Showing posts from March, 2010

KLSE Timber Industry Stocks Theme Play?

Timber companies Ta Ann and Jaya Tiasa could see more trading interest after tropical plywood prices rose by 20% from last year’s low. A Sarawak Timber Association official stated the depleting inventories in Japan could lift demand.
The official was reported to have said Japan, which imports about 1.5 million cubic metres or more than 50% of Sarawak’s plywood production in 2009, had seen its inventories shrink over the past 12 months.LINGUI Developments Bhd. jumped the most in 40 months in Kuala Lumpur trading, leading gains by Malaysian timber producers after the Star reported that plywood prices will rise further amid demand from Japan.

Lingui, Malaysia’s largest by sales, surged 18 percent to 1.42 ringgit as of 3:27 p.m. local time, set for the steepest gain since Nov. 17, 2006. Ta Ann Holdings Bhd. gained 3.5 percent to 6 ringgit, and Java Bhd. gained 16 percent to 78 sen.Jaya Tiasa Holdings Bhd., a Malaysian timber producer, rose 6.7 per cent to 3.50 ringgit, the highest clo…

Bursa Malaysia Invest Malaysia

Bursa Malaysia  holds its annual Invest Malaysia conference from March 30 to 31  2010 at Shangri-la Hotel, Kuala Lumpur.
VenueShangri-La Hotel Kuala Lumpur
11 Jalan Sultan Ismail
50250 Kuala Lumpur
Tel: +60-3-2032-2388
Fax: +60-3-2070-1514

KLSE Next Week

Immediate Support Upgrade to 1,308, Upside Bias to 1,325/1,334 Next Week Trading sentiment should remain upbeat until next week, as investors would be eagerly anticipating the NEM to be unveiled by the PM in the Invest Malaysia forum.  As the KLCI managed to sustain above 1,308 yesterday, there is increasing upside potential toward 1,325 and subsequently the two-year peak of 1,334 by next week.  As such, immediate support is upgraded to 1,308, with 1,300 and then 1,292, the 38.2%FR, acting as stronger supports.

Upgrade Call to BUY Breakout Stocks

More lower liners staged breakout rallies above their recent highs or upper Bollinger bands yesterday, and hence should enjoy further gains as buying momentum strengthen.  As such, we are upgrading call to BUY stocks with share price closing above the upper Bollinger band, with focus on Dialog, Kencana, SapuraCrest, 3A Resources, Adventa, Latexx and Supermax.  On the other hand, take profit or sell Jaks Resources due to the weak closing b…

Maybank offer dividend reinvestment : others should follow

Maybank: Offers dividend reinvestment plan Maybank  (MAY MK, Buy, TP: RM8.30)  has proposed a recurrent and optional dividend reinvestment plan that allows shareholders the option of reinvesting their dividends into new shares at a discount. Maybank said the plan would maximise shareholders’ value while enlarging its share capital base, strengthen its capital position and add liquidity to its shares. The issue price of the new Maybank shares would be at a discount of not more than 10% to the counter’s 5-day volume weighted average market price immediately prior to the price fixing date. Maybank however said the time frame for its full utilisation could not be determined; adding that the net proceeds would be used to fund the group’s growth and expansion. (Financial Daily)
More detail :maybank dividend reinvest commentary
Great idea, hope other listed company proposed that too.

Malaysia Rubber Glove Makers Stocks Theme Play?

Local glove makers rally on Obama’s US health billTop Glove Corp led a rally by Malaysian rubber glove makers on speculation President Barack Obama’s US health bill will boost sales. Top Glove, the world’s biggest, climbed 1.7% to a record RM13.14 as of 12:26pm in Kuala Lumpur. Kossan Rubber Industries Bhd, the nation’s third-largest, increased 3.1% to RM7.64, and Adventa Bhd gained 2.4% to RM3.48.

Help! I've been cheated by Malaysia's Digi Telco

Malaysia`s DiGi Telco Cheating An Estimated Half Billion A Year (Mathaba News Agency) The 3 main mobile phone networks in Malaysia have been found to be cheating clients on a large scaleMalaysia's DiGi mobile phone telco is cheating its subscribers by an estimated half billion Malaysian dollars a year.
Tests show that the unscrupulous cell phone operator is sending calls to voice-mail even when the phone is receiving a strong network signal.

Calls being made to DiGi mobiles are routed to voice-mail without any delay whatsoever, thus not allowing for any switching times.

When a client does not respond to calls that DiGi does pass through, the time before being routed to voice-mail is very short, compared to other oversea operators, not allowing the mobile phone user sufficient time to answer incoming calls before the caller is routed to voice-mail.

Each time a call is routed to voice mail from a Digi phone, the caller is billed 12 cents, and charges for calls routed …

UEM Land Bhd 1-for-2 Rights analysis

UEM Land Bhd  1-for-2 Rights.
•  UEM Land Bhd (ULHB) has proposed a 1-for-2 rights issue priced at RM0.80 per share to raise RM971.3m.  A total of 1214.1m shares will be offered to existing shareholders. 77.14% will be subscribed by the UEM Group.
•  The issue price of RM0.80 per rights share is a 44.1% discount to the counter’s 5-day moving average (RM1.43) and -34.4% to the derived theoretical ex-rights price of RM1.24. 
•  Maintain NEUTRAL with revised Target Price of RM1.25 ex-rights, derived from a 25% discount to RNAV. We advise existing shareholders to subscribe to the rights share to further increase their investment and equity participation. Despite our ex-price TP providing a mere +2.4% upside to the counter, the subscription of the rights is a viable option for investor to average down cost. Note the ULHB traded at its highest at RM2.01 per share on 15th June 09.  

Purpose of proceeds. The group had proposed 5 utilizations for the proposed rights issue:-
i) Repa…

Bursa Malaysia Stocks to watch : Titan, Iris, KNM, Green Packet and Redtone

Key regional markets may get a lift on Tuesday, March 23 following the firmer overnight close on Wall Street after a dismal day on Monday where sentiment was impacted by monetary tightening across the region and Greece’s persistent debt woes.
On Wall Street, equities rose as passage of landmark legislation to overhaul healthcare drove up pharmaceutical stocks, including those in Europe.
The Dow Jones industrial average climbed 43.91 points, or 0.41 percent, to 10,785.89. The Standard & Poor's 500 Index rose 5.91 points, or 0.51 percent, to 1,165.81 and the Nasdaq Composite Index rose 20.99 points, or 0.88 percent, to 2,395.40.
At Bursa Malaysia, stocks to watch include Titan Chemicals Corp Bhd, Iris Corp Bhd, KNM GROUP BHD [ ] and WiMAX players GREEN PACKET BHD [ ] and REDTONE INTERNATIONAL BHD [ ]. Also in focus could be Lion Industries Corp Bhd, Jerneh and UEM Land Bhd.
Titan Chemicals Corp Bhd has recommended a final tax exempt dividend of 4.5 sen a share, amounting to RM77.75 …

KNM: Offer price may be reduced

KNM Group Bhd (KNMG MK, Hold, TP: RM0.90)
KNM Group Bhdhas not extended BlueFire Capital Group Ltd’s (Bidco) exclusivity period for due diligence but still aims to conclude talks in four weeks, raising speculation that a revised lower offer price could be in the offing for the takeover. KNM said although it had not extended the period, which expired yesterday Mar 22, it had agreed to wrap up negotiations with the parties involved by Apr 16. “An announcement will be made on the outcome of such discussions when they are concluded,” KNM said in a filing to Bursa Malaysia. (Financial Daily)

FBM KLCI correction phase may extend

Snapping a five-week winning streak, the bellwether FTSE Bursa Malaysia KLCI (FBM KLCI) settled at 1,296.60 last Friday for a weekly loss of 14.6-point or 1.1%.
In the short run, the correction phase may extend on persisting selling pressures from profit-taking momentum.

On the downside, we have set the first support line at  1,280, a mark down of 4.1% below the benchmark index’s Mar 11 peak of 1,334.34.However, we still believe that the ongoing stock market weakness could be just transitory before our Malaysian bourse resumes its uptrend to scale fresh highs going forward.

Bursa Malaysia next week and stock to watch

Stocks on Bursa Malaysia are expected to start off on a cautious note on Monday, March 22 after the FBM KLCI was unable to hold on to the key 1,300 level over the past week while trading volume has shrunk.
Concerns among investors would be the rising inflationary trend after the consumer price index for February showed a 1.2% increase on-year while it was unchanged from January.
However, over the longer term, Nomura Securities Research is positive about the outlook for Malaysia, as it sees the economy rebounding and still sees upside to the current earnings upgrade cycle.
On Wall Street, stocks slipped, weighed down by energy shares as crude oil prices tumbled under pressure from a rising U.S. dollar.
Renewed worries about Greece's debt problems sent the euro to a more than two-week low against the greenback and pressured oil and other commodity prices, according to Reuters.
The Dow Jones industrial average dropped 26.60 points, or 0.25 percent, to 10,752.57. The Standard & Poor&#…

KLCI today

Our benchmark FBM KLCI is likely to continue trading on an upward bias, extending its yesterday’s gain of merely 3-index points. This will be supported by the futures market which saw its spot month futures trading at 5-index points above the cash market.Much of the focus today would be on the pay-television operator, Astro All Asia Networks plc (Astro). Yesterday, major shareholders of Astro and parties acting-in-concert (PAC) have offered to take Astro private at RM4.30/share cash. The offer is at a 74 sen or 20.8% premium to the RM3.56 pre-suspension price. Astro’s shares will resume trading when market opens at 9.00am today. We believe there could be positive share price reaction to this offer, likely towards the offer price of RM4.30/share.

The U.S. market continued to march forward, ended 0.4% to 0.6% higher at the closing bell last night. Essentially, the constructive investor sentiments were built over an inflation report which showed inflation remains subdued amid an impro…

Bursa Malaysia - Further Profit-Taking Consolidation

Further Profit-Taking Consolidation
Stocks closed lower for the fourth straight session on Tuesday on continued profit-taking interest after the blue-chip benchmark index rallied to a two-year high.  The FBM KLCI was off 0.81 of a points to settle at 1,298.86, after easing from a mid-morning high of 1,304.43 and late afternoon low of 1,295.31 as losers edged gainers 361 to 290 on slower trade totaling 678.6mn shares worth RM1.06bn.

Revised Retracement Support at 1,292, Resistance at 1,308
The lessening negative market breadth amid reduced losses and slowingtrading`momentum indicate that stocks are moving  into a profit-taking consolidation phase, hence prices should trade sideways in the near-term.  As for the revised retracementsupports, the immediate level is at 1,292, matching the 38.2%  Fibonacci Retracement`(FR) of the 9 Feb low of 1,224 to the 11 March peak of 1,334, next at 1,279, the 50%FR level, and then the 61.8%FR at 1,266.  Immediate resistance will be at 1,308, the 23.6…