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

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.
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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

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

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

US Bank halt the loan but Malaysia Bank give loan !!!

Based from Time Magazine 26 September 2011, Subcriber Edition, mention that US bank halt their loan to American even do the bank has profit more than USD 198 bilion. However at Malaysia the situan is different the Bank is racing in giving financing to Malaysian People. So does this a good clue in investing in KLSE stock market?
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UALA LUMPUR, Sept 20 (Bernama) -- OCBC Bank (Malaysia) Bhd aims to disburse RM4 billion in loans for Small and Medium Enterprises (SMEs) by year-end. Last year the bank disbursed about RM2.5 billion.

Director and Chief Executive Officer Jeffrey Chew said this year, the bank as of June, had approved RM5 billion in loans for SMEs with RM2 billion having been disbursed.

"We are very proud that Malaysia is number one in terms of access to credit for SMEs and this is spearheaded by Bank Negara Malaysia, which has enabled the industry to develop.

"They (SMEs) just need to have a good business plan, track record and human capital capability in areas such as branding, marketing, distribution and so forth," he told reporters at the ACCA SME Conference 2011 here.

SME Corp Malaysia's Deputy Chief Executive Officer Mahdi Mohd Ariffin said the main challenge faced by SMEs today was actually cash flow.

"When a bank looks at proposals, it needs to consider and access the cash flow of these SMEs because it helps them repay loans.

"Access to finance should not be the issue confronting SMEs, as Malaysia has been recognised as being number one, in terms of getting access to credit and there is ample liquidity in the market," he added.

He also said that banks are currently searching for good SMEs that have the potential to export or widen trade overseas.

Source: Bernama

Stocks to watch: AirAsia, MISC, Alam Maritim, KESM, plantations

AirAsia, MISC, Alam Maritim and plantation sector  are the stock need to watch in this time during investing in the stock market, especial during this bear market.
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KUALA LUMPUR: After the extended selling pressure by foreign funds, which has spread to fundamentally strong companies, local investors are not ready for any bottom fishing as yet on Wednesday, Sept 21.
The FBM KLCI fell to a fresh 13-month low on Tuesday, Sept 20, closing at 1,410.64 while the broader market saw declining stocks beating advancers two to one.
Among the major decliners were Petronas Chemicals Bhd, which lost 27 sen to RM5.78 which saw 35.41 million shares transacted. Dialog Group lost 17 sen to RM2.18 and MRCB seven sen to RM1.79 in very active trade. Even PUBLIC BANK BHD [] closed lower, down 20 sen to RM12.60.
On the international front, investors are waited to see if the Federal Reserve's policy-setting panel offers aid to a sputtering US economy, according to Reuters.
“At the two-day meeting that starts Tuesday, the Fed is expected to try to push already low long-term interest rates even lower by tilting toward longer-duration bonds in its portfolio, a move known as Operation Twist,” it said.
At Bursa Malaysia, stocks to watch include AIRASIA BHD [], MISC BHD [], ALAM MARITIM RESOURCES BHD [], KESM INDUSTRIES BHD [] and  HO WAH GENTING BHD [] [] (HWGB).
However, PLANTATION []s could be given a boost following the firm crude palm oil prices. The CPO for third-month delivery rose RM26 to RM3,067 per tonne.
AirAsia Bhd said its Thai unit's initial public offering is on track to take place in the fourth quarter, according to a Reuters report.
"AirAsia Group would like to state and confirm that the newsflow is incorrect and that the IPO is still scheduled for 4Q11 listing," a spokesperson for the airline said in a statement on Tuesday
A local newspaper had earlier said CIMB Securities (Thailand), which is advising on the US$200 million IPO, had reported the listing was delayed as the airline needed more time to restructure and conduct due diligence.
This saw AirAsia’s share price falling to 16 sen to RM3.19. CIMB Equities Research cut its target price for the low-cost carrier from RM4.32 to RM3.98 as it implied lower price-to-earnings multiples of 12 times from 13 times to its FY12 earnings per share.
Meanwhile, Moody's Investors Service downgraded the issuer and senior unsecured ratings of MISC Bhd from A3 to Baa1. The outlook of the ratings is negative.
“The prolonged weakness in MISC's credit metrics, operating losses in its liner, chemical and petroleum segments, and large capital expenditure plans -- amidst a difficult operating environment – had triggered the review,” it said.
The international ratings agency pointed out that MISC's adjusted debt/earnings before interest, tax, depreciation and amortisation (EBITDA) of 6.0 times and EBIT/interest of 1.6 times for FY ended March 31, 2011 remain stretched for its current standalone rating.
Moody’s also said MISC was also projected to incur US$1.8 billion of capex -- from FY2011 to FY2012 -- for new vessel deliveries, offshore and heavy engineering projects. In addition, its liquidity profile has weakened, with maturing debt of RM1.58 billion requiring refinancing as at June 30, 2011.
On a positive note, Alam Maritim Resources Bhd’s unit has secured a RM22.10 million contract to supply a vessel to a local oil and gas company. The contract was for 28 months and it started on July 24.
KESM Industries Bhd’s earnings fell 50.8% to RM2.14 million in the fourth quarter ended July 31, 2011 from RM4.36 million a year ago which was due to lower sales margins but for the financial year, it managed to record double-digit increases in pre-tax profit and revenue.
Revenue slipped 5.6% to RM61.35 million from RM65.05 million while earnings per share (EPS) were 5.0 sen versus 10.10 sen. It proposed a dividend of three sen a share.
For the financial year ended July 31, 2011, its net profit increased 5% to RM12.38 million from RM11.74 million while revenue rose 10% to RM248.11 million from RM226.46 million. It recorded pre-tax profit of RM22.71 million, an increase of 17% compared with RM19.40 million. KESM said operating expenses fell 9% to RM223.95 million from RM207.11 million.
HWGB’s rights shares with new warrants were undersubscribed by 79.54% at the close of the acceptance and payment of the rights issue on Sept 13. The corporate exercise involved the issuance of 115.81 million rights shares together with 57.91 million new warrants available.

Source: The Edge

Market Information: Demand For Gas In Asia To Increase

SINGAPORE, Sept 20 (Bernama) -- The demand for liquified natural gas (LNG) is expected to increase in Asia, and Singapore is set to tap the significant market growth, says International Enterprise (IE) Singapore chief executive officer Teo Eng Cheong.

"For the growth of Asia's LNG industry to remain strong, the marketplace needs a dynamic environment. As Asia's top oil hub, Singapore is well positioned to also be the regional hub for LNG.

"Today, Singapore is the gateway to key LNG markets. More than 400 petroleum and petroleum trading companies are already based here," he said in his address at the opening of the World LNG Series: Asia Pacific Summit here today.

Teo said while Singapore may not be a major LNG consumer or supplier, it had seen strong and steady growth in its LNG trading sector in recent years.

Shell was among the first energy majors to establish LNG marketing and trading activities in Singapore while other key players include BP, BG Group and Gazprom.

Teo said more energy companies have also started new LNG trading businesses here.

"Just this year, we witnessed new entrants to the cluster, including Gunvor, Vitol, and PetroChina.

"We are very encouraged by this progress. It showcases the potential of the LNG industry in playing a greater role in contributing to Singapore's economy."

"Many projects that are set to boost the growth of our LNG eco-system are already in the pipeline," he said adding that the construction of Singapore's first LNG terminal is on track to commence commercial operations by mid-2013.

As the government agency responsible for promoting the republic's trade, Teo said IE Singapore will continue to work with interested players to facilitate entry and growth of their operations in Singapore.

Teo said the long-term outlook for gas market was also strong as countries were diversifying their energy sources by seeking alternatives to oil and coal, and are switching to cleaner fuels like petrol gas.

By 2030, he said natural gas demand is projected to increase by 60 per cent to overtake coal in the global energy mix, to become the second most dominant source of energy globally.

He also pointed the global use of nuclear as an energy source has slowed significantly since Japan was hit by a tsunami and earthquake in March.

Most of the future action, he said would be seen in emerging markets.

He said 80 per cent of the growth is expected to be in non-OECD (Organisation for Economic Co-operation and Development) countries by 2035, largely driven by the emerging economies of Asia.

China's demand for natural gas alone is projected to grow more than five times from the current 20 billion cubic metres to 110 billion cubic metres by 2015.

He said while South-East Asia was traditionally a LNG exporting region, with no importers, this was expected to change by 2015.

Teo said 10 LNG import terminals with a total import capacity of some 34 billion cubic metres were possibly coming online in the region.

Several recent trends further underscored Asia's role in the evolution of the global LNG market.

He said Asia's LNG demand surged strongly after the 2008 financial crisis.

It is expected to grow faster than supply in the coming years.

The supply situation is only expected to ease after 2015, when more LNG production projects and supply options come on-stream.

Source: Bernama

Market information: Privatisation Of Solid Waste Management Will Raise Standard Of Service, Says Muhyiddin

Stock market information for Malaysia market where the solid management is going to privatize..
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UTRAJAYA, Sept 19 (Bernama) -- The privatisation of solid waste management will raise the quality of the service in the country to a higher level and bring it to par with global standard, says Deputy Prime Minister Tan Sri Muhyiddin Yassin.

The move would also enable the selected concessionaire companies to make large scale investments in the latest technologies, modern machinery and equipment as well as highly skilled work force towards offering a more efficient service.

Muhyiddin said this during a press conference after witnessing the signing of a new Concession Agreement and a Tripartite Agreement between the Federal Government and three concessionaires here in conjunction with the full privatisation of the management of solid waste and public cleaing service, here Monday.

"With the (concession) agreement for a 22-year period, they would be able to for example, increase the number of compactors' (a machine or mechanism used to reduce the size of waste material or soil through compaction), other machineries and trained workforce as well as make available an adequate number of waste bins.

The three concessionaire companies are Alam Flora Sdn Bhd, which will manage the central and east zones comprising the Federal Territory of Kuala Lumpur, Putrajaya, Pahang, Terengganu and Kelantan, SWM Environment Sdn Bhd which will manage the southern zone covering Johor, Melaka and Negeri Sembilan while Environment Idaman Sdn Bhd will manage the northern zones of Kedah and Perlis.

Muhyiddin also expressed confidence that the three states -- Selangor, Pulau Pinang and Perak -- will also enforce the Solid Waste Management and Public Cleanliness Act 2007 (Act 672) in the near future.

He said the new agreement had also brought to an end the uncertain 14-year interim waiting period for the concessionaires.

Prior to the new agreement, the companies had been quite reluctant to invest millions of ringgit to expand their services as there were no solid guarantee from the government, he said.

"The change has been made taking into account various aspects including the policy frame, institutions, law and the interest of the people. The government also took into account the limited financial capacity of the companies to manage solid waste in a more efficient manner."

Muhyiddin, who is also Education Minister said the full privatisation of the service was also part of the Malaysian government's voluntary commitment to reduce greenhouse gas emissions by 40 per cent by 2020.

He said under the Ninth Malaysia Plan, the government had spent about RM958.7 million to manage solid waste, but in 2010 alone, the government had to spend RM303 million which was one third of the total amount spent throughout the 9MP period.

He added that the cost of solid waste management had continued to strain the government considering that the waste produced by the people had gone up from 19 thousand tonnes daily in 2005 to 27 thousand tonnes a day presently.

This clearly indicates a serious situation considering that many of the solid waste disposal sites in the country are not sanitary landfills.

Source: Bernama

TNB going bankrupt: Will Tenaga Nasional be split up?

The Tenaga is suffering a lot of lost..
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Speculation resurfaces as the utility faces additional RM3bil in costs
PETALING JAYA: Speculation of splitting Tenaga Nasional Bhd (TNB) up has resurfaced as the utility company faces an additional RM3bil in costs from having to look for alternative sources of fuel for power generation due to a shortage in gas supply.
However, TNB president and chief executive officer Datuk Seri Che Khalib Mohd Noh did not respond to StarBiz query on the matter.
Analysts said there were a number of obstacles that would make any break-up of the company unlikely at the moment.
They pointed out that fixed energy prices and power-purchase agreements signed with the independent power producers were among the main reasons why there would not be any imminent split-up.
“This was mooted 10 years ago as part of a power-pooling structure where prices would have been deregulated and left to the markets,” an analyst pointed out.
TNB has three divisions, transmission, distribution and generation, of which the first two are the most profitable.
The analyst said any break-up of TNB was highly unlikely as the political costs would be too high. “Due to the high costs of energy, letting prices gyrate may not be a good idea,” he said.
Furthermore, he said energy subsidies would only be entirely removed in 13 years (based on recommendations by the Performance Management and Delivery Unit that subsidies be gradually removed) while the power purchase agreements (PPAs) signed with the independent power producers complicated any move to restructure prices.
“The Government will have to wait at least until 2016 when the first of the first generation PPAs expire,” he said.
Meanwhile, another analyst added that the idea of breaking up TNB was not feasible as long as the company's generation division did not have a cost pass-through mechanism.
“It's difficult to see earnings visibility especially if there's more disruption to gas supply,” he said, adding that there was also the question of whether the Government would allow the company to pass on the costs to consumers.
HLIB Research analyst Daniel Wong, in a report, downgraded TNB shares to “hold” with a target price of RM5.10, based on discounted cash-flow estimates on continued disruption in gas supply and delay in tariff hikes.
TNB closed 8 sen up at RM5.09 yesterday.
“In the near term, TNB's margin will be eroded by higher fuel cost due to gas shortage (even if Petroliam Nasional Bhd maintenance is completed) as power demand increases while coal and hydro power capacity utilisation has been maximised,” Wong said.
He said the decision to implement a fuel cost-pass-through mechanism lay with the Government and was influenced by political, economic and social factors.
Wong added that the proposal for fuel cost sharing during gas curtailment period was also pending Government approval.

Source: The Star

Stocks to watch Proton, Tenaga, Catcha, Cypark, tobacco players

On Monday 19.09.11 KLSE will do a rebound based on TA on previous five day so below are pick for 19.09.11 ....
KUALA LUMPUR: The FBM KLCI could stage a corrective rebound in the week beginning Monday, Sept 19, on the back of the announcements made by Prime Minister Datuk Seri Najib Razak as well as corporate news flow.
Najib on Sept 15 announced the proposed repeal of the Internal Security Act (ISA) and laws related to banishments, but gave little detail of the two proposed enactments to be in place after the ISA is repealed.
There is also heavy anticipation of a people-friendly Budget 2012 to be tabled on Oct 7, seen as the final one before the general elections which some analyst say could be called within the next six months.
There were also corporate announcements by PROTON HOLDINGS BHD [], TENAGA NASIONAL BHD [], Catcha Media Bhd and Cypark Resources that could put them in focus, while tobacco players may see some selling pressure on worries of a tax hike.
On the external front, US stocks rose for a fifth day in a row on Friday and the S&P 500 scored its best week since early July on signs euro zone leaders were acting together to limit any damage from its sovereign debt crisis.
Affin Investment Bank Bhd head of retail research Dr Nazri Khan said he expects the FBM KLCI to do corrective rebound next week before resuming its downtrend spotted since July this year.
We believe next week to be interesting as most regional indices including FBMKCLI is close to test its year-to-date low (with FBMKLCI testing 1,423 level).
“A strong rebound from the support may suggest a reliable bottom in progress.
“The fact that FBM KLCI is currently down by 11% (since mid July 2011 week) on the past eleven losing weekly session may suggest an oversold rebound is imminent,” he said.
Proton and Japan’s Mitsubishi Motors Corporation (MMC) are considering joint production of engines in Malaysia and production of MMC-brand vehicles at Proton’s plants under their proposed strategic collaboration.
Confirming The Edge FinancialDaily report on Thursday, Sept 15 about the broad ranging strategic collaboration, they said in a joint statement they were in “serious collaboration” to enhance their competitiveness in the global market place.
Tenaga plans to raise RM5 billion from a 20-year ringgit denominated Sukuk to be issued at the end of October, its president and chief executive officer Datuk Seri Che Khalib Mohd Noh was reported as saying to Bernama on Sept 15.
Che Khalib said the book building exercise was to be held in the third week of October and that the proceeds from the Sukuk would be used to finance the extension of the 1,000-MW Janamanjung coal-fired power plant in northern Perak.
Catcha Media is foraying into the luxury goods business after acquiring a Singapore-based company Haute Groupe Pte Ltd, which also sells luxury goods online, for S$5 million or RM12.34 million.
Catcha Media said on Thursday, Sept 15 it was acquiring the entire equity from Loong Siew Fong and her spouse Low Choong Lang.
Haute Groupe’s core activities are retail of bags, luggage and travel accessories and the wholesale of bags, luggage and travel accessories. It also operates the luxury flash sales website hauteavenue.com and luxury flash sales event business.
Cypark could see some trading interest after it secured a RM29.88 million contract from Putrajaya Holdings Bhd for infrastructure, landscape and road works in Putrajaya.
It said on Thursday, Sept 15 that it had accepted the letter of award for the project from Putrajaya Holdings on Sept 14.
Meanwhile, BRITISH AMERICAN TOBACCO (M) [] Bhd and JT INTERNATIONAL BHD [] may see continued selling pressure on concerns of a hike in the tobacco duty in the Budget 2012 proposals to be tabled on Oct 7.
OSK Research on Sept 15 said it expected a moderate hike in tobacco duty in the upcoming Budget but it believes that the breweries will be spared.
“We prefer BAT to JTI as the former is less exposed to value-for-money brands which are more price elastic and prone to substitution,” it said.

Source: The Edge

US STOCKS-Push for action in euro zone fuels gains

NEW YORK: U.S. stocks rose 1 percent in a third day of gains on Wednesday after European leaders displayed new urgency in efforts to contain the euro zone debt crisis.
German and French leaders called on Greece to implement all financial reforms "strictly and effectively," a German government spokesman said.
Greece expects policymakers to report that Athens is on track to fulfill its targets and receive the aid it needs to avoid any chance of a debt default, a Greek official said.
Adding to the relief for investors, Italian Prime Minister Silvio Berlusconi won a confidence vote on an austerity plan for Italy, the euro zone's third-largest economy.
Fears that Europe's crisis could plunge it into recession and drag down global growth have hammered stocks for weeks. Stocks that are typically well positioned to benefit from economic growth, such as General Electric and other industrial shares, were top gainers.
"What we're watching is global hedge funds, at least momentarily, throw the risk-trade switch back on, directing funds away from the dollar and into the euro and into global equities," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon.
Sentiment received an early boost after Europe's top bureaucrat said plans for a common euro zone bond, seen by many as a key tool to ease the region's festering debt crisis, would soon be presented.
The Dow Jones industrial average was up 140.88 points, or 1.27 percent, at 11,246.73. The Standard & Poor's 500 Index was up 15.81 points, or 1.35 percent, at 1,188.68. The Nasdaq Composite Index was up 40.40 points, or 1.60 percent, at 2,572.55.
The S&P 500 is still down 11.6 percent since July 22, roughly when the market's recent slide began.
The actions by European leaders followed an urgent call by U.S. Treasury Secretary Timothy Geithner for them to act forcefully to solve Europe's debt crisis. Geithner said they have the financial and economic capacity to do so.
Geithner will attend an informal meeting of EU finance ministers in Poland on Friday.
Conglomerate GE ended 2.5 percent higher at $15.79. Tech stocks also were among top gainers, and the Nasdaq outperformed the other two major indexes for a third day.
Shares of Nvidia Corp jumped 5.2 percent to $15.28, while SanDisk Corp, another chip maker, rose 4.2 percent to $42.66.
Dell Inc added 3.3 percent to $14.86 a day after its board authorized an additional $5 billion stock buyback program.
Volume was 8.5 billion shares on the NYSE, Amex and Nasdaq, above last year's average of roughly 7.6 billion.
Advancers beat decliners by nearly 11 to 4 on the NYSE and by about 9 to 3 on the Nasdaq.
The day's U.S. economic data was mostly brushed aside by investors. Growth in retail sales stalled in August while business inventories rose slightly less than expected in July, suggesting caution by firms about demand at the start of the third quarter.

Source: Reuters

Stocks to watch: Lion Industries, Proton, Glomac, Tenaga

The bargain is there but the week momentom..the stock future is volatile..

KUALA LUMPUR: With the FBM KLCI hitting a 53-week low on Wednesday, Sept 14, there could be some mild bargain hunting for oversold stocks on Thursday, but the extent of the buying would hinge on the volatile external environment.
The 30-stock KLCI closed down 10.39 points to 1,437.61, the lowest since Sept 9, 2010 when the KLCI ended the day at 1,437.78. Indeed, a major disappointment for the KLCI after it hit a historic high of 1,579.08 on July 11. Year-to-date, the KLCI is down 5.35%.
Sime Darby fell 23 sen to RM8.47, dragging the index down by 3.2 points while Genting lost 16 sen to RM9.44, nudging the index down by 1.37 points. Tenaga Nasional shed nine sen to RM5.12, dragging the index down by 1.13 points.
Some positive news could come from Prime Minister Datuk Seri Najib Tun Razak who is expected to announce various government policies over RTM1 on Thursday at 8.30pm, the eve of Malaysia Day.
Other positive factors underpinning the country’s economy are the projects under the Economic Transformation Programme , expansion of the oil and gas sector and also the PLANTATION [] sector. Also supporting sentiment is the Budget 2012 proposals which scheduled to be announced on Oct 7.
Deputy Prime Minister Tan Sri Muhyiddin Yassin said Wednesday he believes there could be several big initial public offerings (IPOs) in the next few years in Malaysia. He was quoted by Bernama as saying the government had introduced more business-friendly procedures to encourage capital inflow into the stock market.
Among the stocks to watch are Lion Industries, PROTON HOLDINGS BHD [], GLOMAC BHD [] and TENAGA NASIONAL BHD [].
RHB Research Institute said in a report on Wednesday that it had downgraded Lion Industries from Trading Buy to Underperform following a potential spillover effect from its subsidiary Megasteel’s financial difficulty.  Its indicative fair value was revised to RM1.59 (from RM2.13 previously).
“LionCorp’s subsidiary Megasteel is not in the best of shape owing to internal weaknesses, weak demand in the flat steel market and high raw material costs. Not helping either is its highly-geared balance sheet.
“We think that the prospects of a foreign partner coming into Lion Group are diminishing given that corporations are likely to turn more cautious on acquisitions due to the uncertainty in the global economy. Hence, we are now more neutral about the potential entry of a foreign partner.
“We feel there is an increased risk that LionCorp may be unable to meet the interest and principal payment obligations due to weak operating environment. In the absence of a foreign partner, we believe LionCorp might need to restructure its debt payment again.
“LionCorp holds a 25%-stake in Lion Industries. Thus, any restructuring plan by LionCorp could potentially involve the sale of this equity stake, in our view,” it said.
Meanwhile, Proton Holdings Bhd will hold its AGM on Thursday as investors are expected to raise questions about the sharp fall in the earnings.
Another question is how confident is Proton that its unit Lotus Group International Bhd would be able to break even by 2014.
Proton’s net profit fell 94.6% to RM4.55 million in the first quarter ended June 30, 2011 from RM84.68 million a year ago largely due to the higher expenses incurred by Lotus Group.
In April this year, Lotus Cars Ltd secured £270m million (RM1.33 billion) in loans from six financial institutions over a six-year period in a move to turnaround the loss-making England-based company.
Proton group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir had on then said he expected Lotus to breakeven by 2014. The loan syndication forms part of the funding required to execute the five-year business plan. With the closing of the syndication exercise, the external portion of the funding is now in place.
In Glomac, its Thai subsidiary is disposing of its stake in Thai company WHA Glomac Alliance Company Ltd for baht 289.91 million (RM30.92 million)
Glomac said on Wednesday, Sept 14, Glomac Thailand Sdn Bhd had agreed to sell its 49% stake in WHA Glomac Alliance to WHA Corporation Co. Ltd.
As for Tenaga, OSK Research had cut its FY11 forecast by 56% and for FY12 by 16%. Its fair value was reduced to RM6.24 from RM7.53 previously.
“More importantly we see BV per share dropping from RM5.32 end 3Q to RM5.25 end 4Q to RM5.18 by end 1Q and flattening there for 2Q before creeping up again starting 3QFY12
“With Tenaga hardly dropping below 1.0 times price to book value over the past 10 years, we believe this should be viewed as a strong support level. So BUY Tenaga given that it is quite close to the projected minimum book value of RM5.18,” it said.

Source: The Edge

Stocks to watch: Tenaga, glove makers, Ramunia, Wang-Zheng

Tenaga and glove makers are the most heavy weight stock.
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KUALA LUMPUR: A lack of strong corporate newsflow could see lacklustre trading on Wednesday, Sept 14 while investors focus on external developments from the US and Europe.
Reuters reports Europe's sovereign debt and banking crisis is expected to push the region into recession over the next 12 months, and most investors do not expect higher U.S. interest rates until 2013, a survey showed.
The monthly survey taken by Bank of America Merrill Lynch from Sept. 1 to 8 showed 55% of European fund managers see Europe suffering two quarters of negative gross domestic product growth. That compares with only 14% in July.
Stocks on Bursa Malaysia were also not spared in the selldown in recent weeks. Malaysia took the brunt of the selling in August among the emerging markets, where it accounted for 31% of the total selling when its weighting was only 8%, according to a Credit Suisse Research report.
In August, the 30-stock FBM KLCI fell 110.74 points to end the month at 1,447.27 while RM94 billion was wiped out from the Bursa Malaysia market capitalisation, reducing it to RM1.241 trillion.
Meanwhile, stocks to watch on Wednesday include TENAGA NASIONAL BHD [], glove manufacturers, RAMUNIA HOLDINGS BHD [] and WANG-ZHENG BHD [].
Tenaga Nasional Bhd president and CEO Datuk Seri Che Khalib Mohamad Noh said the power company has to spend an additional estimated RM3 billion on power generation for this year, while having to raise financing for operations as the only solution to sustain itself.
He was quoted saying by Bernama that if no immediate solution was found to address the gas crisis, it would be the first time then, that the company was going to the market to raise money for operations. Previously, all fund raising was for capital expenditure, he said
Glove makers could continue to see some selling on concerns about the weak demand for the products. Analysts maintained a negative outlook for the sector as there were no strong catalysts to boost glove demand as well as profit margin, in the absence of a pandemic.
Ramunia’s net profit fell 86.9% to RM2.036 million in the third quarter ended July 31, 2011 versus RM15.59 million a year ago. Turnover was only RM183,000 compared with RM6.137 million a year ago. Earnings per share  were 0.31 sen versus 2.40 sen.
Other income generated by the group had decreased by RM12.70million compared to preceding year corresponding quarter mainly due to the gain arising from the disposal of Teluk Ramunia fabrication yard.
Wang-Zheng is acquiring a 6.73-acre leasehold industrial land in Port Klang for RM18.5 million to be held as an investment property to be rented out.
Its unit New Top Win Corporation Sdn Bhd (NTW) had entered into a sale and purchase agreement with Klang Hock Polystyrene Industries Sdn Bhd to acquire the land.
SARAWAK OIL PALMS BHD [] is providing a corporate guarantee for RM59 million to Affin Bank Bhd for the banking facilities obtained by its subsidiary SOP Pelita Batu Lintang PLANTATION [] Sdn Bhd. The company had executed a corporate guarantee for a term loan of RM54 million and revolving credit facility RM5 million.

Source: The Edge

Stocks to watch: Telcos, KKB, Puncak Niaga, Formis

Telcos remains neutral but does this mean this shall affect the FBM KLCI
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KUALA LUMPUR: Stocks on Bursa Malaysia may see another volatile trading day on Tuesday, Sept 13 in line with the regional markets as investors worried whether there could be a permanent solution to the Euro zone.
Lack of clarity from the Group of Seven finance chiefs over the weekend on how to boost their struggling economies added more woes to the markets.
The 30-stock FBM KLCI index fell 1.56% or 22.86 points to 1,446.26, the steepest single day loss since Aug 9, weighed by losses including at banking and key blue chips. Year-to-date, the KLCI is down 4.78%.
Other regional markets which have fallen sharply year-to-date are the Nikkei 225, which is down 16.55%, Hang seng Index down 17.39%, Shanghai Composite Index 11.05%, Taiwan Taiex 11.61% and South Korea’s KOSPI 11.61% and Singapore’s FTSE Straits Times Index.
Stocks to watch on Tuesday are telecommunications companies have agreed to defer the 6% service tax for pre-paid users which was to come into effect on Thursday, Sept 15.
Bernama reported that Information, Communications and Culture Minister Datuk Seri Dr Rais Yatim said the agreement was reached at a meeting between the four major telcos in the country and the ministry at Angkasapuri here on Monday.
"The meeting with the managements of Celcom, Maxis, Digi and U Mobile was held in a cordial atmosphere ...they responded positively to the ministry's advice, the government's views and sentiments expressed by Prime Minister Datuk Seri Najib Tun Razak on the matter," he told reporters after the meeting which lasted about an hour.
Telcos which are expected to be most impacted by the recent decision include DIGI.COM BHD [] which has the largest number of prepaid users. DiGi fell 30 sen to RM31.70.
KKB ENGINEERING BHD [] has secured two contracts totaling RM30.7 million to supply water pipes and LPG cylinders.
Its subsidiary, Harum Bidang Sdn Bhd accepted a contract from YWP Builders Sdn Bhd to manufacture and supply MSCL water pipes and pipe specials for the rural water supply project in Sarawak.
KKB also said it had accepted a letter of award from PETRONAS DAGANGAN BHD [] to fabricate and supply the LPG cylinders to Petronas Dagangan Bhd for one year commencing September with an option to extend for another year.
PUNCAK NIAGA HOLDINGS BHD [] announced that holders of its RM546.87 million nominal value 15-year redeemable unconvertible notes can exercise their right to sell any of the notes. he company said the 10th anniversary of the date of the issue or put date would be on Nov 18.
All noteholders have the right to require the company to repurchase all or some only of their outstanding notes on the put date. The company shall be obliged to repurchase the same at the full outstanding principal amount.
Meanwhile, US-based global investment management firm T. Rowe Price Associates, Inc. has exited from REXIT BHD [] after the disposal of its 13.36 million shares or 7.22% stake on Sept 7.
An earlier filing showed that Rexit’s non-independent non-executive director Kuah Hun Liang had acquired 12 million shares on Sept 7 at 22 sen each for RM2.64 million. The acquisition increased the veteran banker’s stake to 10.35% or 19.157 million shares.
INSAS BHD [] saw its indirect stake in Formis Bhd increase to 15.09 million shares or 8.12% after the acquisition of three million shares on Sept 8. The shares were acquired by its subsidiary Insas Plaza Sdn Bhd via a direct business transaction.