KLIA2:Mitsui to open outlet park at KLIA early 2015

SEPANG: Malaysia's new factory outlet park, the Mitsui Outlet Park KLIA, will start operations early next year, said Malaysia Airports Holdings Bhd (MAHB) chairman Tan Sri Dr Wan Abdul Aziz Wan Abdullah.

The park, the largest factory outlet shopping mall in Southeast Asia with 25,000 sq. m. of commercial area, hosts 140 outlets offering luxury products, fashion accessories, sporting and outdoor goods, a Japanese specialty store, entertainment centre as well as an amusement park, he said.

"The project marks another significant development of an exciting, much anticipated commercial project under the KLIA Aeropolis Masterplan," he said in his speech at the outlet's ground breaking here today.

Also present were Tourism and Culture Ministry secretary general Datuk Dr Ong Hong Peng and Mitsui Fudosan executive managing officer Takeshi Suzuki.

MFMA Development Sdn Bhd, a joint venture company between Mitsui Fudosan and Malaysia Airports, will undertake the construction, tenant leasing, promotions, management and operations of the mall.

"With an investment of RM335 million over three phases, we believe the project will translate to positive returns for the country's tourism and economy.

"We are honoured to have a trusted partner with Mitsui Fudosan, Japan's renowned and most reputable real estate and retail property developer," he said.

Meanwhile Malaysia Airports senior general manager Planning Khair Mirza said: "The people haven't had an outlet mall like this in the Klang Valley, this mall will be the ideal place for them," he told reporters.

He said a shuttle bus service from KLIA to the outlet, about six km away, is expected to be provided.

source NST

Malaysia-Turkey FTA to encourage business

ANKARA: Malaysian businesses should seize the opportunities to expand and flourish in Turkey to take advantage of the growing bilateral ties, said Prime Minister Datuk Seri Najib Tun Razak.

Malaysia-Turkey FTA

At the same time, he said, Turkish businesses should reciprocate by increasing their investments and trade ties with Malaysia.

"The Prime Minister (Turkish Prime Minister Recep Tayyip Erdogan) and I are both strongly committed to bilateral partnership, and there is no clearer example of this commitment than the Malaysia-Turkey Free Trade Agreement (FTA), which we will witness later today," he said in his keynote address at the Turkey-Malaysia business luncheon hosted by The Union of Chambers and Commodity Exchanges of Turkey here.

Also present were Turkish Deputy Prime Minister, Ali Babacan, and Economy Minister Nihat Zeybekci.

Najib said he felt positive towards the two-way trade, adding that based on the current investment trend, Malaysia and Turkey were targeted to increase trade volume to US$5 billion in five years' time.

"In 2013, Malaysia's total trade with Turkey was over US$1 billion.

"Bilateral trade will increase significantly with the implementation of the Malaysia-Turkey FTA," he said.

The FTA would also strengthen economic and technical cooperation in areas such as small and medium enterprises, services, agriculture and food, healthcare, energy, e-commerce, research and development and the car sector, he said.

"I urge the business communities of both countries to take advantage of this agreement (FTA). Through this agreement we will meet the challenge set by Erdogan for our bilateral trade to reach US$5 billion," he said.

Najib, who is on a two-day working visit to the Turkey, said the Asean FTA and the Asean FTAs with Australia, China, India, Japan, South Korea and New Zealand meant that doing business with Malaysia was not just about a market of 29 million, but a combined market of three billion.

By embracing a pan-Asian strategy, Turkish businesses could leverage on Malaysia's strategic location and tap opportunities across Asia, he said.

Najib said Turkey and Malaysia also have much in common.

"Firstly, we both have the advantage of geography -- Turkey lies between Asia and Europe, while Malaysia sits between China and India, and at the heart of Asean;

"Secondly, both of us are trading nations, straddling trade routes stretching back to the Ottomans and the Malay sultanates; and,

"Thirdly, we are both modern, progressive Muslim countries, which see eye to eye on a range of important international issues," he said.

He said both nations needed to expand bilateral investments, which were currently somewhat lopsided.

"To date Turkish investments in Malaysia amount to US$126.1 million, whereas Malaysia's in Turkey are US$1 billion.

"Thus far, Turkish investments in Malaysia have mainly concentrated in the defence industry, supplying equipment to the Malaysian armed forces.

"But I am heartened that Turkish interests in Malaysia are growing. Malaysia is pleased to host Turkish manufacturing companies, notably Eyvap Sabun. Eyvap's initial investment in Malaysia of US$85 million has helped create 190 new jobs.

"Eyvap is also working with Felda Global Ventures to set up one of the largest oleo-chemical plants in Malaysia. We encourage more Turkish companies to locate in Malaysia to expand their businesses in Asia-Pacific.

"There are many opportunities for Turkish companies, for example, in the halal sector and the economic corridors in Malaysia," he said.

Najib said over the past few years, Malaysia has been working hard to enhance investments between the two countries.

Turkey's economic potentials had not escaped Malaysia's attention, he said.

He said Khazanah Nasional Bhd has significantly increased its presence in Turkey, investing some US$1 billion in healthcare, insurance and infrastructure sectors.

Karpal Singh:Remembering The Tiger Of Jelutong

Social networking sites were abuzz with tributes and messages of condolences and grief for DAP stalwart and prominent lawyer Karpal Singh, who was killed in a road accident Thursday morning.
The 74-year-old died on the spot, as did his personal assistant C. Michael. His son Ramkarpal and the driver sustained light injuries. His Indonesian maid, however, is critically injured.
On Twitter, politicians from both sides of the divide expressed their shock and sadness over the incident.

Prime Minister Najib Razak tweeted that he had received the news  after landing in Turkey.
“I have just landed at Ankara when I heard the news that YB Karpal Singh died in a road accident. My condolences to the family,” he posted.
Opposition leader Anwar Ibrahim said: “We’ve lost a colleague; an indefatigable fighter for justice; d legendary Karpal Singh! Our sincere condolences to d family. RIP.”
Karpal had represented the PKR de-facto leader in his sodomy trials.

Human rights advocate and lawyer Ambiga Sreenevasan said the news was “heartbreaking” and praised “towering” Karpal as “a man of principle, courage and a true patriot.”
Some responses however were downright distasteful.
Zulkifli Noordin who is the vice-president of extremist NGO Perkasa, tweeted in Bahasa Malaysia: “As the PAS-led Kelantan state government struggles to implement hudud with Umno’s help, Allah has killed off Karpal, who was the major opponent of its implementation!”
Meanwhile controversial blogger Papagomo also celebrated the Bukit Gelugor MP’s demise, declaring that he was now going to “step over Karpal’s dead body”. He also attached an extremely distressing and graphic photograph of a bleeding Karpal.

Papagomo was referring to a controversial remark made by Karpal in 1990. Karpal had uttered “Islamic state over my dead body”. In 1999, he withdrew the statement and made a public apology.
Zulkifli and Papagomo were however in the minority; most netizens, many of them legal practitioners and members of the press, remember Karpal “the gentleman politician” with fondness.
“R.I.P Karpal singh/C.selvam,” photographer Keow Wee Loong tweeted. “Let’s pray for Ramkarpal.”

Keow Wee Loong Picture : Karpal Singh

 source

Should PLKN be discontinued?

PLKN

 INCE its inception in 2004, the National Service (NS) programme have been under scrutiny from all sides as it has been plagued with various problems, including casualties among the trainees.

At its 10th anniversary at the end of last year, there were a number of suggestions made to Putrajaya to suspend and review the programme, on the grounds that it was a waste of taxpayers’ money and had failed in achieving its objective of national integration.

Between 2004 and 2007, the programme cost a whopping RM2.37 billion, and for 2012, the Defence Ministry, under which the NS programme is conducted, was given an allocation of RM748 million.

This amount is about the same as the budget for some ministries. As a result, questions have been asked about how the money is spent. 

According to the NS 2012 annual report, of this RM748 million, about 12 per cent (RM92 million) was allocated for management and about 87 per cent (RM656 million) were for training activities. 

These training activities come under four core modules (character building, nationhood, community service and physical) and fourteen sub-modules, which support the collective aim of achieving five objectives.

As a primary objective of the programme is to foster national unity and integration, it is critical to understand whether the programme has truly achieved this objective. 

A need for thorough evaluation

The Chairman of Yayasan 1Malaysia, Dr Chandra Muzaffar, believes that since the programme has reached its 10th year, it is most appropriate to conduct a thorough evaluation of the programme to see whether it has helped to enhance national integration.

He has suggested this to the government but so far has yet to see an in-depth study being done.

“Unfortunately, there has been no such study. I don’t think there has been any attempt to study the impact of the National Service programme in depth. 

“There should have been such a study before the decision was made to continue with the programme. 

“I think the government decided that they will continue with the programme in spite of some calls from people to evaluate the programme thoroughly before continuing,” he said.

In his view, it was doubtful whether the programme had succeeded in bringing young people closer together, mainly because it is a short-term programme of three months. 

He believed that issues relating to national integration are not dealt with in-depth during the classes that the trainees attend. After they finish, they would return to their respective localities, without experiencing a strong impact from the training.

If the objective of national integration is not being met, Chandra opined that it would be preferable to channel the allocation from the NS programmes to other approaches that had proven to work at the primary school level. 

“I don’t think this (national integration) is happening. Since this is an expensive programme, I would rather that they do the study.

“If they find that it does not really meet our objectives as far as national integration is concerned, I hope they will do away with the programme and maybe channel the money to something else,” he said.

Chandra also believed that if the real purpose of the NS was to promote national integration, then it was better if it were put under either the Youth Ministry or Department of National Unity with the Prime Minister’s Office instead of the Defence Ministry. 

Too many sub-modules, too little national integration

As for the situation on the ground in the training camps, a trainer at a NS camp in Gopeng tells fz.com that in the NS camps, there are so many sub-modules being implemented that it causes disarray.

He said that with so many things being fitted into the programme, trainees are left with limited time to actually understand the meaning of national integration.

“Unfortunately, nowadays there are so many modules and sub-modules being implemented that it causes disarray within the modules. An example is the Lahad Datu case. After the incident, the minister asked that a sub-module called ‘Malaysia Berdaulat’ (Sovereign Malaysia) be included. 

“It is bad enough that there is not enough time in those three months. Even with the case of the recent missing aircraft (MH370), there has been talk of adding more modules that will enhance the trainees’ skills.

“Everything is being fitted into NS, which is now looking like a tofu factory,” he complained. 

The situation in the camps is that trainees take time to truly mingle with people of different backgrounds, as initially they often tend to stick to their own cliques.

This process of learning to integrate with people from various backgrounds takes up to three or four weeks, the trainer notes.

“For me, NS is a medium that allows national integration to happen. Sometimes, in our schools, even with the various races mixing, the integration is not there. 

“The students tend to stick with others of the same race during break time and when they are on their own. In the NS camp, it is almost like that too, when the training activities do not stress on interaction. There is some, but there is not enough time to emphasise integration with so many modules and limited time. 

“It happens if the trainers themselves prioritise it, but sometimes to do that is not easy,” he said.

Therefore, he wholeheartedly agrees with calls to evaluate the programme because he considers the current situation as one of disarray.

To continue with the current programme, the trainer said, would be to do a haphazard job as the trainees will only gain new friends and a little bit of experience, but never achieve the meaning of true national identity. 

He also grumbles about the money not being well spent and being used for ‘other’ purposes. In the end, he said, the trainees must get the best out of the programme. 

“My main concern is the input for the trainees: what they will gain once they finish the training,” he said.

source

AirAsia Group will move into KLIA2 by 9 May 2014

Air Asia will move to KLIA 2

KUALA LUMPUR: AirAsia Group says it will move to KLIA2 by May 9 although there are still a few outstanding commercial issues.

“We will be notifying all of our guests accordingly to ensure a smooth transition from the current LCC Terminal to KLIA2,” according to the joint statement issued by AirAsia executive chairman Datuk Kamarudin Meranun and AirAsia X Bhd chairman Tan Sri Rafidah Aziz on Tuesday.

They said the group expressed its appreciation to Prime Minister Datuk Seri Najib Razak and the government for the decision to enlist the expertise of the International Civil Aviation Organization (ICAO) to further evaluate KLIA2 and to determine the long term safety of the new airport.

“This decision reflects the priority that the government is giving to the issue of safety, and assuring the public that KLIA2 is safe. We are very grateful for this priority that the government has placed on this issue.

“Although there are still a few outstanding commercial issues, this should not hold back our operations at KLIA2 as planned. As such, AirAsia Group will move into KLIA2 by May 9, 2014,” they said in the statement.

Kamarudin and Rafidah said AirAsia and AirAsia X were looking forward to operate from KLIA2, as well as to the next stage of our growth and development through KLIA2.

They said ongoing discussions with relevant authorities were in progress.

“However, should the negotiations not be completed or concluded expeditiously, we hope the Government will be able to provide necessary mediation, in order to enable MAHB (Malaysia Airports Holdings Bhd) to get its dues as the airport operator; and at the same time, enabling the AirAsia Group to efficiently operate based on our proven low-cost carrier business model through reasonable charges and levies,” they said in the statement.

source

Turkey says Twitter agrees to close some accounts, no tax deal yet

ISTANBUL (Reuters) - Twitter (TWTR.N) will close some accounts in Turkey but will not for now set up an office there as the government wants, a senior Turkish official said late on Monday after talks over a dispute which saw the government ban the site for two weeks.

Prime Minister Tayyip Erdogan's government blocked Twitter and YouTube (GOOGL.O) in March, drawing international condemnation, after audio recordings, purportedly showing corruption in his inner circle, were leaked on their sites.

The Twitter block was lifted 11 days ago after the constitutional court ruled that it breached freedom of expression, a decision Erdogan has since said was wrong and should be overturned. YouTube remains blocked in Turkey.

Some accounts about which Turkey has complained will be closed and a more formal mechanism established under which Twitter will consider Turkish court rulings on other accounts, the official at the prime minister's office said.

But there was no immediate deal to open a Twitter office in Turkey or for it to pay Turkish tax, two of Ankara's key requests, in the first direct talks since the ban.

"The two sides understood each other fully after the presentations, and a decision was made to establish a system for cooperation in the future," the official said.

"Some accounts will be closed. At this stage Twitter will not immediately establish a company but the necessary communication will be established via lawyers in Istanbul."

There was no immediate comment from Twitter.

The Twitter delegation, led by its head of global public policy Colin Crowell, held talks on Monday with officials from the prime minister's office, the communications ministry and telecoms authorities.

The Turkish official said Twitter had implemented three important court rulings and said it would enact several other decisions within a week, while it considered the other issues.

"Twitter is not categorically against opening an office in Turkey and expressed this clearly. It will now conduct work and it will be determined whether Twitter will pay tax by the time it forms a company. Twitter said that if it needs to pay tax it will fulfil this responsibility," he said.

Finance Minister Mehmet Simsek told a news conference on Tuesday that all social media companies operating in Turkey must open representative offices in the country.
The government estimates Twitter generates $35 million a year in advertising revenue in Turkey, none of it taxed locally.
Access to the service was blocked on March 21 in the run-up to local elections to stem a stream of leaked wiretapped recordings. Erdogan said he would "root out" the network.
Tech-savvy Turks quickly found workarounds, and the company itself published a tweet to Turkish users instructing them on how to continue tweeting via SMS text message.

Turkey has said it wants the removal of tweets it considers harm national security, the privacy of individuals and personal rights, and wants Twitter to hand over the IP addresses of those accounts which it views as a threat.

source

World stocks mostly down on Ukraine, China jitters

World stocks mostly down as Ukraine tensions bubble, doubts surface over China growth

TOKYO (AP) -- World stock markets were mostly lower Tuesday as Ukraine tensions continued to bubble and jitters about China's economy resurfaced.

Hong Kong's Hang Seng was down 1.6 percent at 22,671.26 as a drop in China's money supply unnerved investors ahead of first quarter economic growth figures due Wednesday. China's Shanghai Composite Index shed 1.4 percent to 2,101.60.

China's leaders are targeting growth of 7.5 percent this year for the world's second-biggest economy. But exports and imports have been weak in the first quarter, suggesting the economy is slowing and raising the risk of job's losses. China's growth of 7.7 percent last year tied 2012 for the slowest since 1999.

In early European trading, France's CAC 40 was down 0.3 percent at 4,371.80 and Germany's DAX fell 0.7 percent to 9,275.32. Britain's FTSE 100 shed 0.2 percent to 6,568.48.

Futures augured a down session on Wall Street. Dow Jones and S&P 500 futures were both down 0.1 percent.

Global stock markets suffered last week over concerns that technology stocks are overvalued and nervousness about the crisis in the Ukraine.
In the latest Ukraine development, two pro-Russian politicians have been attacked by pro-Ukrainian activists in the capital Kiev as tensions grow over unrest in eastern parts of Ukraine, where pro-Russian gunmen have seized government buildings in nearly 10 cities.
Ukrainian and Western officials have accused Moscow of instigating a pro-Russian insurgency in eastern Ukraine. That raised the prospect of more sanctions against Russia, possibly affecting the valuable energy trade.

In Asia, South Korea's Kospi fell 0.2 percent to 1,992.27 while Japan's Nikkei 225 gained 0.6 percent to close at 13,996.81. The dollar holding close to 102 yen levels also helped underpin Tokyo share prices. A weak yen is a plus for many Japanese companies because they rely on exports.

Stock markets in Southeast Asia were mostly higher and Australia's S&P/ASX 200 gained 0.6 percent to 5,388.20.
In addition to China's GDP figures, analysts said players were cautious ahead of key data and news in coming days including U.S. consumer prices and a speech by the Federal Reserve Chair Janet Yellen.
"No one is likely to get too carried away given the spate of potential game changing data and announcements pending in the next 48 hours," William Leys, sales trader at CMC Markets in Sydney said in a report.
The dollar was trading at 101.88 yen, inching up from 101.83 late Monday. The euro fell to $1.3799 from $1.3823.

Benchmark U.S. crude for May delivery was down 90 cents at $103.15 a barrel in electronic trading on the New York Mercantile Exchange. The contract rose 31 cents Monday to settle at $104.05.

source

Developers drawn to ‘less prime’ locations

WITH the supply of land-bank getting scarce in the Klang Valley, it's not surprising to see developers expanding their presence in “not-so-prime” locations.
This was evidenced as recently as last week, when SP Setia announced it was acquiring a RM381.2mil plot of land in Rinching, located mid-way between Semenyih and Bangi old town, to be followed soon after by Mah Sing Group Bhd's purchase in Rawang for RM92mil.
“Granted, it is often developers with prime land-bank in Kuala Lumpur and Penang that stand to benefit more from rising property prices,” says an industry observer.
“But property conglomerates such as SP Setia and Mah Sing are well-known brand names with a proven track record. They can probably attract buyers and chalk up sales even if they bought land in Timbuktu,” he adds in jest.
A huge boost to the land acquired by SP Setia and Mah Sing is that they are both well connected. Malaysia Equity Research in a report pointed out that the former's Rinching land is located within 15 minutes from the proposed Bandar Kajang MRT station. “(It is) near the terminal station for the approved MRT Blue Line (Sungai Buloh-Kajang) and 25km south of KLCC (which is 40 minutes via existing highways).”
The report also says SP Setia is planning to replicate the success of its twin flagship Setia Alam and Setia Eco-Park development, including investing in infrastructure to improve connectivity.
An analyst at a local bank-backed brokerage says investing in infrastructure is “part of the package” when developing land that is considered “less prime”.
Similarly, analysts are also positive about the connectivity for Mah Sing's Rawang land. The developer has proposed to develop a mixed township, M Residence@Rawang, that includes beginner homes on 90.3ha.
“M Residence@Rawang is directly accessible from the North-South Highway, being only 10km from the exit point at the Rawang toll via Jalan Batu Arang. The Kuala Lumpur-Kuala Selangor Expressway (formerly known as Latar Highway) was opened in June,” says UOB KayHian in its research report.
“The Rawang KTM Station is also a short drive away, within 12km from the land, according to the management,” it adds.
According to Mah Sing, the M Residence@Rawang township has an estimated gross development value of about RM948mil and preliminary plans include two-storey link homes, townhouses, semi-detached homes, three-storey shops and various facilities and amenities.
“M Residence@Rawang is expected be developed over three to four years and the group is also actively scouting for more well-located mega township land that fit the group's business model of quick turnaround and allow for value enhancement,” the company says.
The first launch is slated for the first half of next year for the mass market, in line with the Government's call for private developers to build more affordable housing.
The move to provide affordable homes has been praised by analysts and industry observers and considered a good way to attract buyers in less prime land within the Klang Valley.
“With absorbitant property prices today, especially in the Klang Valley, it is becoming increasingly difficult for first-time home buyers to even place a downpayment for a house,” says one industry observer.
On the proposed Mah Sing development, UOB KayHian says: “The price tag for a two-storey link house (built-up of about 2,000 sq ft) is indicatively priced from RM390,000 onwards, or RM195 per sq ft. Ground checks indicate that selling prices for a two-storey link house in nearby developments such as The Emerald and Bandar Country Homes range from RM150 per sq ft to RM250 per sq ft.
“We believe the township concept should be able to attract buyers given the decent selling prices.”
Macquarie Research in its recent report says Mah Sing's project could see good demand with the significant rise in property prices in Kuala Lumpur and Klang Valley in the past year.
“As a comparison, Kuala Lumpur Kepong Bhd (KLK) launched its link houses in June this year in Bandar Seri Coalfields with prices ranging from RM328,000 to RM368,000. We understand from KLK that the sales for the launch were very strong with over 90% sales achieved, primarily due to upgrader demand.
“Mah Sing's new land is further up north of KLK's project, but has good connectivity with the KL-Kuala Selangor Expressway and is 20km from Rawang city centre.”

Govt studies splitting Tenaga Nasional into three units

TNB is going to split into three..


KUALA LUMPUR: The Government is looking into the proposal to split Tenaga Nasional Bhd (TNB) into the three units of power distribution, generation and transmission.
Speaking on the sidelines of Power-GEN Asia 2011/Renewable Energy World Asia 2011 conference, Energy, Green Technology and Water Ministry secretary-general Datuk Loo Took Gee confirmed that the matter was “under study”. She declined to elaborate.
“I think we need to be quiet and do our work well to present it to the market when we're ready,” Loo said when asked to comment on the matter.

Speculation is rife about a proposal to split up TNB in order to re-organise the dominant electricity supplier and to help it fix its financial woes.
TNB recently said it faced an additional RM3bil in costs from having to look for alternative sources of fuel for power generation due to a shortage of gas supply.
It has been reported that newly-established special purpose vehicle, MyPower Corp, will oversee TNB's “break-up” as part of the Government's effort to reform the country's power sector.
MyPower, which is currently under Loo's ministry, is headed by Datuk Abdul Razak Majid, a veteran in the power sector who was formerly TNB senior vice-president of corporate affairs.
The special unit's task involves restructuring the legal and regulatory framework of the industry to make it more equitable, competitive, liberalised and provide a level playing field. “MyPower will conduct studies based on nine aspects including power purchase agreements, governance issues, gas supply and tariff issues,” Loo said.
Asked if it was studying the deregulation of the power industry, she said: “Yes... this is also part of MyPower's task.”
Loo also said MyPower was reviewing the power purchase agreements with independent power producers.
In May, Energy, Green Technology and Water Minister Datuk Seri Peter Chin said the ministry was being assisted by MyPower and the Energy Commission to implement several changes to the country's electricity supply sector as identified by Khazanah Nasional Bhd on the need for reforms in the energy sector. “These changes are needed for a vibrant energy sector,” he had said.

Separate units: Speculation is rife about a proposal to split TNB in order to reorganise the dominant electricity supplier and to help it fix its financial woes.

Loo also said TNB was looking to have a clearer explanation of the respective costs they incur from the generation, distribution and transmission of electricity.
“We have to explain to the public how much of the tariff increase will come from generation, distribution and transmission,” she said.
Meanwhile, TNB chief operating officer and executive director Datuk Azman Mohd, speaking at the conference, said the electricity supply industry in Malaysia and generally in Asia faced multi-dimensional challenges.

Azman: ‘Consumer expectations are becoming increasingly sophisticated and unpredictable.’

 

He said these challenges included depleting indigenous energy resources, high demand growth, major infrastructure investment requirements, escalating and volatile fuel prices, public demand on the issues of environment.
“This is all happening as consumer expectations are becoming increasingly sophisticated and unpredictable. This calls for prudent risk management and planning to be put in place, which involves finding a balance between project development and its associated risks, and exploring alternative supply options and technologies,” Azman said.
He said TNB had developed biomass, solar power and solar-wind hybrid systems to help spur the renewable energy development and research.

Malaysia Bank is losing nearly RM 10 bil in market value.

The Banker hit  at their life support when they losing nearly RM 10 bil in market capital.
..................

Finance stocks hardest hit

PETALING JAYA: Finance stocks lead declines on Bursa Malaysia with the country's largest bank, Malayan Banking Bhd (Maybank) losing RM3.06bil of its market capitalisation of RM62.81bil on Thursday, as it succumbed to the bearish sentiments dominating markets globally.
The stock touched an intra-day low of RM7.95 and ended yesterday at RM7.99 with 20.953 million shares changing hands.
Global capital markets have plunged technically into bear territory, with the MSCI Index losing some 20% since peaking on May 2.
The second largest banking group, CIMB Bank, added three sen to RM6.74; however, it has shed some 17% of its share price since late last month.
Both banks took a nose-dive, touching a 52-week low after Credit Suisse Group AG said they were most vulnerable to de-rating risks, while CIMB regained ground after falling to an intra-day low of RM6.60.
“Our analysis suggests that CIMB and Maybank are most at risk, while Public Bank and Alliance Financial Group offer better downside protection.
“We continue to favour those banks that trade on comparatively low valuations, and are relatively under-owned by foreigners and could be re-rated on developments in mergers and acquisitions,” it said in a report.
Since the global financial crisis in 2008, foreign investors have increased their average holdings in Malaysian banks from 21.4% to 24.3%, according to Credit Suisse. The most widely held Malaysian bank among foreigners is CIMB with a 36.4% holding and accounting for 13.7% of total holdings of foreigners in Malaysia.
Credit Suisse says historical earnings performance suggests that the earnings downside risk is limited to less than 15%, adding that earnings of Maybank and CIMB are more vulnerable, while earnings of RHB Capital, Hong Leong Bank and Public Bank are quite resilient.
Public Bank fell 16 sen to RM12.44, Hong Leong Financial Group lost 88 sen to RM10.06 while Hong Leong Bank shed 13 sen to RM9.85. RHB Capital declined 18 sen to RM7.72 and Alliance Financial Group edged down one sen to RM3.15.
Recently, OSK Research downgraded the local banking sector to “neutral” from “overweight”, citing lack of catalysts amid strong external headwinds.
“Although the banks under our coverage continued to report earnings which were largely in line with our expectations, this was largely driven by lower provisions and an unsustainable surge in non-interest income trading gains for certain banks.
“The quality of earnings, as reflected in the growth momentum of the sector's pre-provision operating profit, has been on a decline since the first quarter of 2011, with the first-half annualised pre-provision operating profit growing at just 1.7% compared with 12.1% in 2010 and 14.9% in 2009,” it said.
OSK also said it might be time for a reversal of fortunes, as banks were a proxy to the economy and had performed exceptionally well since the economy started to recover in early 2009.
The Finance index had outperformed the broader FBM KLCI from April 2009 to early August 2011, notching nearly 27 consecutive months of out-performance and 32 months of uptrend.
However, Affin Investment Bank is maintaining the banking sector as “overweight,” saying that its health remains sound, as reflected by sufficient capital adequacy ratios and healthy loans growth even through 2008-2009. This was aided by accommodative monetary policy.
“Drawing from the share price behaviour in the 2008 financial crisis, there are still more downside risks, ranging from 20% to 54% for Malaysian banking stocks, although fundamentals are expected to be largely intact.
“No doubt, we acknowledge the reality that the sell-down in equities has more do to with fear and jitters, and in fact, could be uncontrollable when irrationality sets in,” it said.
OSK says Malaysian banks are largely domestic-driven and to a certain extent, regional-driven. Given the resilient domestic economy, the earnings for the banking sector are unlikely to be significantly dampened by the external environment.
Meanwhile, Aberdeen Asset Management Sdn Bhd managing director Gerald Ambrose expressed shock at how markets reacted to developments recently.
He said, there didn't seem to be an answer to the problems in Europe as the debt crisis had a contagion effect on the countries with Italy being the recent victim.
According to him, when the West is down, Asia will be impacted since the region is still very much exposed to the West via exports.

Source: The Star

Do Dato Seri Najib ETP plan can help preparad Malaysia to face second world recession?

I just cant say much, but i believe goverment got plan to face second world recession.
...........

Malaysia Prepared To Face Global Economic Downturn

GEORGE TOWN, Sept 24 (Bernama) -- Malaysia has made several preparations to face the world economic downturn following the European debt crisis and the falling US economy.

Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop said the country was prepared to face the long term effects having put in place several various strategies.

"We have taken several strategies and plans to ensure that Malaysia's economy can continue to expand although the world is facing a downturn."

Malaysia would not be affected if the world's economic recession is for a short period but if the downturn continues, there is possibility that Malaysia would be affected as well, he nevertheless told reporters after attending a Hari Raya gathering organised by the Bumiputera Economic Planning Unit here Saturday.

Nor Mohamed who is responsible for the Economic Planning Unit, however did not disclose the strategies and plans taken by the government to face a global economic recession.

The minister, who is also Member Parliament for Tasek Gelugor, said he was confident that the current economic downturn would not jeopordise the country's economy in the short term.

"Malaysia should also be able to still defend its economic position being more reliant on Asian economies such as China and India."

He also said Malaysia's domestic demand was expected to lessen the effects of the ongoing uncertainties in the global economy.


Source: Bernama

No Competition Said Malaysian Competition Commission (MyCC)

There will be no evil competition erm a debate will see either this MyCC can handle such problem.
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Malaysia Competition Commission chairman, Tan Sri Siti Norma Yaakob, answers...
1. What is the first priority of the Malaysian Competition Commission (MyCC) and for you as chairman?
To ensure that I have a full functioning Commission, the right kind of people with the right kind of attitude to run it as well as to put in place the necessary standard operating procedures to ensure transparency, accountability and intergrity.
2. Government-linked companies (GLCs) hold a lot of market power. Would they tend to contravene the spirit of competition?
The law does not exclude GLCs. Having market power by itself is not an offence, but if these GLCs do abuse their position because they have market power then MyCC can begin investigation or even the public can lodge a complaint against them. The country is moving towards an era of a more competitive environment. Competition culture must be embraced by all and sundry including the Government.
3. Would the commission look at the deal between Malaysia Airlines and AirAsia as arguments have been made that the deal breeds anti-competition?
Alliance is neither a joint venture nor a merger, but its effects on competition could be the same as those of any agreement between two parties competing in the same market. There will be positive and negative effects and we will follow the developments closely to see if any anti-competitive activities or agreements arise from it the post alliance effects.
4. Is there a model the MyCC will follow?
Much of the law is based on the EU law, and some on the UK model. We will study the decisions that have been made on several cases in these two jurisdictions, but of course, every jurisdiction differs geographically and economically and any decision taken will have to consider these two important elements.
5. What is your and the commission's strategies in ensuring fair competition is practised in the marketplace?
We will continue with advocacy programmes to ensure businesses are well informed of the law. And probably our first case would have to demonstrate the economic harm that is brought about when there is an anti-competitive practice in the market.
6. Is the anti-competition spirit in Malaysia entrenched and how difficult will it be in dismantling that?
I can say that the way businesses have been carried out in Malaysia clearly indicates high degrees of anti-competitive practices. Price fixing and market sharing have been a way of life in the business arena not only in Malaysia but all around the world. It is very much part and parcel of the business culture. I must say it is a real challenge, and anti-competitive practices must be weeded out so that Malaysian consumers are provided with good quality products and services at the right prices.
7. Does the MyCC have the mandate, especially in terms of political will, to ensure competition is preserved?
It has taken almost 19 years to get the support and political will to get the law passed in Parliament. That speaks for itself.
8. Is it fair to have exemptions to the Competition Act especially for industries that have their own regulatory authority?
Every jurisdiction that has the law has provisions for exemptions. To be realistic there are areas where industry specific treatment has to be given. Industries that have their own regulatory authority have been excluded simply because they have their own set of regulations on competition. But that does not mean all the activities under the sector are excluded. For example in the telecommunication sector, only the activities which are licenced under the Multimedia and Communications Act are excluded. All other activities are subject to the Competition Act 2010.
9. How will the MyCC enforce the law when it comes to deals that breed less competition and what are the limits of the commission?
All activities that are anti-competitive in nature are subject to the law. In terms of administrative priority, we will focus on agreements and conduct that are likely to or potentially have great impact on the welfare of consumers.
10. Will the MyCC review existing agreements that are deemed anti-competitive or will it act when a complaint is made?
It will only act when a complaint is made or when MyCC, as a watchdog, stumbles upon an anti-competitive behaviour.

Source: The Star

Stocks to watch: SP Setia, Maybank, BRDB, Tenaga

SP, Maybank and properties sector are the stock need to watch when investing in stock market.
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KUALA LUMPUR: After the battering for the local stock market in recent weeks, investors will be bracing for some selling pressure in the week ahead, starting Monday, Sept 26 especially after the FBM KLCI fell to its lowest since mid-August last year.
Concerns for the investors include whether the selling, especially from foreign funds, has eased, especially for fundamentally strong companies. More than 100 stocks closed at their worst for 52 weeks last Friday.
Last Friday, the KLCI lost 1.58% or 21.87 points to 1,365.94.  Year-to-date, the KLCI is down 10.07%.  It is the fourth worst performing market after the Philippines, Thailand and Jakarta which fell 7.50% YTD, 7.11% and 7.48% respectively.
The bigger regional markets have slumped between 15% for Singapore and 23% for Hong Kong’s Hang Seng Index.
Affin Investment Bank’s head of retail research Dr Nazri Khan said he believed the KLCI could see more negative headwinds in the week ahead  on growing fears over the global economy following negative comments from the US Federal Reserve and more evidence of fiscal weakness across Europe.
He pointed out the bad inter-market technical picture with traditionally bearish October looming ahead.
“We must caution investors that the FTSE All-World has already declined by 23.2% since its May 2011 peak (14 months low), putting the global stocks in the officially defined bear market,” he said.
Nazri said with the FBM KLCI below its 1,400 strong psychological support (to its low since May 2010) and FTSE All World is now firmly in a bear market with China Shanghai Composite Index, NYSE Composite Index and Germany Dax Index scoring a fresh 52-week low, he believes the traditional June-August summer rebound have ended.
“The high probable forecast next few weeks is clearly down with September and October living up to its reputation as one of the market's most bearish months of the year,” he said.
Nazri said the clearest sign that global economy is loosing momentum can be seen from Hong Kong and Singapore exchanges, which are considered most opened and most sensitive to global economic growth.
Both Hang Seng Index and Strait Times Index have tumbled 28% and 20% respectively (to their lowest level since July 2009 and June 2010).
His concerns were more rating downgrades expected next week following Moody's Investors Service’ downgrade of the credit ratings of US and French banks.
"On the local front however, we are expecting some positive surprise in the Budget 2012 to cushion the weaker external economies. Some anticipated measures such as fiscal incentives to attract foreign talent, liberalisation in healthcare and education and fiscal support for GLC on international collaboration are likely budget elements to boost the local market,” he said.
Overall, Nazri said despite the positive news on the home front, he retained his cautious view in the near term.  He advised conservative clients to stay defensive with deep-value-high-yield-blue-chips while aggressive clients to short index futures.
Meanwhile, stocks to watch in the week ahead are SP SETIA BHD [], MALAYAN BANKING BHD [], BANDAR RAYA DEVELOPMENTS BHD [] (BRDB) and TENAGA NASIONAL BHD []. Oil and gas companies would also provide buying interest, especially fundamentally strong counters which were affected by foreign selling.
However, investors should take a long-term view of the market, based on Malaysia’s stronger economic fundamentals and strong banking system while the Budget 2012 proposals could provide temporary respite.
SP Setia is expanding its landbank in Australia with an investment of RM81 million for its second property project in Melbourne with an estimated gross development value of RM772 million (A$250 million).
Its unit SP Setia International Ltd had signed a contract of sale with Portbridge Pty Ltd to acquire the 2.23 acres of freehold land in the South Yarra suburb in Melbourne
Investors’ interest could also focus on Maybank, a heavyweight in the 30-stock index, which fell 41 sen to RM7.99 on concerns that it could face a derating risk. Its decline, which saw RM3.06 billion wiped out from its market capitalisation, dragged the KLCI down by 7.10 points.
Credit Suisse Asia Pacific/Malaysia research, had in a recent report on Malaysia, said there appeared to be growing investor concerns about a possible repeat of the 2008-2009 global financial crisis (GFC).
It said while a repeat of the 2008-2009 GFC was not our base case, it assessed the vulnerability of the banks if it was to see a US double dip and debt crisis in Europe.
To gauge the downside risk for the banks, three key measures which it focused on were valuation comparison with GFC lows; foreign shareholding levels compared to GFC lows and earnings resilience during 2008–09 GFC period.
Credit Suisse research said that by comparing the current valuations to the 2008–09 global financial crisis (GFC) lows, within its own coverage, Maybank and CIMB appeared most vulnerable to a de-rating risk. Stocks with the least downside risk are Alliance (only stock trading below GFC P/E) and Public Bank (P/E at only 5% premium to GFC level and lowest P/B premium to GFC level).
“Moreover, we believe that stock prices of potential acquisition targets such as Alliance, RHB and Public should be more resilient,” it said.
In terms of foreign ownership risk, it said CIMB was the most widely held banking stock among foreigners. Banks that have seen the largest increase in foreign ownership since the GFC are CIMB (+8.7 percentage points to 36.4%), RHB (+8.4 ppercentage points to 13.6%), Maybank (+2.7 percentage points to 13.5%) and Hong Leong Bank (+0.9 percentage points to 8.0%). On the other hand, foreigners have reduced holdings in Alliance Financial Group, AMMB and Public Bank since the GFC.
Meawhile, among the other two stocks to watch would be Bandar Raya Development Bhd and Tenaga Nasional Bhd.
News reports said BRDB had been asked to disclose the beneficial owner of a 23.6% block of shares in the property development company. The report said Bursa Malaysia had asked BRDB to disclose the owner of the stake, especially after BRDB’s plan to sell its assets to its major shareholder.
Tenaga could also see trading interest on concerns about the current gas supply shortage, high fuel costs and the weakening of the ringgit against the US dollar.
Stocks which would see their dividends going ex the week ahead are MISC BHD [] and Malaysian Marine Heavy Engineering Bhd (MMHE). MISC’s final 10 sen dividend tax exempt and MMHE’s final single tier dividend of five sen will go ex on Monday. NCB’s interim dividend of seven sen single tier will also go ex on Monday.

Source: The Edge

Telekom contender: U mobile eyes one million subscribers with 42 MBPS broadband

The monopoly of Telekom Steamyx Broadband seem will over soon but will this will give a good punch in internet service especially the high speed broadband but will the GLC feel the shock??
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KUALA LUMPUR, Sept 23 (Bernama) U Mobile Sdn Bhd expects to attract one million subscribers each year with its 42Mbps (megabits per second) broadband service, Malaysia's fastest mobile broadband.
Its chief executive officer, Dr Kaizad Heerjee, said the company's market share in Malaysia was quite low compared to other rivals.
"U Mobile is a young company and I am pleased to say we are on track to claim our position as a leader in the wireless data market," he said at the announcement here today of the offer of the 42 Mbps broadband services in Klang Valley, Seremban and Port Dickson.
Kaizad said U Mobile's partnership with ZTE Corp would see consistent upgrades from 42Mbps to 84Mbps and eventually 100Mbps in Malaysia.

U mobile staff showing off the 42Mbps USB modem at the event

 

"For the remainder of the year, U Mobile will continue to deliver affordable and quality service and remain committed to meet the sophisticated demands of today's technology-savvy consumers," he said.
Its head of mobile data commercial division, Kevin Henry said, the company would try to launch a new product or service every two weeks.
"We plan to bring this product to Sabah and Sarawak next year," he said.
He said the company would allow the customers to 'rent' the 42Mbps modem for as low as RM20 per month when they signed up at any U Mobile service centres or authorised dealers.
"For ultimate assurance of quality service, U Mobile will offer a seven-day money-back guarantee with absolutely no additional charges to ensure customer satisfaction," he said.

Source: Bernama

Inflation rise up to 3.3%: So what will Dato Seri Najib action?

The inflation is up at it peak which nearly 3.3% so will Najib do something to curb this phenomena? Let us wait for his budjet on 7 Oktober 2011 so will Najib budjet will give a look in inflation or indirectly the stock market.
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Latest figures in line with views that inflation had peaked in June
PETALING JAYA: The consumer price index (CPI) accelerated by 3.3% year-on-year in August, on higher prices for miscellaneous goods and services, recreation services and culture as well as housing, water, electricity, gas and other fuels.
According to the Statistics Department, the CPI for the first eight months of this year increased by 3.1% to 102.8 (compared with 99.7 in the same period last year).
When compared with July, the CPI in August increased by 0.2%.
Economists noted that this was in line with their view that inflation peaked at 3.5% year-on-year in June, before moderating slightly to 3.4% in July.
A Credit Suisse report estimated that inflation was flat in August on a seasonally adjusted basis.
“We expect year-on-year inflation to hover around 3.3% to 3.4% in the next few months before slowing to 3.2% by end-2011,” said Credit Suisse.
The report said inflation was likely to fall below 3% in the first half of next year, and could fall more rapidly than expected if the global growth outlook worsened.
Credit Suisse also noted that there could be a risk of a higher inflation rate due to the ringgit which has depreciated by over 5% against the US dollar since early September.
“It is too early to adjust our inflation forecasts at this stage. History suggests that it takes much bigger foreign exchange moves than we have seen so far to have a meaningful impact on Malaysian inflation,” said Credit Suisse.
However, Barclays Capital maintained its view that the ringgit would appreciate to RM2.90 in six months and RM2.84 in 12 months against the US dollar.
“We see several signs that elections may be brought forward and could be held well before the end of the year. We believe this would be a catalyst for the ringgit's strength,” Barclays Capital said in a note.
Barclays Capital also pointed out that risks to food prices were biased on the upside in the near term.
“Recent flooding in northern Malaysia, particularly in Perlis, is likely to weigh on rice and other food production, which could keep pressure on food prices in the near term,” it said.
Barclays Capital also pointed out that the contribution of non-food inflation remained sticky.
“The stickiness in non-food prices is largely due to persistent increases in recreation, health and miscellaneous services,” it said.
Bank Islam Malaysia Bhd chief economist Azrul Azwar said the CPI should continue to ease further until next year due to reduced pressure from food and fuel inflation.
“The balance of risks has tilted towards concerns about slower economic growth rather than uncontrolled inflation,” Azrul said.
He pointed out that there should be no movement in the overnight policy rate, which was presently at 3%, until the first half of next year.

Source: The Star

Regional hopes: China growth can Malaysia get the economic blessing ?

China growth seem give the region especially  Asia a strong fundamental economy however can this helping Malaysian stock market in term of stock market investing ??
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China growth prospect allows regional bourses to regain some of their lost ground
KUALA LUMPUR: Regional markets clawed back some of their lost ground as investors found signs of hope in economic indicators that signalled growth in China amidst economic uncertainties in Europe and the United States.
The local bourse's benchmark FTSE Bursa Malaysia KLCI rose 0.59% or 8.4 points to 1,419.04, led by gains in blue-chip stocks including Sime Darby Bhd, Genting Malaysia Bhd and CIMB Bank Bhd.
Gainers outpaced losers 350 to 289 while 287 counters were unchanged. A total of 709.05 million shares were traded with a turnover of RM1.15bil.
Sime Darby was the biggest contributor buoying the key barometer the counter surged 33 sen to RM8.24 with 9.47 million shares changing hands.

A man looking at a stock quotation board outside a brokerage in Tokyo. The Nikkei 225 index added 0.23% to 8 ,741.16 points yesterday. — Reuters

Investors continued to buy aggressively into the plantation giant with its current valuations deemed to be too compelling for analysts to resist.
Markets in Asia staged a rebound yesterday, with China's Shanghai A Index closing up 3.02%, or 81.17 points, to 2,512.96 on renewed optimism that growth prospects are still intact for China.
Singapore's Straits Times Index edged up 0.39% to 2791.79 points, Tokyo's Nikkei 225 added 0.23% to 8,741.16, Hong Kong's Hang Seng Index shed 1.0% to 18,824.17 and Seoul's Kospi Index gained 0.89% to 1,584.28.
Gains were limited as investors stayed on the sidelines ahead of the Federal Open Market Committee (FOMC) meeting that will set the tone for the rest of the year.
The two-day extraordinary meeting would be the most important event of the week as the Fed decides on the direction of the US monetary policy amid a staggering global economy that is slowly moving into stagnation.
Analysts believe that markets would weaken further if the Fed shows no signs of acting that will help spur the faltering US economy.
“The Fed is likely to step in to repair the economy. The question is the extent of the impact arising from the various financial tools at their disposal,” said a fund manager.
Expectations still abound that the Fed is likely to introduce a third round of quantitative easing to drive the economy forward.
“The FOMC is likely to decide on some kind of monetary easing,” SMBC Nikko's Hiroichi Nishi said in a Bloomberg report yesterday.
He said investors would limit their trading as they wanted to see how US stocks would react to the decision.
The prevailing uncertainty also saw spot gold rising to near US$1,810 per troy ounce while silver gained 64.5 US cents to US$40.43.
Meanwhile, the International Monetary Fund revised its world economic growth forecast to 4% for this year and next, down from its June forecasts of 4.3% for 2011 and 4.5% for 2012.
Its US growth projection for 2011 was also lowered to 1.5% from 2.5%.
As at press time, US futures were seen edging higher, indicating bullish sentiments ahead of announcements by the Fed.
While European markets saw a decline with authorities planning a review on Greece's economy, the euro was mixed against a basket of 10 Asian currencies, with the ringgit weakening against it.

Source: The Star

Stocks to watch:Formis, Kencana, Glomac, BToto

Formis and Kencana are the two champ need to watch in order to play stock market game.
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KUALA LUMPUR: Sentiment on Bursa Malaysia could weaken on Thursday, Sept 22, after US stocks suffered their worst drop in a month on Wednesday after the Federal Reserve said there were "significant downside risks" to the economy even as it took another stab at boosting growth.
Reuters reported the Fed, as expected, said it would buy more long-term Treasury securities in an effort to lower borrowing rates. But investors worry that the Fed's latest plan will have little effect on lending in an economy that appears to be stagnating, which the Fed also noted.
The Dow Jones industrial average dropped 283.82 points, or 2.49 percent, to 11,124.84. The Standard & Poor's 500 Index lost 35.33 points, or 2.94 percent, to 1,166.76. The Nasdaq Composite Index fell 52.05 points, or 2.01 percent, to 2,538.19.
Stocks to watch on Thursday are FORMIS RESOURCES BHD [], KENCANA PETROLEUM BHD [], SAPURACREST PETROLEUM BHD [], GLOMAC BHD [], BERJAYA SPORTS TOTO BHD [], AHMAD ZAKI RESOURCES BHD [] (AZRB) and TA ENTERPRISE BHD [].
Formis’s unit has secured a RM53.75 million contract from Fibrecomm Network (M) Sdn Bhd for the next generation dense wavelength division multiplexing systems.
Its unit, Formis Network Services Sdn Bhd would supply engineering services, operation and maintenance of the NGDWDM systems, spares and accessories for the third route from Padang Besar to Menara Ansar in Johor Baru.
Kencana’s earnings rose 53% to RM63.72 million in the fourth quarter ended July 31 from RM41.47 million a year ago due to higher progress achieved for contracts. The 4Q revenue increased at a stronger pace of 77.5% to RM493.72 million from RM278.18 million.
For the financial year ended July 31, its net profit rose 63.8% to RM223.11 million from RM136.16 million. Its revenue increased by 43.2% to RM1.56 billion from RM1.09 billion.
SapuraCrest’s earnings rose 46.9% to RM78.23 million in the second quarter ended July 31 from RM53.24 million a year. Revenue, however, fell 22.1% to RM699.39 million from RM898.11 million.
For the first half, net profit rose 44.8% to RM150.57 million from RM103.93 million but revenue declined 20.2% to RM1.25 billion from RM1.568 billion.
Glomac Bhd posted net profit of RM17.87 million in the first quarter ended July 31, 2011, which a 14.9% increase from the RM15.55 million a year ago, putting the property company on a firm footing for its current financial year.
Its revenue increased a marginal 1.2% to RM127.83 million from RM126.31 million from a year ago due to its a mix of recent and on-going project launches. Earnings per share were 6.10 sen compared with 5.32 sen.
Berjaya Toto’s earnings rose 44% to RM92.10 million in the first quarter ended July 31, 2011 from RM63.95 million a year ago, due to a lower prize payout.
Revenue was a marginal 1.2% increase to RM845.81 million from RM835.39 million. Earnings per sharea were 6.89 sen compared with 4.78 sen. It declared an interim dividend of 8.0 sen.
AZRB has secured a 25-year concession to build and manage the International Islamic University Malaysia (IIUM) teaching hospital in Kuantan, Pahang via a private finance initiative. The total CONSTRUCTION [] cost for teaching hospital was RM412.62 million
TA Enterprise’s earnings soared 151.3% to RM26.24 million in the second quarter ended July 31, 2011 from RM10.43 million a year ago, boosted by higher contribution from its property arm, TA Global Group. Its revenue rose 8.6% to RM156.00 million from RM143.56 million. Earnings per share were 1.53 sen compared with 0.61 sen.

Source: The Edge

Petronas Losing: Petronas Shares Down to earth as shares down on Eurozone crisis and declining oil prices

The Petronas Unit(PChems) is a good stock to play as recession resist counter. However when you are play stock market game the trend is so unpredictable and thar call stock market game.
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PETALING JAYA: Some Petroliam Nasional Bhd (Petronas)-linked stocks took a beating, as uncertainties over the eurozone crisis and declining oil prices prompted jittery investors to take profit and unwind some of their positions in markets across Asia.
Petronas Chemicals Bhd (PChem) saw RM2.16bil wiped off from its market capitalisation. The counter ended 27 sen lower at RM5.78, nearing a range it has not seen since early January this year. The stock reached an intra-day low of RM5.74.
In November, the largest petrochemical producer in South-East Asia raised RM12.8bil from the market in its initial public offering (IPO), with a price of RM5.20 for institutional investors.

Meanwhile, Petronas Dagangan Bhd (PetDag) shed 16 sen to close at RM17.04 yesterday, while Petronas Gas Bhd (PetGas) lost 32 sen to end at RM13.40.
“Stocks like these are weakening due to foreign funds selling and also because of lower oil prices,” said one head of research.
Crude oil traded near the lowest price in three weeks on concerns that demand for fuel will be weakened with the worsening European debt crisis.
But the sell-down on the Petronas-linked stocks has led some analysts to advise their clients to “buy on weakness”.
“It (the sell-down) doesn't reflect the fundamentals and potential of the company. With the sell-down on PChem, we are advising our clients to buy as it presents a good opportunity for investors to pick up this company's shares as it is a well-managed outfit. We are expecting the company to post good profits in the second half of 2011,” said an analyst with Maybank Investment Bank.
He believes the sell-down was due to foreign players paring down their stakes after the unfavourable developments seen in Europe.
To be noted is that these Petronas stocks have been top performers in the market. PetDag is still the top performing stock on the benchmark FTSE Bursa Malaysia KLCI, with a gain of 43.5% so far this year, while PetGas has gained 17.9% this year.
Meanwhile, Petronas' shipping arm MISC Bhd has also seen its share price trending down. Moody's Investors Service has downgraded MISC's rating from A3 to Baa1 with a negative outlook, on concerns of MISC's high level of debt-funded capex as well as the challenging nature of its operating environment. The announcement of the downgrade was made in the evening, after the stock market closed. MISC added 24 sen to RM6.88. However, it is still some 19% off the RM8.50 level it was trading at early this year.
Petronas' indirect subsidiary and offshore fabrication arm, Malaysia Marine Heavy Engineering Bhd (MHB), retreated from its high of RM8.67 recorded in July, to trade near the RM6 mark. MHB shed three sen to close at RM6.10.
In a recent Bloomberg report, CIMB Investment Bank Bhd research head Terence Wong said the worsening global economic turmoil might cause investors to keep unloading Malaysian equities.
He said if the bearish mood were to continue, there would be more selling.
Overseas funds sold RM3.8bil of Malaysian shares last month, the most since October 2009, after four consecutive months of inflows, according to data compiled by Bursa Malaysia.
The net foreign outflow from Malaysia in August accounted for 31% of the total from emerging markets in Asia excluding China, suggesting that the local bourse suffered the brunt of the selling,” said a foreign bank-backed research house analyst.
About RM6.7bil of foreign funds flowed into the Malaysian stock market from April to July.

Source: The Star

No more Firefly !! AirAsia is doing monopoly !!

The word monopoly is a true cruel in this market especially stock market and yet this play important aspect in playing the stock market. This made happen in MAS and AirAsia shares deal recently. So this is good or bad?
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Scant details on MAS-Firefly deal
PETALING JAYA: There seems to be very little known about Malaysia Airlines' plan for existing budget carrier Firefly Sdn Bhd and its new proposed airline Sapphire.
A spokesman for the national carrier told StarBiz that following the initial announcement on Aug 9, it was too premature to provide further information and that more information would be available once details of the plan have been finalised.
When MAS and AirAsia Bhd entered into a collaboration agreement on Aug 9 after major shareholders of both airlines executed a share swap deal, it was announced that MAS would review Firefly's operations and that the national carrier's shorthaul full-service carrier business may be undertaken by itself and/or through a new MAS subsidiary known as Sapphire. MAS was also said to have the flexibility to re-designate capacity, assets and resources from Firefly to form Sapphire.
However, since the initial announcement, details have been scant on what will happen to Firefly's existing operations. There have been concerns that Firefly flights will be cancelled with some routes axed and air fares increased as a result of the collaboration agreement.

Overlapping services: There have been concerns that Firefly flights will be cancelled with some routes axed and air fares increased as a result of the collaboration agreement signed in August.

 

A week after the August announcement, Firefly managing director Datuk Eddy Leong is reported to have said that Firefly would be upgraded to a full-service turboprop operator while Sapphire would take over its Boeing jets.
Leong added that Firefly's turboprop operations would be expanded in terms of fleet size and routes, and would continue as an independent brand under MAS ownership.
Meanwhile, CIMB Research expects Sapphire to start operations in November and the airline will be positioned as a full-service carrier serving regional routes (Asean, South China and south/east coast of India), in the same way SilkAir is positioned within the Singapore Airlines group.
“We believe that Sapphire will adopt the same seat configuration as the refreshed MAS B737-800 product, which is a significant improvement from the existing aged B737-400 fleet.

“Aside from this, all of Firefly's leased B737-800s could be re-configured from low-cost carrier planes into full-service carrier aircraft and then transferred to Sapphire,” the research report said.
It added that from a tax perspective, it would seem logical to keep all operations under mainline MAS because of its tax-exempt status until 2015 as well as its huge unutilised capital allowances and tax losses carried forward. But there are other considerations such as the need to clearly separate Sapphire from MAS as Qantas Airways did with Jetstar.
“Sapphire is likely to sign contracts of service with pilots and crew on different terms than that of MAS. Also, Sapphire staff are not likely to be unionised. This will give Sapphire a lower unit-cost base and help it achieve greater profits. Second, we suspect that a stake in Sapphire could eventually be sold to Qantas,” CIMB Research said.
Despite the fact that Qantas has said that its Asia-based super premium full-service carrier will be based in either Singapore or Malaysia (with a higher leaning towards Singapore), CIMB Research believes that Qantas will want to have a presence in Kuala Lumpur and may do so through an investment in Sapphire.
“As such, Sapphire needs to be separated from mainline MAS to facilitate an investment by Qantas, which would not be interested to invest in other parts of MAS's business, including its domestic and international aviation businesses, even if the Malaysian Government permitted this.
“An investment in Sapphire would fit Qantas very well because the KL aviation market is unlikely to be able to accommodate a super-premium offering by Qantas' new airline,” it added.

Source: The Star