FBMKLCI 1581.85 DJ-12.90 CRUDE OIL 97.15 RM 2.9740

MRCB’s subsidiary will undertake a RM128.7 million contract to upgrade Little India in Brickfields and build government quarters. MRCB’s 70% owned Country Annexe Sdn Bhd had signed a privatisation agreement with the government and Syarikat Tanah dan Harta Sdn Bhd (Hartanah). The agreement will see Country Annexe upgrading and beautifying Jalan Tun Sambanthan, Brickfields; develop the Pines Bazaar and build 212 government Class F quarters near Jalan Ang Seng. In return, Country Annexe will receive two pieces of land.

Hap Seng Consolidated fixed the issue price of the rights shares with warrants at RM1.05. The exercise price of the new free detachable warrants was fixed at RM1.65.

Genetec’s outstanding orderbook grew to RM98.8 million after it secured new orders worth RM45.4 million from its existing and new clients in the hard disk drive, hazardous material containment and other industries.

It said the orders for the hard disk drive (HDD) industry were RM26.8 million and hazardous material containment was RM14.1 million.

Ramunia Holdings Bhd’s unit has inked two MoUs with India’s SEW Infrastructure Ltd to take part in the bid to develop an oil and gas project. Ramunia Fabricators Sdn Bhd had on Tuesday, July 5 signed the MoU to bid for the development of WO-16 cluster and SB-14 well head platforms project. In a separate statement, Ramunia Fabricators had also signed an MoU with SEW to participate in the bid for the cluster 7 well platforms project.

FBMKLCI 1563.43 DJ+42.84 CRUDE OIL93.20 RM 3.0175

The Dow and S&P 500 rose on Friday, June 17 after France and Germany outlined the aid for Greece but analysts said a recent bearish trend may not be over. Reuters reported that a slew of data showing the United States is on the verge of a slowdown has already done its damage to the market. After the heavy selling of the past several weeks, it seems investors are taking a wait-and-see approach -- for now.

Ramunia’s net profit for the second quarter ended April 30, 2011 fell 58.7% to RM1.41from RM3.42 million a year ago, due mainly to a reduction in revenue due to the tail end of remaining projects billings and lower operating income. Revenue fell to RM1.74 million from RM11.88 million in 2010. Earnings per share were 0.21 sen, while net assets per share were 25.3 sen. For the six months ended April 30, Ramunia’s net profit plunged 87.3% to RM2.51 million from RM19.83 million, while revenue fell 89% to RM3.09 million from RM27.74 million.

Construction company Muhibbah Engineering (M) Bhd has been in the spotlight last week after its contract with Asia Petroleum Hub (APH), a private company that develops and operates a multi-billion-ringgit oil terminal in Johor could be jeopardised by the latter's receivership status. Muhibbah's shares tumbled 20% or 38 sen last Thursday, closing at RM1.52 with 74.35 million shares traded.

Talam posted net loss of RM25.97 million in the first quarter ended April 30, 2011 compared with net profit of RM1.56 million a year ago as it was impacted by the high administrative and finance costs totaling RM32.49 million. Talam said administrative and other expenses totalled RM14.94 million while finance costs were RM17.55 million. Its revenue was RM13.18 million compared with RM23.26 million a year ago due  to lower gross profit and other operating income, as well as higher administrative and finance costs. Its loss per share was 0.72 sen versus earnings per share of 0.06 sen. Its net asset per share was 17 sen.

Wah Seong Corporation with a book order of RM1.2 billion plans to expand into water-related businesses and renewable energy after the demerger with Wasco Energy Ltd. It plans to boost its biomass equipment and power generation business, as well as integrating into the fast growing agro-based sector and water industry. Another key growth area would be in deepwater pipe and gas pipe coating.

Top Glove’s net profit for the third quarter ended May 31, 2011 fell 60.3% to RM25.60 million from RM64.48 million a year earlier due mainly to higher latex price and weakening US dollar. Revenue eased 3.7% to RM535.36 million from RM555.85 million. Earnings per share were 4.14 sen. It declared a first single tier net interim dividend of 5 sen, payable on July 21, 2011. For the nine months ended May 31, Top Glove’s net profit fell 56.5% to RM87.06 million from RM200.22 million in the previous corresponding period, while revenue declined to RM1.51 billion from RM1.54 billion in 2010.

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 1531.47 DJ+0.15 CRUDE OIL110.78 RM2.9380

Five companies yesterday announced that trading in their securities will be suspended on May 10 until further notice due to failure to submit their annual audited financial statements on time. The companies are Atis Corp Bhd, Fitters Diversified Bhd, Mobif Bhd, Ecofuture Bhd, and H-Displays (MSC) Bhd.

Sumatec Resources Bhd has triggered the criteria pursuant to Practice Note No. 17 (PN17) of the Main Market Listing Requirements while biotechnology-based Equator Life Sciences Bhd has triggered the criteria pursuant to Guidance Note 3 (GN3) of the ACE Market Listing Requirements, Bursa Malaysia Securities announced yesterday.

Sunway Real Estate Investment Trust (SunREIT) posted a net profit of RM43.7mil for the third quarter ended March 31. SunREIT has declared a third interim income distribution of 1.70 sen per unit for the third quarter ended 31 March. For the first nine months, SunREIT's income before taxation was RM399.6mil comprising realised net income of RM126.2mil and unrealised income of RM273.4mil .

MClean Technologies Bhd’s initial public offering of 2.7 million new shares has been oversubscribed 100.49 times. In a statement yesterday, the Malaysian Issuing House Sdn Bhd (MIH) said a total of 8,947 applications for 274.02 million shares were received from the public. In addition, 75,000 new shares, initially set aside for business associates of the group, were made available to the public.

Ramunia has proposed a capital reCONSTRUCTION [] and rights issue to uplift from the Practice Note 17 status. The proposed share premium reduction will give rise to a credit of between RM98.31 million and RM100.69 million whilst the reduction of 25 sen in par value from each existing share of 50 sen each will give rise to a credit between RM185.32 million and RM244.65 million.

Commerce TECHNOLOGY [] Ventures Sdn. Bhd has ceased to be a substantial shareholder of Tricubes Bhd after it disposed of 14.5 million shares from April 24 to 27. Filings to Bursa Malaysia showed it sold 1.165 million shares on April 25 and 5.0 million shares on April 26. It sold 8.335 million shares on April 27.

The recent transactions reduced its stake to 6.20 million shares.

FBMKLCI 1513.84 DJ+84.54 CRUDE OIL 105.47 RM 2.9980

SEGi said it has set a dividend policy to distribute a minimum of 50% of the group net profits to its shareholders, with effect from the financial year ending Dec 31, 2011. SEGi said the board believes that the dividend payout of a minimum of 50% of its net profits is within the group’s financial capability considering its future earnings growth.

Both Axiata Group Bhd and Telekom Malaysia Bhd (TM) have barred Alcatel-Lucent from participating in tenders, contracts or joint ventures for a year following the call from Malaysian Anti-Corruption Commission (MACC). “Alcatel-Lucent welcomes the MACC recommendation and is committed to earning back our customers' trust,” it said in a statement in response to the 12-month suspension.  Axiata said the suspension runs for 12 months from Feb 18 while TM's suspension was effective Jan 5.

Gamuda’s  net profit for the second quarter ended Jan 31, 2011 rose 19.6% to RM94.03 million from RM78.63 million a year earlier, mainly due to higher contributions from all its divisions. Revenue rose marginally to RM607.19 million from RM603.24 million. Earnings per share were 4.59 sen, while net asset per share was RM1.74.For the six months ended Jan 31, Gamuda’s net profit rose to RM182.56 million from RM152.66 million in 2010.

Ramunia's net profit for the first quarter ended Jan 31, 2011 fell to RM1.1 million from RM3.42 million a year earlier due mainly to the tail end of the remaining projects billings and lower operating income. Revenue slumped to RM1.36 million from RM15.85 million in 2010. Earnings per share were 0.17 sen while net assets per share was 25.1 sen. Reviewing its results and commenting on its prospects, Ramunia said it was finalising its PN 17 regularisation plan.

Digistar, it said with the secured order book of RM102 million, it is in the midst of tendering and bidding of additional of RM130 million worth of contract and project of broadcasting jobs in Malaysia. “The company is in the view that, once secure with additional contracts, barring any unforeseen circumstances, the expectation in rise of additional revenue in FY2011 shall increase around 30% to 40%, if compared to recorded revenue of RM73 million in FY10,” it said in reply to a query from Bursa Securities.

Eastern & Oriental Bhd’s (E&O) wholly-owned subsidiaries E&O Property Development Bhd and Samudra Pelangi Sdn Bhd has proposed to dispose of their entire securities interest in Fututech Bhd for RM8.78mil cash.

OSK Property Bhd bought 16 acres of prime freehold commercial land in Cyberjaya’s flagship zone from Setia Haruman Sdn Bhd for some RM86.5mil.

Sarawak plywood mills’ plans to raise their production to meet an anticipated high demand from Japan for the reconstruction of Sendai, a Pacific coastal town destroyed by a magnitude-9 earthquake and tsunami, will be hampered by a shortfall in the supply of raw material.

FBMKLCI 1509.10 DJ-17.90 CRUDE OIL 105.07 RM 3.0040

Oil prices pushed above US$105 per barrel Tuesday, as traders focused on a series of international crises that could tighten global supplies at a time when consumption is expected to increase. 

Benalec is standing out from its CONSTRUCTION [] peers and rapidly gaining investor attention. Now, the company is also shaping up to be a major landowner and developer, as it will receive some 177.3 acres of land in Melaka in exchange for reclamation works.

Ramunia plans to venture into the offshore oil and gas business in Malaysia and the region via a tie-up with Drydocks World of Dubai. It sealed an agreement for a floating production, storage and offloading (FPSO) deep producer vessel, known as the MT Laurita. The arrangement would enable Ramunia to venture into the field of engineering, procurement, construction, installation and commissioning. It plans to provide the full offshore production facilities and to penetrate into the growing offshore floating facilities business within the local and regional upstream oil and gas sector.

Berjaya Land posted net profit RM34.91 million for its third quarter ended Jan 31, 2011 compared to net loss RM8.57 million a year ago, due mainly to higher profit contribution from the gaming business operated under BERJAYA SPORTS TOTO BHD [] (BToto). Revenue declined to RM990.59 million from RM993.96 million. Earnings per share were 0.70 sen from loss per share of 0.17 sen, while net assets per share was RM1.04. For the nine months ended Jan 31, BLand’s net profit jumped to RM85.13 million from RM35.42 million, on the back of revenue RM2.99 billion.

Leader Universal’s joint venture to supply cable and cable related equipment in Saudi Arabia has been called off by mutual agreement with its JV partners -- Al-Ghazalah Development Co (Al-Ghazalah) and Suasana Daya Sdn Bhd. The parties had on July 8, 2009 entered into an agreement to set up the JV to sell and supply cables and cable related accessories and equipment with customers in Saudi Arabia, as well installation of cables and turnkey projects and supply and/or construction of power transmission, distribution, substation and related projects in that country.

CIMB Group Holdings Bhd has sought another six months until Oct 6 to complete the proposed dual listing on the Stock Exchange of Thailand. The application has been submitted to the Securities Commission and is pending its decision.

With the Sarawak state assembly dissolved on Monday,speculations on the upcoming 10th state election on April 9 will boost politically-and state-linked stocks, namely those in the timber, construction and oil and gas sectors. This time, the sentiment will be further underpinned by the Sarawak Corridor of Renewable Energy (SCORE) programmes.aption

FBMKLCI 1519.13 DJ+73.11 CRUDE OIL 91.50 RM 3.074

Johor Corp will sell a parcel of land it owns in Johor as part payment for the RM3.6bil debt that is due in July 2012, says president and chief executive officer Kamaruzzaman Abu Kassim. He also said the land had a market value of more than RM2bil.

Kencana Petroleum Bhd hopes to start recouping its portion of investment, estimated at US$200mil, in the Berantai marginal oil field development within two years, says chief executive officer Datuk Mokhzani Mahathir. Kencana is part of a consortium, which includes SapuraCrest Petroleum Bhd and Petrofac Energy Developments Sdn Bhd to develop and operate an oil and gas field in Berantai, Terengganu estimated to cost a total of US$800mil.

Khazanah Nasional Bhd said yesterday that all bidders for its 32.21% stake in Pos Malaysia Bhd will be given an equal opportunity and that its divestment will undergo “a fair and transparent process”.The bidders will be considered based on their strategy and business plan, followed by the offer price. The name of the shortlisted bidders will be revealed to the panel after the shortlisting process is completed. These shortlisted bidders will then be invited to submit their revised strategy and business plan as well as their final offer.”

For the nine months ended Dec 31, AMMB’s net profit rose 34% to RM1.03 billion from RM766.87 million, on the back of revenue RM5.3 billion, up from RM4.87 billion a year earlier.

Tasek’s earnings in the fourth  quarter surged 325% to RM69.1 million from RM16.25 million. The much improved group results apart from the RM43.6 million gain from disposal of PLANTATION [] and other

property, was mainly in line with the increase in group's total revenue compounded by better local cement sales margin. Tasek said revenue rose 15% to RM133.67 million from RM116.08 million. Earnings per share were 43.3 sen compared with 8.77 sen. It proposed a bumper dividend, comprising of preference dividend of 6%, ordinary dividend 30% and special dividend 50%.

Mudajaya’s net profit for the fourth quarter ended Dec 31, 2010 rose 39% to RM57.09 million from RM41.05 million a year earlier, driven by the increased level of activities. Revenue rose to RM230.29 million from RM211.76 million a year ago. Earnings per share were 13.96 sen while net assets per share rose to RM1.75 from RM1. Mudajaya proposed a final dividend of 3.0 sen per ordinary share of 20 sen each under the single tier system for FY10. For the 12 months in 2010, Mudajaya’s net profit surged 75% to RM208.45 million from RM119.18 million a year ago, on the back of revenue RM869.43 million.

Hap Seng Consolidated’s net profit for the fourth quarter ended Dec 31, 2010 surged to RM103.13 million from RM7.69 million a year earlier, driven by improvement in revenue in all divisions except for fertilisers trading which was affected by lower average selling prices. Revenue rose 19.3% to RM810.88 million from RM679.6 million. Earnings per share were 18.30 sen while net assets per share was RM4.59. For the financial year ended Dec 31, 2010, Hap Seng’s net profit rose 222% to RM323.16 million from RM100.24 million a year ago. Hap Seng proposed to pay out as final dividend about 50% of its net profit tax and minority interest totalalling RM123.98 million or 22 sen per share.

RAMUNIA HOLDINGS BHD is eyeing some RM300 million worth of fabrication jobs this year as projects up for grabs start pouring into the market again, underpinned by the surge in crude oil prices. Chief executive officer Nor Badli Munawir Mohamad said on Friday that while Ramunia's existing order book was negligible, he expected it to grow this year after Petroliam Nasional Bhd  committed to opening more marginal oilfields and issue more oil and gas contracts this year.

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 1526.43 DJ-3.33 CRUDE OIL 86.44 RM 3.03

THE stock market's main benchmark suffered its second double-digit drop in four trading days, wiping out all of its gains so far this year. The FTSE Bursa Malaysia KLCI fell 16.54 points to 1526.43 points. Yesterday's close was 0.46 per cent lower than the new year's first day close of 1533.42 points. The benchmark index closed at a record of 1574.49 points last Monday. Maybank Investment Bank Bhd's head of retail research Lee Cheng Hooi said the blue chip index could fall to as low as 1525 points. "The market is sluggish, and some funds are getting out a bit," said Lee, adding traditionally buying interest will come back after the Chinese New Year (CNY) holidays. The market will still have to breach the 1576 level to sustain a rise. Lee said the research house has a year end 1710 target.

Ann Joo Resources Bhd has entered into a share sale agreement to acquire a 38% stake in Anshin Steel Processor Sdn Bhd, at a cash consideration of RM2.10 per share worth RM11.970mil.

Berjaya Food Bhd’s admission to the stock exchange has been approved by Bursa Securities in the “trading/services” sector of the Main Market. A filing by AmInvestment Bank Bhd on behalf of Berjaya Corp Bhd’s board said the stock exchange regulator had, vide a letter dated Jan 24, approved the admission of Berjaya Food together with the listing of and quotation for the entire enlarged issued and paid-up share capital of the company of RM70.67mil comprising 141.34 million 50 sen shares.

South Korea’s Honam Petrochemical Corp has invoked Section 222 of the Capital Markets & Services Act, 2007 (CMSA) to compulsorily acquire all the remaining 7,185,762 shares of Titan Chemicals Corp Bhd for which acceptances have not been received. “To this end, a notice pursuant to Section 222(1) of the CMSA in relation to the compulsory acquisition has been sent by Honam to all the holders of the remaining offer shares,” Titan said in a note to Bursa yesterday.

Public Bank Bhd has reported a record net profit of RM846.19mil, or 24.16 sen per share, for its fourth quarter ended Dec 31, 2010.

Perusahaan Otomobil Kedua Sdn Bhd (Perodua), which has been adamant against merging with rival Proton Holdings Bhd, would have let off a sigh of relief after news broke that the Government will not force the two national car companies to merge. Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said yesterday the Government will not force through a merger of both car companies and any solution or proposal needs to be agreed to by both stakeholders. “We cannot force them to make a decision as there is a long spectrum. At one end is loose cooperation and at the other, a merger, which has yet to be decided,”

Oilcorp Bhd, via its 51%-owned indirect subsidiary Oilfab Sdn Bhd, has accepted an offer from Ramunia Holdings Bhd to acquire the Pulau Indah Integrated Fabrication Yard for RM83.8mil.

Major shareholders of port operator Integrax Bhd have called for the removal of the company’s executive director Harun Halim Rasip and director Datuk Onn Hamzah.

MALAYSIAN PACIFIC INDUSTRIES Bhd (MPI) posted marginally lower earnings of RM25.29 million in the second quarter ended Dec 31, 2010 when compared with RM25.71 million a year ago. Its revenue increased 6% to RM367.59 million versus RM345.57 million.  Its earnings per share were 13.05 sen compared with 13.19 sen a year ago. MPI said the pretax profit of RM34.84 million against RM33.06 million a year ago, despite the higher revenue was mainly due to the strengthening ringgit against the US dollar.

FBMKLCI 1568.37 DJ-25.58 CRUDE OIL 88.26 RM 3.04

Selangor has made a fresh offer to the water concessionaires in another effort to resolve the impasse in the state’s water-restructuring exercise. Worth over RM9bil, according to Mentri Besar Tan Sri Abdul Khalid Ibrahim in a press briefing yesterday, the offer was the third by the state government and the fifth overall, counting one offer worth RM10.3bil by the Federal Government and another worth RM10.8bil by Gamuda Bhd, owner of a 40% stake in Syarikat Pengeluar Air Selangor Sdn Bhd (Splash). Khalid said in a press statement issued yesterday that the state was offering to acquire the entire stakes in Puncak Niaga Sdn Bhd for RM64.62 per share, Syarikat Bekalan Air Selangor Sdn Bhd for RM20.78 per share, Konsortium Abass Sdn Bhd for RM9.39 per share and Splash for RM5.95 per share.

Malayan Banking Bhd (Maybank), the country's largest bank in assets, is planning to take over Singapore stockbroker Kim Eng Holdings Ltd in a deal valued at up to S$1.79bil (RM4.26bil) to grow its regional footprint in investment banking and stockbroking operations. Maybank will pay S$768mil (RM1.9bil) to buy a 44.6% stake in Kim Eng from chairman and chief executive officer Ronald Anthony Ooi and Taiwan's Yuanta Securities Asia Financial Services Ltd and launch a buyout offer for the remaining shares of the Singapore company which is ranked as a top 5 stockbroker in Singapore, Thailand, Indonesia and the Philippines.Kim Eng also has a presence in global financial centres in Hong Kong, London and New York. 

Sunway City Bhd has launched its latest integrated mixed development – Sunway Nexis at Dataran Sunway, Petaling Jaya. In a statement yesterday, the company said the development covered 5.83 acres with a gross development value of RM500mil. The development is being undertaken by Sunway Damansara Sdn Bhd. Sunway City managing director of property development Ho Hon Sang said: “Sunway Nexis is a complete lifestyle centre encompassing leisure, entertainment, recreation and work facilities. Following the success of Sunway Giza, this development offers modern retail shops, office suites and SoHo with a promising potential for growth.

Ramunia, which is without a core business, is in talks to acquire Syarikat Borcos Shipping SB, sources said. Negotiation is rumored to have commenced, but it is not known how the acquisition will be concluded.

TM is expected to finish its internal investigation on alleged bribes to its employees, a month from the board subcommittee
inaugural meeting on 3 Jan.

Transport Minister Datuk Seri Kong Cho Ha expects a conservative 7% growth in passenger arrivals at Malaysian airports this year, riding on the fast growing Asia Pacific region. “We have achieved more than 15% growth in 2010 and are confident of seeing growth this year,” he said.

FBMKLCI 1507.28 DJ+40.26 CRUDE OIL 87.99 RM 3.109

Landmarks Bhd is expected to start its Bintan development called Treasure Bay Bintan (TBB) by the first quarter of 2011, sources familiar with the matter told The Edge Financial Daily. 

Ramunia Holdings Bhd’s wholly owned unit, Ramunia Fabricators SB, has been slapped with a RM15.9m suit by Ulti Resources SB for unlawful possession of land, according to a filing to the exchange last Friday. The plaintiff is seeking the amount and claims that Ramunia Fabricator had unlawfully entered and took possession of the lands in Kota Tinggi, Johor, in July 2008.

Benalec Holdings Bhd, the country’s second largest marine construction firm by market share, is set to list on the Main Market in the first quarter of next year. Having just received in the first week of December approval for the listing on the local bourse, the company expects to raise some RM100m from the IPO, said the group managing director Vincent Leaw Seng Hai. According to the MD, the proceeds raised are intended for the use of working capital.

FBMKLCI 1500.98 DJ +19.68 CRUDE OIL 89.28 RM 3.117

New stock listing

No.  Stock  Code    Stock Name     Reference Price      Lower Limit     Upper Limit

1.    0163                CAREPLS           0.023                         0.005             1.15

BSKL is expected to trade higher this week with the benchmark FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) likely to move towards 1,530 with a strong upside momentum, dealers said. Affin Investment Bank head of retail research, Dr Nazri Khan, said despite profit-taking last week, the benchmark index was likely to get positive spillover from the improving US and Europe. We believe that global tensions have already been factored in by the correction seen last week. We can sense that the flip-flop hot money obviously is making a comeback with year-end bargain-hunting driving the local stocks higher, he said.

Kencana proposed to raise funds via:

1. a proposed issuance of up to 5-year RM350m nominal value Islamic          Securities with detachable warrants on a “bought deal” basiswith AmInvestment Bank as the primary subscriber;
2. a proposed offer for sale by the primary subscriber of the provisional rights to the allotment of the Kencana warrants at an issue price to be determined later.
3. a proposed 10% private placement of new ordinary shares of RM0.10 each in Kencana. In addition, Kencana also proposed to increase its authorised share capital from RM200m divided into 2bn ordinary shares of RM0.10 each to RM300m divided into 3bn shares.

Myagri Group of Companies, an agro-biotechnology outfit, plans to list its unit either on the local or a foreign bourse to raise RM30 million to finance its expansion plans. Myagri helps oil palm plantations convert their waste at the mill into organic matter, enriching it with bio fertiliser microbes. This produces organic fertilisers that are not just good for crops but also protects their health.

The former executive director of Johor Port, Abdul Khalid Khan Lal Khan, is set to lead a revamp of Tanjung Langsat Port (TLP), which will include the set-up of a free trade zone. According to sources, Abdul Khalid will take over the running of TLP to make it a full-fledged container port that will tap the demand in Pasir Gudang. Currently, TLP, now owned by Johor Corp, is operating as a private jetty. It was set up with the aim of making it the largest biodiesel hub in the world.

DiGi.Com announced that the domestic roaming agreement between its wholly-owned unit DiGi Telecommunications SB and U Mobile SB has been terminated yesterday. The agreement was in relation to giving U Mobile access to DiGi Telecommunications’ 2G GSM network for the provision of public telecommunications services in Malaysia.

Ramunia Holdings Bhd's unit O&G Works Sdn Bhd (OGW) is teaming up with Dongnam  Marine  Crane  Co Ltd (DMC) from South Korea to undertake the joint manufacturing of cranes.