FBMKLCI 1535.59 DJ+7.41 CRUDE OIL 108.00 RM 2.9960

MAHB is expecting to see 12% year-on-year growth in passengers for the first three months of the year, compared with the earlier forecast of 7%.

MAMEE-DOUBLE Decker (M) Bhd has been in the limelight recently due to a privatisation proposal by major shareholders in a selective capital reduction (SCR) and repayment exercise under Section 64 of the Companies Act, 1965. This is a privatisation route that has been used successfully by several other companies.

Plantation group KL Kepong Bhd has estimated its capital expenditure for the current financial year ending Sept 30, 2011 at RM600mil. It said the expenditure consisted of new oil palm plantings in Indonesia and supporting infrastructures such as palm oil mills. “Oleochemicals capital expenditure consist of adding new capacities at Westport, Europe and China,” KL Kepong said in its corporate presentation at the Invest Malaysia 2011 conference yesterday. Between financial year 2007 and 2010, about 95% of KL Kepong’s capital expenditure was invested in plantation and oleochemicals. The company also said that it would continue to focus on land acquisition in Indonesia and Malaysia.

Alam Maritim Resources Bhd’s unit has secured RM24.24 million contracts to supply two vessels to an independent oil and gas exploration and production company. Its unit Alam Maritim (M) Sdn Bhd would provide one anchor handling tug supply vessel and one fast multipurpose supply vessel.

MEGB, its group CEO and PT Sejahteraraya Anugrahjaya Tbk (PTSA) are teaming up to look into the setting up of a university in Indonesia. They will form a joint venture company in Indonesia with proposed paid-up capital of US$10 million wherein. MEGB and its CEO will each hold a 30% stake and the remaining 60% by PTSA. PTSA is listed on the Stock Exchange of Indonesia and is the owner of Mayapada Hospital in Indonesia.

DRB-Hicom Bhd’s unit Puspakom Sdn Bhd has signed an MoU with the government to undertake the hire purchase inspection services for all vehicles. DRB-Hicom said the inspection services would be undertaken following the implementation of the newly amended Hire-Purchase Act 1967 (Amended 2010).

MALAYSIAN AIRLINE SYSTEM BHD []’s (MAS) earnings in the first quarter ended March 31, 2011 were impacted by the higher fuel prices, said its managing director and chief executive officer Tengku Datuk Azmil Zahruddin said. He said the high fuel price is “definitely making a negative impact on us”. Tengku Azmil said about 25% of the airline’s jet fuel for 2011 was hedged at US$90 per barrel but the price was now about US$140. On April 1, it was US$136.40.

Khazanah Nasional Bhd, the government's investment arm, has decided on the potential buyer for its 32.21 per cent stake in postal service provider, POS MALAYSIA BHD. "We already have a winner in mind," said Khazanah managing director Tan Sri Azman Mokhtar. However, he declined to narrow the identity of the "winner" but said the names would be submitted to the board later this month. The three shortlisted bidders are speculated to be DRB-Hicom, NATIONWIDE EXPRESS COURIER SER vices and a Amanah REIT-Malaysia Pacific Corp joint venture, wit offers ranging between RM3.38 and RM4.62 per share. The other two bidders were Scomi Bhd and TRICUBES BHD.

Guocoland Bhd posted net loss of RM3.64 million in the third quarter ended March 31, 2011, which was narrower compared with net losses of RM5.65 million a year ago. It reported revenue of RM23.95 million, down from RM42.42 million a year ago. Loss per share was 0.54 sen compared with 0.84 sen. For the nine-months, its net loss was RM2.38 million compared with net profit of RM2.49 million in the previous corresponding period. Revenue was RM84.29 million versus RM130.49 million a year ago. Its net asset per share was RM1.12. According to the notes to the accounts, it had short-term and long-term borrowings of RM786 million as at March 31, 2011.

FBMKLCI 1544  DJ+1.06 CRUDE OIL 108.40 RM 2.9885

In the US, stocks mostly fell on Monday as energy shares sold off on lower oil prices, and as the earnings season onset was clouded by concern company outlooks may fall short of expectations. Worries that increased raw material costs and the effects from Japan's earthquake may affect coming quarters will put companies' forward-looking statements under increased scrutiny.

While minority shareholders have the right to reject the offer to privatise Mamee-Double Decker (M) Bhd, analysts contacted by StarBiz say the capital repayment offer of RM4.39 per share is a fair deal.

Axiata Group Bhd is seeking the approval from its shareholders to buy back its own shares of up to 10% of its issued and paid-up share capital at the forthcoming AGM.

AmBank (M) Bhd will issue five new European style cash-settled call warrants (CWs) on the shares of Gamuda Bhd, Mah Sing Group Bhd, YTL Land & Development Bhd, Malaysian Airline System Bhd and Mudajaya Group Bhd.

MAA Holdings submitted an application to Bank Negara Malaysia to get its approval to dispose of its insurance unit to Zurich Insurance Company Ltd. It said it had submitted the application to the central bank for the approval of the Minister of Finance to enter into an agreement with Zurich.

 

Coastal Contracts Bhd’s two units have secured contracts for the sale of 11 tugboats for about RM61 million to a company based in Central America. Including the new contracts, Coastal Group to date has about RM665 million worth of vessel sales orders awaiting delivery to customers up to 2012. 

FBMKLCI 1557.49 DJ-29.44 CRUDE OIL 113.13 RM 2.99

THE local stock market is expected to take a temporary breather this week after the recent solid uptrend. Head of Retail Research, Affin Investment Bank, Dr Nazri Khan said in the near-term, despite the strength shown by the broad market, the FTSE Bursa Malaysia KLCI (FBM KLCI) consolidated between 1,550 and 1,560, given the super gains made by the local and regional markets over the last three weeks.
“We believe the Malaysian equity market has reached an overbought situation after a solid uptrend. A number of sentiment indicators suggest the market is apt for correction,” he told Bernama today.

Major shareholders of Mamee-Double Decker (M) Bhd have proposed to privatise the company from Bursa Malaysia by undergoing a capital reduction and repayment exercise under Section 64 of the Companies Act, 1965. Under the plan, major shareholders of Mamee who control the company would repay RM179.8m or RM4.39 a share to minority shareholders. The controlling shareholders would waive their entitlement from
receiving cash under the capital reduction and repayment exercise. Shares of Mamee are suspended but last traded at RM3.60 a share. The company said in a statement to Bursa Malaysia the proposal for the exercise
was from Tanah Subor SB, which represented the controlling shareholders of the company having 71.9% of the company's shares.

IOI Corp is investing SGD114.77m in a Singapore property company which will develop premium office space, luxury hotel, high-end retail outlets and prestigious city residences along Beach Road in the island republic. IOI Corp said on Friday, 8 April the land, measuring 376,295 sq ft (8.64 acres), had a leasehold tenure of 99 years. IOI Corp said the investment would be via its unit, IOI Consolidated (Singapore) Pte Ltd, which had subscribed for a 49% stake in Singapore’s Scottsdale Properties Pte Ltd for cash consideration of SGD114.77m.

Malaysia Airports Holdings (MAHB) is “seriously” on the lookout to build and manage overseas airports in line with its aspiration to become a global leader in airport investment and management. In its financial year ended 31 Dec 2010 annual report released last week, MAHB chairman Tan Sri Aris Othman said the group was seriously looking at new, yet viable opportunities globally, particularly in Asia.