FBMKLCI 1560.40 DJ-41.59 CRUDE OIL100.73 RM 2.9955

Malakoff Corp Bhd, owned by MMC Corp Bhd, is expected to be awarded a contract to build a 1,000MW coal-fired power plant soon, said sources. According to sources, the plant will have a 15-year concession to sell the power at a rate of 25 sen per kwh to Tenaga Nasional Bhd (TNB).

Petroliam Nasional Bhd (Petronas), via its wholly-owned subsidiary Petronas International Corp Ltd (PICL), has signed an agreement with Canada-based Progress Energy Resources Corp to acquire 50% of the latter's interest in shale gas assets worth C$1.07bil (RM3.32bil). In a statement yesterday, Petronas said the agreement was signed to develop the Altares, Lily and Kahta shale gas assets in north-eastern British Columbia. “The assets included in the transaction cover approximately 150,000 gross working-interest acres of land with an estimated contingent gas resource of more than 15 trillion cu ft. The assets will be operated by Progress,” said Petronas.

MTD Construction Sdn Bhd (MTDC) has won its RM38.59mil suit against AXA Affin Assurance Bhd  involving a claim on a contractors’ All Risks Policy against the latter. In a note to Bursa Malaysia yesterday, MTD ACPI Engineering Bhd said the case was ruled in favour of MTDC on May 27, with the judge holding AXA Affin liable for the damages to be assessed before the Court Registrar.

The hike in electricity tariff and gas prices will impact the steel, cement and glove manufacturing sectors, according to research firms. HwangDBS Vickers Research said the full-year earnings projections of steel makers Southern Steel Bhd, Kinsteel Bhd and might be lower by between 17% and 25% while forecast earnings for glove manufacturers Top Glove Corp Bhd and Kossan Rubber Industries Bhd could drop by between 5% and 7%. CIMB Research said electricity accounted for 8% of total costs for steel maker Ann Joo Resources Bhd as well as 18% of those for cement producers Lafarge Malayan Cement Bhd and Tasek Corp Bhd.

Petra Energy Bhd’s wholly-owned subsidiary, Petra Resources Sdn Bhd (PRSB) has signed a memorandum of understanding (MoU) with Labuan Shipyard & Engineering Sdn Bhd (LSE) for the proposed utilisation of the latter’s shipyard facilities at Victoria Harbour, Labuan Island. Petra Energy told Bursa Malaysia yesterday that the MoU was for the purpose of PRSB’s fabrication activities.

Mobile virtual network operator XOX Bhd’s initial public offering (IPO) has been oversubscribed by 13.2 times. Its IPO atracted 6,652 applications for 106.5 million shares with a total value of RM85.2mil, for the public tranche of 7.5 million shares, the company, which slated for ACE market listing on June 10, said in a statement yesterday.

Genting Bhd could also be in focus given its overseas expansion plans in Miami, with expectations that the group would try to secure a gaming licence there.

FBMKLCI 1503.99 DJ-10.60 CRUDE OIL 87.61 RM 3.07

Dayang Enterprise Holdings Bhd’s (DEHB) wholly owned subsidiary Dayang Enterprise Sdn Bhd (DESB) has received a contract worth RM802mil from Petronas Carigali Sdn Bhd.

MTD Capital Bhd's shares staged a rally after a consortium of firms announced that it has raised its takeover offer for the company to RM11 per share from RM9.50 previously. The counter closed 42 sen higher at RM10.94 to become the second biggest gainer of the day. Its intra-day high of RM10.96 was also its all-time high. Year-to-date, the stock has gained more than 13%.

Contrary to wide market expectations, Multi-Purpose Holdings Bhd (MPHB)'s plan to relist its numbers forecast operator (NFO) Magnum Corp Bhd has been put on hold, as the company shifts its focus to reformatting its business structure. “There is no plan to relist Magnum for the time being,” MPHB managing director Datuk Surin Upatkoon said in reply to a StarBiz query. MPHB shares resumed trading yesterday after being suspended since Monday. The counter ended the day at RM2.67, a tad lower than its previous close of RM2.68.

Integrax  is selling the entire 70.31% stake in its Indonesian subsidiary PT Indoexchange Tbk to Equatorex Sdn Bhd, a company controlled by Integrax's chairman and joint CEO Harun Halim Rasip.

EPIC reported earnings of RM14.87 million in the fourth quarter ended Dec 31, 2011, a 55.4% increase from the RM9.56 million a year ago underpinned by an increase in port operations and oil and gas activities. Revenue rose 7.6% to RM53.31 million from RM49.54 million a year ago. Earnings per share were 8.77 sen compared with 5.65 sen a year ago. For the financial year ended Dec 31, 2010, EPIC’s earnings rose 25% to RM52.84 million from RM42.14 million while revenue climbed 28% to RM235.136 million from RM183.46 million. It has cash of RM98.58 million as at Dec 31, 2010 but its trade and other receivables were RM57.56 million.

FBMKLCI 1536.07 DJ+6.74 CRUDE OIL 86.80 RM 3.003

Multi-Purpose Holdings Bhd (MPHB) is a step closer to the possible relisting of Magnum Corp Bhd on Bursa Malaysia, following a deal that would give it full ownership of the gaming outfit. In an announcement to Bursa Malaysia yesterday, MPHB said it had entered into a memorandum of understanding (MoU) with several parties to acquire the balance 49% stake it did not already own in Magnum Holdings Sdn Bhd, the investment holding firm whose subsidiaries are principally involved in the operation of four-digit numbers forecast betting games.

Green Packet Bhd has signed an agreement with Time Warner Cable, the second largest cable operator in the United States, to provide its next generation connection management solutions. Time Warner Cable would use customised versions of Green Packet's Intouch connection manager, Intouch reporting server and Intouch update server for its Windows and Mac platforms, it said in a statement.

MRCB’s earnings surged 230% to RM41.50 million for the fourth quarter ended Dec 31, 2010 from RM12.41 million a year ago, boosted by improved profit margin and property development projects. Revenue rose 53.7% to RM433.12 million from RM281.67 million. It proposed a dividend of 1.5 sen per share. For the financial year ended Dec 31, 2010, its earnings jumped 94% to RM67.27 million from RM34.62 million. Revenue rose to RM1.967 billion from RM921.62 million. Its cash and cash equivalents rose to RM487.27 million from RM232.57 million.

MTD Capital’s subsidiary MTD Manila Expressways Inc can proceed with the implementation of its 290% toll rate hike along the South Luzon Expressway in the Philippines after a motion seeking to restrain the hike was rejected by the Philippines Supreme Court. Its subsidiary’s legal counsel had on received a resolution dated January 11 from the Court which denied a petition for the issuance of a temporary restraining order (TRO) and/or status quo to restrain the implementation of the toll rate hike of 3.024 pesos or 22 sen per km initial toll rate hike.

Coastal Contracts’ units have secured contracts for the sale of 12 vessels for an aggregate value of RM268 million, increasing its total sales to RM760 million up to 2012.The contracts were for the sale of seven offshore support vessels (OSV), three tugboats and two oil barges for an aggregate value of approximately RM268 million. Including the new contracts, Coastal Group now has about RM760 million worth of vessel sales orders awaiting delivery to customers up to 2012.

Genting Bhd saw RM1.26 billion erased from its market capitalisation on Wednesday, Feb 9, extending its three-day losses on concerns of a decline in VIP customers to Resorts World Sentosa integrated resorts. Genting fell 34 sen to RM10.40, the lowest since Dec 20, with 11.98 million shares done.

Tanco Holdings Bhd said it was unaware of any development that has led to the high daily trading volume of its shares except for an ongoing negotiations with Lehman Brothers Commercial Corp Asia Ltd. On Jan 17, a local daily reported that Tanco had proposed a debt settlement agreement with Lehman.

In a reply to Bursa Malaysia query on the unusual market activity, Tanco said it was unable to disclose the significance of the agreement. “However, should we reach an agreement with Lehman, we will make the appropriate announcement to Bursa.”

FBMKLCI 1566.17 DJ+31.71 CRUDE OIL 90.60 RM 3.04

MTD Cap joint venture company in the Philippines continues to receive opposition to its toll hike at South Luzon Expressway (SLEX). The highway owner and operator told Bursa Malaysia yesterday that its subsidiary MTD Manila Expressways Inc had received a copy of a second supplemental petition for the issuance of a temporary restraining order (TRO) and/or status quo ante order to restrain the implementation of the 290% rise in toll fees at the SLEX.

Maxwell International Holdings – a China-based sports footwear manufacturer – will be listed on Thursday. Its offer of 20 million new shares was undersubscribed, with applications for 18.015 million shares.  The IPO consisted of a public issue of 63.75 million new 40 sen shares at an offer price of 54 sen each.

The Edge FinancialDaily also reports that the severe flooding in Australia has resulted in a dip in Tenaga Nasional Bhd's (TNB) share price on the back of rising coal prices following a supply disruption, although this could represent an opportunity to accumulate shares in the national utility company, say some analysts.

CHUAN HUAT RESOURCES BHD’s rights issue of 41.79 million warrants was oversubscribed by 16.45 times. The total acceptances and excess applications received for the rights issue was for 729.26 million, or 1,745.10% of the 41.79 million warrants available.

UMW Holdings, a vehicle assembler and industrial equipment maker, plans to revisit the listing proposal of its oil and gas unit once the division returns to the black this year. The unit, known as UMW Oil & Gas Bhd, which houses exploration operations, fabrication and pipe-manufacturing businesses, is expected to be profitable again by June this year in line with an industry wide turnaround, according to UMW president and group CEO Datuk Syed Hisham Syed Wazir. The move to spin off its oil and gas unit has been delayed several times after the plan was made public in 2008, with officials citing unfavourable market conditions and sentiment for the postponement.

Telekom Malaysia Bhd was served with a RM25m judgement in default on Monday by a local technology company, which it intends to set aside. AINB Tech (M) SB had served the judgement dated 2 Dec 2010, which included claims for expenses incurred for the purpose of a project known as ‘supply, delivery, installation, testing, commissioning and support of One Number Service’ between the two parties, Telekom said in a Bursa Malaysia filing, yesterday.

FBMKLCI 1505.18 DJ+55.03 CRUDE OIL 89.96 RM 3.12

KNM Group Bhd’s wholly-owned subsidiary KNM Process Systems Sdn Bhd (KNMPS) has secured a £450mil (RM2.196bil) engineering, procurement, construction and commissioning (EPCC) contract for a biomass and waste recycling centre project in England.

The Malaysian Anti-Corruption Commission (MACC) yesterday charged a former senior manager of Sime Darby Engineering Sdn Bhd for allegedly accepting a bribe of RM200,000 cash as a reward for proposing a private company for barge construction contracts.  

MTD is eyeing engineering and infrastructure projects in Saudi Arabia via a joint venture (JV) company it intends to form in the Kingdom with ANC Holdings Pte Ltd. MTD said it had entered into a JV and shareholders' agreement with ANC for the purpose of incorporation a JV company in Saudi Arabia. MTD will hold 51% of the JV while ANC will have the remaining 49%. "The parties intend to utilise the JV Company to undertake engineering and construction of building and infrastructure projects in Saudi Arabia," it said. 

FBMKLCI 1495.88 DJ-13.78 CRUDE OIL 89.25 RM 3.12

New RM26bil offer for PLUS highway. A competing bid to buy the assets and liabilities of PLUS Expressways Bhd has been presented to the latter’s board at an offer price that works out to RM5.20 per PLUS share, 13% higher than the existing offer by UEM Group and the Employees Provident Fund (EPF).

Bina Puri Holdings Bhd's unit Bina Puri (B) Sdn Bhd has secured a sub-contract worth RM158.36mil in Brunei. Bina Puri (B) had entered into a sub-contract agreement with to undertake the infrastructure works for a housing project for a contract sum of RM158.36mil, the company said in a filing with Chuon Tzu Construction Co Sdn BhdBursa Malaysia yesterday. The project is expected to be completed in 36 months. With the award, the group's current order book stands at RM3.31bil to date. It secured projects worth RM2.62bil in 2010. The sub-contract is expected to contribute positively to the earnings of the Bina Puri group for the financial year ending Dec 31, 2011.

MTD Capital received a buyout offer from its major shareholders Nikvest Sdn Bhd, Alloy Consolidated Sdn Bhd, Alloy Concrete Engineering Sdn Bhd and Alloy Capital Sdn Bhd (joint offerors) to acquire the remaining shares they do not already hold (excluding 27.49 million treasury shares) at RM9.50 apiece. The joint offerors hold 131.48 million shares of RM1 each in MTD, representing 53.13%. The joint offers have also made a downstream, take-over offer for the existing and paid-up shares of RM1 each in MTD ACPI ENGINEERING BHD not already held by MTD for a cash offer price of 53 sen per share. Trading MTD and MTD ACPI would resume at 9am on Tuesday, Dec 21. The two companies had requested for a trading halt from 9am on Dec 20 pending the announcement.

Time Dotcom's wholly-owned subsidiary TT dotCom Sdn Bhd has entered into principal terms of collaboration with MEASAT Broadcast Network Systems Sdn Bhd (Astro) for the provision of IPTV and Broadband services across the Klang Valley and Penang.

The lower net profit was attributed to the lower profit contribution from the gaming business operated by BERJAYA SPORTS TOTO BHD's principal subsidiary company Sports Toto (Malaysia) Sdn Bhd. It said Sports Toto registered a lower pre-tax profit in the quarter under review due to the increase in Pool Betting Duty from 6% to 8% (effective June 1, 2010) coupled with higher prize payout.

FBMKLCI 1482.69 DJ -46.47 CRUDE OIL 84.14 RM 3.13

Kulim (Malaysia) Bhd net profit for 3QFY10 ended Sept 30 surged five-fold to RM284.66 million from RM43.71 million a year ago mainly due to after-tax gains of RM151.61 million from the sale of its oleochemical business during the quarter. 

Maxis Bhd posted a slight drop in net profit of 2.6% to RM1.69bil for the nine months ended Sept 30, compared with RM1.73bil in the previous corresponding period.

Petroliam Nasional Bhd’s (Petronas) net profit fell marginally to RM11.88bil in the second quarter ended Sept 30 from RM11.97bil a year ago due to higher taxation but the group is optimistic of its outlook.

Malaysia’s crude palm oil futures contracts reached an all-time high of 451,843 contracts in November, exceeding the previous record of 442,220 contracts in April 2009, Bursa Malaysia Derivatives Bhd said in a statement yesterday.

 

The Government has agreed to allocate an additional RM700m for rolling plans for Iskandar Malaysia over the next two years. Johor Mentri Besar Datuk Abdul Ghani Othman said the amount is an addition to the RM339m set aside to the southern Johor growth region during the recent tabling of Budget 2011. "Yesterday, Prime Minister Datuk Najib Razak agreed to add funds for rolling plans with another RM700m for Iskandar Malaysia programs," Sources said the funds may be for various infrastructure projects and new investments which have not been announced by the Government.

 

SapuraCrest Petroleum and its JV partner have landed a USD160m (RM504m) contract from PTTEP Australasia (Ashmore Cartier) Pty Ltd (PTTEPAAA) for the provision of offshore transportation and construction activities for PTEPAAA’s Monara development in Australia. The Montara project is located in the Southern Timor Sea approximately 650km west of Darwin. SapuraCrest informed Bursa Malaysia yesterday that SapuraAcergy SB (SASB) a JV company it equally owns with Acergy SA, had received a letter of award for the contract on 25 Nov.

MTD Capital Bhd, Malaysia’s second largest highway operator and owner, could rake in at least some RM150m in annual toll revenue from the South Luzon Expressway (SLEX) in the Philippines next year if higher toll rates are implemented in January 2011. The Philippines business paper BusinessWorld, quoting Julius G Corpuz, an official with the Philippines Toll Regulatory Board (TRB), reported that the implementation of higher toll rates could happen in the first week of January next year.