JAKS subsidiary gets RM201m building job
JAKS Resources’ subsidiary has won a RM201m construction contract for a commercial development in Petaling Jaya, Selangor, from MNH Global Assets Management SB. The commercial development of Phase 1-5 Commercial Block of 15-storey and 4-storey basements by JAKS SB (JSB) is due to be completed by March 2012. MNH Global Assets is wholly owned by Island Circle Development (M) SB, a major shareholder of JAKS Island Circle SB, which in turn is majority owned by JSB. (BT)
SunCity acquires land in Johor for expansion
Sunway City’s wholly owned subsidiary Asli Budimas SB has entered into an agreement with Bukit Ledang Development SB to purchase approximately 64.6 acres of land for RM134.52m in tandem with its expansion plan in Johor. According to its announcement to Bursa Malaysia, the acquisition will provide SunCity an estimated GDV of RM932m when the land in Plentong, which is strategically located within the Iskandar Malaysia development region, is fully developed. The land price works out to RM47.78 per sq ft. (Financial Daily)
Sime to build pilot bio-ethanol plant
Sime Darby Plantation SB is partnering Japan's Mitsui Engineering and Shipbuilding Co Ltd to build and operate a bio-ethanol demonstration plant, which will convert empty oil palm fruit bunches into bio-ethanol. Sime Darby officials said the plant would cost about USD10m (RM30.9m). Bio-ethanol is used as fuel for cars and unlike biodiesel, which is a blend of palm oil and diesel, it is made from plantation waste. The bio-ethanol plant will use fruit bunches as the main raw material, which is abundant and available throughout the year, Sime said in a statement. The collaboration is being undertaken by Sime Darby Research SB, the research and development arm of Sime Darby Plantation. The joint-venture plant will be built next to Sime Darby Plantation's Tennamaram palm oil mill at Bestari Jaya in Selangor. (BT)
PNB mum on talk of potential mergers
Permodalan Nasional Bhd (PNB) was mum on speculation of mergers among its property companies or the relisting of its wholly-owned property group Island & Peninsular Group SB (I&P). "We will make the necessary announcements when the time comes," president and group chief executive Tan Sri Hamad Kama Piah Che Othman told reporters yesterday. There have been reports that major property groups like SP Setia and Sime Darby Property could be persuaded to merge. PNB is the single biggest shareholder in SP Setia and it also controls Sime Darby. As for the I&P group, it is the result of a merger with sister companies Petaling Garden and Pelangi. All three were once listed before being taken private by PNB in July 2007. The group now has a combined landbank of about 2,200ha in the Klang Valley and Johor, and has developed property projects over 35 townships such as Bukit Damansara, Bandar Kinrara, and Alam Damai (BT)
CIMB: CIMB Niaga's second sub debt over-subscribed. CIMB Group Holding Bhd's (CIMB Group) subsidiary PT Bank CIMB Niaga Tbk (CIMB Niaga) completed the issuance of IDR1.6t (RM552.3m) subordinated debt, which was oversubscribed by three times. The successful transaction was anchored by a good spread of order book with 55% orders from institutional investors, 25% corporate and 20% retail. Another important breakthrough is the increased cross-border interest that accounted for 16% of the total order book. (Source: The Edge Financial Daily)
Banking: Foreign banks join MEPS. Five major foreign banks in Malaysia have joined the Malaysian Electronic Payment System (MEPS) automated teller machine (ATM) network. The five banks are HSBC Bank Malaysia Bhd, OCBC Bank (M) Bhd, United Overseas Bank (M) Bhd, Standard Chartered Bank Malaysia Bhd and Citibank Bhd. The banks will launch the service individually over time as soon as their respective systems are fully operational. (Source: The Star)
Plantation: Mohd Isa new Felda chairman. Former Negeri Sembilan menteri besar Tan Sri Mohd Isa Abdul Samad has been appointed chairman of the Federal Land Development Authority (Felda) effective Jan 1 next year. Mohd succeeds Tan Sri Dr Mohd Yusof Noor who has been appointed as adviser to the minister in charge of Felda. (Source: The Edge Financial Daily)
Transportation: Locations of seven LRT stations approved. The Subang Jaya Municipal Council (MPSJ) has approved seven new locations for the light-rail transit (LRT) stations. The stations approved at the Kelana Jaya link consist of Station 5 at SS15, Station 6 at SS17, Station 8 at USJ 10, Station 9 at USJ 15, and Station 10 at USH 21. Station 3 and Station 4 at the Ampang link which will be built along the Bukit Jalil-Puchong highway were approved as well. (Source: New Straits Times)
DRB-Hicom to divest stakes in Uni.Asia?
DRB-Hicom is exploring the possibility of divesting its interests in insurers Uni.Asia Life Assurance and Uni.Asia General Insurance, say sources. There has been an interest in DRB’s insurance units but the potential buyer is still studying the numbers. It has not reached the decision stage yet. DRB’s major shareholder, Tan Sri Syed Mokhtar Al Bukhary, declined to comment. DRB has a 51% stake in Uni.Asia Life and 34.73% stake in Uni.Asia General. Its current equity partner in the two units is Singapore’s UOB. (Financial Daily)
QSR, KFC not for sale
Speculation about Johor Corp Bhd's (JCorp) plan to divest its stakes in QSR Brands Bhd and KFC Holdings (M) Bhd was put to rest yesterday after the state investment company reiterated it has no plans to sell those prized assets. “QSR and KFC are not for sale,” JCorp president and chief executive Kamaruzzaman Abu Kassim said in a statement, adding that it did not make sense for the company to sell its “core business”. (StarBiz)
EPF investment income at RM5.8bn
The Employees Provident Fund (EPF) raked in RM5.75bn in investment income for the third quarter ended 30 Sept, a 5.12% increase from RM5.47bn registered in the same quarter last year. In a statement yesterday, it said equities investment was the largest contributor with RM2.4bn, representing a 2.56% increase compared with RM2.34bn recorded in the previous corresponding period. (Bernama)
MAHB unveils headline KPIs for 2011
Malaysia Airports Holdings Bhd (MAHB) has highlighted achieving earnings before interest, tax, depreciation and amortisation of RM773.4m; a return on equity of 10.73% and a top 5 worldwide ranking for KL International Airport as its headline key performance indicators (KPIs) in 2011. MAHB told Bursa Malaysia yesterday that the headline KPIs were set based on its strategic plans and long-term targets that were developed under its fiveyear (2010-2014) business direction planning initiative. MAHB said it believed that 2010 would end with a double-digit passenger and cargo growth compared with 8.2% achieved for passengers in 2009. The sustained 2010 growth, it added, was expected to lay the foundation for further growth in 2011. (StarBiz)
F&N to redevelop PJ Land
Fraser & Neave Holdings (F&N) will redevelop the land in Petaling Jaya that has been housing its dairy manufacturing plant since 1959 to feature commercial and residential properties with gross development value of at least RM1bn. The project is expected to kick start another major property venture for the group, which would see its development in Pudu coming to an end. F&N said the existing manufacturing plant in Section 13 would be relocated to Pulau Indah commencing end-2011. (FinancialDaily)
MESB shareholders advised to reject takeover offer
The independent adviser has recommended that shareholders and directors of MESB reject the takeover offer by the company’s executive director Teoh Hwa Peng, who had recently offered 33 sen apiece for shares he did not already own in the engineering outfit. TA Securities, the appointed independent adviser, said Teoh’s cash offer was “not fair and not reasonable” given that the proposal did not include a premium on the offer price. (FinancialDaily)
Wednesday, December 29, 2010
20101229 0853 Global Market Related News.
Oil steadies above $91 ahead of U.S. inventory data
SINGAPORE, Dec 29 (Reuters) - Oil steadied above $91 a barrel, as forecasts for warmer weather in the U.S. Northeast offset expectations for a further drawdown in crude stocks in the world's largest oil user.
"Oil is tracking the cold weather in the Northeast of the United States and also the dollar against the euro," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.
U.S. corn, soy dip from over 2-year highs, wheat firm
SINGAPORE, Dec 29 (Reuters) - U.S. corn and soybean futures edged lower, easing from highest in over two years scaled in the previous session as dry weather in Argentina continued to raise concerns over supplies.
"Soybeans, corn and wheat should continue the bullish trend next year, but there could some profit-taking at the end of the year," said Kazuhiko Saito, chief commodities analyst at Fujitomi Co in Tokyo.
Japan, China shares fall after rate rise; euro up
SINGAPORE, Dec 28 (Reuters) - Shares in Japan and China eased as concerns that further Chinese monetary tightening will cool the engine of world economic growth overshadowed Japanese data that pointed to improving demand. "Data in recent weeks have been supportive of the stocks and commodity markets globally," said David Cohen, director of Asian economic forecasting at Action Economics.
Oil prices climb above $91/bbl, dollar, cold snap supports
SINGAPORE, Dec 28 (Reuters) - U.S. crude prices rose above $91 a barrel, hovering just below a 26-month top hit in the previous session, supported by a weaker dollar and hopes that a major snow storm on the U.S. East Coast would stoke demand for heating oil.
"Data in recent weeks have been supportive of the stocks and commodity markets globally. The U.S. will avoid a double-dip. The Asian region including Japan looks a little bit better, with its industrial production finally showing an increase," said David Cohen, director of Asian Economic Forecasting at Action Econ.
Gold up on dollar weakness, Asian buying
SINGAPORE, Dec 28 (Reuters) - Spot gold prices firmed as it was supported by a weaker dollar and buying interest in Asia, while investors hoped for a further rally in prices next year.
"Gold is riding high on its own, but with the euro/dollar bid, it's even better," said a Singapore-based trader. "Asians have been non-stop buyers, and want to load up when gold is some 40 bucks off the all-time highs."
COMMODITY MARKETS: Markets hit new highs as China rate hike barely hurt
NEW YORK, Dec 27 (Reuters) - Commodity markets took China's surprise rate hike in stride on Monday, with soybeans and oil hitting two-year peaks and copper hitting record highs amid razor-thin trade as investors stayed focused on fundamentals in the final trading week of the year.
"A lot of people were unable to come to work today because of the storm and when you add the uncertainties from the Chinese rate hike to that, it explains the volumes you have," said George Gero, senior vice president at RBC Wealth Management in New York.
GLOBAL MARETS: US stocks recover after China rate move, euro up
NEW YORK, Dec 27 (Reuters) - U.S. stocks closed little changed and the dollar lost ground to the euro in thin trade on Monday, buffeted by China's Christmas Day interest rate hike and a blizzard that pounded the northeastern United States.
"The market is pretty much flat but we ended well off our lows and although we have no buyers stepping in, we have to give the bulls the victory seeing how the market turned around," said Ryan Detrick, technical analyst at Schaeffer's Investment Research at Cincinnati, Ohio.
SINGAPORE, Dec 29 (Reuters) - Oil steadied above $91 a barrel, as forecasts for warmer weather in the U.S. Northeast offset expectations for a further drawdown in crude stocks in the world's largest oil user.
"Oil is tracking the cold weather in the Northeast of the United States and also the dollar against the euro," said Tetsu Emori, a fund manager at Tokyo-based Astmax Co Ltd.
U.S. corn, soy dip from over 2-year highs, wheat firm
SINGAPORE, Dec 29 (Reuters) - U.S. corn and soybean futures edged lower, easing from highest in over two years scaled in the previous session as dry weather in Argentina continued to raise concerns over supplies.
"Soybeans, corn and wheat should continue the bullish trend next year, but there could some profit-taking at the end of the year," said Kazuhiko Saito, chief commodities analyst at Fujitomi Co in Tokyo.
Japan, China shares fall after rate rise; euro up
SINGAPORE, Dec 28 (Reuters) - Shares in Japan and China eased as concerns that further Chinese monetary tightening will cool the engine of world economic growth overshadowed Japanese data that pointed to improving demand. "Data in recent weeks have been supportive of the stocks and commodity markets globally," said David Cohen, director of Asian economic forecasting at Action Economics.
Oil prices climb above $91/bbl, dollar, cold snap supports
SINGAPORE, Dec 28 (Reuters) - U.S. crude prices rose above $91 a barrel, hovering just below a 26-month top hit in the previous session, supported by a weaker dollar and hopes that a major snow storm on the U.S. East Coast would stoke demand for heating oil.
"Data in recent weeks have been supportive of the stocks and commodity markets globally. The U.S. will avoid a double-dip. The Asian region including Japan looks a little bit better, with its industrial production finally showing an increase," said David Cohen, director of Asian Economic Forecasting at Action Econ.
Gold up on dollar weakness, Asian buying
SINGAPORE, Dec 28 (Reuters) - Spot gold prices firmed as it was supported by a weaker dollar and buying interest in Asia, while investors hoped for a further rally in prices next year.
"Gold is riding high on its own, but with the euro/dollar bid, it's even better," said a Singapore-based trader. "Asians have been non-stop buyers, and want to load up when gold is some 40 bucks off the all-time highs."
COMMODITY MARKETS: Markets hit new highs as China rate hike barely hurt
NEW YORK, Dec 27 (Reuters) - Commodity markets took China's surprise rate hike in stride on Monday, with soybeans and oil hitting two-year peaks and copper hitting record highs amid razor-thin trade as investors stayed focused on fundamentals in the final trading week of the year.
"A lot of people were unable to come to work today because of the storm and when you add the uncertainties from the Chinese rate hike to that, it explains the volumes you have," said George Gero, senior vice president at RBC Wealth Management in New York.
GLOBAL MARETS: US stocks recover after China rate move, euro up
NEW YORK, Dec 27 (Reuters) - U.S. stocks closed little changed and the dollar lost ground to the euro in thin trade on Monday, buffeted by China's Christmas Day interest rate hike and a blizzard that pounded the northeastern United States.
"The market is pretty much flat but we ended well off our lows and although we have no buyers stepping in, we have to give the bulls the victory seeing how the market turned around," said Ryan Detrick, technical analyst at Schaeffer's Investment Research at Cincinnati, Ohio.
20101229 0852 Soy Oil & Palm Oil Related News.
US soy-product futures end higher as heat, dryness raise worries about Argentine production. Argentina is world's leading exporter of soymeal and soyoil. Poor weather may reduce output potential or discourage farmers from finishing planting soybeans, which are about three-quarters sown, analysts say. Export demand for soy could shift to the US from Argentina, they add. CBOT March soymeal closes up $6.90 at $370.30 per short ton. CBOT March soyoil closes up 0.52 cent at 57.75 cents per pound. (Source: CME)
U.S. soy climbs to near 28-month top; corn, wheat firm
SINGAPORE, Dec 28 (Reuters) - U.S. soy futures rose for a seventh straight session to its highest in nearly 28 months, while corn hovered around its 29-month peak as dry weather in Argentina raised crop concerns amid strong global demand. "The most important factor is the weather in Argentina where forecasts show that extremely high temperatures and below normal rains are likely to hit production," said Ker Chung Yang, an analyst at Phillip Futures in Singapore. (Source: CME)
Weather concerns lift palm oil to fresh 33-mth highs
KUALA LUMPUR, Dec 28 (Reuters) - Malaysian crude palm oil futures rose to fresh 33-month highs driven by prospects of erratic weather sapping vegetable oil supplies at a time when demand remains resilient. "Palm oil production will fall more than 15 percent in this month as the weather is pretty bad in palm oil producing states," said a trader with a foreign brokerage in Kuala Lumpur.
Funds widen net longs in corn and soybeans - CFTC
CHICAGO, Dec 27 (Reuters) - Large speculators aggressively expanded their net long position in Chicago Board of Trade corn futures in the week ended Dec. 21, data from the U.S. Commodity Futures Trading Commission showed on Monday.
Noncommercial traders held a net long in CBOT corn of 331,018 contracts, up 25,503 lots from the previous week, CFTC's Commitments of Traders Supplemental Report showed.
La Nina dryness batters Argentina's soy belt - govt
BUENOS AIRES, Dec 27 (Reuters) - Dryness caused by the La Nina weather phenomenon persisted in Argentine soy-growing regions last week, slowing plantings and preventing soy crops from developing normally, the government said in a report.
Argentina is the world's No. 3 soybean exporter and the government has forecast 2010/11 area at 18.7 million hectares (46.20 million acres), slightly above last season despite some farmers favoring corn over soy. The two crops fight for acreage in Argentina.
U.S. soy climbs to near 28-month top; corn, wheat firm
SINGAPORE, Dec 28 (Reuters) - U.S. soy futures rose for a seventh straight session to its highest in nearly 28 months, while corn hovered around its 29-month peak as dry weather in Argentina raised crop concerns amid strong global demand. "The most important factor is the weather in Argentina where forecasts show that extremely high temperatures and below normal rains are likely to hit production," said Ker Chung Yang, an analyst at Phillip Futures in Singapore. (Source: CME)
Weather concerns lift palm oil to fresh 33-mth highs
KUALA LUMPUR, Dec 28 (Reuters) - Malaysian crude palm oil futures rose to fresh 33-month highs driven by prospects of erratic weather sapping vegetable oil supplies at a time when demand remains resilient. "Palm oil production will fall more than 15 percent in this month as the weather is pretty bad in palm oil producing states," said a trader with a foreign brokerage in Kuala Lumpur.
Funds widen net longs in corn and soybeans - CFTC
CHICAGO, Dec 27 (Reuters) - Large speculators aggressively expanded their net long position in Chicago Board of Trade corn futures in the week ended Dec. 21, data from the U.S. Commodity Futures Trading Commission showed on Monday.
Noncommercial traders held a net long in CBOT corn of 331,018 contracts, up 25,503 lots from the previous week, CFTC's Commitments of Traders Supplemental Report showed.
La Nina dryness batters Argentina's soy belt - govt
BUENOS AIRES, Dec 27 (Reuters) - Dryness caused by the La Nina weather phenomenon persisted in Argentine soy-growing regions last week, slowing plantings and preventing soy crops from developing normally, the government said in a report.
Argentina is the world's No. 3 soybean exporter and the government has forecast 2010/11 area at 18.7 million hectares (46.20 million acres), slightly above last season despite some farmers favoring corn over soy. The two crops fight for acreage in Argentina.
Monday, December 27, 2010
20101227 1849 FCPO EOD Daily Chart Study.
Bollinger band reading : upside biased.
MACD Histrogram : recovering, buyer holding on.
Support : 3750, 3720, 3700 level.
Resistance : 3770, 3800, 3870 level.
Comment :
FCPO rallied recorded significant gain with better volume changed hand despite weak export data released as tight supply concern due to weather factor plus soy oil and crude oil continue stand firmer.
Daily chart formed a wide range up bar candle closed right at upper Bollinger band resistant level with the band width about to turn outward suggesting a further upside biased market development testing higher resistant level.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20101227 1819 FKLI EOD Daily Chart Study.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : turned downward, buyer reducing exposure.
Support : 1500, 1485, 1470 level.
Resistance : 1515, 1530, 1550 level.
Comment :
Slightly improved volume FKLI closed recorded loss while regional market ended mixed after surprise China central bank official raised interest rate by 25 basis point on 26 Dec 2010.
Daily chart formed 4th doji bar candle with small body after market traded range bound within a 4 points range market with the reading suggesting a side way range bound upside biased market development.
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.
20101227 0959 Global Economics Related News.
China: Increases rates to counter highest inflation in two years
China raised interest rates for the second time since mid-October to counter the fastest inflation in more than two years, and more moves may follow. The benchmark one-year lending rate will rise by 25 basis points to 5.81% and the one-year deposit rate will climb by the same amount to 2.75%, the People’s Bank of China said in a one-sentence statement on its website. (Bloomberg)
France: AAA credit rating affirmed by S&P on budget confidence
France’s standing as one of the world’s safest borrowers was affirmed by Standard & Poor’s, reflecting that the Euro-area’s second largest economy will rein in its budget deficit. At the end of a year in which rating companies downgraded the debt of Euro nations from Spain to Ireland, S&P said that France deserves a AAA sovereign credit rating because of the “wealth and depth” of its economy. (Bloomberg)
US: Consumer spending, investment increase
Americans increased spending in November for a fifth straight month and companies stepped up orders for equipment, more evidence the US economy is gaining momentum heading into 2011. Household purchases rose 0.4% after a 0.7% increase in October that was almost twice as large as previously estimated, figures from the Commerce Department showed. The agency also reported a 2.6% gain in bookings for capital goods like computers and electronics. (Bloomberg)
US: Home prices probably fell, confidence up
Home prices probably dropped in October, a sign housing will remain a weak link as the US recovery accelerates into the new year, economists said before reports this week. Property values in 20 cities were down 0.2% from October 2009, the first year-over-year decline since January, according to the median forecast of 14 economists surveyed ahead of a report from S&P/Case-Shiller. Other data the same day may show consumer confidence rose to a seven-month high in December. (Bloomberg)
China raised interest rates for the second time since mid-October to counter the fastest inflation in more than two years, and more moves may follow. The benchmark one-year lending rate will rise by 25 basis points to 5.81% and the one-year deposit rate will climb by the same amount to 2.75%, the People’s Bank of China said in a one-sentence statement on its website. (Bloomberg)
France: AAA credit rating affirmed by S&P on budget confidence
France’s standing as one of the world’s safest borrowers was affirmed by Standard & Poor’s, reflecting that the Euro-area’s second largest economy will rein in its budget deficit. At the end of a year in which rating companies downgraded the debt of Euro nations from Spain to Ireland, S&P said that France deserves a AAA sovereign credit rating because of the “wealth and depth” of its economy. (Bloomberg)
US: Consumer spending, investment increase
Americans increased spending in November for a fifth straight month and companies stepped up orders for equipment, more evidence the US economy is gaining momentum heading into 2011. Household purchases rose 0.4% after a 0.7% increase in October that was almost twice as large as previously estimated, figures from the Commerce Department showed. The agency also reported a 2.6% gain in bookings for capital goods like computers and electronics. (Bloomberg)
US: Home prices probably fell, confidence up
Home prices probably dropped in October, a sign housing will remain a weak link as the US recovery accelerates into the new year, economists said before reports this week. Property values in 20 cities were down 0.2% from October 2009, the first year-over-year decline since January, according to the median forecast of 14 economists surveyed ahead of a report from S&P/Case-Shiller. Other data the same day may show consumer confidence rose to a seven-month high in December. (Bloomberg)
20101227 0958 Malaysia Corporate Related News.
No listing plan for Petronas Carigali
National oil company Petroliam Nasional Bhd (Petronas) has shot down market talk that it will list wholly-owned exploration and production unit Petronas Carigali SB. “We have no plans to list Petronas Carigali or any other unit,’’ a Petronas spokesperson told StarBizWeek when contacted last Friday. Several business dailies last Saturday quoted MIDF Amanah Investment Bank Bhd’s research head as saying that Petronas Carigali could list on Bursa Malaysia next year in a move to draw foreign funds. The research head said that analysts had been told by Bursa officials of a possible initial public offering (IPO) for Petronas Carigali. However, Bursa clarified in a media statement yesterday evening that its listing department had not received any new listing application by Petronas. (StarBiz)
AirAsia boss says no plan to buy Virgin
AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandez denies there are any plan to buy a stake in British airline Virgin Atlantic as reported by the Sunday Times newspaper. “There are no discussions taking place,’’ he told StarBiz from London yesterday. The Sunday Times said in an unsourced report yesterday that Fernandez, who runs Asia’s largest Budget carrier by fleet size, had renewed his interest in the UK airline after previously considering and deciding against a bid. Any deal could be worth up to GBP1bn, the newspaper said. (StarBiz)
Siemens eyes rail jobs
Siemens, a global expert in rail transport technology, is preparing to bid for several potentially lucrative railrelated tenders in Malaysia. Several such jobs are expected to be offered in the near future, including the supply of 40 locomotives for rail company Keretapi Tanah Melayu Bhd (KTMB), the Ampang light rail transit (LRT) extension and possibly the Kuala Lumpur-Singapore high speed train project. Siemens also plans to bid for the Ampang LRT extension project in which tender is set to be out on 11 Jan 11 next year. "What the industry expects, especially for the Ampang line, is that the specification will be open enough to establish competition. (We understand) for the Ampang line, the specification will be more extensive, so it means that companies like Siemens and other big supply companies would be interested to go for it," said Muench (Mobility Division Head Siemens Malaysia). He said the job for the 17km extension, which would include signalling systems, electrification and communications, among other things, could be worth in the region of between RM200m and RM300m. (BT)
RM44.3m charges stem from write-downs in collateral values, says K&N Kenanga
K&N Kenanga Holdings Bhd said additional impairment of RM44.3m, which will be reflected in its fourth-quarter results, stems from write-downs in collateral values relating to a loan and an investment in an associate company. In a statement on Friday, K&N Kenanga said although the impairment would reflect negatively on the group's profit and loss figures, its operating profit for the nine-month period ended Sept 30, 2010, excluding the impairment figure, remained positive at RM40.4m against RM26.9m in the same period in 2009. "The preimpairment operating profit for the group represents a growth of 50.2%," it said. (StarBiz)
Epic has no plans to go private
Eastern Industrial Pacific Corp Bhd (Epic) has dismissed suggestions that the company will be taken private, following the sale of a 21.26% stake by Ahmad Zaki Resources Bhd (AZRB) to Lembaga Tabung Amanah Warisan Negeri Terengganu. Its chief executive officer Ramli Shahul Hameed said Epic wants to remain as a listed company on Bursa Malaysia. "To Epic's knowledge, there is no such plan (to take the company private) ... We want to maintain the listing status," he told Business Times in an interview recently. Prior to the acquisition of AZRB's stake, Epic had also announced a 10% share buyback plan early in the year. Ramli explained that the share buyback was planned earlier so that the state government would be able to control the company, but it does not really matter now that Lembaga Tabung Warisan Negeri Terengganu has acquired AZRB's stake. "Yes, we have started buying the stakes through share buybacks but we have yet to complete the exercise. We have secured the approval to continue with the share buyback exercise. (BT)
Kimlun keen to bid for tunnel lining jobs in MRT project
KIimlun Corp Bhd said it is keen to bid for the tunnel lining segments job packages in the RM14bn Sungai Buloh- Kuala Lumpur-Kajang mass rapid transit (MRT) line project. "Yes, we would like to bid for (relevant) parts of the project. We have experience in making MRT tunnel segments," chief executive officer Sim Tian Liang told Business Times in an interview in Kuala Lumpur. Kimlun's unit SPC Industries Sdn Bhd is one of the very few active tunnel lining segments suppliers in the country, the others being MTD ACPI Engineering Bhd and Hong Leong Asia Pte Ltd. It has a construction and pre-cast products order book of RM800m as at September this year. As one of the largest manufacturer of pre-cast concrete products in Johor, Kimlun has been supplying tunnel lining segments for the Singapore MRT extension project. "Although we're based in Johor, it is not a problem for us to supply to the Greater KL MRT project. When the government starts to roll out the job packages in mid-2011, we can always lease land in Klang Valley and set up a casting yard there," Sim said. (BT)
National oil company Petroliam Nasional Bhd (Petronas) has shot down market talk that it will list wholly-owned exploration and production unit Petronas Carigali SB. “We have no plans to list Petronas Carigali or any other unit,’’ a Petronas spokesperson told StarBizWeek when contacted last Friday. Several business dailies last Saturday quoted MIDF Amanah Investment Bank Bhd’s research head as saying that Petronas Carigali could list on Bursa Malaysia next year in a move to draw foreign funds. The research head said that analysts had been told by Bursa officials of a possible initial public offering (IPO) for Petronas Carigali. However, Bursa clarified in a media statement yesterday evening that its listing department had not received any new listing application by Petronas. (StarBiz)
AirAsia boss says no plan to buy Virgin
AirAsia Bhd group chief executive officer Datuk Seri Tony Fernandez denies there are any plan to buy a stake in British airline Virgin Atlantic as reported by the Sunday Times newspaper. “There are no discussions taking place,’’ he told StarBiz from London yesterday. The Sunday Times said in an unsourced report yesterday that Fernandez, who runs Asia’s largest Budget carrier by fleet size, had renewed his interest in the UK airline after previously considering and deciding against a bid. Any deal could be worth up to GBP1bn, the newspaper said. (StarBiz)
Siemens eyes rail jobs
Siemens, a global expert in rail transport technology, is preparing to bid for several potentially lucrative railrelated tenders in Malaysia. Several such jobs are expected to be offered in the near future, including the supply of 40 locomotives for rail company Keretapi Tanah Melayu Bhd (KTMB), the Ampang light rail transit (LRT) extension and possibly the Kuala Lumpur-Singapore high speed train project. Siemens also plans to bid for the Ampang LRT extension project in which tender is set to be out on 11 Jan 11 next year. "What the industry expects, especially for the Ampang line, is that the specification will be open enough to establish competition. (We understand) for the Ampang line, the specification will be more extensive, so it means that companies like Siemens and other big supply companies would be interested to go for it," said Muench (Mobility Division Head Siemens Malaysia). He said the job for the 17km extension, which would include signalling systems, electrification and communications, among other things, could be worth in the region of between RM200m and RM300m. (BT)
RM44.3m charges stem from write-downs in collateral values, says K&N Kenanga
K&N Kenanga Holdings Bhd said additional impairment of RM44.3m, which will be reflected in its fourth-quarter results, stems from write-downs in collateral values relating to a loan and an investment in an associate company. In a statement on Friday, K&N Kenanga said although the impairment would reflect negatively on the group's profit and loss figures, its operating profit for the nine-month period ended Sept 30, 2010, excluding the impairment figure, remained positive at RM40.4m against RM26.9m in the same period in 2009. "The preimpairment operating profit for the group represents a growth of 50.2%," it said. (StarBiz)
Epic has no plans to go private
Eastern Industrial Pacific Corp Bhd (Epic) has dismissed suggestions that the company will be taken private, following the sale of a 21.26% stake by Ahmad Zaki Resources Bhd (AZRB) to Lembaga Tabung Amanah Warisan Negeri Terengganu. Its chief executive officer Ramli Shahul Hameed said Epic wants to remain as a listed company on Bursa Malaysia. "To Epic's knowledge, there is no such plan (to take the company private) ... We want to maintain the listing status," he told Business Times in an interview recently. Prior to the acquisition of AZRB's stake, Epic had also announced a 10% share buyback plan early in the year. Ramli explained that the share buyback was planned earlier so that the state government would be able to control the company, but it does not really matter now that Lembaga Tabung Warisan Negeri Terengganu has acquired AZRB's stake. "Yes, we have started buying the stakes through share buybacks but we have yet to complete the exercise. We have secured the approval to continue with the share buyback exercise. (BT)
Kimlun keen to bid for tunnel lining jobs in MRT project
KIimlun Corp Bhd said it is keen to bid for the tunnel lining segments job packages in the RM14bn Sungai Buloh- Kuala Lumpur-Kajang mass rapid transit (MRT) line project. "Yes, we would like to bid for (relevant) parts of the project. We have experience in making MRT tunnel segments," chief executive officer Sim Tian Liang told Business Times in an interview in Kuala Lumpur. Kimlun's unit SPC Industries Sdn Bhd is one of the very few active tunnel lining segments suppliers in the country, the others being MTD ACPI Engineering Bhd and Hong Leong Asia Pte Ltd. It has a construction and pre-cast products order book of RM800m as at September this year. As one of the largest manufacturer of pre-cast concrete products in Johor, Kimlun has been supplying tunnel lining segments for the Singapore MRT extension project. "Although we're based in Johor, it is not a problem for us to supply to the Greater KL MRT project. When the government starts to roll out the job packages in mid-2011, we can always lease land in Klang Valley and set up a casting yard there," Sim said. (BT)
20101227 0842 Crude Palm Oil Export Data.
SGS CPO export down 23.7% to 1,040,145 tonnes for the period of 1~25 Dec 2010.
ITS CPO export down 23.9% to 1,003,459 tonnes for the period of 1~25 Dec 2010.
ITS CPO export down 23.9% to 1,003,459 tonnes for the period of 1~25 Dec 2010.
20101227 0841 Global Market Related News.
Oil eases from two-year high after Chinese interest rate hike
SINGAPORE, Dec 27 (Reuters) - Oil eased from two-year highs as uncertainty over Chinese fuel demand growth following a Christmas Day interest rate hike overshadowed a cold snap in the U.S. Northeast.
"China's interest rate hike is having some impact on the oil markets... because of concerns over how the tightening of monetary policy will impact demand growth," said Serene Lim, an oil analyst at ANZ.
World economy can withstand $100 oil price-Kuwait
CAIRO, Dec 25 (Reuters) - The global economy can withstand an oil price of $100 a barrel, Kuwait's oil minister said on Saturday, as other exporters indicated OPEC may decide against increasing output through 2011 as the market was well supplied.
Analysts have said oil producing countries are likely to raise output after crude rallied more than 30 percent from a low in May because they fear prices could damage economic growth in fuel importing countries.
U.S. wheat falls from 4-1/2 month top on China rate hike
SINGAPORE, Dec 27 (Reuters) - U.S. wheat futures slid 0.7 percent, falling from a 4-1/2 month top, while soybeans and corn lost ground after China raised interest rates on Christmas Day, the latest in a series of measures to cool inflation.
"It will be bearish for agricultural prices... but we believe the impact will be short-lived and not hit the bullish trend," said Wang Ping, an analyst with Dongwu Futures in China.
Gold recovers some loss, bargain hunting supports
SINGAPORE, Dec 27 (Reuters) - Spot gold regained some ground and platinum group metals returned to positive territory, as bargain hunting lent support, after prices lost about one percent in early trade in response to China's interest rate increase on Saturday.
"Earlier speculators were selling on China's rate hike news, but a lot of buying has since emerged as speculators are buying on dip," said a Tokyo-based dealer.
China rate hike weighs on Aussie, commodities
HONG KONG, Dec 27 (Reuters) - The Australian dollar and commodity prices slid following an interest rate hike by China's central bank over the Christmas weekend, but volumes were light due to holidays in the final week of 2010.
"Expect Asian markets to be tempered into the last trading week of the year. The cautious tone and lower turnover this month compel the case for further consolidation," said Howie.
OIL: Oil falls below $91 after China interest rate hike
SINGAPORE, Dec 27 (Reuters) - Oil prices fell below $91 on Monday after China raised interest rates for the second time in just over two months to cool inflation which is running at its highest in over two years.
The global economy can withstand an oil price of $100 a barrel, Kuwait's oil minister said, as other exporters indicated OPEC may decide against increasing output through 2011 as the market was well supplied.
COMMODITY MARKETS: Oil ends above $91 pre-Christmas; sugar, soy rally
NEW YORK, Dec 23 (Reuters) - Oil ended at a two-year high above $91 per barrel while soybean and sugar prices surged on Thursday as investors tightened their focus on fundamentals in commodities in the last session before Christmas.
"You can almost feel the will for good economic recovery and growth worldwide as we head into 2011," RBC Capital Markets said in a research note out of London.
GLOBAL MARETS: Stocks, oil rise in festive cheer
PARIS, Dec 24 (Reuters) - World stocks held near the previous day's two-year high on Friday while oil hit fresh two-year peaks after strong U.S. data this week encouraged investors to maintain their risk positions into 2011.
"We've had a good run, helped by quantitative easing and better economic data," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. "We've broken out of ranges, and it can go higher in 2011."
The surprise timing of the People's Bank of China (PBOC) increase in benchmark lending and deposit interest rates is likely to weigh on commodity markets when trading starts on Monday.On Christmas Day, the PBOC raised rates by 25 basis points, the second rate rise in just over two months, part of a series of measures designed to combat inflation which hit a 28-
SINGAPORE, Dec 27 (Reuters) - Oil eased from two-year highs as uncertainty over Chinese fuel demand growth following a Christmas Day interest rate hike overshadowed a cold snap in the U.S. Northeast.
"China's interest rate hike is having some impact on the oil markets... because of concerns over how the tightening of monetary policy will impact demand growth," said Serene Lim, an oil analyst at ANZ.
World economy can withstand $100 oil price-Kuwait
CAIRO, Dec 25 (Reuters) - The global economy can withstand an oil price of $100 a barrel, Kuwait's oil minister said on Saturday, as other exporters indicated OPEC may decide against increasing output through 2011 as the market was well supplied.
Analysts have said oil producing countries are likely to raise output after crude rallied more than 30 percent from a low in May because they fear prices could damage economic growth in fuel importing countries.
U.S. wheat falls from 4-1/2 month top on China rate hike
SINGAPORE, Dec 27 (Reuters) - U.S. wheat futures slid 0.7 percent, falling from a 4-1/2 month top, while soybeans and corn lost ground after China raised interest rates on Christmas Day, the latest in a series of measures to cool inflation.
"It will be bearish for agricultural prices... but we believe the impact will be short-lived and not hit the bullish trend," said Wang Ping, an analyst with Dongwu Futures in China.
Gold recovers some loss, bargain hunting supports
SINGAPORE, Dec 27 (Reuters) - Spot gold regained some ground and platinum group metals returned to positive territory, as bargain hunting lent support, after prices lost about one percent in early trade in response to China's interest rate increase on Saturday.
"Earlier speculators were selling on China's rate hike news, but a lot of buying has since emerged as speculators are buying on dip," said a Tokyo-based dealer.
China rate hike weighs on Aussie, commodities
HONG KONG, Dec 27 (Reuters) - The Australian dollar and commodity prices slid following an interest rate hike by China's central bank over the Christmas weekend, but volumes were light due to holidays in the final week of 2010.
"Expect Asian markets to be tempered into the last trading week of the year. The cautious tone and lower turnover this month compel the case for further consolidation," said Howie.
OIL: Oil falls below $91 after China interest rate hike
SINGAPORE, Dec 27 (Reuters) - Oil prices fell below $91 on Monday after China raised interest rates for the second time in just over two months to cool inflation which is running at its highest in over two years.
The global economy can withstand an oil price of $100 a barrel, Kuwait's oil minister said, as other exporters indicated OPEC may decide against increasing output through 2011 as the market was well supplied.
COMMODITY MARKETS: Oil ends above $91 pre-Christmas; sugar, soy rally
NEW YORK, Dec 23 (Reuters) - Oil ended at a two-year high above $91 per barrel while soybean and sugar prices surged on Thursday as investors tightened their focus on fundamentals in commodities in the last session before Christmas.
"You can almost feel the will for good economic recovery and growth worldwide as we head into 2011," RBC Capital Markets said in a research note out of London.
GLOBAL MARETS: Stocks, oil rise in festive cheer
PARIS, Dec 24 (Reuters) - World stocks held near the previous day's two-year high on Friday while oil hit fresh two-year peaks after strong U.S. data this week encouraged investors to maintain their risk positions into 2011.
"We've had a good run, helped by quantitative easing and better economic data," said Bernard McAlinden, investment strategist at NCB Stockbrokers in Dublin. "We've broken out of ranges, and it can go higher in 2011."
The surprise timing of the People's Bank of China (PBOC) increase in benchmark lending and deposit interest rates is likely to weigh on commodity markets when trading starts on Monday.On Christmas Day, the PBOC raised rates by 25 basis points, the second rate rise in just over two months, part of a series of measures designed to combat inflation which hit a 28-
US data reinforce solid fourth-quarter growth hopes
WASHINGTON, Dec 23 (Reuters) - Demand for a range of long-lasting U.S. manufactured goods surged in November and consumer spending rose for a fifth straight month, cementing views of a solid economic growth pace in the fourth quarter.
The brightening outlook was also bolstered by other reports on Thursday showing an improving labor market and consumer sentiment, though housing continues to struggle.
China c.bank to gear up fight against inflation
BEIJING, Dec 24 (Reuters) - China's central bank kept up its rhetoric against inflation and excess liquidity on Friday by saying it will deploy a range of policy tools to head off inflationary pressures and asset bubbles.
Hu Xiaolian, a deputy governor at the People's Bank of China, said monetary policy in the world's second-largest economy needs to be prudent to tame inflation, which hit a 28-month high of 5.1 percent in November.
S.Korea faces inflation, asset bubble risks-min
SEOUL, Dec 24 (Reuters) - South Korea 's finance minister said the country needs to brace for inflationary pressures sparked by rising global liquidity and commodities prices in 2011, and an interest rate rise to address the risk of asset price bubbles.
Yoon Jeung-hyun told an economy-related ministerial meeting on Friday that higher international oil, metals and grain prices could pressure supply-side prices in line with growing liquidity and expansion in emerging economies.
PRECIOUS-Gold rises towards $1,385/oz as dollar retreats
LONDON, Dec 24 (Reuters) - Gold prices edged higher in Europe on Friday, supported by the euro's rebound from a three-week low versus the dollar, and as a further ratings downgrade stoked concerns over euro zone debt.
Fitch Ratings downgraded Portugal's long-term and local currency ratings by one notch to A-plus late on Thursday, with a negative outlook.
FOREX-Euro steady in thin trade, sentiment fragile
LONDON, Dec 24 (Reuters) - The euro was steady on Friday after rebounding from a record low against the Swiss franc and a three-week low versus the dollar, but any gains were curbed as investors remained wary about euro zone debt problems.
Trade was extremely thin, with few orders going through so close to the Christmas holidays, resulting in limited movement in any major currency pair.
Friday, December 24, 2010
20101224 1829 FCPO EOD Daily Chart Study.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : recovering, buyer continue stay put.
Support : 3650, 3620, 3550 level.
Resistance : 3700, 3720, 3750 level.
Comment :
Low participation FCPO recorded small gain with quiet volume traded ahead of next Monday export data release after soy oil and crude oil futures price traded and closed for the holiday higher.
Another small body up doji bar candle day (the 5th continuous) edge up little higher a longer lower shadow while the Bollinger band width continue to turn inwards suggesting a side way range bound upside biased market development.
When to buy : buy at support and weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20101224 1819 FKLI EOD Daily Chart Study.
Bollinger band reading : side way range bound upside biased.
MACD Histrogram : rising, buyer still holding on.
Support : 1515, 1500, 1485 level.
Resistance : 1530, 1550, 1580 level.
Comment :
Holiday mood FKLI traded quietly closed 1 tick lower with much lower volume changed hand as most regional markets closed recorded small loss.
Daily chart formed the 3rd doji bar candle with longer lower shadow after market tested below 1515 support level and recovered while the Bollinger band stop turning inwards suggesting a side way range bound upside biased market development.
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.
20101224 1121 Global Economics Related News.
Singapore: Inflation accelerated to 22-month high in November
Singapore’s inflation rate rose to the highest level since January 2009, an acceleration that may put pressure on the central bank to allow further currency appreciation to curb price increases. The consumer price index climbed 3.8% in November from a year earlier, after gaining 3.5% in October, Singapore’s Department of Statistics said in a statement. That matched the median estimate of 14 economists surveyed by Bloomberg News. Prices rose 0.3% from October, without adjusting for seasonal factors. (Bloomberg)
India: Food inflation accelerates as onion costs jump
India’s food inflation accelerated to a six-week high, adding pressure on authorities to curb a jump in onion prices that has forced the nation to halt exports of the staple this week and toppled governments in the past. An index measuring wholesale prices of agricultural products including lentils, rice and vegetables compiled by the commerce ministry rose 12.13% in the week ended 11 Dec from a year earlier, a trade ministry report showed in New Delhi. The index gained 9.46% the previous week. (Bloomberg)
South Korea: Consumer confidence declines on jobs, growth outlook
South Korean consumer confidence declined in December as people became less optimistic about the economy and job prospects. The sentiment index fell to 109 from 110 in November, the Bank of Korea said. A number exceeding 100 indicates optimists outnumber pessimists. The central bank left borrowing costs at 2.5% this month after an appreciation in the nation’s currency contributed to a moderation in economic expansion. It increased interest rates by a quarter percentage-point each in July and November from a record-low 2%. GDP growth will cool to 4.5% next year, from 6.1% in 2010, the monetary authority said. (Bloomberg)
US: New home sales, prices rise in Nov
New US single-family home sales rose in November but to a lower-than-expected rate, a government report showed, highlighting the weakness in the housing market even as the broader economic recovery gains momentum. The Commerce Department said sales increased 5.5% to a seasonally adjusted 290,000 unit annual rate after a downwardly revised 275,000 unit pace in October. (Bloomberg)
US: Consumer spending increase, jobless claims dip
Americans increased spending in November for a fifth straight month and companies stepped up orders for equipment, more evidence the US economy is gaining momentum heading into 2011. Household purchases rose 0.4% after a 0.7% increase in October that was almost twice as large as previously estimated, figures from the Commerce Department showed. Rising incomes and stock prices are giving consumers the wherewithal to boost the purchases that account for 70% of the world’s largest economy. A drop in claims for jobless benefits indicates employers are slowing the pace of firings, a step toward cutting unemployment from close to a 26-year high. (Bloomberg)
Singapore’s inflation rate rose to the highest level since January 2009, an acceleration that may put pressure on the central bank to allow further currency appreciation to curb price increases. The consumer price index climbed 3.8% in November from a year earlier, after gaining 3.5% in October, Singapore’s Department of Statistics said in a statement. That matched the median estimate of 14 economists surveyed by Bloomberg News. Prices rose 0.3% from October, without adjusting for seasonal factors. (Bloomberg)
India: Food inflation accelerates as onion costs jump
India’s food inflation accelerated to a six-week high, adding pressure on authorities to curb a jump in onion prices that has forced the nation to halt exports of the staple this week and toppled governments in the past. An index measuring wholesale prices of agricultural products including lentils, rice and vegetables compiled by the commerce ministry rose 12.13% in the week ended 11 Dec from a year earlier, a trade ministry report showed in New Delhi. The index gained 9.46% the previous week. (Bloomberg)
South Korea: Consumer confidence declines on jobs, growth outlook
South Korean consumer confidence declined in December as people became less optimistic about the economy and job prospects. The sentiment index fell to 109 from 110 in November, the Bank of Korea said. A number exceeding 100 indicates optimists outnumber pessimists. The central bank left borrowing costs at 2.5% this month after an appreciation in the nation’s currency contributed to a moderation in economic expansion. It increased interest rates by a quarter percentage-point each in July and November from a record-low 2%. GDP growth will cool to 4.5% next year, from 6.1% in 2010, the monetary authority said. (Bloomberg)
US: New home sales, prices rise in Nov
New US single-family home sales rose in November but to a lower-than-expected rate, a government report showed, highlighting the weakness in the housing market even as the broader economic recovery gains momentum. The Commerce Department said sales increased 5.5% to a seasonally adjusted 290,000 unit annual rate after a downwardly revised 275,000 unit pace in October. (Bloomberg)
US: Consumer spending increase, jobless claims dip
Americans increased spending in November for a fifth straight month and companies stepped up orders for equipment, more evidence the US economy is gaining momentum heading into 2011. Household purchases rose 0.4% after a 0.7% increase in October that was almost twice as large as previously estimated, figures from the Commerce Department showed. Rising incomes and stock prices are giving consumers the wherewithal to boost the purchases that account for 70% of the world’s largest economy. A drop in claims for jobless benefits indicates employers are slowing the pace of firings, a step toward cutting unemployment from close to a 26-year high. (Bloomberg)
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