FBMKLCI 1515.50 DJ+54.57 CRUDE OIL 98.26 RM 2.9765

Recently, Ramunia Holdings Bhd unveiled a regularisation plan to address its Practice Note 17 (PN17) status that involved a proposed capital reconstruction, rights issue and business rejuvenation plan. Investors obviously didn't like the idea of pumping even more money into a shell company, and this was seen in its share price which was sold down 8 sen to 56 sen on Wednesday. As of Friday, the stock was down 0.5 sen to 55sen. In a filing with Bursa Malaysia, Ramunia said under the capital reconstruction, it would cancel 25 sen from the par value of the existing ordinary share of 50 sen each, or which the credit would be used to off-set against the accumulated losses of the company.

SHARE prices on Bursa Malaysia will likely continue its downtrend this week with rising interest rates and a massive sell-off in commodities expected to be the biggest drag on the local bourse. Head of Retail Research, Affin Investment Bank, Dr Nazri Khan said the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) is expected to continue its downward correction to test the psychological 1,500 support level.

“We believe the old bearish stories are back again with investors worrying about the global double-dip recession and sovereign debt crisis in the developed world,” he added.

EON Capital will distribute the RM312 million, or 44.9 sen per share, which it will receive as special dividend from its unit EON Bank Bhd to all its entitled shareholders. The dividend was proposed by EONCap on April 29 and agreed by HONG LEONG BANK BHD [] as a last-minute extra condition to the latter’s acquisition of EONCap’s assets and liabilities for RM5.06 billion.

Coastal Contracts proposed a corporate exercise involving a bonus issue and free warrants to its shareholders and also to purchase up to 10% of its paid-up capital. It said on Friday, May 6 said it proposed a one-for-three bonus issue and one free warrant for every eight shares held after the proposed bonus issue.

Hap Seng Consolidated posted a strong set of earnings in the first quarter ended March 31, 2011, with net profit surging 108% to RM82.17 million in the first quarter ended March 31, 2011 from RM39.48 million a year ago. Revenue rose 28% to RM751.34 million from RM587.18 million while earnings per share doubled to 14.58 sen from 7.01 sen.

Fitters Diversified Bhd does not expect to be suspended on Tuesday after it submitted its outstanding annual audited financial statements for financial year ended Dec 31,2010 to Bursa Malaysia Securities Bhd on Friday, May 6. “There will be no suspension of trading in the above company's securities on May 10,” it said.

Fitters Diversified was due to submit the statements to Bursa Securities for public release on or before April 30. However, due to the delay, it had initially faced suspension on May 10.

Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) posted pre-tax profit of RM114.08 million in the four quarter ended March 31, 2011, down 35.7% from RM177.45 million a year ago. The decrease was mainly due to lower revenue in engineering and CONSTRUCTION and marine repair and conversion segments. However, its net profit was up 11.7% at RM128.64 million compared with RM115.15 million a year ago. There was a tax writeback of RM14.43 million compared with tax paid of RM60.03 million a year ago. Its revenue fell 41.9% to RM923.29 million from RM1.59 billion a year ago. Earnings per share were 8.0 sen versus 8.6 sen.

Ranhill Bhd could issue another tranche of debt papers, amounting to about RM700 million, according to sources familiar with the company.

FBMKLCI 1522.75 DJ no market CRUDE OIL112.77  RM 2.9738

Khazanah Nasional Bhd has divested its strategic 32.21% stake in Pos Malaysia to DRB-Hicom Bhd at RM3.60 per share or RM622.79 million, deemed a landmark divestment by the government’s investment arm of its entire stake in a major government-linked company. Pos Malaysia said based on the audited results for the financial year ended Dec 31, 2010, its audited consolidated net profit was RM67.11 million and audited consolidated net assets RM828.59 million.

Iris Corp has secured a US$149.96 million(RM451.61 million) contract from the government of Tanzania to supply 25 million identification cards based on the Smartcard TECHNOLOGY []. Iris Corp said the contract was for five years, comprising 36 months for implementation and 24 months for maintenance and support. The scope of work and deliverables were 25 million smart cards which shall be used as the National ID cards of Tanzania

HPI Resources’ net profit for the third quarter ended Feb 28, 2011 soared 121.5% to RM6.94 million from RM3.13 million a year earlier, driven by higher demand. Revenue for the quarter rose by 11.6% to RM105.43 million from RM94.46 million in 2010, while earnings per share was 12.43 sen. HPI said the strong performance was primarily the result of both its paper milling and corrugated packaging divisions demonstrating double-digit expansion in revenues and operating profits.

Ranhill Bhd’s unit Ranhill Power Sdn Bhd has received the Securities Commission’s approval to issue up to RM800 million of debt notes which will have a tenure up to 15 years. The proceeds from the issue will be on-lent to Ranhill to finance in full the redemption of the US$220 million guaranteed notes issued by Ranhill (L) Ltd. The funds would also be to finance the service reserve account requirement, the first guarantee fees payable and the expenses/ costs incurred in relation to the establishment of the Sukuk, and to on-lend to Ranhill to reimburse advances made by Ranhill to Ranhill Engineers and Constructors Sdn Bhd to complete the CONSTRUCTION [] of Senai-Desaru Expressway.

FBMKLCI 1494.42 DJ-51.24 CRUDE OIL 102.23 RM 3.007

Timber companies will benefit from the surge in demand from Japan as post-construction activities in the country take place following the devastating earthquake and tsunami that occurred there. However, the quantum of demand from the surge for timber products is hard to quantify at the moment. Malaysia is already the largest exporter of timber to Japan and imported timber products like plywood easily make up more than half of timber consumption in the country, according to analysts. In a timber sector update yesterday, RHB Research said Malaysian companies were likely to benefit; specifically WTK Holdings Bhd and Ta Ann Holdings Bhd given their focus on the Japan market which constituted 80% to 90% of their timber product sales.

George Kent (M) Bhd plans to invest up to RM100mil in the next three to four years to expand its meter and original equipment manufacturing (OEM) businesses. Chairman and CEO Tan Sri Tan Kay Hock said the company had embarked on a RM50mil plan to upgrade its manufacturing facilities at its plant in Puchong, Selangor to accommodate higher sales in the meter and OEM businesses.

Berjaya Retail Bhd share price soared by 21.5 sen to 64 sen yesterday after it announced that it would be taken private by its major shareholder, Premier Merchandise Sdn Bhd, controlled by Tan Sri Vincent Tan Chee Yioun.

Johor Corp (JCorp) and its 55% subsidiary Kulim (M) Bhd have denied the claim made by Tan Sri Muhammad Ali Hashim that there were plans for Kulim to be sold. Both companies said that they were not aware of any such proposal. Kulim, in an announcement to Bursa Malaysia, said it “was not the source of the statement that appeared in the articles in local newspapers”.

Cocoaland Holdings Bhd said its wholly-owned unit CCL Food & Beverage Sdn Bhd entered into a S&P agreement yesterday with Riviera Properties Sdn Bhd to buy freehold industrial land in Rawang for RM7.85mil.

Standard & Poor’s Ratings Services has lowered its long-term corporate credit rating on Ranhill Bhd to B minus from B due to its weak liquidity and exposure in the political instability in Libya. Due to the same reasons, it also lowered the issue rating on US$220mil, 12.5% senior unsecured notes due October, issued by Ranhill (L) Ltd to CCC plus from B minus. Ranhill guaranteed the notes. Both the ratings remained on CreditWatch, where they were placed with negative implications on Dec. 30, 2010, it said in a statement.