FBMKLCI 1521.89 DJ-166.13 CRUDE OIL 90.30 RM 3.02

New stock listing

No.  Stock  Code    Stock Name     Reference Price      Lower Limit     Upper Limit

1.      5195                  CENSOF            0.93                         0.63                  4.65

 

 

Century Software issued 23 million new shares of 10 sen each at an offer price of 93 sen each. Kenanga Research has a target price of RM1.43. Kenanga Investment Bank Research said following a recent meeting with Century Software, it is convinced that the group is set for greater growth. “We have upgraded our FY10, FY11 and FY12 earnings estimates to RM10.9 million, RM19.1 million and RM25.3 million, respectively. We value Century Software at 12.9 times PER to its FY11 EPS of 11.1 sen, hence we pegged our 12-month target price at RM1.43,” it said.

DiGi.com posted earnings of RM332.02 million in the fourth quarter ended Dec 31, 2010 compared with RM246.5 million a year ago. The earnings growth was underpinned by increased usage from an enlarged subscription base, inclusion of handset bundles plus rising revenue contributions from data services. 

FBMKLCI 1570.04 DJ+50.55 CRUDE OIL 93.28 RM 3.03

New stock listing

No.  Stock  Code    Stock Name     Reference Price      Lower Limit     Upper Limit

1.      5192                        KSSC                   0.57                      0.27                           2.85

K. Seng Seng will make its debut on the Main Market of Bursa Malaysia on Wednesday, Jan 19. The supplier of secondary stainless steel products, offered 20.12 million new shares of 50 sen each, priced at 57 sen a share.

Khazanah Nasional Bhd, the government's investment arm, will invite bids this week through its advisor CIMB Investment Bank Bhd for the divestment of its 32.21% stake in Pos Malaysia Bhd. Khazanah managing director Tan Sri Azman Mokhtar reiterated that Pos Malaysia's stake divestment would be a two-stage process, with the first stage addressing regulatory aspects such as the increase in postage tariff rates and rise in salaries and allowances for most of Pos Malaysia's staff. 

Maxbiz Corp Bhd has triggered the criteria pursuant to Practice Note No 17 (PN17) of the Main Market Listing Requirements of Bursa Securities. In a filing with Bursa Malaysia yesterday, Maxbiz said its auditors Messrs Gomez & Co had on Jan 17 submitted its assessment report to Bursa Malaysia Securities Bhd. Messrs Gomez had indicated that the shareholders' equity reported as at June 30, 2010 was RM36.89mil after taking into consideration the additional losses of RM1.33mil as per its assessment report dated Dec 3, 2010 and further losses as above of RM1.22mil.

DiGi.Com Bhd and Axiata Group Bhd expect cash savings of about RM2.2 billion combined over 10 years from the long-term collaboration on network infrastructure sharing in Malaysia. Both parties expect to see incremental savings as early as 2012 and gradually ramping up to an average annual savings of RM150 million to RM250 million combined after 2015.

Tenaga Nasional will announce first quarter results. RHB Research Institute said with higher electricity unit sales growth and largely stable coal prices in 1Q, it estimated core net profit could come in at around RM700 million to RM800 million (4QFY10: RM414 million, 1QFY10: RM751 million).

KPJ HEALTHCARE BHD [] has proposed to acquire Sibu Specialist Medical Centre for RM26.90 million cash to expand into markets where private healthcare is in demand. KPJ would acquire the 100% stake in Sibu Medical Centre Corporation Sdn Bhd (SMCC), comprising 6.62 million shares, from 14 individuals for RM26.90 million cash. SMCC owns and operates private specialist hospital Sibu Specialist Medical Centre at Brooke Drive in Sibu. KPJ Healthcare said the vendors were practising as specialists at the medical centre.

FBMKLCI 1499.88 DJ-7.34 CRUDE OIL 89.01 RM 3.11

SHARES on Bursa Malaysia is expected move sideways this week and confined within a tight-low-volume-doldrum of 1,490 and 1,510 points. Affin Investment Bank Head of Retail Research Dr Nazri Khan said the FTSE Bursa Malaysia (FBM) Composite Index made an impressive gain of 19% over the past six months. We are not surprised to see further consolidation in the last two weeks of December due to the year-end rebalancing, options annual expiration and holiday thin trading, he said. Nazri said the local market was still upbeat in the medium-term, but it could be distracted by the European sovereign debt situation and the rising bond yield in the near-term. He said renewed European debt worries tied to Moody's warning of a downgrade of Spain and Ireland's debt and poor Portuguese bond auction may dent the local market for a while.

Government-linked investment companies (GLICs), including Kumpulan Wang Persaraan (KWAP), have indicated an intention to vote in favour of the proposed takeover of PLUS Expressways Bhd by UEM Group and the Employees Provident Fund (EPF), reliable sources said.

DiGi.Com Bhd, a Malaysian mobile- phone operator, will invest RM700 million in capital expenditure next year, the Star newspaper reported, citing chief executive officer Henrik Clausen. The investment is similar to the amount spent this year, though more money will be used to improve its data and Internet network in 2011 compared with voice services, according to the report today.  

Johor Corp (JCorp) is seeking to remove Tan Sri Muhammad Ali Hashim, its previous head for 18 years, from the boards of three listed companies it has direct stakes in. The move seems to confirm speculation that Muhammad Ali, who had suddenly resigned as JCorp's CEO in July, is no longer in the good books of the powers that be in the state of Johor. JCorp has called for EGMs at Kulim (M) Bhd, KPJ Healthcare Bhd and Damansara Realty Bhd (DRealty) for this purpose. The removal of Muhammad Ali will be via ordinary resolutions at each of these companies, which means that a simple majority of shareholder votes would achieve the desired result. While JCorp controls more than 50% of the equity of Kulim and DRealty, it owns only 237.8 million shares in KPJ Healthcare, according to the latest shareholding changes filed with Bursa Malaysia. And according to Bloomberg data, this number of shares amounts to only a 42.6% stake in KPJ.

IJM Corp Bhd, a property developer and contractor, has secured a RM460.59m contract from Naza TTDI Construction SB for the “superstructure work” for Platinum Park’s phase three. The project involves the development of a 50- and 38- storey office towers comprising a one level facilities area at level 10, eight levels of podium carparks and a three-level basement carpark, according to a filing to Bursa Malaysia last Friday. The completion date is 31 Dec, 2013, IJM said in the filing.

FBMKLCI 1510.58 DJ+47.98 CRUDE OIL 88.77 RM 3.101

Kencana Petroleum Bhd, with current order book of RM2 billion, plans to bid for contracts valued at four times more next year, said its group CEO Datuk Mokhzani Mahathir. 

KNM Group Bhd has on Dec 13 entered into a joint venture agreement with Petrosab Logistik Sdn Bhd to form a 51:49 joint-venture company known as KNM Petrosab Sdn Bhd (KNMP) to target oil and gas projects in Sabah.

Maybank yesterday announced that 88.6% of the total amount of shares that would have been issued under its dividend reinvestment plan will be issued to shareholders.

Proton Holdings Bhd's capital expenditure (capex) for Group Lotus plc's business turnaround plan of about £480 million (RM2.37 billion) over a five-year period was higher than expected, CIMB Investment Bank said in a research report.

YTL Power International Bhd is investing in oil shale projects in Jordan with the acquisition of a 30% stake in Eesti Energia’s Jordanian oil shale projects.

DRB-HICOM eyes firm deal with Russian truck maker. DRB-HICOM has inked a MOU on the possibility of manufacturing Kamaz trucks in Malaysia for the local market as well as in Asean. 

Digi.Com Bhd has entered into a 10-year wavelength purchase agreement and a maintenance and support deal collectively worth RM139mil with Time dotCom Bhd as a follow-up to the bandwidth service agreement signed between the two companies in April 2008.

FBMKLCI 1500.98 DJ +19.68 CRUDE OIL 89.28 RM 3.117

New stock listing

No.  Stock  Code    Stock Name     Reference Price      Lower Limit     Upper Limit

1.    0163                CAREPLS           0.023                         0.005             1.15

BSKL is expected to trade higher this week with the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) likely to move towards 1,530 with a strong upside momentum, dealers said. Affin Investment Bank head of retail research, Dr Nazri Khan, said despite profit-taking last week, the benchmark index was likely to get positive spillover from the improving US and Europe. We believe that global tensions have already been factored in by the correction seen last week. We can sense that the flip-flop hot money obviously is making a comeback with year-end bargain-hunting driving the local stocks higher, he said.

Kencana proposed to raise funds via:

1. a proposed issuance of up to 5-year RM350m nominal value Islamic          Securities with detachable warrants on a “bought deal” basiswith AmInvestment Bank as the primary subscriber;
2. a proposed offer for sale by the primary subscriber of the provisional rights to the allotment of the Kencana warrants at an issue price to be determined later.
3. a proposed 10% private placement of new ordinary shares of RM0.10 each in Kencana. In addition, Kencana also proposed to increase its authorised share capital from RM200m divided into 2bn ordinary shares of RM0.10 each to RM300m divided into 3bn shares.

Myagri Group of Companies, an agro-biotechnology outfit, plans to list its unit either on the local or a foreign bourse to raise RM30 million to finance its expansion plans. Myagri helps oil palm plantations convert their waste at the mill into organic matter, enriching it with bio fertiliser microbes. This produces organic fertilisers that are not just good for crops but also protects their health.

The former executive director of Johor Port, Abdul Khalid Khan Lal Khan, is set to lead a revamp of Tanjung Langsat Port (TLP), which will include the set-up of a free trade zone. According to sources, Abdul Khalid will take over the running of TLP to make it a full-fledged container port that will tap the demand in Pasir Gudang. Currently, TLP, now owned by Johor Corp, is operating as a private jetty. It was set up with the aim of making it the largest biodiesel hub in the world.

DiGi.Com announced that the domestic roaming agreement between its wholly-owned unit DiGi Telecommunications SB and U Mobile SB has been terminated yesterday. The agreement was in relation to giving U Mobile access to DiGi Telecommunications’ 2G GSM network for the provision of public telecommunications services in Malaysia.

Ramunia Holdings Bhd's unit O&G Works Sdn Bhd (OGW) is teaming up with Dongnam  Marine  Crane  Co Ltd (DMC) from South Korea to undertake the joint manufacturing of cranes.