- Indonesian output may gain 3m tons to 25.5m tons, said Mistry. Palm oil traded at RM3,134 yesterday. Lower palm oil prices may help to ease global food costs that rallied to a record in February, according to a United Nations gauge, and held within 2% of that peak in June. Mistry, who’s traded the oil used in food and fuels for more than three decades, forecast a rebound to RM4,000 in 2012.
- By September, “the peak summer demand will have gone, Indonesian biodiesel production will slow down dramatically and CPO production will rise strongly,” Mistry said according to the remarks, referring to crude palm oil by its initials. Malaysian stockpiles will reach a record in December, he added. (Bloomberg)
Petronas Dagangan : Petronas Dagangan Bhd (PDB) will continue to spend a major portion of its annual capital expenditure (capex) of up to RM400m to expand its business, says Chairman Datuk Wan Zulkiflee Wan Ariffin. The network expansion and upgrading of existing facilities will take up the major portion of PDB's annual capex. "Our capex is in the range of RM350-400m yearon-year.
- The expansion of retail network takes up a chunk of the capex portion.He said another portion of PDB's capex will go to the KLIA2 project undertaken by one of its subsidiaries. "That project in KL International Airport (KLIA) is scheduled to be completed by end of next year," he added.
- He said retail business remains the flagship business for PDB at 32% market share with a respectable 4.7% increase in sales volume over the year, contributing half of the company's net margin. On the commercial side, he said PDB remains the leader with 70% market share contributed by the increase of sales volume for diesel, aviation fuel and bitumen. (BT)
Rubber : Natural rubber output in key growing countries will expand at a slower pace in the 3Q11 as a severe leaf disease delays tapping in Vietnam, according to the Association of Natural Rubber Producing Countries (ANRPC).
- Production from member countries, representing 92% of global supply, may increase 3.4% to 2.77m mt during the July-to-September period compared with 12.1% a year earlier.
- Supply growth in the 1Q and 2Q this year was 10.5% and 3.3% respectively. The ANRPC said, “Slow growth in supply and high oil price could help natural rubber market to continue staying strong. The supply deficit will probably continue through 2018 as gains in production may be marginal”. (ANRPC)
HeiTech Padu : HeiTech Padu Bhd is keen to invest in other information technology-related companies after buying a major stake in Grand-Flo Solution Bhd and may raise its stake in Tricubes Bhd. HeiTech had in April ceased to be a substantial shareholder of Tricubes. "We sold some (Tricubes) shares due to market opportunity.
- We saw the price was very good to realise our very old investment in Tricubes."I think it was a very good move to have sold some and if we were to buy back we will buy back at a lower price," HeiTech president Safiee Mohammad said.
- He explained that it may buy shares of Tricubes as HeiTech believe Tricubes has future potential. Moreover, Tricubes has another business that provides special solutions that may be relevant to Heitech's total integration business. (BT)
WCT : WCT has been awarded a RM115.1m earthworks contract by Vale Malaysia Manufacturing S/B (VMM). The scope of works under the Contract comprises earthwork, drainage, roads & pavement, slope protection works and temporary sedimentation ponds at VMM's Project - Phase 1A (Stage 1), Teluk Rubiah, Perak, Malaysia, expected to be completed in April- 2013. (BMSB)
Megasteel : Megasteel Sdn Bhd chairman Tan Sri William Cheng has criticised the Malaysian Iron and Steel Federation (MISIF) for making “misrepresentations” on Megasteel's proposed safeguard action on hot rolled coils (HRC). He said Malaysia has been flooded with imports of HRC by some unscrupulous importers who were exploiting loopholes in the import regulations.
- He reiterated that Megasteel's petition for safeguard measures would not affect imports necessary for Malaysia to compete internationally, and imports of grades not available locally.
- In addition, Cheng said since Megasteel commenced operation, it has never raised prices substantially and indiscriminately to take advantage of the so-called “tariff wall” as alleged by MISIF. He said domestic prices of HRC in Indonesia and Thailand were higher at US$859/mt and US$832/mt respectively compared with Malaysia's US$805/mt. (Star Biz)
Automotive : Following a meeting with the Domestic Trace, Cooperatives and Consumerism Ministry, the Malaysian Automotive Association (MAA) said the bulk of the amendments that were made to the Hire Puchase Act would be revised. "The changes will now make it easier for registrations and will take effect immediately.
- The Government will issue a circular on the changes next week," said MAA president Datuk Aishah Ahmad. Aishah clarified that the new revision by the Government did not mean that the HPA would revert to its pre-June 15 amendment status (Starbiz)
IOI to buy oil palm estate for RM830m
IOI Corp, through an indirect wholly-owned subsidiary, Sri Mayvin Plantation SB, has proposed to acquire 11,977.91ha of oil palm plantation land in Sabah from Pertama Land & Development SB for RM830m. Pertama Land is a wholly-owned subsidiary of Duta Plantations SB, which in turn is a wholly-owned subsidiary of Dutaland. The land consists of five oil palm estates in the districts of Labuk and Sugut. IOI said the proposed acquisition, to be financed via internal funding or borrowing, would include all the assets such as buildings, fixtures & fittings and motor vehicles. (Bernama) – Please see accompanying report
Petronas Carigali discovers gas offshore Sabah
Petronas Carigali SB, the exploration and production arm of Petroliam Nasional (Petronas), has made two significant gas discoveries in the shallow water areas offshore west coast of Sabah. Petronas said the first discovery was via the Zuhai East-1 well, which was located in the Samarang Asam Paya Block about 130km south-west of Kota Kinabalu. "The current estimate of gas-initially-in-place is about 550bn standard cu ft," it said. (Financial Daily)
Panel Point spearheads USD100bn Trans-asian oil and gas pipeline project
PanelPoint SB, a local entity, signed a memorandum of understanding (MoU) with six local and foreign organisations to spearhead the USD100bn Trans-Asian Oil and Gas Pipeline (TAOG) project to develop Asean and China's first natural gas pipeline network. The 7,000 km pipeline project, expected to be fully completed in 10 years, will be extended from Mersing, Johor, and connect to an offshore utility platform in Northern Natuna Islands in Indonesia before continuing northbound to Ho Chi Minh City and Hanoi in Vietnam and subsequently link to Hong Kong and Guangzhou, China. (Bernama)
SP Setia eyes E&O
Major shareholders of SP Setia, Malaysia's biggest developer, plan to buy a strategic stake in property and hospitality company Eastern and Oriental (E&O), people familiar with the matter said yesterday. Business Times learnt that shareholders of SP Setia had made overtures in recent months with certain shareholders of E&O, who may have included Temasek Holdings (Pte) Ltd director Goh Yew Lin. SP Setia's three biggest shareholders currently are PNB with a 32.9% stake, the EPF with a 14.47% interest, and SP Setia president and chief operating officer Tan Sri Liew Kee Sin, with 11.96%. As at 30 July 2010, Singapore's G.K. Goh Holdings Ltd owned 13% of E&O. (BT)
No indication from AFG major shareholders to sell stake, says chairman
Alliance Financial Group (AFG) board has received no indication from its substantial shareholders of any intention to sell its stake in the financial services group or the entry of a new shareholder, said AFG chairman Datuk Oh Chong Peng. "We have not been informed of any intention to exit. (In light of a trend toward industry consolidation), we are happy as we are as a domestic bank. There is no reason for us to seek mergers and acquisitions," Oh told reporters after AFG's AGM. (Financial Daily)
Perodua revises down sales forecast
Perodua has revised downwards its full-year sales forecast to 190,000 units, from 195,000 units set previously, partly due to the Japan disaster and newly-amended Hire Purchase Act. "The tsunami has impacted production, which in turn, affected sales." managing director Datuk Aminar Rashid Salleh said. He added that the amended Act has also affected its sales. "In general, we saw a 20-25% decline in bookings. To a certain extent, the process of buying a vehicle has been lengthened. "Of course, it's not fair to say that bookings declined because of the revised Act itself. It is also due to other factors like consumers' 'wait-and-see' attitude, looking at the economy situation, subsidies, and others," he explained. (BT)
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