KUALA LUMPUR 30 Mac - Ketiadaan pelaburan swasta, kesukaran menjalankan perniagaan, kurang industri nilai tambah, pekerjaan kemahiran rendah dan upah yang kecil, merupakan antara faktor yang dikenal pasti menyumbang kepada pertumbuhan perlahan negara sejak krisis kewangan Asia 1997-1998.
Pertumbuhan produktiviti yang lembap, kreativiti dan inovasi yang tidak mencukupi serta kekurangan modal insan berkemahiran juga melembapkan pertumbuhan ekonomi, demikian menurut Majlis Penasihat Ekonomi Negara (MPEN) dalam bahagian pertama Laporan Model Ekonomi Baru (MEB) di sini hari ini.
Katanya, krisis kewangan Asia menyebabkan aliran keluar pelaburan langsung asing (FDI) dan pelaburan portfolio asing serta penurunan dalam pelaburan keseluruhan yang tidak diperoleh kembali.
"Krisis berkenaan menjadi titik perubahan dalam pertumbuhan Malaysia. Sejak krisis itu, kedudukan Malaysia sebagai peneraju ekonomi di rantau ini terhakis," katanya.
MPEN juga berkata, pengurangan dalam pelaburan agregat di Malaysia didorong terutamanya oleh penurunan dalam pelaburan swasta yang tidak berkembang.
Beberapa faktor menarik tahap pelaburan swasta dalam tahun-tahun kebelakangan ini, antara lain termasuk kehadiran yang ketara syarikat-syarikat berkaitan kerajaan (GLC) dan kerajaan.
Menurutnya, prosedur birokratik yang panjang lebar dan merumitkan mempengaruhi kos melabur dan bakal pulangan terhadap pelaburan manakala kekurangan kemahiran yang berterusan juga memberi impak terhadap pelaburan.
Ketiadaan pelaburan domestik swasta dapat dilihat dengan perkembangan dalam akaun luar yang menyaksikan peningkatan dalam aliran keluar akaun modal bagi pembiayaan pelaburan Malaysia di luar negara.
Walaupun aliran masuk FDI ke Malaysia pulih agak baik, namun ini tidak menterjemahkan kepada tahap pelaburan agregat yang lebih tinggi.
Semasa menyifatkan situasi ini sebagai fenomena luar biasa, MPEN berkata, ini menunjukkan Malaysia tidak mengambil kesempatan terhadap aliran masuk FDI untuk memberi tambahan kepada sumber pelaburan domestik, terutamanya dalam bidang inovatif dan teknologi canggih.
Pada 2008, sebahagian besar FDI adalah ke dalam sektor perkhidmatan dengan sebahagian besarnya dalam sektor-sektor perdagangan pengagihan dan perkhidmatan kewangan.
Kedua-duanya memerlukan sebahagian kecil penyediaan modal fizikal tetapi memerlukan tahap inovasi dan perangkaian yang tinggi yang kurang dimiliki pelabur domestik.
"Kita perlu mewujudkan keadaan kondusif yang akan merangsang pelaburan swasta domestik dalam produk nilai tambah tinggi dan perkhidmatan bagi meningkatkan tahap pendapatan kita," kata MPEN lagi.
March 31, 2010
TNB sees return of foreign investors' interest
UTILITY firm Tenaga Nasional Bhd (TNB) (5347) expects foreign investors' interest in its shares to return once the government gives more clarity on the tariff structure and fuel pass-through formula.
Chief executive officer Datuk Seri Che Khalib Mohamad Noh hopes that an announcement will be made soon by the government on the matter, perhaps before the next power tariff review due in early July.
"If the government is going to remove (gas) subsidy, this more transparent cost pass-through formula has to come together, because you can't have a remo-val in subsidy on one side, while the power tariff is not certain," Che Khalib told reporters on the sidelines of Invest Malaysia 2010 in Kuala Lumpur yesterday.
Prime Minister Datuk Seri Najib Razak has said in his keynote address earlier that Malaysia will eventually do away with various subsidies as part of the economic reform.
"The gas price in Malaysia is far below market price and once the subsidy is removed, there will be additional cost in producing electricity. Tenaga is not in the position to absorb the additional cost," Che Khalib said.
He added that many investors have sold TNB shares as a result of this lack of clarity in power pricing in Malaysia.
Its foreign shareholding has fallen from a peak of 28 per cent to less than 10 per cent now, he said.
Che Khalib said since the gas price in Malaysia is currently heavily subsidised, it will be a gradual process for the government to fully remove the subsidy.
"If gas price is going up every six month, then power price needs to be adjusted accordingly as well to reflect the additional gas price that Tenaga has to pay, I think that's straight forward.
"The commitment by the prime minister this morning saying that the subsidy has to be eventually removed, I think that's one positive side towards providing more clarity to the power industry in particular.
"I was made to understand that Pemandu (Performance Management and Delivery Unit), which is the subsidy lab, is currently looking at all these. I hope they can put into recommendation to have the transparency in the tariff setting, because that is one important element for us to move forward," Che Khalib said.
Chief executive officer Datuk Seri Che Khalib Mohamad Noh hopes that an announcement will be made soon by the government on the matter, perhaps before the next power tariff review due in early July.
"If the government is going to remove (gas) subsidy, this more transparent cost pass-through formula has to come together, because you can't have a remo-val in subsidy on one side, while the power tariff is not certain," Che Khalib told reporters on the sidelines of Invest Malaysia 2010 in Kuala Lumpur yesterday.
Prime Minister Datuk Seri Najib Razak has said in his keynote address earlier that Malaysia will eventually do away with various subsidies as part of the economic reform.
"The gas price in Malaysia is far below market price and once the subsidy is removed, there will be additional cost in producing electricity. Tenaga is not in the position to absorb the additional cost," Che Khalib said.
He added that many investors have sold TNB shares as a result of this lack of clarity in power pricing in Malaysia.
Its foreign shareholding has fallen from a peak of 28 per cent to less than 10 per cent now, he said.
Che Khalib said since the gas price in Malaysia is currently heavily subsidised, it will be a gradual process for the government to fully remove the subsidy.
"If gas price is going up every six month, then power price needs to be adjusted accordingly as well to reflect the additional gas price that Tenaga has to pay, I think that's straight forward.
"The commitment by the prime minister this morning saying that the subsidy has to be eventually removed, I think that's one positive side towards providing more clarity to the power industry in particular.
"I was made to understand that Pemandu (Performance Management and Delivery Unit), which is the subsidy lab, is currently looking at all these. I hope they can put into recommendation to have the transparency in the tariff setting, because that is one important element for us to move forward," Che Khalib said.
SapuraCrest bids for projects worth RM6b
SAPURACREST Petroleum Bhd (8575) , an integrated oil and gas services provider, is bidding for projects worth as much as RM6 billion in the region, including Australia, Saudi Arabia and India.
Its executive vice-chairman Datuk Shahril Shamsuddin said the company hopes to secure between 50 per cent and 60 per cent of those jobs.
"We will continue to bid for projects. Our order book now stands at RM11 billion," he said on the sidelines of the Invest Malaysia 2010 conference in Kuala Lumpur yesterday.
Shahril expects the local oil and gas industry to perform much better than last year.
"I think it's going to be better than last year. Signs of recovery in developing countries are already there. That will drive more development in the oil and gas industry. So the activities there will increase," he said.
Its executive vice-chairman Datuk Shahril Shamsuddin said the company hopes to secure between 50 per cent and 60 per cent of those jobs.
"We will continue to bid for projects. Our order book now stands at RM11 billion," he said on the sidelines of the Invest Malaysia 2010 conference in Kuala Lumpur yesterday.
Shahril expects the local oil and gas industry to perform much better than last year.
"I think it's going to be better than last year. Signs of recovery in developing countries are already there. That will drive more development in the oil and gas industry. So the activities there will increase," he said.
Petronas move to list 2 big units welcomed
Analysts say this is good good news for investors, considering that big new listings have been slow in coming to Bursa Malaysia
National oil firm Petroliam Nasional Bhd (Petronas) will list two "sizeable" subsidiaries with good track records on the local stock exchange this year, Prime Minister Datuk Seri Najib Razak said.
Analysts said this was good news for investors, considering that big new listings had been slow in coming to Bursa Malaysia, with sizeable companies like Astro All Asia Networks plc aiming to go private.
Last year, there were just 12 new listings on Bursa Malaysia.
"These initiatives have the goal to reduce the government's presence, directly or indirectly, in business activities that are best carried out by the private sector," Najib said at the Invest Malaysia 2010 conference in Kuala Lumpur yesterday.
He said Petronas had identified the companies to be listed, but did not name them.
"We have heard for some time that the Petronas group was looking at listing some of its subsidiaries. So we look forward to hearing the details of that. We're very much looking foward to the (listings) happening," Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff told reporters on the sidelines of the conference.
Fund managers voiced hope that the two companies would have a decent-sized free float, or amount of shares available for public trading. This has been a key complaint among investors in Malaysia - that there are not enough shares available for trading among the listed companies.
"Petronas already has some companies listed in the market, but they're not so liquid," a fund manager noted.
"When you talk about liquidity in the market today, Bursa allows companies to come to market at 25 per cent free float. But I think we should change some of these rules. Make it at least 40 per cent so that will increase liquidity, which will then allow for higher weightage and this will help the market as a whole," said Pankaj Kumar, chief investment officer at Kurnia Insurans (Malaysia) Bhd.
Yusli said the current requirement was adequate when benchmarked against other markets and the exchange had no plans to change that for now.
"Although 25 per cent is the minimum, we would like to see a much higher level. We would love to see overall free float go beyond 50 per cent," he remarked. - By Adeline Paul Raj
National oil firm Petroliam Nasional Bhd (Petronas) will list two "sizeable" subsidiaries with good track records on the local stock exchange this year, Prime Minister Datuk Seri Najib Razak said.
Analysts said this was good news for investors, considering that big new listings had been slow in coming to Bursa Malaysia, with sizeable companies like Astro All Asia Networks plc aiming to go private.
Last year, there were just 12 new listings on Bursa Malaysia.
"These initiatives have the goal to reduce the government's presence, directly or indirectly, in business activities that are best carried out by the private sector," Najib said at the Invest Malaysia 2010 conference in Kuala Lumpur yesterday.
He said Petronas had identified the companies to be listed, but did not name them.
"We have heard for some time that the Petronas group was looking at listing some of its subsidiaries. So we look forward to hearing the details of that. We're very much looking foward to the (listings) happening," Bursa Malaysia chief executive officer Datuk Yusli Mohamed Yusoff told reporters on the sidelines of the conference.
Fund managers voiced hope that the two companies would have a decent-sized free float, or amount of shares available for public trading. This has been a key complaint among investors in Malaysia - that there are not enough shares available for trading among the listed companies.
"Petronas already has some companies listed in the market, but they're not so liquid," a fund manager noted.
"When you talk about liquidity in the market today, Bursa allows companies to come to market at 25 per cent free float. But I think we should change some of these rules. Make it at least 40 per cent so that will increase liquidity, which will then allow for higher weightage and this will help the market as a whole," said Pankaj Kumar, chief investment officer at Kurnia Insurans (Malaysia) Bhd.
Yusli said the current requirement was adequate when benchmarked against other markets and the exchange had no plans to change that for now.
"Although 25 per cent is the minimum, we would like to see a much higher level. We would love to see overall free float go beyond 50 per cent," he remarked. - By Adeline Paul Raj
Axiata plans for share sale proceeds
AXIATA Group Bhd (6888), one of the largest Asian telecommunication companies, says it is likely to use part of proceeds from the sale of shares in its Indonesia-based subsidiary to reduce debts and as dividend to shareholders.
"We are looking at a few possibilities. One of it is a special dividend or we make it as part of a long-term dividend, or we pare down our debts.
"What we are more inclined at this point in time, is a combination of the latter two. This means, we will pare down the debts and at the same time, build enough cash accumulation, so that we can give shareholders a good progressive dividend," said president and group CEO Datuk Seri Jamaludin Ibrahim on the sidelines of Invest Malaysia 2010 in Kuala Lumpur yesterday.
Axiata said last week that it plans to raise as much as RM2 billion by selling a 20 per cent stake in PT XL Axiata Tbk (XL). The share sale would reduce its shareholding to 66 per cent.
The company also expects its local unit Celcom Axiata Bhd to continue to grow faster than the industry this year, despite increasing competition from rivals.
"We expect Celcom's growth to still be good, we want to grow faster than the industry. Based on research, the industry is expected to grow by 5 per cent. I think we want to do better than that," said Jamaludin.
Celcom chief executive officer Datuk Seri Shazalli Ramly said that the company is well prepared to grow in the first quarter, which traditionally the weakest quarter of the year.
"First quarter is traditionally the weakest quarter, due to less working days as a result of festive seasons, but nevertheless, we were prepared. We have launched several initiatives, such as the Celcom Sale," said Shazalli.
He declined to comment if the company can continue its consecutive quarterly revenue growth momentum. Celcom, the country's second largest mobile operator, gained the most market share last year. It managed to grow 15 consecutive quarterly revenue and earnings growth.
"We are looking at a few possibilities. One of it is a special dividend or we make it as part of a long-term dividend, or we pare down our debts.
"What we are more inclined at this point in time, is a combination of the latter two. This means, we will pare down the debts and at the same time, build enough cash accumulation, so that we can give shareholders a good progressive dividend," said president and group CEO Datuk Seri Jamaludin Ibrahim on the sidelines of Invest Malaysia 2010 in Kuala Lumpur yesterday.
Axiata said last week that it plans to raise as much as RM2 billion by selling a 20 per cent stake in PT XL Axiata Tbk (XL). The share sale would reduce its shareholding to 66 per cent.
The company also expects its local unit Celcom Axiata Bhd to continue to grow faster than the industry this year, despite increasing competition from rivals.
"We expect Celcom's growth to still be good, we want to grow faster than the industry. Based on research, the industry is expected to grow by 5 per cent. I think we want to do better than that," said Jamaludin.
Celcom chief executive officer Datuk Seri Shazalli Ramly said that the company is well prepared to grow in the first quarter, which traditionally the weakest quarter of the year.
"First quarter is traditionally the weakest quarter, due to less working days as a result of festive seasons, but nevertheless, we were prepared. We have launched several initiatives, such as the Celcom Sale," said Shazalli.
He declined to comment if the company can continue its consecutive quarterly revenue growth momentum. Celcom, the country's second largest mobile operator, gained the most market share last year. It managed to grow 15 consecutive quarterly revenue and earnings growth.
March 30, 2010
Sertai komuniti Berita Harian login|daftar
CIMB dilantik agih bantuan kewangan untuk usahawan di negara Asean
CIMB Group Holdings Bhd memperoleh dana sebanyak AS$300 juta (RM987 juta) daripada Japan Bank of International Cooperation (JBIC) untuk disalurkan sebagai pembiayaan kepada syarikat perusahaan kecil dan sederhana (PKS) di negara Asean.
Dana itu adalah yang terbesar disediakan JBIC kepada institusi kewangan komersial serta yang pertama disalurkan bagi membantu syarikat PKS menerusi kumpulan perbankan tunggal. Ketua Eksekutif CIMB Group, Datuk Seri Nazir Razak, berkata menerusi perjanjian selama sembilan tahun itu, dana berkenaan akan disalurkan menerusi cabang kumpulan CIMB iaitu CIMB Bank Bhd, CIMB Niaga di Indonesia serta CIMB Thai di Thailand.
Katanya, dana akan menyediakan sokongan kewangan kepada syarikat Jepun dan juga syarikat tempatan yang mempunyai hubungan perniagaan dengan syarikat Jepun di negara Asean.
“Kami percaya, kemudahan pembiayaan JBIC Asean ini bertepatan masanya kerana banyak syarikat PKS di rantau ini mencari peluang bagi memperluaskan operasi dan pelbagai langkah diambil kerajaan meningkatkan pertumbuhan ekonomi yang dipacu oleh sektor swasta,” katanya selepas pemeteraian perjanjian antara CIMB Group dan JBIC di Kuala Lumpur, semalam.
Nazir mewakili CIMB Group manakala JBIC oleh Pegawai Eksekutifnya bagi Asia dan Ocenia, Ryuichi Kaga. Hadir sama, Duta Jepun ke Malaysia, Masahiko Horie; Pengarah Presiden PT Bank CIMB Niaga Tbk, Arwsin Rasyid dan Presiden merangkap Ketua Eksekutif CIMB Thai, Subhak Siwaraksa.
JBIC, adalah cabang antarabangsa Japan Finance Corporation (JFC) iaitu institusi kewangan berasaskan polisi Jepun yang melaksanakan aktiviti pelaburan, pembiayaan dan jaminan operasi kepada institusi kewangan sektor swasta.
Nazir berkata, pihaknya menyasar menyalurkan dua pertiga daripada pinjaman berjumlah AS$300 juta itu ke Indonesia susulan prospek pertumbuhan pinjaman lebih baik di negara itu.
Katanya, walaupun pembiayaan itu adalah untuk semua sektor tetapi ia bukan bagi membiayai projek besar kerana had pinjaman yang diberikan bagi setiap syarikat adalah kira-kira AS$25 juta dengan tempoh pinjaman selama tujuh tahun.
“Menerusi kerjasama dengan CIMB Group, JBIC mempunyai kecekapan akses kepada syarikat berkaitan Jepun di Asean, khususnya di Malaysia, Indonesia dan Thailand menerusi rangkaian cawangan perbankan runcit terbesar kami,” katanya.
CIMB Group Holdings Bhd memperoleh dana sebanyak AS$300 juta (RM987 juta) daripada Japan Bank of International Cooperation (JBIC) untuk disalurkan sebagai pembiayaan kepada syarikat perusahaan kecil dan sederhana (PKS) di negara Asean.
Dana itu adalah yang terbesar disediakan JBIC kepada institusi kewangan komersial serta yang pertama disalurkan bagi membantu syarikat PKS menerusi kumpulan perbankan tunggal. Ketua Eksekutif CIMB Group, Datuk Seri Nazir Razak, berkata menerusi perjanjian selama sembilan tahun itu, dana berkenaan akan disalurkan menerusi cabang kumpulan CIMB iaitu CIMB Bank Bhd, CIMB Niaga di Indonesia serta CIMB Thai di Thailand.
Katanya, dana akan menyediakan sokongan kewangan kepada syarikat Jepun dan juga syarikat tempatan yang mempunyai hubungan perniagaan dengan syarikat Jepun di negara Asean.
“Kami percaya, kemudahan pembiayaan JBIC Asean ini bertepatan masanya kerana banyak syarikat PKS di rantau ini mencari peluang bagi memperluaskan operasi dan pelbagai langkah diambil kerajaan meningkatkan pertumbuhan ekonomi yang dipacu oleh sektor swasta,” katanya selepas pemeteraian perjanjian antara CIMB Group dan JBIC di Kuala Lumpur, semalam.
Nazir mewakili CIMB Group manakala JBIC oleh Pegawai Eksekutifnya bagi Asia dan Ocenia, Ryuichi Kaga. Hadir sama, Duta Jepun ke Malaysia, Masahiko Horie; Pengarah Presiden PT Bank CIMB Niaga Tbk, Arwsin Rasyid dan Presiden merangkap Ketua Eksekutif CIMB Thai, Subhak Siwaraksa.
JBIC, adalah cabang antarabangsa Japan Finance Corporation (JFC) iaitu institusi kewangan berasaskan polisi Jepun yang melaksanakan aktiviti pelaburan, pembiayaan dan jaminan operasi kepada institusi kewangan sektor swasta.
Nazir berkata, pihaknya menyasar menyalurkan dua pertiga daripada pinjaman berjumlah AS$300 juta itu ke Indonesia susulan prospek pertumbuhan pinjaman lebih baik di negara itu.
Katanya, walaupun pembiayaan itu adalah untuk semua sektor tetapi ia bukan bagi membiayai projek besar kerana had pinjaman yang diberikan bagi setiap syarikat adalah kira-kira AS$25 juta dengan tempoh pinjaman selama tujuh tahun.
“Menerusi kerjasama dengan CIMB Group, JBIC mempunyai kecekapan akses kepada syarikat berkaitan Jepun di Asean, khususnya di Malaysia, Indonesia dan Thailand menerusi rangkaian cawangan perbankan runcit terbesar kami,” katanya.
CIMB bakal masuk Vietnam, Kemboja
CIMB Group Holding Bhd sudah mengemukakan permohonan bagi mendapatkan lesen perbankan di Vietnam serta Kemboja.
Ketua Eksekutif Kumpulannya, Datuk Seri Nazir Razak, berkata usaha itu adalah antara strategi kumpulan perbankan tempatan kedua terbesar itu dalam memperkukuh lagi operasinya di rantau ini selepas Indonesia dan Thailand.
“Apa yang boleh dinyatakan ketika ini, kami sudah mengemukakan permohonan lesen perbankan di Vietnam dan Kemboja. Bagaimanapun, CIMB juga mempunyai perancangan dan strategi bagi pasaran negara Asean yang lain,” katanya pada sidang media selepas pemeteraian perjanjian pinjaman jangka panjang antara CIMB Group dan Japan Bank of International Cooperation (JBIC) di Kuala Lumpur, semalam. Beliau bagaimanapun enggan mendedahkan maklumat lanjut berhubung perkara itu.
Ketua Eksekutif Kumpulannya, Datuk Seri Nazir Razak, berkata usaha itu adalah antara strategi kumpulan perbankan tempatan kedua terbesar itu dalam memperkukuh lagi operasinya di rantau ini selepas Indonesia dan Thailand.
“Apa yang boleh dinyatakan ketika ini, kami sudah mengemukakan permohonan lesen perbankan di Vietnam dan Kemboja. Bagaimanapun, CIMB juga mempunyai perancangan dan strategi bagi pasaran negara Asean yang lain,” katanya pada sidang media selepas pemeteraian perjanjian pinjaman jangka panjang antara CIMB Group dan Japan Bank of International Cooperation (JBIC) di Kuala Lumpur, semalam. Beliau bagaimanapun enggan mendedahkan maklumat lanjut berhubung perkara itu.
CIMB to strengthen regional presence
THE country's second largest banking group, CIMB Group Holdings Bhd (1023), has applied for new banking licences in Vietnam and Cambodia in a bid to strengthen its regional presence.
The group already operates in Indonesia, Thailand and Singapore.
"We've applied for new banking licences in Vietnam and Cambodia," group chief executive Datuk Seri Nazir Razak told reporters yesterday when asked if the group planned to expand to other countries.
"That's all for the moment, but CIMB does have strategies for all other Asean markets," he said after formalising an agreement with the Japan Bank for International Cooperation for a US$300 facility (RM984 million) for businesses in the region.
The Malaysian-listed lender, which owns CIMB Thai Bank, has also been eyeing a listing in Thailand and this may happen by mid-June this year, Nazir said.
"The process under the FRS139 accounting standard requires us to announce our first quarter earnings before the submission. That is why the timing is such," he added.
CIMB Thai will remain listed even after the group's dual listing, its chief executive officer Subhak Siwaraksa said.
Nazir also noted that CIMB Group has a strong capital base and would be "comfortable" supplying capital to CIMB Thai and Indonesian banking unit CIMB Niaga if the need arose.
Both units are also capable of funding their growth via bonds, he said.
CIMB Niaga president director Arwin Rasyid said the Indonesian lender planned to sell sub-debt of US$300 million by June to boost capital and pay debt, according to a report yesterday.
CIMB Niaga has US$100 million (RM328 million) of sub-debt maturing this year and US$200 million (RM656 million) next year. The bank is also considering a rights offer, Arwin was reported to have said.
This follows hot on the heels of CIMB Thai's move last week in announcing plans to raise about 9 billion baht (RM910 million) via rights and bonds issues.
Meanwhile, Arwin told reporters in Kuala Lumpur yesterday that he expected CIMB Niaga's loans to expand in the range of 20 per cent or higher this year on the back of strong economic growth in Indonesia. Loans grew 12 per cent last year.
CIMB Niaga is Indonesia's fifth largest lender with 5 per cent market share of loans.
The group already operates in Indonesia, Thailand and Singapore.
"We've applied for new banking licences in Vietnam and Cambodia," group chief executive Datuk Seri Nazir Razak told reporters yesterday when asked if the group planned to expand to other countries.
"That's all for the moment, but CIMB does have strategies for all other Asean markets," he said after formalising an agreement with the Japan Bank for International Cooperation for a US$300 facility (RM984 million) for businesses in the region.
The Malaysian-listed lender, which owns CIMB Thai Bank, has also been eyeing a listing in Thailand and this may happen by mid-June this year, Nazir said.
"The process under the FRS139 accounting standard requires us to announce our first quarter earnings before the submission. That is why the timing is such," he added.
CIMB Thai will remain listed even after the group's dual listing, its chief executive officer Subhak Siwaraksa said.
Nazir also noted that CIMB Group has a strong capital base and would be "comfortable" supplying capital to CIMB Thai and Indonesian banking unit CIMB Niaga if the need arose.
Both units are also capable of funding their growth via bonds, he said.
CIMB Niaga president director Arwin Rasyid said the Indonesian lender planned to sell sub-debt of US$300 million by June to boost capital and pay debt, according to a report yesterday.
CIMB Niaga has US$100 million (RM328 million) of sub-debt maturing this year and US$200 million (RM656 million) next year. The bank is also considering a rights offer, Arwin was reported to have said.
This follows hot on the heels of CIMB Thai's move last week in announcing plans to raise about 9 billion baht (RM910 million) via rights and bonds issues.
Meanwhile, Arwin told reporters in Kuala Lumpur yesterday that he expected CIMB Niaga's loans to expand in the range of 20 per cent or higher this year on the back of strong economic growth in Indonesia. Loans grew 12 per cent last year.
CIMB Niaga is Indonesia's fifth largest lender with 5 per cent market share of loans.
EPF to up overseas investment to 10%
KUALA LUMPUR: The Employees Provident Fund (EPF) plans to increase its overseas investment to 10% over the next one to two years.
Its CEO Tan Sri Azlan Zainol said the focus would be on investing further in equities of public-listed companies.
The EPF’s current overseas investment is at about 6% to 7%, he told a press conference at the opening of the Technical Seminar on High Performance in Social Security by Innovation, Change Management and Risk Management here on Monday, March 29.
The three-day event is being hosted by the International Social Security Association (ISSA) and the EPF.
“We will be increasing investments in Europe, the US, Australia, Singapore, Thailand, Indonesia and Southeast Asia, where we have a current presence,” Azlan stated.
On another note, he said banks in general were receptive to the new scheme to use the balance of the member’s Account Two, as the basis to secure higher loans.
“A member, based on his take home pay, may not be eligible for a higher bank loan to purchase a second property.
“But if the bank has access to the member’s Account Two, which may show a higher balance, it would be encouraged to approve the higher loan.
“Basically, this helps to support the application for a higher loan or increased loan eligibility,” he explained.
Elaborating further, Azlan said banks were currently conducting due diligence on the new scheme and hoped, it would materialise by this year.
The EPF has a total of 12.4 million members of whom 5.8 million are active, with total assets currently at US$108 billion (RM353.2 billion). — Bernama
Its CEO Tan Sri Azlan Zainol said the focus would be on investing further in equities of public-listed companies.
The EPF’s current overseas investment is at about 6% to 7%, he told a press conference at the opening of the Technical Seminar on High Performance in Social Security by Innovation, Change Management and Risk Management here on Monday, March 29.
The three-day event is being hosted by the International Social Security Association (ISSA) and the EPF.
“We will be increasing investments in Europe, the US, Australia, Singapore, Thailand, Indonesia and Southeast Asia, where we have a current presence,” Azlan stated.
On another note, he said banks in general were receptive to the new scheme to use the balance of the member’s Account Two, as the basis to secure higher loans.
“A member, based on his take home pay, may not be eligible for a higher bank loan to purchase a second property.
“But if the bank has access to the member’s Account Two, which may show a higher balance, it would be encouraged to approve the higher loan.
“Basically, this helps to support the application for a higher loan or increased loan eligibility,” he explained.
Elaborating further, Azlan said banks were currently conducting due diligence on the new scheme and hoped, it would materialise by this year.
The EPF has a total of 12.4 million members of whom 5.8 million are active, with total assets currently at US$108 billion (RM353.2 billion). — Bernama
CIMB Research keeps Trading Buy on Bursa
KUALA LUMPUR: CIMB Equities Research is maintaining its Trading Buy call on Bursa Malaysia with a target price of RM10.70.
It said on Monday, March 29 there was was potential upside from retail participation if certain regulatory constraints are removed to help improve retail participation.
"Overall, we remain bullish on the stockmarket and maintain a KLCI target of 1,450 for end-2010. Our projected core EPS growth of 33.6% for FY10 is underpinned by an expected pick-up in velocity from 34% in 2008-09 to 40%.
"We retain our earnings forecasts and target price of RM10.70, pegged to an unchanged P/E of 33x," it said.
CIMB Research also maintained its Trading Buy call due to potential re-rating catalysts of (1) an expected rise in trading value, (2) sustained market sentiment, (3) a rebound in the effective clearing fee rate, and (4) stronger growth of the derivative business.
It said on Monday, March 29 there was was potential upside from retail participation if certain regulatory constraints are removed to help improve retail participation.
"Overall, we remain bullish on the stockmarket and maintain a KLCI target of 1,450 for end-2010. Our projected core EPS growth of 33.6% for FY10 is underpinned by an expected pick-up in velocity from 34% in 2008-09 to 40%.
"We retain our earnings forecasts and target price of RM10.70, pegged to an unchanged P/E of 33x," it said.
CIMB Research also maintained its Trading Buy call due to potential re-rating catalysts of (1) an expected rise in trading value, (2) sustained market sentiment, (3) a rebound in the effective clearing fee rate, and (4) stronger growth of the derivative business.
Update CIMB well capitalised to support overseas units
KUALA LUMPUR: CIMB Group Holdings Bhd will not need to raise capital even if it were to inject equity into its subsidiaries in Indonesia and Thailand, as the Malaysian banking group is well-capitalised, said its group CEO Datuk Seri Nazir Razak.
He said the banking group had a total risk-weighted capital ratio in excess of 15% currently and hence was in a comfortable position to support its overseas subsidiaries PT Bank CIMB Niaga and CIMB Thai Bank pcl.
"There is no issue of CIMB (being) in need of capital or equity capital. The rights issue in CIMB Thai is only RM300 million maximum and similarly, in Indonesia, even if we were to contemplate (a rights issue), the amount will also not be significant.
"Both CIMB Thai and Niaga also have ample capabilities to fund their operations via bonds as opposed to equities," Nazir told reporters after signing a US$300 million (RM981 million) loan facility agreement with Japan Bank of International Cooperation (JBIC) here on Monday, March 29.
Recently, CIMB's Indonesian and Thai subsidiaries announced plans to beef up their capital.
Nazir said CIMB Niaga currently had no plans to raise capital via equity, but would issue US$300 million of subordinated debt papers that was announced last week.
He said discussion on whether CIMB Niaga would require a rights issue was ongoing and whether the subsidiary would make a cash call depended on its growth momentum.
CIMB Niaga president director Arwin Rasyid, who was also at the signing ceremony, said the bank would expand its branch network to capture higher loans growth this year.
"For this year, the central bank of Indonesia has projected the loan growth industry average to be over 20%, and we will see CIMB Niaga achieving along that range or even higher," he said.
For CIMB Thai, the bank had last week announced that it would raise three billion baht via a two-for-nine rights issue at one baht (10.1 sen) each and sell up to six billion baht of subordinated debt papers.
The bank is also seeking shareholders' approval to divest its 99.99% stake in wholly owned bad bank unit Sathorn Asset Management to its parent CIMB Group for about RM23 million.
CIMB Thai president Subhak Siwaraksa said as part of the bank's restructuring exercise, it would divest 99.99% of mutual fund management company BT Asset Management Co Ltd to CIMB-Principal Asset Management Bhd and sell a 20% stake in Worldclass Rent A Car Co to CIMB Group for a total of RM20 million to RM30 million. Nazir said CIMB Thai would be listed in June this year.
Later, Subhak told The Edge Financial Daily that upon receiving the central bank of Thailand's and shareholders' approval, the bank would sell the shares of the bad bank unit to CIMB Group.
After the stake sale, CIMB Thai could potentially sell to Sathorn non-performing loans (NPLs) with a nominal value of RM500 million but the book value could be between RM200 million and RM300 million, he said.
Subhak added that CIMB Group would then inject additional capital into Sathorn to enable the bad bank unit to acquire more NPLs from CIMB Thai.
"From CIMB Thai's perspective, it (Sathorn) will be de-consolidated from the bank. By doing so, the gross NPLs in our books will be reduced to not more than 5% from 10% currently. CIMB Thai will have one of the lowest NPL ratios among Thai banks," he said.
Meanwhile, the US$300 million JBIC Asean Facility is the largest JBIC facility provided to a commercial bank and the first to be channelled directly to businesses across the region via a single banking group.
Nazir said the loans, which are mainly for small and medium businesses, would be channelled to Japanese and domestic companies that have dealings with Japanese firms in Asean countries via CIMB Bank, CIMB Niaga and CIMB Thai.
JBIC resident executive officer for Asia and Oceania Ryuichi Kaga said CIMB Group's regional presence was the driving factor behind JBIC's decision to partner the group for the loan facility.
On another matter, Nazir declined to comment on a news report that said CIMB Investment Bank pitched for advisory, placement and underwriting work for the initial public offering of Bumi Armada Bhd, but "confirmed" that he was interested in "nice" transactions.
He said the banking group had a total risk-weighted capital ratio in excess of 15% currently and hence was in a comfortable position to support its overseas subsidiaries PT Bank CIMB Niaga and CIMB Thai Bank pcl.
"There is no issue of CIMB (being) in need of capital or equity capital. The rights issue in CIMB Thai is only RM300 million maximum and similarly, in Indonesia, even if we were to contemplate (a rights issue), the amount will also not be significant.
"Both CIMB Thai and Niaga also have ample capabilities to fund their operations via bonds as opposed to equities," Nazir told reporters after signing a US$300 million (RM981 million) loan facility agreement with Japan Bank of International Cooperation (JBIC) here on Monday, March 29.
Recently, CIMB's Indonesian and Thai subsidiaries announced plans to beef up their capital.
Nazir said CIMB Niaga currently had no plans to raise capital via equity, but would issue US$300 million of subordinated debt papers that was announced last week.
He said discussion on whether CIMB Niaga would require a rights issue was ongoing and whether the subsidiary would make a cash call depended on its growth momentum.
CIMB Niaga president director Arwin Rasyid, who was also at the signing ceremony, said the bank would expand its branch network to capture higher loans growth this year.
"For this year, the central bank of Indonesia has projected the loan growth industry average to be over 20%, and we will see CIMB Niaga achieving along that range or even higher," he said.
For CIMB Thai, the bank had last week announced that it would raise three billion baht via a two-for-nine rights issue at one baht (10.1 sen) each and sell up to six billion baht of subordinated debt papers.
The bank is also seeking shareholders' approval to divest its 99.99% stake in wholly owned bad bank unit Sathorn Asset Management to its parent CIMB Group for about RM23 million.
CIMB Thai president Subhak Siwaraksa said as part of the bank's restructuring exercise, it would divest 99.99% of mutual fund management company BT Asset Management Co Ltd to CIMB-Principal Asset Management Bhd and sell a 20% stake in Worldclass Rent A Car Co to CIMB Group for a total of RM20 million to RM30 million. Nazir said CIMB Thai would be listed in June this year.
Later, Subhak told The Edge Financial Daily that upon receiving the central bank of Thailand's and shareholders' approval, the bank would sell the shares of the bad bank unit to CIMB Group.
After the stake sale, CIMB Thai could potentially sell to Sathorn non-performing loans (NPLs) with a nominal value of RM500 million but the book value could be between RM200 million and RM300 million, he said.
Subhak added that CIMB Group would then inject additional capital into Sathorn to enable the bad bank unit to acquire more NPLs from CIMB Thai.
"From CIMB Thai's perspective, it (Sathorn) will be de-consolidated from the bank. By doing so, the gross NPLs in our books will be reduced to not more than 5% from 10% currently. CIMB Thai will have one of the lowest NPL ratios among Thai banks," he said.
Meanwhile, the US$300 million JBIC Asean Facility is the largest JBIC facility provided to a commercial bank and the first to be channelled directly to businesses across the region via a single banking group.
Nazir said the loans, which are mainly for small and medium businesses, would be channelled to Japanese and domestic companies that have dealings with Japanese firms in Asean countries via CIMB Bank, CIMB Niaga and CIMB Thai.
JBIC resident executive officer for Asia and Oceania Ryuichi Kaga said CIMB Group's regional presence was the driving factor behind JBIC's decision to partner the group for the loan facility.
On another matter, Nazir declined to comment on a news report that said CIMB Investment Bank pitched for advisory, placement and underwriting work for the initial public offering of Bumi Armada Bhd, but "confirmed" that he was interested in "nice" transactions.
March 29, 2010
Bursa Malaysia meningkat kukuh
Saham pengeluar sarung tangan getah, teknologi terajui kaunter paling untung
HARGA saham di Bursa Malaysia meningkat kukuh minggu lalu berikutan aliran berita positif dengan saham pengeluar sarung tangan getah dan teknologi menerajui saham paling untung atas tinjauan ekonomi yang lebih baik dan optimis menjelang Invest Malaysia yang mana kerajaan akan mengumumkan Model Ekonomi Baru (MEB) pada persidangan itu.
Indeks Komposit Kuala Lumpur FTSE Bursa Malaysia (FBM KLCI) melonjak 18.54 mata atau 1.4 peratus minggu lalu untuk ditutup pada 1,315.14, dengan CIMB menokok 56 sen, Sime Darby (+24 sen), Maybank (+18 sen) dan TM (+20 sen) mewakili hampir empat perlima daripada keuntungan indeks. Purata dagangan dan nilai dagangan harian meningkat kepada paras tertinggi dalam tempoh dua bulan iaitu 1.04 bilion saham bernilai RM1.6 bilion, berbanding 687.4 juta saham bernilai RM1.14 bilion, minggu sebelumnya.
Pasaran saham mendapat satu lagi jaminan tambahan minggu lalu apabila Bank Negara Malaysia menyatakan ekonomi Malaysia berada dalam landasan pertumbuhan kukuh dan dijangka berkembang antara 4.5 peratus hingga 5.5 peratus tahun ini, yang mana ia adalah lebih tinggi daripada unjuran awal kerajaan sebelum ini.
Pertumbuhan itu akan dipacu faktor pemulihan yang kukuh dalam permintaan luaran dan domestik.
Pengeksport yang terbabit dalam sektor pembuatan seperti teknologi dan sarung tangan mendapat manfaat daripada perkembangan ini dan hasil daripada itu, harga saham mereka terus meningkat.
Manfaat terbaru yang diterima adalah apabila kerajaan Amerika Syarikat (AS) melakukan pembaharuan dalam sektor kesihatan di negara itu.
Data perdagangan Malaysia, laporan kajian ISM bagi sektor pembuatan di AS dan data tempahan kilang yang akan diumumkan minggu ini dijangka dapat mengekalkan minat pelabur di dalam sektor berorientasikan eksport.
Tawaran Syarikat Pengeluar Air Selangor Holdings Bhd bagi membeli aset air di Selangor pada harga RM10.8 bilion minggu lalu yang telah mengakhiri rundingan yang begitu lama dan seperti sudah hampir menemui jalan buntu adalah satu kejutan.
Sementara itu, persidangan Invest Malaysia yang begitu dinanti-nantikan sudah semakin dekat dan pasaran menjangkakan Perdana Menteri akan mengumumkan satu pendekatan kukuh bagi memacu ekonomi Malaysia pada masa depan.
Persoalan besar sekarang adalah seberapa berani dan terperincinya pengumuman itu memandangkan adanya tekanan berterusan daripada pihak NGO.
Tanpa mengira apa yang akan diketahui kelak, FBM KLCI dijangka terus meningkat minggu ini berdasarkan pembaharuan yang telah beliau lakukan sejak mengambil alih tampuk pemerintahan negara.
Selain mengetengahkan sektor perkhidmatan untuk menjadi model pertumbuhan baru, pasaran juga menjangkakan Perdana Menteri akan membuat pengumuman berhubung perkara besar, seperti semakan semula tarif elektrik dan melonggarkan beberapa peraturan yang mengganggu pertumbuhan pasaran modal.
Untuk minggu ini, dijangkakan pengeluar sarung tangan getah seperti Adventa, Latexx dan Supermax terus meraih keuntungan di atas harapan pendapatan yang akan terus berkembang berikutan permintaan lebih tinggi daripada sektor kesihatan di AS.
Saham Kinsteel, UEM Land, Dialog, Kencana, SapuraCrest, RCE Capital, 3A Resources, Leader Universal dan Land & General dijangka meningkat lebih tinggi atas faktor permainan pasaran yang membabitkan perubahan tumpuan daripada satu sektor ke sektor lain.
HARGA saham di Bursa Malaysia meningkat kukuh minggu lalu berikutan aliran berita positif dengan saham pengeluar sarung tangan getah dan teknologi menerajui saham paling untung atas tinjauan ekonomi yang lebih baik dan optimis menjelang Invest Malaysia yang mana kerajaan akan mengumumkan Model Ekonomi Baru (MEB) pada persidangan itu.
Indeks Komposit Kuala Lumpur FTSE Bursa Malaysia (FBM KLCI) melonjak 18.54 mata atau 1.4 peratus minggu lalu untuk ditutup pada 1,315.14, dengan CIMB menokok 56 sen, Sime Darby (+24 sen), Maybank (+18 sen) dan TM (+20 sen) mewakili hampir empat perlima daripada keuntungan indeks. Purata dagangan dan nilai dagangan harian meningkat kepada paras tertinggi dalam tempoh dua bulan iaitu 1.04 bilion saham bernilai RM1.6 bilion, berbanding 687.4 juta saham bernilai RM1.14 bilion, minggu sebelumnya.
Pasaran saham mendapat satu lagi jaminan tambahan minggu lalu apabila Bank Negara Malaysia menyatakan ekonomi Malaysia berada dalam landasan pertumbuhan kukuh dan dijangka berkembang antara 4.5 peratus hingga 5.5 peratus tahun ini, yang mana ia adalah lebih tinggi daripada unjuran awal kerajaan sebelum ini.
Pertumbuhan itu akan dipacu faktor pemulihan yang kukuh dalam permintaan luaran dan domestik.
Pengeksport yang terbabit dalam sektor pembuatan seperti teknologi dan sarung tangan mendapat manfaat daripada perkembangan ini dan hasil daripada itu, harga saham mereka terus meningkat.
Manfaat terbaru yang diterima adalah apabila kerajaan Amerika Syarikat (AS) melakukan pembaharuan dalam sektor kesihatan di negara itu.
Data perdagangan Malaysia, laporan kajian ISM bagi sektor pembuatan di AS dan data tempahan kilang yang akan diumumkan minggu ini dijangka dapat mengekalkan minat pelabur di dalam sektor berorientasikan eksport.
Tawaran Syarikat Pengeluar Air Selangor Holdings Bhd bagi membeli aset air di Selangor pada harga RM10.8 bilion minggu lalu yang telah mengakhiri rundingan yang begitu lama dan seperti sudah hampir menemui jalan buntu adalah satu kejutan.
Sementara itu, persidangan Invest Malaysia yang begitu dinanti-nantikan sudah semakin dekat dan pasaran menjangkakan Perdana Menteri akan mengumumkan satu pendekatan kukuh bagi memacu ekonomi Malaysia pada masa depan.
Persoalan besar sekarang adalah seberapa berani dan terperincinya pengumuman itu memandangkan adanya tekanan berterusan daripada pihak NGO.
Tanpa mengira apa yang akan diketahui kelak, FBM KLCI dijangka terus meningkat minggu ini berdasarkan pembaharuan yang telah beliau lakukan sejak mengambil alih tampuk pemerintahan negara.
Selain mengetengahkan sektor perkhidmatan untuk menjadi model pertumbuhan baru, pasaran juga menjangkakan Perdana Menteri akan membuat pengumuman berhubung perkara besar, seperti semakan semula tarif elektrik dan melonggarkan beberapa peraturan yang mengganggu pertumbuhan pasaran modal.
Untuk minggu ini, dijangkakan pengeluar sarung tangan getah seperti Adventa, Latexx dan Supermax terus meraih keuntungan di atas harapan pendapatan yang akan terus berkembang berikutan permintaan lebih tinggi daripada sektor kesihatan di AS.
Saham Kinsteel, UEM Land, Dialog, Kencana, SapuraCrest, RCE Capital, 3A Resources, Leader Universal dan Land & General dijangka meningkat lebih tinggi atas faktor permainan pasaran yang membabitkan perubahan tumpuan daripada satu sektor ke sektor lain.
Harga saham diniagakan tinggi
KUALA LUMPUR 28 Mac - Harga-harga saham di Bursa Malaysia dijangka diniagakan tinggi minggu depan dengan sentimen pasaran dijangka mendapat rangsangan susulan pelancaran Model Ekonomi Baru (MEB), kata peniaga.
Perdana Menteri Datuk Seri Najib Tun Razak akan mengumumkan inisiatif dasar ekonomi bagi merangsang daya saing negara dan bergerak ke arah model berpendapatan tinggi.
Penganalisis kanan teknikal TA Securities, Stephen Soo berkata, pelabur menjangkakan pengumuman MEB akan menaikkan indeks utama untuk memecah paras 1,325 mata. Maybank Investment Bank, dalam laporan kajiannya, menjangkakan aktiviti jual beli secara bergilir-gilir di pasaran sehingga 31 Mac.
Bagi minggu yang baru berakhir, Bursa Malaysia meningkat berikutan keuntungan yang dicatatkan oleh saham berwajaran tinggi dan saham berharga rendah, dirangsang oleh unjuran ekonomi positif oleh Bank Negara Malaysia.
Ia berkata ekonomi diunjur tumbuh antara 4.5 dan 5.5 peratus tahun ini. Mengikut asas mingguan, FBM KLCI menokok 18.54 mata kepada 1,315.14 berbanding 1,296.60 Jumaat lepas. Indeks Kewangan menambah 241.2 mata kepada 11,738.93 berbanding 11,497.73 sebelumnya.
Indeks Perladangan meningkat 57.73 mata kepada 6,410.88 daripada 6,353.15 minggu lepas. Indeks Perusahaan menambah 47.02 mata kepada 2,664.93 berbanding 2,617.91 Jumaat lepas. Indeks FBM Emas menokok 188.35 mata kepada 8,911.51 daripada 8,723.16 sebelumnya.
Indeks FBM70 menambah 309.44 mata kepada 8,836.03 pada Jumaat berbanding 8,526.59 Jumaat sebelumnya. Indeks FBMAce melonjak 31.46 mata kepada 4,212.5 Jumaat ini berbanding 4,181.04 minggu lepas. Jumlah dagangan minggu ini meningkat kepada 5.214 bilion saham bernilai RM7.983 bilion berbanding 3.437 bilion saham bernilai RM5.716 bilion Jumaat sebelumnya.
Jumlah dagangan di Pasaran Utama meningkat kepada 4.432 bilion unit bernilai RM7.777 bilion daripada 2.963 bilion unit bernilai RM5.565 bilion minggu lepas. Jumlah dagangan di Pasaran ACE meningkat kepada 370.626 juta saham bernilai RM54.73 juta berbanding 256.169 juta saham bernilai RM54.041 juta sebelumnya.
Waran meningkat kepada 296.865 juta unit bernilai RM59.715 juta berbanding 128.729 juta unit bernilai RM20.251 juta minggu lepas. - BERNAMA
Perdana Menteri Datuk Seri Najib Tun Razak akan mengumumkan inisiatif dasar ekonomi bagi merangsang daya saing negara dan bergerak ke arah model berpendapatan tinggi.
Penganalisis kanan teknikal TA Securities, Stephen Soo berkata, pelabur menjangkakan pengumuman MEB akan menaikkan indeks utama untuk memecah paras 1,325 mata. Maybank Investment Bank, dalam laporan kajiannya, menjangkakan aktiviti jual beli secara bergilir-gilir di pasaran sehingga 31 Mac.
Bagi minggu yang baru berakhir, Bursa Malaysia meningkat berikutan keuntungan yang dicatatkan oleh saham berwajaran tinggi dan saham berharga rendah, dirangsang oleh unjuran ekonomi positif oleh Bank Negara Malaysia.
Ia berkata ekonomi diunjur tumbuh antara 4.5 dan 5.5 peratus tahun ini. Mengikut asas mingguan, FBM KLCI menokok 18.54 mata kepada 1,315.14 berbanding 1,296.60 Jumaat lepas. Indeks Kewangan menambah 241.2 mata kepada 11,738.93 berbanding 11,497.73 sebelumnya.
Indeks Perladangan meningkat 57.73 mata kepada 6,410.88 daripada 6,353.15 minggu lepas. Indeks Perusahaan menambah 47.02 mata kepada 2,664.93 berbanding 2,617.91 Jumaat lepas. Indeks FBM Emas menokok 188.35 mata kepada 8,911.51 daripada 8,723.16 sebelumnya.
Indeks FBM70 menambah 309.44 mata kepada 8,836.03 pada Jumaat berbanding 8,526.59 Jumaat sebelumnya. Indeks FBMAce melonjak 31.46 mata kepada 4,212.5 Jumaat ini berbanding 4,181.04 minggu lepas. Jumlah dagangan minggu ini meningkat kepada 5.214 bilion saham bernilai RM7.983 bilion berbanding 3.437 bilion saham bernilai RM5.716 bilion Jumaat sebelumnya.
Jumlah dagangan di Pasaran Utama meningkat kepada 4.432 bilion unit bernilai RM7.777 bilion daripada 2.963 bilion unit bernilai RM5.565 bilion minggu lepas. Jumlah dagangan di Pasaran ACE meningkat kepada 370.626 juta saham bernilai RM54.73 juta berbanding 256.169 juta saham bernilai RM54.041 juta sebelumnya.
Waran meningkat kepada 296.865 juta unit bernilai RM59.715 juta berbanding 128.729 juta unit bernilai RM20.251 juta minggu lepas. - BERNAMA
Dubai World debt plan may have downside
DUBAI: Dubai World's debt-restructuring plan may be "negative" for its bank creditors because repayments will be funded by asset sales and dividends, JPMorgan Chase & Co said.
Dubai World, a state-owned holding company, is asking creditors to wait as long as eight years before they receive all their money back as part of its US$23.5 billion (US$1 = RM3.31) debt reorganisation announced last week.
"There is no mention of a government repayment guarantee for Dubai World's bank creditors," Zafar Nazim, a London-based analyst at the bank, wrote in a report dated March 25. "The government intends to inject only US$1.5 billion of cash into Dubai World to support its creditors and working capital commitments. In essence, Dubai World's creditors will be relying upon assets sales and dividends."
Creditors to Dubai World's real-estate arm, Nakheel PJSC, will be asked to restructure their loans at commercial rates, and trade creditors will be offered a cash payment and a tradable security. The company's Islamic bonds, or sukuk, due in 2010 and 2011 will be paid on maturity if the proposal receives enough support from creditors.
Dubai's benchmark index surged 4.3 per cent on March 25, the most since December 14, after the plan was announced, while Nakheel's US$750 million Islamic bond maturing in January gained 48 per cent to 96 cents on the dollar, according to prices on Bloomberg.
"We would be cautious on indiscriminately extending the potential positive outcome for Nakheel bonds to other Dubai Inc entities," the report said. "The government has not explicitly ruled out restructuring other Dubai Inc entities, and continues to distinguish between sovereign and non-sovereign obligations."
Dubai, the second biggest of seven states that make up the United Arab Emirates, and its state-owned companies ran up US$80 billion in debt through the end of 2008 to transform the sheikhdom into a tourism, trade and financial hub. The International Monetary Fund estimates Dubai has outstanding loans of US$109.3 billion. The global credit crunch in late 2008 hampered Dubai-based companies' ability to raise loans, prompting a 50 percent plunge in property prices.
JPMorgan upgraded its recommendations to "overweight" from "neutral" for Nakheel's 2011 bonds. The bank initiated its coverage for Jebel Ali Free Zone, an industrial park owned by Dubai World, with a "sell" recommendation on its 2012 sukuk. - Bloomberg
Dubai World, a state-owned holding company, is asking creditors to wait as long as eight years before they receive all their money back as part of its US$23.5 billion (US$1 = RM3.31) debt reorganisation announced last week.
"There is no mention of a government repayment guarantee for Dubai World's bank creditors," Zafar Nazim, a London-based analyst at the bank, wrote in a report dated March 25. "The government intends to inject only US$1.5 billion of cash into Dubai World to support its creditors and working capital commitments. In essence, Dubai World's creditors will be relying upon assets sales and dividends."
Creditors to Dubai World's real-estate arm, Nakheel PJSC, will be asked to restructure their loans at commercial rates, and trade creditors will be offered a cash payment and a tradable security. The company's Islamic bonds, or sukuk, due in 2010 and 2011 will be paid on maturity if the proposal receives enough support from creditors.
Dubai's benchmark index surged 4.3 per cent on March 25, the most since December 14, after the plan was announced, while Nakheel's US$750 million Islamic bond maturing in January gained 48 per cent to 96 cents on the dollar, according to prices on Bloomberg.
"We would be cautious on indiscriminately extending the potential positive outcome for Nakheel bonds to other Dubai Inc entities," the report said. "The government has not explicitly ruled out restructuring other Dubai Inc entities, and continues to distinguish between sovereign and non-sovereign obligations."
Dubai, the second biggest of seven states that make up the United Arab Emirates, and its state-owned companies ran up US$80 billion in debt through the end of 2008 to transform the sheikhdom into a tourism, trade and financial hub. The International Monetary Fund estimates Dubai has outstanding loans of US$109.3 billion. The global credit crunch in late 2008 hampered Dubai-based companies' ability to raise loans, prompting a 50 percent plunge in property prices.
JPMorgan upgraded its recommendations to "overweight" from "neutral" for Nakheel's 2011 bonds. The bank initiated its coverage for Jebel Ali Free Zone, an industrial park owned by Dubai World, with a "sell" recommendation on its 2012 sukuk. - Bloomberg
Further Bursa upside likely early in the week
Investors can expect rubber glove makers Adventa, Latexx and Supermax to extend gains while Kinsteel, UEM Land, Dialog, Kencana, SapuraCrest, Leader Universal and Land & General may rise further, says a research head
Bursa Malaysia shares staged strong rebound last week on positive news flow with rubber glove makers and technology stocks leading gains, given the bullish economic outlook and optimism ahead of the Invest Malaysia conference when the New Economic Model will be announced by the government.
The blue-chip barometer FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) bounced back 18.54 points or 1.4 per cent last week to close at 1,315.14, with CIMB (+56 sen), Sime Darby (+24 sen), Maybank (+18 sen) and TM (+ 20sen) representing almost four-fifth of the index's gain. Daily average traded volume and value surged to a two-month high of 1.04 billion shares worth RM1.6 billion, compared with the 687.4 million shares and RM1.14 billion average the previous week.
The market received further reassurance last week after Bank Negara Malaysia said the economy is on a firm recovery tract and projected a robust economic growth of 4.5 per cent to 5.5 per cent, which is much higher than earlier government projection. The growth would be led by a strong rebound in external and domestic demand. Exporters in the manufacturing sector like technology and glove plays benefitted as their share prices continued to rise as a result, with the latter benefitting from a health reform measure in the US as well. Malaysia's trade numbers, the US ISM manufacturing survey and factory orders that will be released this week are expected to sustain interest in the export-oriented sectors.
The much anticipated Invest Malaysia conference is around the corner and the market is anticipating the Prime Minister to announce solid measures to drive Malaysia's economic growth. The big question is how bold and detailed will his revelation be.
Irrespective of what will transpire, the FBM KLCI is expected to charge ahead this week based on his past reformist measures since he took over. Apart from setting the stage for the services sector to become the new growth model, the market is also anticipating him to make announcements on big ticket items, impending electricity tariff review and relaxation of some rules in the capital market that stifle growth.
With leaders of the 16 Euro region agreeing on a plan to seek IMF's help and provide bilateral loans at market interest rates to aid debt-stricken Greece, external risks have subsided a bit. In fact, the outcome of US factory orders, ISM Manufacturing, non-farm payrolls and vehicle sales data that will be released this week are expected to be supportive of further expansion in global equity markets. Thus, later part of this week could be a good time to sell into a rally and lock in the profits.
Technical outlook
Spot month March KLCI futures contract traded on Bursa Malaysia Derivatives Bhd climbed 23 points, or 1.8 per cent week-on-week to 1,321, improving significantly to a 5.9-point premium to the cash index, against the 1.4-point premium the previous Friday.
The domestic stock market ended lower last Monday, dragged down by weaker regional markets after the surprise interest rate hike in India raised concern that central banks in the region will introduce more steps to tackle inflationary pressure. However, stocks bounced back sharply the next day, with rubber glove makers leading the rise on optimism the passage of a US healthcare bill by President Barack Obama will boost the demand for rubber gloves.
Stocks extended recovery on Wednesday, with technology stocks leading gains in line with regional peers due to signs of a robust rebound in global demand for semiconductors. Despite a mixed showing on regional markets the following day due to concern over European sovereign debt, local stocks extended gains with lower liners leading gains on increased rotational trading plays while blue chips consolidate.
The market sustained gains for a fourth straight session on Friday, lifted by hopes next week's Invest Malaysia conference will see the government proposing more liberal measures.
The daily slow stochastics indicator for the KLCI is now in the overbought zone after triggering a buy signal last Tuesday (Chart 1), while the weekly indicator has levelled in the overbought area. The 14-day and 14-week Relative Strength Index (RSI) indicators bore higher readings of 62 and 67 respectively, neutralising last week's bearish divergence signals.
On the other hand, the daily Moving Average Convergence Divergence (MACD) trend indicator has re-hooked up and is set to trigger a "buy" signal, strengthened by a similar hook-up on the weekly MACD indicator. On the 14-day Directional Movement Index (DMI) trend indicator, the +DI and -DI lines expanded outwards to signal stronger up-trend ahead, as shown by the rising ADX line.
Conclusion
While momentum indicators reflected overbought condition for the KLCI, trend indicators are reversing their bearish signals, with the daily MACD set to trigger a "buy" on further strength. As such, investors can expect further upside early this week ahead of the Invest Malaysia conference tomorrow and Wednesday, before profit-taking and selling interest which is likely to increase by the later part of the week given the sell-on-fact traders mentality.
Note that last week the index managed to hold above 1,292, the 38.2 per cent Fibonacci Retracement (FR) level of the 1,224 trough to 1,334 peak, before bouncing back up for a strong V-shape recovery. The index's strength in sustaining above 1,308, the 23.6 per cent FR level, will improve upside bias toward 1,325 and subsequently the two-year peak of 1,334 of 11 March this week. A breakout above this peak, especially backed by strong follow-through buying, will fuel upside toward our immediate upside target of 1,354, representing the 76.4 per cent FR of the bearish trend from 1,525 all-time high to the 801 low. Immediate support is now upgraded to 1,308, with 1,300 as a stronger base.
For this week, expect rubber glove makers Adventa, Latexx and Supermax to extend gains on hopes earnings will expand further with passage of the US healthcare bill boosting demand, while Kinsteel, UEM Land, Dialog, Kencana, SapuraCrest, RCE Capital, 3A Resources, Leader Universal and Land & General may appreciate further on keen rotational plays.
The subject expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.
Bursa Malaysia shares staged strong rebound last week on positive news flow with rubber glove makers and technology stocks leading gains, given the bullish economic outlook and optimism ahead of the Invest Malaysia conference when the New Economic Model will be announced by the government.
The blue-chip barometer FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) bounced back 18.54 points or 1.4 per cent last week to close at 1,315.14, with CIMB (+56 sen), Sime Darby (+24 sen), Maybank (+18 sen) and TM (+ 20sen) representing almost four-fifth of the index's gain. Daily average traded volume and value surged to a two-month high of 1.04 billion shares worth RM1.6 billion, compared with the 687.4 million shares and RM1.14 billion average the previous week.
The market received further reassurance last week after Bank Negara Malaysia said the economy is on a firm recovery tract and projected a robust economic growth of 4.5 per cent to 5.5 per cent, which is much higher than earlier government projection. The growth would be led by a strong rebound in external and domestic demand. Exporters in the manufacturing sector like technology and glove plays benefitted as their share prices continued to rise as a result, with the latter benefitting from a health reform measure in the US as well. Malaysia's trade numbers, the US ISM manufacturing survey and factory orders that will be released this week are expected to sustain interest in the export-oriented sectors.
The much anticipated Invest Malaysia conference is around the corner and the market is anticipating the Prime Minister to announce solid measures to drive Malaysia's economic growth. The big question is how bold and detailed will his revelation be.
Irrespective of what will transpire, the FBM KLCI is expected to charge ahead this week based on his past reformist measures since he took over. Apart from setting the stage for the services sector to become the new growth model, the market is also anticipating him to make announcements on big ticket items, impending electricity tariff review and relaxation of some rules in the capital market that stifle growth.
With leaders of the 16 Euro region agreeing on a plan to seek IMF's help and provide bilateral loans at market interest rates to aid debt-stricken Greece, external risks have subsided a bit. In fact, the outcome of US factory orders, ISM Manufacturing, non-farm payrolls and vehicle sales data that will be released this week are expected to be supportive of further expansion in global equity markets. Thus, later part of this week could be a good time to sell into a rally and lock in the profits.
Technical outlook
Spot month March KLCI futures contract traded on Bursa Malaysia Derivatives Bhd climbed 23 points, or 1.8 per cent week-on-week to 1,321, improving significantly to a 5.9-point premium to the cash index, against the 1.4-point premium the previous Friday.
The domestic stock market ended lower last Monday, dragged down by weaker regional markets after the surprise interest rate hike in India raised concern that central banks in the region will introduce more steps to tackle inflationary pressure. However, stocks bounced back sharply the next day, with rubber glove makers leading the rise on optimism the passage of a US healthcare bill by President Barack Obama will boost the demand for rubber gloves.
Stocks extended recovery on Wednesday, with technology stocks leading gains in line with regional peers due to signs of a robust rebound in global demand for semiconductors. Despite a mixed showing on regional markets the following day due to concern over European sovereign debt, local stocks extended gains with lower liners leading gains on increased rotational trading plays while blue chips consolidate.
The market sustained gains for a fourth straight session on Friday, lifted by hopes next week's Invest Malaysia conference will see the government proposing more liberal measures.
The daily slow stochastics indicator for the KLCI is now in the overbought zone after triggering a buy signal last Tuesday (Chart 1), while the weekly indicator has levelled in the overbought area. The 14-day and 14-week Relative Strength Index (RSI) indicators bore higher readings of 62 and 67 respectively, neutralising last week's bearish divergence signals.
On the other hand, the daily Moving Average Convergence Divergence (MACD) trend indicator has re-hooked up and is set to trigger a "buy" signal, strengthened by a similar hook-up on the weekly MACD indicator. On the 14-day Directional Movement Index (DMI) trend indicator, the +DI and -DI lines expanded outwards to signal stronger up-trend ahead, as shown by the rising ADX line.
Conclusion
While momentum indicators reflected overbought condition for the KLCI, trend indicators are reversing their bearish signals, with the daily MACD set to trigger a "buy" on further strength. As such, investors can expect further upside early this week ahead of the Invest Malaysia conference tomorrow and Wednesday, before profit-taking and selling interest which is likely to increase by the later part of the week given the sell-on-fact traders mentality.
Note that last week the index managed to hold above 1,292, the 38.2 per cent Fibonacci Retracement (FR) level of the 1,224 trough to 1,334 peak, before bouncing back up for a strong V-shape recovery. The index's strength in sustaining above 1,308, the 23.6 per cent FR level, will improve upside bias toward 1,325 and subsequently the two-year peak of 1,334 of 11 March this week. A breakout above this peak, especially backed by strong follow-through buying, will fuel upside toward our immediate upside target of 1,354, representing the 76.4 per cent FR of the bearish trend from 1,525 all-time high to the 801 low. Immediate support is now upgraded to 1,308, with 1,300 as a stronger base.
For this week, expect rubber glove makers Adventa, Latexx and Supermax to extend gains on hopes earnings will expand further with passage of the US healthcare bill boosting demand, while Kinsteel, UEM Land, Dialog, Kencana, SapuraCrest, RCE Capital, 3A Resources, Leader Universal and Land & General may appreciate further on keen rotational plays.
The subject expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.
Today's Diary What to expect on Mar 29, 2010
1. KWSP and International Social Security Association hosts the Technical Seminar on High Performance in Social Society by Innovation, Change Management and Risk Management at Ballroom, Mezzanine Flr, Equatorial Hotel, KL at 8.30am
2. EDARAN OTOMOBIL NASIONAL BHD [] EGM at Glenmarie Ballroom, Holiday Inn Glenmarie at 9am
3. NCB HOLDINGS BHD [] AGM at PJ Hilton at 10am
4. BURSA MALAYSIA BHD [] AGM at Ballroom 1, Level 1, Sime Darby Convention Centre, KL at 10am
5. Signing ceremony between CIMB Group and Japan Bank of International Cooperation at Ballroom A, KL Hilton at 12.30pm
2. EDARAN OTOMOBIL NASIONAL BHD [] EGM at Glenmarie Ballroom, Holiday Inn Glenmarie at 9am
3. NCB HOLDINGS BHD [] AGM at PJ Hilton at 10am
4. BURSA MALAYSIA BHD [] AGM at Ballroom 1, Level 1, Sime Darby Convention Centre, KL at 10am
5. Signing ceremony between CIMB Group and Japan Bank of International Cooperation at Ballroom A, KL Hilton at 12.30pm
Market trades marginally higher
Asian stock markets rose on Friday, March 26 bolstered by news of the finalisation of a bailout package for Greece. Notably, Japan’s Nikkei 225 index hit its highest level in 18 months.
European leaders agreed have backed a deal to provide €23 billion in aid to help Greece tackle its debt crisis. The rescue package involves bilateral loans and funds from the International Monetary Fund. This draws to a close weeks of uncertainty for investors over Greece’s debt problems and support from the euro-zone members.
Indeed, uncertainties ahead of the actual Greece bailout announcement caused Wall Street to give back almost all its earlier gains on Thursday, to end flat.
The Dow Jones Industrials Average had earlier risen over 100 points in intra-day trading, buoyed by data showing initial weekly jobless claims falling 14,000 to 442,000, compared to forecasts of around 450,000, as well as comments from US Federal Reserve chairman Ben Bernanke suggesting low interest rates were likely toremain for a while.
Still, we are probably not out of the woods yet as far as European sovereign debt issues are concerned, as attention will likely focus later on the other countries with large deficits, such as Portugal, Spain and Ireland. Portugal recently saw its credit rating slashed.
Shares on Bursa Malaysia closed higher although gains were less by comparison. The FBM KLCI rose 2.7 points to 1,315.4. Trading volume remained relatively robust at 1.25 billion shares.
Market breadth was positive with advancing stocks beating declining ones by a nearly 5-to-2 ratio. Actively traded stocks include KNM, SAAG, Time dotCom, newly listed Hock Heng Stone Industries, DRB-Hicom and Multi-Purpose Holdings.
Glove makers such as Supermax, Hartalega and Kossan and extended their recent strong rally, and led the day’s major gainers. Other major gainers include Proton and Mudajaya. Losers include Jerneh, TSR and Globetronics.
Next week, all eyes will be on the New Economic Model and the InvestMalaysia Conference, which will provide some fresh leads for domestic investors.
European leaders agreed have backed a deal to provide €23 billion in aid to help Greece tackle its debt crisis. The rescue package involves bilateral loans and funds from the International Monetary Fund. This draws to a close weeks of uncertainty for investors over Greece’s debt problems and support from the euro-zone members.
Indeed, uncertainties ahead of the actual Greece bailout announcement caused Wall Street to give back almost all its earlier gains on Thursday, to end flat.
The Dow Jones Industrials Average had earlier risen over 100 points in intra-day trading, buoyed by data showing initial weekly jobless claims falling 14,000 to 442,000, compared to forecasts of around 450,000, as well as comments from US Federal Reserve chairman Ben Bernanke suggesting low interest rates were likely toremain for a while.
Still, we are probably not out of the woods yet as far as European sovereign debt issues are concerned, as attention will likely focus later on the other countries with large deficits, such as Portugal, Spain and Ireland. Portugal recently saw its credit rating slashed.
Shares on Bursa Malaysia closed higher although gains were less by comparison. The FBM KLCI rose 2.7 points to 1,315.4. Trading volume remained relatively robust at 1.25 billion shares.
Market breadth was positive with advancing stocks beating declining ones by a nearly 5-to-2 ratio. Actively traded stocks include KNM, SAAG, Time dotCom, newly listed Hock Heng Stone Industries, DRB-Hicom and Multi-Purpose Holdings.
Glove makers such as Supermax, Hartalega and Kossan and extended their recent strong rally, and led the day’s major gainers. Other major gainers include Proton and Mudajaya. Losers include Jerneh, TSR and Globetronics.
Next week, all eyes will be on the New Economic Model and the InvestMalaysia Conference, which will provide some fresh leads for domestic investors.
Regional markets advance, FBM KLCI almost flat
KUALA LUMPUR: Key regional markets rose at the midday break on Friday, March 26 as investors' confidence was bolstered by an agreement to set up a safety net for Greece but at Bursa Malaysia, the key benchmark barely budged.
At 12.30pm, the FBM KLCI was a marginal 0.97 of a point up at 1,313.45. Turnover was 637.22 million shares valued at RM801.94 million. There were 377 gainers, 274 losers and 249 stocks unchanged.
Japan's Nikkei 225 rose 1.34% to 10,974.11; Hong Kong's Hang Seng Index added 0.38% to 20,858.29 and Shanghai's Composite Index added 1.26% to 3,057.30 while Singapore's Straits Times Index gained 0.46% to 2,901.55.
Crude palm oil futures fell RM23 to RM2,552 while light crude oil inched up 26 cents to US$80.79 and US spot gold gained US$4.05 to US$1,094.55.
Reuters reported euro zone leaders together with the International Monetary Fund on Thursday agreed to provide Greece with coordinated bilateral loans if the nation faced severe difficulties.
Meanwhile, of concern at Bursa Malaysia is that foreign funds were again marginal net sellers of Malaysian equities in February, the third month in a row.
According to CIMB Equities Research, it was slightly surprised that investors continue to sell down Malaysia
even though foreign shareholdings have reached a record low.
"Foreign funds may turn net buyers in March as the market rebounded during the month and several major
conferences held this month could have attracted interest. We maintain our OVERWEIGHT stance on Malaysia and KLCI target of 1,450, based on a midcycle P/E target of around 15 times," it said.
Proton rose 23 sen to RM4.50 with 1.05 million shares done while DRB-Hicom gained 15 sen to RM1.17 with 16.4 million units done.
Among index-linked stocks, Maybank, CIMB and Sime Darby rose four sen each to RM7.43, RM14 and RM8.65 while IOI Corp added the sen to RM5.41.
Tanjong gained eight sen to RM17.98. Smaller PLANTATION []s which advanced were Sungei Bagan and Batu Kawan, which rose 14 sen each to RM2.60 and RM10.70.
On the other hand, Public Bank and Telekom fell four sen each to RM11.60 and RM3.44.
MPHB and MPHB-CA were flat at RM2.24 and 33.5 sen after the rally on Thursday on expectations of stronger first quarter earnings from its jackpot game.
KNM was the most active with 38 million shares done, easing 1.5 sen to 71 sen.
Jerneh fell 11 sen to RM2.74 and the warrants eight sen to RM1.46 as mild profit taking set in after the previous week's rally.
At 12.30pm, the FBM KLCI was a marginal 0.97 of a point up at 1,313.45. Turnover was 637.22 million shares valued at RM801.94 million. There were 377 gainers, 274 losers and 249 stocks unchanged.
Japan's Nikkei 225 rose 1.34% to 10,974.11; Hong Kong's Hang Seng Index added 0.38% to 20,858.29 and Shanghai's Composite Index added 1.26% to 3,057.30 while Singapore's Straits Times Index gained 0.46% to 2,901.55.
Crude palm oil futures fell RM23 to RM2,552 while light crude oil inched up 26 cents to US$80.79 and US spot gold gained US$4.05 to US$1,094.55.
Reuters reported euro zone leaders together with the International Monetary Fund on Thursday agreed to provide Greece with coordinated bilateral loans if the nation faced severe difficulties.
Meanwhile, of concern at Bursa Malaysia is that foreign funds were again marginal net sellers of Malaysian equities in February, the third month in a row.
According to CIMB Equities Research, it was slightly surprised that investors continue to sell down Malaysia
even though foreign shareholdings have reached a record low.
"Foreign funds may turn net buyers in March as the market rebounded during the month and several major
conferences held this month could have attracted interest. We maintain our OVERWEIGHT stance on Malaysia and KLCI target of 1,450, based on a midcycle P/E target of around 15 times," it said.
Proton rose 23 sen to RM4.50 with 1.05 million shares done while DRB-Hicom gained 15 sen to RM1.17 with 16.4 million units done.
Among index-linked stocks, Maybank, CIMB and Sime Darby rose four sen each to RM7.43, RM14 and RM8.65 while IOI Corp added the sen to RM5.41.
Tanjong gained eight sen to RM17.98. Smaller PLANTATION []s which advanced were Sungei Bagan and Batu Kawan, which rose 14 sen each to RM2.60 and RM10.70.
On the other hand, Public Bank and Telekom fell four sen each to RM11.60 and RM3.44.
MPHB and MPHB-CA were flat at RM2.24 and 33.5 sen after the rally on Thursday on expectations of stronger first quarter earnings from its jackpot game.
KNM was the most active with 38 million shares done, easing 1.5 sen to 71 sen.
Jerneh fell 11 sen to RM2.74 and the warrants eight sen to RM1.46 as mild profit taking set in after the previous week's rally.
Blue chips marginally higher
KUALA LUMPUR: Blue chips eked out marginal gains in early trade on Friday, March 26 while the overall market breadth was positive, with mild buying interest seen only in smaller capitalised stocks and lower liners.
At 9.43am, the FBM KLCI was up 1.18 points to 1,313.66. Turnover was 210.32 million shares valued at RM208.14 million. There were 223 gainers, 133 losers and 181 stocks unchanged.
Hwang DBS Vickers Research said a deeper look into the performance of Wall Street last night revealed that major U.S. equity indices jumped as much as 1.1% to 1.4% initially.
However, they ended virtually unchanged (between flat and -0.2%) at the closing bell as investors unwound their positions amidst concerns over sovereign debt problem faced by Greece in particular.
“Still, we expect the benchmark FBM KLCI on the Malaysian stock exchange to show resilience ahead, probably oscillating with a marginal positive bias today. The immediate support and resistance levels currently stand at 1,305 and 1,340, respectively,” it said.
Hwang DBS Vickers Research said as efforts to consolidate the water services industry in Selangor see more twists and turns following the entry of SPLASH to buy over all the water assets, share prices of related companies like Gamuda and Puncak Niaga may attract continuous trading interest for now.
Timber-based Jaya Tiasa rose the most, adding 20 sen to RM3.70 while Hai-O added 15 sen to RM4.54 and Proton 14 sen to RM4.41. KPJ advanced 12 sen to RM3.
Hock Heng Stone Industries, which was listed on the Main Market, rose 6.5 sen to 61.5 sen and it was the most active with 21.9 million shares done.
MPHB, which rallied to a more than two-year high on Thursday, eased one sen to RM2.23 while the call warrants shed 0.5 sen to 33 sen in active trade.
KNM continued to lose ground, shedding two sen to 70.5 sen with 17.9 million shares done.
The decliners were TSR Cap, down n ine sen to Rm1.01 with 41,000 shares done, Measta gave up five sen to RM3.18 as investors locked in gains while Telekom fell three sen to RM3.45.
Public Bank shed four sen to RM11.60, its call warrants Publoic Bank-CJ lost three sen to RM1 while AMMB shed three sen to RM4.94.
At 9.43am, the FBM KLCI was up 1.18 points to 1,313.66. Turnover was 210.32 million shares valued at RM208.14 million. There were 223 gainers, 133 losers and 181 stocks unchanged.
Hwang DBS Vickers Research said a deeper look into the performance of Wall Street last night revealed that major U.S. equity indices jumped as much as 1.1% to 1.4% initially.
However, they ended virtually unchanged (between flat and -0.2%) at the closing bell as investors unwound their positions amidst concerns over sovereign debt problem faced by Greece in particular.
“Still, we expect the benchmark FBM KLCI on the Malaysian stock exchange to show resilience ahead, probably oscillating with a marginal positive bias today. The immediate support and resistance levels currently stand at 1,305 and 1,340, respectively,” it said.
Hwang DBS Vickers Research said as efforts to consolidate the water services industry in Selangor see more twists and turns following the entry of SPLASH to buy over all the water assets, share prices of related companies like Gamuda and Puncak Niaga may attract continuous trading interest for now.
Timber-based Jaya Tiasa rose the most, adding 20 sen to RM3.70 while Hai-O added 15 sen to RM4.54 and Proton 14 sen to RM4.41. KPJ advanced 12 sen to RM3.
Hock Heng Stone Industries, which was listed on the Main Market, rose 6.5 sen to 61.5 sen and it was the most active with 21.9 million shares done.
MPHB, which rallied to a more than two-year high on Thursday, eased one sen to RM2.23 while the call warrants shed 0.5 sen to 33 sen in active trade.
KNM continued to lose ground, shedding two sen to 70.5 sen with 17.9 million shares done.
The decliners were TSR Cap, down n ine sen to Rm1.01 with 41,000 shares done, Measta gave up five sen to RM3.18 as investors locked in gains while Telekom fell three sen to RM3.45.
Public Bank shed four sen to RM11.60, its call warrants Publoic Bank-CJ lost three sen to RM1 while AMMB shed three sen to RM4.94.
OSK Research sees orderbook replenishment risk ahead for Gamuda
KUALA LUMPUR: OSK Research says GAMUDA BHD []’s 1HFY10 earnings of RM131 million (+25.9%) made up 44% of its FY10 estimates.
It said on Friday, March 26 Gamuda’s orderbook was RM7 billion and jobs are on track. Prospective jobs have however either been delayed or tenders lost.
“We see orderbook replenishment risk for FY10. On property sales, management expects a marginally weaker 2H. We are skeptical on the proposed water asset acquisition by SPLASH as many uncertainties remain,” it said.
OSK Research said valuations remain unattractive at 10x CY10 earnings vs its peers average of 14.5x. It maintained a Neutral call on Gamuda with a target price of RM2.75.
To recap, Gamuda posted 2QFY10 revenue of RM603 million (+1.9% y-o-y, -3.3% q-o-q) and earnings of RM68 million (+38.6% y-o-y, +7.9% q-o-q).
On a cumulative basis, revenue stood at RM1227 million m (+1.8% y-o-y) and earnings at RM131 million m (+25.9% y-o-y). From a y-o-y comparison, 1H margins were higher with EBIT and net amounts at 9.4% and 10.7% (FY09 comparatives at 7.6% and 8.6%).
“Overall, 1H earnings made up 43.6% of our full year projections (42.7%% of consensus). We deem this to be marginally below expectations,” it said.
It said on Friday, March 26 Gamuda’s orderbook was RM7 billion and jobs are on track. Prospective jobs have however either been delayed or tenders lost.
“We see orderbook replenishment risk for FY10. On property sales, management expects a marginally weaker 2H. We are skeptical on the proposed water asset acquisition by SPLASH as many uncertainties remain,” it said.
OSK Research said valuations remain unattractive at 10x CY10 earnings vs its peers average of 14.5x. It maintained a Neutral call on Gamuda with a target price of RM2.75.
To recap, Gamuda posted 2QFY10 revenue of RM603 million (+1.9% y-o-y, -3.3% q-o-q) and earnings of RM68 million (+38.6% y-o-y, +7.9% q-o-q).
On a cumulative basis, revenue stood at RM1227 million m (+1.8% y-o-y) and earnings at RM131 million m (+25.9% y-o-y). From a y-o-y comparison, 1H margins were higher with EBIT and net amounts at 9.4% and 10.7% (FY09 comparatives at 7.6% and 8.6%).
“Overall, 1H earnings made up 43.6% of our full year projections (42.7%% of consensus). We deem this to be marginally below expectations,” it said.
OSK Research maintains Buy on Kencana
KUALA LUMPUR: OSK Research maintains its Buy call on Kencana Petroleum and it has upgraded its target price to RM2.04 based on higher PER valuation of 16x CY11 EPS (previously RM1.46 based on a PER of 14x FY11 EPS).
It said on Friday, March 26 that historically, Kencana share price has even traded above 25x and it believes giving a slightly higher PER valuation of 16x is fair given the expected better prospects of the company.
“Among the other listed O&G companies, we believe Kencana stands a better chance in securing new contracts soon given the nature of its business coupled with its international presence, delivery track record and availability of yard space,” it said.
OSK Research said to date, it still has a strong orderbook of about RM2 billion, which should last it for the next 12 months.
Finally, Kencana is also one of the few O&G companies that had a net cash position of RM332.8 million as at 2QFY10 (versus RM93.0 million as at 1QFY10).
To recap, the research house said Kencana’s 2QFY10 results were within expectations. Again, this quarter had minimal new fabrication contracts from Petronas and its PSC contractors, resulting in Kencana’s yard only 50% utilised.
Also, there was delay in the commencement of KM1 to June 2010. It downgraded its FY10 forecast by 7% to factor in the lower 1H10 numbers but it upgraded the FY11 forecast by 9% to reflect the brighter prospect of the company.
It said on Friday, March 26 that historically, Kencana share price has even traded above 25x and it believes giving a slightly higher PER valuation of 16x is fair given the expected better prospects of the company.
“Among the other listed O&G companies, we believe Kencana stands a better chance in securing new contracts soon given the nature of its business coupled with its international presence, delivery track record and availability of yard space,” it said.
OSK Research said to date, it still has a strong orderbook of about RM2 billion, which should last it for the next 12 months.
Finally, Kencana is also one of the few O&G companies that had a net cash position of RM332.8 million as at 2QFY10 (versus RM93.0 million as at 1QFY10).
To recap, the research house said Kencana’s 2QFY10 results were within expectations. Again, this quarter had minimal new fabrication contracts from Petronas and its PSC contractors, resulting in Kencana’s yard only 50% utilised.
Also, there was delay in the commencement of KM1 to June 2010. It downgraded its FY10 forecast by 7% to factor in the lower 1H10 numbers but it upgraded the FY11 forecast by 9% to reflect the brighter prospect of the company.
CIMB Equities Research Neutral on Maybank
KUALA LUMPUR: CIMB Equities Research is Neutral on MALAYAN BANKING BHD [] as its strong core EPS growth of 46% for FY10 and 15-17% for FY11-12 is largely priced in, given its above-average CY11 P/E of 11.6x vs. the sector's 10.4x.
“We remain NEUTRAL on Maybank We prefer Public Bank for exposure to big-cap Malaysian banks,” it said on Friday, March 26.
The research house said Maybank's proposed dividend reinvestment plan comes as a surprise, but a pleasant one.
CIMB Equities Research said the proposal will benefit shareholders as it gives them the option to reinvest dividends from the group in Maybank shares at up to 10% below market price and without transaction costs.
From Maybank's perspective, there will be minimal earnings dilution as we estimate that the new shares to be issued annually will make up only 2%-3% of the share base and the shares will be issued at a limited discount to the market price.
“We, therefore, maintain our earnings forecasts and target price of RM8.35, still based on a 5% premium over our DDM value,” it said.
“We remain NEUTRAL on Maybank We prefer Public Bank for exposure to big-cap Malaysian banks,” it said on Friday, March 26.
The research house said Maybank's proposed dividend reinvestment plan comes as a surprise, but a pleasant one.
CIMB Equities Research said the proposal will benefit shareholders as it gives them the option to reinvest dividends from the group in Maybank shares at up to 10% below market price and without transaction costs.
From Maybank's perspective, there will be minimal earnings dilution as we estimate that the new shares to be issued annually will make up only 2%-3% of the share base and the shares will be issued at a limited discount to the market price.
“We, therefore, maintain our earnings forecasts and target price of RM8.35, still based on a 5% premium over our DDM value,” it said.
CIMB Research: Tanjong plc remains Outperform
KUALA LUMPUR: CIMB Equities Research maintains its Outperform recommendation on Tanjong plc as the stock may be catalysed.
The research house said on Friday, March 26 the factors are if it gets a replacement numbers forecast operations (NFO) game, ii) Tropical Islands makes a sustainable turnaround earlier-than-expected, iii) Tanjong lines up M&As, or iv) lists its power arm in the medium term.
The report was issued after Tanjong's first ever post-results conference call, which were mostly negative.
CIMB Equities Research said the points raised were there may be a cash call to fund large-scale M&As, ii) RTO losses are likely to rise 15% in FY11, and iii) there are unlikely to be any power unlocking efforts, at least not over the next few months.
The main bright spot was management's commitment to a progressive dividend policy, which supports our projected gross dividend yields of 5-7%.
CIMB Equities Research said after factoring in wider RTO losses, it trimmed its FY11-13 core earnings by 1-2%, which clips 5 sen off our end-CY10 target price, taking it to RM21.05, still based on a 10% SOP discount.
“Despite the negative tone of the conference call, we continue to rate Tanjong an Outperform,” it said.
The research house said on Friday, March 26 the factors are if it gets a replacement numbers forecast operations (NFO) game, ii) Tropical Islands makes a sustainable turnaround earlier-than-expected, iii) Tanjong lines up M&As, or iv) lists its power arm in the medium term.
The report was issued after Tanjong's first ever post-results conference call, which were mostly negative.
CIMB Equities Research said the points raised were there may be a cash call to fund large-scale M&As, ii) RTO losses are likely to rise 15% in FY11, and iii) there are unlikely to be any power unlocking efforts, at least not over the next few months.
The main bright spot was management's commitment to a progressive dividend policy, which supports our projected gross dividend yields of 5-7%.
CIMB Equities Research said after factoring in wider RTO losses, it trimmed its FY11-13 core earnings by 1-2%, which clips 5 sen off our end-CY10 target price, taking it to RM21.05, still based on a 10% SOP discount.
“Despite the negative tone of the conference call, we continue to rate Tanjong an Outperform,” it said.
March 26, 2010
Ringgit ditutup lemah
KUALA LUMPUR 25 Mac - Ringgit ditutup rendah berbanding dolar Amerika Syarikat (AS) hari ini ketika wujud kebimbangan berterusan mengenai masalah hutang di Eropah, kata peniaga.
Seorang peniaga berkata peserta pasaran bimbang mengenai isu hutang dan menunggu perkembangan baharu.
Kenyataan Timbalan Gabenor Bank Negara China, Zhu Min yang menyebut krisis hutang Greece baru sahaja bermula, menimbulkan rasa cemas terhadap isu yang sudah berpenjangan itu yang terus meningkatkan lagi kebimbangan.
"Dengan penarafan kredit Portugal diturunkan dan ditambah krisis hutang Greece, sentimen pasaran kini tidak menentu," kata peniaga itu.
Pada penutup, mata wang tempatan disebut harga pada 3.3165/3195 berbanding dolar AS pada 3.3155/3185 semalam.
Sementara itu, ringgit diniagakan tinggi berbanding mata wang utama lain.
Ia mengukuh berbanding dolar Singapura kepada 2.3571/3616 daripada 2.3620/3646 semalam dan meningkat berbanding yen Jepun kepada 3.6053/6101 berbanding 3.6442/6491 sebelumnya.
Mata wang tempatan juga mengukuh berbanding pound British kepada 4.9495/9553 daripada 4.9670/9721 pada Rabu dan mengukuh berbanding euro kepada 4.4212/4259 daripada 4.4388/4431 sebelumnya.
Seorang peniaga berkata peserta pasaran bimbang mengenai isu hutang dan menunggu perkembangan baharu.
Kenyataan Timbalan Gabenor Bank Negara China, Zhu Min yang menyebut krisis hutang Greece baru sahaja bermula, menimbulkan rasa cemas terhadap isu yang sudah berpenjangan itu yang terus meningkatkan lagi kebimbangan.
"Dengan penarafan kredit Portugal diturunkan dan ditambah krisis hutang Greece, sentimen pasaran kini tidak menentu," kata peniaga itu.
Pada penutup, mata wang tempatan disebut harga pada 3.3165/3195 berbanding dolar AS pada 3.3155/3185 semalam.
Sementara itu, ringgit diniagakan tinggi berbanding mata wang utama lain.
Ia mengukuh berbanding dolar Singapura kepada 2.3571/3616 daripada 2.3620/3646 semalam dan meningkat berbanding yen Jepun kepada 3.6053/6101 berbanding 3.6442/6491 sebelumnya.
Mata wang tempatan juga mengukuh berbanding pound British kepada 4.9495/9553 daripada 4.9670/9721 pada Rabu dan mengukuh berbanding euro kepada 4.4212/4259 daripada 4.4388/4431 sebelumnya.
Tinjauan ekonomi semakin diyakini
KUALA LUMPUR 25 Mac - Persatuan Dewan Perniagaan dan Perindustrian Cina Malaysia (ACCCIM) menjangkakan Keluaran Dalam Negara Kasar (KDNK) sebanyak enam peratus pada tahun ini boleh dicapai berikutan terdapatnya momentum peningkatan dalam pertumbuhan eksport.
Presidennya, Tan Sri William Cheng berkata, jangkaan itu juga berdasarkan keadaan ekonomi global yang semakin pulih.
Beliau berkata, sektor pembinaan sedang berkembang sambil menyarankan industri perlombongan diberi tumpuan.
"Kerajaan seharusnya membuka lebih banyak tanah untuk perlombongan kerana sumber-sumber seperti timah, batu arang, bijih besi dan tembaga mampu menjana ekonomi.
"Sasaran ini boleh dicapai jika semua pihak bekerjasama,'' kata beliau selepas mempengerusikan laporan kaji selidik ACCCIM mengenai keadaan ekonomi pada separuh kedua tahun lalu, di sini hari ini.
Cheng berkata demikian ketika mengulas hasrat Perdana Menteri untuk mencapai sasaran pertumbuhan ekonomi sebanyak enam peratus, pada tahun ini.
Cheng berkata, selain menarik pelabur asing, pelabur tempatan juga berperanan penting meningkatkan jumlah pelaburan di negara ini bagi menjana ekonomi negara.
"Kami sepatutnya mencontohi langkah yang diambil China yang menetapkan indeks prestasi utama (KPI) untuk setiap daerah yang kemudian melaporkan isu-isu berhubung, antaranya pelaburan langsung asing (FDI), pendidikan dan keselamatan ke kerajaan pusat," kata beliau.
Mengulas mengenai kaji selidik tersebut, beliau berkata, sebanyak 70 peratus responden lebih yakin dan optimis mengenai tinjauan ekonomi tahun ini dan depan berikutan peningkatan dalam jualan, tempahan luar negara dan lain-lain untuk perniagaan mereka.
Kaji selidik yang dijalankan meliputi seramai 310 responden iaitu 46.3 peratus merupakan ahli perniagaan Cina merentasi semua sektor dan industri.
Ditanya tentang cukai barangan dan perkhidmatan (GST), Cheng berkata, sekiranya GST dilaksanakan kadar cukai korporat seharusnya dikurangkan bagi menarik lebih banyak FDI.
Mengulas tentang Model Ekonomi Baru, beliau berharap kerajaan akan melaksanakan dasar lebih pragmatik dan berani serta memainkan peranan berkesan bagi membangunkan persekitaran yang lebih berdaya saing dan cenderung kepada perniagaan.
"Ini akan menuju ke arah penggunaan dan aktiviti pelaburan lebih tinggi, terus mempromosi momentum pertumbuhan dalam pelbagai sektor ekonomi ke arah negara maju," kata beliau.
Presidennya, Tan Sri William Cheng berkata, jangkaan itu juga berdasarkan keadaan ekonomi global yang semakin pulih.
Beliau berkata, sektor pembinaan sedang berkembang sambil menyarankan industri perlombongan diberi tumpuan.
"Kerajaan seharusnya membuka lebih banyak tanah untuk perlombongan kerana sumber-sumber seperti timah, batu arang, bijih besi dan tembaga mampu menjana ekonomi.
"Sasaran ini boleh dicapai jika semua pihak bekerjasama,'' kata beliau selepas mempengerusikan laporan kaji selidik ACCCIM mengenai keadaan ekonomi pada separuh kedua tahun lalu, di sini hari ini.
Cheng berkata demikian ketika mengulas hasrat Perdana Menteri untuk mencapai sasaran pertumbuhan ekonomi sebanyak enam peratus, pada tahun ini.
Cheng berkata, selain menarik pelabur asing, pelabur tempatan juga berperanan penting meningkatkan jumlah pelaburan di negara ini bagi menjana ekonomi negara.
"Kami sepatutnya mencontohi langkah yang diambil China yang menetapkan indeks prestasi utama (KPI) untuk setiap daerah yang kemudian melaporkan isu-isu berhubung, antaranya pelaburan langsung asing (FDI), pendidikan dan keselamatan ke kerajaan pusat," kata beliau.
Mengulas mengenai kaji selidik tersebut, beliau berkata, sebanyak 70 peratus responden lebih yakin dan optimis mengenai tinjauan ekonomi tahun ini dan depan berikutan peningkatan dalam jualan, tempahan luar negara dan lain-lain untuk perniagaan mereka.
Kaji selidik yang dijalankan meliputi seramai 310 responden iaitu 46.3 peratus merupakan ahli perniagaan Cina merentasi semua sektor dan industri.
Ditanya tentang cukai barangan dan perkhidmatan (GST), Cheng berkata, sekiranya GST dilaksanakan kadar cukai korporat seharusnya dikurangkan bagi menarik lebih banyak FDI.
Mengulas tentang Model Ekonomi Baru, beliau berharap kerajaan akan melaksanakan dasar lebih pragmatik dan berani serta memainkan peranan berkesan bagi membangunkan persekitaran yang lebih berdaya saing dan cenderung kepada perniagaan.
"Ini akan menuju ke arah penggunaan dan aktiviti pelaburan lebih tinggi, terus mempromosi momentum pertumbuhan dalam pelbagai sektor ekonomi ke arah negara maju," kata beliau.
Saham mewah naik dagangan Bursa tinggi
KUALA LUMPUR 25 Mac - Harga saham di Bursa Malaysia ditutup tinggi hari ini berikutan kenaikan dalam saham wajaran tinggi dan saham berkaitan air, kata para peniaga.
Mereka berkata sentimen mendapat rangsangan daripada unjuran ekonomi positif oleh Bank Negara Malaysia (BNM).Bank pusat berkata ekonomi negara dijangka berkembang antara 4.5-5.5 peratus tahun ini.
Aktiviti membeli saham murah terpilih yang aktif, terutamanya di kalangan kaunter berharga rendah, dilihat pada tengah hari.
Saham berkaitan air seperti Puncak Niaga, Kumpulan Perangsang dan JAKS Resources naik selepas sekutu Gamuda, SPLASH, membuat tawaran RM10.75 bilion untuk mengambil alih aset air Selangor.
Petunjuk pasaran Indeks Komposit Kuala Lumpur FTSE Bursa Malaysia (FBM KLCI) meningkat 3.03 mata kepada 1,312.48 selepas dibuka 1.30 mata lebih tinggi pada 1,310.75.Indeks Kewangan meningkat 28.93 mata kepada 11,708.71 manakala Indeks Perusahaan naik 10.84 mata kepada 2,651.78.
Bagaimanapun, Indeks Perladangan berkurangan 6.81 mata kepada 6,402.69. Indeks FBM Emas naik 41.33 mata kepada 8,871.14, FBM70 meningkat 103.1 mata kepada 8,759.84 manakala Indeks FBM Ace menokok 3.3 mata kepada 4,211.69.
Kaunter untung mengatasi kaunter rugi sebanyak 461 berbanding 303, 247 kaunter tidak berubah, 336 tidak diniagakan dan 30 yang lain digantung. Jumlah dagangan meningkat kepada 1.244 bilion saham bernilai RM1.845 bilion daripada 1.136 bilion saham bernilai RM1.688 bilion semalam.
Di kalangan kaunter wajaran tinggi, Maybank susut enam sen kepada RM7.39, Sime Darby naik sembilan sen kepada RM8.61, CIMB Group Holdings meningkat 22 sen kepada RM13.96 manakala Maxis melonjak tiga sen kepada RM5.38.
Perolehan dagangan di Pasaran Utama meningkat kepada 1.05 bilion saham bernilai RM1.788 bilion daripada 967.016 juta saham bernilai RM1.639 bilion semalam.
Jumlah dagangan Pasaran ACE turun kepada 80.587 juta unit bernilai RM13.04 juta daripada 97.48 juta unit bernilai RM14.1 juta pada Rabu.Waran meningkat kepada 82.13 juta saham bernilai RM20.08 juta daripada 31.83 juta saham bernilai RM4.66 juta sebelumnya.
Barangan pengguna menyumbang 46.7 juta saham yang diniagakan di Pasaran Utama, barangan perusahaan 249.2 juta, pembinaan 88.7 juta, perdagangan dan perkhidmatan 294.7 juta, teknologi 113.6 juta, prasarana 49.7 juta, kewangan 82.6 juta, hotel 6.9 juta, hartanah 95.2 juta, perladangan 21.6 juta, perlombongan 95,000, REITs 1.06 juta dan dana tertutup 18,000. -Bernama
Mereka berkata sentimen mendapat rangsangan daripada unjuran ekonomi positif oleh Bank Negara Malaysia (BNM).Bank pusat berkata ekonomi negara dijangka berkembang antara 4.5-5.5 peratus tahun ini.
Aktiviti membeli saham murah terpilih yang aktif, terutamanya di kalangan kaunter berharga rendah, dilihat pada tengah hari.
Saham berkaitan air seperti Puncak Niaga, Kumpulan Perangsang dan JAKS Resources naik selepas sekutu Gamuda, SPLASH, membuat tawaran RM10.75 bilion untuk mengambil alih aset air Selangor.
Petunjuk pasaran Indeks Komposit Kuala Lumpur FTSE Bursa Malaysia (FBM KLCI) meningkat 3.03 mata kepada 1,312.48 selepas dibuka 1.30 mata lebih tinggi pada 1,310.75.Indeks Kewangan meningkat 28.93 mata kepada 11,708.71 manakala Indeks Perusahaan naik 10.84 mata kepada 2,651.78.
Bagaimanapun, Indeks Perladangan berkurangan 6.81 mata kepada 6,402.69. Indeks FBM Emas naik 41.33 mata kepada 8,871.14, FBM70 meningkat 103.1 mata kepada 8,759.84 manakala Indeks FBM Ace menokok 3.3 mata kepada 4,211.69.
Kaunter untung mengatasi kaunter rugi sebanyak 461 berbanding 303, 247 kaunter tidak berubah, 336 tidak diniagakan dan 30 yang lain digantung. Jumlah dagangan meningkat kepada 1.244 bilion saham bernilai RM1.845 bilion daripada 1.136 bilion saham bernilai RM1.688 bilion semalam.
Di kalangan kaunter wajaran tinggi, Maybank susut enam sen kepada RM7.39, Sime Darby naik sembilan sen kepada RM8.61, CIMB Group Holdings meningkat 22 sen kepada RM13.96 manakala Maxis melonjak tiga sen kepada RM5.38.
Perolehan dagangan di Pasaran Utama meningkat kepada 1.05 bilion saham bernilai RM1.788 bilion daripada 967.016 juta saham bernilai RM1.639 bilion semalam.
Jumlah dagangan Pasaran ACE turun kepada 80.587 juta unit bernilai RM13.04 juta daripada 97.48 juta unit bernilai RM14.1 juta pada Rabu.Waran meningkat kepada 82.13 juta saham bernilai RM20.08 juta daripada 31.83 juta saham bernilai RM4.66 juta sebelumnya.
Barangan pengguna menyumbang 46.7 juta saham yang diniagakan di Pasaran Utama, barangan perusahaan 249.2 juta, pembinaan 88.7 juta, perdagangan dan perkhidmatan 294.7 juta, teknologi 113.6 juta, prasarana 49.7 juta, kewangan 82.6 juta, hotel 6.9 juta, hartanah 95.2 juta, perladangan 21.6 juta, perlombongan 95,000, REITs 1.06 juta dan dana tertutup 18,000. -Bernama
Stocks to watch: Hock Heng, Gamuda, Kencana, MPHB, water-related counters
KUALA LUMPUR: The market is expected to be lacklustre on Friday, March 26 with some profit taking expected ahead of the weekend and after Wall Street closed flat on renewed debt fears in Europe and the US.
The Dow Jones industrial average closed up 5.06 points, or 0.05 percent, to 10,841.21, while the S&P 500 index fell 1.99 points, or 0.17 percent, to 1,165.73. The Nasdaq Composite Index dipped 1.35 points, or 0.06 percent, to 2,397.41.
A Reuters report said the euro sank to a 10-month low on Thursday and benchmark 10-year U.S. Treasury yields hit a nine-month high, stung by renewed debt fears in Europe and in the United States.
However, recent positive corporate news on the home front could underpin market sentiment, especially after the rally on water-related counters in Selangor.
The stocks rallied after GAMUDA BHD [] made a RM10.75 billion bid to buy the entire Selangor water assets and operations via its 40% associate Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).
Other stocks which will continue to see interest will be PUNCAK NIAGA HOLDINGS BHD [], KUMPULAN PERANGSANG SELANGOR [] Bhd (KPS)and JAKS Resources Bhd.
Inter-Pacific Research has a fair value of 52 sen for Hock Heng Stone Industries Bhd which is scheduled to be listed on Friday. It said the lower FV from the IPO price of 55 sen was based on earnings per share (EPS) of seven sen and price-to-earnings of 7.4 times using FY10 earnings.
Loh & Loh Corp Bhd’s joint venture with Sinohydro Corp Ltd via its unit Loh & Loh CONSTRUCTION []s Sdn Bhd has accepted the terms of a letter of intent (LOI) from TENAGA NASIONAL BHD [] for the Hulu Terengganu hydroelectric project worth RM828.33 million.
MULTI-PURPOSE HOLDINGS BHD [] (MPHB) surged to its highest in more than two years on expectations of stronger first quarter earnings, bolstered by the jackpot game.
KENCANA PETROLEUM BHD [] reported an 18.53% year-on-year (y-o-y) increase in net profit to RM32.30 million in the second quarter ended Jan 31, 2010 (2QFY10) on better margins due to improved cost management.
Gamuda Bhd recorded a 38.67% growth in net profit to RM68.03 million in the second quarter ended Jan 31, 2010 (2QFY10) compared with a year earlier due to higher contributions from its business divisions.
SAPURA INDUSTRIAL BHD [] recorded an almost 18-fold year-on-year growth in net profit to RM4.99 million in the fourth quarter ended Jan 31, 2010, as revenue rose 23.5% year-on-year to RM76.46 million.
MALAYAN BANKING BHD [] proposed a recurrent and optional dividend reinvestment plan which allows shareholders to reinvest their dividend into new Maybank shares of RM1 each, in a move it said would maximise shareholders’ value while enlarging its share capital base, strengthen its capital position and add liquidity to its shares.
Stocks of TALAM CORPORATION BHD [] and related party KUMPULAN EUROPLUS BHD [] (KEuro) are also in focus following the release of their full-year results for the year ended Jan 31, 2010.
Talam posted a 88% decline in net profit for FY10 to RM7.09 million from RM59.11 million while its revenue for the year fell to RM250.98million from RM301.28 million.
Meanwhile, KEuro, which is 25%-owned by IJM CORPORATION BHD [] who also has a 26.73% stake in Talam posted a full-year net loss of RM33.08 million from a net profit of RM11.24 million a year earlier.
Scientex Bhd posted a 134% increase in net profit in its 2Q10 results announcement due to better performance in its manufacturing and property divisions.
Multi-Code Electronics Industries (M) Bhd reported a 240.43% year-on-year surge in net profit in the second quarter ended Jan 31, 2010 (2QFY10), on lower costs incurred during the quarter. It said revenue grew 32.37% to RM24.74 million from a year earlier, due to stronger demand for its products from its main customers.
Furniture-maker LCL CORPORATION BHD [] was issued a demand notice from EON Bank Bhd for a RM41.14 million loan. A filing to Bursa Securities showed it owed a total of RM210.53 million to several other financial institutions.
Yen Global Bhd, formerly known as SEQUOIA HOLDINGS BHD [], saw a net loss of RM1.84 million for the second quarter ended Jan 31, 2010 from a net profit of RM406,000 a year earlier. Its revenue was also 24.4% lower for the quarter.
The Dow Jones industrial average closed up 5.06 points, or 0.05 percent, to 10,841.21, while the S&P 500 index fell 1.99 points, or 0.17 percent, to 1,165.73. The Nasdaq Composite Index dipped 1.35 points, or 0.06 percent, to 2,397.41.
A Reuters report said the euro sank to a 10-month low on Thursday and benchmark 10-year U.S. Treasury yields hit a nine-month high, stung by renewed debt fears in Europe and in the United States.
However, recent positive corporate news on the home front could underpin market sentiment, especially after the rally on water-related counters in Selangor.
The stocks rallied after GAMUDA BHD [] made a RM10.75 billion bid to buy the entire Selangor water assets and operations via its 40% associate Syarikat Pengeluar Air Sungai Selangor Sdn Bhd (Splash).
Other stocks which will continue to see interest will be PUNCAK NIAGA HOLDINGS BHD [], KUMPULAN PERANGSANG SELANGOR [] Bhd (KPS)and JAKS Resources Bhd.
Inter-Pacific Research has a fair value of 52 sen for Hock Heng Stone Industries Bhd which is scheduled to be listed on Friday. It said the lower FV from the IPO price of 55 sen was based on earnings per share (EPS) of seven sen and price-to-earnings of 7.4 times using FY10 earnings.
Loh & Loh Corp Bhd’s joint venture with Sinohydro Corp Ltd via its unit Loh & Loh CONSTRUCTION []s Sdn Bhd has accepted the terms of a letter of intent (LOI) from TENAGA NASIONAL BHD [] for the Hulu Terengganu hydroelectric project worth RM828.33 million.
MULTI-PURPOSE HOLDINGS BHD [] (MPHB) surged to its highest in more than two years on expectations of stronger first quarter earnings, bolstered by the jackpot game.
KENCANA PETROLEUM BHD [] reported an 18.53% year-on-year (y-o-y) increase in net profit to RM32.30 million in the second quarter ended Jan 31, 2010 (2QFY10) on better margins due to improved cost management.
Gamuda Bhd recorded a 38.67% growth in net profit to RM68.03 million in the second quarter ended Jan 31, 2010 (2QFY10) compared with a year earlier due to higher contributions from its business divisions.
SAPURA INDUSTRIAL BHD [] recorded an almost 18-fold year-on-year growth in net profit to RM4.99 million in the fourth quarter ended Jan 31, 2010, as revenue rose 23.5% year-on-year to RM76.46 million.
MALAYAN BANKING BHD [] proposed a recurrent and optional dividend reinvestment plan which allows shareholders to reinvest their dividend into new Maybank shares of RM1 each, in a move it said would maximise shareholders’ value while enlarging its share capital base, strengthen its capital position and add liquidity to its shares.
Stocks of TALAM CORPORATION BHD [] and related party KUMPULAN EUROPLUS BHD [] (KEuro) are also in focus following the release of their full-year results for the year ended Jan 31, 2010.
Talam posted a 88% decline in net profit for FY10 to RM7.09 million from RM59.11 million while its revenue for the year fell to RM250.98million from RM301.28 million.
Meanwhile, KEuro, which is 25%-owned by IJM CORPORATION BHD [] who also has a 26.73% stake in Talam posted a full-year net loss of RM33.08 million from a net profit of RM11.24 million a year earlier.
Scientex Bhd posted a 134% increase in net profit in its 2Q10 results announcement due to better performance in its manufacturing and property divisions.
Multi-Code Electronics Industries (M) Bhd reported a 240.43% year-on-year surge in net profit in the second quarter ended Jan 31, 2010 (2QFY10), on lower costs incurred during the quarter. It said revenue grew 32.37% to RM24.74 million from a year earlier, due to stronger demand for its products from its main customers.
Furniture-maker LCL CORPORATION BHD [] was issued a demand notice from EON Bank Bhd for a RM41.14 million loan. A filing to Bursa Securities showed it owed a total of RM210.53 million to several other financial institutions.
Yen Global Bhd, formerly known as SEQUOIA HOLDINGS BHD [], saw a net loss of RM1.84 million for the second quarter ended Jan 31, 2010 from a net profit of RM406,000 a year earlier. Its revenue was also 24.4% lower for the quarter.
Sapura 4Q profit up almost 18 times
KUALA LUMPUR: SAPURA INDUSTRIAL BHD [] recorded an almost 18-fold year-on-year growth in net profit to RM4.99 million in the fourth quarter (4Q) ended Jan 31, 2010, as revenue rose 23.5% year-on-year (y-o-y) to RM76.46 million.
In a statement on Thursday, March 25, , it said the better performance was “mainly due to product mix.” Earnings per share rose to 6.86 sen from 0.04 sen. It did not declare any dividends.
For the full year ended Jan 31, 2010, the company said net profit rose 12.78% y-o-y to RM7.86 million, although revenue declined 3.18% to RM232.77 million.
In a statement on Thursday, March 25, , it said the better performance was “mainly due to product mix.” Earnings per share rose to 6.86 sen from 0.04 sen. It did not declare any dividends.
For the full year ended Jan 31, 2010, the company said net profit rose 12.78% y-o-y to RM7.86 million, although revenue declined 3.18% to RM232.77 million.
Dubai in US$9.5b debt offer, no new Abu Dhabi aid
DUBAI: The Dubai government unveiled plans to recapitalise its indebted Dubai World flagship and repay Nakheel bonds in full, injecting what it said was US$9.5 billion (RM31.54 billion) in new funding, but without new aid from Abu Dhabi.
In a statement, the government said US$5.7 billion in remaining funds from a loan made by Abu Dhabi would provide the lion’s share of the overall US$9.5 billion and would also include what it called “internal Dubai government resources”.
“There is no new money from Abu Dhabi,” said a government official on a conference call. “This proposal is based on amounts remaining from the loans provided previously by the government of Abu Dhabi and from internal resources from the government.”
Dubai World said the total amount of debt held by creditors excluding the Dubai Financial Support Fund was US$14.2 billion at the end of December. Those creditors would receive 100% principal repayment through the issuance of two tranches of new debt with five and eight-year maturities, it said.
The Nakheel bond payback offer came as a surprise, as does the absence of a more visible role by wealthy neighbour Abu Dhabi, which has already pledged US$10 billion in aid to debt-struck Dubai. The government said the bond repayment depended on creditors accepting the proposal.
Dubai World, the Gulf Arab emirate’s flagship conglomerate, which includes the QE2 ocean liner and Barneys department store among its high-profile assets, said last year it would delay repaying US$26 billion in debt linked mainly to property units Nakheel and Limitless World.
The government said it was also offering to recapitalise Dubai World through the equitisation of the government’s US$8.9 billion claim and a commitment to fund up to US$1.5 billion in new funds.
Turning to property giant Nakheel, the government said it would inject US$8 billion in new funds and that it would equitise US$1.2 billion of the government’s claim.
Bank creditors will be asked to restructure their debt at commercial rates, the government said. Trade creditors would be offered a significant cash payment and a tradable security, the statement said.
“Assuming sufficient support for the proposal, the 2010 and 2011 Nakheel Sukuk will be paid as they fall due,” the statement said.
Core creditors representing 97 banks met on Wednesday, to finalise months of talks on how Dubai World can restructure the debt, about a quarter of Dubai’s estimated total debt of US$101 billion. — Reuters
In a statement, the government said US$5.7 billion in remaining funds from a loan made by Abu Dhabi would provide the lion’s share of the overall US$9.5 billion and would also include what it called “internal Dubai government resources”.
“There is no new money from Abu Dhabi,” said a government official on a conference call. “This proposal is based on amounts remaining from the loans provided previously by the government of Abu Dhabi and from internal resources from the government.”
Dubai World said the total amount of debt held by creditors excluding the Dubai Financial Support Fund was US$14.2 billion at the end of December. Those creditors would receive 100% principal repayment through the issuance of two tranches of new debt with five and eight-year maturities, it said.
The Nakheel bond payback offer came as a surprise, as does the absence of a more visible role by wealthy neighbour Abu Dhabi, which has already pledged US$10 billion in aid to debt-struck Dubai. The government said the bond repayment depended on creditors accepting the proposal.
Dubai World, the Gulf Arab emirate’s flagship conglomerate, which includes the QE2 ocean liner and Barneys department store among its high-profile assets, said last year it would delay repaying US$26 billion in debt linked mainly to property units Nakheel and Limitless World.
The government said it was also offering to recapitalise Dubai World through the equitisation of the government’s US$8.9 billion claim and a commitment to fund up to US$1.5 billion in new funds.
Turning to property giant Nakheel, the government said it would inject US$8 billion in new funds and that it would equitise US$1.2 billion of the government’s claim.
Bank creditors will be asked to restructure their debt at commercial rates, the government said. Trade creditors would be offered a significant cash payment and a tradable security, the statement said.
“Assuming sufficient support for the proposal, the 2010 and 2011 Nakheel Sukuk will be paid as they fall due,” the statement said.
Core creditors representing 97 banks met on Wednesday, to finalise months of talks on how Dubai World can restructure the debt, about a quarter of Dubai’s estimated total debt of US$101 billion. — Reuters
March 24, 2010
CIMB-Principal targets RM30b assets by year-end
CIMB-PRINCIPAL Asset Management Bhd aims to manage assets worth RM30 billion by year-end, as it is confident that the total asset value under its care is poised to expand by some 30 per cent this year.
CIMB-Principal, a joint venture between CIMB Group and US-based Principal Financial Group, managed funds worth RM22.1 billion as of last year.
CIMB-Principal chief executive officer (CEO) Campbell Tupling said improved market sentiment would help it achieve the target.
"Demand from institutional and retail investors is continuing to rise and we are confident of achieving the target," he said.
Tupling was speaking to reporters after launching the company's latest fund called CIMB-Principal Australian Equity Fund in Kuala Lumpur yesterday.
The new fund has an approved fund size of 600 million units with an initial offer price of 25 sen per unit. Minimum initial investment is RM1,000.
It is the third fund launched by CIMB-Principal this year.
The fund aims to achieve medium- to long-term capital appreciation via investments in a portfolio of predominantly Australian securities.
CIMB-Principal chief investment officer Raymond Tang said the new fund would feed into the Schroder Australian Equity Fund, an Australian-domiciled fund.
The latter fund seeks to outperform the benchmark S&P/ASX 200 Accumulation Index over the medium to long term.
He said at least 95 per cent of CIMB-Principal Australian fund's net asset value (NAV) will be invested in the Schroder Australian Equity Fund.
The balance of 5 per cent would be maintained in liquid assets.
"We expect the fund to generate an annual return of between 10 per cent and 15 per cent," Tang added
CIMB-Principal, a joint venture between CIMB Group and US-based Principal Financial Group, managed funds worth RM22.1 billion as of last year.
CIMB-Principal chief executive officer (CEO) Campbell Tupling said improved market sentiment would help it achieve the target.
"Demand from institutional and retail investors is continuing to rise and we are confident of achieving the target," he said.
Tupling was speaking to reporters after launching the company's latest fund called CIMB-Principal Australian Equity Fund in Kuala Lumpur yesterday.
The new fund has an approved fund size of 600 million units with an initial offer price of 25 sen per unit. Minimum initial investment is RM1,000.
It is the third fund launched by CIMB-Principal this year.
The fund aims to achieve medium- to long-term capital appreciation via investments in a portfolio of predominantly Australian securities.
CIMB-Principal chief investment officer Raymond Tang said the new fund would feed into the Schroder Australian Equity Fund, an Australian-domiciled fund.
The latter fund seeks to outperform the benchmark S&P/ASX 200 Accumulation Index over the medium to long term.
He said at least 95 per cent of CIMB-Principal Australian fund's net asset value (NAV) will be invested in the Schroder Australian Equity Fund.
The balance of 5 per cent would be maintained in liquid assets.
"We expect the fund to generate an annual return of between 10 per cent and 15 per cent," Tang added
Zeti leads pack to offer 'wiggle room' on rates
Tan Sri Dr Zeti Akhtar Aziz, 25-year veteran of Malaysia’s central bank, is used to being told she’s wrong.
It was Zeti who announced in the 1998 Asian financial crisis Malaysia was implementing capital controls, drawing the ire of the International Monetary Fund. It was Zeti who 10 years later resisted calls to raise borrowing costs just before the global economic slump. Now, she and her associates at Bank Negara Malaysia have done it again.
Zeti, 62, boosted interest rates this month to avert “imbalances” like asset bubbles, she said in a March 12 interview, moving before most Asian central banks, from China to Indonesia. The decision reflected a recovery that’s “firmly” established, according to the bank, which presents annual economic projections today.
The payoff: the earlier move may help limit the extent of rate increases needed to keep prices stable, according to Venkatraman Anantha-Nageswaran, the global chief investment officer of Julius Baer & Co.
“Bank Negara had been accused of being lax on inflation and behind the curve, especially in 2008 when Zeti didn’t tighten, but eventually she was proven right,” said Singapore-based Anantha-Nageswaran, who helps manage about US$142 billion in assets and says he’s not a buyer of Malaysian bonds. “They didn’t hesitate to tighten now and that’ll give them more wiggle room in the future.”
Early Riser
Malaysia is once again a standout. While the Reserve Bank of India followed with a March 19 rate increase, it only did so after its benchmark inflation gauge approached 10 per cent, compared with Malaysia’s measure at less than 2 perc ent.
China’s central bank hasn’t increased borrowing costs since December 2007, even as consumer prices jumped 2.7 per cent in February from a year earlier and exports rose 46 per cent. Indonesia, Thailand, South Korea and the Philippines left rates unchanged at meetings this month. Only Vietnam raised rates last year to combat inflation.
Central banks “absolutely everywhere” in Asia are “behind the curve” in fighting inflation, save for Malaysia, DBS Bank Ltd. economist David Carbon said in a March 18 report, before India’s move.
A strengthening economy will prompt Malaysia’s central bank to raise interest rates by another quarter percentage point to 2.5 per cent on May 13, according to Standard Chartered Bank, HSBC Holdings Plc and Barclays Plc. Zeti has said the central bank will further “normalize” rates if necessary.
‘Lonely Job’
The Malaysian central banker says hers is a “lonely job” that requires “nerves of steel.”
She was criticized by some economists for not joining neighbors in increasing borrowing costs in 2008 as domestic inflation accelerated to the fastest in a quarter century. In July 2008, Lye Thim Loong, a fund manager at Avenue Invest Bhd in Kuala Lumpur, said Malaysia risked falling behind in fighting price gains.
Bank Negara kept its overnight policy rate unchanged at 3.5 per cent for 20 consecutive meetings from May 2006 to October 2008. In contrast, Bank Indonesia cut or raised borrowing costs 20 times in the same period. As the global financial crisis unfolded, Zeti reduced the benchmark to a record-low 2 per cent, holding it there for a year before raising it to 2.25 per cent on March 4.
Journalist Mother
The first Malaysian woman to become central bank governor, Zeti is the only child of Malaysian Royal Professor Ungku Abdul Aziz Ungku Abdul Hamid and Sharifah Azah Mohamed Alsagoff, founder of the Women Journalist Association of Malaysia.
She obtained a doctorate in economics from the University of Pennsylvania in 1978, with a thesis focusing on international capital flows and its implications for macroeconomic policies. That knowledge was put to the test two decades later.
She was assistant governor responsible for economics, reserves management, money market and foreign exchange operations when Thailand devalued the baht on July 2, 1997, setting off a plunge in regional currencies. The ringgit fell 89 per cent in the next six months, dropping to 4.77 against the dollar.
Casting Blame
Prime Minister Tun Mahathir Mohamad blamed the ringgit’s slide on investors, including billionaire financier George Soros, whom Mahathir labeled a “moron” who was trying to destroy growth through speculative attacks on the currency.
“Very often, I sat in the dealing room from early in the morning to the early hours when New York closed because the speculative attacks came from all directions,” Zeti said.
Zeti became Acting Governor on Sept. 1, 1998 after Mahathir ousted one of her predecessors, who disagreed with the prime minister’s plans to impose capital controls. On her first day, she announced that Malaysia would set limits on foreign-exchange transactions, trapping an estimated US$18 billion of foreign capital for at least a year.
The next day, Malaysia fixed the ringgit at 3.8 to the dollar, a peg that would remain for almost seven years until Mahathir’s successor, Tun Abdullah Ahmad Badawi, ended it on July 21, 2005. Since then, the ringgit has climbed 14 per cent to 3.3205 against the US. currency, though the ban on offshore trading of the ringgit remains.
‘Heavy Handed’
The government “was pretty heavy handed,” said William Pitman, a partner at St. James’s Place Partnership in London who was director of investment at Henderson Investors Singapore Ltd in 1998. At the time, he said Malaysia’s controls sacrificed its long-term economic goals for “political expediency.”
Advocates of free markets abandoned their positions when “their home economies were called on to take the same medicine,” Pitman said. At the same time, he also said “I do remember Zeti being an honest and impressive figure.”
“In Malaysia’s case, the market players only tried to show that ‘the king is naked,’” said Flavio Cirio, a proprietary commodity trader at Banca Monte dei Paschi in Siena, Italy, who traded Asian financial futures and options during the 1990s. “It’s also happening now with Greece as their finances get out of control. You have to examine yourself first, not too quick to stick the blame on the market,” he said, referring to the sell-off of Greek debt in recent months.
IMF’s Call
The IMF called Malaysia’s response “a step back.” Years later, the Washington-based lender that pushed spending cuts and rate increases in countries from South Korea to Indonesia as a condition for aid changed its tune.
In February this year, the IMF released a study saying limits on capital flows are a “legitimate” tool in some cases for governments facing surges in investment that threaten to destabilize their economies.
“Zeti was subjected to extraordinary criticism but she stood up to them when she supported the need for capital controls,” said Nobel laureate Joseph Stiglitz, now a professor at Columbia University in New York. “It takes not just intellectual independence but also a kind of bravery to stand up for what you believe.”
Taking Charge
Zeti continued to oversee Malaysia’s capital controls as deputy governor after Ali Abul Hassan Sulaiman was made the Bank Negara head in September 1998. She took the bank’s helm in May 2000, becoming one of Malaysia’s two most senior female officials since the nation’s independence in 1957.
Zeti is the only governor to rise through the bank’s ranks rather than be appointed from outside. She has said she regards as a mentor former Bank of England Governor Edward George, who steered his bank into a new era of independence in the 1990s.
Zeti is treading a similar path. Amendments to Malaysia’s central bank act last year gave autonomy to the rate-setting Monetary Policy Committee. It also gave the central bank more governance, regulation and surveillance over the financial industry to ensure stability.
Strengthening the central bank “allows us to stand on solid ground so that every night we can go back and sleep well and know that we have what it takes” to deal with emergencies, Zeti said. “The world has changed.” -- Bloomberg
It was Zeti who announced in the 1998 Asian financial crisis Malaysia was implementing capital controls, drawing the ire of the International Monetary Fund. It was Zeti who 10 years later resisted calls to raise borrowing costs just before the global economic slump. Now, she and her associates at Bank Negara Malaysia have done it again.
Zeti, 62, boosted interest rates this month to avert “imbalances” like asset bubbles, she said in a March 12 interview, moving before most Asian central banks, from China to Indonesia. The decision reflected a recovery that’s “firmly” established, according to the bank, which presents annual economic projections today.
The payoff: the earlier move may help limit the extent of rate increases needed to keep prices stable, according to Venkatraman Anantha-Nageswaran, the global chief investment officer of Julius Baer & Co.
“Bank Negara had been accused of being lax on inflation and behind the curve, especially in 2008 when Zeti didn’t tighten, but eventually she was proven right,” said Singapore-based Anantha-Nageswaran, who helps manage about US$142 billion in assets and says he’s not a buyer of Malaysian bonds. “They didn’t hesitate to tighten now and that’ll give them more wiggle room in the future.”
Early Riser
Malaysia is once again a standout. While the Reserve Bank of India followed with a March 19 rate increase, it only did so after its benchmark inflation gauge approached 10 per cent, compared with Malaysia’s measure at less than 2 perc ent.
China’s central bank hasn’t increased borrowing costs since December 2007, even as consumer prices jumped 2.7 per cent in February from a year earlier and exports rose 46 per cent. Indonesia, Thailand, South Korea and the Philippines left rates unchanged at meetings this month. Only Vietnam raised rates last year to combat inflation.
Central banks “absolutely everywhere” in Asia are “behind the curve” in fighting inflation, save for Malaysia, DBS Bank Ltd. economist David Carbon said in a March 18 report, before India’s move.
A strengthening economy will prompt Malaysia’s central bank to raise interest rates by another quarter percentage point to 2.5 per cent on May 13, according to Standard Chartered Bank, HSBC Holdings Plc and Barclays Plc. Zeti has said the central bank will further “normalize” rates if necessary.
‘Lonely Job’
The Malaysian central banker says hers is a “lonely job” that requires “nerves of steel.”
She was criticized by some economists for not joining neighbors in increasing borrowing costs in 2008 as domestic inflation accelerated to the fastest in a quarter century. In July 2008, Lye Thim Loong, a fund manager at Avenue Invest Bhd in Kuala Lumpur, said Malaysia risked falling behind in fighting price gains.
Bank Negara kept its overnight policy rate unchanged at 3.5 per cent for 20 consecutive meetings from May 2006 to October 2008. In contrast, Bank Indonesia cut or raised borrowing costs 20 times in the same period. As the global financial crisis unfolded, Zeti reduced the benchmark to a record-low 2 per cent, holding it there for a year before raising it to 2.25 per cent on March 4.
Journalist Mother
The first Malaysian woman to become central bank governor, Zeti is the only child of Malaysian Royal Professor Ungku Abdul Aziz Ungku Abdul Hamid and Sharifah Azah Mohamed Alsagoff, founder of the Women Journalist Association of Malaysia.
She obtained a doctorate in economics from the University of Pennsylvania in 1978, with a thesis focusing on international capital flows and its implications for macroeconomic policies. That knowledge was put to the test two decades later.
She was assistant governor responsible for economics, reserves management, money market and foreign exchange operations when Thailand devalued the baht on July 2, 1997, setting off a plunge in regional currencies. The ringgit fell 89 per cent in the next six months, dropping to 4.77 against the dollar.
Casting Blame
Prime Minister Tun Mahathir Mohamad blamed the ringgit’s slide on investors, including billionaire financier George Soros, whom Mahathir labeled a “moron” who was trying to destroy growth through speculative attacks on the currency.
“Very often, I sat in the dealing room from early in the morning to the early hours when New York closed because the speculative attacks came from all directions,” Zeti said.
Zeti became Acting Governor on Sept. 1, 1998 after Mahathir ousted one of her predecessors, who disagreed with the prime minister’s plans to impose capital controls. On her first day, she announced that Malaysia would set limits on foreign-exchange transactions, trapping an estimated US$18 billion of foreign capital for at least a year.
The next day, Malaysia fixed the ringgit at 3.8 to the dollar, a peg that would remain for almost seven years until Mahathir’s successor, Tun Abdullah Ahmad Badawi, ended it on July 21, 2005. Since then, the ringgit has climbed 14 per cent to 3.3205 against the US. currency, though the ban on offshore trading of the ringgit remains.
‘Heavy Handed’
The government “was pretty heavy handed,” said William Pitman, a partner at St. James’s Place Partnership in London who was director of investment at Henderson Investors Singapore Ltd in 1998. At the time, he said Malaysia’s controls sacrificed its long-term economic goals for “political expediency.”
Advocates of free markets abandoned their positions when “their home economies were called on to take the same medicine,” Pitman said. At the same time, he also said “I do remember Zeti being an honest and impressive figure.”
“In Malaysia’s case, the market players only tried to show that ‘the king is naked,’” said Flavio Cirio, a proprietary commodity trader at Banca Monte dei Paschi in Siena, Italy, who traded Asian financial futures and options during the 1990s. “It’s also happening now with Greece as their finances get out of control. You have to examine yourself first, not too quick to stick the blame on the market,” he said, referring to the sell-off of Greek debt in recent months.
IMF’s Call
The IMF called Malaysia’s response “a step back.” Years later, the Washington-based lender that pushed spending cuts and rate increases in countries from South Korea to Indonesia as a condition for aid changed its tune.
In February this year, the IMF released a study saying limits on capital flows are a “legitimate” tool in some cases for governments facing surges in investment that threaten to destabilize their economies.
“Zeti was subjected to extraordinary criticism but she stood up to them when she supported the need for capital controls,” said Nobel laureate Joseph Stiglitz, now a professor at Columbia University in New York. “It takes not just intellectual independence but also a kind of bravery to stand up for what you believe.”
Taking Charge
Zeti continued to oversee Malaysia’s capital controls as deputy governor after Ali Abul Hassan Sulaiman was made the Bank Negara head in September 1998. She took the bank’s helm in May 2000, becoming one of Malaysia’s two most senior female officials since the nation’s independence in 1957.
Zeti is the only governor to rise through the bank’s ranks rather than be appointed from outside. She has said she regards as a mentor former Bank of England Governor Edward George, who steered his bank into a new era of independence in the 1990s.
Zeti is treading a similar path. Amendments to Malaysia’s central bank act last year gave autonomy to the rate-setting Monetary Policy Committee. It also gave the central bank more governance, regulation and surveillance over the financial industry to ensure stability.
Strengthening the central bank “allows us to stand on solid ground so that every night we can go back and sleep well and know that we have what it takes” to deal with emergencies, Zeti said. “The world has changed.” -- Bloomberg
CIMB sets 20pc return-on-equity goal
CIMB Group Holdings Bhd, Malaysia’s second-biggest bank, is targeting to achieve a return on equity of as much as 20 per cent from 2011 on wider lending margins and credit cost improvements, said Credit Suisse Group AG.
The return-on-equity goal, a gauge of how effectively earnings are reinvested, is targeted at 16 per cent this year, Danny Goh, an analyst at Credit Suisse said in a report today.
CIMB climbed 1.9 per cent to RM13.74, on course for its steepest advance since March 8. It’s the best performer on the benchmark stock index today. - Bloomberg
The return-on-equity goal, a gauge of how effectively earnings are reinvested, is targeted at 16 per cent this year, Danny Goh, an analyst at Credit Suisse said in a report today.
CIMB climbed 1.9 per cent to RM13.74, on course for its steepest advance since March 8. It’s the best performer on the benchmark stock index today. - Bloomberg
Ulasan Pasaran: Indeks meningkat 11.20 mata
HARGA saham di Bursa Malaysia ditutup tinggi semalam dengan Indeks Komposit Kuala Lumpur FTSE Bursa Malaysia (FBM KLCI) melepasi paras 1,300 mata.
Pada penutup, indeks penanda aras menokok 11.20 mata kepada 1,304.85, dirangsang keuntungan dalam saham wajaran tinggi utama. Penganalisis Teknikal Kanan TA Securities, Stephen Soo, berkata sasaran berikutnya bagi FBM KLCI adalah sekitar paras 1,308 mata.
FBM KLCI mencecah paras tertingginya tahun ini pada 1,328.22 pada 10 Mac lalu.
“Walaupun sentimen berhati-hati masih wujud dengan masalah hutang Greek dan peningkatan kadar faedah di India, terdapat potensi untuk pasaran tempatan untuk terus meningkat.
“Pelabur mengharapkan pengumuman minggu depan mengenai model ekonomi baru yang akan merangsang pasaran dalam negara untuk mengatasi paras 1,325 mata,” katanya. Indeks Kewangan menokok 87.71 mata kepada 11,584.18, Indeks Perusahaan menambah 39.74 mata kepada 6,394.02 dan Indeks Perusahaan naik 19.13 mata kepada 2,626.94. Indeks FBM Emas meningkat 77.15 mata kepada 8,784.70 dan FBM70 menokok 80.66 mata kepada 8,592.43 tetapi Indeks FBM Ace susut 12.22 mata kepada 4,157.50.
Saham untung mengatasi rugi pada 446 kepada 253 manakala 278 kaunter kekal tidak berubah, 372 tidak didagangkan dan 30 yang lain digantung.
Jumlah dagangan lebih tinggi pada 907.7 juta saham bernilai RM1.487 bilion daripada 674.99 juta saham bernilai RM1.25 bilion kelmarin.
Antara saham wajaran tinggi, Maybank menokok 13 sen kepada RM7.41, Sime Darby naik 10 sen kepada RM8.50 dan CIMB Group Holdings meningkat 12 sen kepada RM13.48 tetapi Maxis susut dua sen kepada RM5.35.
Antara saham aktif, Integrated Rubber Corporation naik 27 sen kepada RM1.20, KNM Group susut dua sen kepada 75 sen dan Eastern & Oriental menokok tiga sen kepada 95 sen dan Scomi Group turun dua sen kepada 36 sen.
Jumlah dagangan di Pasaran Utama meningkat kepada 791.469 juta saham bernilai RM1.463 bilion daripada 592.52 juta saham bernilai RM1.23 bilion kelmarin.
Jumlah dagangan di pasaran ACE lebih tinggi pada 66.838 juta saham bernilai RM9.23 juta daripada 48.55 juta saham bernilai RM6.28 juta.
Waran meningkat kepada 31.83 juta unit bernilai RM4.66 juta daripada 19.91 juta unit bernilai RM3.46 juta.
Barangan pengguna menguasai 25.7 juta saham yang didagangkan di Pasaran Utama, barangan perusahaan 258.2 juta, pembinaan 41.4 juta, dagangan dan perkhidmatan 210.9 juta, teknologi 38.9 juta, infrastruktur 18.4 juta, kewangan 73.6 juta, hotel 4.3 juta, hartanah 94.2 juta, perladangan 21.2 juta, perlombongan 85,400, REIT 3.8 juta, dan tertutup/dana 110,800. – Bernama
Pada penutup, indeks penanda aras menokok 11.20 mata kepada 1,304.85, dirangsang keuntungan dalam saham wajaran tinggi utama. Penganalisis Teknikal Kanan TA Securities, Stephen Soo, berkata sasaran berikutnya bagi FBM KLCI adalah sekitar paras 1,308 mata.
FBM KLCI mencecah paras tertingginya tahun ini pada 1,328.22 pada 10 Mac lalu.
“Walaupun sentimen berhati-hati masih wujud dengan masalah hutang Greek dan peningkatan kadar faedah di India, terdapat potensi untuk pasaran tempatan untuk terus meningkat.
“Pelabur mengharapkan pengumuman minggu depan mengenai model ekonomi baru yang akan merangsang pasaran dalam negara untuk mengatasi paras 1,325 mata,” katanya. Indeks Kewangan menokok 87.71 mata kepada 11,584.18, Indeks Perusahaan menambah 39.74 mata kepada 6,394.02 dan Indeks Perusahaan naik 19.13 mata kepada 2,626.94. Indeks FBM Emas meningkat 77.15 mata kepada 8,784.70 dan FBM70 menokok 80.66 mata kepada 8,592.43 tetapi Indeks FBM Ace susut 12.22 mata kepada 4,157.50.
Saham untung mengatasi rugi pada 446 kepada 253 manakala 278 kaunter kekal tidak berubah, 372 tidak didagangkan dan 30 yang lain digantung.
Jumlah dagangan lebih tinggi pada 907.7 juta saham bernilai RM1.487 bilion daripada 674.99 juta saham bernilai RM1.25 bilion kelmarin.
Antara saham wajaran tinggi, Maybank menokok 13 sen kepada RM7.41, Sime Darby naik 10 sen kepada RM8.50 dan CIMB Group Holdings meningkat 12 sen kepada RM13.48 tetapi Maxis susut dua sen kepada RM5.35.
Antara saham aktif, Integrated Rubber Corporation naik 27 sen kepada RM1.20, KNM Group susut dua sen kepada 75 sen dan Eastern & Oriental menokok tiga sen kepada 95 sen dan Scomi Group turun dua sen kepada 36 sen.
Jumlah dagangan di Pasaran Utama meningkat kepada 791.469 juta saham bernilai RM1.463 bilion daripada 592.52 juta saham bernilai RM1.23 bilion kelmarin.
Jumlah dagangan di pasaran ACE lebih tinggi pada 66.838 juta saham bernilai RM9.23 juta daripada 48.55 juta saham bernilai RM6.28 juta.
Waran meningkat kepada 31.83 juta unit bernilai RM4.66 juta daripada 19.91 juta unit bernilai RM3.46 juta.
Barangan pengguna menguasai 25.7 juta saham yang didagangkan di Pasaran Utama, barangan perusahaan 258.2 juta, pembinaan 41.4 juta, dagangan dan perkhidmatan 210.9 juta, teknologi 38.9 juta, infrastruktur 18.4 juta, kewangan 73.6 juta, hotel 4.3 juta, hartanah 94.2 juta, perladangan 21.2 juta, perlombongan 85,400, REIT 3.8 juta, dan tertutup/dana 110,800. – Bernama
Ringgit kekal rendah
KUALA LUMPUR 23 Mac - Ringgit ditutup tidak berubah berbanding dolar AS hari ini di celah-celah kekukuhan dolar AS, kata para peniaga. Pada pukul 5 petang, unit tempatan sedikit berubah pada 3.3170/3195 berbanding dolar daripada penutup semalam iaitu 3.3170/3200.
Seorang peniaga berkata unit tempatan merosot ke paras rendah 3.3280 pada urus niaga seharian sebelum pulih semula menghala kepada penutupan ekoran aktiviti pengambilan untung.
Bagaimanapun, asas-asas pasaran masih lagi disokong oleh kebimbangan berterusan akan keupayaan Greece mendapatkan bantuan kewangan dan ketidaktentuan lain di pasaran global.
Ringgit diniagakan bercampur-campur berbanding mata wang utama yang lain.
Ringgit mengukuh kepada 2.3652/3684 berbanding dolar Singapura daripada 2.3688/3734 semalam dan lebih tinggi kepada 4.4846/4893 berbanding Euro daripada 4.4922/4980 sebelumnya.
Mata wang tempatan, bagaimanapun lega kepada 3.6813/6863 berbanding yen daripada penutup semalam iaitu 3.6582/6653 dan lebih rendah kepada 4.9864/9915 daripada pound Britain pada 4.9787/9857 sebelumnya.
Seorang peniaga berkata unit tempatan merosot ke paras rendah 3.3280 pada urus niaga seharian sebelum pulih semula menghala kepada penutupan ekoran aktiviti pengambilan untung.
Bagaimanapun, asas-asas pasaran masih lagi disokong oleh kebimbangan berterusan akan keupayaan Greece mendapatkan bantuan kewangan dan ketidaktentuan lain di pasaran global.
Ringgit diniagakan bercampur-campur berbanding mata wang utama yang lain.
Ringgit mengukuh kepada 2.3652/3684 berbanding dolar Singapura daripada 2.3688/3734 semalam dan lebih tinggi kepada 4.4846/4893 berbanding Euro daripada 4.4922/4980 sebelumnya.
Mata wang tempatan, bagaimanapun lega kepada 3.6813/6863 berbanding yen daripada penutup semalam iaitu 3.6582/6653 dan lebih rendah kepada 4.9864/9915 daripada pound Britain pada 4.9787/9857 sebelumnya.
Indeks FBM KLCI melepasi paras 1300 mata
KUALA LUMPUR 23 Mac - Harga saham di Bursa Malaysia ditutup tinggi hari ini dengan Indeks Komposit Kuala Lumpur FTSE Bursa Malaysia (FBM KLCI) melepasi paras 1,300 mata. Pada pukul 5 petang, indeks penanda aras menokok 11.20 mata kepada 1,304.85, dirangsang oleh keuntungan dalam saham wajaran tinggi utama.
Penganalisis Teknikal Kanan TA Securities, Stephen Soo berkata sasaran berikutnya bagi FBM KLCI adalah sekitar paras 1,308 mata. FBM KLCI mencecah paras tertingginya tahun ini pada 1,328.22 pada 10 Mac.
"Meskipun sentimen berhati-hati masih wujud dengan masalah hutang negara Greek dan peningkatan kadar faedah di India, terdapat potensi untuk pasaran tempatan untuk terus meningkat.
Indeks Kewangan menokok 87.71 mata kepada 11,584.18, Indeks Perusahaan menambah 39.74 mata kepada 6,394.02 dan Indeks Perusahaan naik 19.13 mata kepada 2,626.94. Indeks FBM Emas meningkat 77.15 mata kepada 8,784.70 dan FBM70 menokok 80.66 mata kepada 8,592.43 tetapi Indeks FBM Ace susut 12.22 mata kepada 4,157.50.
Saham untung mengatasi rugi pada 446 kepada 253 manakala 278 kaunter kekal tidak berubah, 372 tidak didagangkan dan 30 yang lain digantung.
Jumlah dagangan lebih tinggi pada 907.7 juta saham bernilai RM1.487 bilion daripada 674.99 juta saham bernilai RM1.25 bilion semalam.
Antara saham wajaran tinggi, Maybank menokok 13 sen kepada RM7.41, Sime Darby naik 10 sen kepada RM8.50 dan CIMB Group Holdings meningkat 12 sen kepada RM13.48 tetapi Maxis susut dua sen kepada RM5.35.
Jumlah dagangan di Pasaran Utama meningkat kepada 791.469 juta saham bernilai RM1.463 bilion daripada 592.52 juta saham bernilai RM1.23 bilion semalam.
Perolehan dagangan di pasaran Ace lebih tinggi pada 66.838 juta saham bernilai RM9.23 juta daripada 48.55 juta saham bernilai RM6.28 juta.
Waran meningkat kepada 31.83 juta unit bernilai RM4.66 juta daripada 19.91 juta unit bernilai RM3.46 juta.
Barangan pengguna menguasai 25.7 juta saham yang didagangkan di Pasaran Utama, barangan perusahaan 258.2 juta, pembinaan 41.4 juta, dagangan dan perkhidmatan 210.9 juta, teknologi 38.9 juta, infrastruktur 18.4 juta, kewangan 73.6 juta, hotel 4.3 juta, hartanah 94.2 juta, perladangan 21.2 juta, perlombongan 85,400, REIT 3.8 juta, dan dana tertutup 110,800.- Bernama
Penganalisis Teknikal Kanan TA Securities, Stephen Soo berkata sasaran berikutnya bagi FBM KLCI adalah sekitar paras 1,308 mata. FBM KLCI mencecah paras tertingginya tahun ini pada 1,328.22 pada 10 Mac.
"Meskipun sentimen berhati-hati masih wujud dengan masalah hutang negara Greek dan peningkatan kadar faedah di India, terdapat potensi untuk pasaran tempatan untuk terus meningkat.
Indeks Kewangan menokok 87.71 mata kepada 11,584.18, Indeks Perusahaan menambah 39.74 mata kepada 6,394.02 dan Indeks Perusahaan naik 19.13 mata kepada 2,626.94. Indeks FBM Emas meningkat 77.15 mata kepada 8,784.70 dan FBM70 menokok 80.66 mata kepada 8,592.43 tetapi Indeks FBM Ace susut 12.22 mata kepada 4,157.50.
Saham untung mengatasi rugi pada 446 kepada 253 manakala 278 kaunter kekal tidak berubah, 372 tidak didagangkan dan 30 yang lain digantung.
Jumlah dagangan lebih tinggi pada 907.7 juta saham bernilai RM1.487 bilion daripada 674.99 juta saham bernilai RM1.25 bilion semalam.
Antara saham wajaran tinggi, Maybank menokok 13 sen kepada RM7.41, Sime Darby naik 10 sen kepada RM8.50 dan CIMB Group Holdings meningkat 12 sen kepada RM13.48 tetapi Maxis susut dua sen kepada RM5.35.
Jumlah dagangan di Pasaran Utama meningkat kepada 791.469 juta saham bernilai RM1.463 bilion daripada 592.52 juta saham bernilai RM1.23 bilion semalam.
Perolehan dagangan di pasaran Ace lebih tinggi pada 66.838 juta saham bernilai RM9.23 juta daripada 48.55 juta saham bernilai RM6.28 juta.
Waran meningkat kepada 31.83 juta unit bernilai RM4.66 juta daripada 19.91 juta unit bernilai RM3.46 juta.
Barangan pengguna menguasai 25.7 juta saham yang didagangkan di Pasaran Utama, barangan perusahaan 258.2 juta, pembinaan 41.4 juta, dagangan dan perkhidmatan 210.9 juta, teknologi 38.9 juta, infrastruktur 18.4 juta, kewangan 73.6 juta, hotel 4.3 juta, hartanah 94.2 juta, perladangan 21.2 juta, perlombongan 85,400, REIT 3.8 juta, dan dana tertutup 110,800.- Bernama
Key markets up, CIMB leads FBM KLCI
KUALA LUMPUR: Key regional markets, except for Singapore, were higher at the midday break on Wednesday, March 24 while at Bursa Malaysia, banks were among the gainers.
CIMB, AMMB and Public Bank were among the gainers ahead of the release of Bank Negara’s annual report on the country’s economic prospects and positive outlook for the banking sector. Details will be released at 6pm on Wednesday.
At 12.30pm, the FBM KLCI rose 4.5 points to 1,309.35. Turnover was 601.48 million shares valued at RM820.06 million. There were 383 gainers, 218 losers and 293 stocks unchanged.
Among key regional markets, Japan’s Nikkei 225 rose 0.23% to 10,798.44, Hong Kong’s Hang Seng Index added 0.44% to 21,080.21, Shanghai’s Composite Index advanced 0.2% to 3,059.14 but Singapore’s Straits Times Index fell 0.26% to 2,897.98.
Light crude oil fell 60 cents to US$81.31, crude palm oil futures fell RM13 to US$2,578 while US spot gold shed US$1.50 to US$1,103.65.
Meanwhile, Reuters reported that with unemployment high and inflation low, the Federal Reserve is in no hurry to raise interest rates.
The Fed cut its key target rate to near zero in December 2008 and pumped more than US$1 trillion into the world's biggest economy to blunt the worst downturn since the Great Depression.
While a mild recovery has taken hold and the jobs market has begun to stabilise, the officials said scant signs of inflation mean the Fed's vow to keep near-zero rates for an extended period continued to be warranted.
At Bursa Malaysia, CIMB rose 26 sen to RM13.74, pushing up the key index by 2.94 points while AMMB added seven sen to RM4.94 and Public Bank two sen higher to RM11.66. Maybank added one sen to RM7.42 and Hong Leong Bank three sen to RM8.59.
Sime Darby rose four sen to RM8.54 while PPB gained 18 sen to RM17.21 and Genting PLANTATION []s 16 sen to RM6.85. Among glove makers, Kossan rose 23 sen to RM7.64, Top Glove 22 sen to RM13.14and IRCB four sen to RM1.24.
Among stocks in the semiconductor-related industry, Unisem rose 18 sen to RM2.63, Eng Tek 16 sen to RM2.88 and MPI 15 sen to RM6.70.
Dutch Lady and Ajinomoto fell 18 sen to RM12.02 and RM4 while Warisan fell eight sen to RM2.20 and Hai-O eight sen to RM4.46 and Mamee six sen lower at RM2.96.
CIMB, AMMB and Public Bank were among the gainers ahead of the release of Bank Negara’s annual report on the country’s economic prospects and positive outlook for the banking sector. Details will be released at 6pm on Wednesday.
At 12.30pm, the FBM KLCI rose 4.5 points to 1,309.35. Turnover was 601.48 million shares valued at RM820.06 million. There were 383 gainers, 218 losers and 293 stocks unchanged.
Among key regional markets, Japan’s Nikkei 225 rose 0.23% to 10,798.44, Hong Kong’s Hang Seng Index added 0.44% to 21,080.21, Shanghai’s Composite Index advanced 0.2% to 3,059.14 but Singapore’s Straits Times Index fell 0.26% to 2,897.98.
Light crude oil fell 60 cents to US$81.31, crude palm oil futures fell RM13 to US$2,578 while US spot gold shed US$1.50 to US$1,103.65.
Meanwhile, Reuters reported that with unemployment high and inflation low, the Federal Reserve is in no hurry to raise interest rates.
The Fed cut its key target rate to near zero in December 2008 and pumped more than US$1 trillion into the world's biggest economy to blunt the worst downturn since the Great Depression.
While a mild recovery has taken hold and the jobs market has begun to stabilise, the officials said scant signs of inflation mean the Fed's vow to keep near-zero rates for an extended period continued to be warranted.
At Bursa Malaysia, CIMB rose 26 sen to RM13.74, pushing up the key index by 2.94 points while AMMB added seven sen to RM4.94 and Public Bank two sen higher to RM11.66. Maybank added one sen to RM7.42 and Hong Leong Bank three sen to RM8.59.
Sime Darby rose four sen to RM8.54 while PPB gained 18 sen to RM17.21 and Genting PLANTATION []s 16 sen to RM6.85. Among glove makers, Kossan rose 23 sen to RM7.64, Top Glove 22 sen to RM13.14and IRCB four sen to RM1.24.
Among stocks in the semiconductor-related industry, Unisem rose 18 sen to RM2.63, Eng Tek 16 sen to RM2.88 and MPI 15 sen to RM6.70.
Dutch Lady and Ajinomoto fell 18 sen to RM12.02 and RM4 while Warisan fell eight sen to RM2.20 and Hai-O eight sen to RM4.46 and Mamee six sen lower at RM2.96.
CIMB Research maintains overweight on glove sector
KUALA LUMPUR: CIMB Equities Research retains its Overweight stance on the glove manufacturing sector, with the potential re-rating catalysts being a continuing uptick in demand, capacity expansion and strong earnings growth.
“Adventa and Supermax remain our top picks,” it said on Wednesday, March 24.
CIMB Research said the rubber glove sector did well during the quarters ending Dec-Feb, with core net profit for the six companies in our coverage rising on average 23% quarter-on-quarter and more than doubling year-on-year.
“Half of the companies topped our expectations. The results trend was consistent with our expectations of strong results due to pricing power stemming from robust demand,” it said.
This enabled margins to improve despite rising latex costs and a depreciating US$. It does not see any change to this picture of strong demand, which the manufacturers will be able to tap into, thanks to their continuing capacity expansion.
“We also expect the impact on margins to be minimal given the strong demand which will allow the companies to pass through the cost increases,” it said.
“Adventa and Supermax remain our top picks,” it said on Wednesday, March 24.
CIMB Research said the rubber glove sector did well during the quarters ending Dec-Feb, with core net profit for the six companies in our coverage rising on average 23% quarter-on-quarter and more than doubling year-on-year.
“Half of the companies topped our expectations. The results trend was consistent with our expectations of strong results due to pricing power stemming from robust demand,” it said.
This enabled margins to improve despite rising latex costs and a depreciating US$. It does not see any change to this picture of strong demand, which the manufacturers will be able to tap into, thanks to their continuing capacity expansion.
“We also expect the impact on margins to be minimal given the strong demand which will allow the companies to pass through the cost increases,” it said.
CIMB drives FBM KLCI higher
KUALA LUMPUR: Blue chips extended their gains in early trade on Wednesday, March 24, powered by CIMB and Tanjong as market sentiment firmed up especially, after the FBM KLCI managed to stay above the key 1,300 level and the stronger overnight close on Wall Street.
At 9.23am, the FBM KLCI was up 8.42 points to 1,313.27. Turnover was 108.8 million shares valued at RM125 million. There were 243 gainers, 48 losers and 133 stocks unchanged.
HwangDBS Vickers Research said continuing from where it left off on Tuesday, the FBM KLCI could cut above the resistance line of 1,305 on Wednesday. If so, then the benchmark index may advance towards its recent high of 1,334, on its way to challenge the next resistance target of 1,340.
It said essentially, investors will be in the mood to buy equities after major U.S. stock indices on Wall Street surged (by between 0.7% and 1.0% overnight) to new highs following the share market rebound since March 2009. Confidence was boosted by a belief that the global economic recovery is strengthening.
HwangDBS Vickers Research said it would get an insight into the prospects of the Malaysian economy when Bank Negara Malaysia releases its Annual Report 2009 this evening, including revealing its official GDP growth projection for 2010.
Meanwhile, there will be a high profile launch of high speed broadband services by Telekom Malaysia late Wednesday, which is supposed to add a new income source for TM.
At Bursa Malaysia, CIMB led the charge, rising 18 sen to RM13.36 while Tanjong gained 12 sen to RM17.90 and chip-related stocks MPI added 13 sen to RM6.68 and Unisem 11 sen to RM2.56.
Glove makers Hartalega rose 12 sen to RM7.88 and Kossan 11 sen to RM7.52 while IRCB, which was the most active with 11.9 million shares, rose 10 sen to RM1.30.
Hard disk component manufacturer JCY rose nine sen to RM1.69 with 7.04 million shares done while JCY-CA added seven sen to 32 sen.
KKB picked up steam, rising 15 sen to RM5.95 while Naim added 13 sen to RM3.47.
At 9.23am, the FBM KLCI was up 8.42 points to 1,313.27. Turnover was 108.8 million shares valued at RM125 million. There were 243 gainers, 48 losers and 133 stocks unchanged.
HwangDBS Vickers Research said continuing from where it left off on Tuesday, the FBM KLCI could cut above the resistance line of 1,305 on Wednesday. If so, then the benchmark index may advance towards its recent high of 1,334, on its way to challenge the next resistance target of 1,340.
It said essentially, investors will be in the mood to buy equities after major U.S. stock indices on Wall Street surged (by between 0.7% and 1.0% overnight) to new highs following the share market rebound since March 2009. Confidence was boosted by a belief that the global economic recovery is strengthening.
HwangDBS Vickers Research said it would get an insight into the prospects of the Malaysian economy when Bank Negara Malaysia releases its Annual Report 2009 this evening, including revealing its official GDP growth projection for 2010.
Meanwhile, there will be a high profile launch of high speed broadband services by Telekom Malaysia late Wednesday, which is supposed to add a new income source for TM.
At Bursa Malaysia, CIMB led the charge, rising 18 sen to RM13.36 while Tanjong gained 12 sen to RM17.90 and chip-related stocks MPI added 13 sen to RM6.68 and Unisem 11 sen to RM2.56.
Glove makers Hartalega rose 12 sen to RM7.88 and Kossan 11 sen to RM7.52 while IRCB, which was the most active with 11.9 million shares, rose 10 sen to RM1.30.
Hard disk component manufacturer JCY rose nine sen to RM1.69 with 7.04 million shares done while JCY-CA added seven sen to 32 sen.
KKB picked up steam, rising 15 sen to RM5.95 while Naim added 13 sen to RM3.47.
March 23, 2010
Agihan pendapatan ASM 6.3 sen seunit
ASNB bayar RM654.06j kepada 552,000 pelabur
AMANAH Saham Nasional Bhd (ASNB) mengumumkan pengagihan pendapatan 6.3 sen seunit bagi skim Amanah Saham Malaysia (ASM) untuk tahun kewangan berakhir 31 Mac 2010.
Pengerusi Permodalan Nasional Bhd (PNB), Tun Ahmad Sarji Abdul Hamid, berkata ia membabitkan pembayaran berjumlah RM654.06 juta, meningkat 60.5 peratus berbanding RM407.58 juta yang dibayar tahun kewangannya yang lalu.
Katanya, persekitaran pelaburan dan pasaran saham tempatan lebih meyakinkan berikutan pemulihan ekonomi dan pasaran saham global menyumbang kepada agihan pendapatan lebih baik itu.
"Dana ekuiti pendapatan berharga tetap yang dilancarkan pada 20 April 2000 itu menarik lebih 149,000 pelabur baru”
Ahmad Sarji Abdul Hamid
Pengerusi PNB Hingga 19 Mac lalu, sebanyak 11.2 bilion unit ASM sudah dilanggan, naik 55.3 peratus berbanding 7.21 bilion unit yang dicatat dalam tempoh sama pada 2009.
Setakat ini, dana ekuiti pendapatan berharga tetap yang dilancarkan pada 20 April 2000 itu menarik lebih 149,000 pelabur baru, menjadikan jumlah pelaburnya 552,000, katanya pada pengumuman agihan ASM, Kuala Lumpur, semalam.
Turut hadir, Presiden dan Ketua Eksekutif Kumpulan PNB, Tan Sri Hamad Kama Piah Che Othman.
Bagi tahun kewangan lalu, ASNB mengumumkan pengagihan pendapatan sebanyak 6.25 sen seunit bagi skim saham manah berkenaan.
Ahmad Sarji berkata, hingga 19 Mac lalu, dana ASM memperoleh pendapatan kasar RM800.83 juta dan daripada jumlah itu keuntungan penjualan saham dalam syarikat menyumbang RM429.83 juta atau 53.7 peratus.
Katanya, pendapatan dividen daripada pelaburan dalam syarikat pula menyumbang RM259.69 juta (32.4 peratus) dan baki RM111.31 juta (13.9 peratus) diperoleh daripada pendapatan pelaburan instrumen jangka pendek.
Beliau berkata, bagi tujuan pengiraan pengagihan pendapatan itu, semua urus niaga bagi ASM di pejabat dan ejen ASNB akan ditangguhkan mulai 24 hingga 31 Mac ini.
Sementara itu, Hamad Kama Piah, berkata agihan pendapatan ASM sebanyak 6.3 sen seunit itu adalah wajar jika dibandingkan dengan dengan profil risiko pelaburan tabung berkenaan sepanjang tempoh pelaburannya.
Keseluruhannya, berdasarkan prestasi pelaburan dana ASM, agihan pendapatan yang boleh dibayar ialah 7.4 sen seunit, namun kami hanya membayar 6.3 sen seunit kepada pelabur dan bakinya dibawa ke depan untuk agihan tahun akan datang, katanya.
AMANAH Saham Nasional Bhd (ASNB) mengumumkan pengagihan pendapatan 6.3 sen seunit bagi skim Amanah Saham Malaysia (ASM) untuk tahun kewangan berakhir 31 Mac 2010.
Pengerusi Permodalan Nasional Bhd (PNB), Tun Ahmad Sarji Abdul Hamid, berkata ia membabitkan pembayaran berjumlah RM654.06 juta, meningkat 60.5 peratus berbanding RM407.58 juta yang dibayar tahun kewangannya yang lalu.
Katanya, persekitaran pelaburan dan pasaran saham tempatan lebih meyakinkan berikutan pemulihan ekonomi dan pasaran saham global menyumbang kepada agihan pendapatan lebih baik itu.
"Dana ekuiti pendapatan berharga tetap yang dilancarkan pada 20 April 2000 itu menarik lebih 149,000 pelabur baru”
Ahmad Sarji Abdul Hamid
Pengerusi PNB Hingga 19 Mac lalu, sebanyak 11.2 bilion unit ASM sudah dilanggan, naik 55.3 peratus berbanding 7.21 bilion unit yang dicatat dalam tempoh sama pada 2009.
Setakat ini, dana ekuiti pendapatan berharga tetap yang dilancarkan pada 20 April 2000 itu menarik lebih 149,000 pelabur baru, menjadikan jumlah pelaburnya 552,000, katanya pada pengumuman agihan ASM, Kuala Lumpur, semalam.
Turut hadir, Presiden dan Ketua Eksekutif Kumpulan PNB, Tan Sri Hamad Kama Piah Che Othman.
Bagi tahun kewangan lalu, ASNB mengumumkan pengagihan pendapatan sebanyak 6.25 sen seunit bagi skim saham manah berkenaan.
Ahmad Sarji berkata, hingga 19 Mac lalu, dana ASM memperoleh pendapatan kasar RM800.83 juta dan daripada jumlah itu keuntungan penjualan saham dalam syarikat menyumbang RM429.83 juta atau 53.7 peratus.
Katanya, pendapatan dividen daripada pelaburan dalam syarikat pula menyumbang RM259.69 juta (32.4 peratus) dan baki RM111.31 juta (13.9 peratus) diperoleh daripada pendapatan pelaburan instrumen jangka pendek.
Beliau berkata, bagi tujuan pengiraan pengagihan pendapatan itu, semua urus niaga bagi ASM di pejabat dan ejen ASNB akan ditangguhkan mulai 24 hingga 31 Mac ini.
Sementara itu, Hamad Kama Piah, berkata agihan pendapatan ASM sebanyak 6.3 sen seunit itu adalah wajar jika dibandingkan dengan dengan profil risiko pelaburan tabung berkenaan sepanjang tempoh pelaburannya.
Keseluruhannya, berdasarkan prestasi pelaburan dana ASM, agihan pendapatan yang boleh dibayar ialah 7.4 sen seunit, namun kami hanya membayar 6.3 sen seunit kepada pelabur dan bakinya dibawa ke depan untuk agihan tahun akan datang, katanya.
Ringgit ditutup rendah
KUALA LUMPUR 22 Mac - Ringgit ditutup rendah hari ini berbanding dolar Amerika Syarikat (AS), dengan masalah politik antara China dan AS terus meningkat mata wang itu berbanding yuan, kata peniaga.
Tekanan semakin memuncak di Amerika Syarikat bagi mengisytiharkan China sebagai manipulator mata wang serta mengenakan sekatan perdagangan, yang menurut Menteri Perdagangan China, Chen Deming, Beijing akan bertindak balas.
Pada 5 petang, mata wang tempatan disebut harga pada 3.3170/3200 berbanding dolar daripada 3.3020/3050 pada penutupan Jumaat.
Seorang peniaga berkata kebimbangan di kalangan peserta pasaran melibatkan proses menyelamat Greece yang dibelenggu hutang, menyokong dolar untuk terus meningkat berbanding mata wang utama yang lain.Hari ini ringgit kebanyakannya diniagakan rendah berbanding mata wang utama yang lain.
Ia susut berbanding dolar Singapura kepada 2.3688/3734 daripada 2.3653/3697 Jumaat lepas serta yen Jepun pada 3.6636/6677 daripada 3.6486/6544 sebelumnya.
Ringgit juga susut berbanding euro pada 4.4922/4980 berbanding 4.4861/4905 Jumaat lepas namun mengukuh berbanding pound British kepada 4.9787/9857 daripada 4.9996/5.0051 sebelumnya.- Bernama
Tekanan semakin memuncak di Amerika Syarikat bagi mengisytiharkan China sebagai manipulator mata wang serta mengenakan sekatan perdagangan, yang menurut Menteri Perdagangan China, Chen Deming, Beijing akan bertindak balas.
Pada 5 petang, mata wang tempatan disebut harga pada 3.3170/3200 berbanding dolar daripada 3.3020/3050 pada penutupan Jumaat.
Seorang peniaga berkata kebimbangan di kalangan peserta pasaran melibatkan proses menyelamat Greece yang dibelenggu hutang, menyokong dolar untuk terus meningkat berbanding mata wang utama yang lain.Hari ini ringgit kebanyakannya diniagakan rendah berbanding mata wang utama yang lain.
Ia susut berbanding dolar Singapura kepada 2.3688/3734 daripada 2.3653/3697 Jumaat lepas serta yen Jepun pada 3.6636/6677 daripada 3.6486/6544 sebelumnya.
Ringgit juga susut berbanding euro pada 4.4922/4980 berbanding 4.4861/4905 Jumaat lepas namun mengukuh berbanding pound British kepada 4.9787/9857 daripada 4.9996/5.0051 sebelumnya.- Bernama
Dagangan Bursa Malaysia lemah
KUALA LUMPUR 22 Mac - Harga saham ditutup kebanyakannya rendah hari ini dengan pasaran berada dalam bahagian negatif susulan penurunan berterusan di kalangan saham wajaran tinggi, kata para peniaga.
Pasaran berdepan dengan penstabilan sementara dan dijangka memuncak pada akhir Mac, kata mereka.
Maybank Investment Bank berkata dalam laporan Penyelidikan Ekuitinya bahawa dengan potensi masalah hutang negara Greek yang timbul semula dan jangkaan keperluan bantuan daripada Tabung Kewangan Antarabangsa (IMF), dan India menaikkan kadar faedah, FBM KLCI mungkin terus berada di bawah tekanan jualan minggu ini.
Petunjuk pasaran Indeks Komposit Kuala Lumpur FTSE Bursa Malaysia (FBM KLCI) susut 2.95 mata untuk ditutup kepada 1,293.65.
Indeks Kewangan turun 1.261 mata kepada 11,496.47, Indeks Perladangan meningkat 1.13 mata kepada 6,354.28 manakala Indeks Perusahaan turun 10.10 mata kepada 2,607.81.
Sementara itu, Indeks FBM Emas berkurangan 15.61 mata kepada 8,707.55, FBM70 turun 14.82 mata kepada 8,511.77 dan Indeks FBM Ace susut 11.32 mata kepada 4,169.72.
Kaunter rugi mengatasi kaunter untung sebanyak 364 berbanding 301 manakala 280 kaunter tidak berubah, 403 tidak diniagakan dan 30 yang lain digantung.
Jumlah dagangan naik kepada 674.9 juta saham bernilai RM1.25 bilion daripada 574.7 juta saham bernilai RM1.12 bilion pada Jumaat minggu lepas.
Di kalangan kaunter wajaran tinggi, Maybank naik empat sen kepada RM7.28, Sime Darby susut empat sen kepada RM8.40, CIMB Group Holdings turun lapan sen kepada RM13.36 manakala Maxis meningkat tujuh sen kepada RM5.37.
Jumlah dagangan di Pasaran Utama menambah kepada 592.52 juta saham bernilai RM1.23 bilion daripada 501.328 juta saham bernilai RM1.099 bilion sebelumnya.
Jumlah dagangan Pasaran Ace naik kepada 48.55 juta saham bernilai RM6.28 juta daripada 38.752 juta saham bernilai RM6.864 juta pada Jumaat minggu lepas.Waran meningkat kepada 19.91 juta unit bernilai RM3.46 juta daripada 18.216 juta unit bernilai RM2.902 juta sebelumnya.
Barangan pengguna menyumbang 18.26 juta saham yang diniagakan di Pasaran Utama, barangan perusahaan 129.27 juta, pembinaan 52.42 juta, perdagangan dan perkhidmatan 172.09 juta, teknologi 30.22 juta, prasarana 9.912 juta, kewangan 84.51 juta, hotel 5.08 juta, harta 74.58 juta, perladangan 14.56 juta, perlombongan 47,000, REITs 1.51 juta, dan dana tertutup 16,000. - Bernama
Pasaran berdepan dengan penstabilan sementara dan dijangka memuncak pada akhir Mac, kata mereka.
Maybank Investment Bank berkata dalam laporan Penyelidikan Ekuitinya bahawa dengan potensi masalah hutang negara Greek yang timbul semula dan jangkaan keperluan bantuan daripada Tabung Kewangan Antarabangsa (IMF), dan India menaikkan kadar faedah, FBM KLCI mungkin terus berada di bawah tekanan jualan minggu ini.
Petunjuk pasaran Indeks Komposit Kuala Lumpur FTSE Bursa Malaysia (FBM KLCI) susut 2.95 mata untuk ditutup kepada 1,293.65.
Indeks Kewangan turun 1.261 mata kepada 11,496.47, Indeks Perladangan meningkat 1.13 mata kepada 6,354.28 manakala Indeks Perusahaan turun 10.10 mata kepada 2,607.81.
Sementara itu, Indeks FBM Emas berkurangan 15.61 mata kepada 8,707.55, FBM70 turun 14.82 mata kepada 8,511.77 dan Indeks FBM Ace susut 11.32 mata kepada 4,169.72.
Kaunter rugi mengatasi kaunter untung sebanyak 364 berbanding 301 manakala 280 kaunter tidak berubah, 403 tidak diniagakan dan 30 yang lain digantung.
Jumlah dagangan naik kepada 674.9 juta saham bernilai RM1.25 bilion daripada 574.7 juta saham bernilai RM1.12 bilion pada Jumaat minggu lepas.
Di kalangan kaunter wajaran tinggi, Maybank naik empat sen kepada RM7.28, Sime Darby susut empat sen kepada RM8.40, CIMB Group Holdings turun lapan sen kepada RM13.36 manakala Maxis meningkat tujuh sen kepada RM5.37.
Jumlah dagangan di Pasaran Utama menambah kepada 592.52 juta saham bernilai RM1.23 bilion daripada 501.328 juta saham bernilai RM1.099 bilion sebelumnya.
Jumlah dagangan Pasaran Ace naik kepada 48.55 juta saham bernilai RM6.28 juta daripada 38.752 juta saham bernilai RM6.864 juta pada Jumaat minggu lepas.Waran meningkat kepada 19.91 juta unit bernilai RM3.46 juta daripada 18.216 juta unit bernilai RM2.902 juta sebelumnya.
Barangan pengguna menyumbang 18.26 juta saham yang diniagakan di Pasaran Utama, barangan perusahaan 129.27 juta, pembinaan 52.42 juta, perdagangan dan perkhidmatan 172.09 juta, teknologi 30.22 juta, prasarana 9.912 juta, kewangan 84.51 juta, hotel 5.08 juta, harta 74.58 juta, perladangan 14.56 juta, perlombongan 47,000, REITs 1.51 juta, dan dana tertutup 16,000. - Bernama
MAS rises after CIMB upgrade
KUALA LUMPUR: Shares of MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) rose to a high of RM2.02 in early trade on Tuesday, March 23 after CIMB Equities Research turned bullish on the national carrier.
At 9.55am, it was up seven sen to RM2 with 2.19 million shares done.
CIMB Research turned bullish on MAS because (1) the rights issue is finally over and the stock remains depressed, lagging behind regional peers while analysts are almost universally bearish on MAS, unlike regional airlines for which the majority of calls are buys.
It added the other positive factors for MAS were the macroeconomic environment is improving, as evidenced by Singapore Airlines’ strong results for the December quarter and the major fleet renewal programme should contribute to significant unit cost reduction from 2011.
“We are upgrading MAS from Underperform to OUTPERFORM, with a target price of RM3 (6x CY12 core EPS), revised from RM1.95 (2x adjusted NTA). Potential rerating catalysts include analysts’ upgrades, improved results in 2010 from the global yield recovery, and a structural reduction in the airline’s unit cost from 2011 onwards,” it said.
At 9.55am, it was up seven sen to RM2 with 2.19 million shares done.
CIMB Research turned bullish on MAS because (1) the rights issue is finally over and the stock remains depressed, lagging behind regional peers while analysts are almost universally bearish on MAS, unlike regional airlines for which the majority of calls are buys.
It added the other positive factors for MAS were the macroeconomic environment is improving, as evidenced by Singapore Airlines’ strong results for the December quarter and the major fleet renewal programme should contribute to significant unit cost reduction from 2011.
“We are upgrading MAS from Underperform to OUTPERFORM, with a target price of RM3 (6x CY12 core EPS), revised from RM1.95 (2x adjusted NTA). Potential rerating catalysts include analysts’ upgrades, improved results in 2010 from the global yield recovery, and a structural reduction in the airline’s unit cost from 2011 onwards,” it said.
Market shows signs of further consolidation
KUALA LUMPUR: The market showed signs of further consolidation in early trade on Monday, March 22, with blue chips extending their declines, as the FBM KLCI was unable to retest the crucial 1,300 level.
At 9.56am, the FBM KLCI was down 1.5 points to 1,295.1. Turnover was 73.59 million shares valued at RM85 million. There were 121 gainers, 206 losers and 155 stocks unchanged.
Hwang DBS Vickers Research said with no visible buying catalysts in sight - key U.S. bellwethers were down between 0.3% and 0.7% at the closing bell on Friday - it expects share prices on Bursa to continue to drift downward for the time being.
"Nevertheless, we reckon the immediate downside risk for the benchmark FBM KLCI could be cushioned by its first support line of 1,280. This represents a mark down of 4.1% below the key market barometer's March 11 peak of 1,334.34," it said.
Hwang DBS Vickers Research said amidst the ongoing consolidation activity, IJM Corporation shares may attract a bit more interest. The CONSTRUCTION [] group has formally won a contract worth RM600 million to design and construct a highway extension in Sungei Besi over a period of 36 months.
Public Bank fell eight sen to RM11.56 while HLFG shed sin sen to RM7.88.
Among companies involved in the semiconductor equipment industry, Eng Tek lost seven sen to RM2.68 with 136,000 shares on profit taking while Globetronics eased four sen to RM1.22.
Port operator NCB was the top gainer, adding 16 sen to RM3.66 while CI Holdings added 14 sen to RM2.04 after a recent upgrade in its earnings outlook. Measat extended its gains, rising nine sen to RM2.85.
At 9.56am, the FBM KLCI was down 1.5 points to 1,295.1. Turnover was 73.59 million shares valued at RM85 million. There were 121 gainers, 206 losers and 155 stocks unchanged.
Hwang DBS Vickers Research said with no visible buying catalysts in sight - key U.S. bellwethers were down between 0.3% and 0.7% at the closing bell on Friday - it expects share prices on Bursa to continue to drift downward for the time being.
"Nevertheless, we reckon the immediate downside risk for the benchmark FBM KLCI could be cushioned by its first support line of 1,280. This represents a mark down of 4.1% below the key market barometer's March 11 peak of 1,334.34," it said.
Hwang DBS Vickers Research said amidst the ongoing consolidation activity, IJM Corporation shares may attract a bit more interest. The CONSTRUCTION [] group has formally won a contract worth RM600 million to design and construct a highway extension in Sungei Besi over a period of 36 months.
Public Bank fell eight sen to RM11.56 while HLFG shed sin sen to RM7.88.
Among companies involved in the semiconductor equipment industry, Eng Tek lost seven sen to RM2.68 with 136,000 shares on profit taking while Globetronics eased four sen to RM1.22.
Port operator NCB was the top gainer, adding 16 sen to RM3.66 while CI Holdings added 14 sen to RM2.04 after a recent upgrade in its earnings outlook. Measat extended its gains, rising nine sen to RM2.85.
FBM KLCI in the red at midday
Written by Chong Jin Hun
Monday, 22 March 2010 12:48
KUALA LUMPUR: Asian stock markets including FBM KLCI dived into a sea of red at midday Monday, March 22 as investors priced in the impact of further interest rate hikes by regional policymakers, besides the effects of advanced economies' public debt.
Analysts said most technical indicators on Malaysia's FBM KLCI were pointing towards further losses ahead for the gauge.
"As such, investors can expect a continuation of correction for at least early this week, before more significant buying support emerges at lower support levels," TA Securities Holdings Bhd wrote in note to clients.
"Moreover, the surprise increase of interest rates in India should dampen regional sentiment this week which would hence spillover to the local front."
At 12.30pm, the FBM KLCI fell 1.21 points to 1,295.39. Across the exchange, a total of 180 stocks gained compared to 361 decliners, resulting in 316.28 million shares worth RM456.02 million transacted.
Top gainer JERNEH ASIA BHD [] rose 51 sen to RM2.75 while the biggest decliner Tanjong plc fell 26 sen to RM17.70. Most active was Talam Corp Bhd which was up 0.5 sen to 12 sen with some 31 million shares done.
Across Asian markets, notable decliners include Hong Kong's Hang Seng which fell 1.85% to 20,974.53, and South Korea's Kospi which was down 1.04% to 1,668.58. Australia's S&P/ASX 200 dipped 0.79% to 4,833.90. Stock markets in Japan are closed for a holiday.
Meanwhile, US crude oil for April 2010 fell 58 cents to US$80.10 a barrel while spot prices for gold advanced US$1 to US$1,108 an ounce. Malaysian palm oil for May 2010 climbed RM7 to RM2,590 a tonne.
The ringgit was traded at 3.3208 versus the US dollar, 4.9682 against the pound, 4.4883 against the euro , 3.6703 versus the yen and 2.3726 compared to the Singapore dollar.
Monday, 22 March 2010 12:48
KUALA LUMPUR: Asian stock markets including FBM KLCI dived into a sea of red at midday Monday, March 22 as investors priced in the impact of further interest rate hikes by regional policymakers, besides the effects of advanced economies' public debt.
Analysts said most technical indicators on Malaysia's FBM KLCI were pointing towards further losses ahead for the gauge.
"As such, investors can expect a continuation of correction for at least early this week, before more significant buying support emerges at lower support levels," TA Securities Holdings Bhd wrote in note to clients.
"Moreover, the surprise increase of interest rates in India should dampen regional sentiment this week which would hence spillover to the local front."
At 12.30pm, the FBM KLCI fell 1.21 points to 1,295.39. Across the exchange, a total of 180 stocks gained compared to 361 decliners, resulting in 316.28 million shares worth RM456.02 million transacted.
Top gainer JERNEH ASIA BHD [] rose 51 sen to RM2.75 while the biggest decliner Tanjong plc fell 26 sen to RM17.70. Most active was Talam Corp Bhd which was up 0.5 sen to 12 sen with some 31 million shares done.
Across Asian markets, notable decliners include Hong Kong's Hang Seng which fell 1.85% to 20,974.53, and South Korea's Kospi which was down 1.04% to 1,668.58. Australia's S&P/ASX 200 dipped 0.79% to 4,833.90. Stock markets in Japan are closed for a holiday.
Meanwhile, US crude oil for April 2010 fell 58 cents to US$80.10 a barrel while spot prices for gold advanced US$1 to US$1,108 an ounce. Malaysian palm oil for May 2010 climbed RM7 to RM2,590 a tonne.
The ringgit was traded at 3.3208 versus the US dollar, 4.9682 against the pound, 4.4883 against the euro , 3.6703 versus the yen and 2.3726 compared to the Singapore dollar.
Market closes lower on India, Greece concerns
Tags: FBM KLCI | Greece | India | interest rates
Written by Insider Asia
Monday, 22 March 2010 17:34
Share prices on Bursa Malaysia closed mixed on Monday, March 22 faring slightly better than the region, which was down sharply after a surprise 25 basis points interest rate hike by India’s central bank on Friday night.
While an interest rate hike was expected to control India’s running inflation – which hit a 16-month high of 9.9% in February 2010, it was widely expected in April 2010, and not in between policy meetings.
This move re-triggered fears that other central banks in Asia may also step up monetary tightening measures, particularly China, which also faces an inflation and asset bubble problems. China recently saw higher than expected inflation in February 2010 .
Meanwhile, investors also continue to worry over Greece’s lingering debt problems, ahead of the European Union summit on 25-26 March 2010, amid concerns over whether European countries will agree to a support package.
These concerns caused the US dollar to rise against the euro, and commodity prices to slump on Friday, which extended into Monday. Several US economic data, notably on the housing sector, are due this week and will also influence trading ahead.
While the region was mostly in the red, shares on Bursa Malaysia fell less, due to the large falls in the past week and a half.
The FBM KLCI started the day in the red, falling four points, before recovering to be in marginally positive territory in the afternoon. A last minute bout of selling, however, saw it close three points lower at 1,293.7. Declining stocks beat advancing ones by a 7-to-6 margin at the close. Trading volume improved from 575 million to 675 million shares.
Actively traded stocks include Talam, KNM, Jerneh, Measat and AEM. Major gainers include Jerneh and its warrants, Keck Seng, Measat, Fima and Supermax. Losers include Tanjong plc, LaFarge Cement, Parkson, DiGi and Ho Hup.
Written by Insider Asia
Monday, 22 March 2010 17:34
Share prices on Bursa Malaysia closed mixed on Monday, March 22 faring slightly better than the region, which was down sharply after a surprise 25 basis points interest rate hike by India’s central bank on Friday night.
While an interest rate hike was expected to control India’s running inflation – which hit a 16-month high of 9.9% in February 2010, it was widely expected in April 2010, and not in between policy meetings.
This move re-triggered fears that other central banks in Asia may also step up monetary tightening measures, particularly China, which also faces an inflation and asset bubble problems. China recently saw higher than expected inflation in February 2010 .
Meanwhile, investors also continue to worry over Greece’s lingering debt problems, ahead of the European Union summit on 25-26 March 2010, amid concerns over whether European countries will agree to a support package.
These concerns caused the US dollar to rise against the euro, and commodity prices to slump on Friday, which extended into Monday. Several US economic data, notably on the housing sector, are due this week and will also influence trading ahead.
While the region was mostly in the red, shares on Bursa Malaysia fell less, due to the large falls in the past week and a half.
The FBM KLCI started the day in the red, falling four points, before recovering to be in marginally positive territory in the afternoon. A last minute bout of selling, however, saw it close three points lower at 1,293.7. Declining stocks beat advancing ones by a 7-to-6 margin at the close. Trading volume improved from 575 million to 675 million shares.
Actively traded stocks include Talam, KNM, Jerneh, Measat and AEM. Major gainers include Jerneh and its warrants, Keck Seng, Measat, Fima and Supermax. Losers include Tanjong plc, LaFarge Cement, Parkson, DiGi and Ho Hup.
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About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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