Crude palm oil futures up 10 points to closed at 2531 with lower volume forming a doji bar candle today. Despite today's advance, market seems having difficulties to determine which way it should headed toward without any fresh leads and catalyst. With this directionless mood, price continue to trade side way range bound as shown in the narrowing Bollinger band width. MACD Histrogram registered a lower below zero line reading shows that buying interest is gradually decreasing. Despite this negative feeling, FCPO unarguably is still trading in the uptrend market correction phase and is too early to even start thinking about Mr Bear thus expecting the market to trade side way range bound with potentially upside biased. Immediate support stands at the middle Bollinger band level and resistant rest at the previous high 2606 level.
When to buy : buy at support or weakness with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
4.5 points range FKLI market ended the week at 1256, up 2 points compare to yesterday despite better regional market performance. Selangor's holiday also contributed to the thin volume traded today. At closed, today doji bar position still stay below the middle Bollinger band and the band width nearly unchanged = market sentiment remain weak thus is likely to move downward biased. MACD Histrogram falling has paused today = partial seller covering some short position today ahead of the weekend. Daily chart wise, the market do looks bearish sided but having said that, market can potentially having a pullback effect after price hitted the lower Bollinger band and the band width seems stop expanding. Immediate resistant rest at the middle Bollinger band and should market continue to fall further, support stands at 1243 follow by 1232 level.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with larger cut loss and profit target.
A one day up one day down FKLI market closed 3 points higher at 1257 in unison with major Asia market. Chart wise, price managed to hold above the middle Bollinger band with the band width stay flat = ranging market. The last 3 MACD Histrogram bar retreated marginally = selling pressure came in. With such a thin volume transacted and ahead of the weekend market is expected to trade sideway ranging with a little upside biased movement in the second session. Support stands at the middle and lower Bollinger band.
A quite Friday for FCPO that traded marginally lower to closed at 2518 downed 3 points with thin volume transacted. Market gap higher at the opening and traded higher but failed to sustain the upward momentum. Price seems resisted and stay below the middle Bollinger band with the band width stay almost unchanged = a side way range bound market. MACD edging up slowly = small buying activities but still insufficient. Immediate resistant at the middle Bollinger band level and should price break up above it with higher volume would see price trying to test the upper Bollinger band level or else market is likely to trade side way ranging with downside biased.
Yesterday, LCL Corp announced that its 100%-owned subsidiary, LCl Furniture S/B has defaulted in payments of its credit facilities to two banks, Affin Bank and Bank Islam Malaysia. Total loan default was RM72m. LCL also announced due to the tight overall working capital position, the defaulted bank borrowings with Affin Bank and Bank Islam will have a consequence on the on-going bank borrowings of the LCL Group, which will also be declared default by other banks under the cross default clause.
- Legal proceedings may be initiated by the lenders against the LCL Group of companies. The board is also deliberating the solvency status of the LCL Group and will make the necessary announcement within the required timeframe.(BMSB)
Pengurusan Aset Air Bhd (PAAB) plans to make an offer it deems "more palatable" to Selangor's water concessionaires next week, said CEO Ahmad Faizal Abdul Rahman. The water players, he said, would be given two weeks to revert. "There is not much room for negotiation. We have based our offer on the results of the due diligence and the balance sheet.
- There is only so much one can negotiate on the difference in the interpretation of these figures. We will address the main concerns of the concessionaires and the offer would be fair to all parties." Faizal said the new offer would "more or less" be the same as the state's offer which had valued the water-related assets at about RM9.2bn or one time book value. But the approach will be different. Energy, Green Technology and Water Minister Datuk Peter Chin has set end-March 2010 as the deadline for PAAB. (Starbiz)
The timeline of the offer from PAAB is slightly earlier than expected. PAAB's clarification that the offers would "more or less" be the same with the state government's offers addresses earlier concerns that the take over prices would be lower. This means that in addition to selling their water assets and liabilities, water concessionaires would retain their O&M contracts. If this is the case, the new offers next week are not likely to be rejected. This is also positive for Puncak Niaga an in line with our expectations that the offers for PNSB and Syabas would approximate DCF value.
In a surprise move that could deprive it of over Rs 5,000 crore (US$1bn) in revenue, the Indian government has said the 3G spectrum available with it for sale currently could only accommodate three operators. A fourth slot has already been awarded to state-owned MTNL (that operates in Delhi and Mumbai) and BSNL (rest of India).
- It had earlier planned to auction spectrum to four private bidders, in addition to the staterun firms. The decision comes in the wake of the Ministry of Defence's reluctance to vacate the designated spectrum (air waves) for commercial use, official sources said, adding that the required notification would be issued soon. (Economic Times of India)
We are negatively surprised by this development as it would cause a more intense bidding process for 3G given the scarcity premium attached to the reduced number of slots. The key hold-up has been the release of spectrum by the Defence Department. Overall, this merely reinforces our negative view on the Indian telco sector which has seen more aggressive cuts in calling rates, roaming rates and SMS rates.
Malaysia’s palm oil stocks in November stood at 1.934m tonnes, reflecting only a marginal decrease from 1.974m tonnes, the highest level year-to-date, recorded in October. Malaysian Palm Oil Board, in its monthly report, also showed production in November dropped 19.6% to 1.595m tonnes compared with 1.984m tonnes in October. Exports grew slightly to 1.499m tonnes in November from 1.478m tonnes a month earlier. It was speculated the high inventory was due to buyers adopting a “wait and see” stance on anticipation that crude palm oil (CPO) price would fall further. (Starbiz)
Sime Darby's subsidiary Sime Darby Property is selling Caring Skyline to Green Ridge Enterprises for US$20m (RM68m). Caring Skyline is an investment holding company which has a 49% stake in PT Bhumyamca Sekawan whose principal activity was in the renting of commercial and industrial space. (Financial Daily)
Nestle will replace Parkson Holdings in the 30-counter strong FBMKLCI. This is following the semi-annual review of the benchmark index. Meanwhile, the FBM Hijrah Shariah Index will see the inclusion of Nestle, Star and Kencana. (Star)
DiGi is allowing U Mobile access to its nationwide 2G GSM network for the provision of telco services. Under the three-year domestic roaming agreement, U Mobile can offer an improved comprehensive portfolio of voice, SMS and data services nationwide. "The agreement will see the establishment of seamless hand-over of voice calls from U Mobile’s 3G network to DiGi Tel’s 2G GSM network," said DiGi.
- The agreement is for three years from commercial launch and may be further renewed for two years. DiGi said the domestic roaming agreement would leverage DiGi Tel’s existing infrastructure and generate additional revenue. "By increasing the traffic volumes through the contribution of U Mobile traffic, DiGi Tel will benefit from increased utilisation and network efficiency," it added. (Financial Daily)
Kencana Petroleum is bidding for more than RM4bn worth of projects, including that in Malaysia, India, Australia and Indo-China, said CEO Datuk Mokhzani Mahathir. The results will be known in a few months' time. "Chances of securing the projects are good as we have proven to be a serious player in this industry," he added. The company is looking at an investment of RM60m to increase the efficiency of its fabrication yard in Lumut. (Bernama)
Petra Perdana may have found a buyer for a block of its 55% stake in Petra Energy, according to documents obtained. In one document, Petra Perdana stated that it had appointed TA Securities as the placement agent for the disposal of its entire 54.62% stake in Petra Energy. It added that TA Securities had procured a purchaser for up to 30% stake and expected to effect a transaction either today or tomorrow. (Financial Daily)
Standard & Poor's has raised Tenaga’s long-term corporate credit rating to "BBB+" from "BBB" previously. The stable outlook reflected S&P’s expectation of continued government support for Tenaga, supply of subsidised gas from Petronas and, stable operating and financial performance in the medium term. (Bernama)
SP Setia plans to launch its RM6bn "green" mixed development opposite Mid Valley Megamall in Kuala Lumpur by July next year, CEO Tan Sri Liew Kee Sin. Kuala Lumpur City Hall will be SP Setia's partner on a profit-sharing basis, taking 20% of the project's net profits. The project, to be known as KL Eco City, will be developed in three phases over at least 10 years.
- SP Setia will develop office, commercial and retail space in the first phase; condominiums in the second; and signature offices in the third. KL Eco City is expected to start contributing to the developer's bottom line in its financial year ending 30 Oct 2011. SP Setia will spend RM250m of its own funds over this financial year and the next to improve the infrastructure there. (BT)
SP Setia is targeting at least RM1.6bn worth of real estate sales for its current fiscal year as pent-up demand for big-ticket items may be unleashed on the back of an economic recovery. Its president and CEO Tan Sri Liew Kee Sin said the firm planned to focus on improving overall yields by growing the gross development value of its projects and expanding profit margins.
- "Other plans include the proposed disposal of certain non-core assets and deployment of the group's strong balance sheet to acquire new landbank to secure the group's longterm growth prospects. We think we will do much better this year (FY10)," Liew said. (Financial Daily)
Affin Bank expects to maintain loan growth of 8-10% next year, with focus on consumer banking and SME lending. The bank also expects its NPL ratio to fall in line with the industry average of 2.5% by year-end. On its plans to start Islamic banking operations in China, ED (operations) Shariffudin Mohamad said Affin is still in talks with its substantial shareholder, Bank of East Asia Ltd (BEA) on how best to penetrate the market. (BT)
MOL Global, whose principal shareholder is Berjaya Corp’s chairman and CEO Tan Sri Vincent Tan, will acquire 100% of Friendster. Friendster is the operator of a top global web site based on traffic and a leading social network in Asia. Following the acquisition, the operations of MOL and Friendster will be combined to create Asia’s largest end-to-end content, distribution and commerce network. MOL Global Ltd expects to generate US$110m in annual revenue from the takeover, CEO Ganesh Kumar Bangah said. (Bloomberg, BT)
Naza TTDI, property arm of the Naza group, will build an iconic tower on a 25ha site near the proposed Matrade Centre in Kuala Lumpur, but is yet to finalise the height. Group MD SM Faliq SM Nasimuddin suggested that the building could even be higher than 100 storeys. However, much will depend on the amount of investments it can secure. "The master plan (for the 25ha area) is yet to be finalised. It should be completed by early next year," SM Faliq said. "No matter what the height, the structure will be a green building," he added. (BT)
Emas Kiara Industries has secured a RM49.8m job from WCT Construction S/B to undertake sub-contract work at the new low-cost carrier terminal in Sepang. Work will commence immediately and is slated for completion by 2Q10. The project is expected to contribute positively to Emas Kiara's earnings for Dec FY-10. (BT)
Magna Prima has signed a deal with Santari S/B to buy a 5.5-acre freehold land in Bandar Bukit Jalil, Kuala Lumpur for RM10.7m. The property will be used for the relocation of Lai Meng Primary School and Lai Meng Kindergarten currently located along Jalan Ampang, Kuala Lumpur. The proposed acquisition is expected to be completed in 1QCY10. This purchase is part of the Group's plan to buy Lai Meng Girls' School Association's land along Jalan Ampang for RM148.2m. (BT)
myEG Services will invest RM40m over the next two years in a pilot project to develop an online services-tax monitoring system, its executive chairman Datuk Dr Norraesah Mohamad said. The system would be launched in 1H10 targeting eateries and entertainment centres. "We are 85% there. We will roll out the system in the later part of 1H10 but only in the Klang Valley," she said. The RM40m investment would be funded by internally generated funds and was expected to be recouped in two years after the full implementation of the new system, she said. (Financial Daily)
Landmarks has appointed Sheraton Overseas Management Corp, an affiliate of Starwood Hotels & Resorts Worldwide, as the new operator of The Andaman Langkawi, with immediate effect. (Financial Daily)
Crude palm oil futures closed marginally lower down 5 points at 2521 with lower volume traded compare to yesterday. At closed, price holding on above the middle Bollinger band with the band width keeps narrowing = market correction still taking place. MACD Histrogram turned lower below the zero line = seems like seller still controlled the market. Immediate support level defence at the middle Bollinger band. Overall the correction could continue but near support level with possible resumption of upward movment in the uptrend market and should the support level break, market sentiment could turned negative.
When to buy : buy at support/weakness/break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
FKLI ended 3 points lower to closed at 1254 with higher volume traded. Both Bollinger band and MACD reading agreed on a downside movement market. The immediate support level at the 1251.5 also been tested today.
When to buy : buy at support or weakness with quick cut loss and profit target.
When to sell : sell at resistant/strength/break down with larger cut loss and profit target.
FCPO hourly chart wise still biased to a downside movement with immediate resistant level at the middle Bollinger band. Price still traded below the middle Bollinger band with the band width still expanding and MACD Histrogram shows a little improvement = market sentiment remained weak and seems facing some selling pressure once market reached a new high.
FKLI hourly chart still weak with the immediate resistant rest at the middle Bollinger band level. Both Bollinger band and MACD Histrogram reading show a downward movement biase market.
New electricity tariff may be introduced from January if it is approved by the Cabinet, said Energy, Green Technology and Water Minister Datuk Seri Peter Chin Fah Kui. He said the ministry was studying an application for the tariff increase by Tenaga before submitting it to the Cabinet. He said it was normal for TNB to ask for a tariff increase due to escalating production cost but the Cabinet would look at the whole situation, including the economic condition and whether the people could afford it. (Bernama)
Work on the solar energy plant in Perak, which will produce renewable energy with green and clean technology, will start by Jun-2010. Perak MB Datuk Seri Dr Zambry Abdul Kadir said Perak's foray into solar energy will be through a JV with Silicon Valley-based TCTI Inc. Perak will now host cutting edge photo-voltaic (PV) cell production facilities involving an initial FDI of US$250m (RM877m) to produce 100 MW of PV cells per annum by 2011. The eventual production is slated to 500 MW per annum. (Starbiz)
SP Setia is eyeing more land in the Johor Baru district for future development projects in view of the good long-term business prospect, said CEO Tan Sri Liew Kee Sin. To date, the company has 607ha left for development from four projects, according to Liew. "The remaining land here will keep us busy for the next three to five years and we are looking to add 607ha for future projects," he said. Liew said Johor's contribution to SP Setia's earnings was significant and for the financial year ended Oct 31, RM500m of its RM1.6bn turnover came from Johor. (Starbiz)
Ekuiti Nasional Bhd (Ekuinas), will call for proposals from other private equity firms keen to help it manage close to RM300m of funds next month. CEO Abdul Rahman Ahmad said it expects to commence the request for proposal (RFP) in late Jan-10, upon which a detailed evaluation and selection process will be undertaken to identify and select the outsourced private equity partners for Ekuinas. The selection process will be based on a two-phase approach. Yesterday’s session is aimed at soliciting interest as well as feedback from third party private equity firms while the second phase would be a RFP, where interested private equity firms would be asked to submit a detailed proposal, Rahman said. Over 50 private equity firms including independent, institutional and foreign fund management firms attended the briefing session. (BT)
Malaysia and Indonesia, the world's leading palm oil producers, and other palm oil producing countries may group together and file a case to the World Trade Organisation (WTO) against the European Union (EU) for introducing new laws skewed against the commodity. "The palm oil industry has received legal opinions that the EU Renewable Energy Directive could infringe the WTO's basic regulations," Malaysian Palm Oil Council (MPOC) chairman Datuk Lee Yeow Chor said. The EU directive seeks to restrict the import of palm oil for biofuel usage in Europe in favour of the heavily subsidised home-grown rapeseed oil. Adopted in April this year, the directive will take effect in March next year, with member states given time until October to legislate it. (BT)
Astro All Asia Networks plc will launch high-definition television (HDTV) in Malaysia on Friday, says CEO Datuk Rohana Rozhan. HDTV is a digital television broadcasting system with higher resolution than traditional television systems. "Astro TV is now available to some 2.87m residential subscribers who will be able to subscribe to its next generation of services, commencing with HDTV and high level interactivity and connectivity," she said. "The roll out of these services is estimated to cost some RM200m, including marketing and operating costs of approximately RM150m, over the next FY, ahead of revenue and earnings from these services," she said. (Bernama)
The Coordinating Body for Pos Malaysia Postal Unions on Wednesday submitted a memorandum, calling for a review of postal tariffs, to Second Finance Minister Datuk Seri
Ahmad Husni Mohamad Hanadzlah. Union of Pos Malaysia Uniformed Staff (UPUS) President Suffian Unoss said if the postal tariffs are reviewed it would facilitate a pay revision for employees. "We can choose to take an aggressive stance by resorting to industrial action but we decided against it as we are an interest group and not a pressure group," he added.
- Meanwhile, Pos Malaysia Chairman Tan Sri Dr Aseh Che Mat, in backing the call for a review, said postal tariffs were last revised in 1992. "We want a 100% revision of postal tariffs, 30 sen stamps should be priced at RM0.60."The existing rates are the lowest in the world. We hope the rates will be reviewed in order to reduce our operational cost," he added. Saying that only 8% of consumers, mainly banks and telecommunication companies used mail services, he added that the increase would not be felt by them.(Bernama)
Khazanah Nasional via its wholly-owned subsidiary Think City will launch a small grants programme aimed at kick-starting the regeneration of George Town's heritage city. The funds for the grant will be tapped from the RM20m allocated by the Ministry of Finance to protect Penang's heritage attributes. "Organisations or individuals who are direct and indirect stakeholders in the George Town world heritage site qualify to apply for the grants," Think City's programme manager (for George Town's Grants Programme) Veronica Liew said. (BT)
Maybank expects to increase its retail deposits by RM3.25bn during its "Maybank Extra Rewards' Deposit" campaign period, which is held from 1 Oct to end-Jan 10. Maybank head of consumer banking Lim Hong Tat said the previous four-month deposit campaign held from mid Feb to end Jun 09, registered a positive growth of RM1.45bn. "The last campaign was successful despite the challenging economic environment as well as the issuance of (other funds like) Amanah Saham Malaysia, Amanah Saham Wawasan 2020, Bon Simpanan Merdeka and Sukuk Simpanan Rakyat totalling RM12.33bn during that period," he said. (BT)
Malaysian Airline System (MAS) has signed a supplementary agreement with CIMB Bank to extend the payment period of its RM500m loan for five years beginning 31 Jan 2010. The loan facility, which was obtained in 2007, is used for working capital. (BT)
MK Land Holdings will launch the first phase of its RM3bn affordable housing project in northern Bangalore, India, by Jun-10, 3 months later than initially planned, says chairman, Tan Sri Mustapha Kamal Abu Bakar. Building plans were awaiting the approval of authorities in the state of Karnataka. "Under Phase 1, we will build 4,500 affordable homes which are a replica of MK Land's house design in Malaysia," said Mustapha. MK Land is partnering two other companies in the project: Embassy Group of India and MKN Embassy Development S/B. It will be the group's first project in India and second overseas, after Namibia. (BT)
Puncak Niaga and its consortium partners STX Heavy Industries Co Ltd and Pembinaan Kekal Mewah Sdn Bhd have failed to pre-qualify for Petronas Gas' Kimanis power plant project. The consortium were bidding for the EPCC works in Sabah. (Financial Daily)
Jobstreet has acquired a further 1.94% in 104 Corp raising its holdings in the latter to 16.5%. The total cost of investment in 104 Corp is RM50m and the market value of the stake is RM53m. (BMSB)
The current shareholders of hard disk drive (HDD) components maker JCY International will offer 530.21m existing shares or a 25.9% stake in the group for sale in an IPO exercise at prices to be determined later. Its shareholder YKY Investments would offer 470.32m, representing 23% stake in the group to institutional investors. As for non-institutional investors, YKY is offering 59.9m shares or 2.9% stake, out of which 18.99m shares representing 0.9% stake in the group are reserved for its directors and employees. This means that only 2% stake would be offered to the public. (Financial Daily)
GBH has proposed to undertake renounceable two-call rights issue of up to 124m new ordinary shares of RM1 each in GBH at a proposed issue price of RM1 per rights share. The first call of 60 sen is payable upon acceptance and the second call of 40 sen, representing a total of up to RM49.54m will be capitalised from the company’s revaluation reserves account. (Bernama)
Cymao said the two-year log extraction licence secured from the Forestry Department of Sabah is not subject to renewal. The licence expires on Nov 25, 2011. Cymao said there was no additional financial commitment or capital expenditure with regard to harvesting the forest except that the log harvesting cost to be paid to the logging contractor. (Financial Daily)
Tradewinds (M) has received acceptances to its offer to take over Padiberas Nasional (Bernas) shares totalling 18.81% of the latter’s paid-up capital as of the closing date yesterday. It told Bursa Malaysia that 18.66% were valid acceptances. Thus Tradewinds now holds 50.18% of the voting shares in Bernas. (Starbiz)
CB Industrial Product Holding has bought a 85% stake in PT Sawit Lamadau Raya, which is involved in preliminary establishment of palm oil plantations, for RM4m. CB Industrial said the acquisition is in line with its ordinary course of business in design, manufacturing and trading of a wide range of palm oil mill equipment, and also the cultivation of oil palm from its existing palm oil plantation. (BT)
MAN Truck & Bus (M), which sells commercial vehicles like trucks and buses, is ready to capture one-fifth of the mid-segment truck market share by 2015, with the help of its newly launched Cargo Line A series. The company, which currently has barely 5% of the mid-end truck market share, believes that the launch of the new fleet of trucks is timely, as demand is expected to grow amid the economic recovery. "We believe the goal is highly possible and achievable. Malaysia has limited products, as far as the market is concern. We foresee a strong demand for these trucks," said MAN Truck & Bus Asia Pacific president William Lee. Meanwhile, the company expects its high-end truck market share to grow to 20-25% by end 2015, from 16% now. (BT)
DSC Solutions made a dazzling debut on Bursa Malaysia ACE market yesterday, closing at 74.5 sen, up 198% from its reference price of 25 sen ex-bonus issue. The company, which was the most active counter for the day, traded at a high of 91.5 sen and low of 50 sen. Some 72.8m shares changed hands. For its listing exercise, DSC had offered its shares at 50 sen apiece. After the public issue, it undertook a one-for-one bonus issue, giving a reference price of 25 sen for its shares. (Starbiz)
Crude palm oil futures correction continued for the 3rd day forming another doji bar candle that closed down 35 points at 2526. Price managed to hold on above the middle Bollinger band = market is still upside biased. Bollinger band width still turning inwards = the correction can still take place in the near future. MACD Histrogram easing to nearer to the zero line level = seller seems a little more aggresive today. Volume transacted was higher compare to yesterday. Market could continue to do correction with the immediate support stands at the middle Bollinger band level but do bare in mind that market could also resume its uptrend movment anytime.
When to buy : buy at support/weakness/break up with larger cut loss and profit target.
When to sell : sell at resistant or strength with quick cut loss and profit target.
5 points range market FKLI closed down just 4 points at 1257 with higher volume traded. Today's doji bar candle hanged right at the lower Bollinger band with the band width expanding = the downward movement is likely to continue. MACD Histrogram ended just slightly lower = seller seems no selling heavyly. With the negative sentiment just started and price over extended below the lower Bollinger band and recovered, market could possible have some pull back effect in the downward movement.
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.
