KLSE Market | Malaysia News for 2010-01-29 

  The Star

Russia’s first stealth fighter makes maiden flight
MOSCOW: Russia’s first stealth fighter intended to match the latest U.S. design made its maiden flight Friday, boosting the country’s efforts to modernize its rusting Soviet-built arsenals and retain its lucrative export market.


  Alaska gas pipeline could cost US$41bil
JUNEAU, Alaska: The company holding an exclusive license with the state of Alaska to develop a major natural gas pipeline estimates the project will cost US$20 billion to US$41 billion, depending on the route.

US$ rises to 6-month high vs euro
NEW YORK: The US dollar got a lift Friday as the U.S. economy posted its fastest growth in more than six years in the fourth quarter.

Oil price falls nearky US$10 per barrel in Jan 2010
NEW YORK: For the past several months, oil prices have soared on the expectation that China would soon lead a new race for natural resources. But government data released so far this year has told a different story, and oil has tumbled nearly US$10 a barrel in the first month of 2010.

Volatile stock market weighing on US IPOs
NEW YORK: Companies trying to sell their shares in initial public offerings had a hard time finding willing buyers in January – a trend that will likely continue until the stock market stabilizes.

AIG discloses details on toxic securities that triggered rescue
NEW YORK: American International Group Inc. on Friday disclosed details of the toxic securities that helped trigger a massive taxpayer rescue of the giant insurer.

US stocks fall on doubts about recovery’s strength
NEW YORK: U.S. stocks ended a disappointing January with a loss as investors questioned whether the economy will be able to sustain its big fourth-quarter growth rate. Downbeat earnings at technology companies also pulled stocks down.

Walmart pendants recalled as Disney bans cadmium
NEW ORLEANS: Federal consumer safety regulators on Friday announced the recall of “The Princess and The Frog” pendants sold at Walmart stores because of high levels of the toxic metal cadmium, an unprecedented action that reflects concerns of an emerging threat in children’s jewelry.

Argentina’s Central Bank president resigns
BUENOS AIRES: Argentina’s Central Bank chief resigned Friday, saying he could do no more to protect the nominally independent institution from the president’s efforts to control its dollar reserves.

Toyota says new accelerator pedals are en route to dealers


LCL names potential US investor
PETALING JAYA: Troubled firm LCL Corp Bhd has named US’ second-largest interior and exterior contractor KHS&S as a potential investor to help revive the company.

Asian markets down on falling investor confidence
PETALING JAYA: Asian markets fell yesterday after fresh concerns on the health of the global economy eroded investor confidence.

We are ‘normalising’ interest rates, says Zeti
KUALA LUMPUR: Bank Negara’s move to potentially raise interest rates in the near future should be viewed as a “normalisation” process, rather than an act of “tightening” monetary policy, said governor Tan Sri Dr Zeti Akhtar Aziz.

MK Land profit down, sees better year ahead
PETALING JAYA: Property developer MK Land Bhd reported a lower net profit of RM3.8mil in the second quarter ended Dec 31 from RM5.2mil a year earlier, but sees a better year ahead on expectation of higher sales and tighter cost control.

Decision on Petra injunction on Feb 18
KUALA LUMPUR: The Commercial Court has fixed Feb 18 for a decision on whether to lift the injunction to stop further sales of Petra Energy Bhd (PEB) shares by Petra Perdana Bhd.

Poll shows boards need to improve on governance
In line with efforts to promote best practices among listed companies, the Minority Shareholder Watchdog Group has published the inaugural Malaysian Corporate Governance (MCG) Index 2009 which also aims to provide information and guidance on corporate governance standards.

IOI expects brisk sales of Adenia phase one homes
KUALA LUMPUR: IOI Corp Bhd’s property arm IOI Properties Bhd is confident of selling all 147 residential units offered under phase one of its Adenia project by tomorrow.

Your 10 questions
Corporate personality Tan Sri MegatNajmuddin Megat Khas fields the 10questions posed to him by our readers.

Up close & personal with Martin Khor
An advocate of the developing world, heshares how he dealt with world leaders atthe recent Copenhagen Climate ChangeConference.

Toyota, Lexus cars in Malaysia not affected by recall exercise
PETALING JAYA: Toyota owners in Malaysia can breathe easy knowing that their cars are unaffected by the “faulty accelerator pedal dilemma” that has resulted in the recall of millions of Toyota vehicles in the United States, Europe and China.

Jetson seeks tie-up with China firm
PETALING JAYA: Kumpulan Jetson Bhd, which is controlled by the two sons of Naza Group founder, the late Tan Sri SM Nasimuddin, has proposed a tie-up with China State Construction Engineering (Hong Kong) Ltd (CSC HK) to bid for a contract to build office towers to be developed by Naza TTDI Sdn Bhd.

Government plans transfer of some MoF firms
KUALA LUMPUR: The Government plans to transfer some of the Ministry of Finance Inc-owned companies to private companies to boost private sector investment.

Bank Islam eyes M&A opportunities in S-E Asia
KUALA LUMPUR: Bank Islam Malaysia Bhd is looking for merger and acquisition opportunities in the South-East Asian region, according to managing director Datuk Zukri Samat.       

HLFG to issue RM2b notes
PETALING JAYA: Hong Leong Financial Group Bhd (HLFG) has proposed to issue medium-term notes (MTN) of up to RM2bil in nominal value to raise funds for its working capital and investment purposes.

DRB-HICOM plans auto university college
PETALING JAYA: DRB-HICOM Bhd plans to set up an automotive university college to produce skilled human capital for the industry.

AE Multi in talks to buy cruise firm
PETALING JAYA: AE Multi Holdings Bhd is in negotiations to acquire an 18% in BL Holdings Ltd, a company located in the British Virgin Islands.

MMC reduces stake in IRCB
PETALING JAYA: MMC Corp Bhd sold 15 million shares in Integrated Rubber Corp Bhd (IRCB) on Tuesday, it told Bursa Malaysia, but did not disclose the price of the transaction.

RAM reaffirms Toyota Capital’s notes scheme ratings
KUALA LUMPUR: Toyota Capital Malaysia Sdn Bhd’s long and short-term ratings of its RM1bil Islamic commercial papers/medium-term notes (MTN) programme (2008/2015) have been reaffirmed at AAA(s) and P1(s) respectively, according to RAM Rating Services.

MFM in tie-up with Toyota Tsusho to sell feed materials
KUALA LUMPUR: Malayan Flour Mills Bhd (MFM) has formed a joint venture (JV) with Toyota Tsusho Corp and Toyoto Tsusho (S) Pte Ltd to carry out trading of raw materials for animal feed.

Utusan buys publishing firm
KUALA LUMPUR: Kumpulan Utusan (M) Bhd, via unit Juasa Holdings Sdn Bhd, has acquired the entire equity of publishing company Arah Pendidikan Sdn Bhd.

Al-Hadharah REIT profit up 8.8%
KUALA LUMPUR: The Al-Hadharah Boustead REIT (real estate investment trust) achieved an 8.8% increase in realised operating profit of RM69mil for its financial year ended Dec 31, 2009 (FY09) from RM63.5mil in the previous year.

The Store reports variance in results
PETALING JAYA: The Store Corp Bhd has reported a variance between the audited and unaudited financial statements for its financial year ended Sept 30, 2009 (FY09) following the provision of allowance for doubtful debt of RM10.827mil.

Steady CPO prices to bolster Chin Teck FY10 results
KUALA LUMPUR: Chin Teck Plantations Bhd is confident of recording better results for its financial year ending Aug 31, 2010 (FY10), according to executive director Wong Aun Phui.

More choices in the offing for TM HSBB users
KUALA LUMPUR: Telekom Malaysia Bhd (TM) expects competition and participation from wholesale value-added partners for its high-speed broadband (HSBB) to offer more variety and choice to consumers.

Etiqa Takaful appoints Shahril CEO
KUALA LUMPUR: Etiqa Takaful Bhd has appointed Shahril Azuar Jimin chief executive officer.

Capital dilemma
If the country’s capital outflow persists, it could leave a dent in Malaysia’s investment prospects. How worrying is it at this point and what can be done to cap the outflow?

Zeti: Trend not a cause for concern
The issue of significant capital outflows that the country has been witnessing, particularly during the global crisis, has sparked wide interest in recent weeks. A recent research report questioned why Malaysia experienced capital outflows in 2009 that were far larger than many countries, and it was deemed especially puzzling because Malaysia has a large current account surplus. Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz responds to a few salient questions.

How foreign investors view Malaysia
ONE can’t help but shake off the notion that Malaysia, once a sweet spot for foreign direct investment (FDI), is gradually falling off the radar. Having said that, it ought to be noted that as far as FDI flows go, the country had actually fared quite well in the first decade of the 21st century.

Malaysian reserves still healthy
MALAYSIA’S balance of payment (BOP) and foreign exchange reserves remain in a healthy state despite a massive outflow of capital amounting to US$38.1bil or 17.1% of GDP between July 2008 and April last year.

FDI impact on ringgit and stock market
DOES a drop in foreign direct investments (FDIs) have a negative impact on the currency and stock market? On the surface, it does not look like it for the stock market as the key barometer (then called KLCI index) had remained stable from 2001 to 2005, when there were net inflows.

A financial thriller
Too Big to Fail: Inside the battle to save Wall Street – Review by ABBY WONG

Snapshots
By THEAN LEE CHENG

SMEs urged to explore new markets
LOCAL small and medium enterprises (SMEs) are urged to penetrate countries in the Middle East, East Asia, South Asia and African markets as an avenue to improve their international trade performance.

Rising trend of share buyback
WHEN the stock market is going strong, share buyback programmes are expected to take a backseat.

Bargaining for controlling stake in EON Cap
THE bargaining has begun. It is hard to believe that EON Capital Bhd’s (EON Cap) major shareholders will not want a better price than the RM7.10 per share offered by Hong Leong Bank Bhd (HLB) for the former’s entire assets and liabilities.

Sozo to tap on Malaysia halal stature for global export
SHANDONG-BASED Sozo Global Ltd, a one-stop gourmet convenient food specialist, is banking on tapping Malaysia’s halal food stature on the world stage to penetrate the booming and lucrative global halal food segment which boasts an annual worth of US$2 trillion.

Forum sees Asia as the heart of the new global economic order
THE third Asian Financial Forum held recently was a highly charged affair with diverse views and ideas being exchanged among some 1,500 high-powered delegates from 31 countries and regions had come together.

SP Setia in growth mode in southern Johor
SP Setia Bhd’s performance in southern Johor will be on the road to stronger growth given the number of projects in the pipeline and the overall economic recovery in the country, says executive vice-president (property division – northern and southern region) Chang Khim Wah.

Joint ventures the new way to build?
THE coming together of two well regarded property groups, Sime Darby Property Bhd and Sunrise Bhd, to jointly develop a RM1bil integrated commercial property project in Bukit Jelutong, Selangor is quite a new development in corporate Malaysia and will be closely watched by industry players to see how it pans out.

Ready for a retirement transformation?
NO doubt about it, 2009 was ne of the most economically challenging years because it has impacted the way Malaysians view their personal financial futures.

‘Government-driven’ inflation poser
Will the quantum of price increase erode spending power?

EconBriefs
Compiled by CECILIA KOK

A relief rebound soon
TREND ANALYSIS – By K.M. LEE

BHP pushes growth of iron ore       
SYDNEY: BHP Billiton Ltd, the world’s biggest miner, has approved US$1.93bil in capital expenses to spruce up rail and port facilities as it steps up expansion of its Australian iron-ore business to feed rising demand from China’s steelmakers.

Congress probes Toyota recalls
WASHINGTON: Toyota Motor Corp faced scrutiny from US Congress over its biggest-ever safety recall as investors and consumers weighed the impact of an unprecedented halt in US production by the No. 1 vehicle maker.

Honda recalling 646,000 units globally
TOKYO: Honda Motor Co said yesterday it would recall a total 646,000 units of the Fit/Jazz and City models globally, including 140,000 in the United States.

Poor Ekran investors
From Khoo

Not a bubble yet
From CJ

A special year for Tiger Beer
GAB lines up a host of A&P activities to link consumers with the brand.

Keeping the drive alive
THE past one year has been a sobering one for the advertising industry, which had been known for paying exorbitant salaries and focusing too much on awards.

Resignation is no refuge
Directors can walk away from companies but not from duties.

Reigning in the banks
There is little question that banks need to be reigned in and watched closely – it’s a question of how much

We still don’t get it
THE Great Recession started in the United States in late 2007. It brought in its wake the biggest bubble since the Great Depression (1929-32). The past two years were difficult.

Mobile broadband networks need to become smartphone-friendly fast
FOLLOWING the highly-anticipated announcement of Apple’s iPad on Wednesday, it is safe to say that smartphones and tablets connected to mobile networks are going to be the focus du jour.

  The Malaysian Mail

Flat trading in Euro stocks
LONDON: European stocks ended mixed yesterday amid concerns on Greece’s debt crisis and the stability of Austrian banks, as well as investor speculation on a possible early hike in US interest rates.. London’s FTSE 100 index of leading shares closed down 0.56 per cent at 5,285.77 points while in Paris the CAC 40 inched up 0.10 per cent to 3,834.09 and the Frankfurt Dax rose 0.16 per cent to 5,811.34.. Zurich was up 0.10 per cent, Brussels rose 0.08 per cent and Amsterdam gained 0.83 per cent, but Milan fell 0.15 per cent and Madrid was down 0.25 per cent.


  Wall Street ends lower
NEW YORK: Wall Street stocks retreated yesterday with investors turning skittish in the face of mixed economicnews and as a two-day Federal Reserve meeting on monetary policy got underway.. The Dow Jones Industrial Average dropped 49.05 points (0.47 per cent) to close at 10,452.00, a day after the blue chip index’s highest close since October 2008.. The technology-rich Nasdaq composite lost 11.05 points (0.50 per cent) to 2,201.05 and the Standard & Poor’s 500 index shed 6.18 points (0.55 per cent) to close at 1,107.93.

Fed likely to maintain stimulus
WASHINGTON: The US Federal Reserve concludes a two-day meeting today expected to pledge ongoing stimulus for a recovering US economy.. The Federal Open Market Committee (FOMC) is widely expected to keep its near-zero interest rate policy and a range of programmes to flood the financial system with money to restore credit flows.

Dream comes true for Boeing (finally)

BIZ BRIEFS: AirAsia to expand India routes

Colourful chips in the market

QMS launches hub in KL
KUALA LUMPUR: Qatar Media Services (QMS) aims to be a leading regional media partner leveraging on several platforms such as outdoor, print, online and television in countries like Australia, Hong Kong, Vietnam, Taiwan, Singapore, Korea, Japan and Malaysia in areas of media representation, media buying and consultancy services.. Trademarked as Q.media, the media representative for the Al-Jazeera Network and numerous other global and regional media networks, it launched its Asia Pacific hub here this morning.


  The Edge Malaysia

MMC Corp sells 15m IRCB shares
KUALA LUMPUR: Shares of Integrated Rubber Corporation Bhd (IRCB), whose share price had rallied in recent weeks in line with the broader latex glove sector, saw MMC Corp Bhd selling 15 million shares ….

US fund buys 12.56m AirAsia shares
KUALA LUMPUR: US-based fund US fund Wellington Management Co. bought 12.56 million AirAsia Bhd shares from Jan 18 to 21.A filing with Bursa Malaysia showed it acquired 2.7 million shares on Jan 18 and….

Sime, MISC, CIMB weigh on blue chips
KUALA LUMPUR: Key regional markets fell in early trade on Friday, Jan 29 as investors’ sentiment was impacted by the weak Wall Street and other external factors, with Hong Kong down 1.3% at the openin….

Obama to propose US$33 bln tax credit to create jobs
WASHINGTON, Jan 28 (Reuters) – President Barack Obama will propose a $33 billion tax credit to encourage small businesses to hire workers and raise wages in 2010, an administration official said on Th….

US Senate backs Bernanke for second term at Fed
WASHINGTON: The U.S. Senate on Thursday backed Ben Bernanke for a second four-year term running the Federal Reserve, the world’s most powerful central bank, despite deep misgivings over his perceived ….

AmResearch positive on banking sector
KUALA LUMPUR: AmResearch remains positive on the banking sector following the positive developments from the data in December 2009, especially after industry loan growth accelerated to 7.8% YoY in Dec….

RHB Research ups Hartalega FV to RM7.93
KUALA LUMPUR: RHB Research has raised fair value for Hartalega to RM7.93 (from RM7.36) based on unchanged target CY10 PER of 13 times. However, its Market Perform call, however, remains unchanged.It s….

HDBSVR ups Kinsteel earnings
KUALA LUMPUR: Hwang DBS Vickers Research raised Kinsteel Bhd’s FY10-11F earnings on stronger sales and margin recovery, but cut FY09F profit on weaker than expected margin recovery in 4Q09.It said on ….

HDBSVR raises Sunrise TP to RM2.80
KUALA LUMPUR: Hwang DBS Vickers Research said Sunrise Bhd’s 2QFY10 results were within its and consensus estimates and it maintained a Buy at RM2.21 while it raised the target price to RM2.80 from RM2….

#Flash* Stocks skid again, FBM KLCI down 6pts
KUALA LUMPUR: Blue chips skidded in early trade on Friday, Jan 29 as investors retreated after the weak overnight close on Wall Street where the key indices fell between 1.1% and 1.9%.At 9.02am, the F….

No recall issue, UMW Toyota assures
KUALA LUMPUR: Toyota and Lexus models sold by UMW Toyota Motor Sdn Bhd are not affected by the design fault that necessitated the recall of certain Toyota cars in the US, company president Kuah Kock-H….

LCL says US-based theme contractor potential investor
KUALA LUMPUR: LCL Corporation Bhd, whose fortunes have been battered following its over exposure to the Dubai property market, has identified US-based KHS&S as a potential investor to regulari….

AE Multi eyes 18% of cruise operator
KUALA LUMPUR: AE Multi Holdings Bhd is in talks to acquire 18% of British Virgin Islands-registered BL Holdings Ltd, which owns a cruise business.AE Multi said on Friday, Jan 29 the investment is S$50….

The Store reports variance over doubtful debt of RM10.8m
KUALA LUMPUR: The Store Corp Bhd has reported a variance between the audited and unaudited financial statements for FY ended Sept 30, 2009 following the provision of allowance for doubtful debt of RM1….

BLand, Selangor Turf Club extend deadline
KUALA LUMPUR: Berjaya Land Bhd’s unit Selat Makmur Sdn Bhd and Selangor Turf Club have agreed to extend the conditions involving the proposed acquisition of 244.79 acres of leasehold land in Sungai Be….

Jetson, China company in JV for construction project bid
KUALA LUMPUR: Kumpulan Jetson Bhd has inked an MoU with China State Construction Engineering (Hong Kong) Ltd (CSCHK) to look into the possibility of tendering for  a construction project along Jalan ….

Zeti: Interest rates need normalisation
KUALA LUMPUR: Some “normalisation” of the interest rates are now in order after they were reduced to “unprecedented” levels following the global financial crisis, said Bank Negara governor Tan….

Al-Hadharah Boustead REIT posts operating profit of RM69m for FY09
KUALA LUMPUR: The Al-Hadharah Boustead REIT posted operating profit of RM69 million, up 8.8% from RM63.5 million in 2008 mainly due to a stronger contribution from fixed rental income as a result of t….

DRB-Hicom plans university college for automotive skills
KUALA LUMPUR: DRB-Hicom Bhd plans to set up a university college for the automotive industry as it seeks to produce skilled human capital for the sector.It said today, it had incorporated a subsidiary….

HLFG to issue RM2b debt paper for working capital, investment
KUALA LUMPUR: Hong Leong Financial Group Bhd has proposed to issue medium-term notes (MTN) up to RM2 billion in nominal value  to raise funds for its working capital and investment purposes.HLFG said….