Malaysia: Ringgit at 2-year high, biggest gainer after won
The ringgit rose to a new two-year high yesterday against the US dollar and was the second biggest daily gainer behind the won, as persistent worries about the economic health in the West drove investors to Asian markets in search of higher returns. Analysts said the ringgit’s rise was underpinned by relatively sound economic fundamentals at home and around the region, as well as a bullish technical view on the currency. (Starbiz)
Indonesia: May keep benchmark rate at 6.5%
Indonesia may keep its main interest rate at a record low for a 12th straight month, putting off joining its neighbors in raising borrowing costs even as growth and inflation accelerate in Southeast Asia’s biggest economy. Bank Indonesia will leave its reference rate unchanged at 6.5%. (Bloomberg)
China: Manufacturing faces ‘slowdown, not a meltdown’
China’s July manufacturing data were the weakest in more than a year as the government clamped down on property speculation and investment in polluting and energy- intensive factories. A purchasing managers’ index released slid to 49.4 from 50.4 in June. (Bloomberg)
EU: Greece to pass first deficit test as budget challenges mount
Greece’s austerity drive may pass its first test this week as a European Union-led mission prepares to dole out more rescue funds for a government trying to cut the euro-region’s second-biggest budget gap and weather a recession. In approving the second tranche of a three-year, EUR110bn (USD145bn) bailout, the EU and International Monetary Fund say that more work is needed to lock in the gains. (Bloomberg)
EU: Manufacturing accelerates more than estimated
Growth in Europe’s manufacturing industry accelerated more than previously estimated in July, indicating an export-led recovery maintained its momentum. A gauge of manufacturing in the 16-nation euro region increased to 56.7 from 55.6 in the previous month. (Bloomberg)
US: Consumer spending to accelerate
Federal Reserve Chairman Ben S. Bernanke said rising wages will probably spur household spending in the next few quarters, even as weak job gains drag down consumer confidence. "While the US has “a considerable way to go” for a full recovery, rising demand from households and businesses should help sustain growth,” Bernanke said. (Bloomberg)
US: Manufacturing slowed as orders cooled
The manufacturing rebound that propelled the US out of the recession cooled in July, reflecting a slowing in orders and production. The Institute for Supply Management’s manufacturing gauge dropped to 55.5 last month, from 56.2 in June, felling to a one-year low. (Bloomberg)
Tuesday, August 3, 2010
20100803 1233 Malaysia Corporate News.
US stocks advance as corporate earnings surpass estimates
US stocks rallied, sending the Standard & Poor’s 500 to the highest close in 10 weeks, after better-thanestimated earnings at companies from Humana Inc. to Allergan Inc. and manufacturing data that topped forecasts. Oil climbed above USD81 for the first time since May, giving a boost to energy companies. The S&P 500 gained 2.2% to 1,125.86 as of 4 pm in New York. The Dow climbed 208.44 points, or 2%, to 10,674.38 as all 30 of its components advanced. (Bloomberg)
Johns Hopkins tipped to enter Malaysia
The world-renowned teaching and research institution Johns Hopkins may make its way to Malaysia in a big way. Sources said that Johns Hopkins might be involved in the healthcare field in partnership with a local listed company. Information of its exact field of involvement remains sketchy, but sources said that a piece of land in Selangor had been identified for the development of a medical city. Business Times understands that the investment in this initiative could be to the tune of RM1.8bn. The Government on its part may provide a tenth of the funds required for this project. (BT)
P&O awaits Bank Negara approval
Pacific & Orient Insurance is seeking Bank Negara approval to begin discussions with Prudential Holdings Ltd for a stake sale to the latter. (StarBiz)
AMMB investors to get choice in dividend payout
BANKING group AMMB Holdings plans to give its shareholders a choice of receiving dividends in cash or new shares, in a move to improve its capital position. Under the dividend reinvestment plan, those keen to be paid in shares must notify the group in writing. This means that shareholders who don't do so will continue to get paid in cash. (BT)
Favelle secures RM106m orders
Favelle Favco through its subsidiaries has secured several orders with a combined value of about RM106.4m for the supply of tower cranes and offshore cranes. The orders were for deliveries from end 2010 till end-2011. (StarBiz)
Samsung Heavy to set up shipyard in Teluk Ramunia
Samsung Heavy Industries, a core subsidiary of South Korea’s Samsung Group, is to invest in the oil and gas (O&G) hub in south-east of Johor. Johor Mentri Besar Datuk Abdul Ghani Othman said the company had last year visited Teluk Ramunia and identified an area there for its shipyard. Samsung Heavy is the second-largest shipbuilder in the world with its main activities in shipbuilding, offshore floaters, digital devices for ships, and construction and engineering concerns. (StarBiz)
SIG IPO oversubscribed by 24.1 times
SIG Gases, a manufacturer, refiller and distributor of industrial gases in Malaysia, has received overwhelming response for its upcoming listing on the main market of Bursa Malaysia with its public tranche oversubscribed by 24.1 times. SIG is the only pure-play listed industrial gases provider in Malaysia. (Financial Daily)
Dijaya, IWSB in Danga Bay venture
Property developers Dijaya Corp and Iskandar Water Front SB (IWSB) will jointly develop (60:40 joint venture) two parcels of prime waterfront land at Danga Bay, Johor Baru, into a mixed development project that carries a gross value of RM3.8bn over the next 12 years. They sealed the deal to purchase the land for the project from Danga Bay Sdn Bhd for RM308m, or RM190 per sq ft. Johor Menteri Besar Datuk Abdul Ghani Othman witnessed the signing of the sale and purchase agreements for the two parcels of land totalling 14.8ha in Johor Baru. It is one of the biggest private land deals since the inception of Iskandar Malaysia in 2006, where it is located. (Financial Daily)
YTL, Intel team up on 4G network
YTL Communications SB (YTL Comms) has partnered Intel Malaysia to deliver superior fourth-generation (4G) network by the year-end. YTL Comms chief executive officer Wing Lee said the high-speed Internet network, which will be commercially launched in the fourth quarter, will enable the company to introduce its range of 4G devices to the market. "Offering WiMAX (Worldwide Interoperability for Microwave Access)-ready devices is an integral part of our strategy," he said in a statement that was released yesterday in Kuala Lumpur. (Financial Daily)
US stocks rallied, sending the Standard & Poor’s 500 to the highest close in 10 weeks, after better-thanestimated earnings at companies from Humana Inc. to Allergan Inc. and manufacturing data that topped forecasts. Oil climbed above USD81 for the first time since May, giving a boost to energy companies. The S&P 500 gained 2.2% to 1,125.86 as of 4 pm in New York. The Dow climbed 208.44 points, or 2%, to 10,674.38 as all 30 of its components advanced. (Bloomberg)
Johns Hopkins tipped to enter Malaysia
The world-renowned teaching and research institution Johns Hopkins may make its way to Malaysia in a big way. Sources said that Johns Hopkins might be involved in the healthcare field in partnership with a local listed company. Information of its exact field of involvement remains sketchy, but sources said that a piece of land in Selangor had been identified for the development of a medical city. Business Times understands that the investment in this initiative could be to the tune of RM1.8bn. The Government on its part may provide a tenth of the funds required for this project. (BT)
P&O awaits Bank Negara approval
Pacific & Orient Insurance is seeking Bank Negara approval to begin discussions with Prudential Holdings Ltd for a stake sale to the latter. (StarBiz)
AMMB investors to get choice in dividend payout
BANKING group AMMB Holdings plans to give its shareholders a choice of receiving dividends in cash or new shares, in a move to improve its capital position. Under the dividend reinvestment plan, those keen to be paid in shares must notify the group in writing. This means that shareholders who don't do so will continue to get paid in cash. (BT)
Favelle secures RM106m orders
Favelle Favco through its subsidiaries has secured several orders with a combined value of about RM106.4m for the supply of tower cranes and offshore cranes. The orders were for deliveries from end 2010 till end-2011. (StarBiz)
Samsung Heavy to set up shipyard in Teluk Ramunia
Samsung Heavy Industries, a core subsidiary of South Korea’s Samsung Group, is to invest in the oil and gas (O&G) hub in south-east of Johor. Johor Mentri Besar Datuk Abdul Ghani Othman said the company had last year visited Teluk Ramunia and identified an area there for its shipyard. Samsung Heavy is the second-largest shipbuilder in the world with its main activities in shipbuilding, offshore floaters, digital devices for ships, and construction and engineering concerns. (StarBiz)
SIG IPO oversubscribed by 24.1 times
SIG Gases, a manufacturer, refiller and distributor of industrial gases in Malaysia, has received overwhelming response for its upcoming listing on the main market of Bursa Malaysia with its public tranche oversubscribed by 24.1 times. SIG is the only pure-play listed industrial gases provider in Malaysia. (Financial Daily)
Dijaya, IWSB in Danga Bay venture
Property developers Dijaya Corp and Iskandar Water Front SB (IWSB) will jointly develop (60:40 joint venture) two parcels of prime waterfront land at Danga Bay, Johor Baru, into a mixed development project that carries a gross value of RM3.8bn over the next 12 years. They sealed the deal to purchase the land for the project from Danga Bay Sdn Bhd for RM308m, or RM190 per sq ft. Johor Menteri Besar Datuk Abdul Ghani Othman witnessed the signing of the sale and purchase agreements for the two parcels of land totalling 14.8ha in Johor Baru. It is one of the biggest private land deals since the inception of Iskandar Malaysia in 2006, where it is located. (Financial Daily)
YTL, Intel team up on 4G network
YTL Communications SB (YTL Comms) has partnered Intel Malaysia to deliver superior fourth-generation (4G) network by the year-end. YTL Comms chief executive officer Wing Lee said the high-speed Internet network, which will be commercially launched in the fourth quarter, will enable the company to introduce its range of 4G devices to the market. "Offering WiMAX (Worldwide Interoperability for Microwave Access)-ready devices is an integral part of our strategy," he said in a statement that was released yesterday in Kuala Lumpur. (Financial Daily)
20100803 1155 Global Market News.
Asia stocks up on bank earnings, U.S. dataHONG KONG, Aug 3 (Reuters) - Asian stocks rose to their highest levels in nearly three months and turned positive for the year, boosted by strong European bank results and a sign the U.S. economy was stronger than expected.
"A combination of solid earnings from HSBC and BNP Paribas and strong U.S. manufacturing data has significantly eased economic worries and boosted appetite for stocks," said Lee Sun-yeb, a market analyst at Shinhan Investment Corporation.
GLOBAL ECONOMY-China slows to cruising speed, Europe perks up
BEIJING, Aug 2 (Reuters) - China's manufacturing sector cooled further in July, even shrinking by one measure, but markets took the news as a sign of a desired slowdown rather than a harbinger of a slump that could derail global recovery.
Manufacturing surveys from other big emerging economies India and Russia, also served to bolster investor sentiment, with Asia's third-largest economy marking its 16th month of expansion and Russia's activity improving for the seventh month in a row.
Imports slow US Q2 growth, business spending surges
WASHINGTON, July 30 (Reuters) - U.S. economic growth slowed in the second quarter as companies invested heavily in equipment from abroad and the pace of consumer spending eased, raising concerns about the recovery in the rest of 2010.
The fastest rate of business spending in four years would normally be associated with increased confidence in the economy, but analysts said cash-flush companies were merely making up for ground lost during the recession.
Asian stocks up as markets shrug off China data
HONG KONG, Aug 2 (Reuters) - Asian stocks rose on strong corporate earnings and shrugged off news that Chinese manufacturing shrank in July amid investor hopes that the world's fastest growing major economy will expand strongly.
"There is no need to panic because this is just a slowdown, not a meltdown," Qu Hongbin, chief economist for China at HSBC, said in a statement.
GLOBAL MARKETS: Stocks at multi-month highs; euro surges
NEW YORK, Aug 2 (Reuters) - Global stocks surged to a 2-1/2 month high and the euro hit a three-month high on Monday as growth in the U.S. manufacturing sector topped expectations and European bank earnings boosted optimism.
"What we've seen over the last few weeks has been decent earnings, but economic data has been on the weak side. But today we had good earnings out of Europe, and we actually had strong economic data, and that is piling on to a decent start to the month," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, Ohio.
"A combination of solid earnings from HSBC and BNP Paribas and strong U.S. manufacturing data has significantly eased economic worries and boosted appetite for stocks," said Lee Sun-yeb, a market analyst at Shinhan Investment Corporation.
GLOBAL ECONOMY-China slows to cruising speed, Europe perks up
BEIJING, Aug 2 (Reuters) - China's manufacturing sector cooled further in July, even shrinking by one measure, but markets took the news as a sign of a desired slowdown rather than a harbinger of a slump that could derail global recovery.
Manufacturing surveys from other big emerging economies India and Russia, also served to bolster investor sentiment, with Asia's third-largest economy marking its 16th month of expansion and Russia's activity improving for the seventh month in a row.
Imports slow US Q2 growth, business spending surges
WASHINGTON, July 30 (Reuters) - U.S. economic growth slowed in the second quarter as companies invested heavily in equipment from abroad and the pace of consumer spending eased, raising concerns about the recovery in the rest of 2010.
The fastest rate of business spending in four years would normally be associated with increased confidence in the economy, but analysts said cash-flush companies were merely making up for ground lost during the recession.
Asian stocks up as markets shrug off China data
HONG KONG, Aug 2 (Reuters) - Asian stocks rose on strong corporate earnings and shrugged off news that Chinese manufacturing shrank in July amid investor hopes that the world's fastest growing major economy will expand strongly.
"There is no need to panic because this is just a slowdown, not a meltdown," Qu Hongbin, chief economist for China at HSBC, said in a statement.
GLOBAL MARKETS: Stocks at multi-month highs; euro surges
NEW YORK, Aug 2 (Reuters) - Global stocks surged to a 2-1/2 month high and the euro hit a three-month high on Monday as growth in the U.S. manufacturing sector topped expectations and European bank earnings boosted optimism.
"What we've seen over the last few weeks has been decent earnings, but economic data has been on the weak side. But today we had good earnings out of Europe, and we actually had strong economic data, and that is piling on to a decent start to the month," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati, Ohio.
20100803 1154 Soy Oil & Palm Oil Related Price.
Soyoil futures ended higher, climbing to a 3 1/2 month high before profit taking emerged to trim advances. Soyoil was the upside leader of the products, buoyed by spillover support from soybeans and crude oil futures. Crude oil influences soyoil due to its use in making renewable fuels. December soyoil settled 0.55 cents or 1.5% higher at 40.55 cents per pound. (Source: CME)
Malaysia's July Palm Oil Exports To Pakistan Doubles On Month (Source: CME)
Pakistan's palm oil purchases from Malaysia in July doubled on month to meet demand for Ramadan, the Islamic holy month of fasting, trading executives said Monday. Pakistan's ongoing palm oil purchases also supported CPO prices, which rose 2.1% to a fresh three-month high of MYR2,570 a metric ton from Friday's close.
"CPO prices may rise to MYR2,600-MYR2,610/ton in the next few trading sessions as the rise in exports may reduce palm oil inventory levels, which is positive for prices," said a senior executive at Kuala Lumpur-based brokerage. Cargo surveyor SGS (Malaysia) Bhd. Monday said Malaysia's palm shipments to Pakistan are estimated at 231,316 tons, versus 116,670 tons the previous month.
The sharp rise in Pakistan's palm oil purchases is close to estimates by a Pakistan-based importer two weeks ago.
Palm oil hits 3-mth high on exports, soybean
JAKARTA, Aug 2 (Reuters) - Malaysian crude palm oil jumped by midday to hit a 3-month high on gains in soybean markets and good export figures, but a firmer ringgit may limit gains.
"We have the bad weather and good exports. At the same time, soybean markets are also higher, tracking gains in the wheat market," said a trader with a foreign commodities brokerage firm, adding the market was likely to test 2,600 ringgit this week.
Malaysia's July Palm Oil Exports To Pakistan Doubles On Month (Source: CME)
Pakistan's palm oil purchases from Malaysia in July doubled on month to meet demand for Ramadan, the Islamic holy month of fasting, trading executives said Monday. Pakistan's ongoing palm oil purchases also supported CPO prices, which rose 2.1% to a fresh three-month high of MYR2,570 a metric ton from Friday's close.
"CPO prices may rise to MYR2,600-MYR2,610/ton in the next few trading sessions as the rise in exports may reduce palm oil inventory levels, which is positive for prices," said a senior executive at Kuala Lumpur-based brokerage. Cargo surveyor SGS (Malaysia) Bhd. Monday said Malaysia's palm shipments to Pakistan are estimated at 231,316 tons, versus 116,670 tons the previous month.
The sharp rise in Pakistan's palm oil purchases is close to estimates by a Pakistan-based importer two weeks ago.
Palm oil hits 3-mth high on exports, soybean
JAKARTA, Aug 2 (Reuters) - Malaysian crude palm oil jumped by midday to hit a 3-month high on gains in soybean markets and good export figures, but a firmer ringgit may limit gains.
"We have the bad weather and good exports. At the same time, soybean markets are also higher, tracking gains in the wheat market," said a trader with a foreign commodities brokerage firm, adding the market was likely to test 2,600 ringgit this week.
Monday, August 2, 2010
20100802 1847 FCPO EOD Daily Chart Study.
Bollinger band reading : upside biased.
MACD Histrogram : resume upward, buyer expand operation.
Support : 2570, 2550, 2520 level.
Resistant : 2600, 2620, 2650 level.
Comment :
FCPO recorded gain again after crude oil and soy oil futures price continue to trade higher after last friday rally with better volume transacted. Daily chart shows that market opened higher after export data release shows improvement and continue testing higher resistant level and closed right at it that turned into support level. Reading suggesting a upside bias potential market testing resistant near upper Bollinger band for the near term.
When to buy : buy at support/weakness/breakout with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
20100802 1828 FKLI EOD Daily Chart Study.
Bollinger band reading : side way range bound, upside biased.
MACD Histrogram : reversed upward, buyer defending.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
FKLI recorded gained for the first day of the month with improve volume traded but still consider low participation in unison with major regional market that ended mostly higher. Daily chart wise, market opened and surge higher to closed near the high of the year within a tight 5.5 points range market. Outlook still suggesting a side way range bound upside biased market reading.
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.
20100802 1322 FKLI Mid Day Hourly Chart Study.
FKLI closed : 1365, changed : +11 points, volume : low.
Bollinger band reading : upside biased.
MACD Histrogram : turned downward, buyer taking profit.
Support : 1360, 1350, 1345 level.
Resistant : 1375, 1385, 1395 level.
Comment :
Hit year high FKLI traded in tight 5.5 point range and lesser volume participation in tandem with major positive development Asia markets. Hourly chart shows market opened higher and continue to reach higher ground following Bollinger band expansion pace with positive pullback effect take place soon but nevertheless the reading still suggesting a upside biased market development.
20100802 1309 FCPO Hourly Chart Study.
Bollinger band reading : upside biased.
MACD Histrogram : rising, buyer dominated market.
Support : 2550, 2520, 2500 level.
Resistant : 2570, 2600, 2620 level.
Comment :
Over the weekend strong rally on soy oil and crude oil futures price due to a continue weaker US Dollar plus improved higher export data leaded FCPO to opened and traded higher in moderate volume transaction within a 17 points tight range market. Hourly chart wise, price hovering around the upper Bollinger band level with possible triggering a pullback correction. Overall the outlook still having a upside biased market reading for the near term.
ITS export up 4.41%
SGS export up 4.7 %
20100802 1246 Local & Global Economics News.
China: Manufacturing grows at slowest pace in 17 months
China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories. The Purchasing Managers’ Index fell to 51.2 from 52.1 in June. (Bloomberg)
South Korea: Consumer prices and exports rose
South Korea’s consumer prices rose 2.6% in July from a year earlier. Exports increased for a ninth month in July as weakness in won and the global economic recovery boosted demand for the nation’s cars, electronic goods and semiconductors. Overseas shipments increased 29.6% from a year earlier. (Bloomberg)
Australia: RBA may extend rate pause, averting damage to Gillard
Australia’s central bank may keep its benchmark interest rate unchanged for a third month after inflation slowed, averting an increase in mortgage costs that risked damaging Prime Minister Julia Gillard’s election campaign.. (Bloomberg)
EU: Banks on Europe’s edge face USD122bn bill
Banks in Europe’s most indebted nations need to refinance USD122bn of bonds this year, likely paying high interest costs even after receiving a clean bill of health from regulators. Italian banks must refinance a total of USD69bn of bonds this year and USD157bn in 2011, while Spanish lenders have USD28bn and USD73bn of debt that needs to be paid. (Bloomberg)
EU: Inflation hits 20-month high, jobless at 10%
European inflation accelerated to the fastest pace in more than 20 months on rising energy costs and unemployment held at the highest in almost 12 years. Euro-area consumer prices rose 1.7% from a year earlier in July after increasing 1.4% in June. Jobless rate remained at 10% for a fourth month in June. (Bloomberg)
US: Lack of consumer spending points to economic slowdown
The world’s largest economy will probably keep cooling in the third quarter as a lack of jobs prompts American consumers to rein in spending. The economy in the US grew at a slower-than-forecast 2.4% annual rate from April through June after expanding at a 3.7% pace in the previous 3 months. Household purchases climbed at a 1.6% rate following a 1.9% gain that was smaller than previously estimated. (Bloomberg)
US: Financial system may need USD76bn in capital, says IMF
The US financial system remains fragile and banks subjected to additional economic stress might need as much as USD76bn in capital, according to results of IMF stress tests. The findings suggested that while the nation’s banking system is stable, it remains vulnerable. Home prices, commercial real estate loans and economic growth have the potential to cause shocks that could expose banks to more losses. (Bloomberg)
China’s manufacturing grew at the slowest pace in 17 months in July as the government clamped down on property speculation and investment in energy-intensive and polluting factories. The Purchasing Managers’ Index fell to 51.2 from 52.1 in June. (Bloomberg)
South Korea: Consumer prices and exports rose
South Korea’s consumer prices rose 2.6% in July from a year earlier. Exports increased for a ninth month in July as weakness in won and the global economic recovery boosted demand for the nation’s cars, electronic goods and semiconductors. Overseas shipments increased 29.6% from a year earlier. (Bloomberg)
Australia: RBA may extend rate pause, averting damage to Gillard
Australia’s central bank may keep its benchmark interest rate unchanged for a third month after inflation slowed, averting an increase in mortgage costs that risked damaging Prime Minister Julia Gillard’s election campaign.. (Bloomberg)
EU: Banks on Europe’s edge face USD122bn bill
Banks in Europe’s most indebted nations need to refinance USD122bn of bonds this year, likely paying high interest costs even after receiving a clean bill of health from regulators. Italian banks must refinance a total of USD69bn of bonds this year and USD157bn in 2011, while Spanish lenders have USD28bn and USD73bn of debt that needs to be paid. (Bloomberg)
EU: Inflation hits 20-month high, jobless at 10%
European inflation accelerated to the fastest pace in more than 20 months on rising energy costs and unemployment held at the highest in almost 12 years. Euro-area consumer prices rose 1.7% from a year earlier in July after increasing 1.4% in June. Jobless rate remained at 10% for a fourth month in June. (Bloomberg)
US: Lack of consumer spending points to economic slowdown
The world’s largest economy will probably keep cooling in the third quarter as a lack of jobs prompts American consumers to rein in spending. The economy in the US grew at a slower-than-forecast 2.4% annual rate from April through June after expanding at a 3.7% pace in the previous 3 months. Household purchases climbed at a 1.6% rate following a 1.9% gain that was smaller than previously estimated. (Bloomberg)
US: Financial system may need USD76bn in capital, says IMF
The US financial system remains fragile and banks subjected to additional economic stress might need as much as USD76bn in capital, according to results of IMF stress tests. The findings suggested that while the nation’s banking system is stable, it remains vulnerable. Home prices, commercial real estate loans and economic growth have the potential to cause shocks that could expose banks to more losses. (Bloomberg)
20100802 1244 Malaysia Corporate News.
RM21.80 a share offer for Tanjong buyout
After days of speculation of an impending buyout offer for Tanjong plc, the intention to take the power and gaming outfit private was confirmed on Friday evening at a press conference. A special purpose vehicle (SPV) established by Usaha Tegas Sdn Bhd and its concert parties, Tanjong Capital SB, have served a notice of conditional takeover offer to acquire all the ordinary shares of Tanjong at a cash offer price of RM21.80 apiece, hence valuing the company at RM8.8bn and minorities’ shares at RM4.7bn. The offer price is also at a premium to analysts’ average target price for Tanjong of RM19.08, according to Bloomberg data. (Malaysian Reserve)
Prudential said to be eyeing P&O UK-based insurer
Prudential plc is looking at acquiring the insurance businesses of Pacific & Orient Bhd (P&O), sources say. It is learnt that Prudential has written to Bank Negara Malaysia to seek the central bank’s approval to begin talks with P&O on the potential sale of the group’s insurance business. The price of the transaction is not known. An industry observer says Prudential’s interest in P&O is not surprising, after an unsuccessful buyout attempt in American International Assurance (AIA), the Asian unit of American International Group (AIG). AIG’s assets include its Malaysian insurance business. (The Edge Weekly)
Are E&O shareholders looking at privatisation?
Eastern & Oriental (E&O) major shareholders are believed to be considering a privatization of the property developer, sources say. The news sent the stock to a fresh high in heavy trade last week. E&O managing director Datuk Terry tham Ka hon is the single largest sharehodler in E&O with a combined direct stake and indirect stake of some 16% of the company. The company is also active in share buy-backs, which signifies that it is under-valued. (The Edge Weekly)
Scomi Engineering’s Brazil monorail tender re-issued
Scomi Engineering Bhd seems to have gotten another shot in its bid for the 23.9km RM3bn Tiradentes monorail project in Sao Paulo, Brazil. Sources said the Brazilian authorities had requested for a re-issue of the tender, with modifications such as a ‘less tight’ delivery dateline and better payment structure. It is understood the reissue of the tender started early last week, with all four participating companies – a consortium of Scomi Engineering Bhd and CR Almeida SA Engenharia de Obras, Hitachi Ltd of Japan, Bombardier Inc of Canada and Switzerland’s Intamin AG – still expressing interest. (Financial Daily)
Hirotako’s stake in PA Resources piques interest
The emergence of Hirotako Holdings Bhd as a major shareholder in PA Resources Bhd was not something that the market had expected. It is a deal, which on the face of it, would be hard to rationalise. But it did happen. Hirotako, an automotive components manufacturer became a major shareholder with 15.3% equity interest in aluminium products maker PA Resources, after which the share price of Hirotako soared to its highest in about nine years. Hirotako acquired the shares on the open market and also by subscribing for a rights issue undertaken by PA Resources. The entry of Hirotako as a major stakeholder in PA Resources raises crucial questions. Among them is what kind of synergistic benefits both entities can derive from the relationship. Another is whether Hirotako will further raise its stake in PA Resources. (The Edge Weekly)
MPHB plan for investors to own Magnum shares
Multi-Purpose Holdings Bhd (MPHB) may offer its shareholders the opportunity to participate directly in its gaming outfit, Magnum Corp Sdn Bhd, by way of restricted offer for sale (ROS), its chief said. Managing director Datuk Lau Kim Khoon @ Surin Upatkoon said the plan will allow MPHB's 5,000-odd shareholders to own Magnum shares. MPHB is looking to relist Magnum on the Main Market of Bursa Malaysia. Lau said the timing will depend on the exit strategy by CVC Capital Partners, a global private equity firm which holds 47% of Magnum. He said CVC had indicated that it wanted to make an exit, but no time-frame was given. MPHB holds a 51% stake in Magnum, which operates 485 gaming outlets nationwide. (StarBiz)
MAS, AirAsia X get rights to fly to Haneda
Two Malaysian carriers have each been granted rights to fly to Haneda in Japan three times a week by the local government. Although the Malaysian Government secured traffic rights for seven flights a week to the alternative airport in Tokyo, it allowed Malaysia Airlines (MAS) and low-cost long-haul carrier AirAsia X three flights each and retained one. AirAsia X's flights to Haneda Airport are "still pending application", its chief executive officer Azran Osman-Rani said as to when it would begin operation. MAS will introduce three flights a week between Kota Kinabalu and Haneda from 15 Nov, its managing director and chief executive officer Tengku Datuk Azmil Zahruddin said. "Haneda is basically like our Subang airport, while Narita Airport is a bigger airport. Haneda is a lot nearer to Tokyo and was previously open to domestic flights only. But due to the congestion at Narita, the Japanese government is opening it up to international flights," he added. (StarBiz)
After days of speculation of an impending buyout offer for Tanjong plc, the intention to take the power and gaming outfit private was confirmed on Friday evening at a press conference. A special purpose vehicle (SPV) established by Usaha Tegas Sdn Bhd and its concert parties, Tanjong Capital SB, have served a notice of conditional takeover offer to acquire all the ordinary shares of Tanjong at a cash offer price of RM21.80 apiece, hence valuing the company at RM8.8bn and minorities’ shares at RM4.7bn. The offer price is also at a premium to analysts’ average target price for Tanjong of RM19.08, according to Bloomberg data. (Malaysian Reserve)
Prudential said to be eyeing P&O UK-based insurer
Prudential plc is looking at acquiring the insurance businesses of Pacific & Orient Bhd (P&O), sources say. It is learnt that Prudential has written to Bank Negara Malaysia to seek the central bank’s approval to begin talks with P&O on the potential sale of the group’s insurance business. The price of the transaction is not known. An industry observer says Prudential’s interest in P&O is not surprising, after an unsuccessful buyout attempt in American International Assurance (AIA), the Asian unit of American International Group (AIG). AIG’s assets include its Malaysian insurance business. (The Edge Weekly)
Are E&O shareholders looking at privatisation?
Eastern & Oriental (E&O) major shareholders are believed to be considering a privatization of the property developer, sources say. The news sent the stock to a fresh high in heavy trade last week. E&O managing director Datuk Terry tham Ka hon is the single largest sharehodler in E&O with a combined direct stake and indirect stake of some 16% of the company. The company is also active in share buy-backs, which signifies that it is under-valued. (The Edge Weekly)
Scomi Engineering’s Brazil monorail tender re-issued
Scomi Engineering Bhd seems to have gotten another shot in its bid for the 23.9km RM3bn Tiradentes monorail project in Sao Paulo, Brazil. Sources said the Brazilian authorities had requested for a re-issue of the tender, with modifications such as a ‘less tight’ delivery dateline and better payment structure. It is understood the reissue of the tender started early last week, with all four participating companies – a consortium of Scomi Engineering Bhd and CR Almeida SA Engenharia de Obras, Hitachi Ltd of Japan, Bombardier Inc of Canada and Switzerland’s Intamin AG – still expressing interest. (Financial Daily)
Hirotako’s stake in PA Resources piques interest
The emergence of Hirotako Holdings Bhd as a major shareholder in PA Resources Bhd was not something that the market had expected. It is a deal, which on the face of it, would be hard to rationalise. But it did happen. Hirotako, an automotive components manufacturer became a major shareholder with 15.3% equity interest in aluminium products maker PA Resources, after which the share price of Hirotako soared to its highest in about nine years. Hirotako acquired the shares on the open market and also by subscribing for a rights issue undertaken by PA Resources. The entry of Hirotako as a major stakeholder in PA Resources raises crucial questions. Among them is what kind of synergistic benefits both entities can derive from the relationship. Another is whether Hirotako will further raise its stake in PA Resources. (The Edge Weekly)
MPHB plan for investors to own Magnum shares
Multi-Purpose Holdings Bhd (MPHB) may offer its shareholders the opportunity to participate directly in its gaming outfit, Magnum Corp Sdn Bhd, by way of restricted offer for sale (ROS), its chief said. Managing director Datuk Lau Kim Khoon @ Surin Upatkoon said the plan will allow MPHB's 5,000-odd shareholders to own Magnum shares. MPHB is looking to relist Magnum on the Main Market of Bursa Malaysia. Lau said the timing will depend on the exit strategy by CVC Capital Partners, a global private equity firm which holds 47% of Magnum. He said CVC had indicated that it wanted to make an exit, but no time-frame was given. MPHB holds a 51% stake in Magnum, which operates 485 gaming outlets nationwide. (StarBiz)
MAS, AirAsia X get rights to fly to Haneda
Two Malaysian carriers have each been granted rights to fly to Haneda in Japan three times a week by the local government. Although the Malaysian Government secured traffic rights for seven flights a week to the alternative airport in Tokyo, it allowed Malaysia Airlines (MAS) and low-cost long-haul carrier AirAsia X three flights each and retained one. AirAsia X's flights to Haneda Airport are "still pending application", its chief executive officer Azran Osman-Rani said as to when it would begin operation. MAS will introduce three flights a week between Kota Kinabalu and Haneda from 15 Nov, its managing director and chief executive officer Tengku Datuk Azmil Zahruddin said. "Haneda is basically like our Subang airport, while Narita Airport is a bigger airport. Haneda is a lot nearer to Tokyo and was previously open to domestic flights only. But due to the congestion at Narita, the Japanese government is opening it up to international flights," he added. (StarBiz)
20100802 1010 Global Market News.
GLOBAL MARKETS: Asia stocks rise on S.Korea exports, China
HONG KONG, August 2 (Reuters) - Asian stocks rose on Monday and the Australian dollar firmed after Chinese manufacturing gauge for July was not as weak as feared and South Korea's exports grew faster than expected. "July's PMI did not fall through 50; however, we saw weakness almost across the board, echoing our view that the economy will keep moderating but not collapse," said Dong Tao, head of non-Japan Asia economics at Credit Suisse.
LONDON, July 30 (Reuters) - The dollar fell to an eight-month low against the yen while global shares slipped on worries U.S. growth data due later in the day may show the world's biggest economy is losing steam.
"U.S. economic data is underperforming and keeping pressure on the dollar," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.
HONG KONG, August 2 (Reuters) - Asian stocks rose on Monday and the Australian dollar firmed after Chinese manufacturing gauge for July was not as weak as feared and South Korea's exports grew faster than expected. "July's PMI did not fall through 50; however, we saw weakness almost across the board, echoing our view that the economy will keep moderating but not collapse," said Dong Tao, head of non-Japan Asia economics at Credit Suisse.
LONDON, July 30 (Reuters) - The dollar fell to an eight-month low against the yen while global shares slipped on worries U.S. growth data due later in the day may show the world's biggest economy is losing steam.
"U.S. economic data is underperforming and keeping pressure on the dollar," said Lee Hardman, currency economist at Bank of Tokyo-Mitsubishi UFJ.
20100802 1002 Soy Oil & Palm Oil Related News.
ITS Cargo Surveyor : Export up 4.41% for the period of : 1~31 July 2010
Soyoil futures rose in unison with the rest of the soy complex, rallying to 3-month highs. The market was buoyed by speculative and technical buying spreading through grain and oilseed futures, analysts said. December soyoil settled 0.55 cents or 1.4% higher at 40.55 cents per pound.(Source: CME)
Palm oil climbs on weather worry, eyes exports data
JAKARTA, July 30 (Reuters) - Malaysian crude palm oil was steady, supported by gains in soybean and uncertainty over grains crop harvests due to adverse weather which would slow global vegetable oil supplies.
"The market is still supported by external factors such as firm soybean markets and weather concern," said a trader at in a foreign commodities brokerage firm.
Soyoil futures rose in unison with the rest of the soy complex, rallying to 3-month highs. The market was buoyed by speculative and technical buying spreading through grain and oilseed futures, analysts said. December soyoil settled 0.55 cents or 1.4% higher at 40.55 cents per pound.(Source: CME)
Palm oil climbs on weather worry, eyes exports data
JAKARTA, July 30 (Reuters) - Malaysian crude palm oil was steady, supported by gains in soybean and uncertainty over grains crop harvests due to adverse weather which would slow global vegetable oil supplies.
"The market is still supported by external factors such as firm soybean markets and weather concern," said a trader at in a foreign commodities brokerage firm.
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