FBMKLCI 1511.11 DJ- 107.01 CRUDE OIL 98.90 RM 3.02

It may not be the time for bargain hunting yet as there is more downside to the local stock market due to negative external factors. Investors appeared to be staying at the sidelines yesterday with only 1.7 billion shares being traded compared to the average daily volume of more than 2 billion at the start of the year. The local benchmark FTSE Bursa Malaysia KLCI had yesterday shed more than 10 points in intra-day trading before finishing at 1,511.11, 2.52 points or 0.17% lower, dragged down mostly by plantation stocks affected by lower crude palm oil prices.

PLUS Expressway Bhd, the country's biggest toll road operator, obtained its shareholders' approval yesterday for the RM23 billion takeover bid by its major shareholders UEM Group Bhd and the Employees Provident Fund (EPF), despite over 100 minority shareholders claiming the EGM was "illegal" and walking out halfway.

Telecommunications service provider Axiata Group Bhd posted a net loss of RM367mil for the fourth quarter (Q4) ended Dec 31, 2010, due to impairment loss on its investment in an India-based associate. This compared with a net profit of RM558mil for the corresponding period last year.

Multi-Purpose Holdings Bhd (MPHB), which has businesses from gaming to stockbroking, recorded improved results in the continuing operations of the company despite the lower net profit for the fourth quarter ended Dec 31, 2010.

Plantation firm TSH Resources Bhd’s net profit for the fourth quarter ended Dec 31, 2010, surged 115.98% to RM44.22mil compared with the previous corresponding quarter mainly due to higher contributions from Indonesian operations.

Star Publications (M) Bhd’s net profit for the financial year ended Dec 31, 2010 (FY10) rose 27.80% to RM184.94mil on revenue that gained 9.01% to RM1.06bil.

Hong Leong Bank Bhd’s (HLB) net profit for the second quarter ended Dec 31, 2010 rose to RM291.43mil from RM224.75mil a year ago while revenue increased to RM603.96mil from RM519.40mil previously.

Transmile Group Bhd faces suspension and delisting from March 3 and March 7 respectively for failing to submit a regularisation plan to the Securities Commission or Bursa Malaysia for approval by Feb 22.

PETRA ENERGY BHD [] is likely to post losses for the fourth quarter of 2010 even with crude oil prices around US$100 again.

Genting Bhd’s net profit surged 89.6% to RM465.43 million in the fourth quarter ended Dec 31, 2010 from RM245.4 million a year ago. Revenue rose 76% to RM4.086 billion from RM2.320 billion. Earnings per share were 12.57 sen compared with 6.64 sen while it proposed a final dividend of 4.5 sen. It said the higher revenue was mainly from the leisure and hospitality division with the commencement of operations of Resorts World Sentosa in Singapore, during the first quarter of 2010. As for FY10, its earnings rose 110.9% to RM2.202 billion from RM1.044 billion while revenue surged 71% to RM15.194 billion from RM8.893

billion. Group revenue rose by 71% to record a new high of RM15.19 billion in FY2010 (FY2009: RM8.89 billion), while group profit before tax rose by 74% to post a new high of RM4.39 billion in FY2010 (FY2009: RM2.53 billion).

IJM Corp’s earnings rose 58% to RM132.19m in the third quarter ended Dec 31, 2010 from RM83.64 million a year ago, boosted by its property and PLANTATION []s sector. Revenue dipped 3.7% to RM901.34 million from RM936.31 million. Earnings per share were 9.78 sen compared with 6.32 sen. IJM said the lower revenue was mainly due to mainly to the CONSTRUCTION [] and property divisions.

Kossan’s net profit for the fourth quarter ended Dec 31, 2010 rose 21.4% to RM29.45 million from RM24.25 million a year ago, driven by the expansion in the company’s gloves division with better product mix and margin. Revenue rose 11% to RM252.97 million from RM227.75 million. Earnings per share were 9.18 sen while net assets per share was RM1.40. For the financial year ended Dec 31, 2010, Kossan’s net profit recorded an increase of 76.1% to RM118.59 million from RM67.33 million a year ago. Revenue rose 24.6% to RM1.05 billion from RM842.14 million.

Tan Chong’s net profit for the fourth quarter ended Dec 31, 2010 rose 21.8% to RM52.07 million from RM42.73 million a year earlier, boosted by across the board price discounting to clear 2010 inventories ahead of new model introductions in 2011. Revenue for the quarter rose 16% to RM835.36 million from RM720.19 million a year ago. Earnings per share were 7.98 sen, while net assets per share was RM2.57.

FBMKLCI 1505.33 DJ-41.55 CRUDE OIL 87.87 RM 3.087

IGB Corp Bhd posted RM53.09 million in net profit for the fourth quarter ended Dec 31, 2010 compared with RM31.14 million a year ago while revenue was RM215 million compared with RM166.31 million. For FY10, the earnings rose to RM174.32 million from RM158.98 million while revenue was also higher at RM720 million versus RM642.44 million. IGB Corp Bhd's move to dispose of Mid Valley City Gardens Sdn Bhd (MVCG) to its 75%-owned KrisAssets Holdings Bhd is not entirely a surprise move as IGB has made its intention known for a while.

MPHB has temporarily shelved its preliminary plans to relist Magnum Holdings Bhd after making a RM1.66 billion offer to buy the 49% stake in the latter. It said the proposal has been on hold for the time being. Credit Suisse Research said in a recent report the transaction (if successful) would be earnings accretive for MPHB as it would control 100% of Magnum, compared to 51% currently. “According to reported 9M10 results of MPHB, its gaming division (Magnum) generated pre-tax profits of RM275 million compared to RM185 million in 9MFY09, an increase of 49% on-year. Annualising this suggests full-year pre-tax profits of RM360 million and net profits of RM270 million, implying a 2010 P/E of 12.4 times. If Magnum grows in line with the Malaysian economy, which is in line with our assumption for BToto, net profits could be as much as RM284 million in FY11E,” it said. Credit Suisse said the deal values Magnum at 12.4 times 2010 PE and 11.8 times 2011E PE, compared to BToto's calendarised 2011E PE of 17.3 times.

Ramunia, a recent filing showed Ramunia Energy & Marine Corp Sdn Bhd disposing of eight million shares on Feb 9 in a direct deal, reducing its direct stake to 69.62 million shares or 10.5%.

Supermax Corp Bhd saw its earnings decline by 24.8% from RM43.54 million to RM32.72 million in the fourth quarter ended Dec 31, 2010 due to the continuous high latex prices and unfavourable exchange rates. Its revenue rose 18.4% from RM196.42 million to RM232.67 million. Its earnings per share were 9.62 sen versus 16.22 sen

The Malaysian Rubber Board (MRB) expects the natural rubber (NR) market to continue to chart new highs, at least in the first half of this year, on continued strong demand from China and India as well as declining output from major rubber-producing countries. On Monday, tyre-grade SMR 20 posted a new high of RM17.27 per kg while latex-in-bulk hit RM10.66 per kg. Director-general Datuk Dr Salmiah Ahmad told StarBiz that the challenge for 2011 would still be tackling a consumption-exceeding-supply situation. This is followed by the still sluggish US economy, continuing worries over sovereign risk in the euro-area and uncertainty over the Chinese government's measures to cool inflation and the economy. Export earnings from the rubber sector continued to expand by 34.8% to RM33.7bil in 2010 from RM25bil in 2009, thanks to the favourable economic growth primarily driven by the emerging and developing economies. Of the total value exported, RM12.3bil was contributed by the export of rubber products while raw rubber, other rubbers and heveawood products provided RM9.5bil, RM4.3bil and RM7.6bil respectively. “The rubber sector in fact contributed about 5% to the country's export earnings,” Salmiah said. “The contribution of the industry is much higher if we consider its spin-offs and multiplier effects on the Malaysian economy.

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 1539.55 DJ+71.52 CRUDE OIL 87.48 RM 3.003

Multi-Purpose Holdings Bhd (MPHB) will be announcing a major acquisition today, reliable sources said, although speculation is rife that the company could also be announcing the re-listing of its gaming subsidiary Magnum Corp Sdn Bhd. 

Tabung Haji, Mara in medical ventureIt is understood that Lembaga Tabung Haji and Majlis Amanah Rakyat (Mara) are expected to end up with a total of 45% equity stake in the newly-established Academic Medical Centre Sdn Bhd (AMC) that has a tie-up with world renowned Johns Hopkins Medicine International and Royal College of Surgeons (RCSI) in Ireland to offer courses at the soon to be set up RM2bil Perdana University Graduate School. Tabung Haji is likely to end up with 30% stake while Mara 15% in AMC. The remaining 55% equity will be held jointly by two companies controlled by businessman Tan Sri Dr Mohan Swami (pic). The two companies are Turiya Bhd and Chase Perdana Sdn Bhd.

On Tuesday, HWGB and its warrants, which fell in active trade after surging on Monday, accounted for more than 115 million units transacted. HWGB fell 15.5 sen to 77.5 sen and HWGB-WB lost 15.5 sen to 74 sen as traders sold on news about its proposed tin mining operations.

PJI secured a RM55.89-million sub-contract from IJM CONSTRUCTION [] Sdn Bhd for a college in Kedah. PJI said its unit P.J. Indah Sdn Bhd had received the letter of award from IJM for the mechanical and electrical services of Kolej Universiti Insaniah’s permanent campus.

KENCANA PETROLEUM BHD []’s 166.69 million new shares were placed out at RM2.38 each and raised gross proceeds of RM396.7 million. The issue price of RM2.38 was a discount of about 1.65% to the closing market price of RM2.42 on Jan 25.

FBMKLCI 1487.53 DJ -142.21 CRUDE OIL: 81.23 RM: 3.081

Stocks fell Tuesday as a flare-up of tensions between North and South Korea combined with downbeat news on the economy gave investors plenty of reasons to sell ahead of the Thanksgiving holiday. The dollar and gold rose as investors sought safe places to park money. 

  

MRCB and IJM Land Bhd yesterday announced their proposed merger exercise, which will create the country's second largest property player after the enlarged UEM Land Holdings Bhd, with a market capitalisation exceeding RM7 billion and a land bank of over 9,000 acres. 

Market observers are speculating that a “marriage” of sorts is on the cards for SunCity and Sunway Holdings Bhd, after both companies had their shares suspended from trading for two days from yesterday, pending a material announcement on a corporate exercise. 

Gadang Holdings Bhd is bidding for several engineering and construction projects totalling more than RM2 billion and the company anticipates stronger earnings for the financial year 2011 ended May 31.

LionInd’ 1QFY11 net loss of RM18.8m. The poor results were mainly attributed to the arrival of expensive feed material, namely iron ore and scrap metal, which were mismatched with weakening selling prices.

Parkson Holdings announced that it is selling its 100% equity interest in Shantou Parkson to its 51.5% owned subsidiary - Parkson Retail (PRG).

Msports 9MFY10 earnings of RM49.2m. Production volume increased by 34% to 23.4m in 9MFY10 while average selling price improved by 4.4% to RMB18.9 per pair, mainly driven by the higher demand for EVA MD products.

MPHB posted net profit of RM86.49 million in the third quarter ended Sept 30, up 70% from RM50.73 million a year, boosted by its gaming and stockbroking operations. Revenue was 4.6% higher at RM850.7 million compared with RM813.24 million a year ago.

MUDAJAYA GROUP BHD net profit rose 31.8% to RM46.55 million for the third quarter ended Sept 30, 2010 from RM35.32 million a year ago, mainly due increased level of activities.