Thursday, December 31, 2009

20091231 1441 FKLI Mid Day Hourly Chart Study.

FKLI(Jan 2010) closed : 1271.5, changed : +1.5 point, volume : low.
Bollinger band reading : Neutral.
MACD Histrogram : edging upward.
Support : 1266.5level.
Resistant : middle Bollinger band, 1276 level.
Comment :
Currently trading at resistant level, market will try to break the middle Bollinger band and march higher and if this effort
failed, it may stay side way ranging.

20091231 1236 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2642, changed : +47, volume : low.
Bollinger band reading : bullish with further upside potential
MACD Histrogram : improving, buyer returned.
Support : 2630, middle Bollinger band level.
Resistant : 2650, 2670 level.
Comment :
Break and trade above crucial 2630 resistant level that turned into support shows some strength of the underlying market.
Further upside likely.

20091231 1035 Malaysia Corporate News.

Hunza Properties has bought four plots of freehold land in Penang for RM82m. The acquisition will enable the group to increase its landbank for future development and/or investment, at the same time continue its expansion plans in Penang. (BT) Please refer to our QT for further comments.

The race is on for Malaysian companies to win the hand of General Motors (GM) after the US carmaker ended a pact to sell Chevrolet cars in Malaysia with DRB-HICOM. Those rumoured to be in contention are Sime Darby, the Naza Group and Permaju Industries. Under its partnership with DRB-HICOM, Chevrolet sales were more than 3,000 units in a good year. However, they have since fallen to fewer than 1,000 units. (BT)

Proton has confirmed that its car-scrapping programme, Proton Xchange Programme, has been discontinued as the funding has been fully used up. The national car manufacturer said it had received a total of 25,862 applications from 10 Mar to 31 Oct, exhausting the funds provided by the government's economic stimulus plan even before the given yearend period. (Bernama)

DRB-Hicom aims to introduce its own hybrid car by 2012. Group director of automotive, Datuk Nik Hamdam Nik Hassan, said the company was currently in talks with three potential partners to manufacture the car and hoped to finalise the deal next year. On the discontinuance of existing JV between DRB-HICOM and GM, Nik Hamdam said, "We are having difficulty to agree on certain point of their business model. Both of us have different objectives." He said DRB-HICOM was looking to bid for stake in Proton once the opportunity arose. (Bernama)

The Naza Group targets to achieve sales of 25,970 units next year with major contribution coming from Kia vehicles. "2010 will be an exciting year for the Naza Group. We will be launching several Kia and Peugeot models that will appeal to all segments of the market," joint executive chairman SM Nasarudin SM Nasimuddin said. "Additionally, the domestic economy is expected to return to growth in 2010, which will be an added boost to our business and the overall automotive industry," he added. (Bernama)

Work on the Pahang-Selangor raw water transfer project has picked up pace with the government opening the tender for the Kelau Dam and related works. The bid documents will be available from Jan 5 to 19 and the closing date is on Mar 9. (Financial Daily)

CIMB Group is selling up to 65 properties that house its banking operations to the Employees Provident Fund (EPF) for RM302.4m in a related-party sale and leaseback deal. The group said the sale will raise cash for CIMB Bank's working capital, reduce its risk-weighted assets and property risks. The group is expected to make a gain of RM171m from the sale. (BT)

Local airlines are hopeful that next year will bring better days for the airline industry, with plans for capacity growth and aircraft delivery underway. Malaysia Airlines (MAS) will look to increase flight frequencies and add new destinations on the back of improving passenger traffic movement. Meanwhile, AirAsia group CEO Datuk Seri Tony Fernandes is optimistic about prospects for next year, with forward bookings looking good for Jan-10 and Feb-10. While AirAsia plans to introduce flights to new destinations in Indonesia, India and Maldives, Fernandes said the focus for the group's expansion will be with associate airlines, Thai AirAsia and Indonesia AirAsia. (BT)

The proposed partnership between AirAsia and Jetstar is nearing fruition after a year of talks and the deal will be announced in the first week of Jan-10. A media conference has been scheduled for Jan 6 in Sydney where both parties and Qantas will announce the details of a strategic agreement and how these parties will work “innovatively together’’ so as to drive greater cost efficiencies. (Starbiz)

Tune Talk expects to hit the 500,000 subscriber mark in two weeks, which is half of its target for its first year of operation. “We are ending 2009 with a resounding success and we believe 2010 will be even better. We attribute the overwhelming public response primarily to our unconventional marketing and communications strategy including our exciting Web-based approach,” said Tune Talk CEO Jason Lo. (BT)

MMC Corp, owner of both Port of Tanjung Pelepas (PTP) and Johor Port, is still waiting for the government's decision on the plan to rationalise their operations. According to an industry source, the outcome of recent talks on the issue will be submitted to the Transport Ministry soon. "The rationalisation proposal will also provide manufacturers savings in costs through more efficient port operations," the source said. (Bernama)

Media Prima (MPB) has to date received acceptance of more than 92.9m shares or 42.77% from New Straits Times Press (NSTP) shareholders as a result of the proposed takeover offer. This gives MPB 86.1% of the voting shares in NSTP. (Bernama)

Malaysian glove makers could continue exporting to the US after the Court of Appeals ruled in favour of the manufacturers over a patent tussle with giant firm Tillotson Corp. (Financial Daily)

Port operator Integrax has signed a deal with Vale International to provide transshipment services for the Brazilian mining company. The deal means that Integrax would have to invest about RM200m to expand the marine infrastructure and handling equipment at the terminal. Integrax will fund the expansion with internal funds and loans. It may even tap the capital markets for funds. (BT)

Rimbunan Sawit (RSB) plans to buy interests in nine plantation companies in Sarawak for RM286.1m to grow its plantation land bank. The purchase will be paid through the issuance of 28.33m RSB shares and 191.75m new irredeemable convertible preference shares (ICPS) at RM1.30/share. The completion of the deal will see RSB's total plantation land bank more than double from 31,645ha to about 91,000ha. (BT)

Kumpulan Hartanah Selangor (KHSB) said the Selangor state government has agreed to provide it with a grant of RM115m to relieve its burden. The grant could be in the form of land given to KHSB for free or as payment for claims made by the state. (BT)

Sapura Industrial, an automotive parts and components maker, says it will continue to refine quality and push for greater international standards to further penetrate overseas market. The company, which secured several customers recently from India and Brazil, is also looking at new markets in the Middle East. (BT, Bernama)

Ta Ann Holdings will further expand its oil palm plantations, especially in Sarawak, via landbank acquisitions, said group MD Datuk Wong Kuo Hea. The group has been on the lookout for available landbank to expand its existing 30,000ha landbank in an effort to become a medium-size oil palm plantation player. (Starbiz)

Shares of Sarawak Energy will be delisted from 5 Jan following the completion of its earlier VGO exercise. (Starbiz)

Wednesday, December 30, 2009

20091230 1816 FCPO EOD Daily Chart Study.

FCPO closed : 2595, changed : + 5 points, volume : Lower.
Bollinger band reading : Bullish but side way range bound likely.
MACD Histrogram : continue higher, buyer has yet to leave.
Support : 2555, middle Bollinger band level.
Resistant : 2630 level.
Comment :
Profit taking activities continue to take place today with lower volume changed hand. Chart still show that the uptrend market remained intact with some temporary side way range bound likely.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20091230 1725 FKLI EOD Daily Chart Study.

FKLI closed(spot month) : 1270, changed : -8 points, volume : slightly lower.
Bollinger band reading : bullish but side way ranging likely.
MACD Histrogram : turned lower, long position profit taking.
Support : middle Bollinger band, 1256 level.
Resistant : 1279.5 level.
Comment :
Indeed a pullback effect due to overbought condition. Long position profit taking. Expecting market to trade side way ranging with possible further downside correction. 
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target

20091230 1254 FKLI Mid Day Hourly Chart Study.

FKLI(Jan 2010) closed : 1273, changed : -3 points, volume : High.
Bollinger band reading : bearish with possible side ways.
MACD Histrogram : dropping slowly, seller in charge.
Support : 1270.5, 1266.5 level.
Resistant : 1276, 1279.5 level.
Comment :
Hourly chart, trend still up. Side way range bound likely to continue. Regional market traded mixed.

20091230 1238 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2590, changed : unchanged, volume : Lower.
Bollinger band reading : neutral, side way range bound.
MACD Histrogram : dropping slowly, both buyer and seller in holiday mood.
Support : 2570, 2555 level.
Resistant : 2630 level.
Comment :
Nor here nor there, low volume, hoilday mood market today. Hourly chart wise, market likely to stay side way range bound with some
downside biased. 

20091230 1028 Malaysia Corporate News.

Malaysia’s CPO prices are expected to stabilise at RM2,300-RM2,700/MT next year, supported by steady global demand, lower supply and new advances in oleochemicals research. MPOB chairman Datuk Sabri Ahmad said 2010 will be a good year for CPO prices as output is not expected to be as good as this year due to tree stress, pricey fertiliser as well as robust demand from the US. Palm oil production is expected to touch 17m-17.5m MT this year compared with 17m MT last year. (BT)

The board of EON Capital is expected to meet tomorrow to decide if it wants to be engaged in a takeover talk with Hong Leong Bank (HLB), sources said. EON Cap's seven-member board must now decide because it will also need the central bank's approval if it wants to talk to HLB, industry sources said. Primus, EON Cap’s major shareholder with a 20% stake, can potentially block the deal by voting against the decision to discuss with HLB. Yet, sources said the Hong Kong-based fund may have to let HLB present its offer and allow shareholders to decide. (BT)

Primus Pacific Partners Ltd, the major shareholder of EON Capital (EON Cap), is said to have made a last minute attempt to mount a counter bid to Hong Leong Bank’s proposed  takeover. However, sources indicated that Primus’ invitation to Temasek Holdings was not likely to materialise as Temasek had declined the offer for a joint bid. Temasek is widely known to be deliberate and not ad-hoc in its decisions. It already has a 29.3% stake in the Alliance Bank and may want to tread carefully if it wants to enlarge that footprint. (Starbiz)

CIMB Islamic Bank has listed a RM2bn Islamic bond programme on Bursa Malaysia to promote the growth of Islamic finance in the country. This makes it the first ringgit sukuk to be listed on the local bourse. "The listing of our Islamic sub-debt on Bursa further strengthens our commitment to the development of the Islamic finance industry, in this case, the Islamic debt capital market," CIMB Islamic CEO Badlisyah Abdul Ghani said. 
  • Bursa registered its first sukuk listings by Petroliam Nasional and Cagamas MBS in Aug this year, followed by GE Capital's US$500m (RM1.7bn) sukuk listing in Nov. (BT)
DRB-Hicom and General Motors have mutually agreed to discontinue their two-year-old joint venture to import and distribute Chevrolet vehicles in Malaysia, effective 1 Jan next year. No reasons were given for ending the partnership. (BT)

Perodua is confident that its car sales will not be affected following the implementation of the Asean Free Trade Area (Afta) in Jan. Its MD Datuk Syed Hafiz Syed Abu Bakar said based on the present situation, orders for its latest model, the Alza, have reached 15,000 units this month. "More than 50% of Malaysians have an income of less than RM3,000 monthly. Even with the implementation of the Afta, I do not expect the price of a foreign car to fall, as its manufacturing cost is increasing. Apart from that, local cars are still able to fulfill local consumers' preference," he said. (Bernama)

Linear Corp has won a RM1.7bn project from Global Investment Group Inc of Seychelles to build a district cooling plant in Manjung, Perak for the King Dome project. Linear will start work on the project 24 months from the approval of the development plan by the Manjung District Council. (BT)

Green Packet has fixed the issue price of its proposed private placement of 59.75m shares at RM1.15 per share. The issue price represented a discount of 5.57% to the weighted average market price of RM1.2178 from 21 Dec to 28 Dec. (Financial Daily)

Parkson’s six department stores in Vietnam posted the fastest sales growth this year, jumping 30% compared with 10% in China and 15% in Malaysia, the Saigon Times Daily reported. Parkson plans to open three more department stores in Vietnam next year. (Bloomberg, Financial Daily)

Ta Ann Holdings’ unit, Multi Maximum, will buy plantation firm Europalm for RM20.5m. Europalm owns 1,500ha of plantation land at Jemoreng Land, Sarawak, and has been awarded another 1,113ha at Seredeng Land. (BT)

Handal Resources has bagged a RM17.5m contract from Petronas Lubricants International for the engineering, procurement, construction and commissioning of 22 new storage tanks for the Malacca lube blending plant capacity improvement project. Work will start in early Jan 10 for 14 months. (BT)

YNH Property plans to launch two luxury projects, Fraser Residence in Jalan Sultan Ismail and Kiara 163 in Mont'Kiara, which are worth a combined RM1.6bn, next year. Its head of corporate services, Daniel Chan, said the company was optimistic of good response, given the product offering and location. (BT)

Hiap Teck Venture has entered into a share sale agreement with Datuk Law Tien Seng, Lau Chin An and Lee Ching Kion for the proposed acquisition of a 55% stake in Eastern  Steel for RM110m. The purchase is to be funded via internally generated funds. The proposed acquisition will enable Hiap Teck to become an integrated player in both upstream and downstream operations in the local steel industry. (Bernama)

Technodex, a software developer, plans to move its shares to the Main Market next year to woo more investors. MD and CEO Nigel Lee Siew Tat said Technodex is in the midst of processing the application. "This would also enable us to attract bigger market players and help us raise more funds. It is a normal thing to do for such growing companies," he said. Technodex aims to register a 20% increase in revenue and profit for FYE6/10, largely to be driven by its online business community. (BT)

Majuperak Holdings has sold several parcels of industrial land and buildings in Penang to Alliance Contract Manufacturing for RM13m cash to pare debt and pay retrenchment benefits. (BT)

Seacera Tiles has proposed a private placement of up to 5.3m shares representing 10% of its existing paid-up capital. (Financial Daily)

Pan Malaysia Capital’s failed bid to convert its universal broker (UB) status to a standalone investment bank (IB) was due to the firm’s failure to comply with the prerequisite conditions outlined under the stockbroking consolidation plan introduced almost four years ago. A source said the only route now for stockbrokers to become an IB is to acquire an existing IB status player. (Starbiz)

Ho Hup Construction had instructed an independent firm to conduct a valuation of the parcels of land it planned to dispose. It said the market value for the first plot of land in Balakong was valued at RM30 psf while the parcel of land at Bukit Jalil was valued at RM50 psf. With the disposal of the lands, Ho Hup is expected to realise an estimated gain of RM9m. It was reported that there was a growing rift between the company’s management and a major shareholder over the valuation of the two plots of land. (Starbiz)

Tuesday, December 29, 2009

20091229 1819 FCPO EOD Daily Chart Study.

FCPO closed : 2590, changed : - 2 points, volume : Lower.
Bollinger band reading : Still bullish but not promising.
MACD Histrogram : continue higher, buyer has yet to leave.
Support : 2555, middle Bollinger band level.
Resistant : 2630 level.
Comment :
Profit taking activities push FCPO price lower after open gap up around the resistant level. Daily chart still look positive but profit taking may continue towards tomorrow and stay side way range bound. 

When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20091229 1736 FKLI EOD Daily Chart Study.

FKLI closed : 1278, changed : +4 points, volume : Lower.
Bollinger band reading : Still bullish with a little overbought.
MACD Histrogram : Continue higher, buyer still in.
Support : 1270, middle Bollinger band.
Resistant : 1283 level.
Comment :
Spot month FKLI candle closed a little above the upper Bollinger band suggest that market could be in overbought condition with possible pullback effect happen anytime. Market could trade side way range bound from here for FKLI spot month. Looking at the volume transacted, trader might consider trading Jan 2010 contract that registering higher volume.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20091229 1345 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1276, changed : +2 points, volume : low.
Bollinger band reading : still bullish.
MACD Histrogram : getting weaker, buyer locking in profit.
Support : 1271, middle Bollinger band level.
Resistant : 1280, 1286 level.
Comment :
Expecting market to trade side way range bound with profit taking activities to continue in the second half session.

20091229 1333 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2611, changed : +19 points, volume : low.
Bollinger band reading : bullish but could go side way range bound.
MACD Histrogram : getting lower slowly, mild profit taking.
Support : 2606, 2590, 2560 level.
Resistant : 2630, 2670 level.
Comment :
Higher overnight soy oil futures price lead crude palm oils futures price to gap up to the resistant level followed by profit taking activities. Chart wise, FCPO might need some rest by going side way range bound or even downward(continue profit taking) before gathering enough strength to climb up further.

20091229 1111 Malaysia Corporate News.

The Association of Banks in Malaysia (ABM) said that banks and other card issuers would collect the service tax from cardholders and pay the sum to the Director-General of Customs and Excise. The service tax becomes chargeable on the anniversary date of issue, or upon renewal of the card. The service tax will not be imposed on debit cards, petrol cards, closed-community charge cards, loyalty cards and E-money such as Touch 'n Go. Banks and other card issuers are allowed to enter into arrangements under which cardholders may apply for redemption/reward points or rebates towards payment of the service tax. (BT)

Gamuda is not ruling out the possibility of cost increases caused by delays related to land acquisitions for the electrified double-tracking project (EDTP) although it is not planning any cost revision at the moment. Group MD Datuk Lin Yun Ling, however, expressed optimism that such complications will be resolved soon with the remaining land in Penang scheduled to be handed over in the coming months. “With the extension of time, the new completion date has been pushed to 2014,” he said. (Financial Daily)

Malaysia is getting closer to reaching its 50% target of broadband penetration rate by 2010 in the domestic sector, having reached 31.4%, surpassing the 30% target set for this year. Minister of Information, Communications, Culture and Arts Datuk Seri Dr Rais Yatim said, “I am confident that the 50% target by end-10 will be an easy reach. Indeed, we might surpass the expectation.” (Bernama)

Celcom (Malaysia) has changed its name to "Celcom Axiata". The name change is in line with the Axiata Group’s branding strategy to fully leverage Celcom’s position as part of a regional telco. This is also in line with other Axiata subsidiaries. (BT)

Palm oil climbed for a second day after a gain in crude oil increased the appeal of the tropical commodity as an alternative fuel. The price “most probably will maintain its current level for this week,” Mona Surya, a director at PT Perkebunan Minanga Ogan, a palm oil producer, said. (Bloomberg, Financial Daily)

The acceptance rate from the total voting shares for the takeover of The News Straits Times Press (M) (NSTP) by Media Prima has passed 79% and the delisting of the former will proceed. "We want to encourage the swap of NSTP shares for Media Prima shares," Media Prima group MD Datuk Amrin Awaluddin. The delisting process would hopefully be completed by 1Q10, Amrin said. (StarBiz)

Astro’s subsidiary, Digital Five, has secured an RM8.9m contract for the supply and licensing of a content provider gateway software system to Saudi Bells Telecom Company LLC (SBC). It will build and develop the system within the Middle East and North of Africa territories. (Bernama)

Malaysia Airports Holdings, which operates the KL International Airport (KLIA), reported a 16.7% increase yoy in international and domestic passenger traffic in Oct for the country's main international airport. Data provided by MAHB showed 18.8% surge yoy to 1.76m international passengers for KLIA for Oct while the domestic passengers was up by 12.6% to 848,656. The company said there was a total 15.7% increase in passenger traffic to 4.48m for other airports operated in Malaysia and abroad for the month under review. It added that the total cargo movement for KLIA increased by 11.1% to 57.53m kg with international cargo increasing by 10.7% to 52.65m kg while domestic cargo rose 15.9% to 4.87m kg. (StarBiz)

AirAsia has incorporated a wholly-owned subsidiary know as Asia Air Ltd for the purpose of facilitating the airline's business transactions. The airline said it has also opened an office in London at 41, Chalton Street. (Starbiz)

The Health Ministry's move to impose a minimum price for cigarettes from 1 Jan is expected to lead to an increase in the smuggling of cheap cigarettes, which this year amounted to RM55.4m. Customs director-general Datuk Seri Ibrahim Jaapar said directors from all customs branches are discussing "strategic steps" to enforce the new decisions, which include monitoring of small retailers for illegal cigarettes. (The Sun)

No-smoking may be made a condition for youth and students to receive aid from the government. Youth and Sports Minister Datul Ahmad Shabery Cheek said the proposal was raised as many people, including youths and students, could still afford to buy cigarettes despite several price hikes. (Bernama, The Sun)

Malaysia Rating Corp (MARC) has revised WCT's bond ratings outlook to "developing" from "negative" as concerns regarding the latter's ability to weather the setback from a cancelled project decreased. 
  • MARC said that WCT has written back all of its profits in relation to the terminated Nad-Al Sheba race-course project and has settled its performance security deposits of RM218.6m.
  • The company has shown it could replenish its order book, which now stood at RM3.3bn.(Starbiz) 
General insurer Tahan Insurance Malaysia, currently under Bank Negara Malaysia's control, will call for bids through an open tender for its entire business in the first week of Jan 10. Phoon Soon Keong, a Bank Negara appointee now heading the insurer said, "We expect to take about four weeks (for the open tender process) and will then evaluate (the offers). Within another four weeks, we should be able to start negotiating with the selected parties." This sale exercise will be structured as an asset sale as opposed to a share sale, with Tahan eventually becoming a dormant company holding the proceeds from the sale of its general insurance business. Phoon expressed hopes that the exercise would be completed by Jun 10, adding that Bank Negara would decide on the final buyer. (BT)

Pertamina has lost its exclusive right to distribute subsidised oil products in 2010 after Petronas and a local firm PT Aneka Kimia Raya (AKR) won supply tenders. Petronas has won the right to distribute 128,547 barrels of subsidised low-octane petrol in Medan next year. AKR will also distribute 335,328 barrels of subsidised diesel oil in Lampung, Banjarmasin and Pontianak. (Reuters)

Octagon Consolidated has teamed up with Bahrain-based Tadhamon Capital BSC to construct and operate a 40MW waste-to-energy plant in Colombo, Sri Lanka. Under the agreement, Tadhamon and Octagon’s subsidiary, Green Energy and Technology, will hold 95% and 5% respectively of the new SPV with a paid-up capital of US$100. (Financial Daily)

Integrax’s subsidiary PT Indoexchange Tbk (INDX) plans to raise funds through the Indonesian capital market in the immediate future and has submitted a proposed quasireorganisation scheme to the relevant Indonesian authorities last week. To date, Integrax holds 70.3% of the issued and paid-up capital of INDX. (Bernama)

Crest Builder Holdings’s subsidiary, Crest Builder Sdn Bhd, has won a RM175.5m job to build two towers of 40-storey serviced apartments in Kuala Lumpur. The job is to be completed by 1 Jan 12. The subsidiary won the contract from Messrs Exceljade Sdn Bhd.(BT)

Pan Malaysia Capital, a member of MUI group controlled by tycoon Tan Sri Khoo Kay Peng, announced yesterday that the Ministry of Finance has “refused” to grant its subsidiary, PM Securities, a merchant banking licence or a restricted merchant banking licence. No reason for the rejection was disclosed. Obtaining an investment banking licence was said to be one of the major steps towards bringing back the glory days of the MUI group. (Financial Daily)

KPJ Healthcare’s shares will be suspended from 4 Jan 10 to facilitate the implementation of its 1-for-2 share split exercise. (Financial Daily)

Monday, December 28, 2009

20091228 1833 Malaysia Corporate News.

Sapura Crest unit gets RM1.5bn worth of PSC jobs
SapuraCrest Petroleum Bhd’s wholly-owned subsidiary, TLO Offshore Sdn Bhd, has received confirmation that it has been awarded a joint-contract for the provision of works and services to 11 Petronas production sharing contractors (PSCs) for the transportation and installation of offshore oil and gas facilities and structures from 2010 to 2012. “The price for the confirmed scope of works in 2010 is approximately RM1.5bn. Sapuracrest said the works for the PSCs were for a duration of three years, from 2010 to 2012, with options for two further extensions of one year each. (Starbiz)

Mah Sing to sell office building for RM226m
Mah Sing Group Bhd has proposed the en bloc sale of 278,182 sq ft of a 20-storey grade A commercial building, including 301 car park bays in the east wing of the Icon@Tun Razak, to T.S. Law Realty Sdn Bhd for RM226.5m cash. In a filing with Bursa Malaysia last Thursday, Mah Sing said the Icon@Tun Razak was a freehold purpose-built office building by owned its subsidiary, Star Residence Sdn Bhd. “The group pursued the proposed en bloc sale to ensure that it will be able to maintain its earnings, net assets and cashflow. “And Star Residence offers to take up the tenancy of the Icon@Tun Razak for a period of three years commencing from the actual vacant possession date, which shall correspond with the date of the sales and purchase agreement. “Star Residence intends to lease the sale property for rental income in order to offset rental payable to the purchaser,” it said. With the proposed en bloc sale, the Icon @ Tun Razak is fully sold. (Starbiz)

Petra Perdana exec director seeking to stop sale of balance stake in Petra Energy
Petra Perdana Bhd has received an interim ex-parte order by the High Court of Malaya fixing an inter-parte hearing on 11 Jan, 2010 on the application of Shamsul Saad to stop the sale of the remaining 29.59% stake in its associate, Petra Energy Bhd. In a statement to Bursa Malaysia last Thursday, Petra Perdana said the order had named the company, Tengku Datuk Ibrahim Petra Tengku Indra Petra, his wife Datin Che Nariza Hashim, two other board directors Wong Fook Heng and Tiong Young Kong and TA Securities Holdings Bhd as defendants. The order is to restrain Petra Perdana, Tengku Ibrahim, Nariza, Wong, Tiong and any agents appointed by Petra Perdana as placement agent, from divesting the remaining shares in Petra Energy until an EGM or the final disposal of the suit is held, whichever is earlier. Petra Perdana is now awaiting further details of the suit and is seeking legal advice pending further announcements. (Starbiz)

EPF may back Hong Leong’s EON bid
The Employees Provident Fund (EPF) may back a deal to merge the country’s sixth and seventh biggest banking groups if it thinks the price offered is attractive. The pension fund holds 10.7% of EON Capital Bhd (EONCap), which is being eyed for a takeover by Hong Leong Bank Bhd. “If the price is right we will consider selling” said a source close to the EPF. (BT)

Ho Hup major shareholder opposes sale
Ho Hup Construction Bhd’s second largest shareholder Lo Chee & Sons Sdn Bhd (LCS) is opposing the board’s proposed sale of two tracts of land. LCS which holds 24.7% equity stake, put up a notice to Ho Hup’s shareholders in two major newspapers urging shareholders not to support the sale, contending that the disposal price is “significantly undervalued”. The notice was published last Friday before the EGM slated to be held on Thursday during which shareholders will cast their votes on the resolution. (Financial Daily)

Hock Heng plans overseas factory
Hock Heng Stone Industries Bhd, a maker of dimension stones that is slated for a listing next year, plans to set up a factory abroad as it seeks to expand business. Low, who started the family business, could not divulge details because the company has yet to release its prospectus. It targets to complete its IPO and list shares on the Main Market by the end of March 2010.(BT)

CB Industrial refutes allegations, demands apology
CB Industrial Product Holding Bhd (CBIP) said it is at risk of losing hundreds of millions of ringgit in future jobs, due to a published report by a Chinese daily that suggests it was involved in some form of corruption. In a hastily arranged press conference in Shah Alam, CBIP managing director Lim Chai Beng said, "The truth must be told soonest possible. We need to stop the damage (to the company). "CBIP, via its subsidiary Modipalm Engineering Sdn Bhd (MESB), has demanded a retraction of the defamatory and highly damaging allegation in the said article and a full-page apology to be published by tomorrow.’’ He refuted allegations in the news reports that insinuate that its Modipalm mills are of inferior quality. According to a translation sheet provided by CBIP, the daily quoted 1Malaysia Graduates Club secretary Ezaruddin Abd Rahman as alleging there was corruption involved in Felda awarding jobs to MESB to build 11mills worth a combined RM160m. (BT)

20091228 1811 FCPO EOD Daily Chart Study.

FCPO closed : 2592, changed : +38points, volume : Higher.
Bollinger band reading : Sentiment turned slightly positive.
MACD Histrogram : recovering, buyer returned but at a small scale.
Support : 2555, middle Bollinger band level.
Resistant : upper Bollinger band, 2630 level.
Comment :
FCPO managed to trade higher despite relatively low volume transacted last Thursday and today. Daily chart wise, FCPO still trading in an uptrend market but a little doubt here about the
upward momentum sustainability will be the low volume transacted. Hope that fresh buying interest will come in soon. On the other hand, both ITS and SGS cargo survey recorded a drop of 11.4% and 14.5% in crude palm oil export for the period of 1~25 Dec 2009 respectively.
When to buy : buy at support/weakness/break up with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20091228 1732 FKLI EOD Daily Chart Study.

FKLI closed : 1273.5, changed : +9.5 points, volume : Higher.
Bollinger band reading : Just turned bullish.
MACD Histrogram : break above zero line, buyer rule.
Support : middle Bollinger band.
Resistant : 1276, 1283 level.
Comment :
Finally break up from the triangle with supporting volume. Further upside likely.
When to buy : buy at support/weakness/break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20091228 1256 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1272.5, changed : +8.5 points, volume : high.
Bollinger band reading : bullish with possible pullback.
MACD Histrogram : went higher and highe, buyer in charge.
Support : 1267.5, 1264.5 level.
Resistant : 1276, 1280 level.
Comment :
Bullish chart with a little overbought. With price closed above the upper Bollinger band, FKLI could take some rest before continue climbing up further. Having said that it can still potentially push up further without a rest taking today's high supporting volume into consideration.

20091228 1240 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2603, changed : +49 points, volume : high.
Bollinger band reading : bullish with possible pullback.
MACD Histrogram : edging up slowly, buyer is still around.
Support : 2580, 2560 level.
Resistant : 2620, 2670 level.
Comment :
A bullish chart but near resistant level with possible pullback before marching higher.

20091228 0838 FCPO Weekly Chart Study.

FCPO ended the week 66 points lower forming a doji bar candle. Price still closed above the middle Bollinger band with the band width expanding = bullish with further upside potential. However, MACD Histrogram has stop rising and turned lower = long position trade decided to lock in profit. Overall, the chart still looks healthly for a near term uptrend with possible correction taking place. Immediate support stands at 2520, 2430 level and resistant rest at 2630 and 2670 level.

20091228 0828 FKLI Weekly Chart Study.

FKLI closed the week up 4 points with higher volume transacted compare to last week. The doji weekly candle still traded above the middle Bollinger band with the band width contraction suggesting a side way range bound upside biased market. On the other hand, the MACD Histrogram getting lower by a fraction telling us that seller has yet to leave the market. Overall, expecting a side way ranging market ahead of the last week of the year with support comes in at the 1250 and middle Bollinger band level where resistant appears at the 1270 follow by 1276 level.

Thursday, December 24, 2009

20091224 1856 FCPO EOD Daily Chart Study.

FCPO closed : 2554, changed : +54 points, volume : lower.
Bollinger band reading : neutral with side way range bound likely.
MACD Histrogram : just reverted upward slightly, buyer returned but volume just too low.
Support : middle Bollinger band, 2490 level.
Resistant : 2570, upper Bollinger band level.
Comment :
Too early to call for a resume uptrend movement due to today's thin volume traded. Expecting market to trade side way range bound waiting more volume to come back into the market for confirmation of market direction.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target

20091224 1748 FKLI EOD Daily Chart Study.

FKLI closed : 1264, changed : -0.5 point, volume : High but lower than yesterday.
Bollinger band reading : neutral, side way ranging likely.
MACD Histrogram : continue to improve, buyer still in the market.
Support : the lower upward triangle line, 1255 level. 
Resistant : the upper downward triangle line, 1269.5 level.
Comment :
No break out happen today. Side way ranging likely to continue until a break out(up or down) occurs.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20091224 1252 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1264.5, changed : +1 points, volume : high.
Bollinger band reading : bullish with further upside potential.
MACD Histrogram : stay nearly flat with activities slightly sided to the buyer.
Support : middle Bollinger band level.
Resistant : 1266.5, 1269.5 level.
Comment :
Hourly chart wise, FKLI do looks bullish with further upside potential.

20091224 1239 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2531, changed : +31 points, volume : low.
Bollinger band reading : neutral, side way range bound likely.
MACD Histrogram : improving, short position locking in partial profit.
Support : 2500, lower Bollinger band level.
Resistant : 2550, upper Bollinger band level.
Comment :
Low volume upward correction taking place. Side way range bound market likely to continue.

20091224 0938 Malaysia Corporate News.

Prime Minister Datuk Seri Najib Razak announced yesterday that the real property gains tax (RPGT) will now only be applicable to properties sold within five years of their purchase. The government will be foregoing about RM200m in revenue. He said, “This policy was also decided as the government wants to see stronger growth in the property sector next year”, adding that the decision was made following requests from the business sector and Hua Zong (Federation of Chinese Associations of Malaysia). “I have taken note of some of the requests which are reasonable, sensible and fair, and the government will give some positive considerations”, he said. He commented that the property sector had shown signs of improvement but the government felt that it required further impetus so that it could continue to grow from strength to strength. (The Sun)

Local bank consolidation may help the industry withstand new competition emerging from the issue of new banking licence to foreign banks. Institute of Bankers Malaysia Council Chairman Tan Sri Azman Hashim said consolidation was a natural process and the bank's size did not matter if it can sustain on its own. "But, in our market today, there may be one or two banks which needs to be bigger to be able to stand alone and EON Bank maybe one of it," he said. Azman said in order for Malaysian banks to compete globally it was inevitable for the local market to open up to foreign banks. (Bernama)

EON Bank will carry on with its transformation plan amid the takeover talk that involved shareholders of its holding company. "We will continue to aggressively pursue our aspirations to build 'The preferred Malaysian bank' for our customers," CEO Michael Lor said. Two major shareholders of EON Capital, the bank's holding company, this week said they were granted the central bank's approval to start discussion with Hong Leong Bank on a potential share sale. (BT)

The Sabah Land Development Board (SLDB) is developing oil palm plantations covering some 5,700 hectares in the interior district of Nabawan and also plans to set up a palm oil mill there next year. CEO Jhuvarri Majid said the state-owned agency had started land clearing and terracing at the 2,104-hectare site at Pandewan while land clearing at the 3,600-hectare land in the Nabawan Settlement Scheme area would start sometime early next year. "We have also identified a 40-hectare site for the palm oil mill, and all the necessary approvals from relevant agencies have been obtained. "We will try and start work on the mill by mid-2010," he said.
  • He said the mill would have the capacity to process 60 tonnes of fresh fruit bunches per hour and serve the smallholders and new estates in Pandewan and the Scheme as well as other estates that would also be opened up soon. 
  • He said SLDB had identified land for the upcoming estates in Sinua (4,800 hectares), Lumini (3,600 hectares), Labang (2,000 hectares) and Suwatalun (2,000 hectares). "In all these areas, including Pandewan and the Scheme, SLDB would develop the land on a joint venture with the people. (Bernama)
The Rubber Industry Smallholders Development Authority (Risda) plans to introduce a new system, Sistem e-TS, or One Touch Point, to hasten applications from the smallholders to replant rubber within a day. Deputy Rural and Regional Development Minister, Datuk Hasan Malek, said the system would allow Risda to improve its approval process, payment, distribution of seeds and fertilisers under its rubber replanting programme. He said the system was part of 1Malaysia concept to help the rakyat, especially smallholders. (Bernama)

Axiata Group Bhd has its eyes set on becoming the first among equals in the regional telecommunications scene by 2015. Its journey to become a champion is split in three phases. The first phase, which has been completed, was about setting the foundations right. The second phase, which will be between 2010 and 2012, is about competing on par with its regional peers such as SingTel and Hutchison, while the third phase (2013-2015) will be about becoming the region's top mobile operator group. The company has allocated not more than RM3.5bn as capital expenditure next year, the bulk of it will be for its Indonesian operations. (BT)

Mah Sing Group’s RM2.2bn property project in Wujin District, China’s Jiangsu province, will mark the company’s foray as a serious player in the global market, said MD-cum-group chief executive Tan Sri Leong Hoy Kum. (StarBiz)

UASC's Al-Mutanabbi became the first vessel to call on the first phase of the new Red Sea Gateway Terminal at Jeddah Islamic Port (JIP). MMC Corp, which holds an associate stake in the Saudi riyal 2bn terminal (100 Saudi riyal = RM89.23), said operations started on Tuesday with the opening of its first berth. Its chief executive officer (international), Feizal Ali, said the project marked MMC's first foray into the ports and logistics business outside of Malaysia. "We are confident this project will be a success and will provide MMC with a healthy long-term recurring income," he said. JIP handles approximately 73% of Saudi Arabia's total container trade and is located close to the southern entrance of the Suez Canal. (Bernama)

Sunway Developments Pte Ltd, a unit of Sunway Holdings, has entered into a joint venture agreement with Hoi Hup Realty to set up Hoi Hup Sunway Property. The proposed joint venture would undertake a residential property development project on a parcel of freehold land in Singapore. The group said the proposed project was projected to generate an estimated gross development value of RM1.03bn. Sunway would fund its investment in the joint venture via bank borrowings and internally generated funds. (Bernama)

Scomi Group has appointed Hilmy Zaini as its country president for Brazil effective 1 Jan 10, allowing the new group to focus on the country in tailoring product offerings and exploring opportunities. Hilmy was previously Scomi Engineering president, a unit of the group which would now be helmed by Syahrunizam Samsudin, Scomi said. Syahrunizam was formerly the COO and CFO for Scomi Engineering. (Bernama)

Yoong Onn Corporation (YOC), a home linen player, aims to achieve double-digit growth for FY6/10 following better economic outlook. MD Roland Chew said the retail sector had started to improve as the impact of the global financial crisis begin to ease, giving plenty of room to increase sales. "A rebound in consumer spending and income due to the economic recovery is expected to boost sales further," he said. (Bernama)

Pulai Springs has been co-awarded the bid for a plot of development land located at Guandu District, Kunming by the Government of Kunming. (TheStar)

Permodalan Nasional Bhd (PNB) has confirmed that it has bought the 22-storey Kenanga International Building in Kuala Lumpur from Injaz AsiaEquity Property. (BT)

PNB Darby Park Executives Suites Kuala Lumpur, which is owned by Permodalan National Bhd, has won the 2009 "Best Hotel Apartment" award for offering high-quality facilities and services to travelers. (BT)

The Franchise Blueprint, which would guide the development of the industry until 2020, is due to be revealed in the second quarter of 2010. (BT)

Hai-O Marketing aims to sell 30,000 units of various products worth RM40m monthly before the end of next year. Hai-O Enterprise MD Tan Kai Hee said the company presently sold about 20,000 units of various products worth RM30m monthly. (BT)

Coastal Contracts said its wholly-owned subsidiaries, Coastal Offshore (Labuan) Pte Ltd and Bonafile Shipbuilders & Repairs, have collectively secured RM49.2m of contracts. (BT)

Ahmad Zaki Resources has received the letter of award from Tenaga Nasional for the Hulu Terengganu Hydroelectric Project with preliminary works valued at RM49.5m. (StarBiz)

Wednesday, December 23, 2009

20091223 1828 FCPO EOD Daily Chart Study.

FCPO closed : 2494, changed : -21 points, volume : higher than yesterday.
Bollinger band reading : bearish but possible side way range bound.
MACD Histrogram : getting lower, seller took charge.
Support : 2474, lower Bollinger band level.
Resistant : middle Bollinger band, 2550 level.
Comment :
Despite the bearish chart reading, FCPO could possibly trade side way ranging or even do a upward correction due to the reason today's daily chart candle ended with a doji with the Bollinger band stay nearly unchanged and also closed the day above the 2490 support level.Anticipating a side way range bound downside biased market.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with larger cut loss and profit target.

20091223 1809 FKLI EOD Daily Chart Study.

FKLI closed : 1263.5, changed : +6 points, volume : 3 weeks high .
Bollinger band reading : neutral, side way ranging market.
MACD Histrogram : improved better, buyer returned to the market.
Support : the lower upward triangle line,lower Bollinger band.
Resistant : the upper downward triangle line. upper Bollinger band.
Comment :
FKLI rebounded upward with ultra high volume transacted recovered back some of the losses from the past 3 days. It seems that market still trading within the triangle tighter range and hopefully that tomorrow we could see some break out action. Oh Santa! Hope that you come tomorrow with a big present to all of us. Ho ho ho !
When to buy : buy at support/weakness/break up with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with quick cut loss and profit target.

20091223 1456 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1259.5, changed : +2 points, volume : low.
Bollinger band reading : side way range bound.
MACD Histrogram : recovered slightly, neutral reading.
Support : 1257.5, 1251.5 level.
Resistant : upper Bollinger band, 1263 level.
Comment :
Another quite day with continue side way range bound likely.

20091223 1233 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2502, changed : -13 points, volume : low.
Bollinger band reading : bearish.
MACD Histrogram : turning upward slowly, partial short position profit taking.
Support : 2490, 2470 level.
Resistant : 2530, middle Bollinger band level.
Comment :
Low volume FCPO traded marginally lower due to weaker soy oil and Dalian crude palm oil futures price. With the MACD Histrogram forming a rounding up formation may suggest that FCPO to consolidate higher before continue with further downward movement can be seen. Overall a still a berish market with upward correction likely.

20091223 1003 Malaysia Corporate News.

Malaysia Airlines (MAS) is planning to raise RM2.67bn through a rights issue to partly fund the purchase of new planes. The national carrier has proposed a one-for-one rights issue of 1.67bn new units at a price of RM1.60 per share. "Proceeds will be used for the acquisition of wide-body aircraft and working capital," MAS MD and CEO Tengku Datuk Azmil Zahruddin said. Khazanah Nasional and Penerbangan Malaysia will undertake their entire entitlement totalling 69.3% of shares held in MAS. 
  • Both the rights issue and aircraft acquisitions are expected to be completed by the end of Mar 10. The airline's gearing will initially fall to 1.3x after the rights issue and aircraft acquisition in 2010, but peak at 2.1x in 2011 with the delivery of the six A380s. (BT)
The Kerala state government has invoked a one-year ban on palm oil imports, primarily from Malaysia and Indonesia, via Cochin Port to protect coconut farmers' interests in the southern state. Cochin Port Trust chairman N. Ramachandran said the ban had impacted cargo throughput at the state's premier port and port revenue. (Bernama)

The property sector may experience an oversupply next year due to a burst of launches from developers that have been held back since the start of the global economic crisis. Association of Valuers, Property Managers, Estate Agents and Property Consultants in the Private Sector, Malaysia (PEPS) president James Wong said developers would need to come up with "creative ways" to maximise sales.
  • Ho Chin Soon Research director Ho Chin Soon concurred, adding that there would be a pent-up from buyers that had been eager to get into the housing market.
  • Wong said property transactions for 2010 were expected to be better than 2009, adding that the residential sector would see the biggest growth.
  • Wong added that the secondary market for upmarket condominiums would remain soft until the second half of 2010 because of existing oversupply and new launches. "However, the secondary market for landed residential property remains firm," he said.
  • Wong also said the shopping complex and office building sectors would face "some oversupply". (Starbiz)
Gamuda said the government has given it and consortium partner another 11 months to complete building the electrified double-track rail project linking Ipoh and Padang Besar. They have until December 2013 to complete the project, from January 2013 originally. Work progress was behind schedule due to delays in design approval and late handover of land by the authorities. Under the terms of the contract, all land should be handed over to the consortium early this year but to date, only 90% had been handed over. (BT)

Genting Singapore PLC has named Tan Hee Teck, now chief executive officer (CEO) of subsidiary Resorts World at Sentosa (RWS), as president and chief operating officer of the group from January 1 2010. Hee Teck replaces Justin Tan Wah Joo, currently managing director of Genting Singapore, who will retire. Genting Singapore also said its chief financial officer (CFO) Jaclyn Loy Swee Im has resigned to pursue new opportunities. She will be replaced by jLee Shi Ruh, who is currently vice-president (finance) of Genting Malaysia. (BT)

Harrah's Entertainment chairman and CEO Gary Loveman wants to bring the Caesars Palace brand to Macau as the company seeks new markets for growth. Entering the market would require working with an existing operator because the government limits the number of licences to six. (Bloomberg, Financial Daily)

Malaysia Airlines is purchasing up to 25 A330-300 aircraft worth US$5bn in order to serve the growing markets of South Asia, China, North Asia, Australia and Middle East. "The A330 will complement our incoming fleet of six A380 and 35 B737-800," its MD / CEO Tengku Datuk Azmil Zahruddin said. 
  • Under the deal, MAS is to acquire 15 A330-300 aircraft with options for a further 10. The aircraft will be delivered from 2011 to 2016. "The new fleet will create a strong platform for us to profitably grow. The A380 will serve key long haul destinations such as London and Sydney, the A330 for medium haul markets while the B737-800 will be used to strengthen our domestic and regional routes," Azmil said.
  • Azmil said the national carrier expected to gain annual savings of RM300m when the first 15 A330 aircraft are received. "By 2016, all the aircraft we have ordered will be in and we expect to have one of the youngest, most fuel efficient and environmentally friendly fleet in Asia," Azmil said.
  • He said MAS's strategy was to transform from having a 100% leased fleet to owning at least a third of the aircraft in its core fleet.
  • On its prospects next year, Azmil said the national carrier expected a fairly modest growth, adding that it was looking at additional potential routes in India, China and the Middle East. (Bernama)
Mah Sing Group plans to explore other potential investment opportunities in Jiangsu, China. The company had already signed a letter of intent in early Dec to develop a mixed property development project in Wujin district, Changzhou, Jiangsu province. (Bernama)

Naza Group has drafted Kumpulan Jetson as a partner to develop the country's largest exhibition centre on 62.45 acres of prime federal land off Jalan Duta in Kuala Lumpur. Naza, through wholly-owned TTDI KL Metropolis, and Kumpulan Jetson sealed a pact to form a 51:49 joint venture (JV) called TTDI Jetson. Kumpulan Jetson will eventually get a RM628m job to build the proposed Matrade Centre, which will have a 1m sq ft of gross floor area. (BT)

The Naza Talyya Hotel here is aiming for a 20% increase in occupancy rate in the coming new year following its completion of an upgrading exercise. An estimated RM18m has been invested by the Naza Hotels Management group on their rebranding exercise. The Naza Hotel Management, which is part of the Naza Group of companies, is also planning to open a new hotel in Kuala Lumpur and to also co-manage the Crowne Plaza LA Harbor Hotel in California. (Bernama)

Malaysia Pacific Corporation is eyeing more joint-venture projects to fund its RM4bn development project, namely the Asia Pacific Trade & Expo City (APTEC) and LakeHill Resort City. Located within Iskandar Malaysia, the project is due for construction next year, said President and CEO Bill C.P Ch'ng. 
  • APTEC, which MPC will help to manage, will be the sourcing and distribution centre for goods from around the region, particularly from China, India and Asean countries and it is expected to be completed within four years. The township of LakeHill meanwhile is expected to be ready in eight years. (Bernama)
Bumi Armada, Malaysia's largest operator of oilfield vessels, is seeking to borrow as much as US$260m (RM894.4m) from banks including Sumitomo Mitsui Banking Corp to fund a tanker-conversion project. The firm won a contract to develop a floating production, storage and offloading vessel for the Te Giac Trang oilfield in Vietnam last month, CEO Hassan Basma said. Bumi Armada and its partner may spend US$300m (RM1.03bn) on the project that is forecast to generate revenue of about US$700m (RM2.41bn) over seven years, he said. (BT, Bloomberg)

Hing Yiap Knitting Industries is confident that it will be able to maintain profit levels for the current financial year, but much will depend on sales during the Chinese New Year period. Hing Yiap is in the business of wholesaling, retailing and distributing of apparels for brands such as, Bontton, BUM equipment, Antioni, Diesel and Unionbay. The company underwent a revamp of its designs and workflow, and have been on an improvement trail ever since. (BT)

China’s Ouhua Winery Holdings plans to list its wine-making business on the Main Market of Bursa Malaysia, which will make it the fourth Chinese company to be listed on the local bourse. It will offer 131m shares to the public, representing 19.6% of its enlarged issued and paid-up share capital. Ouhua said the listing will help it raise funds to expand its market presence and distribution network, namely its Fazenda Ohua speciality stores. (BT)

Homeritz Corp, a designer and manufacturer of upholstered home furniture, has received the Securities Commission’s nod to list on the Main Market of Bursa Malaysia in the 1Q10. Besides undertaking original design manufacturing and original equipment manufacturing, it has created its own brand of furniture under “Eritz”. The company has customers across some 40 countries including Europe, Australia, New Zealand, the US, South Africa and the Middle East. (BT)

Zecon's wholly-owned subsidiary Zecon Land has entered a share sale agreement with East Coast Development to dispose of a 30% stake in Zecon Demak Jaya for RM32m. The proceeds from the disposal would be used as working capital of Zecon and its group of companies. (Financial Daily)

Abric is selling a 10,092 sq m factory lot in Jalan Tandang, Petaling Jaya, to GD Express Carrier for RM20.8m. The proceeds from the sale will go to pare down its gearing level of 1.45x to 1.14x. (BT)

Hai-O proposed to implement (1) a 1-for-5 bonus issue of up to 16.9m new shares, (2) 1-into-2 share split, and (3) private placement of up to 10% of the enlarged share capital. The proposals are expected to be completed by the 2Q10. (BMSB)

Tuesday, December 22, 2009

20091222 1839 FCPO EOD Daily Chart Study.

FCPO closed : 2515, changed : -40 points, volume : lower.
Bollinger band reading : sentiment turned negative. 
MACD Histrogram : getting lower, selling activities continue to increase.
Support : 2490, lower Bollinger band level.
Resistant : middle Bollinger band, 2550 level. 
Comment : 
FCPO traded negatively today and couldn't even climb back to yesterday 2555 closing price level. Stronger US dollar and directionless soy oil futures price together with holiday mood is believed to major reason for a weaker FCPO closing. Expecting market to trade side way range bound with further downside biased. 
When to buy : buy at support or weakness with quick cut loss and profit target. 
When to sell : sell at resistant or strength with larger cut loss and profit target

20091222 1748 FKLI EOD Daily Chart Study.

FKLI closed : 1257.5, changed : -1.5 point, volume : low. 
Bollinger band reading : bearish.
MACD Histrogram : slightly lower, low participation by both buyer and seller. 
Support : the lower upward triangle line, 1251.5 level.
Resistant : middle Bollinger band, the upper downward triangle line. 
Comment : 
Today candle closed right at the support of the lower upward triangle line with low volume. Should this support level break, market is likely to test the next support level at 1251.5, else stay side way with tighter and tigher range bound until a break out from the triangle occur.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target / sell at break down with larger cut loss and profit target.

20091222 1312 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1256.5, changed : -2.5 points, volume : moderate. 
Bollinger band reading : bearish but downside limited. 
MACD Histrogram reading : stay nearly flat, no significant move by both buyer and seller. 
Support level : 1254. 
Resistant level : 1261.5 or the middle Bollinger band.
Comment : 
Market do looks weak but after 8 continuous black bar candle with the last bar touched the lower Bollinger band, a possible near term pullback could happen any time.
I am trying a more simplified elaboration. Feel free to give comment.

20091222 1257 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2539, changed : -16 points, volume : low.
Bollinger band reading : bearish with possible further downside. 
MACD Histrogram reading : continue lower, seller still in the market. 
Support level : 2530, 2510.
Resistant level : 2555, 2575. 
Comment : 
Market could still trade lower but downside room is limited due to support is just around the corner and a better soy oil future price.
I am trying a more simplified elaboration. Feel free to give comment.

20091222 0948 Malaysia Corporate News.

Eastern & Oriental (E&O) has entered into a sale and purchase agreement to sell a 4,651.203 sqm land together with preliminary works carried out thereon to Hap Seng Consolidated for RM103m. The sale is expected to be completed by first quarter of 2010. The plan is for Hap Seng to develop a 35-storey office building with a five-storey basement carpark on the land. (BT)
We are not entirely surprised by the sale and view the move positively as it will enable the group to recognise around RM30m in profits in FY10 and will strengthen balance sheet further. This brings total asset sales for E&O as part of its asset disposal and fund raising exercise to RM250m, just short of its RM300m target. We will likely adjust FY10 earnings up by RM30m but keep FY11/12 forecasts relatively unchanged.

The Indian government said on Mon that it would stick to its Jan 2010 schedule for the auction of 3G spectrum but allot airwaves only in Aug. The Indian telcos seemed pleased with the decision because the airwaves will be given simultaneously to all four successful bidders and allow them more time to muster the resources that will be needed to roll out their networks. Furthermore, they will be required to pay only a quarter of the bid amount this fiscal and the rest when the spectrum is allotted, telecom minister A Raja said. Mr Raja also said the government has decided to stay with the plan of auctioning four slots of bandwidth, in addition to the one already allotted to state-owned telcos BSNL and MTNL. (Economic Times of India)
The delay in allotment of airwaves is somewhat negative as it would extend the spectrum constraint faced by the Indian telcos. However, on the flipside, we are positive that four slots will be auctioned off, rather than the proposed three earlier, as it would mean a less competitive bidding process for the 3G spectrum. Moreover, we regard the ability to stretch out the payment for the 3G auction as positive as it would not immediately hit the cash flows of the Indian telcos and allow them to budget and gather the funds necessary for the 3G auction and rollout.

Malaysia’s car sales in November rose 10.6% from a year ago, the second consecutive month of expansion. Sales rose to 45,200 units in November from 40,865 units before as market conditions improved, said the Malaysian Automotive Association (MAA). "The yearon-
year expansion of sales volume is expected to continue in December, although the month-on-month volume is likely to be lower," said MAA. (BT) 

Annualized total industry volume now stands at 533,357, representing a 3% yoy contraction from 2008’s 548,115 units. This is broadly in line with our expectations of a 3% contraction in TIV to 531,672 units in 2009.

Genting Singapore appointed Tan Hee Teck as its president and COO (designate) from next year. He will continue to hold his appointment as CEO of Resorts World at Sentosa. Justin Tan, who is MD, intends to retire at or before the forthcoming AGM, which is likely to be held in Apr-10. Genting Singapore’s CFO, Jaclyn Loy, has resigned and will be replaced by Lee Shi Ruh from 1 Jan 2010. Prior to this new appointment, Ms. Lee was the VP (Finance) in Genting Malaysia. (SBT)

EON Capital (ECB), the holding company of EON Bank Group announced yesterday that the Board of Directors of ECB has received a letter dated 21 Dec 09 from Kualapura (with 11.1% stake in ECB), R.H. Development Corporation (16.3%) and Lintang Emas (4.3%) stating that the companies has received approval from Bank Negara Malaysia to commence negotiation with Hong Leong Bank for the potential equity divestment in ECB. (BMSB)

Marina Bay Sands would now be operational only in Apr-10 instead of Feb-10 as previously announced. Las Vegas Sands chairman and CEO Sheldon Adelson said construction has been slowed down by the monsoon rains and financial problems facing some subcontractors. "We're here for the long-term, we expect to have this opened for decades and that's what counts," he said, describing the new opening target as only a "minor delay." (AFP, BT)

Bank Islam Malaysia aims to increase its personal financing portfolio to RM2bn for the FY6/10, from RM1.5bn previously. Its consumer banking division GM Khairul Kamarudin said the bank will execute an aggressive and effective marketing campaign to attract customers. Khairul said more than RM30m in loans had been disbursed until 30 Nov with the campaign having began on 1 Sep this year. (BT)

Maybank Investment Bank and Japan's Mizuho Securities have formed a strategic alliance to further develop markets in Malaysia, Japan and other regions. Both parties concluded their memorandum of understanding to work together in areas such as primary and secondary markets, merger and acquisition advisory, and Islamic markets. (BT)

HSBC Bank Malaysia has appointed Mukhtar Hussain as its new deputy chairman and CEO starting from 15 Dec. Mukhtar will retain his dual role as global CEO of HSBC Amanah and continue to oversee the global expansion of the Islamic financial services business. (BT)

Malaysian Airline System (MAS) is considering raising at least RM1bn in a rights offering of shares, two people familiar with the proposal said. The airline's board and government have yet to give approval for the plan, the people said, declining to be identified as the discussions are private. (Bloomberg, BT)

Airports Council International (ACI) Asia-Pacific has appointed Malaysia Airports Holdings MD Tan Sri Bashir Ahmad as acting president of ACI Asia-Pacific Region effective 1 Jan 10. He replaces Max Moore-Wilton, chairman of Sydney Airport, who will assume the role of chairman of ACI World. (BT)

The Penang Development Corporation (PDC) and YTL Land & Development signed a 50:50 agreement to develop luxury apartments on a 1.38-ha land in Lebuh Farquhar in Penang. The project could start anytime soon, said Penang CM Lim Guan Eng. The new project comprises three six-storey 76-unit apartment blocks including an underground basement, a clubhouse and a restaurant. (Bernama)

Malaysian Resources Corp (MRCB) has made an informal approach to buy or help develop thousands of acres of federal land in the Klang Valley. But CEO Mohamed Razeek Hussain stressed that no formal bid has been submitted. MRCB, he said, is unlikely to make any cash call in the next five years after its proposed renounceable 1-for-2 rights issue. (BT)

Petra Perdana said Tengku Datuk Ibrahim Petra will continue to serve as the group's executive chairman and CEO. Tengku Ibrahim will also remain as executive chairman of Petra Energy, despite the group's sale of a 25% stake in Petra Energy. "Of course, if you do an analytical review of the divestment exercise now, it may not look favourable. Let the restructuring be completed and give it time for it to work. This is not an overnight remedy to generate immediate results. It is after all, a long term strategy," he said. (BT)

Hock Heng Stone Industries, one of the country’s major manufacturers of dimension stone products, has received approval from the SC to list on the Main Market of Bursa Malaysia. It is targeting to list by 1Q10. Malacca-based Hock Heng sources, processes and distributes a wide range of dimension stones including granite, marble, sandstone and slate. (BT)

KPJ Healthcare is targeting for its annual revenue to reach RM2bn in 2012 through the continued expansion of operations throughout the country. According to chairman Tan Sri Muhammad Ali Hashim, the company will expand operations in the country either organically, by takeovers or building new hospitals. On its overseas operations, he said, the company will re-evaluate investments in Bangladesh and Saudi Arabia following the current international financial crisis. (Bernama)

Taliworks Corp has proposed to issue RM395m of secured bonds 2009/2024, which would partly finance the early redemption of its convertible bonds that will expire in 2012. (Financial Daily)

Ekovest has submitted tenders for projects worth RM1bn-2bn in Malaysia. Executive vice chairman Datuk Lim Kang Hoo said the bulk of the tenders are for government-related projects and the company is also bidding for some projects in Iskandar Malaysia. (Malaysian Reserve)

The Securities Commission has rejected AKN Technology’s application to acquire a glove manufacturer for RM17.3m. This was because the target, Nobel Gloves, has yet to commence operations and does not have the required facilities to immediately start operations. (Financial Daily)

Puncak Niaga’s 70%-owned Syabas has entered into a loan agreement with the federal government to obtain a RM320.8m loan facility for the payment of water purchased from its operators. (Financial Daily)

Monday, December 21, 2009

20091221 1852 FCPO EOD Daily Chart Study.

FCPO pullback to closed 65 points lower at 2555 after last Thursday price surge to closed way above the upper Bollinger band. Bollinger band reading still looks healthy for an uptrend market. MACD Histrogram reading turned lower = selling activities take place to closed off long position. Overall, the uptrend downward correction could still continue with immediate support come in at the middle Bollinger band level and again trader need to monitor closly the development of China Dalian palm oil market, soy oil, crude oil and also US dollar movement.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.