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Showing posts from June, 2010

Malaysian Mosaic: To be privatised?

Main  board-listed maker  and  trader  of mosaic  and  ceramic  tiles Malaysian Mosaic Bhd  (MMosaic) may  soon  be  taken private. While details of  the price or  terms of a privatisation exercise were not available at press time, it is worth nothing that  the  stock  is  trading  at  about  half  its  net  tangible  assets  value.  The  company’s  largest  shareholder  is  Gek  Poh (Holdings) Sdn Bhd, a private entity controlled by Datuk Seri Panglima Lau Cho Kun. As at 31 Mar 2010, Gek Poh held a 73.07%  direct  and  indirect  stake  in MMosaics. Gek  Poh  is  also  the  holding  company  of Hap  Seng Consolidated  Bhd. (Financial Daily)

RHB Cap: EPF to reduce stake by mid-2011

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The Employees Provident Fund (EPF) will pare down its stake in RHB Capital Bhd to 40% by mid-2011, said CEO Tan Sri Azlan  Zainol.  “We  have  to  sell  down  to  40%  by middle  of  next  year,”  he  said. He  said  the  state  pension  fund  had  not identified  potential  buyers  for  its  57%  stake  in  the  country’s  fourth-biggest  bank  by  assets. Meanwhile, Azlan  said EPF aimed  to grow  its overseas  investment  to between 10% and 15% next year from only 7% now. “We want to look at bond papers as well as properties,” he said. (StarBiz)

FBM KLCI Market Preview

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With the general market performance likely to be broadly lackluster for the time being, investors would have to use a bottom-up method to pick stocks. The key FBM KLCI is expected to remain in a consolidation mode today, possibly showing a bit of weakness, against a backdrop of little new developments. On the chart, the immediate support and resistance levels for the benchmark index are still seen at 1,305 and 1,340, respectively.

Amid a quiet market environment, there could be additional interest in selected counters such as:
(a) Berjaya Corporation after the government said it would not reissue a sports betting license to Ascot Sports (which was to be injected into Berjaya Corporation
initially); and
(b) Faber and Time Engineering following a news article saying that their major shareholder UEM Group is looking for interested parties to buy over the two companies under a plan to divest its non-core business activities. by Hwang DBS

Steel Theme Play : Domestic Steel Market to Expand - Choo Bee Metal

STEEL product manufacturer Choo Bee Metal Industries Bhd expects the domestic steel market to expand by 5 per cent this year.

Group managing director Simon Soon Cheng Hai said although steel exports have increased following the recovery in the US economy, they are still affected by price uncertainty.

"The European economic crisis and measures taken by China to cool its economy give impact to this industry.

"For this, we will focus on the local market because the 10th Malaysia Plan that was tabled early this month can bring positive development to the company," he said after chairing Choo Bee Metal's annual general meeting in Ipoh, Perak, yesterday.

He said the management has taken steps to increase productivity and tidy up operations to make the company more competitive.

To become a major steel pipe producer in the country, the company will focus on product quality.

Choo Bee Metal will also open a new warehouse in Kapar, Klang, costing RM8 million, …

FBM KLCI Technical Outlook

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FBM KLCI: Key Points
  FBM KLCI – Temporary low at 1,243.86
  Obvious supports are at 1,315 & 1,335
  Key resistances seen at 1,340 & 1,350 Daily Technical Outlook
The FBM KLCI advanced 17.60 points to close at 1,335.29.  Its resistance areas at 1,340 and  1,350 may cap market gains, whilst the obvious support areas for the FBM KLCI are located at 1,315 and 1,335. Due to the USA’s marginally weaker market action overnight, we could see the FBM KLCI in a range-trading mode today – with some minor upside bias. The FBM KLCI had peaked at its previous high of  1,349.92. Trading opportunities hen emerged with the Bullish  Engulfing candlestick low at 1,243.86 on 27 May 2010. Investor confidence has returned to he local market but we advise clients to remain cautious.

Some stocks that we like are: AFG, BSTEAD, CCB, CIMB, COCOLND, EPIC, GUINESS, HELP, HLFG, KFC, KLK, KPJ, MAMEE, PBBANK, PBBANK-01, PPB, POS, PUNCAK, QL, SEG, SUPERMX, TOPGLOV, UTDPLT and ZHULIAN. MARKET RO…

More EPF members making withdrawals for unit trust plan

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A significantly larger number of Employees Provident Fund (EPF) members have opted to withdraw part of their retirement savings for investment in unit trusts. The amount withdrawn under Members Investment Withdrawals in the first quarter of 2010 rose 43.26% to RM911.15mil from RM636.01mil withdrawn in the corresponding period last year, said EPF in a press statement.
Total applications approved under this withdrawal increased to 113,809 from 87,420 in the same period last year.
“The increase in withdrawals for investments is in tandem with the recovery in the domestic economy that began in the third quarter of 2009, and has since continued to gain momentum,” said EPF chief executive officer Tan Sri Azlan Zainol.
He added that the increase was also attributed to the rise in the number of members who were eligible for investment withdrawals.
Priority towards prudent investing was also reflected in the increasing number of retirees who opted for Flexible 55 Withdrawals to stretch the value …

Berjaya Corp: Probed over approved sport betting licence

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The  Securities  Commission  (SC)  and  Bursa  Malaysia  Securities  Bhd  are  looking  into  possible  breaches  of  listing requirements  by  Berjaya  Corporation  Bhd  and  will  take  the  “appropriate  action”  if  it  is  found  to  be  the  case,  said spokespersons from both regulatory bodies. In its announcement to Bursa Malaysia on 12 May 2010, BCorp implied it had already obtained  the  licence  from Ministry of Finance, stating  that  “the Minister of Finance has given  its approval  for  re-issuance to Ascot of the licence to carry out sports betting operations upon certain terms and conditions”. (Financial Daily)

Talam: Free from PN 17 status

Talam Corp Bhd will be  free  from  its Practice Note 17  (PN17) status company effective  today. The company  told Bursa Malaysia Bhd that with the completion of its regularisation plan, Talam has regularised its financial condition and no longer triggers any of the criteria under Paragraph 2.1 of PN17 of the Main Market Listing Requirements. (BT)

Employees Provident Fund: EPF to publish top 30 stock investments online every quarter.

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Starting today, the EPF will publish its top 30 stock market investments every quarter on its website. The move is meant to improve corporate governance by enabling members to see in which companies their savings are being invested.The Employees Provident Fund (EPF) has committed to publishing on a quarterly basis its top 30 equity investments in companies listed on Bursa Malaysia Securities towards promoting greater transparency.

"The quarterly disclosure of our equity investments through the online page is in line with our positive stance towards corporate governance which will enable members to see in which companies their savings are being invested," EPF CEO Tan Sri Azlan Zainol said in a statement on Wednesday, June 9.

Such information is available in filings to Bursa Securities, but EPF's move now has made it easier for investors to locate it via a newly introduced "Investment Highlights" page on EPF's website.

The page aims to keep members i…

Hong Leong Bank: Maintains RM5.06bn EONCap offer

Hong Leong Bank Bhd  says there is no change to the structure of its all-cash takeover offer for smaller rival EON Capital Bhd. In a filing to the stock exchange, Hong Leong said its RM5.06bn offer as set out on 1 Apr this year would be maintained. Hong Leong also said that it had asked Bank Negara Malaysia on 4 Jun for more time to talk to EONCap as its offer had yet to reach the latter’s shareholders. (Business Times)

Berjaya Corp: Stock hits by uncertain status of sports betting licence.

Berjaya Corp Bhd's share price slumped to its lowest in more than three months due to the uncertainty over the sports betting licence status of Ascot Sports Sdn Bhd.
The stock fell 6.2 per cent, or 9 sen, to close at RM1.37 yesterday. It was the third most active stock traded on the exchange.

Tan Sri Vincent Tan's BCorp (3395) was planning to buy 70 per cent of the privately-held Ascot for RM525 million. Ascot was granted the sports betting licence last month, but this has been met with mixed reaction from various groups, with most of them opposing the move.

On Monday, the Finance Ministry said it might review the decision to allow sports betting and a final decision would be made next week after gathering public feedback.

Losing out on the licence would be the second significant setback for Tan this year, after plans to set up a manufacturing plant in Malaysia to build right-hand-drive cars for the Asean market hit a wall, also due to licensing issues.

BCorp was pl…

Malaysia Sports Betting Decision Next Week

Gaming: Decision on sports betting next week. The Finance Ministry is considering a review of its decision to allow football betting in the country. Deputy Finance Minister Datuk Donald Lim Siang Chai mentioned yesterday that the ministry was now gathering public feedback on the issue and would make a final decision by next week. (Source: New Straits Times)

Vincent Tan's Berjaya Retail to be listed on Bursa Malaysia Soon?

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Berjaya Corp: Vincent Tan seeks other funding avenues Following his donation of RM525m from the sale of his stake in Ascot Sports Sdn Bhd, Tan Sri Vincent Tan will look for other avenues to fund his portion of the loan stocks to be issued by Berjaya Corp Bhd for the purchase of the sports betting company. One possibility is via the listing of Berjaya Retail Bhd (BRetail) where he owns 100% of 7-Eleven Malaysia Sdn Bhd. The proposal has been submitted and the listing is expected soon. There are plans for the sale of Singer Sdn Bhd and 7-Eleven Malaysia Sdn Bhd to BRetail for RM360m and RM600m respectively through issuance of new irredeemable convertible preference shares. (StarBiz).

KL to have MRT system: Construction Candidates - Gamuda, MMC?

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The city’s infrastructure, a subject of increasing criticism, is likely to be boosted by a new mass rapid transit (MRT) system that could be put into place soon to be complement  the role of the monorail and LRT systems. Sources said the government was in the final stage of considering the MRT project, believed to be planned for within the confines of the city which was experiencing growing traffic congestion. The names of at least two industry players have been bandied about for the MRT project- Gamuda Bhd and MMC Corporation Bhd. (Financial Daily)

Astro: Privatisation to succeed.

The general offer for Astro All Asia Networks reached 99.3% acceptances from all parties, which exceeds the level needed for compulsory acquisition. The offerors will proceed to extend a final offer to compulsorily acquire the remaining shares of Astro at the same price of RM4.30 per share. Astro has already been excluded as a component of the KLCI 30 index and replaced by Hong Leong Financial Group, effective on 26th May. (Source: Bursa Malaysia)

FBM KLCI : Trading Opportunities Emerged - Maybank IB

Daily Technical Outlook
The FBM KLCI shed 6.95 points to close at 1,276.02 yesterday. Its resistance areas at 1,276 and 1,296 may cap market gains, whilst the obvious support areas for the FBM KLCI are located at 1,243 and 1,270. Due to the USA’s firm market action last night, we will see the FBM KLCI “gap-up” today, to be followed by likely profit-taking activities. 

The FBM KLCI had peaked at 1,349.92 (near the 75% retracement level measured from its 1,524.69 high to its low of 801.27). Trading opportunities have emerged with the Bullish Engulfing candlestick low at 1,243.86 last Thursday. Trade with a short-term time frame, with stop-loss below 1,241. The current rebound phase could stall at the 38%, 50% and 62% retracement levels of 1,284.37, 1,296.89 and 1,309.41. Remain bearish if the FBM KLCI cannot surpass its critical resistance level of 1,315.63. 

The European sovereign debt problems and EURO currency crisis have not gone away. Keep a very cautious eye on Europe, and clie…