Monday, September 24, 2007

Joke of The Day

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This is hilarious...even an Englishman could not construct sentences using numbers! Exclusively only to great Malaysian and Singaporean........
Ah Lek was asked to make a sentence using ,2,3,4,5,6,7,8,9 and 10 . Not only did he do it 1 to 10, he did it again back to 1. This was what he came up with...

1 day I go 2 climb up a 3 outside a house to peep. But the couple saw me, so I panic and 4 down. The man rush out and wanted to 5 with me. I run so fast until I fall 6 and throw up. So I go into 7 eleven and grab some 8 to throw at him. Then I took a 9 and try to stab him. 10 God he run away. So, I put the 9 back and pay for the 8 and left 7 eleven. Next day, I call my boss and say I am 6 . He said 5 , tomorrow also no need to come back 4 work. He also asks me to climb a 3 and jump down. I don't understand, I so nice 2 him but I don't know what he 1 .

Thursday, September 20, 2007

Good News for Tamco Shareholders

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Tamco may sell switchgear business
By Sharen Kaur and Francis Fernandez

TAMCO Corporate Holdings Bhd is selling its switchgear business for some RM400 million to a foreign company, executives advising the company on the sale said.There may also be a capital repayment following the sale. ECM Libra Avenue Securities Sdn Bhd is advising Tamco on the sale. The buyer may be a Japanese, European or an Indian firm.

A source said that Larsen & Toubro Ltd, India's largest engineering firm, has made a bid. "The buyer should be able to substantially enhance the operations of Tamco and bring in international management and money to expand," said the source. Tamco, which owns the largest low and medium voltage switchgear factory in South-East Asia, is expected to make an announcement soon on the disposal.

In June, The Edge Weekly reported that Tamco will sell its business for RM388 million and return as much as RM1.50 a share to shareholders. Subsequently, Tamco informed Bursa Malaysia that it is looking to sell its switchgear business and that it has appointed Credit Suisse (Singapore) Pte Ltd and ECM Libra as advisers.

Tamco also said it could not comment on the RM1.50 capital repayment. For the year ended May 2007, Tamco posted a net profit of RM16.69 million versus RM6.05 million in the year before. Tamco has manufacturing plants in China, Australia, Indonesia and United Arab Emirates.

My comment: This has been the long awaited news. RM1.50 looks a fair target. Based on today's closing at 1.18 there is still an upside around 30 cent per share. Care to punt?

Monday, September 17, 2007

Market Update - 14 Sep 2007

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The stock market closed higher Friday, tracking the rally on Wall Street overnight on growing hopes the Federal Reserve will cut its fed funds rate next week and with investors picking up bargains among select index-linked companies.

The Kuala Lumpur Composite Index (KLCI) closed up 5.48 points or 0.4 percent at 1,289.50, off an intraday high of 1,294.68. For the week, the KLCI was down 15.4 points or 1.2 percent. The FTSE Bursa Malaysia 30-large cap index rose 33.40 points or 0.4 percent to 8,183.57 and the second board index was up 0.3 point or 0.3 percent at 104.70.

Gainers outpaced losers 498 to 290, with 288 stocks unchanged and 255 counters untraded. Trading volume was 833.481 million shares valued at 1.195 billion ringgit.

Index heavyweights closed mixed, with state-run Telekom Malaysia adding 10 sen or 1.1 percent to 9.55 ringgit, national power company Tenaga down 10 sen or 1 percent at 9.65 ringgit and Malaysia's largest bank Maybank down 10 sen or 0.9 percent at 11.40 ringgit.

Bumiputra-Commerce Holdings, the owner of Malaysia's second largest commercial bank, CIMB Bank, closed up 10 sen or 0.9 percent to 10.80 ringgit. The company said Thursday that it is interested in acquiring a stake in ACL Bank PCL of Thailand.

Stock exchange operator Bursa Malaysia led the advance among index-linked stocks, rising 55 sen or 5.6 percent to 10.30 ringgit. Timber company Ta Ann jumped 20 sen or 2.6 percent to 7.95 ringgit and, Malaysia's smallest mobile phone company, added 20 sen or 1.1 percent to 19.30 ringgit.

Construction giant Gamuda advanced 20 sen or 2.6 percent to 7.85 ringgit and oil and gas services provider Muhibbah gained 30 sen or 3.6 percent to 8.70 ringgit.

Budget carrier AirAsia was up 3 sen or 1.6 percent at 1.90 ringgit. The company said Thursday it will pay 26.7 million ringgit for a 20 percent stake in low-cost long-haul air services operator Fly Asian Xpress Sdn Bhd (FAX).

Interior fit-out company LCL Corp rose 12 sen or 2.6 percent to 4.72 ringgit. The company expects revenue from its 51-percent-owned Kazakhstan unit, LCL-SC Interior Creations LLP, to reach 50 million US dollars next year.

Astro All Asia Networks Plc declined 4 sen or 1.2 percent to 3.42 ringgit after Malaysia's largest pay-TV operator recorded a net loss of 54.2 million ringgit in the second quarter to July, due to a write-off of assets
and balances arising from its investment in Indonesia's PT Direct Vision.

CB Industrial Product Holding was up 2 sen or 0.4 percent at 4.60 ringgit after it said Thursday it has secured a contract worth about 29.97 million ringgit from Indonesia's PT TH Gambut Plantations.

In off market deals, Lembaga Tabung Haji continued to raise its stake in loss-making Silver Bird Group Bhd, acquiring another 4.82 million shares on Sept 11. A filing with Bursa Malaysia showed that after the recent acquisition, the pilgrimage fund board held 44.61 million shares or 20.79%. The new shares could be linked to the conversion of 6.56 million irredeemable convertible unsecured loan stocks 2004/2009 into 4.82 million shares of 50 sen each. These new shares were listed on Sept 11. Silver Bird had on Sept 6 received the Securities Commission's approval to issue up to 32.08 million shares or 10% of its enlarged issued and paid-up share capital. The issue price was fixed at 50 sen or, 19.25% above the five (5) day weighted average market price of 41.93 sen.

Datuk Lim Tong Yong, owner of a soap maker, has emerged as a substantial shareholder of Asia Poly Holdings Bhd, a maker of cast acrylic sheets. Lim, together with his son, Chang Ching, has bought about nine million shares, or 10 per cent of Asia Poly, a Mesdaq firm. This would make them the second biggest shareholder of Asia Poly. Teoh Cheng Chuan, the chief executive officer, controls Asia Poly with a 60 per cent stake as at July 31 2007. Lim is currently the single biggest shareholder of Pas Holdings Bhd, with 47.4 per cent. Lim and his son bought the stock on September 6. The price was not disclosed, Asia Poly said in a statement to Bursa Malaysia.

Datuk Seri Dr Ibrahim Saad, a former deputy chief minister of Penang, has teamed up with Welli Multi Corp Bhd's non-executive chairman to take over the company, people involved in the exercise said yesterday. Welli chairman Datuk Abdul Ghani Abdul Kadir, frustrated at the slow pace of restructuring Welli, is contemplating a management takeover of the second-board plantation company. Abdul Ghani, who owns shares in Hunza Consolidated Bhd and an executive director in fellow Penang-listed-entity Boon Koon Group Bhd, could not be reached for comment. An aide to the businessman told Business Times that Abdul Ghani has always been interested in Welli, and he is studying the best option to revive the fortunes of the company. It is understood that Ibrahim, Ghani and Datuk Jamaludin Abdul Rahim, a controlling shareholder of Perak-based CAJ Group, have accumulated sizeable number of shares of Welli in the open market.

QSR Brands Bhd, a fast-food chain operator, plans to raise an estimated RM102.3 million from a rights issue to fund working capital and cut debt. The company, a subsidiary of Kulim (Malaysia) Bhd, has proposed a renounceable rights issue of 40.91 million new shares and 40.91 million free detachable warrants. The exercise involves offering one rights share with one free detachable warrant for every six shares held on a date to be determined,. QSR runs the KFC restaurant chain as well as the Pizza Hut outlets nationwide. Based on an indicative price of RM2.50 a share, the rights issue would raise some RM102.28 million.

Malaysian construction firm WCT Engineering Bhd has won a 457 million ringgit contract to build two office towers in the Malaysian administrative capital of Putrajaya.

Melati Ehsan Holdings Bhd plans to develop a RM1 billion mini township, known as Bandar Sentul Utama, over five years. Project director Mohd Zainudin Badarudin said he was confident of good sales, helped by new incentives announced recently. "Land is scarce now in Sentul and we will carefully plan the township project to seize rising opportunities. There will be four phases," Zainudin said. The first phase, covering five hectares, consists of four blocks of condominiums with a total of 950 units. Each unit is priced from RM131,560 to RM180,000 for sizes ranging between 828 square ft and 1,029 square ft.

Sarawak based Swee Joo Bhd, through its subsidiary Johan Shipping Sdn Bhd, has recently received one of the two 7,000-tonne product tankers from China, thus making its foray into the crude palm oil transport within the region. Asia Star, built at a cost of US$12 million (RM41.76 million), was delivered in mid-August. Swee Joo group chairman Alexander Nanta Linggi said the tanker would be deployed along the Southeast Asia's routes covering Vietnam, south China, Sabah and Sarawak. Swee Joo owns and operates 31 vessels comprising 14 container, 10 general cargo and seven support vessels.

Henry Butcher Malaysia Sdn Bhd, a property consultant, and Malaysia Airlines (MAS) have teamed up to woo foreigners to buy properties in Penang. For starters, Henry Butcher's chief executive officer Dr Teoh Poh Huat said they will target 7,500 foreigners. "In the medium term, we intend to double the number within four to five years and in the long term, we are aiming to achieve a target of 25,000 foreigners in the state," Teoh said prior to the signing of a deed of collaboration between Henry Butcher and the national carrier recently.

Three out of four of its recently appointed directors of The Ayer Molek Rubber Co Bhd, turned up at its extraordinary general meeting (EGM) on Sept 14 to ensure it did not go on as proposed. Minority shareholders-appointed directors - chairman Datin Mariam Prudence Yusof, non-executive director Dr Jamal Bin Yusof @ Gordon Duclos and executive director Goh Joon Hai - were there to ensure that the current board, headed by executive chairman Adlin Shaharudin would not "spring a surprise" said Goh. The fourth appointee Syed Khalil Syed Ibrahim did not attend the EGM. Goh said the minority shareholders wanted to study the accounts of the company but the office had since been sealed.

Aa part of its strategy to penetrate the international markets, Emirates Investment & Development Co PSC (Emivest) has acquired a 15 per cent stake in Mesdaq-listed ETI Tech Corp Bhd. Emivest chairman Buti Saeed Ghandi said over the past 10 years, the firm has been acquiring shares and getting into partnership on a national and regional scale.

Property developer and resorts operator Karambunai Corp Bhd wants to develop a RM200 million tourism project in Sabah, which will include a theme park. Chief executive officer Datuk Robin HL Loh said the firm has
submitted a comprehensive proposal to Bank Pembangunan Malaysia Bhd. The bank manages the tourism infrastructure fund, which has been allocated RM200 million for tourism projects in Sabah and Sarawak.

A Middle East consortium plans to invest at least 5.0 billion ringgit (1.44 billion dollars) in Malaysia's energy, Islamic banking and property sectors, a report said Saturday. The consortium is led by Qatar General Insurance and Reinsurance company, Gulf Petroleum Ltd Qatar and other leading investment and banking groups from the Gulf region, the New Straits Times said. Qatar General Insurance chairman Sheikh Nasser Ali Saud Al-Thani said in a statement released by his legal firm that the group has begun talks on oil and gas projects with the relevant bodies in Malaysia and neighbouring countries.

Synergy Drive Bhd has announced the appointment of six new board members with immediate effect. The new board members are Tan Sri Dr Wan Mohd Zahid Mohd Noordin, Tan Sri Dr Ahmad Tajuddin Ali, Raja Datuk Arshad Raja Tun Uda, Datuk Seri Panglima Andrew Sheng Len Tao, Datuk Mohamed Sulaiman and Datuk Seri Ahmad Zubir Murshid. This is alongside current directors Tan Sri Md Nor Yusof, who is also the chairman of
Synergy Drive, Datuk Zainal Abidin Putih and Wan Razly Abdullah Wan Ali.

YNH Property Bhd plans to launch luxurious residential and commercial projects with an estimated gross development value (GDV) of RM2.1bil in Kuala Lumpur in late 2007 and early 2008. Group financial controller Y.M. Chan said the highlights were the RM300mil Duta Kiara 163 Suites and the RM600mil D'Kiara Place that would start construction in early 2008.

Analysts are generally positive on Bumiputera-Commerce Holdings Bhd (BCHB)'s plan to take a stake in Thailand's ACL Bank but aren't rushing to raise their target price for the stock yet. The 19.26 per cent stake in ACL Bank - for which BCHB's CIMB Investment Bank is bidding against China's Industrial and Commercial Bank of China (ICBC) - is expected to cost the group around RM200 million-RM220 million. ACL Bank, estimated to account for just 0.5 per cent of total loans and 0.4 per cent of total deposits in Thailand, is one of its smallest lenders with 12 branches nationwide.

Scomi Engineering Bhd is expected to ride the hive of activity and investments ploughed into the oil and gas (O&G) sector, but it is the monorail business that is the big and lucrative wild card to its future performance. "There is no let-up in demand for O&G. We are investing heavily in that business,'' Scomi Engineering president Hilmy Zaini Zainal said. "But we have also entered into a business that we will be focusing more on in the future. We believe monorail is the future, especially for the cities in this region.'' O&G is and has been for long the lifeblood of Scomi Engineering. The company's involvement in that sector is via its numerous machine shops sprinkled to the far corners of Asia that serve the big names in the energy sector. Hilmy explained that Scomi Engineering, which will probably migrate to the main board of Bursa Malaysia next year, currently got the bulk of its revenue from its machine shops.

National mortgage corporation Cagamas Bhd may consider taking up stakes in foreign companies that are keen to replicate its successful mortgage model, its top executive said. Cagamas intends to provide consultancy services to foreign parties interested to copy its model as a route to future investments if the opportunity permits. Having received multiple invitations over the years, Cagamas has set up a consultancy unit within the firm to gauge the viability of such cross-border plans. Its president and chief executive officer Steven Choy said the "small" consultancy unit allows Cagamas to explore and evaluate overseas possibilities when it arises.

Gadang Holdings Bhd, which generates the bulk of its profits from civil engineering, construction and property development, is now banking on utilities to improve its profits. Managing director and chief executive officer Datuk Kok Onn said the company is targeting its utilities division to contribute 25 per cent of profit by 2011, from five per cent currently, following plans to acquire new water-supply concessions overseas. It is exploring opportunities in Indonesia, China, Vietnam as well as locally to grow the division. Gadang posted net profit of RM14.2 million on revenue of RM226 million last year, up 19.3 per cent and 21.8 per cent respectively.

Sales at Aeon Co (M) Bhd, Isetan of Japan Sdn Bhd and other retailers in Malaysia may increase eight per cent in 2008, helped by government measures to put more money in the hands of consumers. Retail sales may rise to RM69.4 billion from RM64.2 billion this year, said Tan Hai Hsin, managing director of the Kuala Lumpur-based Retail Group Malaysia. Retail Group provides forecasts and conducts quarterly retail sales surveys for the 100-member Malaysian Retailers Association.

The Dow added a few points Friday, rising at the end of a volatile session in which investors weighed downgrades of American Express and Intel and a weak retail sales report ahead of next week's Federal Reserve meeting.

The Dow Jones industrial average (up 27.72 to 3,452.60) rose 0.1 percent, according to early tallies. The broader S&P 500 (up 0.87 to 1,484.82) index ended the session little changed, as did the tech-heavy Nasdaq composite (up 1.40 to 2,602.46).

Stocks slipped in the early going after the retail sales report raised worries that the problems in housing and credit markets are spreading to the broader economy. But the selling pressure proved erratic as the session wore on, with investors turning their focus to Tuesday's Fed policy meeting.

Trading volume was light due to Rosh Hashanah, the Jewish New Year.

Retail sales rose just 0.3 percent in August, from an upwardly revised 0.5 percent in July. Economists surveyed by thought sales would rise 0.5 percent. Excluding autos, retail sales fell 0.4 percent in August after rising an upwardly revised 0.7 percent in July. Economists thought sales excluding autos would rise 0.2 percent in August, on average. The report seemed to speak to fears that ongoing problems in the credit and mortgage markets are spreading to consumer spending, which fuels roughly two-thirds of economic growth. A separate report showed a weaker-than-expected rise in industrial production.

However, the retail sales news was countered by other more positive items, including a report showing that consumer sentiment rebounded a little in September after a drop in August.

The University of Michigan's consumer sentiment index rose to 83.8 in September from 83.4 in August. Economists thought it would rise to 83.5.

In addition, Wall Streeters could be figuring that the weak retail sales report makes it more likely that the Federal Reserve will cut a key short-term interest rate by a half-percentage point when it meets next week.
Treasury prices rose, with the yield on the 10-year note at 4.46 percent little changed from late Thursday.

U.S. light crude oil for October delivery fell 99 cents to settle at $79.10 a barrel on the New York Mercantile Exchange after ending the previous session at a record closing high. However, the record price is still below inflation-adjusted highs hit in the early 1980s, which would be equal to at least $95 a barrel today. Oil prices have advanced about 30 percent in 2007.


Thursday, September 13, 2007

Market Updates - 12 Sep 2007

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The stock market closed easier yesterday, erasing earlier gains after last-minute profit-taking, especially in finance and property counters, sent the Kuala Lumpur Composite Index (KLCI) to close 0.39 point lower at 1,285.94

Throughout the trading session, the KLCI moved between 1,285.14 and 1,285.94. It opened 5.51 points higher at 1,291.84. The Second Board Index eased 0.45 point to 104.98. Of the FTSE-BM Index series, the FBMEmas fell 8.32 points to 8698.57 and the FBM30 was down 0.65 points at 8156.33.

Decliners outnumbered advancers by 509 to 303 while 266 counters were unchanged, 317 untraded and 29 others suspended.

Of the top gainers, Tanjong plc rose 60 sen to RM8.20, Kuala Lumpur Kepong gained 50 sen to RM11.90 and Lion Diversified went up 30 sen to RM11.90.

Among the top losers, HWL-C2 lost RM1.50 to RM35.50, MISC went down by 50 sen to RM9 and DFZ Capital eased 32 sen to RM2.98.

Among the heavyweights, Maybank lost 20 sen to RM11.40, Tenaga Nasional and Telekom Malaysia eased 15 sen each to RM9.75 and RM9.60 respectively, while Bumiputra-Commerce climbed 10 sen to RM10.70.


Volkswagen AG has not yet agreed to the possible purchase of a stake in Malaysian carmaker Proton, VW's chief executive told a German newspaper on Wednesday. Asked by the Frankfurter Allgemeine Zeitung newspaper if it was true that VW planned to take a 20 percent stake in Proton and possibly raise it to more than 50 percent later, VW's Martin Winterkorn said: "This has not yet been agreed, but it could go in that direction." VW was interested in Proton's dealership network, Winterkorn said in the interview, which was released in the paper's Internet edition ahead of publication on Thursday. Winterkorn also said there were no signals from large shareholder Porsche that it wanted to raise its stake in VW to more than 50 percent.

Leading independent power producer (IPP) Malakoff Corp Bhd plans to inject new assets into its portfolio to grow the company in a bid to sell shares in the next five to six years. It is understood that Malakoff is looking at acquisitions and contracts to build power and desalination plants in the Middle East and Southeast Asia, and is in direct negotiations with its foreign partners. Sources told Business Times that Malakoff expects to clinch some deals in two to three years and increase its earnings before planning to list.Malakoff, formerly known as Nucleus Avenue (M) Bhd, is a special purpose vehicle of MMC Corp Bhd, both controlled by Tan Sri Syed Mokhtar Al-Bukhary. It acquired the business of Malakoff Bhd in a RM9.3 billion deal to take it private. The firm was delisted from Bursa Malaysia on July 18.

Equine Capital Bhd is seeking to raise its 25 per cent stake in associate company, Abad Naluri Sdn Bhd, to develop the multi-billion ringgit Penang Global City Centre (PGCC) project in George Town. Executive chairman Datuk Patrick Lim yesterday said the move would facilitate financing options for the RM25 billion project, which may include finding new partners or raising funds from the capital market, including a bond sale.

Bursa reprimanded property developer Prime Utilities Bhd on Wednesday over a $34 million difference between its audited and unaudited financial results in fiscal 2006. The difference amounted to 117.9 million ringgit ($34 million), Bursa said, ordering Prime to get an external auditor to perform a limited review of its quarterly reports before making an announcement on its results.

Offshore marine services provider Petra Perdana Bhd has signed a memorandum of agreement with shipbuilder Nam Cheong Dockyard Sdn Bhd to buy four new offshore support vessels for about RM274mil. The vessels comprise two 300-men work barges and two 165-men workboats. Executive chairman and chief
executive officer Tengku Datuk Ibrahim Petra Tengku Indra Petra said the company had been focusing on developing its marine assets and resource capabilities to cater for the growing demand of the upstream oil and gas industry.

SAAG Consolidated (M) Bhd plans to enter deepwater oil and gas activities with its proposed acquisition of an effective 35% stake in Persada Nuri Sdn Bhd (PNSB). PNSB is in a three-year joint venture with Labuan Shipyard & Engineering Sdn Bhd to develop the Labuan shipyard to support deepwater activities in the area. In an announcement to Bursa Malaysia yesterday, SAAG said there was immense potential for the shipyard due to Labuan's location in the centre of Malaysia's deepwater activities.

Malaysian insurance software firm Rexit Bhd is not in talks to be taken private or be delisted, the firm said to the stock exchange on Wednesday. It was responding to a query from the Malaysian stock exchange over a newspaper report.

K&N Kenanga Investment Bank Bhd (KIBB) has formed a strategic alliance with South Korea's Goodmorning Shinhan Securities Co Ltd (GMSH) to pursue cross border business opportunities in the financial services industry. Holding company K&N Kenanga Holdings Bhd in a filing with Bursa Malaysia on Tuesday said the two parties signed a memorandum of understanding (MoU) that day. The MoU will be for three years and comes into effect from the date of signing.

Malaysia's top mobile phone firm Maxis Communications Bhd denied on Wednesday a Times of India newspaper report that it planned to exit its Indian Aircel unit -- its second denial in less than a month. The Indian newspaper had said speculation was mounting that Maxis was exiting India by selling its stake in Aircel Cellular, with India's Reliance Communications Ltd a possible buyer. Maxis holds 74 percent in Aircel Cellular Ltd, while the owners of south India-based Apollo Hospitals Enterprises control the rest.

Thai AirAsia, a unit of Malaysian budget airline AirAsia planned to sell shares on the Thai bourse in an initial public offering in the next three years. Proceeds from the IPO would be used to repay its 1.4 billion baht
($41 million) debt, chief executive Tassapon Bijleveld told reporters. He gave no detail how much money was to be raised. "We expect to do it in the next two and a half or three years. We will consider more details," he
said. Thai Air Asia is 49 percent owned by AirAsia, Asia's largest budget carrier. The rest is held by a Thai businessman and airline executives.

Plastic parts maker LCTH Corp Bhd is planning a capital repayment of 72 million ringgit ($20.50 million) following the sale and lease back of factory buildings and land, the firm said on Wednesday. Under the plan, it
will sell and then lease back the assets, located in south Johor state, to a real estate fund, raising 80 million ringgit. The firm will then return 72 million ringgit to shareholders through a bonus issue on the basis of
one new share for every five owned, with the remainder of the money used for working capital and expenses, it said.

Construction firm Ahmad Zaki Resources Bhd (AZRB) expects its oil and gas business to contribute positively to the company's earnings, following the acquisition of a 20.5 per cent stake in Eastern Pacific Industrial Corp
(Epic) Bhd. Its chairman Raja Datuk Seri Aman Ahmad said the company is looking at 10-15 per cent contribution from the sector to its revenues starting next year.

Ranhill Bhd has not ruled out the possibility that Ranhill Power Bhd could be relisted in the future, following plans to add value to the company after taking it private this year.Ranhill Power is expected to be de-listed from the official list of Bursa Malaysia Securities by October or November this year. Executive director Datuk Chandrasekar Suppiah said Ranhill plans to take Ranhill Power private to consolidate the company under the Ranhill group to maximise returns. He said going forward, the plan is to grow its power capacity from 380 megawatts (MW) currently to a minimum of 1,000MW in five years.

Media Prima Bhd has signed a pact with UDA Holdings Bhd to help raise the latter's branding efforts through television programmes. The two parties inked a memorandum of understanding (MoU) yesterday which will result in UDA's products - which include residential properties, hotels and shopping malls - being featured or promoted through programmes produced by Media Prima.

FACB Industries Inc Bhd has laid out a five-year business plan which will see it expanding aggressively across segments, ensuring a strong uptrend in its revenue and profits over the period and beyond. Chief operating officer Chua Tiam Wee said that for starters it would set up a plant to make fittings in Vietnam. The facility, costing RM25mil, would boost its production capacity and buoy earnings.

Toyota will launch an upgraded version of its Altis model next year in Malaysia as part of efforts to boost its market presence. This is in view of Proton consolidating its market hold through strategic alliances while rival car manufacturers were introducing newer models at a faster rate, said UMW Toyota Motor Sdn Bhd managing director Datuk David Chen.

Singapore real estate company Mapletree Investments Pte Ltd has plans to acquire some RM200 million worth of Malaysian assets. "We are looking at assets in Kuala Lumpur, Johor, Penang and key cities in Malaysia," Mapletree executive vice-president Phua Kok Kim told a media briefing in Kuala Lumpur yesterday. Its nominee company Mapletree MIF Malaysia Sdn Bhd yesterday signed a sales and purchase agreement with Classic Advantage Sdn Bhd, a subsidiary of plastic precision moulding manufacturer LCTH Corp Bhd, for the sale of land and six blocks of factories and an office block in Senai for RM80 million.

The Minority Shareholder Watchdog Group (MSWG) wants more transparency when it comes to revealing the remunerations of company directors and is demanding greater disclosure. Based on the findings of the Directors Remuneration Survey 2007, less than 10 per cent, or 48, of the 500 public-listed companies (PLCs) surveyed disclosed individual directors' remuneration. The survey also revealed that 0.4 per cent of the companies made some kind of disclosure in linking corporate performance to directors' remuneration; while 12 per cent, or 62 companies, do not have remuneration committees.


Stocks slipped Wednesday, after a volatile session in which investors mulled record oil prices and a falling U.S. dollar ahead of next week's Federal Reserve policy meeting.

The Dow Jones industrial average (down 16.74 to 13,291.65) lost a few points, while the broader S&P 500 (up 0.07 to 1,471.56) index ended little changed. The tech-fueled Nasdaq composite (down 5.40 to 2,592.07) lost 0.2 percent.

Stocks rallied Tuesday on bets that the Federal Reserve will cut a key short-term interest rate by as much as a half-percentage point when it meets next week. Such bets continued to soothe Wall Streeters Wednesday,
but any confidence in the Fed was countered by surging oil prices and a falling U.S. dollar.

Meanwhile, crude oil surged after the government's weekly report showed a surprise drop in crude oil inventories. U.S. light crude oil for October delivery rose $1.68 to settle at $79.91 a barrel on the New York Mercantile Exchange, briefly hitting an all-time trading high of $80.05 a barrel. However, the record price is still below inflation-adjusted highs hit in the early 1980s, which would be equivalent to at least $95 a barrel today. Oil prices have advanced about 30 percent in 2007.

Treasury prices fell, raising the yield on the 10-year note to 4.41 percent from 4.37 percent late Tuesday.

In currency trading, the dollar fell to a record low versus the euro and was little changed against the yen.

Friday, September 07, 2007

Market Updates - 6 Sep 2007

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The stock market closed mixed yesterday with the early weak trend following concerns over the US economic developments reversed in the late afternoon on speculative buying ahead of the unveiling of Budget 2008 today.

The Kuala Lumpur Composite Index (KLCI) added 0.92 point to close at 1,298.85. It opened at 1,289.74 and hit an intra-day low of 1,286.41 before rebounding. Of the FTSE-BM Index series, the FBMEmas lost 16.40 points to 8,821.74 and the FBM30 shed 2.86 points to 1,237.81.

Gainers outnumbered losers by 521 to 326 while 246 counters were unchanged, 298 untraded and 29 suspended.

Turnover increased to 1.326 billion shares worth RM1.937 billion from 1.022 billion shares worth RM1.775 billion on Wednesday.

Pre-budget speculative buying gave property and oil and gas sectors a boost. Among the active stocks, Iris gained seven sen to 32 sen, Land & General lost eight sen to 75 sen, GPA gained 3.5 sen to 22 sen, SapuraCrest added nine sen to RM2.10 and Transmile rose 57 sen to RM5.05.

Among blue chips, Maybank was unchanged at RM11.70, Tenaga lost 10 sen to RM10.20, MISC shed 25 sen to RM9.30 and Genting added 20 sen to RM7.95.

Shares in Transmile Group Bhd seem to have sprung back to life, charging ahead yesterday to an intra-day high of RM5.40, up 92 sen from the previous day's close. The stock finished at a five-week high of RM5.05, rising 57 sen or nearly 13%. Yesterday's trading volume soared to 31.9 million shares. This is possibly the biggest volume recorded since the stock was listed in June 1997. Investment analysts attributed the sudden surge in buying interest to the nascent optimism that the chartered freight service provider would turn around under the stewardship of the new management led by managing director Wong Yoke Ming. Furthermore, Wong's remark that there was no indication that major shareholders Kuok group and Pos Malaysia Bhd would "abandon ship" boosted the investing public's confidence on Transmile.

Shares in Dialog Group Bhd also saw active trade yesterday on talk that a multinational oil and gas company may emerge as a substantial shareholder in the firm. Analysts said any potential sale by Dialog's existing shareholders would probably be at a premium to the share's current price. This, they added, was to reflect Dialog's healthy balance sheet and strong growth prospects. The stock was up 2 sen at RM1.78 on volume of 5.5 million shares after hitting an intra-day high of RM1.83.

Meanwhile, in off market news, Koperasi Permodalan Felda Bhd reduced its shareholding in Mah Sing Group Bhd to 58 million shares after it disposed of two million shares on Sept 4. A filing with Bursa Malaysia showed that after the disposal, the cooperative's shareholding was reduced to 9.34%. The share price of the property company closed at RM2.07. It posted net profit of RM20.42 million for the second quarter ended June 30, up RM16.48 million a year ago. Earnings per share was four sen while net asset per share was RM1.19.


An extraordinary general meeting (EGM) requisitioned by minority shareholders of The Ayer Molek Rubber Co Bhd will proceed as planned today, a spokesperson said, despite the company seeking to have the meeting deemed illegal.The EGM, which seeks to remove all seven of the company's directors, promises to be an interesting affair. According to Goh, 678 of the company's 2,030 shareholders have submitted proxies and 46 others have indicated that they will come in person to the EGM. This brings to total 724 people that could turn up, which collectively hold 34 per cent of the company, he said. The directors don't own shares in the company.

Analysts are keen on Melewar Industrial Group Bhd as its investment in an Australian iron ore mining company has hit paydirt, paving the way for potentially higher dividends for shareholders. Melewar has a 14.6 per cent stake in Perth-based Gindalbie Metals Ltd, which yesterday signed a deal with a leading Chinese iron ore and steel company - Anshan Iron & Steel Group Corp (Ansteel) - to spend A$1.8 billion (RM5.2 billion) to develop two iron ore projects in Australia. Gindalbie's share price rose to a record A$1.80 prior to that. This means that its investment in Gindalbie is now worth more than Melewar's entire market value of about RM381 million in Malaysia. Meanwhile, market sources say Melewar is looking to sell part of its stake in Gindalbie to realise some of its investment gains. "It is estimated that Melewar is looking to place out ten to 12 million shares out of the 74 million shares the group owns. Assuming the price is transacted at A$2, the group would recognise RM40 million to RM49 million in exceptional gain, after deducting 30 per cent gain tax imposed by the Australian government," Kamarulzaman said. Should the company keep half of the gain for reinvestment and use the balance to pay dividends, Melewar's shareholders could be in for an additional 10 sen payout, he said. "Coupled with the expected gross dividend of 12 sen (or 9 sen tax-exempt versus 6 sen tax-exempt in fiscal year 2007) in fiscal year 2008, which will be derived from its improving operation, the total distribution will be 22 sen, which translates into a phenomenal dividend yield of 13.1 per cent,"
he noted.

Permodalan Nasional Bhd says it preferred not to speculate on the board composition of Synergy Drive Bhd. President and chief executive officer Tan Sri Hamad Kama Piah Che Othman declined to say if the board that will take charge of the conglomerate has been been finalised.

National carmaker Proton Holdings Bhd will bank on more variants and new models over the next two years to regain market share. Proton, once the market leader in the local automotive market, controlled about 60 per cent of the market share in 2002. This has fallen to some 23 per cent currently, amid tough competition from foreign rivals.Proton will launch its Iswara replacement model in January next year. More variants of existing models will come next year, followed by a completely new model in 2009.

Further measures to tap Middle East funds are expected to be announced in today's budget, sources said. This follows the investment of US$1.2bil in acquisition of land at the Iskandar Development Region (IDR) by three
consortia from the Middle East. "Tapping investments from the Middle East will be a theme in this budget," a source told StarBiz. "The recent investment in the IDR is proof that Malaysia is capable of tapping wealth from the Middle East and there will be greater effort to try and get more of that money here." StarBiz had reported that apart from the land cost, overall investments at the three nodes of the IDR were projected at about US$12bil, with the Mubadala group of Abu Dhabi coming in with more than half of the expenditure.

Managed services provider VADS Bhd has secured its maiden offshore contract for contact centre services from Singapore-based mobile company MobileOne Ltd. Under this five-year contract of up to 200 seats, the company will provide managed contact centre services, which will involve fully managed facility and technology as well as providing personnel for customer care operations.

Second board-listed Hai-O Enterprise Bhd yesterday said Bursa Malaysia had approved in-principle the transfer of its entire shares to the main board.

SEG International Bhd (SEGi) has sold a four-hectare land where SEGi College stands in Kota Damansara, Petaling Jaya to AmanahRaya Real Estate Investment Trust (ArREIT) for RM145 million. SEGi and ArREIT, represented by CIMB Trustee Bhd, also sealed another deal allowing it to lease the property for 10 years, with an option of another five years. SEGi said the disposal was to unlock its capital resources from being tied up in
long-term assets and allow it to focus on its core business activities of providing educational and training services.

Kumpulan Guthrie Bhd aims to increase the annual production of clonal palms to two million units in the medium term. In a statement, the group said its research and development arm Guthrie Biotech Lab Sdn Bhd is able to produce 350,000 clonal palms annually. Clonal palms produced via tissue culture at laboratories have superior qualities capable of yielding more than 35 tonnes of fresh fruit bunches and have an oil extraction rate of more than 25 per cent - thus, giving a crude palm oil yield of more than eight tonnes in a hectare annually.

TMC Life Sciences Bhd is installing a multi-million ringgit integrated hospital information system at its flagship Tropicana Medical Centre and other branches in Sarawak, Johor and Selangor. Called the Total Hospital Information System (THIS), TMC Life has hired India's Sobha Renaissance Information Technologies Pte Ltd and People Associates Sdn Bhd to make the system ready for use by year-end.

IOI Corp Bhd made it to the third annual Forbes Asia Fabulous 50 List for the second year in a row, again becoming the sole Malaysian company to get on the list thus far. Forbes noted that IOI Corp, Malaysia's largest palm oil producer, posted sales of US$2.518mil and had a market value of US$8.857mil. The Fabulous 50 List, which appears in the Sept 17 issue of Forbes Asia, covers only companies with revenues or market capitalisation of at least US$5bil, and a five-year record of operating profits and return on equity. Other criteria include long-term profitability, sales and earnings growth, stock price appreciation and projected earnings. Indian companies led this year's list with 12, followed by Taiwan with 10 and seven companies from China.

Malaysia's international reserves stood at $96.8 billion on Aug 30, down 1.6 percent from mid-August, data from the central bank showed on Thursday.The reserves were enough to finance 8.8 months of retained imports and were 7.1 times the short-term external debt, Bank Negara said in a statement.

Weaker orders for electrical and electronic products may continue to affect Malaysia's industrial production in July. The Industrial Production Index (IPI), which monitors the growth of manufacturing, mining and electricity sectors, is expected to grow by 1.13 per cent in July, according to a Business Times poll of research houses. The Statistics Department is to release the data today.

Financial and property firm RCE Capital Bhd will raise up to 1.5 billion ringgit ($427.7 million) through the sale of asset-backed bonds, RCE said on Wednesday. Funds raised would be used partly for working capital, it

The Baltic Dry Index (BDI) crossed the psychological 8,000-point level, closing at a new high of 8,090 on Wednesday. With the latest surge in the index, the BDI, which measures commodity shipping costs of various routes and ship sizes, has averaged 6,950 so far in the current quarter, 16% higher than the average 5,983 in the second quarter this year. The average in the current quarter is 93% higher than the average 3,593 in the
corresponding quarter last year.

In results, Bank Islam Malaysia Bhd bounced back with RM251 million in net profit for the year to June, its highest earnings ever, driven by the recovery of bad loans and a turnaround in operation. Total income grew
nine per cent to a record RM1.03 billion, which also marks the bank's full recovery from the last two years of losses, managing director Datuk Zukri Samat said. Bank Islam posted a loss before zakat and tax of RM1.28 billion in fiscal 2006, on revenue of RM948.87 million.


Stocks rose Thursday, recovering a bit after the previous session's big selloff, but gains were limited ahead of Friday's big monthly jobs report.

The Dow Jones industrial average (up 57.88 to 13,363.35) and the broader S&P 500 (up 6.26 to 1,478.55) index both gained around 0.4 percent. The tech-fueled Nasdaq Composite (up 8.37 to 2,614.32) gained 0.3 percent.

The major gauges had been on both sides of unchanged throughout the session as investors mulled upbeat August retail sales, volatile oil prices and the day's economic news, ahead of Friday's labor market report.

Employers are expected to have added 110,000 jobs to their payrolls in August after adding 92,000 in July.

On Thursday, the ADP employment report, which measures hiring in the private sector, showed surprisingly weak job growth, and could be a harbinger for Friday's broader national report.

But other recent economic reports were more positive, including Thursday's readings on weekly jobless claims, productivity and the services sector of the economy.

Meanwhile, another report Thursday showed a record number of homes entered the foreclosure process in the second-quarter, reflecting the ongoing problems in subprime and housing.

Treasury prices slipped a bit after Wednesday's big rally, raising the yield on the 10-year note to 4.50 percent from 4.46 percent late Wednesday. Bond prices and yields move in opposite directions.

In currency trading, the dollar fell versus the euro and inched higher against the yen.

U.S. light crude oil for October delivery rose 56 cents to $76.29 a barrel on the New York Mercantile Exchange. Oil prices were volatile after the weekly inventory report showed a drop in crude supplies and a big rise in distillates, which are used to make heating oil.

Thursday, September 06, 2007

AmResearch Overweight On Malaysia Property Sector

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DJ MARKET TALK: AmResearch Overweight On Malaysia Ppty Sector
0355 GMT (Dow Jones) STOCK CALL:
AmResearch stays Overweight on property sector ahead of Budget 2008 (Sept. 7) on hopes of new incentives being unveiled. Analyst says stamp duty on purchase of property may be revised down or completely removed for mass residential market to reduce overhang in low-to-medium cost property segment. Automatic conversion of leasehold land upon expiry would benefit companies such as MK Land (8893.KU), while possibility of revamp in Employees Provident Fund to allow monthly contributions to offset monthly mortgage payments may drive demand for new houses. Analyst says expectations are strong government will reduce withholding tax for REITs.

Among top picks, RB Land (5215.KU) at Buy with MYR4.10 target, SP Setia (8664.KU) at Buy with MYR11 target, WCT Land (9156.KU) at Buy with MYR2.85 target, Selangor Properties (1783.KU) at Buy with MYR8.50 target, Sunrise (6165.KU) at Buy with MYR4.24 target and YNH Property (3158.KU) at Buy with MYR3.90 target. Among REITs, keeps Atrium (5130.KU) at Buy with MYR1.48 target, likes Hektar (5121.KU); not rated. (VGB)

Wednesday, September 05, 2007

Best Housing Loan Package

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Your mortgage/home loan may be the single largest commitment that you have. For most people, servicing the home loan takes up between 40-50% of their monthly take home pay. That is a lot for a burden you have to bear for the duration of the loan tenure (15-30 years).

Finding the right home loan can be a long and difficult process.

In Malaysia, there are now 26 lenders, and they change their deals and rates daily. It's almost impossible for a borrower to find and compare all products on offer. It would take weeks, and by the time you had all the data? Many of the deals, would have changed.

Approaching just ONE bank for a loan might take you several hours... imagine if you wanted to see 10 banks to ensure you got the best deal? And then you had to read through all their contracts, do all the calculations etc.

I discovered this website that compiles all the packages from the banks. The site gets updates of loan deals from different lenders, and offer you the best package according to your needs. You can also compare all the latest and greatest home loan deals the lenders have to offer. The site is named Fiscal Wise

And best of all? IT'S FREE


To check on the latest top loan packages of various categories from most of the loan packages available in the country, that best meet your requirements, saving you precious time and money, click at the following link: BEST OFFERS!

Based on my last research, CIMB is currently offering the best package in terms of average interest rate (provided BLR does not change :) For those who prefer Islamic financing, just check the box next to Islamic package and click the show me button.


You can check your maximum entitlement based on your current salary by using the ENTITLEMENT CALCULATOR


To check on the refinancing packages available (including zero moving cost) click on this link : REFINANCING PACKAGE

To calculate the potential savings from refinancing your home, the REFINANCING CALCULATOR is quite handy.

For those who prefer to deal with a personal consultant, you can call the hotline stated in the website. The mortgage and financial consulting services are offered to you FREE of charge without any obligations. Not many people are aware of this service. Those mortgage consultants will actually be paid by the banks if your application is successful.

Signing off at 9.50 p.m.

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