KLSE Market | Malaysia News for 2010-08-25

  The Star

RAM: GDP to expand 7.4% for the year
RAM Ratings expects gross domestic product (GDP) to expand 7.4% for the year following the Government’s announcement that GDP grew 8.95 in the second quarter ended June 30, 2010.


  Gloomy external news to impact market ahead
Asian bourses may find the going tougher ahead as the macro outlook turns gloomier with the pace of growth slowing in key economies.

Japan said Wed export growth slowed for fifth month in July
TOKYO: Japan’s export growth slowed for the fifth straight month in July, the government said Wednesday, as the global economy loses momentum and a strong yen threatens to derail the country’s recovery.

Dell launches US$99 smart phone on AT&T
ROUND ROCK, Texas: Dell Inc. said Tuesday its Aero smart phone is now on sale in the U.S. for US$99 with a two-year AT&T contract.

US SEC charges two with insider trading on BHP-Potash
WASHINGTON: Federal regulators have charged two Spanish investors with trading on secret information about BHP Billiton PLC’s bid to acquire Potash Corp.

Oil prices sink as more weak economy data roll in
NEW YORK: Oil prices sank again on Tuesday after a disappointing report on U.S. home sales underlined the slow economic recovery and weak demand for oil and gas.

US$ tumbles to 15-year low versus yen
NEW YORK: The dollar tumbled to a 15-year low against the yen Tuesday as worries about a slowdown in the global economy boosted currencies seen as safer bets.

US, European and Asian stocks fall(update)


Why is there a lack of interest in the market?
THE FTSE Bursa Malaysia KL Composite Index (FBM KLCI) finally touched 1400-level again. Despite high index level, the overall daily traded volume remained low at about 700 million-800 million. We believe, except for certain fund managers and day traders, not many retail investors were excited about the market. In this article, we will look into the reasons why investors are not investing at the moment.

CIMB is biggest stock in M’sia at RM57.99bil
PETALING JAYA: CIMB Group Holdings Bhd consolidated its position as the biggest stock on Bursa Malaysia for a second day, ahead of close rival Malayan Banking Bhd (Maybank), amid some mild selling pressure yesterday.

Bank Negara: No target for level of ringgit, but orderly market to be ensured
KUALA LUMPUR: While Bank Negara has not set a target for the level of ringgit it deems appropriate, it will continue to ensure orderly market conditions, said governor Tan Sri Dr Zeti Akhtar Aziz.

Why must we trade in the region using $US?
IT may be easier said than done – to reduce the interdependence on the US dollar while encouraging transactions in regional currencies.

IDB to list US$3.5bil sukuk bonds in KL and London
KUALA LUMPUR: The Islamic Development Bank (IDB) will dual list US$3.5bil of its sukuk bonds in Kuala Lumpur and London by the year-end.

Genting M’sia gets nod for UK casino purchase
KUALA LUMPUR: Shareholders of Genting Malaysia Bhd voted yesterday in favour of resolutions to acquire the British casino operations collectively known as Genting UK from Genting Singapore plc despite initial misgivings over the related party transaction nature of the deal.

YTL unit may drop out of project to clean Klang River
PETALING JAYA: YTL Corp Bhd’s Wessex Water Ltd may no longer participate in the multi-billion ringgit project to rehabilitate and develop the polluted Klang River, sources said.

K-Star looks to raise funds
KUALA LUMPUR: K-Star Sports Ltd, one of the China-based companies listed on Bursa Malaysia, is looking at a few options to raise funds for future expansion plans.

QL Resources keen on M&A talks
KUALA LUMPUR: QL Resources Bhd is willing do discuss mergers and acquisitions if they can benefit the company, according to managing director Chia Song Kun.

Energy sector under-represented in market?
IT’S not surprising that power companies would usually turn out to be one of the favourite picks among many investors. The qualities of these counters, which include the ability to withstand difficult economic conditions, or what the markets call “defensive,” and generate attractive dividend yields, typically make them a must-own investment class for many.

Xstrata launches US$381m bid for Sphere
SYDNEY: Coal and base metals miner Xstrata pushed deeper into the iron ore sector yesterday with a US$381mil agreed takeover of Australian-listed Sphere Minerals AX, which holds magnetite iron ore deposits in Mauritania.

Will more provisions hit Sime’s Q4 results?
PETALING JAYA: Sime Darby Bhd is expected to make more provisions in its fourth quarterly report due to be released tomorrow, confirming earlier reports, industry sources said.

Telekom Q2 net profit within expectations
PETALING JAYA: Despite recording a lower net profit in its latest quarter, analysts said Telekom Malaysia Bhd’s (TM) results were largely within expectations because operationally its earnings did not decline much.

IOI net profit rises on higher CPO prices
PETALING JAYA: IOI Corp Bhd’s net profit rose 12.3% to RM547mil in the fourth quarter ended June 30 against the corresponding quarter of last year mainly contributed by higher crude palm oil (CPO) prices.

RHB Capital posts higher profit
PETALING JAYA: RHB Capital Bhd posted higher net profit of RM339mil for its second quarter results ended June 30, 2010 from RM301.5mil it gained on the same period last year.

Forex losses pull down Maybulk Q2 net profit
KUALA LUMPUR: Despite posting a 36% higher revenue of RM96mil in the second quarter ended June 30, Malaysian Bulk Carriers Bhd (Maybulk) saw its net profit more than halved to RM31.6mil from RM71.1mil in the previous corresponding period.

KFCH Q2 net profit up on improved cost efficiency
KUALA LUMPUR: KFC Holdings (M) Bhd’s (KFCH) net profit rose to RM35.7mil for the second quarter ended June 30 from RM31.7mil in the previous corresponding period due to better cost efficiency from its KFC restaurant business.

TdC posts lower second quarter earnings
KUALA LUMPUR: TIME dotCom Bhd (TdC) posted a lower net profit of RM22.98mil in its second quarter ended June 30 (Q2), compared with RM24.45mil in the same quarter last year.

TNB offered to develop 1,000 MW coal-fired power plant
KUALA LUMPUR: Tenaga Nasional Bhd (TNB) has been offered by the Government to develop the first unit of 1,000 MW coal-fired power plant on its existing power plant site in Manjung Perak.

Chalco looks to diversify into coal
SHANGHAI: Aluminum Corp of China Ltd (Chalco), the world’s biggest aluminium company by market value, said yesterday it aimed to diversify into the coal and rare earth businesses, as aluminium prices remain volatile.

IJM Land to launch properties worth RM1bil
SUBANG: IJM Land Bhd expects to launch new properties with a total gross development value (GDV) of RM1bil to RM1.2bil in the financial year ending March 31 (FY11), said chief executive officer and managing director Datuk Soam Heng Choon.

Axis-REIT proposes to buy Tesco JB complex for RM75.6mil
KUALA LUMPUR: Axis Real Estate Investment Trust (Axis-REIT) has proposed to acquire the Tesco JB hypermarket complex for a total lump-sum cash consideration of RM75.6mil from Bukit Indah (Johor) Sdn Bhd.

China housing prices likely to start dropping in Q4, says paper
BEIJING: Chinese property developers are facing strained cash flows and will be forced to cut prices beginning in the fourth quarter, a state newspaper reported yesterday, citing several bankers.

AmBank aims to give out RM500m car loans in 2010
KUALA LUMPUR: AmBank (M) Bhd aims to disburse about RM500mil car loans this year, a 2% growth of its total hire-purchase receivables of about RM24bil.

Tiger Airways to suspend some Australian flights
PETALING JAYA: Singapore’s Tiger Airways seems to be hogging the limelight recently and yesterday said it will suspend some flights for its Australian division by November this year.

Samling refutes Norway’s state pension fund claims
PETALING JAYA: Sarawak-based Samling Global Ltd has refuted its former investor Norwegian Pension Fund’s (NPF) claims that the group had repeatedly breached regulations of its timber activities in Sarawak and Guyana, contributing to illegal logging and severe environmental damage.

Germany’s Q2 growth strongest since reunification
BERLIN: A return to growth in consumer spending allied with buoyant exports helped spur Germany’s economy to its fastest rate of expansion since reunification in the second quarter, official data confirmed yesterday.




  The Edge Malaysia

Firefly expands turboprop fleet
KUALA LUMPUR: Firefly is increasing its turboprop fleet with the purchase of three additional ATR72-500s, two of which will be delivered in December 2010 and the third in January 2011. Entry into serv….

FBM KLCI falls after eight-day rally
KUALA LUMPUR: The FBM KLCI fell on Wednesday, Aug 25, in line with key Asian markets as Japan’s Nikkei average fell to its lowest in 16 months after the yen hit a 15-year high versus the dollar as dis….

Apple talks with media giants to rent shows
LOS ANGELES: Apple Inc is in talks with News Corp, Walt Disney and other media conglomerates to rent TV shows to viewers for 99 US cents (RM3.11) through iTunes, three sources with knowledge of the ma….

Toshiba plans solar power push in Europe, US
TOKYO: Japan’s Toshiba Corp said it plans to launch solar power projects in Europe and the United States, hoping to generate Â¥150 billion (RM5.59 billion) in overseas sales from solar power operation….

KFCH up in early trade
KUALA LUMPUR: KFC Holdings (Malaysia) Bhd’s (KFCH) share price rose in early trade on Wednesday, Aug 25 after the company’s 2Q earnings grew 12.7% to RM35.73 million from RM31.68 million a year ago, u….

FBM KLCI declines in early trade
KUALA LUMPUR:  The FBM KLCI opened lower on Wednesday, Aug 25, in line with the decline at regional markets following the overnight drop at Wall Street.At 9.05am, the benchmark index was 0.79 of a po….

HDBSVR expects stronger earnings momentum in 2H10 for MRCB
KUALA LUMPUR: Hwang DBS Vickers Research is maintaining its Buy call on Malaysian Resources Corp Bhd (MRCB) and its sum-of-parts (SOP) derived target price of RM2.25.. The research house said on Wedne….

FBM KLCI expected to pull back sooner, says HDBSVR
KUALA LUMPUR: With Wall Street coming under renewed selling pressures, the FBM KLCI is expected to pull back sooner rather than later, Hwang DBS Vickers Research said in its outlook report on Wednesda….

OSK Research maintains Trading Buy on Sino Hua An
KUALA LUMPUR: OSK Research said the weakening steel market since May 2010 may have capped Sino Hua An’s (Huaan) earnings upside but the net profit of RM4.8 million in 2Q ended June 30, 2010 managed ….

OSK keeps Trading Buy on MMC
KUALA LUMPUR: MMC Corp Bhd’s results were dragged down again by provisions at associates Zelan and Kapar amounting to some RM140 million for the first half ended June 30, 2010, says OSK Research.. â….