billion shares valued at RM1.43 billion.

At the regional markets, the Shanghai Composite Index rose 1.76% to 2,438.44, Hong Kong’ Hang Seng Index added 1.02% to 21,309.08, Taiwan’s Taiex Jumped 2.33% to 7,676.81, South Korea’s Kospi gained 0.86% to 1,999.07, Japan’s Nikkei 225 was up 0.31% to 9,380.25 and Singapore’s Straits Times Index rose

On Bursa Malaysia, Genting was the top gainer and rose 32 sen to RM10.66, Aeon Credit added 30 sen to RM11, Aeon was up 29 sen to RM9.80, Orient 25 sen to RM6.67, Takaful 21 sen to RM4.17, Metrod,Tasek and Genting PLANTATION []s added 20 sen each to RM2, RM8.87 and RM9.60 respectively, Cybertowers 19. 5 sen to RM1.16 while Lafarge Malayan Cement was up 19 sen to RM7.38.

Naim Indah Corp was the most actively traded counter with 84.41 million shares done. The stock was up six sen to 51.5 sen.

Other actives included Utopia, Ariantec, Metronic, Astral Supreme, BIMB, AWC and Hubline.

Decliners included BAT, Shell, BLD Plantations, Y&G, Top Glove, Cepco, Milux MISC and JT International.



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Bursa queries Cybertowers

KUALA LUMPUR (May 2): Bursa Malaysia Securities Bhd has queried CYBERTOWERS BHD [] over the unusual market activity relating to its securities.

In a circular issued on Wednesday, it queried the company due to the sharp rise in price and high volume in the company's shares.

Cybertowers closed 19.5 sen higher at RM1.16 on Wednesday with 9.69 million shares done.



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Public Mutual declares distribution for three funds

KUALA LUMPUR (May 2): Public Bank’s wholly-owned subsidiary, Public Mutual, declared distributions for three funds.

In a statement Wednesday, Public Mutual said the total gross distributions were declared for the financial year ending 30 April 2012.

It declared gross distribution of 1.25 sen per unit for the Public Far-East Telco & Infrastructure Fund, two sen per unit of Public Islamic Dividend Fund and 0.40 sen per unit for Public Islamic Asia Dividend Fund.

The fund manager said Public Far-East Telco & Infrastructure Fund sought to achieve capital growth over the medium-to long-term period by investing in securities, mainly equities, in the telecommunications, infrastructure and utilities sectors in Far-East markets.

Meanwhile, it said Public Islamic Dividend Fund, which was open for EPF Members Investment Scheme sought to provide income by investing in a portfolio of stocks that complies with Shariah requirements and which offer or have the potential to offer attractive dividend yields.

It said the Public Islamic Asia Dividend Fund aims to provide income by investing in a portfolio of stocks in domestic and regional markets that complies with Shariah requirements and which offer or have the potential to offer attractive dividend yields.

“All of the above funds are distributed by Public Mutual unit trust consultants,” it said.

Public Mutual said it was Malaysia’s largest private unit trust company with 93 funds under management.

It has 2.7 million accountholders and as at 30 March 2012, the total net asset value of the funds managed by the Company was RM47.4 billion, said the fund manager.



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Menang Corp edges up after 51%-owned subsidiary gets UiTM concession from MoE

KUALA LUMPUR (May 2): MENANG CORPORATION (M) BHD [] shares edged up on Wednesday after its 51%-owned subsidiary, Rumpun Positif Sdn Bhd (RPSB) has secured a 23-year concession from the ministry of education to for the Puncak Alam UiTM campus in Selangor.

At 3pm, Menang was up one sen to 25 sen with 138.300 shares done.

In a filing Wednesday, Menang Corp said the project was a Private Finance Initiative (PFI) basis project under the concept of “Build-Lease-Maintain-Transfer”.

It said RPSB would build the proposed UiTM Campus at Puncak Alam, Selangor over 3 years.

“Upon completion of the building, the Campus will be leased to the Government/UiTM for a period of 20 years.

“During the lease period of 20 years, RPSB will also be maintaining the Facilities and Infrastructure of the Campus. The Concession Period of the Project is therefore 23 years,” it said.

Menang Corp said the total CONSTRUCTION [] cost of the Campus was about RM260 million.

The company said RPSB would receive availability charges of approximately RM3.32 million monthly in arrears for the Project from UiTM over the lease period of 20 years after completion of the construction of the Facilities & Infrastructure.

It would also receive asset management services charges of about RM738,540 monthly in arrears for the provision of the Asset Maintenance Services from UiTM over the lease period of 20 years after completion of the construction of the facilities, it said.



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Ivory warrants up 42-fold, shares deemed undervalued

KUALA LUMPUR (May 2) : Ivory PROPERTIES [] Group Bhd warrants jumped as much as 42-fold on their maiden trading day to be among top gainers across the exchange.

The derivative securities rose 21 sen to 21.5 sen before settling lower at 20 sen at lunch break with some 7.7 million units done. Ivory shares fell one sen to 56 sen.

Ivory had issued 186 million warrants in conjunction with its renounceable rights issue of a similar number of new shares on the basis of one rights unit and warrant for one existing share held in the firm. The five-year warrants which will mature on April 26, 2017, have conversion ratio of 1:1 with a strike price of 75 sen. This means each warrant can be converted into one ordinary share at 75 sen.

Based on the warrants’ price of 20 sen and Ivory share’s price of 56 sen, the warrants command a premium of 70%. The premium indicates the quantum of share price increase needed to equal the combined price of the warrant and its strike price.

The company’s warrants are out of the money as the strike and warrant price combined at 95 sen is higher than the underlying share price of 56 sen,

Analysts said Ivory shares are undervalued. In a note, TA Securities Holdings Bhd said it believes investors have discounted the value of the stock as they failed to recognise the earnings potential from Ivory’s proposed Penang World City mixed development within 102.56 acres at Penang’s Bayan Mutiara enclave.

Ivory is undertaking the project with a potential value of RM10 billion, in collaboration with Dijaya Corp Bhd.

According to TA, Ivory shares are trading at a price-to-earnings ratio (PER) of five times 2012 earnings which is a discount to the research firms’s targeted PER of seven times for small-cap stocks under its coverage.



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Rajang Port Authority eyeing opportunities at Score

SIBU (May 2): The Rajang Port Authority (RPA) is keen to exploit the many opportunities expected to be generated from developments at the Sarawak Corridor of Renewable Energy (Score).

General manager Helen Lim Hui Shyan said Score would fuel economic spinoffs in Sarawak's central region areas.

"Business will grow, markets will expand. There will be more activities and hence, more cargo. RPA is blessed to be positioned in a strategic advantage," she said at the port's annual Quality Day dinner here on Tuesday night.

On its own, Lim said, the port's core activity of handling containers had registered very encouraging growth.

"For the past five years, our average increase is six to seven per cent a year. As a riverine port in this region, achieving a total throughput of 88,700 TEUs (20ft equivalanet units) of containers last year in port terms was a "handsome achievement", she said.

Port chairman Vincent Goh Chung Siong said RPA has been been registering favourable and increasing surplus since 2007 despite facing many challenges over the years.

"In 2007, we registered a RM4 million surplus after tax. In the following year, the surplus grew to RM5 million and RM7.3 million in 2009, Ihe surplus swelled to RM8 million in 2010," he said.

Last year, the profit rose to over RM10 million, he said.

Goh said RPA had over the years invested in developing and upgrading facilities at the port and enhancing its position as an efficient and reliable port in Sarawak. "We've now four units of new Straddle Carriers, two units of empty container handlers (to stack up empty containers to five high to maximise space usage) and two additional units of mobile harbour cranes," he said.

In view of the fine financial performance, Goh had the port employees cheering when he announced a one- to two-month bonus for the year 2011. — Bernama



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Menang Corp’s 51%-owned subsidiary gets 23-year UiTM concession from MoE

KUALA LUMPUR (May 2): MENANG CORPORATION (M) BHD []’s 51%-owned subsidiary, Rumpun Positif Sdn Bhd (RPSB) has secured a 23-year concession from the ministry of education to for the Puncak Alam UiTM campus in Selangor.

In a filing Wednesday, Menang Corp said the project was a Private Finance Initiative (PFI) basis project under the concept of “Build-Lease-Maintain-Transfer”.

It said RPSB would build the proposed UiTM Campus at Puncak Alam, Selangor over 3 years.

“Upon completion of the building, the Campus will be leased to the Government/UiTM for a period of 20 years.

“During the lease period of 20 years, RPSB will also be maintaining the Facilities and Infrastructure of the Campus. The Concession Period of the Project is therefore 23 years,” it said.

Menang Corp said the total CONSTRUCTION [] cost of the Campus was about RM260 million.

The company said RPSB would receive availability charges of approximately RM3.32 million monthly in arrears for the Project from UiTM over the lease period of 20 years after completion of the construction of the Facilities & Infrastructure.

It would also receive asset management services charges of about RM738,540 monthly in arrears for the provision of the Asset Maintenance Services from UiTM over the lease period of 20 years after completion of the construction of the facilities, it said.



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Syarikat Takaful trades at highest since 1996 IPO

KUALA LUMPUR (May 2) : SYARIKAT TAKAFUL MALAYSIA BHD [] rose as much as 7% to its highest since the Islamic insurer’s initial public offering (IPO) in July 1996 as investors bought the stock before it trades ex-dividend next Monday.

The stock, among top gainers on Wednesday, climbed 29 sen to settle at RM4.25 at lunch break with some 513,000 shares traded. Syarikat Takaful’s IPO about 16 years ago had involved eight million shares at RM2.30 each.

The firm plans to pay a final single-tier dividend of 10% which translates into 10 sen a share for financial year ended December 31, 2011. This brings total gross dividends for the year to 17 sen a share which translates into a 4% yield based on the stock’s latest price.

The final lodgement date for the 10% final single-tier dividend falls on May 9.



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