LPI 1Q profit down 19% year-on-year

KUALA LUMPUR (April 9) : LPI CAPITAL BHD []’s net profit fell 19% in the first quarter ended March 31, 2012 from a year earlier, as the general insurer’s contractual liabilities, lower investment income and higher operating expenses offset a higher revenue.

In a statement to the exchange on Monday, LPI said its net profit during the quarter came to RM31.48 million against RM38.63 million previously. Revenue rose 15% to RM246.06 million from RM213.33 million.

“The challenges facing the global developed economies are growing rapidly with very little evidence to suggest that there will be an imminent solution to address these concerns.

“This in turn may affect the investment segment of the Ggoup. The group views the dividend income from this segment with caution. However, the group does not foresee it has any big impact to the overall profit as the investment segment only formed about 13% of the group‟s total profit in the financial year 2011,” LPI said.



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SILK unit gets contract extension worth RM10.77m

KUALA LUMPUR (APRIL 9): SILK Holdings Bhd’s unit has secured a contract extension worth RM10.77 million from Petrofac Malaysia Ltd.

The company said on Monday that its unit Jasa Merin (Malaysia) Sdn Bhd had accepted the award from Petrofac for the contract extension of Jasa Merin’s anchor handling tug supply vessel JM Intan to Petrofac.

SILK said the contract which commenced on July 23, 2009, had a primary period of two years with the extension options of 1+1+1 year, is to be extended for the second extension commencing July 23, 2012 until 22 July 2013.

The company said the contract extension was expected to contribute positively to its earnings for the financial years ending 31 July 2012 and 2013.



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SC approves Hong Leong Bank’s US$1.5 billion bonds

KUALA LUMPUR (April 9) : The Securities Commission has approved HONG LEONG BANK BHD []’s plan to issue up to US$1.5 billion (RM4.61 billion) worth of bonds to finance its working capital needs.

In a statement to the exchange on Monday, Hong Leong said the fund raising instrument comes in the form of euro-denominated medium term notes.

Citigroup Global Markets Ltd, HL Bank, Mitsubishi UFJ Securities International plc and The Royal Bank of Scotland plc are arrangers and dealers for the scheme, according to Hong Leong.



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KLCI falls in tandem with regional markets

KUALA LUMPUR (April 9): A slew of negative external developments weighed down investor sentiment at the local bourse, and the FBM KLCI closed in the red on Monday.

Asian shares fell on Monday as a sharp slowdown in U.S. jobs growth raised concerns about the strength of the world's largest economy, prompting investors to curb risk exposure ahead of more U.S. data and earnings as well as figures from China this week, according to Reuters.

China stocks fell 0.9 percent on Monday, led by property firms, after data showed the inflation rate rose more than expected last month, prompting speculation that Beijing may delay further easing of monetary policy, it said.

The FBM KLCI closed 7.59 points lower at 1,591.28.

Market breadth was negative with 468 losers, 238 gainers and 322 counters trading unchanged. Volume was 1.08 billion shares valued at RM1.08 billion.

At the regional markets, Japan’s Nikkei 225 fell 1.47% to 9.546.26, the Shanghai Composite index was down 0.90% to 2,285.78, south Korea’a Kospi fell 1.57% to 1,997.08, Taiwan’s Taiex was fell 1.27% to 7,600.87 and Singapore’ Straits Times Index shed 0.87% to 2,960.10.

On Bursa Malaysia, BAT was the top loser and fell 74 sen to RM54.72, KrisAssets down 21 sen to RM6.67, BLD PLANTATION []s and Toyo Ink fell 20 sen each to RM9.20 and RM1.47, Panasonic and Petronas Dagangan down 18 sen each to RM21.70 and RM18.66, TDM and KLK lost 14 sen each to RM4.81 and RM24.50, while GAB and Petronas Gas were down 12 sen each to RM12.96 and RM16.66.

Naim Indah Corp was the most actively traded counter with 113.6 million shares done. The stock fell four sen to 53 sen.

Other actives included Metronic, DVM, EITA, Managed Pay, SuperComNet, Tiger Synergy and Focus.

Gainers included Aeon, SMPC, Milux, Kluang, Hong Leong Industries, Nationwide, Tanjung Offshore, Parkson, UMS and Nestle.



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Guan Chong targets secondary listing in Singapore

KUALA LUMPUR (APRIL 9); GUAN CHONG BHD [] is seeking secondary listing on the Main Board of the Singapore Exchange Securities Trading Ltd (SGX).

In a a statement Monday, Guan Chong managing director and chief executive officer Brandon Tay Hoe Lian said the company was aiming for the dual-listing on SGX-ST to facilitate its access to the capital market in Singapore, and giving it the flexibility to tap into additional sources of equity funding for its expansion.

“Aside from improving our market liquidity, the proposed secondary listing will enable the Group to expand and diversify GCB’s shareholder base and improve our market visibility, specifically to the retail and institutional investors in the region.

“As we seek to export more cocoa products through Singapore, this exercise will raise our profile even more in the international market,” said Tay.

Tay said the proposed corporate exercise would entail two parts: firstly, a Public Offering of up to 62 million ordinary shares of 25 sen par, or 19.4% of total existing share capital of 319.7 million shares, comprising 31 million new shares and 31 million vendor shares to be offered by key substantial shareholders; secondly, a 1-for-2 Bonus Issue of up to 205.3 million new shares to the enlarged base of shareholders, subsequent to the Public Offering.

The issue and offer price to the investors in Singapore will be determined at a later date by Guan Chong, he said.

He said the proceeds raised from the planned secondary listing would be used for the expansion of the Group’s existing operations, product development activities, and general working capital requirements, as well as to defray expenses related to the proposal.

The proposed dual-listing exercise was expected to be completed by second half of 2012, said Tay.



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Malaysia Smelting Corp announces key appointments

KUALA LUMPUR (APRIL 9): MALAYSIA SMELTING CORPORATION [] Bhd (MSC) has promoted Chua Cheong Yong as its deputy group chief executive officer and has appointed Ir. Mohamed Yakub bin Ismail as the group chief operating officer of mining with effect from 1 April 2012.

MSC said on Monday that Chua would continue to helm the international tin smelting operations of the MSC Group of companies as well as the company’s African tin projects.

In this context, he would continue to play a pivotal role in creating new strategic business relationships for the Group as well as expanding established major accounts, it said.

“He is part of the business development team responsible for identifying viable resource projects and businesses for the Group. In addition, he also oversees the day to day commercial, marketing and trading activities of the various local and overseas business units of the Group,” it said.

MSC said Chua held a BSc (Hons) in Business Studies from the City University of London as well as a Diploma in Market Research.

Mr. Chua is a director to the Board of ITRI Ltd, the global R&D arm of the tin industry based in London. He also sits on the Board of KLTM (Kuala Lumpur Tin Market) and is a member of the Chamber of Mines, Malaysia, said MSC.

Meanwhile the company said Mohamed Yakub had a total of 37 years of experience in the tin mining industry of which the last 10 years were spent within the MSC Group of Companies.

MSC said Mohamed Yakub was well-positioned to lead all the group’s mining operations in Malaysia, Indonesia and overseas, adding that he would also continue to hold the position of Senior General Manager of RHT.

It said Mohamed Yakub graduated in mining engineering from the Camborne School of Mines (ACSM), England and is a Registered Professional Engineer in mining, with the Board of Engineers Malaysia since 1984.

He is also a member of the Institution of Engineers, Malaysia and a member of the Malaysian Chamber of Mines, it said.



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FBM KLCI slips at mid-day break, but hovers above 1,590-level

KUALA LUMPUR (April 9): The FBM KLCI slipped into negative territory on Monday, in line with the waning sentiment at key regional markets, following a drop in US jobs growth that was reported last week.

Among the better performers on Bursa Malaysia in the morning session was newly-listed EITA Resources Bhd.

The FBM KLCI lost 4.66 points to 1,594.21 at 12.30pm.

Market breadth was weaker with 378 losers and 185 gainers, while 264 counters traded unchanged. Volume was 578.5 million shares valued at RM420.14 million.

The ringgit weakened 0.29% to 3,0728 versus the US dollar; crude palm oil futures for the third month delivery rose M13 per tonne to RM3,590, crude oil fell US$1.19 per barrel to US$101.12 while gold added US$2.05 an ounce to US$1,638.47.

Asian shares fell on Monday as a sharp slowdown in U.S. jobs growth raised concerns about the strength of the world's largest economy, prompting investors to curb risk exposure ahead of more U.S. data and earnings as well as figures from China this week, according to Reuters.

BIMB Securities Research in a note Monday said it would be a stop start scenario for equities this week following a weaker than expected job data for March in the US.

Therefore, investors and traders alike will reassess their risk/reward propositions before making more commitments, it said.

As of now, the lack of fresh catalysts will be the main excuse as well as the resurrection of Eurozone’s debt situation to be road bumps ahead for equity markets.

Then again, if both the US and China are to lean towards monetary easing, these may set the markets abuzz again.

For now, we can expect loads of fence sitters.

“Locally, the FBM KLCI failed to breach the 1,600 mark despite adding another 5 points to end the week at almost 1,599.

“For now, the lack of direction with some regional markets closed, we would expect a lacklustre market today with the immediate support seen at 1,590,” it said.

ON Bursa Malaysia, BAT fell 74 sen to RM54.72, Petronas Dagangan 30 sen to RM18.54, BLD PLANTATION []s fell 19 sen to RM9.21, KLK down 14 sen to RM24.50, GAB and Public Bank lost 12 sen each to RM12.96 and RM13.68, Chin Teck lost nine sen to RM9.06 while TDM was down eight sen to RM4.87.

Naim Indah Corp was the most actively traded counter with 81.28 million shares done. The stock fell three sen to 54 sen.

Other actives included EITA that rose 10.5 sen to 86.5 sen wth 30 millin shares traded.

Other actively traded stocks included DVM, Tiger Synergy, Time, SuperComNet, Metronic, Karambunai and Focus.

Gainers included Aeon, SMPC, KLuang, Dutch Lady, Eita, Hartalega, Nationwide, Parkson, Johore Tin and Nestle.



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Hartalega up on expansion plans

KUALA LUMPUR (APRIL 9): HARTALEGA HOLDINGS BHD [] shares advanced on Monday 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 11.32am, Hartealega gained 10 sen to RM8 with 292,600 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.

Meanwhile, CIMB Research maintained its Outperform rating on Hartelega Holdings Bhd at RM7.91 with a target price of RM9.98 and said the company’s 28.4 billion-pieces-of-gloves expansion by FY22 was a strong signal that it remains focused on growth.

The research house in a note April 9said the project enables Hartalega to defend its dominant position and add market share.



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