Kumpulan Euro had disposed of 9.10% stake in Talam Corporation Bhd for RM15.88 million as it sought to reduce its bank borrowings.
KEuro said on July 17 the disposal, subsequent to the last financial year ended Jan 31, 2009, resulted in loss of RM19.8 million, or loss per share of four sen.
The stake which it sold comprised of three million Talam shares of 60 sen each (before the share splitting on Feb 16) and 166.39 million shares of 20 sen each.
WCT Bhd has won four contracts worth a total RM766.5 million to build infrastructure at Medini Iskandar Malaysia, in Johor.
Work involves building roads, sewerage pumping stations and electrical sub-stations, among others.
They are to be completed by July 2011, it said in a statement to Bursa Malaysia.
The job was awarded by Medini Iskandar Malaysia Sdn Bhd, the subsidiary of Iskandar Investment Bhd, the strategic developer for Iskandar Malaysia.
Mixed news from earnings reports has investors taking a pause after pushing stocks higher for four straight days.
Stocks were mostly lower Friday after Bank of America Corp. and Citigroup Inc. became the latest banks to report big second-quarter profits but also weakness in their loan portfolios. General Electric Co. beat earnings forecasts, but its revenue came up short.
Investors have been keenly focused on earnings reports this week, hoping to find more concrete signs of life in the economy and validation that a huge rally in stocks this spring was justified. So far, the results have been varied.
Solid profits from some of the largest U.S. banks have been encouraging, but there are still signs that the recession's grip hasn't eased as much as hoped, such as higher loan defaults.
"We're seeing some very good news all in all," said Kent Engelke, chief economic strategist at Capitol Securities Management. "I also believe the market is ahead of itself. I think we're getting the classic case of buy on rumor and sell on fact."
Investors also got an upbeat reading on the housing market Friday. Construction of new homes and apartments jumped 3.6 percent in June to the highest level in seven months, beating economists' estimates. It was the second straight increase after a record low in April. Building permits climbed 8.7 percent, also beating forecasts.
Oil prices rose $1.03 to $63.05 a barrel on the New York Mercantile Exchange.
The Dow Jones Industrial Average rose 32.13 points, or 0.4%, to 8743.94, while the S&P 500 was down 0.36, or 0.04%, at 940.38. The Nasdaq Composite added 1.58 points, or 0.08%, to 1886.61.
| COMMENCED: OCTOBER 1, 2008 | CAPITAL: RM 100,000 | CASH: | 10,181.06 | |||||||
| DAILY TRANSACTION | | | | | | | | | ||
| D/PUR | STOCK | QTY | PRIC | FEE | TOTAL | D/SLD | PRIC | FEES | TOTAL | G/L |
| 071609 | IncKen | 20,000 | 0.3600 | 40.40 | 7,240.40 | | | | | |
| 071609 | Keuro | 20,000 | 0.3800 | 42.20 | 7,642.20 | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | TOTAL | 14,882.60 | | | | 0.00 | |
| SHARES IN HAND | | | | | | | | | ||
| 041709 | Minply | 90,000 | 0.2888 | 140.96 | 26,132.96 | | | | | |
| 051409 | Keuro | 50,000 | 0.4090 | 113.03 | 20,563.03 | | | | | |
| 060409 | SAAG | 50,000 | 0.3670 | 101.58 | 18,451.58 | | | | | |
| 061509 | LionCor | 60,000 | 0.4967 | 164.11 | 29,966.11 | | | | | |
| 063009 | Jaks | 20,000 | 0.8800 | 97.20 | 17,697.20 | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | TOTAL | 0.00 | 0.00 | |
| | | | | | | | B/F | | G/L | 62,629.81 |
| | TOTAL INVESTMENT: | | 112,810.87 | GRAND TOTAL | | 62,629.81 | ||||
| 050409 | Cash Withdrawal | | | | | | 20,000 | 20% | ||
| 052509 | Cash Withdrawal | | | | | | 20,000 | 20% | ||
| 061109 | Cash Withdrawal | | | | | | 20,000 | 20% | ||
| TOTAL | | | | | | | | 60,000 | 60% | |
Most Asian shares extended gains on Friday as key U.S. earnings reports beat expectations, fueling hopes that the global recession is receding, but deadly explosions at two Jakarta hotels weighed on Indonesia stocks and the rupiah.
Google Inc.'s Internet ad sales grew at their slowest rate ever during the spring, forcing the online search leader to tighten its belt another notch to propel its second-quarter profit above analyst estimates.
The performance - punctuated by revenue growth of just 3 percent - disappointed investors.
The company's shares fell more than 3 percent in extended trading Thursday after the results were released.
Google is the most profitable company on the Internet, thanks to its dominance of the online advertising market.
That means its lackluster revenue growth could foreshadow even more significant sluggishness among other Internet companies that rely on advertising and e-commerce.
Gamuda has received a third takeover offer for Splash from the Selangor state government. Although the price tag remains the same, the state government clarified that it will honour the two O&M contracts with Gamuda Water and Sg. Harmoni. We believe the offer is fair and should be viewed positively by shareholders of Splash and Gamuda. It translates into a cash return of RM632m (31 sen/share) for Gamuda and will add 3 sen to RNAV. The group's cash will jump 53% to RM1.8bn if the cash is retained and 26% to RM1.5bn if half of the cash is given out as a special dividend of 16 sen.
We maintain our TRADING BUY call on the sector. The third offer for Splash suggests that another better
offer could be in the wings for Puncak Niaga which is a TRADING BUY with an unchanged target of RM3.40.
The strong rebound of the US equity market over the past week caught us by surprise and probably negated our S&P500 head & shoulder formation. The S&P500 may have already completed its minor wave "b" consolidation at the end of last week and the wave "c" up leg may have just begun. If so, the index could hit 1,050. The Dollar Index looks technically weak, with the MACD and RSI technical indicators turning negative. We see one more down leg minor wave "v" to complete the minor wave "c". This would synchronise with our view that global equity markets could have just started their minor wave "c" upleg. We believe the performance of South Korea's Kospi could give us an idea where Asian markets are heading in the coming weeks. The index led Asia's rally since Mar and peaked in May, earlier than the other Asian equity markets. Kospi should be the first to start its minor wave "c".
FY09P/E: N/A, P/BV: 1.7x
• Perisai broke past the triangle resistance and its key MAs early this week. However, it appears that this upwards momentum is fading. At this juncture, It is crucial for these candles to sustain above its 50-day SMA of RM0.58. Failing to do so could see the RM0.56 and RM0.545 supports being challenged.
• MACD is poised for a positive crossover while its RSI is also neutral at 54. There is a minor resistance at RM0.65, followed by RM0.68 and RM0.72.
• Investors with lower risk appetite may want to wait for a base-building pattern before accumulating. Buy on dips.
FY09P/E: N/A, P/BV: 1.0x
• Time dotcom is still gyrating in a sideways trend. It tested the support trend line lately and bounced off strongly to above its key MAs. However, the formation of a black candlestick yesterday made things complicated, as it shows diversion between the bulls and the bears.
• Expect trading to be volatile over the next few days. Our longer term view however stays. Any pullback towards the RM0.355 support trend line is a chance to accumulate.
• Indicators remain conducive. MACD has staged a positive crossover while its RSI is neutral at 52. If it manages to hold on above the key MAs, expect it to test the RM0.44 and RM0.46 resistances soon.
Kencana Petroleum Bhd has secured a US$11.9 million (RM42 million) contract from US-based Global Offshore International to fabricate parts for the pipe-lay barge.
Kencana said on July 16 the contract comprises of fabrication of stinger systems and handling system for the pipe-lay barge.
"The contract is a one-off construction contract and is expected to be delivered in stages from end of 2009 to second quarter of 2011," it said.
Kencana said the contract was expected to contribute positively to the earnings of for the financial years ending July 31, 2010 and 2011
Optimism is growing on the prospects of Malaysia's investment climate improving following the liberalisation measures announced by the government, the latest ING Investment Dashboard Survey showed.
According to the quarterly survey, investors agreed that the actions taken by the Datuk Seri Najib Razak administration, along with rallying financial markets, had boosted sentiment in the country from "pessimistic" (60 points) to "optimistic" (122 points).
The second-quarter survey was conducted from April to May.
"The first 100 days of the country's new leadership has seen some strong measures being put in place to revive the flagging economic situation. The rise in investors' confidence shows that they are responding positively to the enhanced focus on performance," ING Funds Bhd CEO Datuk Steve Ong said in a statement.
"The recent market rally was based on the belief that the market has now stabilised and is at the early recovery stage. We believe the market's recuperative stance together with improved market confidence will support the prospects for a positive growth into the final quarter and 2010," Ong said.
The positive outlook continued when it came to investors' personal financial and household situation. Around 30% of respondents said their personal financial situation had improved in the last quarter.
Following the strong performance in the financial markets in 2Q 2009, an increasing number of Asian investors had indicated that their return on investment had increased, with investors from China, India, Taiwan, Hong Kong and Singapore indicating the highest increases for the quarter.
For the second half of the year, 62% of Asian investors (ex-Japan) were expecting their return on investment to improve further. The survey also indicated that Asian investors (ex-Japan) were optimistic that the stock market would continue its good run in the third quarter, with only 25% expecting the markets to fall.
Stocks to watch on July 17 include Parkson Holdings Bhd, Gamuda Bhd, Kumpulan Perangsang Selangor Bhd and oil and gas companies.
Parkson would continue to attract interest as its China retail business would be supported by stronger consumer spending as the economy continues to register strong growth.
Gamuda and KPS are likely to attract some interest after receiving a third offer letter from the Selangor Government over its proposed takeover of SPLASH's water-related assets and operations.
Under the revised offer, the offer price of RM2.97 billion and all other key terms remain the same except that the state had agreed to continue to retain Sungai Harmoni Sdn Bhd and Gamuda Water Sdn Bhd, said Gamuda yesterday.
Meanwhile, KNM Group Bhd, Dialog Group Bhd and Kencana Petroleum Bhd have been identified by OSK Investment Research as likely beneficiaries of a proposed US$10 billion refinery project in Merapoh.
Kencana secured a US$11.9 million (RM42 million) contract from US-based Global Offshore International to fabricate parts for a pipe-lay barge.
Compugates Holdings Bhd could be in focus after Celcom Sdn Bhd proposed to terminate its distributorship agreement with the company. The distributorship accounted for 44.47% of Compugates' revenue in the financial year ended Dec 31, 2008.
The FBM KLCI, which was the best performer among regional markets on July 16, could continue to extend gains on July 17 but this would also hinge on external markets and fresh corporate news, especially from the US.
On July 16, the FBM KLCI closed 1.06% higher to 1,108.88, the highest since Aug 29 last year but off the day's best of 1,120.41. The volume had also surged more than one billion units.
MIDF Research head Zulkili Hamzah said the strong market performance was underpinned by the wave of optimism from regional and overnight US markets. Participation has improved and now broad-based as retail investors picked up penny stocks.
Zulkifli said the rally was sustainable provided that the momentum in external markets remains intact, and that there was no immediate country-specific risk as far as Malaysia is concerned.
"Asian equity is just enjoying a renaissance resulting from a flow of global liquidity as a result of pump priming measures and easy money policy around the world. More importantly, the currency risk in holding the greenback, which was less of a factor before the financial crisis, has increased the relative attractiveness of markets in Asia," he said.
Positive news which would continue support buying interest was that China's GDP grew 7.9% in 2Q, well above the 6.1% growth registered in 1Q09, encouraged by massive government spending and a big spike in bank lending.
In the US, JPMorgan Chase & Co said record investment banking fees helped drive a 36% rise in quarterly profit, topping Wall Street forecasts, but warned that credit quality in consumer mortgages and credit cards is deteriorating faster than it expected.
| COMMENCED: OCTOBER 1, 2008 | CAPITAL: RM 100,000 | CASH: | 10,181.06 | |||||||
| DAILY TRANSACTION | | | | | | | | | ||
| D/PUR | STOCK | QTY | PRIC | FEE | TOTAL | D/SLD | PRIC | FEES | TOTAL | G/L |
| 071609 | IncKen | 20,000 | 0.3600 | 40.40 | 7,240.40 | | | | | |
| 071609 | Keuro | 20,000 | 0.3800 | 42.20 | 7,642.20 | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | TOTAL | 14,882.60 | | | | 0.00 | |
| SHARES IN HAND | | | | | | | | | ||
| 041709 | Minply | 90,000 | 0.2888 | 140.96 | 26,132.96 | | | | | |
| 051409 | Keuro | 50,000 | 0.4090 | 113.03 | 20,563.03 | | | | | |
| 060409 | SAAG | 50,000 | 0.3670 | 101.58 | 18,451.58 | | | | | |
| 061509 | LionCor | 60,000 | 0.4967 | 164.11 | 29,966.11 | | | | | |
| 063009 | Jaks | 20,000 | 0.8800 | 97.20 | 17,697.20 | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | | | | |
| | | | | | | | TOTAL | 0.00 | 0.00 | |
| | | | | | | | B/F | | G/L | 62,629.81 |
| | TOTAL INVESTMENT: | | 112,810.87 | GRAND TOTAL | | 62,629.81 | ||||
| 050409 | Cash Withdrawal | | | | | | 20,000 | 20% | ||
| 052509 | Cash Withdrawal | | | | | | 20,000 | 20% | ||
| 061109 | Cash Withdrawal | | | | | | 20,000 | 20% | ||
| TOTAL | | | | | | | | 60,000 | 60% | |
Asian stocks advanced as faster economic growth in China and an improvement in U.S. manufacturing gauges fueled optimism the global economy is recovering. US Dow Jones surged by 256 points last night.OSK Research Sdn Bhd said it has "buy" ratings on KNM Group Bhd, Kencana Petroleum Bhd and Dialog Group Bhd.
The three companies are the "likely beneficiaries" of a planned US$10 billion refinery in Malaysia, OSK said.
"Any additional new capital expenditure spending into the oil and gas industry will create more job opportunities for our local players," OSK said in a report today.
At midday close, KNM Group, Malaysia's biggest listed oil and gas services provider, rose 4.8 per cent to 87.5 sen, set for the highest level since June 25. It's the most active on the Kuala Lumpur stock exchange with 94 million shares traded.
IDAMAN Unggul Bhd now has until November 29 this year to submit a revamp plan to the Securities Commission, after Bursa Malaysia gave the company a six-month extension.
In the event that the company fails to submit the plan to the Approving Authorities (AA), or fails to obtain approval from the AA for the plan, Idaman will be delisted from the local stock exchange.
AmResearch Sdn Bhd head of research Benny Chew Yow Leng told The Edge Financial Daily that the FBM KLCI was moving in tandem with the strong regional markets' positive sentiment.
However, he said the research house was maintaining its 1,190 forecast for the FBM KLCI for early next year, adding that fundamentals had not changed very much.
"There will be a pull-back in the near term, meaning over the next one to two months, as the market is still volatile. Earnings turnaround will be from early next year, so we expect some stabilisation then," he said.
The ringgit also strengthened against the US dollar on July 15 and was quoted at 3.5630 per dollar at 5pm versus 3.5825 the previous trading day.
Plantations also extended their recovery, with crude palm oil up RM75 per tonne to RM2,115 for August delivery and RM67 per tonne to RM2,103 for September delivery. Crude oil gained 95 cents per barrel to US$60.47 (RM215.88) as at 6.40pm on July 15.
The market is expected to continue its upward trend on July 16, underpinned by strong interest in blue chips, especially big capitalised stocks including banks and plantations.
Sentiment on Bursa Malaysia has perked up over the past two days, shored up by the firmer Wall Street and fresh batch of analysts reports about a recovery in the US and Europe, especially China and Singapore.
Intel led the stock rally charge in the US markets early July 15. The chip maker posted better-than-expected results late Tuesday and gave a rosy sales forecast for the current quarter.
China is scheduled to announce its GDP data in the morning.
The 11-month high close on Bursa Malaysia saw the 30-stock FBM KLCI closing just below the key 1,100 level. However, more fresh economic data and stronger corporate news will be needed for the FBM KLCI to stay above the 1,100 level.
A firmer recovery in the economies will see greater focus on bank stocks, which of course led the rally on Wednesday.
Plantation stocks could also attract fresh interest, with the third-month crude palm oil futures staying firmly above the RM2,000 level. IOI Corp, KL Kepong and Sime Darby would be stocks to watch.
In Goh Ban Huat, Tan Sri Tan Hua Choon, or Robert Tan, was given more time by the Securities Commission (SC) to despatch his offer document in his takeover for the company. Prior to the extension, he was required to despatch the document tomorrow.
Tan had announced his takeover offer on June 25, for the remaining 69.55% stake he did not already own in GBH, at RM1.25 a share. His interest rose to 33.11% following the announcement of the offer.
Merge Energy will be uplifted from classification as an amended Practice Note 17 company. Bursa Securities decided to approve the company's application for upliftment from the PN17 status without having to submit a plan to regularise its condition.
Better-than-expected earnings at Intel sent investors pouring back into the market Wednesday, sending stocks higher in early trading.
Chipmaker Intel Corp.'s report after the market closed Tuesday lifted investor confidence because its sales figures suggest consumers are purchasing computers at a faster rate than anticipated, a potential sign the economy is recovering.
Consumer spending accounts for more than two-thirds of economic activity. Increased spending by consumers is widely seen as a key to an economic recovery.
In another sign the recession is easing, a new report showed industrial companies cut back production again in June, but not nearly as much as they have been in previous months.
The Federal Reserve said production at the nation's factories, mines and utilities fell 0.4 percent last month, after declining 1.2 percent in May.
Investors were little swayed by a Labor Department report Wednesday that showed consumer prices rose 0.7 percent in June, its fastest pace in 11 months as gasoline costs surged. Economists were predicting a rise of 0.6 percent after a 0.1 percent gain in May.
The Dow Jones Industrial Average gained 256.72, or 3.1%, to 8616.21, while the S&P 500 climbed 26.84 points, or 3%, to 932.68. The Nasdaq Composite advanced 63.17 points, or 3.5%, to 1862.90.
Investors will be watching three other big banks — JPMorgan Chase & Co., Bank of America Corp. and Citigroup Inc. — reporting second-quarter results this week to see whether the industry is recovering.
