20110427 1012 Soy Oil & Palm Oil Related News.

Soy Oil chart reading : side way range bound.

Soybeans (Source: CME)
US soybean futures finish lower, pressured by concerns about Chinese demand and the potential for higher soybean acres arising from delayed corn plantings. The market is worried about China's future growth, with talk of the country looking to cool inflation seen as a threat to US export demand, says Dave Marshall, an independent marketing advisor. China, the leading importer of US and global soybeans, has slowed its purchasing amid high port inventories and comfortable supplies at crushing plants. Further pressure was derived from freshly harvested South American supplies and cool, wet Midwest conditions poising a threat to early corn seedings. CBOT July soy settles down 7 1/4c at $13.89 1/4 per bushel.

Soybean Meal/Oil (Source: CME)
Soy-product futures end lower, backpedaling in unison with declines in soybean futures. Soymeal drew additional pressure from slowing demand, while soyoil was also hurt by weakness in world vegoil markets, analysts said. CBOT July soymeal finished down $1.50 at $364.40/short ton and July soyoil dropped 0.20c to 58.62c/pound.

US Soybean,Soymeal Exports To SE Asia In Containers Rise -Exec (Source: CME)
Shipments of U.S. soybeans and soymeal in containers to Southeast Asia are on the rise, as importers increasingly prefer to source cargoes in small volumes and reduce costs, a senior industry executive said. A major shift in import trends in the region is taking place, with containers increasingly favored over bulk shipments, American Soybean Association-International Marketing Regional Director John A. Lindblom said on the sidelines of a grains conference. He said close to 800,000 tons, or 35% of U.S. soybeans exports to Southeast Asia last year, were in containers. Around 19%--or 450,000 tons--of U.S. soymeal exports to the region were also in containers. Lindblom said figures for this year are yet to be compiled, but the trend will likely continue. Lindblom said that trade in containers has also helped importers establish direct contact with suppliers in the U.S., circumventing major grains trading companies.
He said importers believe another advantage of container shipments is that grain retains relatively higher quality if it doesn't have to pass through large elevators used to load bulk shipments. With large volumes of clothing, furniture, shoes and electronic goods being exported from Indonesia, Vietnam and Malaysia to the U.S., "many of these container boxes are returning to the region with soybeans and soymeal," he said. He said importers are also shifting their preferences towards container shipments as they don't have to tie up large amounts of capital for bulk cargoes of several thousand tons. Last year, close to 30% of U.S. soybean exports to Indonesia were in containers, he said. Indonesia is the largest buyer of U.S. soybeans in Southeast Asia. The U.S. has close to a 90% share of Indonesia's soybean import market.

Palm oil dips on rising production outlook, export data
Malaysian palm oil futures eased, as concerns about a higher production cycle, falling comparative oils and export numbers from the previous session weighed on prices. “On the cash side it is very quiet," said one trader. "The market is softer ... palm has been trading higher based on outside market (like) Dalian, CBOT and crude.

Argentina says 2010/11 soy harvest advancing fast
BUENOS AIRES, April 25 (Reuters) - Argentina's soy harvest advanced at a fast pace over the week through Thursday, despite rains that sometimes slow down bringing in the crop, the Agriculture Ministry said on Monday in its weekly report.
Argentina's Agriculture Ministry last week increased its 2010/11 soy harvest forecast to 50.4 million tonnes from 50 million tonnes as rains improved yields.

Brazil soy crop 91 pct harvested - Celeres
SAO PAULO, April 25 (Reuters) - Harvesting of Brazil's record 70.56-million-tonne soybean crop picked up last week helped by dry weather in most producing areas, grains analysts Celeres said on Monday.
In its latest weekly report, Celeres said that 91 percent of the new crop has been gathered, up from 85 percent the week prior but still lagging the 94 percent harvested at this time in 2010.

Canada farmers aim to boost canola area
WINNIPEG, Manitoba, April 21 (Reuters) - Canadian farmers intend to plant record-large acreage to canola for the fifth straight year, as well as more wheat and oats, grain traders and analysts said, but planting delays cast a shadow of uncertainty over prospects in the western crop belt.
Farmers will try to boost canola plantings by 10 percent to 18.5 million acres, according to the average of estimates gathered in a trade survey by Reuters ahead of Statistics Canada's first farmer survey of 2011 planting intentions, due on Tuesday.

20110425 1806 FCPO EOD Daily Chart Study.

FCPO closed : 3360, changed : -10 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer taking small position.
Support : 3350, 3300, 3270, 3250 level.
Resistance : 3420, 3450, 3470, 3500 level.
Comment :
FCPO closed recorded marginal loss with slower volume transacted after export data released showing decline but improved demand while soy oil and crude oil currently trading higher.
Daily chart formed a down doji bar candle closed above middle Bollinger band level after market opened and traded little higher before headed south tested below support level and recovered partial of intraday loss to closed off the low of the day.  
Side way range bound market ahead testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110425 1725 FKLI EOD Daily Chart Study.

FKLI closed : 1524 changed : +1.5 point, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : turned upwards, seller still holding on.
Support : 1515, 1500, 1485, 1470 level.
Resistance : 1530, 1540, 1550, 1565 level.
Comment :
Boring FKLI closed recorded small gain with little higher but relatively low volume changed hand doing almost par to cash market that closed recorded marginal gain while regional markets traded mixed due to lack of fresh catalyst and some market closed for Easter holiday.
Daily chart formed a doji bar candle closed position below middle Bollinger band level after market opened little higher, tested higher resistance level and slide downwards before recovered slightly to closed near opening price.
Chart reading still call for a side way range bound market development testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110425 1403 Global Economic Related News.

Portugal: 2010 Budget deficit was revised to 9.1% of GDP from 8.6% after the government added three highways onto its accounts, the National Statistics Agency said in an emailed statement. The government in March reported an 8.6% deficit for 2010, missing its target of 7.3%. Accounting changes ordered by Eurostat, the European Unions statistics agency, forced the state to add more than EUR2b (USD2.9b) to the 2010 deficit for impairment costs stemming from the 2008 seizure of Banco Portugues de Negocios SA and also for charges linked to the public-transportation system. (Source: Bloomberg)

China: Yuan forwards traded at the biggest premium to the spot rate in more than five months, reflecting speculation the central bank will allow faster currency gains to help tame inflation. More rapid appreciation may be a tool for curbing prices, Wang Yong, a professor at the People's Bank of China's training center, wrote in a commentary published in Securities Times newspaper. The central bank set the yuan's reference rate 0.11% stronger at 6.5156 per USD, the highest level since a dollar peg was scrapped in July 2005. (Source: Bloomberg)

Taiwan: Unemployment rate declined to a 29-month low in March as economic expansion encouraged companies including Chang Hwa Commercial Bank to hire. The seasonally adjusted rate fell to 4.42% from 4.59% in February, data released by the statistics bureau in Taipei showed. That's the lowest level since October 2008. (Source: Bloomberg)

Vietnam: Inflation accelerated to the fastest pace since 2008, putting pressure on the government to tighten policy further after almost doubling a key interest rate in less than six months. Consumer prices climbed 17.51% in April from a year earlier, according to figures released by the General Statistics Office in Hanoi. The rate is the highest since December 2008 and compares with the 13.89% pace last month. Prices rose 3.32% in April from March. (Source: Bloomberg)     

20110425 1402 Malaysia Corporate Related News.

KLCI chart reading : side way range bound.

KLK: Sells remaining stake in Callebaut. KLKs wholly-owned subsidiary, KL-Kepong Industrial Holdings Sdn Bhd, has disposed of its remaining 40% interest consisting of 14m ordinary shares of RM1 each in Barry Callebaut Malaysia Sdn Bhd to Luijckx BV for RM117m cash. (Source: Bursa Malaysia)

O&G: MMHE keen on Sime Darbys O&G assets? Malaysia Marine and Heavy Engineering Bhd (MMHE) is believed to be looking at taking over either some or all of the assets of Sime Darbys oil and gas unit. (Source: The Edge Financial Weekly)

RHB: Nod unlikely for private firm. Bank Negara is believed not likely to approve the entry of a private equity firm into RHB Capital Bhd, following the troubled history of Hong-Kong based Primus Pacific Partners at EON Bank. (Source: The Star)

Ramunia: Looking at UMWs rigs? Ramunia Holdings Bhd could be eyeing some UMW Holdings Bhds O&G assets which is driven by Lembaga Tabung Haji, Ramunias main shareholder. (Source: The Edge Financial Weekly)

Sarawak Plantation: Salcra may become largest shareholder. The Sarawak Land Consolidation and Rehabilitation Authority (Salcra) could be eyeing a 30.3% stake in Sarawak Plantation Bhd now held by private company Cermat Ceria Sdn Bhd. (Source: The Edge Financial Weekly)

Pos Malaysia: Khazanah sells stake to DRB-HICOM. Khazanah Nasional Bhd will divest its strategic stake of 32.2% in Pos Malaysia Bhd to DRB-Hicom Bhd at RM3.60 per share or RM622.8m. (Source: The Star)

Jerneh Asia: To push for special dividend? Jerneh Asia Bhd, which essentially announced a proposed reverse-takeover (RTO) exercise as part of its regularisation scheme last Thursday, can now seek to reward existing shareholders with a special dividend payout from the sale of its general insurance unit last year. (Source: The Star)   

20110425 1056 CPO Export Data.

ITS CPO export down 7.68% to 865,593 tonnes for the period of 1~25 Apr 2011.

SGS CPO export down 0.7% to 947,470 tonnes for the period of 1~25 Apr 2011.

20110425 0954 Global Commodities Related News.

Soy Oil chart reading : side way range bound.

Immediate-Delivery Gold Advances to Record $1,520 Per Ounce; Silver Climbs (Source: Bloomberg)
Gold for immediate delivery climbed to a record, advancing as much as 0.9 percent to $1,520 per ounce before trading at $1,513.57 per ounce at 7:46 a.m. in Singapore. Silver gained as much as 1 percent to $47.7400 per ounce.

Oil in New York Rises to Two-Week High as Middle East Violence Escalates (Source: Bloomberg)
Crude oil rose to the highest in two weeks in New York as renewed violence in the Middle East and Africa threatens to prolong supply disruptions. Futures gained as much as 0.4 percent after Syrian security forces detained at least 200 people following the killing of anti-government protesters and U.S. Senator John McCain said rebels in Libya need more assistance in the fight against Muammar Qaddafi’s forces. Saudi Arabia, holder of the world’s largest crude reserves, has no plans to raise production capacity, an oil official said.

Saudi Arabia to Keep Oil Production Capacity at 12.5 Million Barrels a Day (Source: Bloomberg)
Saudi Arabia, holder of the world’s largest crude oil reserves, has no plans to raise production capacity beyond 12.5 million barrels a day, a Saudi Arabian oil official said. Reports that the country may boost its output capacity to 15 million barrels a day aren’t true, the official said by telephone today, declining to be identified by name because he isn’t authorized to speak publicly.

Corn, Soybeans May Rise as Cold, Weather Slows U.S. Seeding, Survey Shows (Source: Bloomberg)
Corn and soybeans may rise this week as wet, cold weather in the U.S. Midwest threatens to delay planting of the nation’s two biggest crops, eroding yield prospects. Twenty-four of 31 traders and analysts surveyed from Tokyo to Chicago on April 21 said corn will rise, and 25 respondents forecast a gain for soybeans. Last week on the Chicago Board of Trade, corn futures for July delivery dropped 0.7 percent to $7.445 a bushel, and soybean futures for July delivery rose 3.5 percent to $13.8975 a bushel.

20110425 0951 Global Market Related News.

DJIA chart reading : upside biased.

Hang Seng chart reading : correction range bound little upside biased.

U.S. Growth Probably Slowed as Fuel Costs Rose (Source: Bloomberg)
The U.S. economy probably grew at a slower pace in the first quarter as a jump in gasoline prices caused consumers to cut back, economists said a report this week will show.

Coburn Says Medicare, Medicaid Must Be Part of Budget Talks (Source: Bloomberg)
Medicare and Medicaid programs must be part of the U.S. effort to reduce the budget deficit, Senator Tom Coburn said. “You can’t have Medicare out of the equation,” Coburn, an Oklahoma Republican and member of the Senate Budget Committee, said on NBC’s “Meet the Press” program broadcast today. “You can’t have Medicaid out of the equation. To lead on this issue and create a false predicate that says we can solve our problems without addressing our entitlements hurts the country.”

Profits Top Forecasts as Companies Wring Out More Savings (Source: Bloomberg)
First-quarter earnings have beaten forecasts so far, as companies from Apple Inc. to Novartis AG and LG Chem Ltd. wring more profit from operations worldwide and an economic pickup buoys sales.

Treasuries Advance Before Fed Meets on Bets Budget Efforts to Hurt Economy (Source: Bloomberg)
Treasuries rose for a second week as investors speculated that efforts to cut the Federal budget deficit may damp economic growth and awaited a policy statement next week from the Federal Reserve. Ten-year note yields fell to the lowest level in a month even as Standard & Poor’s put the U.S. government on notice that it risks losing its AAA credit rating. Gains were tempered by advances in stocks. The U.S. will sell $99 billion in notes in the coming week, and the Federal Open Market Committee opens its two-day meeting on April 26.

Treasuries Fail to Extend Two-Week Advance as U.S. Prepares Note Auctions (Source: Bloomberg)
Treasuries failed to extend a two- week gain as the U.S. prepared to auction $99 billion of notes over the next three days, starting with $35 billion of two-year debt tomorrow.

China Should Use Currency to Curb Inflation, Government Researchers Say (Source: Bloomberg)
Two prominent Chinese state researchers added to calls for the government to use the yuan to help curb inflation that accelerated to a 32-month high in March. “A moderate acceleration in the yuan’s appreciation would help China effectively deal with imported inflation”, Ba Shusong, a researcher at the State Council’s Development Research Center, said in Shanghai today. Wang Yong, a professor at the central bank’s training center, said policy makers should let the currency rise faster and widen its daily trading band by an “appropriate margin” in the second half of the year.

Japan Stocks Rise on Toyota Post-Quake Production Plan (Source: Bloomberg)
Japan’s Topix index rose for a fourth day led by Mitsubishi UFJ Financial Group Inc. after Credit Suisse Group AG raised the lender’s share price estimate. Tokyo Electric Power Co. rose on a report other utilities may be asked to share the cost of the Fukushima nuclear accident.

ECB’s Stark Says Debt Restructuring Risks Starting Crisis Exceeding Lehman (Source: Bloomberg)
European Central Bank Chief Economist Juergen Stark said a debt restructuring by a euro country risked triggering a banking crisis that could “worst case” exceed the effects of the failure of Lehman Brothers Holdings Inc., according to the transcript of an interview posted by German television station ZDF on its website. There is “no painless way” for countries that sought aid to reduce debt, while a restructuring may cut off the respective country from the financial markets for an unforeseeable time, Stark was quoted as saying.

U.K. GDP May Have Risen 0.5% in First Quarter as Economy Lacked Momentum (Source: Bloomberg)
Britain’s economy probably resumed growth in the first quarter with less momentum than needed to restore the pace of the recovery, economists say. Gross domestic product rose 0.5 percent after contracting the same amount in the fourth quarter, according to the median forecast of 27 economists in a Bloomberg News survey. The Office for National Statistics in London will publish the data at 9:30 a.m. on April 27.

Draghi Said to Be Seen by Sarkozy as Next European Central Bank President (Source: Bloomberg)
French President Nicolas Sarkozy considers Bank of Italy Governor Mario Draghi the leading candidate to succeed Jean-Claude Trichet at the helm of the European Central Bank, a person familiar with the matter said.

Portugal 2010 Deficit Revised Wider to 9.1% of GDP After Highways Included (Source: Bloomberg)
Portugal’s 2010 budget deficit was revised to 9.1 percent of gross domestic product from 8.6 percent after the government added three highways onto its accounts, the National Statistics Agency said today in an e- mailed statement. The government in March reported an 8.6 percent deficit for 2010, missing its target of 7.3 percent. Accounting changes ordered by Eurostat, the European Union’s statistics agency, forced the state to add more than 2 billion euros ($2.9 billion) to the 2010 deficit for impairment costs stemming from the 2008 seizure of Banco Portugues de Negocios SA and also for charges linked to the public-transportation system.

Australian Dollar Rises to Record on Prospects for Global Economic Growth (Source: Bloomberg)
The Australian dollar rose to a record high on prospects the global economy is improving. The currency climbed to $1.0776 as of 9:46 a.m. in Sydney from $1.0738 last week in New York.
Australia Needs to Make ‘Difficult’ Budget Decisions, Swan Says (Source: Bloomberg)
Australia needs to curb spending and make “difficult budget decisions” because tax revenue won’t grow as quickly as it did between 2004 and 2007 during the mining industry’s previous boom, Treasurer Wayne Swan said.

Vietnam Inflation Rate Rises to Highest Since 2008, Adding Rate Pressure (Source: Bloomberg)
Vietnam’s inflation accelerated to the fastest pace since 2008, putting pressure on the government to tighten policy further after almost doubling a key interest rate in less than six months. Consumer prices climbed 17.51 percent in April from a year earlier, according to figures released by the General Statistics Office in Hanoi today. The rate is the highest since December 2008 and compares with the 13.89 percent pace last month. Prices rose 3.32 percent in April from March.

Yen, Dollar Fall on Prospects Interest Rates Remain Near Zero (Source: Bloomberg)
The yen and dollar fell versus most of their major peers on speculation the central banks in Japan and the U.S. will this week keep interest rates near zero, while policy is being tightened elsewhere. The euro rose toward a 16-month high versus the dollar on prospects European Central Bank officials will signal that further rate increases will be necessary to contain inflation. Australia’s dollar climbed to a record as rising gold prices boosted the outlook for the nation’s resource exports, spurring demand for higher-yielding assets.

20110422 1828 FCPO EOD Daily Chart Study.

FCPO closed : 3370, changed : +58 points, volume : higher.
Bollinger band reading : side way range bound.
MACD Histrogram : rising, buyer taking small position.
Support : 3350, 3300, 3270, 3250 level.
Resistance : 3420, 3450, 3470, 3500 level.
Comment :
FCPO closed recorded gains with higher volume changed hand ahead for next Monday export data after soy oil overnight closed recorded gains along with higher crude oil and grains base commodities prices.
Daily chart formed an up bar candle closed above middle Bollinger band level after market opened little higher and move upwards slowly to closed near the high of the day.  
Chart reading wise, market still likely to move side way range bound testing support and resistance level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.

20110422 1758 FKLI EOD Daily Chart Study.

FKLI closed : 1522.5 changed : -6 points, volume : lower.
Bollinger band reading : side way range bound.
MACD Histrogram : turned downwards, seller still holding on.
Support : 1515, 1500, 1485, 1470 level.
Resistance : 1530, 1540, 1550, 1565 level.
Comment :
FKLI closed recorded loss with quiet volume changed hand doing almost par to cash market that closed recorded small loss while regional markets mostly closed for Good Friday holiday.
Daily chart formed a down bar candle closed lower from middle Bollinger band level after market opened little higher and slide downwards to closed near the low of the day.
Chart reading remained suggesting a side way range bound market development but possibly testing lower support level this time.
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.

20110422 1002 Global Economic Related News.

Australia: Producer prices rose more than economists forecast in 1Q11 as costs for petroleum refining and electricity, gas and water increased. The producer prices index advanced 1.2% QoQ in the January-to-March period from the prior quarter, when it gained 0.1% QoQ. The index rose 2.9% YoY. (Source: Bloomberg) 

China: Open to buy more bonds of indebted Euro-area countries
China is open to buying more bonds of indebted euro-area nations as part of a strategy to bolster the European Union economy and diversify away from investments in U.S. debt, said the Chinese ambassador to the EU. Song Zhe said China owns “several billion euros” of bonds sold by Greece and Portugal and might embark on another round of purchases of sovereign debt in the euro area. Song said China believes the EU can overcome the euro area’s debt crisis, which was triggered by Greece last year and has since engulfed Ireland and Portugal. With the International Monetary Fund, the EU organized a EUR110bn rescue of Greece last May and a EUR85bn bailout of Ireland in November and is now preparing EUR80bn in emergency aid for Portugal. (Bloomberg)

Japan: Compiles USD 49b extra budget for quake relief efforts. The government will fund the budget without increasing the JPY 44.3tr in new bond issuances set for the year ending March 2012, according to a government statement released in Tokyo. The outlays will be financed by using JPY 2.5tr from pension funds as well as money originally intended to increase payments to family with children. (Source: Bloomberg)

Japan: Demand for bank loans rose for the first time in two years as the nations strongest earthquake on record spurred companies to borrow. An index of demand for loans to businesses was at 8 in the period between March 11 and April 12, the Bank of Japan said in a survey of loan officers in Tokyo. It was the first positive reading since April 2009, a sign demand increased. (Source: Bloomberg)

Japan: OECD halves growth forecast to 0.8%
The impact of last month's devastating quake-tsunami disaster will slash Japan's economic growth to 0.8% this year, the Organization for Economic Cooperation and Development (OECD) said yesterday, halving its earlier forecast of 1.7%. But massive government and business investment in reconstruction is expected to drive a sharp rebound in 2012, with the economy seen expanding 2.3%, up from the OECD's previous estimate of 1.3% given in a November report. “While it is still too early to assess the full extent of the damage, the immediate impact will be to reduce output, although this will later be reversed by reconstruction efforts,” the Paris-based OECD said. (StarBiz)

Germany: Business confidence fell for a second month in April
German business confidence fell for a second month in April after oil prices rose to the highest in 2 1/2 years, damping the global economic outlook and threatening to curb domestic consumer spending. The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, dropped to 110.4 from 111.1 in March. The index rose to 111.3 in February, the highest since records for a reunified Germany began in 1991. (Bloomberg)

U.K: Budget deficit narrowed in March and remained within Chancellor of the Exchequer George Osbornes borrowing plans for the year. Net borrowing was GBP18.6b (USD30.7b), compared with GBP10.1b a year earlier, the Office for National Statistics said in London. The annual shortfall was GBP141.1b, below a government forecast of GBP145.9b. (Source: Bloomberg)

UK: Retail sales unexpectedly rose in March on food spending
UK retail sales unexpectedly rose in March as the biggest jump in spending on food in 10 months outweighed a decline at other shops. Sales rose 0.2% from February, when they dropped 0.9%, the Office for National Statistics said today in London. From a year earlier, sales increased by 1.3%. The report suggests a surge in commodity prices and inflation that’s double the central bank’s 2% target has yet to squeeze shoppers at a time when the government’s fiscal cuts have dragged down confidence. The Bank of England kept its benchmark interest rate at a record low of 0.5% this month and minutes of the meeting show officials saw risks that an increase to tame price gains could dent spending. (Bloomberg)

US: Leading indicators, consumer confidence climb
The index of US leading indicators increased for a ninth month in March and Americans’ confidence rose for a fourth week, signaling the expansion may withstand higher fuel costs. The Conference Board’s gauge of the outlook for the next three to six months rose 0.4% after a revised 1% gain in February that was larger than previously estimated, the New York-based group said today. Further improvement in the labor market is needed to help accelerate consumer spending, which accounts for about 70% of the economy, and sustain recent gains in production. (Bloomberg)

U.S: Philadelphia area manufacturing slowed in April as measures of orders and sales fell. The Federal Reserve Bank of Philadelphias general economic index dropped to 18.5, the lowest level since November, from 43.4 the prior month which was the highest level since 1984. Readings greater than zero signal expansion in the area covering eastern Pennsylvania, southern New Jersey and Delaware. (Source: Bloomberg)

U.S: Initial jobless claims declined less than forecast, indicating the labor market will take time to improve. Jobless claims decreased by 13,000 to 403,000 in the week ended April 16. The number of people on unemployment benefit rolls and those receiving extended payments declined. (Source: Bloomberg)

20110422 0959 Malaysia Corporate Related News.

KLCI chart reading :
side way range bound little upside biased. 

Tenaga 2Q earnings down 37% to RM630m, sees challenging year
Tenaga Nasional (TNB)’s earnings fell 36.9% to RM630.30m in the second quarter ended 28 Feb 2011 from RM1bn a year ago as it was impacted by higher coal prices. Forecasting the current financial to be challenging, TNB said yesterday that its revenue was a marginal 1.5% higher at RM7.503bn from RM7.389bn a year ago. Its earnings per share were 14.2 sen compared with 23.05 sen while it declared a lower dividend of 4.5 sen per share. The power giant said the improvement was mainly from sales of electricity in Peninsular Malaysia and Sabah Electricity SB (SESB), which recorded an increase of 2.4% and 5.2% respectively. The units also registered a growth of 2.0% in the peninsula and 4.7% in SESB on-year. (Financial Daily)

Carlyle, TPG eye joint bid for RHB Cap stake
Carlyle Group and TPG Capital are in early talks to launch a joint bid for a USD1.5bn (RM4.5bn) stake in Malaysian lender RHB Capital, three sources with direct knowledge of the matter said. Abu Dhabi Commercial Bank owns the stake and has hired Goldman Sachs and Bank of America-Merrill Lynch to run the auction. Carlyle and TPG have engaged an investment bank to advise them on the potential offer, said the sources. (BT)

JTI to consider paying special dividend
Tobacco major JT International Bhd (JTI) will consider paying a special dividend this year, according to chairman Datuk Seri Mohd Nadzmi Mohd Salleh. “We are looking into various business opportunities. If we do not need the money, we will consider that (paying a special dividend),” he said after the company AGM. Nadzmi, however, did not elaborate on the business that JTI was eyeing. “We are exploring which business to invest in but we can't disclose details yet.” As at 31 Dec 2010 (FY10), JTI has a cash and cash equivalents of RM189.2m. For the full year, JTI posted a net profit of RM133.8m on revenue of RM1.2bn. In FY10, JTI maintained its gross dividend payout of 30 sen per share less 25% tax, representing a dividend yield of 5%. (StarBiz) 

RM7.2bn helicopter deals inked
Two local helicopter service providers have won deals worth RM7.2bn from oil firms in Malaysia and one is already planning to use this as a stepping stone for regional expansion. Privately-held Weststar Aviation Services SB is keen to become a bigger player in Southeast Asia and it may raise money from an initial public offering. "There is a great potential for Weststar's growth in the oil and gas sector and we fully intend to expand," group managing director Tan Sri Syed Azman Syed Ibrahim told reporters at a briefing. In fact, it has been invited to bid for services in Thailand and Myanmar. Weststar Aviation will provide nine helicopters in a deal worth RM4.2bn to Petronas Carigali Sdn SB, ExxonMobil Exploration and Production Malaysia Inc, Newfield (Malaysia) Incorporated, Petrofac (Malaysia-PM304) Ltd and Talisman (Malaysia) Ltd. Syed Azman said the tender had called for 14 helicopters and Weststar had allocated RM1.5bn to fund the project. (BT)

China Stationery gets SC nod for listing on Bursa
The RM1.1bn China-based company that has been approved to list by the Securities Commission (SC) is China Stationery Ltd from Putian, Fujian Province, according to reliable sources. This listing is significantly bigger than the other China companies listed in Malaysia, the largest so far being Sozo Global Ltd, which had a market capitalisation of RM388.44m as of yesterday, according to Bloomberg. China Stationery said in March that it was approved to list on Bursa Malaysia's Main Market but it did not provide details of its size. In yesterday's first quarter scorecard, the SC said it had approved the listing of a China-based company with a potential market capitalisation of RM1.1bn. China Stationery is scheduled to list by the second quarter. (StarBiz)

Jerneh Asia eyes Sabah developer
After hiving off its core insurance business in Malaysia, cash-rich Jerneh Asia has now set its sights on acquiring Sabah-based property developer Sagajuta Sabah SB, whose flagship project is the massive 1 Borneo mixed development in Kota Kinabalu. Jerneh Asia announced to Bursa Malaysia yesterday that it had signed a memorandum of understanding (MoU) with Sagajuta’s 60% shareholder, Generasi Cipta SB, to start exclusive discussions for the proposed acquisition. If the talks bear fruit, it will be a backdoor listing of Generasi Cipta, whose main assets include the 1 Borneo project that has a gross development value of RM1.2bn, encompassing a 1.5m sq ft shopping mall, four hotels and four condominium towers. (Financial Daily) 

Nestle upbeat on 2011 performance, double digit growth
Nestle (M) is projecting a positive trend for the company in 2011 based on strong sales both domestic and international. The company on Wednesday announced a turnover of RM1.2bn for its 1Q ended 31 March, 2011, representing a 16.1% growth compared to the corresponding period of 2010. At a press conference, its managing director Peter R Vogt said Nestle’s results was proof that the company had continued to do well despite the higher prices of commodities. Export sales showed a double digit increase, sustaining the strong performance achieved last year, he said. For 2010, Nestle posted a turnover of RM4bn, 7.5% higher than the year before, while PBT stood at RM456.7m, a 5.8% increase versus the previous year, driven by positive developments in the local and global economies. (Malaysian Reserve)

BAT profit hit by excise hike
British American Tobacco (M) Bhd's (BAT) net profit dropped 6.95% to RM178.55m for the first quarter ended 31 March compared with the same quarter a year ago. Sales volume declined by 7.5% in the quarter under review resulting from the steep excise increase last October. In comparison, industry volumes among the Confederation of Malaysian Tobacco Manufacturers' members declined dramatically by 9% for the first quarter of 2011 compared with the same period last year. The significant decrease in industry volumes was a result of higher prices on the back of a steep 16% increase in excise duty in October and illegal sale of locally produced products, BAT said in an announcement. The company told Bursa Malaysia yesterday that revenue declined 2.61% to RM992.14m as a result of lower volumes and unfavourable pack-size mix (due to a ban on packs less than 20 sticks). However, this was partially offset by higher excise and subsequently pricing. “Net turnover (revenue less Government levies) declined more than revenue, reducing by 9.2% as the industry took a smaller portion of the price increase,” the company said. BAT said profit from operations only declined by 6.7%. (StarBiz)

IPO: Quake delays IPO of world's largest syariah REIT. The listing of Malaysia's Axis Global Industrial real estate investment trust (REIT), has been pushed back by about a month after 2 of its Japanese assets were damaged by the March earthquake. The 2 assets have been removed from its initial asset composition and the size of the REIT has been slightly reduced. (Source: The Edge Daily)

Oil & Gas: Petronas signs unitization agreement with Malaysia-Thailand Joint Authority for the gas field straddling across Block PM 301 in the northeast coast of Peninsular Malaysia and Block A-18 in the Malaysia-Thailand Joint Development Area. The unitisation agreement gives Petronas rights to the reserves in the unitised area, which has an estimated ultimate recovery of 1.25t standard cubic feet of gas. (Source: The Edge)

Transocean: BP sues for $40b over oil spill in Gulf of Mexico. BP Plc sued Transocean, seeking at least $40b (RM120.3b) in damages and other costs from the owner of the Deepwater Horizon rig. BP said on 20 April 2010, every single safety system and device and well control procedure on the Deepwater Horizon failed, resulting in the casualty. (Source: The Sun)