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Showing posts from November, 2011

What? Rich Malaysia’s SP Setia 5.5bn Funding for 20-years dead Battersea Power Station

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A Malaysian property company is in discussions to take control of Battersea Power Station and fund a £5.5bn redevelopment of the site.The Daily Telegraph understands that SP Setia has agreed terms with Irish group Real Estate Opportunities to take a majority stake in the landmark power station through acquiring the bank debt that is threatening to derail the redevelopment.
However, the lenders to the site, Ireland’s National Asset Management Agency and Lloyds, are understood to have serious concerns about the proposals.
The Far Eastern investor made a formal offer last week to the lending banks to buy their £300m of debt at around 85p in the pound, or £255m.
But the lenders, who are considering the bid and have the power to pull the plug on the Battersea project, are unhappy with the price. They are thought to be keen to explore other options for the power station, such as Roman Abramovich building a new stadium for Chelsea.SP Setia is understood to have discussed the investment with Bor…

Bursa Malaysia Market Today Preview

We expect our benchmark FBM KLCI to range-bound with slight downward bias today. On the chart, the index may be bouncing back and forth between the immediate support and resistance levels of 1,415 and 1,445.

Meanwhile, key U.S. equity indices closed between -0.1% and -0.5% last night due to the lower-than-expected 3Q GDP data which was revised down to 2% from the previous estimate of 2.5%, providing little certainty for the pace of recovery in the near term.

Back home, stocks that will likely see added interest today include: (a) KNM, after reporting shocking 3Q11 net loss last night which was way below expectations, (b) Alliance Financial
Group and Hwang-DBS, following news report that the companies are potentially looking at a merger exercise, and (c) AirAsia, given its 3Q11 core net profit that came far below consensus estimate.  by HWDBS Vickers

SELL MAS – The Worst Is Yet To Come

MAS Stock code 3784 3QFY11: The worst is yet to come
MAS reported another disappointing quarter with adjusted net losses of RM477.6m in 3QFY11.  The  main  culprit  was  the  37%  y-o-y  increase  in  fuel  cost  and  an  unrealized foreign  exchange  loss  of  RM195.1m.  We  maintain  a  SELL  recommendation  while  we are keeping our eyes open for the upcoming plans and initiatives to be released.
             Results highlights
3QFY11 results came in lower than house and market expectations due to losses of RM477.6m on the back of high fuel cost. Together with losses in 1HFY11, YTD losses came up to RM1.2bn. Fuel cost has increased by 37% y-o-y in 3QFY11 as the average jet fuel price has increased to USD125.2/bbl. The 4.5% q-o-q decrease in operating expenditure did not manage to reduce the net losses incurred. Although operating loss saw a sharp reduction q-o-q, MAS’s unrealized forex losses of RM195.1m kept it deep in the red. MAS expects the 4QFY11 to be weaker than the curren…

Singapore NODX Deeper Into The Red

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Worse-than-expected...
Singapore’s non-oil domestic exports (NODX) in Oct ’11 plunged by -16.2% YoY (consensus: -7.8% YoY), while Sep ‘11 figure was revised slightly to -4.6% YoY (previous: -4.5% YoY).
As both electronics and non-electronics exports slumped…
Electronics exports fell for the ninth consecutive month (Oct ‘11: -31.2% YoY; Sep ‘11: -13.6% YoY).  Non-electronics exports also fell (Oct ’11: -6.7% YoY; Sep 2011: +0.7% YoY), dragged by lumpy exports like ships & boats (-55% YoY), specialized machinery (-24% YoY) and electrical machinery (-42% YoY) despite increases in chemical exports like pharmaceuticals (+7.8% YoY) and petrochemicals (+3%).

Dampened by lower shipments to major economies and North Asia…By markets, major dampeners to last month’s NODX include US (-50.6% YoY), EU27 (-30.9% YoY), Japan (-6.3% YoY), Hong Kong (-30.5% YoY), Taiwan (-19.1% YoY) and South Korea (-4% YoY).  These are compounded by slowing or lower exports to other regional markets …

FBM KLCI Daily Analysis - The calm before the storm?

FBM KLCI:  Downside volatility may emerge
Weaker supports of 1,452 & 1,470 1,476 & 1,494 will cap the reboundsPCHEM – Sell this stock on rallies

Market Review
The  FBM  KLCI dipped marginally  by  0.38-points to  end  at 1,476.84  yesterday.  The  FBM100  rose  by  0.69  points  but the  FBMEMAS  fell  by  0.49  points  respectively.  Market breadth had a gainer-to-loser ratio of 322 to 462 while 286 counters  were  unchanged.  Market  volume  traded  was 2.03b shares - valued at RM1.47b. 

Regional Markets 
Asian  stocks fell for  a second day  after Italian  bond yields rose amid concern Italy’s new government will struggle to trim its debt and keep Europe’s crisis from spreading.

US Markets
US markets ended much lower last night, after Fitch stated that  the  American  banking  outlook  could  worsen  from  its stable condition if the EUROZONE’s debt problems are not resolved quickly. The Dow tumbled 190.57 points or 1.58% to  11,905.59,  the  S&P500  fell…

Malaysia IPO pipeline will keep flowing

There is strong interest by firms wanting to be listed on the local bourse, says Bursa Malaysia Bhd  chief executive Datuk Tajuddin Atan. "There's no drying up in the IPO space. The IPO pipeline is strong, I think you will see a lot of interests. I believe it is an issue of timing now, everybody is watching what's happening in Europe and so forth. "If the timing is right, and the market starts stabilising,  the  interest  will  be  there,"  Tajuddin  said  on  the  sidelines  of  the  5th  International Islamic Capital Market Forum. This year, there were 26 companies which made its debut on the local stock exchange. Last year, there were 29 IPOs. THERE is strong interest by firms wanting to be listed on the local bourse, says Bursa Malaysia Bhd chief executive Datuk Tajuddin Atan.

"There's no drying up in the initial public offer (IPO) space. The IPO pipeline is strong, I think you will see a lot of interests. I believe it is an issue of timing now,…