SapuraCrest Petroleum secures US$54m contract from Petronas Carigali

KUALA LUMPUR (March 6): SAPURACREST PETROLEUM BHD [] has secured a US$54 million contract from Petronas Carigali Sdn Bhd to provide a tender rig including a mobilisation fee.

The company said on Tuesday the contract was for 12 months starting April 1 with an option to extend for another 12 months.

“The award of the contract will have no effect on the issued and paid-up capital of the company and is expected to contribute positively to the group earnings and net tangible assets for the financial year ending 2013,” it said.



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TC Subaru picks Tan Chong Motors to assemble vehicles

KUALA LUMPUR (March 6): Tan Chong Motor Assemblies Sdn Bhd has been appointed by TC Subaru Sdn Bhd as its contract assembler to assemble passenger vehicles.

The agreement is effective Tuesday until Dec 31, 2013, TAN CHONG MOTOR HOLDINGS BHD [] said in a statement.

Tan Chong Motor Assemblies is a 70 per cent-owned subsidiary of Tan Chong Motor Holdings while TC Subaru is a subsidiary of Tan Chong International.

"The appointment would enable Tan Chong Motor Assemblies to utilise the production capacity of its assembly plants at an optimum level.

"Based on the forecast assembly units during the term, the expected total assembly charges and related localisation fees payable by TC Subaru to Tan Chong Motor Assemblies is estimated at RM30.22 million," it said. - Bernama



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Market Commentary

The FBM KLCI index gained 0.69 points or 0.04% on Tuesday. The Finance Index increased 0.01% to 14206.39 points, the Properties Index dropped 0.71% to 1057.79 points and the Plantation Index down 0.20% to 8644.77 points. The market traded within a range of 9.44 points between an intra-day high of 1589.95 and a low of 1580.51 during the session.

Actively traded stocks include WINSUN, CSL, ENVAIR, IFCAMSC, HWGB, HWGB-WB, NICORP, GOCEAN, KBUNAI and AXIATA. Trading volume decreased to 1288.12 mil shares worth RM1792.17 mil as compared to Monday’s 1448.66 mil shares worth RM1760.84 mil.

Leading Movers were GENTING (+16 sen to RM10.92), TM (+8 sen to RM5.25), MAYBANK (+2 sen to RM8.79), PETCHEM (+3 sen to RM6.92) and HLBANK (+10 sen to RM12.40). Lagging Movers were CIMB (-6 sen to RM7.42), TENAGA (-7 sen to RM6.24), BAT (-32 sen to RM52.52), DIGI (-2 sen to RM4.11) and IOICORP (-2 sen to RM5.40). Market breadth was negative with 257 gainers as compared to 519 losers. -- JF Apex Securities Bhd



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Elevator manufacturer EITA seeks listing on Main Board

KUALA LUMPUR (March 6): Elevator manufacturer and distributor of electrical and electronics equipment EITA Resources Bhd is seeking a listing on the Main Board of Bursa Malaysia.

The company had on Tuesday signed an underwriting agreement with sole underwriter AmInvestment Bank Bhd in conjunction with its initial public offer. AmInvestment Bank is also the adviser and sole placement agent.

EITA said it plans to venture into high-speed passenger elevator systems to boost its competitive edge in bidding for more projects in Malaysia and overseas.

Currently, EITA’s elevators, marketed under the EITA-Schneider brand, are installed in buildings ranging from three storeys to more than 30 storeys high.

The company plans to use part of its IPO proceeds for research and development, including development of high-speed passenger elevator systems, and expand its R&D Centre in Penang.



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KLCI closes slightly higher on late buying, broader market cautious

KUALA LUMPUR (March): Late buying of selected index-linked stocks pushed the FBM KLCI, which as in the red all Tuesday, back into positive territory, with GENTING BHD [] emerging as the bigger index mover.

The FBM KLCI closed 0.69 of a point higher to 1,589.91. Turnover was 1.29 billion shares valued at RM1.73 billion. The broader market reflected the cautious sentiment, with 519 decliners to 257 advancers while 315 stocks were unchanged.

Key regional markets posted losses between 0.63% and 2%. Hong Kong’s Hang Seng Index fared the worst, down 2.16% to 20,806.20, Singapore’s Straits Times Index fell 2% to 2,932.01, Shanghai Composite Index 1.41% to 2,410.45, Taiwan’s Taiex 0.83% to 7,937.97 while South Korea’s Kospi fell 0.78% to 2,000.36.

European shares extended losses in morning trade on Tuesday on fresh concerns about economic growth in Europe and uncertainties regarding a bond swap deal between Greece and its private creditors.

Britain's FTSE 100 extended its losing streak into a third session on Tuesday, as concern about the health of the global economy hit heavyweight oils and miners, pushing the index towards the bottom of its recent range and darkening the technical outlook, Reuters reported.

At Bursa Malaysia, Genting rose 16 sen to RM10.92, pushing the KLCI up by 1.4 points while Tenaga added eight sen to RM5.25 and Petronas Chemicals three sen to RM6.92.

There was some nibbling on banking stocks, with Maybank and Public Bank up two sen each to RM8.79 and RM13.78, Hong Leong Bank 10 sen to RM12.40 and AMMB three sen to RM6.30.

Dutch Lady rose the most, adding 40 sen to RM29.90 with 6,100 shares done. Genting PLANTATION []s rose 25 sen to RM9.49 and Petronas Dagangan 18 sen to RM18.46.

CI Holdings added 13 sen to RM1.48 after the company announced its capital repayment of 50 sen per ordinary share would go ex on March 16.

Winsun was the most active with 47.67 million shares done, down two sen to 16.5 sen.

CIMB declined six sen to RM7.42, dragging the KLCI down 1.06 points. Tenaga shed seven sen to RM6.24 while BAT lost 32 sen to RM52.52 and KLK 12 sen to RM23.28.



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PPB Group’s Golden Screen Cinemas sets RM130m capex for 11 new cinemas

KUALA LUMPUR (March 6): PPB GROUP BHD []’s unit Golden Screen Cinemas Sdn Bhd (GSC) has allocated RM130 million to finance the setting up of 11 cinemas with 100 new screens within the next three years.

GSC chief executive officer Koh Mei Lee said on Tuesday the cinemas would be in Selangor, Pahang, Negri Sembilan and Sarawak.

“The growth in cinemas will be in tandem with shopping malls,” Koh told reporters at PPB’s press and analyst briefing here .

Of the RM130 million, a total RM70 million will be spent this year, she said.

According to PPB’s website, GSC has 180 screens across 22 locations nationwide.



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Petronas says won't pay any more compensation to Tenaga

KUALA LUMPUR (March 6): Petroliam Nasional Bhd (Petronas) has clarified that it will not be paying any more compensation to Tenaga Nasional Bhd (TNB) for the cost of alternative fuel used by the national power utility.

Its president and chief executive officer, Datuk Shamsul Azhar Abbas said the payment (RM1 billion) was supposed to be a "one-off" affair.

"Never had we mentioned in the past that it is going to be a continuous handout to TNB...It was supposed to be one-off, because we pity them as they don't have enough cash at that time," he said.

Petronas was clarifying a Bernama report on Monday which stated that it will not continue selling subsidised gas to TNB for electricity generation this year.

On the new pricing mechanism for gas once Petronas' re-gasification terminal comes on stream, Shamsul said, "We sat down with three ministers three weeks ago and we've basically proposed a formula, which takes into account domestic sensitivities.

"So, now it's up to them to bring it up to the Economic Council," he said. - Bernama



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Hock Seng Lee plans mixed devt near Kuching, GDV RM700m

KUALA LUMPUR (March 6): HOCK SENG LEE BHD [] plans to undertake a mixed commercial and residential property project in Bandar Samariang, Kuching with an estimated gross development value of RM700 million.

It said on Tuesday the project would involve 1,500 houses comprising of semi-detached, quadruplex and terraced houses, 2,000 units of affordable housing units and 40 shophouses.

“This is expected to generate an estimated GDV of approximately RM700 million. Samariang Aman 3 is expected to commence in 2013 and will span a development period of six to eight years,” it said.

Hock Seng Lee said the project would on 275.5 acres of land which it was acquiring from Projek Bandar Samariang Sdn Bhd for RM25.54 million.



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