FBMKLCI 1554.24 DJ+64.25 CRUDE OIL 95.57 RM 3.01

The sale of a 25% stake in RHB Capital Bhd (RHB Cap) by Abu Dhabi Commercial Bank Bhd (ADCB) at 2.25 times the book value of RHB Cap or RM10.80 per share, has set a relatively high pricing benchmark for the potential takeover of the bank by Malayan Banking Bhd (Maybank) and CIMB Group Holdings Bhd.

Muhibbah Engineering Bhd would continue to be actively traded after the sell-down on the stock following concerns that Asia Petroleum Hub (APH) -- which it undertook a project for -- faced receivership.
It saw RM152.11 million in market capitalisation wiped out on Thursday, as its shares fell 38 sen to close at RM1.52 – the lowest since mid-May. The market capitalisation was reduced from RM608.43 million to RM456.32 million. However, there could be some mild bargain hunting as some analysts viewed the selling as overdone and the worst-case scenario for Muhibbah was a write-down of the RM300 million due from APH, which would push Muhibbah into losses for FY11. APH, the developer and operator of the APH oil terminal in Johor, faced the prospects of receivership, news reports said. Muhibbah was awarded the marine piling and jetty works worth RM820 million. Cost escalation in 2008 led to funding issues for APH and the stalling of payments due to Muhibbah.

UEM Land Holdings Bhd has set an internal target for a 50% revenue growth in FY2011 and a 10% return on investment. Its managing director and CEO Datuk Wan Abdullah Wan Ibrahim said with the acquisition of SUNRISE BHD [], UEM Land was hoping to build its portfolio and surpass its competitors' revenue in the near future.

Mitrajaya has proposed to invest RM6 million cash for a 20% stake in Rawang Specialist Hospital Sdn Bhd (RSHSB). RSHSB is a private limited company incorporated in Malaysia to principally operate and manage a specialist hospital and to provide healthcare solutions under the name of Optimax Specialist Hospital (Rawang). On May 23, it awarded to Mitrajaya's unit, Pembinaan Mitrajaya Sdn Bhd, a RM46.41 million contract to build the eight-storey private hospital with 180 beds. The hospital is expected to commence operations in December 2013.

Merge Energy Bhd has secured RM38.1 million contract to undertake water treatment and associated projects in Kuantan. The contract was awarded by the East Coast Economic Region Development Council. It  involves the balancing reservoir, access road, treated water mains and associated works for the Panching water treatment.

Perusahaan Otomobil Kedua Sdn Bhd (Perodua) unveiled - the new MyVi -- an upgraded version of the best seller on Thursday night, June 16 and prices range from RM43,900 to RM57,400. The second national carmaker expects to sell about 8,500 units monthly. The price is from RM43,900 for the standard manual transmission and RM57,400 for the elegance automatic transmission on-the-road. Perodua plans to export the new MyVi units to Indonesia this month, starting with 500 cars, under the Daihatsu Sirion badge.

FBMKLCI 1545.88 DJ +1.06 CRUDE OIL 96.87 RM 2.9980

Malayan Banking Bhd (Maybank) will be making a proposal to acquire RHB Capital Bhd before the end of this month, according to Maybank chairman Tan Sri Megat Zaharuddin Megat Mohd Nor. He said Maybank would proceed with the acquisition only if it was earnings accretive. Megat Zaharuddin said a merger with RHB Capital Bhd would provide scale to Maybank. “For example, it would expand our reach in Thailand and Singapore. Scale is important, especially when you are trying to compete in a region which is becoming a lot more challenging. We have global players from other parts of the world which are focusing on this part of the world, and you need scale in order to compete,” he said after Maybank EGM yesterday.

Malaysian property developer SP Setia Bhd plans to increase its landbank in Australia, predominantly in popular cities such as Melbourne, Sydney and even Gold Coast, as it seeks to capture the growing opportunities from the population boom of these cities. Having made its first Australian investment last year, the developer is in the midst of scouting for more investment opportunities in Melbourne. “For the first few years, we are looking for investment opportunities and to take on projects that will provide quick turnaround and are easy sell. Subsequently, we will look at greenfield projects and (at building) townships,” Setia (Melbourne) Development Co Pty Ltd chief executive officer Choong Kai Wai told Malaysian reporters here last Friday.

Alam Maritim Resources Bhd (AMRB) has been awarded a contract valued at RM52mil from Samsung Engineering Malaysia Sdn Bhd. The contract, awarded to its wholly-owned subsidiary, Alam Maritim (M) Sdn Bhd, was for the purchase order from Samsung to supply engineering work, supply of materials, fabrication, load-out and commissioning of two units of single point mooring buoy for Sabah Oil and Gas Terminal project.

Silver Bird Group Bhd has proposed a private placement exercise of new ordinary shares of up to 10% of its issued and paid-up share capital. The actual proceeds to be raised from this would be dependent on the issue price and actual number of placements shares to be issued. The company, in its filing to Bursa Malaysia yesterday, said the said proceeds from the proposed private placement should be utilised for repayment of bank borrowings as well as to defray the expenses in respect of the proposed private placement.

The group's total outstanding borrowings stood at RM130mil as of June 6.

MMC Corp Bhd’s subsidiary Malakoff Corporation Bhd is set to build a 1,000MW coal-fired plant next to the current Tanjung Bin power plant. The company said it had accepted a conditional offer made by the government to develop the plant and the expected commercial operation date was March 1, 2016. Malakoff is MMC Corp’s 51%-owned subsidiary, whose unit Tanjung Bin Power Sdn Bhd owns the Tanjung Bin power plant. MMC Corp said among the conditions in the offer by the government via the Energy Commission were the finalisation of the terms of the agreements relating to the project; and the approval of the detailed environmental impact assessment from the Department of Environment Malaysia.

Sime Darby's healthcare division is investing RM280 million in two hospital projects in the Klang Valley as part of the government’s health tourism plan under the Economic Transformation Programme (ETP). The conglomerate said it would invest in a 220-bed Sime Darby Medical Centre Ara Damansara in Subang which will be operational by the third quarter of 2011. The 300-bed Sime Darby Medical Centre ParkCity will be operational by the second half of 2012.

KNM’s total book order rose to RM5.5 billion as at May this year, of which RM1.4 billion in orders were secured in 2010. Bulk of the orders was secured in the second half of last year, totaling RM3.10 billion. The remaining RM1 billion of orders were secured in the first half of 2010 and earlier. As at January this year it had tendered for RM16 billion of orders and based on a 20% success rate, that would translate into RM3.2 billion.

MWE has attracted attention after it disclosed that it bought RM98.12 million of quoted securities from Sept 2, 2010 to June 10 this year. It said the total cost represented 24.74% of MWE group's net assets as at Dec 31, 2010. As at June 10, the total cost of its acquisitions was RM121.08 million while the book value was RM203.84 million. This was an increase of RM82.76 million but MWE did not provide details of those quoted securities.

FBMKLCI 1556.42 DJ-279.65 CRUDE OIL100.13 RM2.9770

The potential merger of either Malayan Banking Bhd (Maybank) or CIMB Group Holdings Bhd with RHB Capital Bhd would bring the new enlarged entity not too far behind some of the largest banks in the region. The top regional banks in Asean include three Singapore banks DBS Group Holdings Ltd, Oversea-Chinese Banking Corp Ltd (OCBC) and United Overseas Bank Ltd (UOB) with market capitalisation of US$27.7bil, US$25.7bil and US$24.5bil respectively. While in terms of asset size, the Singapore banks remain at the top, a Maybank-RHB Cap merger could overtake DBS Group in terms of combined market capitalisation with US$28.8bil. The potential merger of CIMB-RHB, on the other hand, would see a combined market capitalisation of US$27.3bil, just marginally below DBS but would overtake both OCBC and UOB. In terms of asset size, DBS, OCBC and UOB stand at US$238bil, US$198.4bil and US$178.8bil respectively.

Following the dismissal of Primus (M) Sdn Bhd's petition against the sale of EON Capital Bhd (EON Cap) to Hong Leong Bank Bhd (HLB), Primus now has to pay RM1.9mil in court costs. High Court Judicial Commissioner Varghese George Varughese ordered Primus to pay the sum to the 13 respondents in its suit EON Cap and nine of its board members, and three entities controlled by two of those board members.

Sarawak Energy Bhd (SEB), which will have the rights to the Bakun dam's power at a rate of 6.25 sen per kwh, has a firm utilisation rate of 50% from its four customers. The electricity from the Bakun dam which is priced at 6.25 sen/kwh with an annual hike of 1.5% under a power purchase agreement (PPA) between Sarawak Hidro Sdn Bhd and Syarikat Sesco Bhd confirmed a StarBiz report yesterday. StarBiz quoted sources saying the rate represented the cheapest tariff in Asian history but would be escalating at 1.5% per annum for 30 years.

SapuraCrest Petroleum Bhd (SapCrest) has signed an agreement with Real Mild Sdn Bhd and Labuan Shipyard and Engineering Sdn Bhd (LSE) for the subscription of 25 million new shares in LSE. The shares, according to SapCrest in a filing with Bursa Malaysia yesterday represented a 50% stake of the enlarged share capital of LSE.

Oil and gas services provider Dialog Group Bhd has entered into a joint-venture agreement with Vopak Terminal Pengerang BV, a unit of the Royal Vopak group, for the development of an independent deepwater petroleum terminal at Pengerang, Johor worth RM5bil. The company told Bursa Malaysia yesterday that both parties had set up a joint-venture company - Pengerang Terminals Sdn Bhd - in which Dialog would hold a 51% stake and Royal Vopak the remainder.

Water concessionaire Puncak Niaga Holdings Bhd is expected to register a loss this financial year following the adoption of a new accounting treatment that requires certain charges to be capitalised as intangible assets and amortised. Managing director Datuk Hashim Mahfar said in a statement yesterday that the IC Interpretation 12-Service Concession Arrangements, which were retrospective, had also resulted in a drop in shareholders' funds from RM1.5bil to RM35.6mil. However, Puncak Niaga has obtained a conditional waiver from being categorised a PN17 company until the announcement of its second-quarter results for the period ending June 30, 2012. (Under Bursa Malaysia rules, that would have been the case if a company's shareholders' funds fell below RM40mil).

Benalec expects to realise a net gain of RM34.93 million from the completion of separate agreements its units have entered for the disposal of land and joint venture for a mixed property development. Benalec on June 1 said its subsidiaries Sentosacove Development Sdn Bhd and Orientalcove Realty Sdn Bhd had entered into a sale and purchase agreement and joint venture agreement with Vista Selesa Development Sdn Bhd, respectively.

CBIP is selling its entire equity interests in Sachiew PLANTATION []s Sdn Bhd and Empressa (M) Sdn Bhd for a total of RM268.06 million. Sachiew is principally involved in the cultivation of oil palm and production of crude palm oil and palm kernel, while Empressa engages in the cultivation of oil palm and the operation of a palm oil mill. CBIP said the gross proceeds of RM268.06 million from the disposal would be utilised for its working capital including for financing receivables, inventories, and repayment of bank borrowings.

Bina Puri’s 80%-indirect owned subsidiary PT Megapower Makmur has received two contracts from PT PLN (PERSERO) to operate power plants in Indonesia.

FBMKLCI 1558.29 DJ+128.21 CRUDE OIL102.85 RM 2.9735

the biggest takeover battle in Malaysia's corporate history, banking heavyweights Malayan Banking Bhd and CIMB Group Holdings Bhd have declared their interest to wrest control of RHB Capital Bhd, which could cost over RM20bil. This development confirmed heated speculation in recent weeks that the country's largest and second largest banks, Maybank and CIMB respectively, were vying to take over RHB Cap, which is the fifth largest banking group. Sources said due to the rife market talk and “leaks”, Maybank and CIMB were directed by the central bank to disclose their interest to bid for RHB Cap to curb further speculation. Alongside this major takeover bid, is the sale of Abu Dhabi Commercial Bank's (ADCB) 25% stake in RHB Cap.

Investor sentiment towards Tenaga Nasional Bhd (TNB)'s stock immediately turned positive, following Monday's announcement of a long-awaited power tariff hike, as evident in the rise of the company's share price yesterday. The counter gained 59 sen, or 9%, to close at RM7.11 yesterday. It also topped the list of most actively traded stock on Bursa Malaysia, with 89 million shares changing hands. TA Research in its report explained that the impact on TNB's FY11 earnings would slightly be negative as the higher tariff would only have two months' impact on revenue, that is, for July and August, since June bill would still be reflecting usage in May, in which the previous tariff still applied. The higher gas price, on the other hand, will have three months' impact, that is between June and August. In addition, the revised tariff was still based on coal price of US$85 per tonne, and Tenaga still had to absorb the differential to actual market rate of around US$120 per tonne.

Hydropower from the 2,400-megawatt Bakun Dam project is likely to be sold, on an escalating basis, at 6.25 sen per kilowatt (KwH) to Sarawak Energy Bhd, the state utility arm. Sources told StarBiz this represented the cheapest tariff in Asian history but would be escalating at 1.5% per annum for 30 years. “The tariff is expected to be sufficient to pay off all Federal Government debts in 15 years,'' said a source, adding that in total, the valuation came close to RM8bil. The power purchase agreement (PPA) signing between the Federal and Sarawak state governments is expected to take place today.

Maxis Bhd saw its first quarter net profit decline slightly by some 2% to RM539mil compared with RM552mil made a year ago due to higher borrowing costs. For the three-months ended March 31, Maxis made a revenue of RM2.13bil, or less by 1%, compared with RM2.15bil made a year ago. Revenue declined due to lower voice, interconnect and hubbing revenue. the company said the drop in interconnect revenue was due to reduction in mobile and fixed termination rates since July last year. Meanwhile, the decline in hubbing revenue was in line with the planned scale down in its hubbing business. Maxis declared a first interim single-tier tax exempt dividend of 8 sen per share in respect of the financial year ending Dec 31, 2011, to be paid on June 30, 2011.

Malaysia Airports Holdings Bhd (MAHB) recorded a 20% jump in net profit to RM88mil for the first quarter ended March 31, led by strong demand for air travel. This was despite uncertainties in the aviation sector due to political tensions in the Middle East and earthquake and tsunami in Japan. Revenue rose 22%, or RM118mil, to RM610mil from RM498mil a year ago. However, the airport operator's earnings before interest, tax, depreciation and amortisation (EBITDA) was marginally lower at RM189mil from RM190mil a year earlier.

Axiata Group Bhd reported a 40.5% year-on-year drop in net profit to RM548.4mil for the first quarter ended March 31. The lower net profit was attributed mainly to a 97.7% year-on-year dip in the group’s other operating income to RM7.5mil in the quarter under review. This was because there was a one-off gain from the disposal of shares in Indonesian unit PT XL Axiata Tbk of RM307.5mil recorded in the same period last year.

MMC CORPORATION BHD []’s net profit for the first quarter ended March 31, 2011 rose 29.5% to RM43.04 million from RM33.23 million a year earlier, due mainly to higher contributions from most of its divisions. Revenue for the quarter increased to RM2.23 billion from RM2.06 billion in 2010. Earnings per share was 1.41 sen while net assets per share was RM2.19.

Ajinomoto (Malaysia) Bhd net profit for the fourth quarter ended March 31, 2011 rose to RM5.39 million from RM1.48 million a year earlier, due mainly to lower sales and marketing expenses. Ajinomoto proposed dividend of 20 sen per share in respect of the FY ended Mrch 31, 2011 comprising a first and final gross dividend of nine sen; a nine sen tax-exempt dividend as well as special gross dividend of two sen per share. For the financial year ended March 31, Ajinomoto’s net profit rose to RM25.73 million from RM23.94 million, on the back of revenue RM316.17 million.

FBMKLCI 1523.37 DJ+75.68 CRUDE OIL104.52 RM2.9570

Investors can look forward to two large initial public offerings (IPOs) coming on board the Main Market of Bursa Malaysia in the second half of this year. One is UOA Development Bhd, which is expected to be listed in June, with a potential market capitalisation of RM3bil. The other is Axis Global Islamic Real Estate Investment Trust (REIT), a unit of Axis REIT Management Sdn Bhd. It is set to be the world's largest Islamic REIT, also valued at some RM3bil once it is listed.

Dialog Group Bhd said it was still bidding with potential Australian partner Roc Oil Co Ltd for contracts pertaining to Petroliam Nasional Bhd's (Petronas) marginal oilfield developments. The company told Bursa Malaysia yesterday that Roc Oil was its business partner and was presently tendering for upstream oil and gas prospects in Malaysia with the possibility of a joint venture between the two companies if the tender was successful. “To date, Dialog and Roc Oil are still in the bidding process and have not entered into a joint-venture agreement and neither parties have received any letter of intent for marginal oilfield projects from Petronas,” it said.

Maybank is raising its deposit and base lending rates effective Wednesday. Its deposit rates will be revised upwards by up to 30 basis points, while its base lending rate (BLR) will be increased by 30 basis points from 6.30% per annum to 6.60% per annum.

RHB Bank Bhd is also raising the BLR from 6.30% per annum to 6.60% per annum, effective Wednesday.

Petroliam Nasional Bhd (Petronas) will announce on Friday plans to invest around RM50bil in an integrated downstream oil and gas complex in Pengerang, Johor, reliable sources said.

Shell Refining posted net profit of RM135.54 million in the first quarter ended March 31, 2011, up 131% from RM58.61 million a year ago. Revenue increased by 29% to RM3.20 billion from RM2.48 billion while earnings per share were 45.18c versus 19.54 sen a year ago. Shell Refining reported after tax stockholding gains of RM153 million for 1Q11.

Hartalega’s net profit for the fourth quarter ended March 31, 2011 rose 12.9% to RM52.39 million from RM46.41 million a year ago, driven by continuous expansion in production capacity, increase in demand, effective cost control and improvement in production processes. Revenue for the quarter was up 17.8% to RM192.52 million from RM163.39 million. Earnings per share were 14.41 sen while net assets per share was RM1.36.

HONG LEONG BANK BHD [] has proposed to increase the size of the renounceable rights issue by RM1 billion from RM1.6 billion to RM2.6 billion to further strengthen its capital base and for working capital purposes. HONG LEONG FINANCIAL GROUP BHD [] is providing a RM2.3 billion loan Hong Leong Bank to assist it with its risk weighted capital adequacy ratio (RWCAR).

FBMKLCI 1520.09  DJ+81.13 CRUDE OIL104.50 RM 2.996

ECM Libra’s earnings surged 250% to RM45.84 million in the fourth quarter ended Jan 31, 2011 from RM13.12 million a year ago, boosted by higher brokerage and fee income and also from trading and investment securities. Revenue doubled to RM105.84 million from RM46.79 million a year ago  while earnings per share were 5.61 sen. It proposed dividend of 4.25 sen per share. For the financial year ended Jan 31, 2011, net profit rose 59.7% to RM65.21 million from RM40.81million in the previous financial year. Revenue rose 60.2% to RM214.64 million from RM133.96 million.

Khazanah Nasional Bhd and its advisers yesterday shortlisted three companies for the sale of its 32.21% stake in Pos Malaysia Bhd. According to sources, the three companies are DRB-HICOM (M) Bhd, Nationwide Express Courier Services Bhd and Scomi Group Bhd.

Ekovest Bhd has signed a joint-venture and shareholders’ agreement with Malaysian Resources Corp Bhd (MRCB) and KL Bund Sdn Bhd in relation to the River of Life project.

Kencana Petroleum Bhd has secured a RM216 million contract from Petrofac Malaysia Ltd for the CONSTRUCTION [] of well head platforms for the Cendor oil field off the coast of Terengganu.

PETRA PERDANA BHD [], Koh Pho Wat ceased to be a substantial shareholder after disposing of one million shares on Monday at 94.5 sen a share. His direct stake was reduced to 4.78% or 21.517 million shares.

In RHB CAPITAL BHD [], the Employees Provident Fund board disposed of three million shares on March 24, reducing its stake to 959.96 million shares or 44.58%.

FBMKLCI 1506.88 DJ+191.40 CRUDE OIL 101.89 RM 3.069

KNM Group Bhd said it has year-to-date secured new orders amounting to RM693 million, underpinned by the bullish sentiment in the global oil and gas industry globally as crude oil surges to record highs. The current order book of KNM stood at RM6.4 billion and the backlog at RM5.4 billion. KNM said its tender book was RM17 billion, which it said had significantly improved compared with the trough of the sub-prime crisis which was at RM10 billion.

Malaysia is open to Australia & New Zealand Banking Group doubling its stake in Malaysian lender AMMB Holdings to 49 percent in a move that could encourage more foreign investment, Prime Minister Datuk Seri Najib Tun Razak was quoted saying by Reuters in Melbourne.

PPB Group Bhd plans to double its flour production capacity in Indonesia and Vietnam within the next two years to 2,800 tonnes a day. It plans to invest RM140 million. Meanwhile, Wilmar International , the world's largest listed palm oil company, plans to enter Indonesia's consumer flour market, possibly in 2012, which will intensify competition in the country. PPB derives a significant chunk of its earnings from Wilmar.

Bank Negara Malaysia has not allowed the Employees Provident Fund Board to hold more than 45% of the paid-up share capital of RHB Capital Bhd. Hence, EPF’s irrevocable undertaking to subscribe under the rights issue shall be for a minimum of 45% of the total rights shares.

FBMKLCI 1518.91 DJ +7.80 CRUDE OIL 91.33 RM 3.06

RHB Banking Group, in a collaborative effort with Pos Malaysia Bhd, is launching today the Pos Malaysia-RHB Shared Banking Services to enable banking services for its customers at selected Pos Malaysia outlets nationwide. The appointment of Pos Malaysia as the shared banking provider will also result in the opening of Easy by RHB kiosks at selected Pos Malaysia outlets that are involved in the marketing and processing of retail financial products, targeting the mass-market segment that is currently underserved, especially in the rural areas.

Property firms IJM Land Bhd and Malaysian Resources Corp Bhd (MRCB), which announced their plan last month to merge and potentially become the second largest property player, have aborted the plan. MRCB and IJM Land announced to Bursa Malaysia last Friday that the merger was aborted as both companies were not able to reach an agreement on the definitive terms and conditions of the proposed merger, following a series of discussions. They also announced that trading in the shares of both companies was suspended and would only resume on Monday. MRCB and IJM Land officials declined to comment when contacted by StarBiz. It is believed that the much anticipated merger between the two firms, announced on Nov 23, was called off due to issues over management and shareholding structure of the new entity post-merger.

The Malaysia Oil Palm Dealers Association (MOPDA) has expressed concern over the move by the Malaysian Palm Oil Board (MPOB) to bar dealers from buying and selling oil palm fresh fruit bunches (FFB). MOPDA president Datuk Abdul Fattah Abdullah said the new ruling was not beneficial to stakeholders, particularly dealers and the industry as a whole. The buying and selling of FFB among dealers was the norm and if small dealers were not allowed to trade among themselves, this would result in loss of employment, income and the eventual folding of the enterprises, he said. The MPOB ruling, said to take effect from today, was to give the opportunity for estates, smallholders and dealers to sell directly to millers, prevent small dealers from being monopolised by big dealers, and enhance the quality of oil palm fruits so that the oil extraction rate would exceed 25%.

FBMKLCI 1509.1 DJ-19.07 CRUDE OIL 88.25 RM 3.13

PN17 company LCL Corp Bhd could be delisted by Dec 27 for failing to submit its regularisation plan to the Securities Commission or Bursa Malaysia.

MRCB and IJM Land Bhd have extended the validity of their memorandum of understanding to merge and create the country’s second-largest property company to Dec 29 from Dec 14 previously.

Menang's unit wins RM1.5b contract to build 5 UiTM campuses nationwide for more than RM1.5 billion over 23 years. IMSB will build the Seremban campus, designed to cater for 5,000 students, over three years. Upon completion, the campus will be leased to the government/UiTM for 20 years. The company will maintain the facilities and infrastructure of the campus during the 20-year lease period. 

RHB Capital’s wholly owned subsidiary, RHB Bank, has entered into a MoU with Sumitomo Mitsui Banking Corp (SMBC), in line with its objective of becoming a major player in the banking industry. “RHB sees this MoU as one of the many proactive steps it is taking in enhancing its local and global strategic economic network,” it said in a statement yesterday. “The alliance will assist RHB, together with its respective subsidiaries and related companies, in strengthening its position in the Japanese business segment and also in establishing a stronger foothold in the international arena as part of the RHB banking group’s strategy for business expansion with ever deepening economic ties between Japan and Malaysia.”

DRB-HICOM Bhd has signed a MoU with the Kamaz Group, the largest automobile corporation of the Russian Federation, to look into the possibility of manufacturing and assembling selected Kamaz heavy duty trucks for the Malaysian and Asean markets. “This MoU will pave the way for the feasibility and a detailed costing study as well as the models of Kamaz truck suitable for this region,” said DRB-HICOM group managing director Datuk Seri Khamil Jamil in a statement yesterday.

FBMKLCI 1503.22 DJ+106.63 CRUDE OIL 87.87 RM 3.115

TM stands to gain RM444.7 million through the proposed sale of some 191.46 million shares it holds in Axiata Group Bhd, representing a 2.27% stake via private placement or in the open market.

Glomac’s 1HFY11 results stripping out the RM4.9m fair value gain on properties, its 1HFY11 turnover and core net profit improved significantly by 99% (+12% q-o-q) and 47% (+40% q-o-q) respectively on the back of higher progress billings from its high unbilled sales. Its latest unbilled sales stood at RM572m (1.8x FY10’s turnover).

IJM Corp and JAKS Resources’ 60:40 joint venture has secured a RM268.5m contract from the Ministry of
Energy, Green Technology and Water for the Pahang-Selangor Raw water transfer project. The project involves the construction of 3m nominal diameter mild steel pipes with a total length about 24km and two access roads of 1.9km and 1.5km long (including 80m long bridge).

EPF will raise up to RM765.5m from a planned sale of a block of RHB Capital shares, which will see its shareholding in the bank drop below the 50% mark. A term sheet detailing the placement exercise obtained by Reuters showed that the indicative pricing of the placement had been set at between RM7.50 and RM7.90 per share.

FBMKLCI 1494.78 DJ -39.51 CRUDE OIL 85.76 RM 3.133

In a twist of events, two rival offers on the table in the proposed takeover of QSR Brands Bhd have been rejected. This follows Kulim (Malaysia) Bhd's announcement yesterday that it had turned down the offer by Carlyle Investment Advisors Ltd to acquire an equity interest in QSR for RM1.94 billion or RM6.70 per share. Kulim has a 57.8% stake in QSR. 

Port operator Integrax Bhd may consider selling its stake in Lumut Maritime Terminal Sdn Bhd (LMT) for a price tag of no less than RM125 million.

  

RHBCap) net profit for 3QFY10 ended Sept 30 rose 5% to RM351.4 million, underpinned by higher net interest income and fee income.  

 

Pos Malaysia’s earnings rose 44.7% to RM31.3 million in the third quarter ended Sept 30, 2010 fromRM21.63 million ago on higher operating profit, revenue, and the tariff increase effective from July 1. Revenue rose 3.5% to RM227.4 million from RM219.7 million. Earnings per share were 5.83 sen compared with four sen. The group 3Q profit from operations was RM38.1 million, higher than the RM18.3 million a year ago.

MUIIND  posted net profit of RM33.04 million in its third quarter ended Sept 30, 2010, compared with RM4.51 million a year ago. There was a reserval of impairment in an associate amounting to RM17.98 million. Revenue was 2.7% lower at RM238.45 compared with RM245.09 million a year ago, Earnings per share were 1.63 sen compared with 0.23 sen.

KLK posted a 27% increase in earnings to RM311.04 million from RM243.73 million a year ago, boosted by its plantationss sector though there was a decline in its manufacturing operations. Revenue increased by 11.9% to RM2.014 billion from RM1.799 billion while earnings per share were 29.21 sen compared with 22.89 sen. It declared dividends of 45 sen per share, an increase from 30 sen a year ago.

Three companies - Petra Energy, Carimin SB and Shapadu Corp SB - are understood to have emerged as the front runners to bag retro-fitting, hook-up and commissioning jobs for oilfields located in Peninsular and East Malaysia from Petroliam Nasional (PETRONAS), industry sources said. According to sources, the contracts are valued at RM1.2bn in total and could be evenly broken down to three parcels of RM400m between Sabah, Sarawak and Peninsular Malaysia. Petra Energy is understood to have almost secured the Sarawak portion, while Carimin is close to bagging the Sabah job. Shapadu, meanwhile, is said to be the front runner to get the retrofitting, hook-up and commissioning jobs for Peninsular Malaysia.

A study on a possible merger between the country's top two national car companies has been completed, International Trade and Industry Minister (Miti) Datuk Seri Mustapa Mohamed said. Miti is setting a date by the year-end to discuss a third-party's research findings on the possible merger between Proton Holdings and Perusahaan Otomobil Kedua SB. The study was carried out by Frost & Sullivan