Friday, April 30, 2010

20100430 1835 FCPO Weekly Chart Study.

FCPO closed : 2558, changed : +18 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : turned upward, buyer seller still battling.
Support : 2530, 2500, 2450 level.
Resistant : 2580, 2630, 2700 level.
Comment :
FCPO closed firmer and traded range bound throught out the week without any firm direction being establish. Weekly chart suggesting a side way range bound market to continue take place in the near term. Tough market ahead. Susah cari makan oh.

20100430 1825 FCPO EOD Daily Chart Study.

FCPO closed : 2558, changed : +27 points, volume : lower.
Bollinger band reading : upside biased.
MACD Histrogram : reversed higher, buyer returned with small exposure.
Support : 2550, 2521, 2500 level.
Resistant : 2570, 2600, 2620 level.
Comment :
FCPO managed to closed on higher ground despite lesser volume participation. Daily chart reading shows some tendency for market to move upside biased as market seems to found some support at lower level after attempted to penetrate support level failed.
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.

20100430 1750 FKLI Weekly Chart Study.

FKLI closed : 1343.5, changed : +3.5 points, volume : higher.
Bollinger band reading : bullish biased.
MACD Histrogram : weakening, buyer reduce position gratually.
Support : 1335, 1310, 1300 level.
Resistant : 1350, 1360, 1375 level.
Comment :
FKLI ended the week marginally higher forming a long lower shadow doji bar candle due to market sell down after another round of bad news from the Euro zone but managed to recovered as the US Feb announced to maintained near zero interest rate policy come to save the day. Weekly chart wise, market still possessed the potential to climb higher with the underlying trend is still up but a weakening MACD Histrogram reading with some doji bars at the last few candle bar alerted trader to stay cautiously optimistic about the market.

20100430 1730 FKLI EOD Daily Chart Study.

FKLI closed : 1343.5, changed : +10 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : turned higher, buyer fought back.
Support : 1345, 1337, 1330 level.
Resistant : 1350, 1360, 1375 level.
Comment :
FKLI closed firmer with today candle ended slightly above the plotted purple colour triangle having a potential triangle break up. However, despite the positive closing, FKLI daily chart reading suggesting a near term side way range bound market within a longer term uptrend market.
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.

20100430 1445 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2540, changed : +9 points, volume : low.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : recovering, holiday mood for buyer and seller.
Support : 2521, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Holiday mood FCPO closed the morning session marginally higher in quiet ultra low volume market. ITS and SGS cargo surveyor released 12.9% and 9.4% weaker month on month export data figure respectively. Hourly chart also showing boring reading with market likely to trade side way range bound little downside biased.

20100430 1431 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1344, changed : +10.5 points, volume : moderate.
Bollinger band reading : upside biased.
MACD Histrogram : turned weaker, buyer taking partial profit.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
FKLI continue to trade firmer following positive close on overnight Dow Jones market and stronger regional market development. Hourly chart reading looks bullish biased and near resistant level with MACD Histrogram signal a possible pullback correction.

20100430 1049 Malaysia Corporate News.

Berjaya Corp has announced its plan to implement a Restricted Offer for Sale of up to HK$491.5m Cosway ICULS to its shareholders. Under the proposal, Berjaya Corp shareholders will be offered one unit of Cosway ICULS of 20 cents each at nine sen per unit for every two BCorp shares they hold on entitlement date. Cosway is listed on the Main Board of the Stock Exchange of Hong Kong.
  • BCorp has also proposed a special interim tier-one cash dividend of 4.5 sen per BCorp share conditional upon the ROS being implemented.
  • BCorp shareholders could opt to apply the special dividend to take up their entitlement of the ROS without having to come up with any additional cash.
  • Each Cosway ICULS can be freely converted into one new Cosway share without any further cash injection (Financial daily)
This is positive as Berjaya Corp shareholders will be receiving special dividend of 4.5sen per share and can use the dividends to participate directly in the future growth of Cosway through the ROS. At Cosway’s current market price of HK$1.12, we estimate the ROS will yield 13.6% return for shareholders against a yield of only 2.6% if shareholders opted for the special dividend only. The key risk is that this may result in some share overhang in Cosway shares which may lead to share price weakness. Also, shareholders will only be receiving the shares/special dividend around 4Q10. The ROS will also reduce B Corp’s current stake in Cosway from 72.86% to 55% on a fully-diluted basis, assuming the ROS are fully subscribed. Overall, this exercise will not impact our estimated FD SOP for the group of RM2.88.

Berjaya Group is planning to develop a US$500m (RM1.6bn) property project encompassing a hotel and residential properties in Okinawa Island in the south of Japan. Development is due to start in 2011 or 2012 and the work will take about five years. ED of Berjaya Hotels and Resorts Valen Tan said the group was building a community which will have exclusive residential properties.
  • Berjaya has yet to decide if the residences will be sold or leased out. Tan said that the island is an ideal location as it offers year-round sunshine, compared with other parts of Japan where it snows. (BT)
Marina Bay Sands (MBS) has revealed that 36,000 people visited the IR in its first 24 hours of operations. MBS, however, did not say how many people entered the casino, which requires a $100 entry levy for Singaporeans and PRs. (SBT)
In comparison, we note that RWS welcomed 35,000 casino patrons over its first two days of operations.

PT Bank CIMB Niaga Tbk's (CIMB Niaga) unaudited consolidated net profit for the 1QFY10 rose by 100% to 524.2bn rupiah from 262.7bn rupiah in the same quarter last year. CIMB Group Holdings said its Indonesian unit's higher profit was largely due to the increase in total operational income, absence of merger cost in 2010 and lower provisioning.
  • "CIMB Niaga maintains its position as the fifth largest bank in Indonesia in terms of total assets, loans and deposits," it said. It said the bank's total assets as at 31 Mar 10 rose by 11% to 114.6tr rupiah, from 102.9tr rupiah in the corresponding period last year. 
  • Loans grew by 14% to 83.7tr rupiah, driven by growth in all business segments, it said. "CIMB Niaga's loan-deposit ratio as at 31 Mar 10 reached 88.5% compared with 85.8% in the corresponding period last year. "More than 18% of total loans were disbursed outside of Java, reflecting CIMB Niaga's diversified approach to loan distribution in Indonesia," it said.
  • The bank's gross NPL ratio of 3.1% as at 31 Mar 10 was below the industry's average of 3.5% in Feb 10, it said.
  • CIMB Group said the unit's financial ratios in the first quarter of 2010 compared to the same period in 2009 showed improvement. "Return on asset rose from 1.44% to 2.54%, while return on equity increased from 10.9% to 20.6%.
  • "In addition, the bank has also made some improvements in third-party deposits which reached 93.7tr rupiah, an increase from the previous corresponding period of 84.4tr rupiah," it said.
  • The bank has increased its branches to 676 from 659 during the 1Q10.
  • CIMB Niaga would continue to maintain a balanced approach in all aspects of business comprising corporate, commercial and retail banking segments including syariah. (Bernama)
Maybank had on 21 Apr, completed the rights issue exercise of its subsidiary PT Bank Internasional Indonesia Tbk (BII), of 6.253bn new ordinary shares of Rupiah 22.5 each (rights shares) at an issue price of Rp225, which amounts to Rp1.407tr (rights issue). In a statement here, the bank said the subscription received for the rights issue, amounted to 6.279bn rights shares totalling Rp1.412tr, which resulted in an over subscription.
  • Maybank, through its wholly-owned subsidiary Mayban Offshore Corporate Services (Labuan) Sdn. Bhd and Sorak Financial Holdings Pte. Ltd, subscribed for 97.5% of the entire rights issue which comprised its entitlement pursuant to the rights Issue. Due to the over-subscription of the rights shares, Maybank as a stand-by buyer, did not have to exercise its obligation to take up any excess rights shares, which had not been taken up by the other entitled shareholders and/or their renouncees under the rights issue. (Bernama)
The palm oil industry contributed an export revenue of RM49.6bn last year, said Plantation Industries and Commodities Minister Tan Sri Bernard Dompok. Dompok said Sabah's oil palm industry had shown an encouraging improvement over the past few years.
  • Last year alone, the area under oil palm in Sabah, increased to 1.36m hectares compared to 1.33m in 2008. "The area under oil palm cultivation in 2009 represented 29% of the country's total," he disclosed. 
  • He said Sabah now had 28,858 oil palm smallholders with an area of 153,444.39 hectares, which is 11.27% of the overall total under palm oil cultivation in the state. (Bernama, Malaysian Reserve)
MMC Corp is keen to spend as much as US$1.2bn (RM3.9bn) to expand its 2,100MW Tanjung Bin power plant by another 800MW if the government is agreeable. MMC has yet to submit any proposal to the government. “We are hoping that the government will make a decision fast and invite all IPPs to submit a competitive bid to build additional capacity," CEO Datuk Hasni Harun said.
  • Peninsular Malaysia may not be able to meet the increasing demand for power by 2015 and the country's electricity reserve margin could fall below the 20% threshold if there are no efforts made to boost production capacity. (BT)
MMC Corp is looking at power sector opportunities abroad with a focus on the Middle Eastern and North African countries where opportunities exist for new generation capacity. CEO Datuk Hasni Harun said the group is also looking to raise some SAR3bn (RM2.56bn) funds for its Saudi Arabian JV, The Jazan Economic City project, with the Saudi BinLaden Group, partly from various Saudi government development grants as well as a possible listing of the JV company. (Malaysian Reserve)

Petra Perdana aims to be solidly in the black this year on the back of expected improvement in oil and gas activities in 2H 2010. MD Shamsul Saad, said with oil prices estimated to stabilise around US$80-85/barrel, activities had started to pick up and charter rates for vessels would be on the uptrend again. Meanwhile, when asked if Petra Perdana would divest its 29% stake in Petra Energy, he said: "We have made a commitment to shareholders that such an intention will only come with their approval." (Bernama)

Plus Expressways hopes to offer technical and consultancy services to highway operators overseas by early next year, its top official said. The company sees opportunities to export its expertise to Vietnam, the Middle East and some South African nations. Meanwhile, MD Noorizah Abd Hamid said that PLUS is expecting its toll collection to increase 3-4% this year, after growing 7% last year. (BT)

Malaysia Building Society (MBSB) expects higher revenue and net profit this year on stronger growth from its retail business and corporate financing. "The retail business financing will be supported by personal financing to government servants at a competitive rate. We will support any effort by the government to provide home-financing for government servants for second homes," said MBSB CEO Datuk Ahmad Zaini Othman.
  • As for its corporate loan portfolio, MBSB will provide financing for government contracts which includes construction and supply or even project financing, said Ahmad Zaini. 
  • On its plan to become a full-fledged bank, MBSB said the rationale behind it was to strengthen its presence and a banking platform would allow it to do so.
  • With some 32 branches at present, MBSB will add one in Sabah or Sarawak and two in Peninsular Malaysia this year.
  • On the development plans for its 2ha land in Sungai Buloh, Selangor, Ahmad Zaini said a possibility was to have a mixed development with an estimated gross development value of RM300-400m. (BT)
DRB-Hicom and its 40%-owned Suzuki Malaysia Automobile (SMA) are working on becoming a regional hub for Suzuki Motor Corp to export Suzuki cars to other countries in Southeast Asia.
  • After having assembled the Swift 1.5L for three years solely for the domestic sales, SMA has been asked by its Japanese principal to make its first overseas shipment. SMA is hopeful Suzuki would allow it to export to other regional markets but SMA managing director Ibrahim Maidin stressed that it will focus on developing sales of the Swift in Brunei. (BT)
Multi-Purpose Holdings has received a confirmation from AmBank that the Put Option Agreement in relation to the 41.63% equity interest in U Mobile has been terminated with effect from 29 April 2010 and that the company has been released and discharged from all agreements. (BMSB)

MAA Holdings has received Bank Negara approval to pursue M&As, including a potential sale of its subsidiary Malaysian Assurance Alliance (MAA) within 12 months to further strengthen its capital base. (BT)

QSR Brands will invest some RM80m this year to open more outlets and refurbish the existing ones. Its chairman Tan Sri Muhammad Ali Hashim said that he expected performance to improve this year if current economic conditions continued. KFC samestore sales growth this year is projected at 5%, and for Pizza Hut, 6-7%. (BT)

Scomi Group’s oilfield services business has successfully secured RM60.5m projects in Malaysia, Thailand and Indonesia, which will robustly contribute to the group's revenue in 1Q 2010. These contracts add on to its existing oilfield services order book of RM1.2bn as at end-Dec 09. (BT)

Silver Bird Group expects contribution from its Singapore business to increase to more than 20% of total revenue this year, driven by aggressive marketing campaigns and new products. It plans to launch three new bread products in Singapore within the next two months. Group MD Datuk Jackson Tan is optimistic of Silver Bird turning in double-digit growth this year amid plans to increase production capacity and build up its sales network. (BT)

20100430 1044 Malaysian Economic News.

Bank Negara Malaysia (BNM) will relook at the Gross Domestic Product (GDP) growth figure for this year following better economic conditions. "We realised there could be an upside potential. The major assessment would be made in the middle of this year where the figure could be used in the Budget," said Governor Tan Sri Dr Zeti Akhtar Aziz. It had said that 1Q10 GDP growth showed indications of being stronger than 4Q09 (+4.5%). (Bernama)

Malaysia's cost of recovering from the crippling 1997/98 Asian financial crisis vis-a-vis other regional economies, was among the lowest globally, compared with affected economies and despite not going to the International Monetary Fund (IMF), said BNM Governor Tan Sri Dr Zeti Akhtar Aziz. The net cost of recovery of the banking resolutions was 2.6% of Gross Domestic Product (GDP) while being one of the lowest in the world. (Bernama)

Malaysian contractors implemented 614 infrastructure projects overseas up to last year, with contracts worth RM85.2bn. "Of the number, 489 projects worth RM32.74bn had been completed while 125 projects worth RM52.45bn are under construction," Deputy Minister of Works, Datuk Yong Khoon Seng said. (Bernama)

Government departments and agencies in the country can emulate the efficiency of the Singapore authorities in cutting down on bureaucracy and providing public services, Deputy Minister in the Prime Minister's Department, Datuk T. Murugiah said. He suggested that government officers be trained in Singapore to learn how to provide efficient and quick services to the public, including expediting the application process. (Bernama)

The Goods and Services Tax (GST) has been implemented fairly and justly to the people in certain countries as compared with income tax, Deputy Minister of Finance Datuk Chor Chee Heung told the Dewan Negara. When the GST is implemented later, Chor said the government would ensure the tax would not be exorbitant but only around 4% and the current service tax would be abolished. (Bernama)

Small and medium scale Bumiputera entrepreneurs should not mainly focus on food products so that they can penetrate foreign hypermarkets in the country. Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Ismail Sabri Yaakob said 11,000 local products have been able to make it into the list of hypermarkets and the government have initiated efforts to increase it by another 30%. (Bernama)

Australians, particularly from the state of Queensland, are seeking opportunities for potential collaboration with Malaysian companies. This is more so, for the energy and infrastructure sector. Queensland's Minister for Natural Resources, Mines and Energy and Trade, Stephen Robertson said one thing Malaysia and the state had in common, is a very ambitious infrastructure programme. (Bernama)

20100430 1041 Global Economic News.

US initial jobless claims fell 11,000 to 448,000 in April 24 week after seasonal adjustment. The level was only slightly above the 445,000 level expected by the market. Initial claims were revised up to a 459,000 level in the April 17 week. The number of people filing continuing claims totalled 4,645,000 in the week ended April 17.
  • That figure was down 18,000 from the preceding week's revised 4,663,000 claims, and slightly above the 4,625,000 economists expected. Continuing claims were down for the fourth straight week. (CNN Money, Xinhua)
US Treasury Secretary Tim Geithner said the Obama administration continues to encourage China to "shift" to an economic policy that is more focused on domestic consumption, less reliant on exports, and open to currency reforms. Geithner added the administration wants China to "renew the process of reforming their exchange rate so we allow the market to play a greater role in determining the level of that exchange rate." (Xinhua)

President Barack Obama announced he will nominate Federal Reserve Bank of San Francisco President Janet Yellen to serve as vice chairman of the Fed Board of Governors as well as his choices for the two other board vacancies. The trio would lend support to Fed Chairman Ben S. Bernanke as he keeps interest rates low to ensure a sustained recovery and prepares for a potentially reduced role in bank supervision. Yellen would replace Donald Kohn, who said in March he would step down June 23 after a 40- year Fed career. (Bloomberg)

Thailand’s central bank raised its economic growth forecast as exports rebound, even as prolonged political protests threaten the country’s recovery from last year’s slump. Gross domestic product may expand 4.3%-5.8% in 2010, Assistant Governor Paiboon Kittisrikangwan said. That compares with a January forecast of 3.3%-5.3%. (Bloomberg)

Thailand’s economic growth in the first quarter was estimated at between 8%-9% yoy, a Finance Ministry official said. “The first quarter growth is very good, driven by ezxports,”Satit Rungkasiri, chief of the ministry’s fiscal policy office, said. (Malaysia Reserve)

Loans to households and companies in Europe declined in Mar 10 as sluggish economic expansion reduced demand for credit. Loans to the private sector fell 0.2% yoy, their seventh straight annual drop, after declining 0.4% in February. M3 money supply declined an annual 0.1% in Mar 10 (-0.3% in Feb). (Bloomberg)

European confidence in the economic outlook improved to the highest in more than two years amid signs the euro-area recovery is strengthening even as Greece’s fiscal crisis spreads across the region. An index of executive and consumer sentiment in the 16 euro nations rose to 100.6 in April (97.9 in Mar). That exceeded the 99.4 median estimate in a survey. (Bloomberg)

The Bank of Japan will probably keep the benchmark interest rate unchanged and debate whether to expand a credit program at a board meeting today as it gauges the strength of the recovery and outlook for deflation. Governor Masaaki Shirakawa and his colleagues will hold the key interest rate at 0.1%, all 16 economists surveyed said. (Bloomberg)

South Korea’s industrial production grew for a ninth straight month in Mar 10 as the global economic recovery fuels overseas demand for cars and electronics. Output jumped 22.1% yoy (18.8% in Feb), more than the median estimate for a 19.8% gain in a survey. On a mom basis, production increased 1.6%. (Bloomberg)

Discussions on the financial aid package for Greece should conclude “in the next days,” European Union Economic and Monetary Affairs Commissioner Olli Rehn said, after delays in the talks undermined markets across Europe. (Bloomberg)

The IMF said while Greece’s sovereign debt situation has not had a major impact on flows to the Asian region, the main risk scenario is one of worsening global risk aversion, should the jitters spill over to some of the larger European economies. “Problems in Europe could force a further retrenchment of European banks from the region, possibly reigniting some dollar and euro funding pressures in Asian markets.” (Bloomberg)

Thursday, April 29, 2010

20100429 1857 FCPO EOD Daily Chart Study.

FCPO closed : 2531, changed : -16 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : turned weaker, buyer is leaving.
Support : 2521, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Improved volume, tight range, low open interest FCPO market continue to trade side way ended the day weaker ahead of tomorrow export data figure. Daily chart remain unchanged with a side way range bound reading testing support and resistant level.
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.

20100429 1846 FKLI EOD Daily Chart Study.

FKLI closed : 1333.5, changed : +5.5 points, volume : lower.
Bollinger band reading : side way range bound downside biased.
MACD Histrogram : continue lower, seller still in.
Support : 1330, 1325, 1318 level.
Resistant : 1337, 1345, 1350 level.
Comment :
Thin volume tight range FKLI recovered some of yesterday losses following US Fed announce to maintain a near zero interest rate policy. Daily chart wise, today small body doji bar candle failed to confirm the yesterday triangle break down as price still traded inside the triangle. Expect market to trade side way range bound with still a little 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 quick cut loss and profit target.

20100429 0943 Malaysia Corporate News.

Bintulu Port's expansion projects, worth some RM300m, will be completed between June and August this year, said Bintulu Port's CEO Mior Ahmad Mior Lub Ahmad. The project include expanding the container terminal port's annual handling capacity by 250,000 TEUs to 650,000 TEUs.
  • The port's container freight station and stacking yards are also being widened to provide additional services. Mior Ahmad said 10 new storage tanks for palm oil now under construction would be ready in two months' time. The additional tanks will boost storage capacity by 26,000 tonnes from the current 76,000 tonnes. (Starbiz)
These initiatives are positive for Bintulu Port as they would help boost the port's cargo handling capacity and efficiency. Economic activities are picking up and we expect port cargo throughput to improve this year. We gather that close to 80% of the port's palm oil storage capacity is being taken up by long-term lease. Therefore, the completion of the 10 additional storage tanks will enable the port to support more businesses.

Hong Kong-based Asia Minerals, the investor of a proposed manganese smelting factory in the Sarawak Corridor of Renewable Energy (SCORE), expects the plant, located at Samaluju Industrial Park, Bintulu, to be operational in the second half of 2012. The company's senior officials are scheduled for a third meeting with Bintulu Port to finalise some arrangements on its import and export activities, said Bintulu Port CEO Mior Ahmad Baiti Mior Lub Ahmad. Mior Ahmad said Asia Minerals had planned for a capacity of 400,000 tonnes per annum for its Bintulu factory. (Starbiz)
We expect Bintulu Port to be a key beneficiary of any increase in cargo throughput generated by the proposed smelting factory given its handling capacity and close proximity to the proposed plant. With the completion of its container terminal capacity expansion project by 3Q10, which will see its handling capacity increase by 250,000 TEUs to 650,000 TEUs p.a., the port operator should have sufficient capacity to handle the proposed plant's export and import requirements.

State-owned public transport operator Syarikat Prasarana Negara Bhd said 17 applicants have qualified to bid for contracts of about RM7bn to extend light rail transit (LRT) lines in the Klang Valley.
  • They include firms like Sunway Construction, IJM Construction, Muhibbah Engineering, Gamuda, MRCB Engineering as well as joint ventures such as WCT-Sinohydro, Ranhill-CCCC, UEM Builders-Intria Bina and Zabima-Leighton.
  • Prasarana group MD Datuk Idrose Mohamed said the candidates prequalified as the main contractor for "their technical and financial capacity and capability with the relevant infrastructure works experience". Another 15 candidates were shortlisted for the subcontracting of fabrication and delivery of segmental box girder works.
  • Idrose said the main contractor and subcontractor will be notified officially in due course by Prasarana. (BT)

Industrial and Commercial Bank of China (ICBC), has received Bank Negara Malaysia's approval to open initially four branches in Malaysia. "The current licence allows them to open four, but we're further liberalising the sector," Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz said. ICBC, which obtained its commercial banking licence from the central bank last November, did not say where it planned to open its branches as yet. (BT)

Malaysian and UK Islamic banks have agreed to undertake greater collaboration in crossborder Islamic liquidity management transactions. The decision was made at the end of the Malaysian-UK Islamic treasurers workshop, which was held at the Westminster Conference Centre in London on 12 Apr. The collaboration will pave the way for countries to explore business opportunities and form potential alliances in tapping the huge business potential across Asia and the Middle East. It is also looking into the possibility of developing an international benchmark rate for Islamic finance. (BT)

AmBank (M) Bhd issued RM1.325bn senior notes under its 30-year RM7bn senior notes issuance programme. The senior notes were issued on a private placement basis to identified investors, it said in a statement. With this issue, the bank has issued RM2.745bn senior notes under the programme, having completed its initial RM1.42bn issuance in March via a book-building exercise. "
  • The new issue will allow greater participation by investors and increase liquidity of the senior notes. We will continue to monitor and tap the market from time to time as part of the management efforts to diversify our sources of funding and enhance the bank's liquidity risk management structure," said Cheah Tek Kuang, MD of AmBank Group. (Financial daily)
Bank Kerjasama Rakyat Malaysia saw its first-quarter pretax profit rose by 23% yoy to RM407.3m. The state-owned bank attributed the growth to increased financing income in line with the strong growth in overall financing balance despite the rise in the overnight policy rate by 0.25% in March this year.
  • Bank Rakyat's gross income rose 19% to RM1.1bn in the Jan-Mar period this year compared with the previous corresponding period. Net income after profit distribution to depositors grew by 20.5% to RM837.2m, driven by continued strong growth in quality financing and deposits, and improved asset quality. Income from financing stood at RM974.1 million compared with RM786.5m a year ago.
  • Bank Rakyat also recorded a fee-based income of RM28.4m, up 60.1% from a year ago, of which 75% were contributed from income on will, commission on takaful and automated teller machine service fee.
  • Total deposits grew by 15.6% year-on-year to RM40bn at the end of Mar 10. (BT)
The Indonesia Commodity and Derivatives Exchange has postponed the introduction a local-currency palm oil contract until next month, according to an Executive. The rupiahdenominated contract, which was to have started trading on 30 April, will begin on 21 May, Megain Widjaja, MD of the exchange said. The trading infrastructure needed to be finalised and exchange members also required more time, Mr Widjaja added. (Bloomberg)

Natural rubber prices will remain "high" until at least June as supplies from the three biggest producing countries remain tight and demand for tyres from automakers expands, a producers' group said. "Prices will sustain high levels in 1H, with increasing car sales and positive economic indicators," Abdul Rasip Latiff, CEO of International Rubber Consortium Ltd said. (Malaysian Reserve)

Moody’s affirmed the Baa2 rating with a stable outlook for the 10-year 5.375%, US$300m senior unsecured notes, issued by Axiata SPV1 (Labuan) Ltd and unconditionally guaranteed by its parent, Axiata Group. The bond rating has been removed from its provisional status following the completion of the bond issue, said Moody’s. (Bernama)

XL Axiata plans to test LTE with Ericsson Indonesia. The companies have signed a cooperation agreement on testing LTE but are still waiting for a test licence from the government. XL and Ericsson plan to hold trials in 2H10, which will also involve government and education institutions. (Telecompaper)

The FIFA 2010 World Cup will help Maxis boost its non-voice revenue, COO , Jean-Pascal van Overbeke said. He also said Maxis aims to increase non-voice revenue to more than 50% over the next 2-3 years from 35% last year. (Bernama)

Demand for both international air travel and air freight accelerated last month with the rebound on the back of economic recovery exceeding expectations, the International Air Transport Association (IATA) said. The airline industry body said that air traffic recovery would dip this month because of the disruption from the Icelandic volcanic eruption, which hit European carriers in particular.
  • Passenger and freight markets are still 1% below early 2008 highs and the industry has lost two years of growth, IATA director-general Giovanni Bisignani said. "Nonetheless, the pace of improvement, based on an improving global economic situation, is much faster than anybody would have expected even six months ago," he said. (BT)
Penang's gastranomic icon - the nasi kandar - will be the marketing channel tapped by lowcost carrier AirAsia to promote its newly launched Penang-Chennai route. Chairman Datuk Aziz Bakar said nasi kandar outlets in the island state will be one marketing source for the airline, where restaurant workers are mainly Indian nationals. "The nasi kandar operators, who themselves are wealthy, are also another potential group of travellers for us," he added. (BT)

AirAsia X must not assume that the decision not to approve its application to fly the Kuala Lumpur-Sydney route was made to protect the national carrier, said Transport Minister Datuk Seri Ong Tee Keat. AAX chief executive officer Azran Osman Rani had last month sent out tweets on Twitter alleging that “the (incumbent) is blocking us because they say that route must be protected.’’
  • Azran was reported as saying a rational and clear policy on route allocation was needed based on the interest of the country, and not the interest of an individual airline. AAX had expected to fly to Sydney by June.
  • Ong said: “As far as routes are concerned, we cannot please everybody as decisions have to be made according to criteria. My advise to AirAsia X is, do not jump the gun. Allow us to consider all the factors and let us reach a decision according to the rules and regulations”. (Star)
Kencana Petroleum hired AmInvestment to help it sell as much as RM250m of Islamic bonds, according to a person familiar with the matter. The bonds may be marketed to investors next month. (Malaysian Reserve)

Sunway City (SunCity) is building logistics and distribution centres at its RM1.1bn industrial park project in Australia and it is positive on sales. "Looking at currency appreciation, the economy is doing well. Industrial land price dropped more than 30% in 2009 to A$225 per sq metre.
  • It is improving," said SunCity international property development division managing director Ngian Siew Siong. The company has sold one distribution centre to Best & Less, a retailer for A$44m. "We are negotiating two more deals. One local Australian company plans to buy a logistic and distribution centre and the other company wants to lease a separate building," Ngian said. (BT)
Sunway Holdings plans to buy 33.37 acres of leasehold land in Taman Equine, Bandar Putra Permai, Selangor, from Taman Equine Riding Sdn Bhd for RM37.8m. It intends to build semi-detached and bungalow villas on the land, which has an indicative GDP of RM250m and is scheduled for launch in early 2011. (BT)

Selangor Properties will stop investing in global property funds after losing money on previous bets.
  • SPB had invested some RM300m in 2006 in several funds managed by foreign banks. "We thought we could make more money but the value started to drop. We have RM88m in the funds now and the valuation has improved. We will sell when we think it is right," SPB financial controller Lee Boon Kian said. The group has sold some of its investments but it made provisions of RM77m in 2009 to account for the lower value of its investments.
  • Lee also said SPB may set up a real estate investment trust. It is now building its property portfolio. Its current portfolio includes Menara Milenium, Wisma Damansara, Kompleks Pejabat Damansara, Wisma HELP and SPB Towers. It also owns half of the Claremont Shopping Mall in Australia. (BT)
UEM Land Holdings is proposing to dispose its entire 20% equity interest in Touch `N Go (TnG) to PLUS Expressways for RM33.4m. The proposed disposal is expected to result in a net gain of RM26.4 m. UEM Land said the move was part of efforts to focus on its core business of property development. (Bernama)

Suria Capital Holdings is confident of a better performance this year in tandem with the expected better economy for the country and state. Its chairman, Tan Sri Ibrahim Menudin, said the group will continue to pursue growth strategies to increase market share for its core port services business, where it is already eyeing a 6-8% growth particularly in its transshipment services. (Bernama)

MBf Holdings’s (MBfH) controlling shareholder Tan Sri Ninian Mogan Lourdenadin has ruled out making a fresh bid to take the company private after his offer at the EGM on Tuesday was rejected by “a group of minority shareholders” who were holding out for a higher price. “I am not prepared to pay the price the big minority shareholders are asking,” Lourdenadin said. (Starbiz).

Petra Energy has appointed Kamarul Baharin Albakri as its CEO. Kamarul, 47, is now involved in streamlining the group’s management and operational practices, mainly to enhance the management processes and continuously introduce new benchmarks to promote greater accountability and transparency. He joined Petra Energy’s Board as ED in February this year. (BT)

Haisan Resources has partnered Global Logistic Properties Investment Management (China) Co for the sale and leaseback of Haisan’s land, building and part of the refrigeration equipments for 120m renminbi with a lease period of not less than 15 years. (BT)

Chemical Company of Malaysia expects 2010 to be a better year, backed by a new plant and better demand. Its group MD Datuk Dr Mohd Hashim Tajudin said the company is ready to emerge as the biggest fertiliser manufacturer in Malaysia once its new plant in Lahad Datu, Sabah, is operational in the first quarter of 2011. "The new plant will complement the other plants we have in Shah Alam and Bintulu," he added. (BT)

The Pahang state assembly unanimously passed two motions on the purchase of shares of two companies – MISC and YTL Cement. The state government will purchase 3.4m units of MISC shares at RM7 each and 906,344 units of YTL Cement shares at RM4.18 each.
  • Mentri Besar Datuk Seri Adnan Yaakob said the purchases were part of the state government’s efforts to increase its revenue. “We have various means to fill the state’s coffers and one of them is to buy and trade shares at Bursa Malaysia.
  • MISC is a company that has never failed to declare dividends to its shareholders, including the state government,” he said when tabling the motion yesterday. Adnan said that last year, the state government received more than RM6m in dividends from MISC and about RM3.6m from YTL Cement. (Star)

20100429 0934 Malaysian Economic News.

The government targets to double the average investments the nation receives in a year to as much as RM140bn within the next five years (by 2015) under its upcoming 10th Malaysia Plan (10MP). Minister in the Prime Minister’s Department Tan Sri Nor Mohamed Yakcop said the country receives an average of RM70bn worth in investments annually with foreigners contributing more than half of the inflow. (Malaysian Reserve)

The government hopes the ratio between foreign direct investment and domestic investment will be at 50:50 from the current 70:30 during the 10th Malaysia Plan period, says International Trade and Industry Minister Datuk Seri Mustapa Mohamed. He said the government was taking various initiatives to woo more domestic investments into the manufacturing and services sectors. (Bernama)

The Kedah branch of the Ministry of Domestic Trade, Cooperatives and Consumerism has given an assurance that there is sufficient supply of sugar in the state and denied that the price would go up due to the government would retract the sugar subsidy. "The shortage could have been due to traders and small and medium entrepreneurs rushing to buy sugar in large quantity because of the rumour that subsidy would be withdrawn," it said. (Bernama)

The Terengganu government urged the Agriculture and Agrobased Industry Ministry to find ways of tackling the drop in paddy price which is causing problems for farmers. It said the current paddy price was only RM890 per metric tonne compared with last year's price which could go as high as RM1,200 per metric tonne. (Bernama)

Malaysia is looking forward to expand bilateral trade ties with Finland as total trade between the two countries is quite "small", said PM Datuk Seri Najib Tun Razak. Currently, Malaysia-Finland total trade volume stood at US$600m. "Finland is known for its innovation, we hope Malaysia could be the centre for innovation for this part of the world," Najib added. (Bernama)

International Trade and Industry Deputy Minister Datuk Mukhriz Mahathir said that it is crucial to develop local technopreneurs with innovative and cutting edge technologies to position Malaysia as a developed nation by 2020. He said development of small and medium enterprises (SMEs) in the information technology and communications (ICT) sector was regarded as one of the key drivers for the country's economic growth in the digital era.
  • However, the poor ICT utilisation among local SMEs and their inability to fully tap into advances in ICT are causes for concern that is impeding the national development. (Bernama)

20100429 0929 Global Economic News.

Federal Reserve officials restated their intention to keep the benchmark policy rate near zero for an “extended period” and saw signs of life in the job market. “The labor market is beginning to improve,” the Federal Open Market Committee said in a statement, after last month saying it was “stabilizing.”
  • Officials also said growth in household spending has “picked up recently.” “Economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period,” the Fed statement said. (Bloomberg)
President Barack Obama plans to announce his choice of Federal Reserve Bank of San Francisco President Janet Yellen tomorrow as vice chairman of the Fed Board of Governors, according to two people familiar with the decision. The president will also name Sarah Bloom Raskin, Maryland’s commissioner of financial regulation, and Peter Diamond, an economics professor at the Massachusetts Institute of Technology, for the two remaining open seats on the central bank’s seven-person board. (Bloomberg)

US mortgage applications fell last week as rising mortgage rates hurt refinancing, while a looming deadline for a homebuyers’ tax credit boosted purchases for a fifth time in six weeks. The Mortgage Bankers Association’s index decreased 2.9% in the week ended April 23. The refinance measure fell 8.8%, while the gauge of purchases climbed 7.4% to the highest level since October, the month before the tax credit was initially due to lapse. (Bloomberg)

US manufacturers will fill fewer than 30% of 2m lost factory jobs as the economy recovers over the next six years, according to an estimate from an industry trade group. Most of the hiring will come in 2011 and 2012, David Huether, chief economist for the National Association of Manufacturers (NAM) said.
  • Huether’s estimate for a return of 540k manufacturing jobs by 2015 fell from his previous prediction of 800k. He said he pared the number this month based on his projections that consumers will use more imports than US-made goods. (Bloomberg)
The financial crisis and recession cost US households an average of about US$100k in lost wealth and income, according to a study by former Treasury Department economist Phillip Swagel. From September 2008 through the end of 2009, households’ stock holdings fell US$66k and real estate dropped US$30k, according to the study. Each household also lost an average US$5.8k from unemployment and lower earnings. (Bloomberg)

German Chancellor Angela Merkel and the International Monetary Fund pledged to step up efforts to overcome the Greek fiscal crisis as Standard & Poor’s downgraded Spain and investors sold bonds in Europe’s most indebted nations. “It’s completely clear that the negotiations between the Greek government, the European Commission and the IMF need to be sped up now,” Merkel said. She said the “stability of the euro zone” was at stake if a EUR45bn (US$59bn) loan package for Greece can’t be delivered fast. (Bloomberg)

New Zealand’s central bank said it could raise its benchmark interest rate from a record low as early as Jun 10 as improving global demand buoys exports and underpins an economic recovery. “We expect to begin removing policy stimulus over the coming months, provided the economy continues to evolve as projected,” Reserve Bank Governor Alan Bollard said. (Bloomberg)

The U.K. economy remains in a “fragile state” and inflation should stay under control this year, former Bank of England policy maker Timothy Besley said. “Until we’ve seen a run of data that support the idea that we’re on a road to recovery, we have to still mark down the economy as in somewhat a fragile state,” Besley said. (Bloomberg)

Australian house prices grew at a slower pace in 1Q10 as the central bank’s five rate increases since Sep 09 took effect, Australian Property Monitors said. House prices rose 3.1% in 1Q10, from 5.3% in the previous quarter. Unit prices added 0.2%, compared with 2.6% in the prior period. (Bloomberg)

The prospect of contagion sweeping through European sovereign debt markets intensified Wednesday after Spain's sovereign rating was downgraded by Standard & Poor's Corp. The move, coming a day after S&P cut Greek debt to junk status and pulled Portugal down two notches, came as Greek debt markets have all but frozen amid fears the country may default if it can't repay bondholders by May 19. Investors are looking past Greece's well-known woes to ponder the possibility of a larger European government debt crisis. (WSJ)

A senior official of Bank Indonesia said that the country's economy grew by 5.7% in 1Q, partly because of better risk perception. "Economic growth in the first quarter reached 5.7% with a controllable inflation rate," BI Deputy Governor Budi Rochadi was quoted by the Jakarta Post. Budi said the supporting factors were better economic conditions and better risk perception. (Bloomberg)

Singapore’s inflation gains may become “steep” in coming quarters as improvements in the city- state’s labor market boost wages and businesses pass on higher costs to consumers, the central bank said. The consumer price index may rise 4% by the fourth quarter, accelerating from March’s 1.6% gain, the Monetary Authority of Singapore, or MAS, said. Growth drivers are likely to be “intact” and the level of economic activity will probably be “sustained at a high level,” according to the report. (Bloomberg)

Wednesday, April 28, 2010

20100428 1806 FCPO EOD Daily Chart Study

FCPO closed : 2547, changed : -3 points, volume : lower.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : getting higher, buyer still in.
Support : 2521, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
After an exciting wild swing ultra high volume day, the excitement seems turned into a peaceful quiet day today that ended marginally lower tight range market. Daily chart reading continue to show a side way range bound market with still a little biased to the upside.
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.

20100428 1723 FKLI EOD Daily Chart Study.

FKLI closed : 1328, changed : -10.5 points, volume : higher.
Bollinger band reading : downside biased.
MACD Histrogram : recovering, seller reduce exposure.
Support : 1325, 1318, 1310 level.
Resistant : 1330, 1337, 1345 level.
Comment :
A long upper and lower shadow doji bar candle with Ultra high volume FKLI ended the day lower at the opening price. Daily chart seems having a yet to be confirm triangle break down as price closed just fraction below the triangle. Expect market to trade downside biased with some room for further down testing support level.
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.

20100428 1323 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1331.50, changed : -7 points, volume : high.
Bollinger band reading : downside biased with temporart pullback correction.
MACD Histrogram : recovering, seller lock in partial profit.
Support : 1330, 1325, 1318 level.
Resistant : 1337, 1345, 1350 level.
Comment :
Euro zone economic casualty fear spilled over across the entires major world market including the Dow resulted Bursa Malaysia FKLI to opened and traded lower in heating up ultra high volume. Hourly chart wise, market are currently having pullback correction within a further downside biased market as market once dived too drastically down 17.5 points within the 2nd hour of trading.

20100428 1321 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2543, changed : -7 points, volume : low.
Bollinger band reading : side way range bound little upside biased.
MACD Histrogram : getting lower, buyer reduce exposure.
Support : 2521, 2500, 2470 level.
Resistant : 2550, 2570, 2600 level.
Comment :
Quiet volume no follow through after yesterday price surged FCPO traded lower following a weaker soy oil futures price development. Hourly chart shows that demand was not strong enough to sustain the upward movement as price is likely to trade side way rang bound with still some upside biased.

20100428 1252 Malaysia Corporate News.

A mobile gamble may be the next thing that Telekom Malaysia will have to consider getting itself into if it wants to enhance its existing triple play offering. But it will have to wait till early next year as it had in 2008 signed an agreement with Axiata that forbids it to get involved in the cellular business.
  • TM CEO Datuk Zamzamzairani said "it is too early to talk about it" but added that "we are open to opportunities." "We are excited about Unifi and we will exploit it when the time comes. We have options to consider wireless (or cellular) technology to enhance what we have. 
  • To enhance Unifi we could use some other (player's) network, have a technology partner or even built it ourelves (to bundle the services)."The company is sitting on the 450 and 800MHz spectrum, but whether these could be used for 4G offerings is unclear should TM decide to build its own network." (StarBiz) 
If TM were to build its own mobile network, we would view it negatively as this would: 1) make it the 5th player in a very saturated market, and 2) drain the telco's cashflow. Such a scenario is possible if TM acquires LTE spectrum. The regulator is looking to auction off 3 blocks of LTE spectrum next year.

has announced the acquisition of the remaining 60% share in Autic Mekki, a nickel plating company, it does not own for a total purchase consideration of RM3.4m. Following the acquisition, Autic Mekki will become a wholly-owned subsidiary and the entire acquisition is expected to close within three months.
This is not a surprise as we had mentioned this acquisition in our recent visit note. We take a positive view of the move as it would help to retain the value of the nickel plating process within Notion and enable it to realise cost savings on plating cost.

Indonesian coal miner PT Bayan Resources has declared force majeure on shipments from its Gunung Bayan coal mine in Kalimantan because of heavy rains and flooding. "Shipments for May to Malaysian and Italian buyers will be delayed because of the floods," Jenny Quantero, Bayan's spokeswoman said. Buyers affected include Tenaga Nasional and Italian firm Enel Trade SpA, she said. (Reuters)
This news is a negative surprise. At this point, it remains unclear how long the shipment could be delayed. We note that Tenaga is increasingly reliant on coal-generated electricity units to meet its strong demand patterns of late.

Las Vegas Sands (LVS) chairman and CEO Sheldon Adelson has set Marina Bay Sands (MBS) the goal of seeing a return on its US$5.5bn investment in five years. Earlier estimates by LVS had been more conservative. Mr Adelson expects MBS to do very well and he also said the IR will become the 'standard for economy changing tourism projects'. MBS president and CEO Thomas Arasi said he expects the IR to attract 70,000 visitors when fully completed, more than double the figure expected at Genting Singapore’s Resorts World Sentosa (RWS). (SBT)

Officials from the World Bank and the International Finance Corp (IFC) will be in Kuala Lumpur next month to discuss the establishment of an Islamic financing facility for the green technology sector, Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said. The officials will be in KL from May 10 for discussions with Bank Negara Malaysia and the Ministry of Energy, Green Technology and Water to develop a suitable model in the creation of a syariah-compliant US$200m (RM636m) fund. (BT, Bernama)

Bursa Malaysia expects to attract a few large banks from the Gulf Cooperation Council (GCC) to be members of its syariah-compliant electronic commodity trading platform, Bursa Suq Al-Sila', by this year. When larger banks in the GCC countries come on board, trading volume through the platform is expected to increase substantially, Bursa CEO Datuk Yusli Mohamed Yusoff.
  • Bursa Suq Al-Sila' offers a platform for Islamic banks to buy and sell commodities to manage their short-term liquidity, as they cannot go to the conventional money market. 
  • Yusli said since Bursa Suq Al-Sila' was launched in August last year, progress has been good where about 90% of Malaysian Islamic banks are using the platform. There are also some cross-border trades being done by international Islamic banks through the platform.
  • He said Bursa has a dedicated marketing team that promotes the platform in the GCC region. "Their work involves convincing syariah committee of the respective banks in GCC on the value of Suq Al-Sila'," he said, adding that the team is making good progress.
  • Yusli also said that Bursa will expand the range of commodities traded on Bursa Suq Al Sila' within a few months to a year. He said the in-house team is still working on sourcing the supply of the commodity. "We are looking at various types of commodities. They may not necessarily originate from Malaysia, as long as their physical presence can be verified as the underlying asset," he said. It was reported that Bursa was looking at expanding the commodity traded on the platform to include non-precious metals. (BT)
Total deposits of full-pledged Islamic banks and Islamic windows of conventional banks operating in Labuan International Business and Financial Centre (IBFC) rose 14.5% to US$386.4m as at 31 Dec 09 from US$337.3m in 2008. There were six full-pledged Islamic banks and six Islamic windows of conventional banks operating during the period in Labuan IBFC, Labuan Financial Services Authority (Labuan FSA) said in its 2009 Annual Report released here today.
  • It said the year 2009 also recorded a significant increase in the non-resident deposits, where the bulk of the deposits were placed in institutions operating Islamic windows. The placements by non-residents as at last year stood at US$135.1m, an increase of 87.9% from US$71.9m in 2008. 
  • Meanwhile, total Islamic financing fell slightly to US$226.4m from US$231.4m mainly due to the reduction of financing to residents. Total Islamic assets also posted a slight decline last year, standing lower at US$794.7m from US$957.3m in 2008.
  • Labuan FSA said the Islamic capital market in Labuan IBFC grew modestly during the year reviewed after a landmark issuance of US$1.5bn sukuk out of Labuan IBFC. The sukuk, which was oversubscribed by 19 times and listed on the Labuan International Financial Exchange (LFX) highlighted that the Labuan IBFC remained a major centre for sukuk issuance.
  • The retakaful industry in Labuan IBFC also registered its third consecutive year of growth, exceeding 40% by the end of 2009, with the total takaful and retakaful contributions posting an increase of 44.2% in gross distributions amounting to US$234.1m. As at last year, there were five full-pledged retakaful companies, nine retakaful windows and 10 retakaful brokers in Labuan IBFC.
  • The total Islamic private funds in Labuan IBFC stood at US$3.2bn with market share of 33.4%. During 2009, one trust company had been deregistered due to merger with another Labuan trust company, bringing the total number of registered trust companies to 22. These companies posted an aggregate operating income of US$13m, down by 11.2% from US$14.6m in the previous year. (Bernama)
Media Prima is requesting NSTP to undertake the proposed withdrawal of listing status as NSTP’s current public shareholding spread is below the 25% threshold. Media Prima currently controls 89.6% of NSTP (194.7m shares) following the share swap exercise announced in Nov-09 which aimed to take NSTP private.
  • Media Prima is extending its voluntary general offer (VGO) to the remaining 10.4% stake in NSTP (22.6m shares) at RM2.40/share. This will be satisfied by six new Media Prima shares at RM2.00/share and one free Media Prima warrant for every five NSTP shares accepted. 
  • The share swap ratio of 1:1.2 is unchanged from the original offer. According to the proposal, this translates to an effective VGO price of RM2.83/share for NSTP, after taking into account the value of Media Prima warrants per offer shares. The proposed delisting and exit offer is expected to be completed by 3Q10. (Financial Daily, BMSB)
Johor will stop the sale of raw water to Singapore from the Skudai water treatment plant here upon the expiry of the related agreement next year, MB Datuk Abdul Ghani Othman said. "Negotiations are underway to return (the Skudai plant to the state government)," he said.
  • The Skudai plant is managed by PUB, Singapore's national water agency. Singapore's Environment and Water Resources Minister Dr Yaacob Ibrahim was quoted by the republic's media as saying that the city-state would not renew the agreement when it expired next year, saying Singapore has enough water supply. Another water supply agreement between Johor and Singapore will only expire in 2061. (Star)
The Southern Integrated Transportation Terminal in Bandar Tasik Selatan could be ready by July, Transport Minister Datuk Seri Ong Tee Keat said. The terminal will cater to all types of transportation.
  • We will have the bus services, taxi and rail services including the light rail transit, Keretapi Tanah Melayu’s commuter train service and Express Rail Link under one roof. The RM570m terminal is located on 19.8ha site adjacent to the Tasik Selatan’s LRT station and the Tasik Selatan KTM Komuter station. It has the capacity of handling about 40,000 passengers a day. (Star)
A new RM400m project has been proposed to the EPU to upgrade the existing Kota Baru- Kuala Krai road to ease heavy traffic flow between the towns. State Federal Development Department director Makhtar Mustapha said the department was waiting for the green light from the EPU to implement the project under the 10MP.
  • “This project is important because the road is a gateway for the north-bound traffic from Kuala Lumpur. Upgrading the 70km road will ensure smooth traffic flow during peak seasons.’’ he said. 
  • He said there was also a suggestion that Kota Baru and Kuala Krai be linked by a new highway, and the option was being looked into. Other major 10MP proposals include 16 new primary and secondary schools in the state. (Star)
Bank Negara Malaysia (BNM) wants to assess the feedback on the reform of third-party motor insurance before coming up with a proposal, says governor Tan Sri Dr Zeti Akhtar Aziz. "The matter will go through a consultative process.
  • We'll take note of the feedback we have received and do an assessment and a proposal," she said. Zeti said the scheme and the tariffs have been in place since 1978 and needed to be revised. 
  • BNM said last week that the revamp will be finalised by the third quarter of this year. So far, the Malaysian Bar Council has protested the proposed RM2m liability cap and the setting up of a new company to manage the scheme, under the central bank's proposed reform. It has urged Bank Negara to establish a cross-industry working committee to review the public feedback and propose a holistic solution. (BT)
Transmile Group has filed its first civil suit against its former chief executive officer, Gan Boon Aun and chief financial officer, Lo Chok Ping, after spending three years clearing up the mess left behind from an accounting scandal.
  • The former industry darling is seeking compensatory damages to be determined by the High Court, special damages of RM10.6m, costs on a full indemnity basis and interest on special and/or general damages as may be awarded by the High Court. 
  • Transmile and Transmile Management Sdn Bhd are suing Gan and Lo for grossly overstating the group's revenue by RM622m from 2004-06 and causing questionable payments and receipts in relation to the affairs of two wholly-owned subsidiaries - Transmile Air Services Sdn Bhd and Grouptech Sdn Bhd. (BT)
AirAsia’s subsidiary AirAsia Corporate Services Ltd has received the nod to carry on a Labuan captive insurance business in, from or through tax haven Labuan. It said the primary purpose of establishing the captive insurance business was to provide access for the company to commercial insurance markets and provide flexibility in managing and retaining its own risks.
  • It will also enable to directly insure AirAsia’s international aviation, maritime and liability risks. AirAsia will also be able to pay its insurance premium to the Labuan Captive Insurance business instead of paying through local insurers, bringing down insurance costs for the airline. (BT)
Malaysia's two main brewers say they will raise the prices of their beer and stout products by about 3% next month to offset higher costs. "The increase is industry-wide and across all categories (of products). It's primarily to catch up with rising raw material prices and input costs in the last three to five years," Carlsberg Brewery Malaysia's MD Soren Ravn said.
  • He said raw material prices have escalated by an average of about 10% per year over the last five years, making current product prices unsustainable. While a rising ringgit of late has helped cushion the blow somewhat, a moderate product price increase is still deemed necessary to secure the company's profitability going forward, he added. (BT)
Minority shareholders of MBf Holdings have rejected plans by its major shareholder to take the company private for 65 sen apiece. MBf will remain listed on the Main Market of Bursa Malaysia Securities as all resolutions were rejected. As a result, MBf's major shareholder, Tan Sri Dr Ninian Mogan Lourdenadin, shot down minority shareholders' request for a proposed final dividend of 10 sen per share for the FY12/09. (BT)

There were two listings on the Labuan International Financial Exchange (LFX) last year by Petronas Nasional. In August 2009, Petronas via its Labuan incorporated special purpose vehicle (SPV), listed a five-year US$1.5bn sukuk and a ten-year US$3bn conventional bond on LFX. The market capitalisation of the LFX as at 31 Dec 09, stood at US$18.1bn with a total of 28 listed instruments. (Bernama)

20100428 1238 Malaysian Economic News.

The stronger ringgit reflects the improvement in the country's economic conditions and should not be a cause for concern. Bank Negara Malaysia Governor Tan Sri Dr Zeti Akhtar Aziz said the ringgit had weakened substantially in 2009 but started to strengthen in 4Q09 and in 1Q10.
  • "We are seeing levels witnessed before. It had previously strengthened to a stronger level than what we are seeing today. Therefore, we are not concerned. We would be concerned, however, if there was excessive movement within a short period of time with disorderly market conditions or if there is a misalignment to the economic conditions," Zeti said. 
  • "We will make an assessment then on further normalisation of the interest rate at the next monetary policy meeting that will be held on 12-13 May," Zeti added. (Bernama, Malaysian Reserve)
The Ministry of International Trade and Industry (MITI) is very concerned with the labour shortage problem affecting the local automotive industry. It said that if the situation of labour shortage prolonged, the component parts industry would be affected with both locals and foreigners losing their job.
  • The shortage of staff in the northern region has reached critical levels as Malaysia could lose out on reinvestment of RM600m from multinational corporations (MNCs). 
  • MNCs face problems keeping the local workers with turnover rate at a whopping 25%. (Bernama, NST)
The Cabinet to date has not discussed any price increase of controlled items like petrol and sugar, said the Minister of Domestic Trade, Cooperatives and Consumerism Datuk Seri Ismail Sabri Yaakob. As such, he called upon people to not be influenced by rumours that there will be price hikes. (Bernama)

The number of taxpayers using electronic filing (e-filing) has exceeded the 1m mark, with the Inland Revenue Board (IRB) recording 1,011,703 users as of 26 Apr (+29.2% vs. 2009’s 783,173 users). (Bernama)

Deputy Finance Minister Datuk Dr Awang Adek Hussin said the property market this year will definitely perform better than in 2009 due to an improvement in the general economy. He added that Bank Negara may normalise the interest rate, but it will not to the extent of impacting adversely the property market. (BT)

As the world economy recovers with Asia leading the growth, the Labuan International Business and Financial Centre (Labuan IBFC) is strategically positioned to seize the opportunities presented by the expected revival in business sentiments and the higher risk appetite of investors. Tan Sri Dr Zeti Akhtar Aziz said the Labuan IBFC's central location in Asia made it the ideal regional platform for international investments. (Bernama)

Pos Malaysia Berhad and the Royal Malaysian Customs (KDRM) on 27 Apr inked an agreement to abolish the RM1 release charge imposed on each overseas parcel, effective 1 May. Pos Malaysia Chief Executive Officer Datuk Syed Faisal Albar said it was agreed that KDRM would absorb the cost for the release charge. Pos Malaysia will also shorten the Customs release transaction period to just 1 day, from the current 3 working days. (Bernama)

20100428 1232 Global Economic News.

US Conference Board consumer confidence index soared to a 18-month high of 57.9 in April (vs. 52.3 in March), above market expectations of 53.5. The Present situation index rose to 28.6 vs 25.2, Expectations rose to 77.4 vs. 70.4. Most regions improved, except for the South. Buying plans rose for autos and appliances. Concerns about business and job market conditions continued to ease, said Conference Board director Lynn Franco. She added that "continued job growth" will really be the key to keeping the momentum going. (Xinhua, CNN Money)

US home prices inched up 0.6% yoy in February according to the S&P/Case-Shiller 20- city index, with nine of the 20 cities showing gains. "The homebuyer tax credit, available until the end of April, is the likely cause for these encouraging numbers," said David Blitzer, chairman of the index committee at S&P. But home prices actually fell by 0.9% mom. The dip was small enough to put prices in positive territory compared with 12 months earlier, when home prices were falling very steeply. (CNN Money)

US congress must craft a credible plan soon to bring spending in line with revenue to close the unsustainable fiscal gap threatening the economy, key policymakers urged. "The path forward contains many difficult tradeoffs and choices, but postponing those choices and failing to put the nation's finances on a sustainable long-run trajectory would ultimately do great damage to our economy," Federal Reserve Chairman Ben Bernanke told a bipartisan panel charged with proposing ways to curb deficits. (CNN Money)

Hong Kong’s exports grew in Mar 10 at the fastest pace since 1992 on demand within Asia and an improving global economy. Shipments rose 32.1% yoy to HK$231.8bn (US$29.9bn), after gaining 28.5% in February. That topped the median estimate for a 25.2% gain in a survey. (Bloomberg)

Europe’s worsening debt crisis is intensifying pressure on policy makers to widen a bailout package beyond Greece after a cut in the nation’s rating to junk drove up borrowing costs from Italy to Portugal and Ireland. As German Chancellor Angela Merkel delays approval of a EUR45bn (US$59bn) Greek rescue, the crisis is spreading. Portugal’s benchmark stock index yesterday fell the most since the aftermath of Lehman Brothers Holdings Inc.’s collapse, while the extra yield that investors demand to hold Italian and Irish debt over bunds rose to a 10-month high. (Bloomberg)

South Korea’s current-account surplus advanced to a four-month high in Mar 10 as the global economic recovery spurred overseas demand for cars, semiconductors and petrochemicals. The surplus was US$1.69bn, the largest since Nov 09, from a revised US$167.6m in February. (Bloomberg)

Greece’s deepening financial crisis serves as a lesson for Japan, which needs to devise a “credible” fiscal plan to curtail the world’s largest public debt, an International Monetary Fund official said. “I don’t think the threat of a spillover from Greece will impact Japan for the moment,” Naoyuki Shinohara, deputy managing director at the International Monetary Fund, said in an interview in Washington yesterday.
  • Japan’s finances have come under scrutiny since January, when Standard and Poor’s cut the outlook of the nation’s AA rating to “negative.” Prime Minister Yukio Hatoyama’s government will unveil a fiscal plan in June to address a debt burden the Organization for Economic Cooperation and Development estimates is approaching 200% of gross domestic product. (Bloomberg)
Thailand’s economy may have grown between 8%-9% in 1Q as the global economic recovery boosted export orders, finance ministry spokesman Ekniti Nitithanprapas said. The first quarter wasn’t significantly impacted by political protests in Bangkok. Still, economic growth may slow in the second quarter, Ekiniti said.

Thailand’s tourist arrivals may fall as much as 10% this year as visitors shun the nation after anti-government protests turned violent, the Tourism Council of Thailand said. The number of foreign tourists may drop to as low as 12.7m, compared with 14.1m last year. The nation may lose as much as THB100bn (US$3.1bn) in tourism revenue, the industry body’s President, Kongkrit Hiranyakit, said. (Bloomberg)

Thailand’s Cabinet approved its fiscal budget for next year, and plans to increase spending by 22% percent to help bolster the economy amid political turmoil. The government plans to spend THB2.07tr in the 2011 budget period, which will start Oct. 1. The budget proposal will be discussed by Cabinet again on May 11 before being forwarded to the parliament for approval. (Bloomberg)

Greece’s credit rating was cut three steps to junk by Standard and Poor’s, the first time a euro member has lost its investment grade since the currency’s 1999 debut. Greece was lowered to BB+ from BBB+ by S&P, which also warned that bondholders could recover as little as 30% of their initial investment if the country restructures its debt. (Bloomberg)

Singapore’s visitor arrivals registered a 17.3% yoy growth to reach 928,000 in March (24.2%in Feb), It marked the highest ever recorded in the month of March and the fourth consecutive month of record visitor arrivals. (Bernama, Bloomberg)

Vietnam’s exports rose 8.9% yoy to US$20.1bn in January - April (-1.6% in Jan-Mar). Despite upbeat signs for exports, economists have remain worried about the trade deficit, which hit US$4.65 bn for the first four months, or 23.0% of the total export value. (Bloomberg)

Tuesday, April 27, 2010

20100427 1249 FKLI Mid Day Hourly Chart Study.

FKLI closed : 1340, changed : -3 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : recovering, seller still in.
Support : 1337, 1330, 1325 level.
Resistant : 1345, 1350, 1360 level.
Comment :
High volume tight range FKLI closed for halftime at lower ground after seller tested support level but didn't bare any result. Side way range bound market is still in play as shown on the hourly chart reading with testing attempt at support and resistant level.

20100427 1233 FCPO Mid Day Hourly Chart Study.

FCPO closed : 2550, changed : -10 points, volume : low.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : weakening, not much action from both buyer and seller.
Support : 2550, 2521, 2500 level.
Resistant : 2570, 2600, 2620 level.
Comment :
Ended lower 14 points range FCPO traded side way range bound through out the morning session directionless in slow transacted volume following a weaker overnight soy oil futures price. Hourly chart shows that market continue to have correction by trading side way range bound with some upside biased tendency.

20100427 0952 Malaysia Corporate News.

The government will let water stakeholders decide whether to accept the revised offer made by Splash, to buy water assets in Selangor for RM10.8bn. Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui said discussions led by the ministry's secretary-general and the Selangor state secretary with water operators are underway to discuss the deal. "If operators are happy to accept, I don't see why an offer like Splash won't go through. Maybe we will see a decision by the first half of the year," he said. (BT)
This is good new for Splash and the progress of the water consolidation in Selangor. This development suggests that Splash's take over proposal has the support from the Federal Government. Next step would be the response from the three concessionaires ie Konsortium Abass, Syabas and PNSB.

Top Glove announced a 1-for-1 bonus issue yesterday. Based on the company’s issued and paid-up share capital of 307.8m shares and assuming full exercise of all outstanding ESOS, a maximum of 348m new shares will be issued pursuant to the bonus issue exercise. This would enlarged the company's issued and paid-up capital to 696m shares. The proposal is due for completion by July this year after the company's EGM. (BMSB)
The news on the bonus issue is not a surprise as the company did indicate earlier its intention to reward its shareholders this way. We take a positive view of this as it will boost liquidity and make the stock more affordable in terms of absolute cost.

Ghazz Networks, the first Syariah based mobile phone, expects to launch its service in the East Coast latest by July this year said its MD Ghazali Mohd Saat said. The service will be operated by a company jointly established by Kuwait based Baraka Telecom Sdn Bhd and Ghazz Networks which has its office in Kota Baharu. "A total of 550 agents in Kelantan and Terengganu have been identified to expand the service network." He said 24 agents have already been given training and briefings on the special service which is touted to offer the lowest rates compared with other mobile phone operators. (Bernama)
Ghazz Networks will be the latest mobile virtual network operator (MVNO) to enter the market, bringing the total MVNOs to five. It is the first MVNO to be hosted by DiGi, which is trying penetrate the Malay/Muslim market.

The second Penang bridge project will cost less than the RM4.5bn initially estimated and is on track to be completed by Sep 2013, says Jambatan Kedua Sdn Bhd (JKSB) MD Datuk Professor Ismail Mohd Taib. "We are expecting it to be less than RM4.5bn with the competitive open tender for Package 3," says Ismail. So far, over 100 construction firms have shown keen interest in the RM750m Package 3 contract work. "About 40 of those companies have submitted their tender for Package 3. We hope the board can sit this month and if there are no problems, we can start work for Package 3 construction by the end-May," he said.
  • Package 1 of the second Penang bridge project involves a RM2.2bn contract work on the main span, substructures and foundation, which is expected to be completed in May 2012. Package 2 is a RM1.55bn contract for the construction of the superstructure, scheduled for completion in 2013. Construction of the Second Penang Bridge is now 24% complete and it should be open to traffic by Nov 2013. (BT)
Bank Negara Malaysia, which is currently assessing the applications for the licences of Islamic, takaful and commercial banks, will make known the institutions that get the licences by June this year or earlier. Deputy governor Datuk Mohd Razif Abdul Kadir said the central bank has received many applications from institutions across Europe, Asia and the Middle East. "By June, God willing, everybody will know... it could be earlier," he added. (BT)

Allianz Malaysia has proposed a rights issue to raise some RM611m to repay its credit facility, for working capital and to increase the capital base of its subsidiaries. It will issue renounceable rights issue of new irredeemable convertible preference shares of RM1 each in Allianz to entitled shareholders. Of the RM611m gross proceeds, RM490m will be used to repay the credit facility. (BT)

The government has received many complaints on Bank Negara Malaysia's proposal to restructure the country's third-party motor insurance policy, says Deputy International Trade and Industry Minister Datuk Mukhriz Tun Mahathir. "We are having some talks with relevant parties such as Bank Negara to see how best we can resolve this," he said. The government, when tabling the 2010 Budget, had announced the need to provide a basic motor insurance coverage for Third-Party Bodily Injury and Death (TPBID) at a reasonable premium that commensurate with the level of protection provided. It was reported recently that plans are in the offing to limit third-party motor insurance claims to RM100,000, inclusive of hospitalisation, rehabilitation, pain, suffering, loss of income and future earnings.
  • The central bank is considering restructuring third-party motor insurance as the amount of claims exceeded the premiums collected by insurance companies under the third-party motor insurance policies. (Bernama)
Toh Swee Hoe, senior director research and planning at the Malaysian Communications and Multimedia Commission (MCMC), expects the government to sell two 70MHz blocks and one 50MHz block at 2.6GHz for Long Term Evolution (LTE).
  • “There will be a public consultation later this year with industry on the marketing plan for the 2.6GHz,” Toh said. 
  • But with only three proposed LTE licenses, one of Malaysia’s four cellcos – Maxis, Celcom, Digi and U Mobile – will miss out on the valuable broadband spectrum.
  • In the meantime, the MCMC is conducting closed consultations with all four operators about refarming 2G spectrum at 850MHz, 900MHz and 1800MHz for 3G. “Bids for the new tenure will limited to only [existing] 2G-3G operators,” said Toh on the refarming exercise. (Telecomasia)
Marina Bay Sands, Singapore's second IR, will open its doors to the public today. At exactly 3.18pm, it would open the first phase of the resort with 963 out of 2,560 hotel rooms, a portion of its shopping mall, some restaurants, the Sands Expo and Convention Centre, the event plaza and the casino. (Bernama)

Malaysia Land Properties is launching new residential projects worth up to RM2.2bn this year in the Klang Valley and Johor. Mayland head of leasing Eddy Tan said there is pent up demand for serviced apartments and condominiums in Sri Hartamas, Ampang, Kepong and Jalan Kuching, Kuala Lumpur. He said Mayland will launch high-end serviced residences worth RM650m in Ampang. The project will be developed in a 50:50 joint venture with Land & General. "We have yet to identify a name for the project or the launch date. But it will be soon," Tan said. (BT)

Weida (M), which made its foray into the Middle East three years ago, has successfully delivered its first sewage treatment plant in Zabadani, to the Syrian government. The plant was completed within 18 months and is part of a RM319m contract awarded by the Syrian government to Weida in 2007. The contract was awarded through a government-togovernment initiative. The contract involved the formulation of a sewerage master plan for a population of about 4m, and the building of five sewage treatment plants and 15 water treatment plants to serve a population of about 1m, from conceptualisation through to design, construction and commissioning on a turnkey basis.
  • Currently, the group is negotiating for more projects in Syria, which includes a 30,000 cu m per day water reclamation plant, a 50,000 cu m per day centralised industrial wastewater treatment plant and more sewage treatment plants. (BT)
Berjaya Air will make a last return flight to Pangkor on Sunday, ending a decade of its air services to the island. "Owing to commercial reasons, we wish to announce that with effect from May 3 2010 Berjaya Air services into/out of Pangkor Island will be suspended until further notice," Berjaya Air website said.
  • Malaysia Airports Holdings (MAHB) group MD Tan Sri Bashir Ahmad said, "MAHB will discuss with the Ministry of Transport on the future of Pangkor Airport. It would be our intention to keep the airport open for flights." On plans of a possible extension of the runway, Bashir said that there are no such plans currently and that it would be up to the government to do so. 
  • Meanwhile, YTL-owned Pangkor Laut Resort and IGB Corp-owned four-star Pangkor Island Beach Resort expects little impact from the move. (BT)

Malaysia Airlines has cleared a backlog of more than 3,200 stranded passengers with 12 additional flights. The last extra flight to London departed yesterday at 2.10pm. Managing director Tengku Datuk Azmil Zahruddin said: “From the 12 extra flights, four were mounted to London, four to Amsterdam, two to Paris, one to Frankfurt and one to Rome." Tengku Azmil said besides the extra flights, MAS has also resumed normal flights to European countries since reopening of the airspace, which totalled 31 flights to date. During the closure of the European airspace from April 15 to 20, MAS had cancelled 24 flights out of Kuala Lumpur, affecting some 7,000 passengers. (NST)

Palm oil exports from Malaysia dropped 15% in the first 25 days of April compared with the month-ago period, independent market surveyor Intertek said. A total of 947,304 metric tons of shipments were tracked from April 1 to 25, down from 1,114,035 tons in the same period in March, Intertek said. (Bloomberg)

Takaful Ikhlas is eyeing a premium of RM25m in its third year of operation in Sarawak from about RM18m last year, president and CEO Datuk Syed Moheeb Syed Kamarulzaman said. Takaful Ikhlas, a subsidiary of MNRB Holdings, will aggressively promote a refreshed takaful (Islamic insurance) product called Ikhlas Hajj Saving to help it achieve the targeted premium, Syed Moheeb said. Takaful Ikhlas also plans to expand its sales agents in the state from 100 currently. Overall, it has about 7,000 agents nationwide. (BT)

US fund manager Franklin Templeton plans to offer Islamic equity funds in Malaysia and is setting up a bond investment team in Singapore, a senior executive said. Templeton has already hired a country head, two analysts and a compliance person in Malaysia and is in the process of recruiting a fund manager to handle sukuks, or Islamic debt, executive vicepresident Vijay Advani said. Advani said Templeton will initially develop Islamic-compliant equity funds for Malaysia by customising existing funds. It will then consider offering Islamic debt by tapping the expertise of its Middle East affiliate, Algebra. (BT)

Setia Haruman, the master developer of Cyberjaya, has clarified the tax issue involving the company is just a matter of late filing with the Inland Revenue Board (IRB) and says it has been given ample time to make the submission. Chief operating officer Lao Chok Keang said a news report that the company was raided by IRB recently had put Setia Haruman in a negative light but the visit by IRB officials was just a normal procedure by IRB. “I believe late filing is a normal occurrence that also affects other companies, not just us,” he added. (Starbiz)

The Bangladesh Mobile Phone Importers Association (BMPIA) has sent a deputation to the country's Prime Minister to argue for lower tax on imported phones, arguing that lowering the taxes would cut smuggling and lead to a net rise in revenues for the government. "Around 0.2m mobile phones sets are illegally entering the country every month," Faisal Alim, the secretary general of the association said. Currently, there is a 12% duty on each imported handset, while the trade association is asking for a lower fixed fee to be applied, regardless of the value of the phone. Annual rise in sales of mobile phones slumped from 21% per year to under 5% when the 12% import duty was imposed. It currently costs Tk100-150 (RM4.50-6.90) to smuggle a phone into the country so the association is seeking the lower fixed duty to be set at the lower Tk100 level. (Cellular News)

The bids for a pan-Indian 3G spectrum rose to Rs83.82bn (US$1.9bn), up 139.5% from the base price after 14 days of bidding. Eighty-two rounds of bidding had been completed so far. Mumbai has now overtaken Delhi to generate the highest bids for 3G as it now commands Rs12.5bn (US$0.3bn) per slot in Mumbai while Delhi fetches about Rs12.1bn (US$0.3m). Other high-end regions such as Maharashtra, Gujarat, Andhra Pradesh, Karnataka, Tamil Nadu continued to witness maximum demand during Mon's bidding. Even as metros and A-circles witnessed strong bidding, pushing the overall prices upwards, the demand remained weak in large parts of the country. (Economic Times of India)

Dijaya Corp’s wholly-owned subsidiary Terbit Berkat has acquired 11m ordinary shares of RM1 each and about 2.12m irredeemable convertible unsecured loan stocks 2005/2010 of nominal value of 50 sen each in Berjaya Corp for RM21.35m. The acquisitions will provide an opportunity for Dijaya to participate directly in BCorp’s equity and the continued growth of the BCorp Group. (Bernama)

Deleum plans to buy Rotary Technical Services Sdn Bhd, a rotating equipment service provider, for RM10.7m. Deleum, via unit Delcom Services Sdn Bhd, signed a conditional share sale agreement with Rotary Technical Services yesterday. “The proposed acquisition will provide a good opportunity for the group to expand its current service capability in the oil and gas market,” Deleum said. (BT)

Tanjung Offshore subsidiary Tanjung PetroConsult has received a RM7.3m letter of change order from Petronas Carigali to supply marine spread for the former's operations in Sarawak. (Financial Daily)

MBf Holdings group CEO Tan Sri Dr Ninian Mogan Lourdenadin will need to convince at least three quarters of the group’s so-called non-interested shareholders to accept his buyout proposal at today’s EGM. But it won’t be a walk in the park for the medical doctor who has helmed MBfH since 2002. As it is, a group of minority shareholders is determined to hold out for a better offer. “The smaller shareholders deserve a fairer deal,” a spokesman who is representing a group of minority shareholders in MBfH said. “The company is worth substantially higher than what he is offering,’’ he added. (Starbiz)

Dreamgate Corp is proposing to change its name to RGB International to significantly strengthen the group’s corporate branding and identity. The brand name “RGB” has been in existence for the last 25 years and is well established in the Asian gaming industry. The proposed name is subject to shareholders’ approval and will be effective following the issuance of the necessary certificate by the Companies Commission of Malaysia. (BMSB)

Ken Holdings is planning to venture into the hotel business, beginning with its prime three-acre (1.2ha) plot of land in Batu Ferringhi, Penang, to build a recurring income base. Ken Holdings' chairman and MD Kenny Tan Boon Kang said the company had scrapped its initial plan to build 14 high-end bungalows at the site. According to Tan, the Batu Ferringhi project is likely to take off next year to allow time for teh company to generate cash from existing property developments to initiate the project. (Financial Daily)

Pernec is creating a new revenue stream from its payphones business with its newly launched innovative eRas. Its MD Abdul Karim Abdul Sallam said eRas, an extended radio access system service, was a rebranded WiWi (hybrid WiFi and WiMAX) technology platform. He said eRas, which was acquired from Mimos was launched last month and was now ready for nationwide commercialisation. "It is the world's first WiFi and WiMAX solutions, which operates on 2.3 GHz frequency designed as an alternative for last-mile broadband connectivity to accelerate Malaysia's broadband ecosystem," he said. (Starbiz)

20100427 0941 Malaysian Economic News.

PM Datuk Seri Najb Tun Razak said the government is considering tax deductions for contributions toward environment funds (green technology) and for designing buildings that work harmoniously with nature. Details of these incentives will be revealed during the 2011 Budget. (NST)

The reluctant of commercial banks to give loans for green technology-related projects could be due to the lack of confidence in such ventures. PM Datuk Seri Najib Tun Razak said: “In a way, I understand because many of the requests are quite developmental in nature in the sense the technology is not proven yet, so the risk factor is much higher.” (The Star)

The federal government has agreed to set aside a special fund to implement all development projects in Sabah and Sarawak. The total allocation will be determined later, according to an officer of the PM’s Department. (Bernama)

Deputy Minister of International Trade and Industry Datuk Mukhriz Mahathir said: "Even if the ringgit is strong, our exports are still very strong. We've been extremely encouraged by our trade figures in 1Q. The market forces will decide on the ringgit movement. “ (Bernama)