#Stocks to watch:* RCE Cap, AZRB, Jetson, EON Cap

KUALA LUMPUR: Key regional markets including Bursa Malaysia are expected to kick off the new week, Monday, Sept 6 on a firmer note after Wall Street climbed as anxiety of a double-dip recession eased.

On Wall Street, stocks jumped and commodities rose on Friday, after data showing fewer U.S. job losses than expected reinforced other reports this week to ease fears the American economy is on the cusp of a new recession.

According to Reuters, the US Labor Department said non-farm payrolls fell 54,000 in August. Private employment, considered a better gauge of labour market health than government hiring, added 67,000 jobs after an upwardly revised 107,000 gain in July.

The Dow Jones industrial average closed up 127.83 points, or 1.24%, at 10,447.93. The Standard & Poor's 500 Index gained 14.41 points, or 1.32%, at 1,104.51. The Nasdaq Composite Index added 33.74 points, or 1.53%, at 2,233.75.

At Bursa Malaysia, stocks to watch on Monday include RCE CAPITAL BHD [], AHMAD ZAKI RESOURCES BHD [] (AZRB), KUMPULAN JETSON BHD [], EON CAPITAL BHD [] and Mudajaya Corp Bhd.

The Edge Weekly reports that though more financial institutions are entering the niche market of providing loans to government servants via civil service cooperatives but RCE Capital is confident it will maintain its market share.

RCE posted net profit of RM23.63 million in the first quarter ended June 30, 2010 versus RM18.53m a year ago. The group recorded a higher profit before tax of RM33.7 million the 1Q, up 12.4% or RM3.7 million from RM30.0 million in the preceding quarter.

AZRB has initiated legal actions against Saudi Arabia's Alfaisal University over the latter's decision to liquidate the performance and advance bonds totalling 52.56 million riyals (RM43.94 million).

The dispute arose over the contract agreement with the university for the Alfaisal University campus development project, phase one and two, in Riyadh.

Last Friday, Kumpulan Jetson Bhd said the Naza Group's TTDI KL Metropolis Sdn Bhd (TKLM) has terminated the shareholders' agreement with Jetson to build a new trade exhibition centre for the Malaysia External Trade Development Corporation (Matrade) on a joint-venture basis.

Jetson said on Friday, Sept 3 the termination arose from disagreements on certain commercial terms relating to the project costs for the Matrade centre in Jalan Dutamas which was expected to cost RM628 million.

However, though the shareholders' agreement has been terminated, Jetson could probably play a role as the contractor to undertake the project.

In EON Capital, the High Court judge has fixed Monday to deliver his decision on certain interlocutory applications filed by the parties to a petition.

Primus (Malaysia) Sdn Bhd had filed a law suit against the board members and certain shareholders of EONCap.

The suit was to seek various court declarations and orders as well as some RM1.12 billion in damages from EONCap directors should HONG LEONG BANK BHD [] (HLBB) succeed in acquiring EONCap's assets and liabilities.

Mudajaya could continue to see trading interest after its share price could retreat after the price surge last Friday.

The latest development was the appointment of Asgari Mohd Fuad Stephens as its chairman and there are expectations he would help put Mudajaya on firmer footing after the recent controversy over its Indian independent power plant project.

Asgari is the director and founding member of Intelligent Capital Sdn Bhd. According to Mudajaya, he has extensive experience in both public and private equity investing in Malaysia. He was former chairman of Leighton Asia (southern), part of the Leighton Group, Australia's largest project development and contracting group.

The share price surged 53 sen to RM4.48 with 9.65 million shares done, as interest in the stock was also spurred by a share buyback. Mudajaya also disclosed that it had bought back 100,800 shares for a total of RM394,584 at prices ranging from RM3.86 to RM3.90.

Nissan is open to China green car alliance-exec

TIANJIN: Nissan Motor is open to a green car alliance with Chinese automakers, a senior executive said on Saturday, Sept 4 as it moves to tap the fledgling industry in the world's largest auto market.

Nissan, 44 percent held by Renault SA, is joining General Motors and others in the race for green vehicles which industry observers say could be the next industry gold mine.

"It's impossible to develop electric vehicles alone. Joint effort is a more feasible solution," Yasuaki Hashimoto, president of Nissan China Investment Co, said in an interview on the sidelines of an industry event in the northern municipality of Tianjin.

When asked whether Nissan was interested in being part of a green vehicle alliance, made up of 16 Chinese state auto groups, Hashimoto said: "We are open to all options."

"Mr Li had also said the alliance won't stop at the existing 16 member companies only. It can be expanded," Hashimoto said, referring to Li Rongrong, head of China's state asset watchdog who has recently retired.

Nissan, which runs an auto venture with Dongfeng Motor Group, had earlier signed a deal with the municipal government of Wuhan to jointly promote its electric vehicle Leaf in the central Chinese city.

That would be one of the Japanese automaker's priorities in China next year, said Tsunehiko Nakagawa, vice president of Nissan China Investment.

Beijing launched a pilot scheme in five Chinese cities in the middle of this year to subsidise green car buyers, with handouts ranging from 3,000 yuan ($439.6) for fuel-saving models to 60,000 yuan for electric cars as it moves to cut fuel emission in the world's second largest economy.

The government may have more work to do to bolster demand for green models, such as standardizing industry specifications and building up a charging station network in the country, said Hashimoto.

Other foreign automakers are also on the move.

GM plans to launch its Chevy Volt next year in China, its biggest market, while Ford Motor and Volkswagen AG are also speeding up their effort of improve fuel-efficiency of their models. - Reuters

U.S. payrolls data offer ray of hope for recovery

WASHINGTON: U.S. employment fell for a third straight month in August, but the drop was far less than expected and private hiring was a positive surprise, relieving concerns about a stalling economic recovery.

Nonfarm payrolls fell 54,000 as jobs were lost in the government sector, and the unemployment rate edged back up to 9.6 percent, but the private sector, considered a better gauge of labor market health, added 67,000 jobs, according to U.S. Labor Department on Friday, Sept 3.

Economists had forecast a loss of about 100,000 jobs, along with a rise of about 41,000 in private sector payrolls.

"The recovery may be wobbly but it is still staggering forward," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.

The data did little to take the political pressure off President Barack Obama over the state of the economy though, or improve the Democratic Party's chances in November's mid-term congressional elections. Obama said his administration would announce new measures next week to help the economy. [ID:nN03102349]

"The figures take some of the pressure off the Fed to do something quickly to shore up the recovery, but they won't help the administration as the mid-term elections approach," Gault added.

While the jobs data tamped down concerns the recovery could stall, a second report on Friday showed growth in the dominant services sector hit a seven-month low in August, underlining the sluggish nature of the economic recovery. [ID:nN03111828]

U.S. stocks rallied, with the broad Standard & Poor's 500 index <.SPX> enjoying its best week in eight and the blue chip Dow Jones industrial average <.DJI> moved back into positive territory for the year.

Prices for safe-haven U.S. government debt fell for a third straight day as traders saw the odds of a "double dip" recession lessening. The U.S. dollar ended lower against major currencies.

PAYROLLS IN JUNE AND JULY REVISED UP

The loss of 54,000 jobs in August was driven by the government letting go 114,000 temporary workers hired to conduct the decennial census earlier this year, but the Labor Department revised payrolls data for June and July to show 123,000 fewer jobs lost than previously reported.

While the unemployment rate edged up to 9.6 percent from 9.5 percent, in line with expectations, it may have been because discouraged workers came back into the labor force to hunt for jobs and so were re-classified as unemployed.

The loss of census jobs and layoffs at cash-strapped state governments, pushed down federal government payrolls by 121,000 compared to a 161,000 fall in July.

The data also suggested corporate America may be beginning to take on workers again after an initial burst of hiring and production last year to restock shelves left bare during the deepest recession in generations.

The services sector added 67,000 jobs after July's 70,000 rise. Temporary help services, seen as a harbinger of future permanent hiring, rebounded 16,800 after falling in July for the first time since September.

Employment in the goods-producing sector was unchanged last month as a drop in manufacturing offset an increase in CONSTRUCTION [] payrolls, which were boosted by the return of 10,000 striking workers. Manufacturing jobs fell 27,000 after gaining 34,000 in July.

While the average workweek was unchanged at 34.2 hours, hourly earnings rose by 6 cents, which analysts said bodes well for consumer spending. There was also a glimmer of hope for the long-term unemployed. The number of people out of work for 27 weeks and more fell by 323,000 last month to 6.2 million.

OBAMA PROMISES MORE MEASURES

Concerns about a possible "double-dip" recession had already diminished somewhat this week after data showed strength in the U.S. manufacturing sector and an increase in consumer spending, but the sluggish pace of growth has kept investors on edge.

The scarcity of jobs has hurt consumer spending, which normally accounts for about two-thirds of U.S. economic activity, and left recovery from the worst recession in 70 years sputtering.

Economic growth slowed markedly in the second quarter this year and Federal Reserve Chairman Ben Bernanke said last week the central bank stood ready to take fresh steps to bolster the economy if needed.

Some analysts had expected the Fed to announce an expansion of its bond buying program at its upcoming meeting on Sept. 21, but said they saw no urgency now.

President Obama welcomed Friday's labor market report as "positive news", but said more needed to be done to help the economy and he promised an outline of new measures next week.

"The economy is moving in a positive direction, jobs are being created -- they're just not being created as fast as they need to given the big hole that we experienced," he said.

Obama's plans could include extending middle class tax cuts, delivering more tax cuts to businesses to encourage hiring, investing in clean energy, and spending more on infrastructure.

But the White House cautioned that the measures should not be seen as a second stimulus package. Lawmakers are in no mood to approve a big new spending plan that would add to the fiscal deficit. - Reuters

Stocks, commodities gain on labor market report

NEW YORK:'' Stocks jumped and commodities rose on Friday, Sept 3 after data showing fewer U.S. job losses than expected reinforced other reports this week to ease fears the American economy is on the cusp of a new recession.

The U.S. dollar fell against most foreign currencies and government debt prices slid as risk aversion ebbed on optimism the U.S. economy may not be as anemic as many had feared.

The Labor Department said non-farm payrolls fell 54,000 in August. Private employment, considered a better gauge of labor market health than government hiring, added 67,000 jobs after an upwardly revised 107,000 gain in July.

Recent poor economic data had strongly suggested for many in the market that a double-dip recession might be ahead.

"It's not a great report, but it's a bit better than expected, and it does not indicate that we're into some sort of headlong plunge into a double dip," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.

Risky assets later pared gains after a report showed the U.S. non-manufacturing sector grew below expectations in August, but services still expanded for an eighth straight month.

Copper prices hit a four-month high and silver climbed to its highest since March 2008 on the improved outlook for economic growth.

Wall Street closed more than 1 percent higher, with the benchmark Standard & Poor's 500 Index rising 3.8 percent for the week.

MSCI's all-country world index rose 1.2 percent and about 3.9 percent for the week -- its biggest weekly gain since the week ended July 11.

The Dow Jones industrial average closed up 127.83 points, or 1.24 percent, at 10,447.93. The Standard & Poor's 500 Index gained 14.41 points, or 1.32 percent, at 1,104.51. The Nasdaq Composite Index added 33.74 points, or 1.53 percent, at 2,233.75.

In Europe, the FTSEurofirst 300 index closed at a three-week high, up 0.8 percent at 1063.70.

While investors' appetite for risk rose on the payrolls report, data on national services by the Institute for Supply Management was a reminder of the economy's mixed outlook.

"What we're seeing here is that the recovery continues to bounce around. This supports our view that we're going to see a below-average recovery, though the jobs data earlier today made the case for a double-dip harder to make," said Channing Smith, vice president of Capital Advisors in Tulsa, Oklahoma.

Crude oil retreated after briefly rising on the jobs report, and gold prices curbed losses of more than 1 percent to trade lower on the services sector data.

U.S. crude for October delivery fell 42 cents, or 0.56 percent, to settle at $74.60 a barrel.

ICE Brent for October dipped 26 cents, or 0.34 percent, to settle at $76.67 a barrel.

Debt prices fell as investors increased riskier bets.

The benchmark 10-year Treasury note, down a full point earlier in the session, fell 24/32 in price to yield 2.71 percent.

The dollar was mostly weaker. The U.S. Dollar Index, a basket of major currencies, was down 0.55 percent at 82.01.

The euro was up 0.55 percent at $1.2895, while against the Japanese yen, the dollar was up 0.08 percent at 84.36.

December gold futures shed $2.30 to settle at $1,251.10 an ounce in New York.

Asian stocks edged higher before the job report, with MSCI's regional stock index outside Japan up 0.3 percent. Japan's Nikkei rose 0.6 percent, but was still down more than 13 percent for the year. - Reuters

G20 members agree economic recovery to continue

GWANGJU, South Korea G20 delegates agreed on Saturday, Sept 4 global economic recovery would endure although the speed of expansion may slow, a South Korean official said.

Kim Jae-chun, deputy governor of South Korea's central bank who co-chaired the meeting of G20 finance and central bank deputies, also told reporters they thought market reaction to concerns about economic slowdown was overblown.

"There was an agreement that the (global) recovery will continue even though the speed may slow from the level we thought of two to three months ago," Kim said after their meeting in the country's southwestern city of Gwangju.

Another official from a member country, who spoke on condition of anonymity, said there was discussion about the issue of readjusting representation on the International Monetary Fund's executive board but declined to elaborate.

John Lipsky, the IMF's first deputy managing director, declined to comment when asked if the issue would be resolved soon.

The G20 members have pledged to reach an agreement on the issue by the leaders' summit in Seoul in November but Europe has been reluctant to accept the proposals as it would diminish its voting rights on the board.

"Everybody is working very hard on it," said Jean-Pierre Landau, deputy governor of the Bank of France.

A European Union diplomat said on Friday that EU finance ministers would hold substantive talks on a U.S. push to cut Europe's representation at the IMF at an informal meeting at the end of this month. [ID:nLDE68219R]

The United States, frustrated at Europe's refusal to share more IMF power with emerging economies, took unprecedented action last month to block plans that would have kept Europe's long-running dominance over the 24-member board. [ID:nN19220411]

The officials from the Group of 20 developed and major emerging economies and from international organisations will meet again on Sunday to discuss issues including reform in the global financial regulatory framework. - Reuters

Shares end easier on profit-taking

KUALA LUMPUR: Share prices on Bursa Malaysia ended easier on Friday, Sept 3, as investors locked in profits in key heavyweights, particularly finance counters, after the recent sharp gains, dealers said.

The FTSE Bursa Malaysia KUALA LUMPUR COMPOSITE INDEX [] (FBM KLCI) closed 5.4 points lower at 1,435.67, dragged down by losses mostly in Genting, Sime Darby and Telekom.

The key index had opened 1.02 points lower at 1,440.05.

The recent sharp gains in the benchmark index was boosted by the rally in finance stocks, a dealer said.

The Finance Index increased 7.84 points to 12,957.67 and the PLANTATION [] Index gained 18.61 points to 6,661.11 but the INDUSTRIAL INDEX [] fell 4.46 points
to 2,766.34.

The FBM Emas Index meanwhile, slipped 13.95 points to 9,584.79, the FBM70 [] Index advanced 47.52 points to 9,377.18 and the FBM ACE index rose 32.93 points to 3,749.36.

Turnover declined to 922.100 million shares worth RM1.718 billion compared to Thursday's 1.075 billion shares valued at RM1.87 billion.

Advancers outnumbered decliners by 394 to 325 while 291 counters were unchanged, 352 untraded and 35 others suspended. -- Bernama

Shares end easier on profit-taking

KUALA LUMPUR: Share prices on Bursa Malaysia ended easier on Friday, Sept 3, as investors locked in profits in key heavyweights, particularly finance counters, after the recent sharp gains, dealers said.

The FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) closed 5.4 points lower at 1,435.67, dragged down by losses mostly in Genting, Sime Darby and Telekom.

The key index had opened 1.02 points lower at 1,440.05.

The recent sharp gains in the benchmark index was boosted by the rally in finance stocks, a dealer said.

The Finance Index increased 7.84 points to 12,957.67 and the Plantation Index gained 18.61 points to 6,661.11 but the Industrial Index fell 4.46 points
to 2,766.34.

The FBM Emas Index meanwhile, slipped 13.95 points to 9,584.79, the FBM70 Index advanced 47.52 points to 9,377.18 and the FBM ACE index rose 32.93 points to 3,749.36.

Turnover declined to 922.100 million shares worth RM1.718 billion compared to Thursday's 1.075 billion shares valued at RM1.87 billion.

Advancers outnumbered decliners by 394 to 325 while 291 counters were unchanged, 352 untraded and 35 others suspended. -- Bernama

Naza?s TTDI Metropolis, Jetson terminate shareholders? agreement for Matrade project

KUALA LUMPUR: The Naza Group's TTDI KL Metropolis Sdn Bhd (TKLM) has terminated the shareholders' agreement with KUMPULAN JETSON BHD [] to build a new trade exhibition centre for the Malaysia External Trade Development Corporation (Matrade) on a joint-venture basis.

Jetson said on Friday, Sept 3 the termination arose from disagreements on certain commercial terms relating to the project costs for the Matrade centre in Jalan Dutamas which was expected to cost RM628 million.

It said TKLM and the company had on Aug 30 disputed certain commercial terms. TKLM then proposed they call off the joint venture, without recourse to either party.

The project was to be undertaken through TTDI Jetson Sdn Bhd ' a joint venture between TTDI KL Metropolis and Jetson.

'On Sept 3, 2010 citing the non-receipt of an unequivocal response from the company in relation to such commercial terms, TKLM issued the notice of termination,' Jetson said in the statement to Bursa Malaysia on Friday.

Naza TTDI is part of the Naza group now helmed by sons of the late Tan Sri SM Nasimuddin SM Amin ' Sheikh Mohd Nasarudin and his brother Sheikh Mohamad Faliq Sheikh Mohamad Nasimuddin Kamal.

The Naza brothers took over Jetson in August last year.

To recap, in March 2007, Naza TTDI had proposed to the government to build a new trade exhibition centre for Matrade.

The original plan was that in exchange for a new Matrade Centre, the JV would develop a 62.5-acre piece of leasehold land.'' TTDI Jetson would then award Jetson the contract to build the Matrade Centre.

The plan was to build residences, offices, a shopping mall and a hotel over the next 10 years. Its gross development value is estimated to be RM15 billion.

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EON Cap: Judge to deliver decision on certain applications on Monday

KUALA LUMPUR: EON CAPITAL BHD [] said the High Court judge has fixed Monday, Sept 6, for the delivery of his decision on certain interlocutory applications filed by the parties to a petition.

'The learned judge has also fixed Sept 6, 2010 for the hearing of other interlocutory applications filed by the said parties and the continued hearing of the summons for directions,' EON Cap said on Friday, Sept 3.

Primus (Malaysia) Sdn Bhd had filed a law suit against the board members and certain shareholders of EON Capital Bhd (EONCap).

The suit was to seek various court declarations and orders as well as some RM1.12 billion in damages from EONCap directors should HONG LEONG BANK BHD [] (HLBB) succeed in acquiring EONCap's assets and liabilities.

A total of 13 respondents were named in Primus' petition, including EONCap. Ng Wing Fai, who is a Primus representative on EONCap's board, is the only director not named in the suit.

AZRB files suit against Saudi?s Alfaisal University for liquidating RM43.94m bonds

KUALA LUMPUR: AHMAD ZAKI RESOURCES BHD [] (AZRB) has initiated legal actions against Saudi Arabia's Alfaisal University over the latter's decision to liquidate the performance and advance bonds totalling 52.56 million riyals (RM43.94 million).

AZRB said on Friday, Sept 3 that the dispute arose over the contract agreement with the university for the Alfaisal University campus development project, phase one and two, in Riyadh.

It said that on Aug 23, Alfaisal University sent a letter to AZRB alleging a breach in the performance of the contract, which was strongly disputed by AZRB.'' On Sept 1, the university unilaterally liquidated the performance and advance bonds.

'The board views that the action of liquidating the bonds is equivalent to a breach of contract on the part of Alfaisal University. AZRB has initiated legal actions against Alfiasal University to protect and defend the interests of AZRB,' it said.

Mudajaya surges to near 4-week high

KUALA LUMPUR: Shares of Mudajaya Corp'' Bhd, which recently came under scrutiny over its Indian independent power project, saw the share price rally to a near four-week high of RM4.48 in late trade on Friday, Sept 3.

Its share price surged 53 sen to RM4.48 with 9.65 million shares done, as interest in the stock was also spurred by a share buyback.

Mudajaya's share price and trading volume surged in the last 30 minutes of trade. At 4.31pm, it was trading at RM4.17, up 22 sen with 5.47 million shares done. Late buying saw the share price surge another 31 sen to RM4.48 while total volume nearly doubled to 9.65 million shares.

Mudajaya also disclosed that it had bought back 100,800 shares for a total of RM394,584 at prices ranging from RM3.86 to RM3.90.

PacificMas seeks govt nod for Pacific Insurance sale to Fairfax

KUALA LUPUR: PACIFICMAS BHD [] has sought the authorities' approval to enter into a definitive shares sale agreement with Fairfax Asia Ltd to dispose of its stake in The Pacific Insurance Bhd.

PacificMas said on Friday, Sept 2 that it had submitted an application to Bank Negara Malaysia for the approval of the Minister of Finance, under Section 67 of the Insurance Act 1996.

This was the latest development in PacificMas' plan to dispose of its insurance unit.

It had on Aug 27, informed Great Eastern Group of its intention to discontinue negotiation with Great Eastern on the proposed disposal of the insurance unit.

UK Aug services PMI falls to 16-month low

LONDON: British service sector activity grew last month at its slowest pace since April 2009, with a marked fall in hiring as employers worried about an economic slowdown and public spending cuts, a survey showed on Friday, Sept 3.

The headline Markit/CIPS services purchasing managers' index dropped to 51.3 in August from July's 53.1, a much sharper fall than the decline to 52.9 forecast in a Reuters poll.

The downbeat services reading follows bigger-than-expected falls in the PMIs for manufacturers and CONSTRUCTION [], though all are still above the 50 line that divides growth from contraction.

Markit said the three surveys suggested that British GDP growth slowed to 0.5 percent in the third quarter from a nine-year high of 1.2 percent the quarter before.

"While a double dip recession remains unlikely, the survey suggests that the risk has increased and that growth looks set to be slow and choppy going forward," said Markit chief economist Chris Williamson, in similar language to that used last month by finance minister George Osborne.

Almost all private sector economists believe the previous quarter's exceptional growth was a one-off caused by weather-related disruption in the first quarter, and the key question is how fast growth slows thereafter.

A stalling recovery in the United States and hefty public spending cuts in Britain and most of the euro zone mean many economists expect quarterly growth to slow to well below a trend rate of around 0.5 percent.

These fears have spread to the service sector companies in the PMI survey, which excludes retailers and public sector employers but not businesses reliant on government work.

The services PMI expectations component has barely risen from the 15-month low hit in June, and the employment component fell sharply to 46.9 from 49.7, touching a 10-month low. New business came in at its slowest pace since June 2009.

"Worries over the impact of government spending cuts and the scheduled rise in VAT early next year continued to undermine sentiment," Markit said.

Osborne plans to raise value-added tax on most goods and services to 20 percent in January from its current rate of 17.5 percent, on top of budget cuts of 25 percent to most government departments over the next four years.

However, the survey brings good news for the Bank of England, which hopes the weak economic environment will enable inflation to fall back to its 2 percent target without the need for interest rate rises.

Competitive pressures and discounts to boost sales meant firms barely raised prices in August, with the increase the smallest since April. This was despite higher wage and utility bills causing firms' costs to rise at their fastest since May.

IT and computing was the strongest sector in August, while indices for the larger 'business services' category declined. - Reuters

K-Star top loser, thin trade

KUALA LUMPUR: K-Star Sports Ltd top loser in late afternoon trade on Friday, Sept 3 on some light profit taking after recent run-up in tandem with other Chinese stocks.

At 3.36pm, it is down 27 sen to RM1.73 with 5,100 shares done. On Aug 25, company said it was exploring the possibility of dual listing in a foreign exchange and raising funds from the capital market to expand its group's business.

The 30-stock FBM KLCI is down 6.28 points to 1,434.25. Turnover is 658.19 million shares valued at RM1.12 billion. There were 232 gainers, 329 losers and 300 stocks unchanged.

Heavyweights Genting fell 27 sen to RM9.21 with 4.6 million shares done, Sime Darby lost 13 sen to RM8.29 with 2.54 million units done.

Ringgit at 13-year high; c.banks cap baht, won gains

SINGAPORE: The Malaysian ringgit hit a new 13-year peak on Friday, Sept 3 buoyed by the country's stronger-than-expected exports, while central banks in South Korean and Thailand intervened to cap gains in their currencies.

Asian stocks rose while the euro and other high-yielding currencies were supported by an improvement in U.S. housing and jobless claims data, as the market's focus turned to all-important U.S. nonfarm payrolls numbers expected at 1230 GMT.

RINGGIT

Malaysian ringgit gained a quarter of a percent to a 13-year high of 3.1190 per dollar after data late on Thursday showed Malaysia's exports rose a stronger-than-expected 13.5 percent in July from a year earlier.

The market shrugged off the central bank's decision Thursday to keep interest rates steady because the decision had been expected.

Traders expect the ringgit to move between 3.10-3.12 on Friday, ahead of U.S. nonfarm payrolls.

The ringgit has been supported by fund inflows into the country and strong July export numbers showed a firmer ringgit has not affected demand, analysts say.

Ringgit has gained 9.6 percent against the dollar this year to make it the region's top performer after Japanese yen.

At 3.14pm, the ringgit was at 3.1217 against the greenback.

SINGAPORE DOLLAR

The Singapore dollar hovered near 1.3470 per dollar after hitting a record high of 1.3443 overnight.

The Monetary Authority of Singapore (MAS), the island's central bank, refrained from intervening after being spotting buying U.S. dollar overnight to cap the local unit.

"There is no sign of MAS in the market as Singapore dollar is trading at the strong side of its NEER, signalling its tolerance of firmer currency. Though market may be tempted for further USD shorts, it will be cautious in light of today's NFP data," said Suresh Ramanathan, strategist at CIMB.

WON

The won gained nearly 0.6 percent to a two-week high at 1,174 per dollar as the authorities were spotted buying dollars in the market to tap the won't rally.

Won was supported by foreign investment in local stocks as worries eased about a serious slowdown in the U.S. economy.

U.S. August payrolls data later on Friday is also causing some caution in dealing.

"Few will push up the won more after experiencing intervention. The authorities may step in the market again," said a foreign bank dealer.

Seoul shares <.KS11> were up 0.2 percent as foreigners bought a net 87.3 billion won in local shares.

BAHT

Thai baht hit a 29-month high, prompting Bank of Thailand to intervene.

"The dollar sell-off resumes after the passive comments by Thai officials attending the government meeting on the baht strength yesterday. It has ranged 31.13 to 31.16 with many BOT agents seen actively bidding for dollars at all these levels," a Bangkok-based trader said.

The baht has gained nearly 7 percent against the dollar this year. - Reuters

Samsung raises 2010 smartphone sales target-report

SEOUL: Samsung Electronics Co Ltd, the world's No.2 handset maker, expects to sell up to 25 million smartphones this year, exceeding its earlier target, and aims to double shipments next year, media reports said on Friday, Sept 3.

JK Shin, head of Samsung's Mobile Communications division, told reporters at the IFA trade show in Berlin that its 2010 smartphone sales would be far higher than its original target of 18 million units, due to the popularity of its Android-based Galaxy S model, news provider EDaily said.

The report also quoted Shin as saying the company had targeted sales of 50 million units for next year.

"Our smartphone shipments will easily surpass 20 million units this year, thanks to strong sales of recently released Galaxy S... We expect the number could rise to as high as 25 million this year," Shin said.

Samsung, which had said earlier it would treble smartphone sales this year to 18 million units, in June unveiled Galaxy S, its answer to Apple's popular iPhone and its first smartphone sold globally through some 100 carriers, and sold more than 3 million sets.

A Samsung spokesperson in Berlin was not immediately available for comment.

"Galaxy S is definitely opening the smartphone sector for Samsung Mobile... It's overperforming our expectation," YH Lee, head of marketing at Samsung Mobile, told Reuters in Berlin on Thursday.

Samsung, a laggard in the booming smartphone market, does not plan to introduce new models to replace Galaxy S during the hot holiday season later this year, hoping for strong sales of the model to continue.

But some investors are concerned that a lack of next line-up may hit the company as rivals prepare to introduce upgraded models.

Samsung trails behind Nokia, Research In Motion, Apple and HTC in the fast growing smartphone market and had a 4.8 percent market share last quarter, according to research firm IDC.

Shin also said the company aims to sell 1 million units of its new tablet PC Galaxy Tab this year, local reports said. Samsung unveiled the 7-inch, Android-based tablet PC at the IFA event to challenge Apple's hot-selling device iPad.

Shares in Samsung fell 0.3 percent as of 0505 GMT, versus a 0.1 percent rise in the broader market. - Reuters

HDBSVR: RM36b mass rapid transit to transform local construction landscape

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) expects the RM36-billion mass rapid transit (MRT) to drive the CONSTRUCTION [] sector, once it is approved and takes off.

The research house said the probability of it being approved is high as the recent subsidy cuts suggest political will.

A key turning point could be the outcome of two consultant studies in mid-September. This project could see Gamuda's orderbook double and MMC's triple, but all contractors will benefit given its sheer size.

'In terms of sum-of-parts accretion, we expect additional 26 sen per share for Gamuda and 17 sen for MMC. The MRT project also ties in with another anchor market theme ' government land sales. We expect MRCB's participation in the 3,400-acre RRIM land to give it pricing power beyond our assumption of RM300 psf,' it said.

Hwang DBS Vickers Research said the 10th Malaysia Plan (10MP) tabled in June 2010 has at least set the foundation for the rollout of key projects.

'There is emphasis on upgrading the country's transportation system with projects including seven new highways, LRT extensions, MRT and southern double tracking worth a total of RM71 billion.

'A total of 52 public-private projects (PPP) worth RM62.7bn were also identified. There is also a RM20 billion fund established to facilitate private sector investments in projects with high strategic value and multiplier effects,' it said.

HDBSVR said the sector will ultimately be driven by newsflow, but it expects more emphasis on margin recovery to monitor execution risks.

The research house expects stronger margin recovery in 2HCY10, and normalising to 9-10% in FY11; IJM is a candidate with zero legacy jobs in its orderbook currently.

From January 2007 to September 2008 ' about when 9MP projects were rolled out - the KL Construction Index traded up to 24 times price-to-earnings and 2.2 times price/net tangible asset (+2SD above mean) vs mean valuations now.

'And in anticipation of more aggressive rollout of high multiplier projects, the KL Construction Index has room to trade higher and possibly test 2007/2008 highs,' it said.

HDBSVR said its high conviction picks for the sector are Gamuda and MRCB ' the two largest beneficiaries of the MRT project.'' Its recent initiation on MMC is also an alternative MRT proxy.

'We are also positive on Gamuda's Vietnam project that is slated for maiden launch in October. Our other BUYs are IJM as the safest proxy to the sector given its diversified earnings base and strategy to bid for a large pool of contracts, while WCT remains the proxy most leveraged to the sector. Our small cap value pick is Sunway which is trading at only 10 times CY11 EPS and will post record FY10 earnings,' it said.

FBM KLCI remains in the red, Genting, Sime weigh

KUALA LUMPUR: The FBM KLCI fell on Friday, Sept 3 as gains at most Asian markets were capped ahead of the US non-farm payroll data while investors closing out positions due to the three-day weekend in the US as the country observes the Labour Day holiday next Monday.

August non-farm payrolls are forecast to decline by 100,000, according to Reuters. In July, they fell 131,000.

At 12.30pm, the FBM KLCI fell 8.01 points to 1,433.06, dragged down by losses in Genting, Sime Darby, Maybank and PLUS. Losers beat gainers by 326 to 281, while 267 counters traded unchanged. Volume was 489.79 million shares valued at RM768.53 million.

''

Nikkei 225 +0.21% 9,081.98 Hang Seng Index +0.08% 20,886.43 Taiwan's Taiex +1.36% 7,825.67 South Korea Kospi +0.09% 1,777.35 Shanghai Composite Index
-0.46% 2,643.50 Singapore Straits Times Index -0.20% 2,980.83 ''

Very actively traded counters were hard disk drive manufacturer JCY International, which saw 27.4 million shares done, and also property-related companies with interests in Iskandar Malaysia including MRCB, Tebrau and UEM Land.

Nestle was the top loser at the mid-day break, falling 28 sen to RM40.20; Genting fell 26 sen to RM9.22, Sime Darby down nine sen to RM8.33, Maybank and PLUS lost six sen each to RM8.44 and RM4.07, while Telekom fell five sen to RM3.39.

Petronas Dagangan fell 18 sen to RM11.42, KLCCP'' lost 12 sen to RM3.31, UMW down 11 sen to RM6.77 while KFCH lost 10 sen to RM11.18.

Among the gainers, Hai-O added 290 sen to RM3.23, Guinness rose 14 sen to RM8.24, Mintye and Berjaya Land up 12 sen each to RM1.20 and RM4.44, and MRCB and Boustead up 11 sen each to RM1.87 and RM4.50.

Proton rose 10 sen to RM4.76 while JT International and Mamee added nine sen each to RM5.65 and RM3.35.

JCY extending its rebound for the second day after the recent selldown. The stock gained eight sen to RM1.13.

JCY rebound continues

KUALA LUMPUR: Shares JCY International extended its rally for the second day on Friday, Sept 3 after encouraging remarks from CIMB Research about the outlook for the shares of the hard-disk drive manufacturer.

At 11am, JCY was up 10 sen to RM1.15 with 22.86 million shares done while JCY-CB added 0.5 sen to 4.5 sen.

The FBM KLCI fell 8.13 points to 1,432.94. Turnover was 333.8 million shares valued at RM466.44 million.'' There were 238 gainers, 274 losers and 227 stocks unchanged.

JCY's share price rebounded on Thursday after CIMB Research said the recent selldown was unjustified and instead viewed this as an opportunity to accumulate the shares. The share price had been battered down and it fell to a fresh historic low on Wednesday.

CIMB Research continued to rate the stock an OUTPERFORM with an unchanged target price of RM1.88, still based on 12.0 times CY11 P/E.

'Potential catalysts for the stock include (1) turnaround of the hard disk drive sector, (2) more meaningful contributions from Hitachi and Samsung, and (3) positive news on its successful penetration into Toshiba,' it said.

''

MRCB leads property stocks up, active

KUALA LUMPUR: MRCB led property stocks higher in late morning trade on Friday, Sept 3, especially companies with development projects in Iskandar Malaysia.

At 11.10am, MRCB rose eight sen to RM1.84 with 16.46 million shares done. Tebrau Teguh added 2.5 sen to 72.5 sen while UEM Land gained three sen to RM1.87.

E&O advanced four sen to RM1.14.

However, the FBM KLCI fell 8.29 points to 1,432.78 on profit taking of big capitalised stocks. Turnover was 354.74 million shares valued at RM510.82 million. There were 247 gainers, 282 losers and 237 stocks unchanged.

Meanwhile, OSK Research said it believes a major mass housing boom will likely occur in the first half of this decade.

In a research note issued on Friday, Sept 3, it said 'we are in the early stage of a property 'super cycle' led mainly by mid-to-high end landed PROPERTIES [] which may peak sometime in 2012/13 and followed by a potential slump'.

It said stocks with focus in the mid-to-high end segment are the best bets for investors in the next 12 months.

Although the expected peak in 2012/13 may have dire consequences, the phenomenal boom that immediately precedes it gives investors an excellent opportunity to profit from the trend for at least the next 12 months.

'We therefore seize the opportunity to upgrade our property sector call to OVERWEIGHT from NEUTRAL,' it said.

FBM KLCI slips on profit taking

KUALA LUMPUR: The FBM KLCI snapped its winning streak and fell into negative territory on Friday, Sept 3 as the market took a breather, despite earlier expectation that the benchmark index would rise in tandem with key regional bourses.

At 10am, the FBM KLCI slipped 5.98 points to 1,435.09, weighed by losses including at Genting, Petronas Dagangan and UMW.
Gainers led losers by 188 to 177, while 211 counters traded unchanged. Volume was 188.85 million shares valued at RM252.37 million.

A majority of the Asian indices advanced after more encouraging data from the US reassured investors about the state of the global economic recovery and sparked short-covering.

But gains are likely to be capped by wariness ahead of closely-watched US August non-farm payrolls data later on Friday, as well as investor concern about whether the recent rush of upbeat indicators signals a true recovery or not, according to Reuters.

Data from the National Association of Realtors showed pending US home resales rose unexpectedly in July and a separate report showed new claims for unemployment insurance fell for a second straight week.

The figures came on the heels of strong US manufacturing data on Wednesday that, along with good Chinese manufacturing data and stronger-than-expected growth in Australia, have eased, for now, investor fears about the strength of the global economic recovery, said Reuters.

Japan's Nikkei 225 was 0.38% to 9,097.63, Hong Kong's Hang Seng gained 0.08%to 20,885.13, Taiwan's Taiex rose 0.95% to 7,793.87, the South Korean Kospi was up 0.34% to 1,781.87, Singapore's Straits Times Index rose 0.16% to 2,991.55 but the Shanghai Composite Index shed 0.32% to 2,647.41.

On the outlook for the FBM KLCI, RHB Research Institute Sdn Bhd said that technically, the FBM KLCI has continued to show signs that it could undergo a mild retracement soon, following the'' formation of a 'hangman' candle and the grossly overbought short-term momentum readings yesterday.

However, as long as it can sustain at above the 10-day SMA of 1,411, the 1,400 psychological level and the crucial turning point of 1,390, the current uptrend was still intact, it said.

'In our opinion, any pullback is still considered healthy, as this will neutralise the overbought momentum on the FBM KLCI, paving the way for another rally on'' renewed buying support.

'And even if the heavyweights were to take a breather on constant profit-taking activities, we still expect the broader market sentiment to stay upbeat, on the'' back of solid rotational plays on other second and third liner stocks, with increased daily participants in the near term,' it said in a note Sept 3.

Having said that, RHB Research said the local trading sentiment would still be influenced by the volatile regional markets' performance in the near term.

On Bursa Malaysia, Genting was the top loser at mid-morning and fell 23 sen to RM9.25; Petronas Dagangan lost 20 sen to RM11.40, Nilai fell 15 sen to 65 sen,

Padini and UMW lost nine sen each to RM4.24 and RM6.79, while KFCH fell eight sen to RM11.20.

The top gainer was Hai-O that rose 17 sen to RM3.20. Berjaya Land added 13 sen to RM4.45, Daibochi and JCY International gained 11 sen each to RM3.10 and RM1.16, and GUINNESS ANCHOR BHD [] added 10 sen to RM8.20.

Meanwhile, HELP, Mamee, Proton and MRCB gained eight sen each to RM3.98, RM3.34, RM4.74 and RM1.84, respectively.

JCY was the most actively traded stock with 19.83 million shares done. Other actives included KNM, Timecom, MRCB, UEM Land and E&O.

FBM KLCI opens lower

KUALA LUMPUR: The FBM KLCI slipped into the red in early traded on Friday, Sept 3, weighed down by losses at key blue chips including UMW, RHB Capital, Genting and Genting Malaysia.

At 9.05am, the benchmark index fell 2.33 points to 1,438.74 on some mild profit taking due to the overbought technical condition of blue chips. Gainers led losers by 99 to 38, while 79 counters traded unchanged. Volume was 27.54 million shares valued at RM23.76 million.

Among the early decliners, UMW fell eight sen to RM6.80, RHB Capital and Genting lost six sen each to RM6.80 and RM9.42, Supermax fell five sen to RM5.05, while Encorp, Genting Malaysia and AirAsia fell four sen each to 96 sen, RM3 and RM1.85.

Bejaya Land was the top gainer and was up 16 sen to RM4.48; Aeon added 12 sen to RM5.38, Orient up nine sen to RM5.26 while JCY gained eight sen to RM1.13. Other gainers included Mamee, HSL, Tan Chong, PPB and Notion Vtec.

CIMB Research Overweight on flexible packaging stocks

KUALA LUMPUR: CIMB Research said investors looking for a cheaper alternative to the small-cap food and beverage (F&B) sector can opt for flexible packaging stocks such as Daibochi and Tomypak which derive some 90% of their revenue from the F&B sector.

'These stocks are trading at only 5 .0 times to 8 times CY11 P/E even though YTD, the share prices of the F&B and packaging stocks in our small-cap coverage have shot up 65% on average compared to 9.6% for the FTSE Bursa Small Cap Index,' it said.

The research house said on Friday, Sept 3 that'' Daibochi and Tomypak also offer attractive gross dividend yields of 5% to 7%. In addition, these two companies pay dividends on a quarterly basis.

'We continue to rate these stocks Buys and maintain our earnings forecasts and target prices of RM4.60 for Daibochi (12.0 times CY11 P/E or a 20% discount to 15 times target market P/E) and RM1.98 for Tomypak (8.4 times CY11 P/E or a 30% discount'' to Daibochi's 12 times target P/E),' it said.

Oriental Holdings' shares up in early trade

KUALA LUMPUR: The share price of ORIENTAL HOLDINGS BHD [] rose on Friday, Sept 3 after The Edge Financial Daily reported that the company's net cash position hit a record RM1.93 billion as at June 30, 2010, an increase of more than 100% from RM944.68 million as at Dec 31, 2006.

At 9.15am, Orient was up 11 sen to RM5.28 with 23,600 shares traded.

PPB up on mill expansion plan

KUALA LUMPUR: PPB GROUP BHD []'s shares advanced on Friday, Sept 3 after the company said'' it was expanding its flour and feed milling division.

At 9.20am, PPB was up six sen to RM17.46 with 2,100 shares traded.

PPB said it would set up an additional flour mill each in Indonesia and Vietnam with an investment of about US$50 million (RM156.5 million).

#Stocks to watch:* Sunway City, Three-A Resources, Oriental Holdings, PPB

KUALA LUMPUR: Key Asian markets are expected to extend their upward trend on Friday, Sept 3 as investors' confidence is bolstered by the latest US data that it would avoid a double-dip recession.

On Wall Street, the Dow Jones industrial average added 50.63 points, or 0.49%, to 10,320.10. The Standard & Poor's 500 Index rose 9.81 points, or 0.91%, to 1,090.10. The Nasdaq Composite Index gained 23.17 points, or 1.06%, to close at 2,200.01.

Stocks to watch on Friday include SUNWAY CITY BHD []''(SunCity), THREE-A RESOURCES BHD [], ORIENTAL HOLDINGS BHD [] and PPB GROUP BHD []. Other stocks to watch are banks including AMMB HOLDINGS BHD [], LINEAR CORPORATION BHD [], JCY International Bhd, SILVER BIRD GROUP BHD [] and ETI Tech Bhd

SunCity has proposed to acquire a 45% stake in theme park operator Sunway Lagoon Sdn Bhd (SLSB) for RM128.57 million and raise its shareholding to 96%.

SunCity, which owns 51% of SLSB, said it was acquiring the shares from Datuk Lim Say Chong and Oh Kim Sun respectively. 'By owning 96% of SLSB and with the same management effort, SunCity will have greater share of the future earnings of SLSB group,' it said

The Edge FinancialDaily reports that Oriental Holdings which is not on the radar screens of most analysts and fund managers, saw its net cash position hitting a record RM1.93 billion as at June 30, 2010, an increase of more than 100% from RM944.68 million as at Dec 31, 2006.

As for PPB Group Bhd, it is expanding its flour and feed milling division. It will set up an additional flour mill each in Indonesia and Vietnam with an investment of about US$50 million (RM156.5 million).

InsiderAsia, in its analysis, says Three-A Resources' (RM1.80) expansion plans, both local and overseas, remain on track. 'Completion of the new manufacturing facilities will support growth over the next few years. Thus, we remain upbeat on the company's longer-term prospects and believe patient investors would be rewarded,' it said.

AMMB Holdings Bhd said it would not cut profit margins to gain market share in the mortgage business.

"Competition is key but we are not one of those that offer cut-throat rates to get the business. We are cautious on the profitability," said group managing director Cheah Tek Kuang.

On Thursday, Linear Corporation's share price rallied to a more than two-month high of 15 sen, as investors' sentiment in the Practice Note 17 company perked up with the entry of a white knight.

The Edge Financial Daily reported three new directors were appointed to help turn around the company. They are Datuk Ling Keak Ming, independent and non-executive director; Lim Hun Beng, non-independent and non-executive director; and Adam Bin Bachek, independent and non-executive director were appointed yesterday

JCY International's share price rebounded on Thursday after CIMB Research said the recent selldown was unjustified and instead viewed this as an opportunity to accumulate the shares.

CIMB Research continued to rate the stock an OUTPERFORM with an unchanged target price of RM1.88, still based on 12.0 times CY11 P/E.

'Potential catalysts for the stock include (1) turnaround of the hard disk drive sector, (2) more meaningful contributions from Hitachi and Samsung, and (3) positive news on its successful penetration into Toshiba,' it said.

RAM Ratings has reaffirmed the A2 rating of SILVER BIRD GROUP BHD [ ]'s'' RM70 million Serial Bonds (2005/2012), as well as the A2/P2 ratings of its RM30 million commercial papers/medium-term notes programme (2005/2012). However, the ratings agency maintained the negative outlook on the long-term ratings.

In ETI Tech, its director Dennis Chuah sold 2.11 million shares at 28 sen each on Aug 30, reducing his stake to 14.89% or 101.39m shares.

AmResearch: Sunway Lagoon acquisition strategic move, but minimal impact on SunCity earnings

KUALA LUMPUR: AmResearch says Sunway City's (SunCity) plan to buy an additional 45% stake in Sunway Lagoon Sdn Bhd (SLSB) for RM129 million as a strategic move to strengthen its earnings.

It said on Friday, Sept 3 that while impact to SunCity's earnings should be minimal in FY10, it estimates this exercise would provide an uplift of about 16% to its'' EPS in FY11F.

'We understand that the take-up rate for South Quay's latest offering - i.e. the condominium development called 'A'Marine' - has reached 70% from 50% previously with average pricing of RM500psf,' it said.

However, AmResearch said demand for Bayrocks bungalow remains subdued at 40%. SunCity launched RM966 million worth of PROPERTIES [] in the 1HFY10. Going forward, the group will be launching RM800 million worth of properties in 2HFY10 - including Sunway VeloCity.

'On the flipside, this quarter will see the final contributions from its assets - as Sunway City REIT was recently listed in early July. We are putting our HOLD recommendation and fair value under review with a downside bias - pending a meeting with the management,' it said.

Murdoch: Global economy is still not out of turmoil

NEW YORK: News Corp Chief Executive Rupert Murdoch said the global economy is still in an uncertain state and the media industry is going through a fundamental transformation that is unpredictable

"I do not believe we are out of the turmoil yet. Sovereign debt pressures, soaring deficits and unacceptable U.S. unemployment levels are key obstacles to the global economic recovery," said Murdoch in a letter to shareholders in his company's annual report published on Thursday, Sept 2.

"Others may see more positive signs, but I believe until these issues are addressed, markets, governments, currencies and consumer behavior will be unpredictable," he said.

Murdoch was bullish about how his company, which owns the Fox TV networks, newspapers like the Wall Street Journal and Hollywood studio Twentieth Century Fox, had navigated both the difficult economic environment and threat to traditional content business models by new Web-based services from companies like Netflix Inc and Apple Inc.

He highlighted successes for the company including convincing cable operators to pay retransmission fees for its free-to-air Fox broadcast networks and the record-breaking 3D movie Avatar, now the biggest-selling movie of all time.

"I am only half joking when I wonder if there is anyone left on this planet who has yet to see Avatar," he said in the letter.

Murdoch described the 700 pence per share offer for the 61 percent of BSkyB it does not already own as "attractive" and a "logical and disciplined plan."

Under Murdoch's drive News Corp units have been pushing to seek new business models which embrace TECHNOLOGY [] like e-readers and tablets like Apple's iPad.

News Corp's Fox and Walt Disney Co's ABC broke with other major TV studios on Wednesday to strike a deal to launch a new 99-cent rental service for Apple TV.

"Companies that do not innovate will struggle to survive," wrote Murdoch. "They will be digitally disoriented, quickly losing touch with their customers, who will be more technologically literate than those who seek to provide them with services and products."

Shares of News Corp have fallen around 3.4 percent since the start of the year.- Reuters

HLG Research: Buying interest in big caps to continue

KUALA LUMPUR: HLG Research said as there were no surprises from Wall Street and Bank Negara's monetary policy meeting, there may be continued buying interest in large cap issues to spur further in FBM KLCI towards 1,450 on Friday, Sept 3.

It said the buying would be led by local institutions and foreign portfolio funds.

On Thursday, Bank Negara maintained the overnight policy rate at 2.75% and the central bank also provided a cautiously optimistic 2H outlook.

HLG Research said nevertheless, ahead of the key US August's jobs and ISM services reports late Friday, compounded by the more overbought technical condition of blue chips and the KLCI, further rise should see stronger profit taking corrections.

'Meanwhile, a break above the 1,450 will witness more upside at 1,472 (76.4% FR from top 1525 and low of 1300). Major support levels are situated around 1,416 (5-day SMA), 1,408 (10-day SMA) and 1,385 (20-day SMA).

For Dow Jones, should the key economic data released late Friday are in line with forecast, 'we will witness further relief rally over the next few days, supported by the rising momentum and trend indicators coupled with the short-covering rally'.

OSK Research sees major mass housing boom in 1H of 2010-2020

KUALA LUMPUR: OSK Research believes a major mass housing boom will likely occur in the first half of this decade.

In a research note issued on Friday, Sept 3, it said 'we are in the early stage of a property 'super cycle' led mainly by mid-to-high end landed PROPERTIES [] which may peak sometime in 2012/13 and followed by a potential slump'.

It said stocks with focus in the mid-to-high end segment are the best bets for investors in the next 12 months.

Although the expected peak in 2012/13 may have dire consequences, the phenomenal boom that immediately precedes it gives investors an excellent opportunity to profit from the trend for at least the next 12 months.

'We therefore seize the opportunity to upgrade our property sector call to OVERWEIGHT from NEUTRAL,' it said.

Stocks rise on upbeat data; payrolls in focus

NEW YORK: Stocks and oil rose while U.S. Treasuries fell on Thursday, Sept 2''as U.S. data showed the world's largest economy did not appear to be falling back into recession.

But investors were looking ahead to Friday's August U.S. employment report for clues on the recovery outlook.

The euro rose against the dollar, supported by healthy results at Spanish and French bond auctions and stable global equities. The dollar slipped against other major currencies as the upbeat economic data boosted risk appetite.

U.S. Treasury debt prices fell as strength on Wall Street undermined the safe-haven appeal of government debt.

A string of grim economic figures last month ignited fears that the U.S. economy could slip back into recession. But Wednesday's rally capped concerns that some deem overblown.

"Money seems to be flowing out of bonds and into the stock market," said Ryan Detrick, senior technical strategist at Schaeffer's Investment Research in Cincinnati.

"Obviously, tomorrow comes the big news with the employment data. But in the near term, it shows how explosive rallies can be when we get decent economic data, because the market is pricing a double-dip recession."

The Dow Jones industrial average added 50.63 points, or 0.49 percent, to 10,320.10. The Standard & Poor's 500 Index rose 9.81 points, or 0.91 percent, to 1,090.10. The Nasdaq Composite Index gained 23.17 points, or 1.06 percent, to close at 2,200.01.

About 6.6 billion shares traded on the New York Stock Exchange, the Nasdaq and the American Stock Exchange, about average for the past month but still way below last year's daily average of 9.65 billion. Volume is typically light in the days just ahead of the Labor Day holiday weekend.

The housing and labor markets have long been considered two of the biggest headwinds for the economic recovery. Friday's payrolls report is expected to show about 100,000 jobs were lost in August.

World stocks hit a two-week high as optimism from strong U.S. and Chinese manufacturing data extended into a second day.

The FTSEurofirst 300 index of top European shares ended flat as investors took a breather after the previous session's jump, while recently hit CONSTRUCTION [] stocks extended their recovery, aided by the positive U.S. data.

The benchmark index, which surged 2.9 percent on Wednesday following strong manufacturing data from the United States and China, is still down 2.1 percent from a peak in early August.

Markets showed little reaction to Thursday's decision by the European Central Bank to keep interest rates on hold at a record low of 1 percent, as expected, amid tepid economic recovery and persistent concerns about the banking sector.

Comments from European Central Bank President Jean-Claude Trichet had limited impact on the euro. The euro was up 0.09 percent at $1.2823 from a previous session close of $1.2811, supported by healthy results at Spanish and French bond auctions.

France and Spain sold 12.2 billion euros of bonds, with the average yield on the 5-year Bono dropping at auction and the paper easily absorbed as the yield fell after the tender.

Against the Japanese yen, the dollar was down 0.13 percent at 84.31 from a previous session close of 84.420.

The focus now is on the U.S. Labor Department's widely watched monthly employment report, with analysts predicting non-farm payrolls fell for a third straight month in August.

Currency markets are not paying too much attention "to anything but the jobs number tomorrow," said Greg Salvaggio, vice president of trading at Tempus Consulting in Washington.

U.S. Treasury debt prices fell as investors took profits from a recent hefty bond rally and ahead of the jobs report.

The benchmark 10-year U.S. Treasury note was down 13/32, its yield at 2.6267 percent. The 2-year U.S. Treasury note was unchanged, its yield at 0.502 percent. The 30-year U.S. Treasury bond was down 37/32, with the yield at 3.7124 percent.

U.S. crude oil rose 1.56 percent to $75.06 a barrel supported by an oil platform fire in the Gulf of Mexico and Hurricane Earl's possible impact on East Coast refineries. Spot gold prices rose $6.95, or 0.56 percent, to $1250.80. - Reuters

Asia Bioenergy proposes up to 30% placement

KUALA LUMPUR: TECHNOLOGY [] incubator Asia Bioenergy Technologies Bhd has proposed a private placement of up to 118 million shares of 10 sen each, representing up to 30% of the enlarged paid-up capital, to third-party investors to be identified and at an issue price to be determined later.

In a statement on Sept 2, Asia Bioenergy said the placement may be done in tranches depending on the prevailing market conditions and interest from the investors.

It said the issue price would be based on the weighted average market price for the five market days immediately prior to the price fixing date, with a discount of not more than 10%.

It proposes to use the proceeds for its core business in technology incubation programme, which involves investing in, nurturing and assisting its incubatees in the market place.

INS proposes China JV for health drinks

KUALA LUMPUR: INS BIOSCIENCE BHD [] has proposed a joint venture with a China-based company in Guangzhou to distribute the group's wheatgrass canned drinks and healthy drinks series in that country.

In a statement, INS said its subsidiary Hopematic Sdn Bhd (HSB) had on Sept 1 inked a joint-venture agreement with Guangzhou YiXin Trade Co, Ltd to market HSB's drinks in China via the proposed JV company, Guangzhou YiXi Drinks Co, Ltd.

The JV, which will be 60% owned by INS, is valid for 30 years.

INS said YiXin was a leading marketing and distribution company in China, with an established marketing and distribution network of internationally established hypermarkets as well as established domestic supermarkets. It deals in fast-moving consumer products.

AmFIRST REIT undertakes further acquisitions

KUALA LUMPUR: Mayban Trustees Bhd (MTB) has proposed to acquire a parcel of land with a five-storey office building in Jalan Teknokrat 7, Cyberjaya from FSBM HOLDINGS BHD [] for RM51.5 million cash, to be injected into AmFirst Real Estate Investment Trust (AmFIRST REIT).

In a statement on Sept 2, Am ARA REIT Managers Sdn Bhd, the REIT's manager, said FSBM had accepted an offer made by MTB. The office building was completed on Jan 31, 2002, with a lettable area of 112,151 square feet, of which 29,008 sq ft is either partly occupied by the vendor or is vacant.

AM ARA said the vendor would provide an assurance and guarantee that the rental income that the purchaser would receive from the untenanted area would be RM8.14 million for a period of six years, comprising the agreed rates of annual rent of RM1.29 million for the first three years and RM1.42 million for the remaining three years.

In a separate announcement, Am ARA said the REIT was also acquiring a retail lot unit No S2.140B, 2nd Floor, The Summit in Subang USJ from SYF Trading Sdn Bhd for RM6.8 million cash. It comes with a guaranteed monthly rental income during a one-year period of RM68,929.73 totalling RM827,156.80.

Sunway City acquiring 45% stake in Sunway Lagoon for RM128.57m

KUALA LUMPUR: SUNWAY CITY BHD []'' (SunCity) has proposed to acquire a 45% stake in theme park operator Sunway Lagoon Sdn Bhd (SLSB) for RM128.57 million and raise its shareholding to 96%.

SunCity, which owns 51% of SLSB, said on Thursday, Sept 2 it was acquiring the shares from Datuk Lim Say Chong and Oh Kim Sun respectively.'' Lim and Oh held 1.9 million and 2.6 million RM1 shares each, representing 19% and 26% equity interests respectively in SLSB.

'By owning 96% of SLSB and with the same management effort, SunCity will have greater share of the future earnings of SLSB group,' it said in a statement to Bursa Malaysia. The acquisition would be from internally generated funds.

AMMB says won?t cut profit margins to gain market share

KUALA LUMPUR: AMMB HOLDINGS BHD [] said it would not cut profit margins to gain market share in the mortgage business.

"Competition is key but we are not one of those that offer cut-throat rates to get the business. We are cautious on the profitability," said group managing director Cheah Tek Kuang.

Cheah said lower rates were usually given to bank's customers with good business, potential cross-selling of other products and credibility on a case-to-case basis.

It is understood that the bank offers mortgages at the base lending rate (BLR) of '2.3 per cent, which is among the lowest loan rate in the country. The current BLR rate is 6.3 per cent.

The BLR is measured against the overnight policy rate (OPR). This year, Bank Negara Malaysia has raised the OPR by 75 basis points in three rounds of rate hike to 2.75 per cent.

On the possibility of Bank Negara imposing a lower mortgage loan-to-value (LVR) ratio, Cheah said such a move was common in countries like Hong Kong and Singapore, which has limited land for development.

In Singapore, the LVR for those who has more than one mortgage can only borrow up to 70 per cent as against 80 per cent previously while in Hong Kong the LVR has been brought down to 60 per cent from 70 per cent previously for the second loan.

"In Malaysia we don't have issue of land scarcity. So, you can't have a hard-and-fast rule," he said, adding that depending on the bank's risk appetite and customer's credibility, there should be some exceptions.

Bank Negara is reported to have written to financial institutions to get feedback on the possibility of capping the LVR for mortgages at 80 per cent to avert the risk of a potential property bubble.

Currently, banks can usually lend up to 90 per cent of the house value or up to 100 per cent in selected cases, which has been handy for developers promoting their newly launched under interest absorption schemes like 10/90 home loan schemes.

Kenanga Research in a research note on Monday said it would not be surprised if Bank Negara implements the 80 per cent cap on the mortgage LVR, at least for PROPERTIES [] more than RM500,000, as the government is clamping down on investment related property acquisitions.

However, Cheah said the central bank has all the necessary figures that it needed to assess the market and to "be fair to them, they have to ensure an orderly market condition".

Therefore, he said, Bank Negara from time to time does have consultations with the industry for the betterment of the sector.

On another issue, AMMB chief financial officer Ashok Ramamurthy, who is also deputy group managing director, said the bank has no plans to raise capital.

He said the bank always ensured that its balance sheet was positioned for rising interest rates.

On the interest rate outlook in Malaysia, Ashok said if the country's economy continued to grow rapidly as in the first half of the year, it may put some pressure on interest rates. ' Bernama

#Flash* Bank Negara maintains OPR at 2.75%

KUALA LUMPUR: Bank Negara decided to maintain the Overnight Policy Rate (OPR) at 2.75% during its Monetary Policy Committee (MPC) meeting on Thursday, Sept 2.

The central bank said the MPC considered the current monetary policy as appropriate and consistent with the latest assessment of the economic growth and inflation prospects.

'At the current level of the OPR, the stance of monetary policy continues to remain accommodative and supportive of economic growth,' it said.

On inflation, Bank Negara said domestic inflation edged higher in June and July mainly on account of increases in food and energy prices.

'Despite the adjustment in retail fuel prices in July, inflation is expected to rise at a modest pace in the coming months. Going into 2011, inflation is projected to continue to remain moderate,' it said.

Shares close higher, KLCI at new high

KUALA LUMPUR: Share prices on Bursa Malaysia closed higher on Thursday, Sept 2, with the benchmark index touching a new high supported by buying
interests on selected key heavyweights, dealers said.

The FTSE Bursa Malaysia KUALA LUMPUR COMPOSITE INDEX [] (FBM KLCI) rose by 9.11 points, or 0.6%, to close at 1,441.07.

The index had opened 5.55 points steadier at 1,437.51. It had touched an intra-day high of 1,441.8, surpassing the 1,439.49 points set on Jan 18, 2008.

A dealer said the key index was supported by strong participation by the local and foreign funds.

"The fundamentals of the benchmark index are still better compared to its regional peers," he said, adding that the gains on Wall Street overnight and the strengthening of the ringgit also provided support for the local market.

As of yesterday, Bursa Malaysia's website showed foreign participation jumped 40.7% in value.

The Finance Index surged 60.63 points to 12,949.83, PLANTATION [] Index gained 51.22 points to 6,642.5 and the INDUSTRIAL INDEX [] rose 26.1 points to 2,770.8.

The FBM Emas Index increased 70.19 points to 9,598.74, FBM70 [] Index advanced 83.561 points to 9,329.66 and the FBM ACE index rose 34.97 points to 3,716.43.

Turnover increased to 1.075 billion shares valued at RM1.87 billion from 949.219 million shares valued at RM2.077 billion yesterday. Advancers outnumbered decliners by 511 to 256 while 258 counters were unchanged, 341 untraded and 36 suspended. -- Bernama

Samsung to challenge iPad with own tablet

BERLIN: Samsung Electronics' first tablet computer will go on sale in two weeks, it said on Thursday, Sept 2, joining the hunt to challenge Apple's iPad.

Global handset vendors and PC makers including Nokia, LG Electronics and Hewlett-Packard Co are moving into the new category of devices, between traditional PCs and smartphones, taking a cue from Apple.

Dell Inc said last month it was launching its new tablet device called the Dell Streak to US customers.

"We see huge potential for this kind of product," YH Lee, head of marketing at Samsung Mobile, told Reuters in an interview on sidelines of the IFA consumer electronics fair. The new Galaxy Tab, with a 7-inch screen, will go on sale in European markets in mid-September. The device, which uses Google's Android software, offers access to books, films and music.

"Samsung is betting big on the tablet category with this device," said Ben Wood, research director at CCS Insight, adding the success of Galaxy Tab ' which is clearly smaller than iPad with its 9.7-inch screen ' will depend on pricing.

"If positioned carefully the Galaxy Tab could emerge as an operator-friendly alternative to Apple's iPad as it could be subsidised to extremely low price points in the run-up to the lucrative holiday sales season," he said.

Samsung declined to give the price of Galaxy Tab, saying it will depend on operator packages in different countries.

YH Lee said most European operators selling Samsung phones were set to also sell the Tab to their clients, and several operators would sell it in the United States.

Last week research firm iSuppli forecast the iPad will likely account for nearly three-quarters of worldwide tablet shipments this year, and hold at least 70% of the market in 2011 and 62% by 2012.

Samsung said the market was far from fixed yet.

"The market opportunity is wide open. We believe our Galaxy Tab will fill the big white space," said YH Lee.

Privately held British firm Binatone unveiled at IFA several Android-powered tablets, with prices starting from '170 (RM680.41). ' Reuters

Baidu to focus mobile Internet investment on search biz

HONG KONG:'' Baidu Inc, operator of China's dominant search engine, said on Thursday. Sept 2 that it will focus its future mobile Internet investments on its core search business as it takes aim at the next big Internet space.

Baidu CFO Jennifer Li, speaking at a company event, said broader future investment priorities for the company would include mobile Internet and ecommerce initiatives in the business-to-comsumer space.

Baidu began expanding its investments in mobile Internet last year, including its introduction of a Baidu text input method and mobile maps. The company also set up a mobile Internet department. - Reuters

Genting chairman reduces stakes in Genting, GentingM

KUALA LUMPUR: Genting Group chairman and chief executive Tan Sri Lim Kok Thay reduced his shareholdings in GENTING BHD [] and Genting Malaysia Bhd.

A filing with Bursa Malaysia showed he disposed of 169,000 shares of Genting Bhd at RM9.01 apiece on Aug 27 and another 100,000 shares on Aug 30 at RM9.41 each.

This saw him reducing his direct interest in Genting Bhd to 10.1 million shares or 0.273%.

In Genting Malaysia, a filing showed he disposed of 160,000 shares on Aug 27 at RM3 a piece and 100,000 shares on Aug 30 at RM3.01 apiece.

The recent transactions saw his direct interest in Genting Malaysia reduced to 1.4 million shares or 0.024%.

EPF sells 2m Zelan shares

KUALA LUMPUR: The Employees Provident Fund Board disposed of two million shares of ZELAN BHD [] from Aug 18-20, reducing its stake to 11.47% or 64.61 million shares.

A filing with Bursa Malaysia on Thursday, Sept 2 showed the EPF sold one million shares on Aug 18 and another one million on Aug 20.

The share price closed at 73 sen on Aug 18 and slipped to 70 sen to Aug 20.

RAM Ratings reaffirms Silver Bird?s debt notes, but still negative on long-term ratings

KUALA LUMPUR: RAM Ratings has reaffirmed the A2 rating of SILVER BIRD GROUP BHD []'s'' RM70 million Serial Bonds (2005/2012), as well as the A2/P2 ratings of its RM30 million commercial papers/medium-term notes programme (2005/2012).

'Meanwhile, the negative outlook on the long-term ratings has been maintained,' said the ratings agency on Thursday, Sept 2.

RAM Ratings said the ratings were supported by Silver Bird's position as the second-largest player in the domestic premium-bread market, the steady demand for bread, and the group's extensive distribution network of approximately 17,000 outlets. Silver Birds's financial profile was also viewed to be improving.

The group turned around with a net profit of RM1.44 million in FY Oct 2009. Meanwhile, its adjusted net gearing ratio and adjusted funds from operations (FFO) debt coverage ratio ameliorated to 1.28 times and 0.20 times, respectively, at the end of the period (end-FY Oct 2008: 1.44 times and 0.10 times).

'Going forward, the Group's adjusted net gearing ratio is expected to ease to around 1.0 time with corresponding FFO debt coverage ratios of around 0.2 times to 0.3 times in the next two to three years,' it said.

However, RAM Ratings noted that Silver Bird's market share has been declining over the past four years vis-''-vis its main rival. The group's Malaysian sales increased 7% in 2008 and 15% 2009, compared to its competitor's average growth of 20% per annum.

Moreover, the non-materialisation of a concession agreement with the Domestic Trade, Cooperative and Consumerism Ministry (KPDN) had prompted RAM Ratings to lower its projections for FY October 2010.

'Elsewhere, the group's performance remains vulnerable to fluctuating flour prices and keener competition from mid-sized and newer players,' it said.

On Aug 16, its subsidiary Stanson Marketing Sdn Bhd signed a MoU with KPF Holdings Sdn Bhd (a subsidiary of Koperasi Permodalan Felda Malaysia Bhd) and Consortium Fresh Food Quality Bhd (CFFQ), to establish a strategic partnership.

Under the arrangement, CFFQ will purchase and collect essential agriculture-based foods, thereafter delivering these items to designated hubs that include the Gedung Makanan Negara (GMN); Stanson Marketing shall be appointed as CFFQ's exclusive distributor.

'Clinching the GMN project could also boost SBGB's profitability, although on a more moderate scale than what would have been possible under the KPDN contract,' said Kevin Lim, RAM Ratings' Head of Consumer & Industrial Ratings. 'As details of the partnership are still being ironed out, RAM Ratings will continue monitoring the impact of this project,' adds Lim.

'While we acknowledge the improvement in Silver Bird's financial metrics, the negative rating outlook has been maintained to reflect our concerns over its declining market share and lower-than-expected revenue after the non-materialisation of the KPDN contract.

On balance, the loss of potential revenue from the KPDN contract (which had been expected to surpass that from the Group's existing consumer food business) may be partly mitigated by revenue from a potential contract under the GMN.

RAM Ratings said the rating outlook may be revised to stable if the Group is able to sustain the improvement in its financial performance and also halt the decline in its market share.

'Conversely, the ratings may be downgraded if Silver Bird's performance comes in below our revised expectations, or if the GMN contract exposes the group to additional risks that are not adequately addressed,' it said.

FBM KLCI stays positive at mid-day break

KUALA LUMPUR: The FBM KLCI stayed in positive territory at the mid-day break on Thursday, Sept 2 in line with key regional markets, as Asian investors reacted positively to fairly encouraging data from the US as well as the strong overnight close at Wall Street.

At 12.30pm, the FBM KLCI was 2.65 points higher at 1.434.61, easing from its intra-morning high of 1,441.80. Gainers led losers by 367 to 256, while 276 counters traded unchanged. Volume was 505.73 million shares valued at RM821.03 million.

The Institute for Supply Management said its index of US factory activity rose to 56.3 in August from 55.5 in July, much higher than forecast by economists.

The strong Chinese manufacturing data and stronger-than-expected growth in Australia eased investor fears about the pace of global economic recovery and helped Wall Street to its best day in eight weeks, Reuters reported.

Hang Seng Index +1.21% 20,872.64 Shanghai Composite Index +0.94% 2,647.64 Taiwan's Taiex +0.66% 7,718.96 Nikkei 225
+0.62% 8,982.62 Kospi Index +0.29% 1,769.85 ingapore Straits Times Index +0.24% 2,989.85 ''

Among the major gainers this morning were Genting that added 14 sen to RM9.53, UMW up 11 sen to RM6.86, MMC Corp and MAS that rose eight sen each to RM2.61 and RM2.19, MISC up six sen to RM8.80 and Genting Malaysia up three sen to RM3.03.

BAT added 70 sen to RM46.20, Lafarge Malayan Cement rose 27 sen to RM7.28, Petronas Dagangan added 24 sen to RM11.04, Tan Chong gained 21 sen to RM4.98 while F&N and KFCH rose 14 sen each to RM14.16 and RM11.32.

Other gainers included JCY International, SIG Gases, Axiata and AirAsia. JCY rebounded 12.5 sen to RM1.02 after as CIMB Research said the selldown as an as an opportunity to accumulate the shares.

Among the decliners, DFZ Capital fell 30 sen to RM3.69, Bintulu Port lost 20 sen to RM6.80, SP Setia fell 19 sen to RM4.39, LPI Capital down 16 sen to RM11.96, HELP fell 15 sen to RM3.85, Carlsberg down 12 sen to RM5.18 while IJM PLANTATION []s fell 11 sen to RM2.48.

KNM was the most actively traded stock this morning with 42.12 million shares done. The stock declined three sen to 41 sen. Other actives included Time dotCom, Berjaya Corp, Tejari, UEM Land and Zelan.

PPB Group to have two new flour mills overseas

KUALA LUMPUR: PPB GROUP BHD [] plans to set up an additional flour mill each in Indonesia and Vietnam soon to boost its contribution from its flour and feed milling division, its MD Tan Gee Sooi said.

He said the group was currently in talks with land owners in Indonesia and Vietnam for the location of the mills, adding that "something concrete" on its new plants should be known by next year.

"Our current mill in Indonesia was set up with a USD35 million capex some years ago," he told a press conference on Thursday, Sept 2.

Tan noted the two additional mills would increase the number of flour mills by PPB Group to nine as it currently has five in Malaysia and one each in Vietnam (51% stake) and Indonesia (100%). The group also has a 43.3% stake in a flour plant operating in Thailand.

He added PPB has a market share of about 42%-44% in Malaysia as compared to its nearest competitor which is estimated to be in mid-20%.

Malaysia-based Navis Capital bids for Carrefour assets

SINGAPORE/HONG KONG: A consortium led by a Malaysia-based private equity firm has joined a slate of bidders including French retailer Casino and Britain's Tesco, in bidding for some of Carrefour's Southeast Asian assets, sources said.

Malaysia's Navis Capital Partners has bid for Carrefour assets in Singapore and Malaysia, sources familiar with the deal told Reuters. Navis declined to comment on the deal.

Carrefour, Europe's top retailer, is exiting Singapore, Malaysia and Thailand in a deal that could raise about $1 billion to focus on markets where it has a leading position, sources with knowledge of the matter have previously said.

The first round bidding for Carrefour assets has drawn more than 10 bidders, including European and Asian retailers, private equity firms and local players, sources familiar with the auction said.

The asset auction has also attracted regional players like Dairy Farm which owns Giant and Cold Storage chains in Southeast Asia, which have submitted bids, the sources said.

Japan's No.2 retail group Aeon has also thrown its hat into the ring, sources said on Wednesday, and appointed Nomura to advise it on its bid.

Navis, which is run by former executives from the Boston Consulting Group, has not bid for the assets in Thailand, where Carrefour has 40 stores, one of the sources with direct knowledge of the deal told Reuters. Carrefour has 19 stores in Malaysia and two in Singapore.

The firm was founded in 1998 and manages approximately $3 billion in capital commitments with investments in South and Southeast Asia, according to its website.

The sources did not want to be named because of the sensitivity of the auction process.

The large number of bidders means there will be a second round of bidding after a few are shortlisted, the sources said.

Thailand, where Tesco is a leading player in the hypermarket or superstore segment and Carrefour is No.4, is likely the most sought-after asset, followed by Malaysia, a source with direct knowledge of the deal said earlier.

The sources did not want to be named because of the sensitivity of the auction process.

Carrefour had split the sale into two, with the Singapore and Malaysia business being offered in one deal and Thailand being sold separately, sources said.

Goldman Sachs Group Inc and UBS AG are advising Carrefour on the deal. Casino is being advised by Deutsche and RBS, while Dairy Farm is seeking advice from Rothschild, sources said.

Carrefour has 626 stores in Asia, with more than two-thirds in China alone. Indonesia has 76, Taiwan 65, Malaysia 19, Singapore two and Thailand 40, including 39 hypermarkets.

In recent years, Carrefour has pulled out of Japan and South Korea and the latest exit comes as Carrefour battles sluggish sales in Europe. - Reuters

PKNS injects 3 properties, valued at RM270m, into AmanahRaya REIT

KUALA LUMPUR: Perbadanan Kemajuan Negeri Selangor (PKNS) is venturing into the real estate investment trust (REIT) industry, with the injection of three PROPERTIES [] into AmanahRaya REIT.

PKNS had on Thursday, Sept 2, injected the three properties valued a total of RM270 million in the REIT.

PKNS will receive RM162 million cash and a stake in AmanahRaya REIT.

JCY rebounds, CIMB keeps target price RM1.88

KUALA LUMPUR: Shares of JYC International Bhd rebounded in late morning trade on Thursday, Sept 2 as CIMB Research said the recent selldown was unjustified and instead viewed this as an opportunity to accumulate the shares.

At 11.58am, it was up 8.5 sen to 98 sen with 16.7 million shares done.

The FBM KLCI was up 1.66 points to 1,433.62. Turnover was 442.22 million shares valued at RM695.59 million.

CIMB Research continued to rate the stock an OUTPERFORM with an unchanged target price of RM1.88, still based on 12.0 times CY11 P/E.

'Potential catalysts for the stock include (1) turnaround of the hard disk drive sector, (2) more meaningful contributions from Hitachi and Samsung, and (3) positive news on its successful penetration into Toshiba,' it said.

The research house said the foreign labour issue was solved in mid-August;

The Edge FinancialDaily reported that JCY's share price had plunged more than 22% over the past 1'' weeks, due to a delayed market response to labour protests in mid-August.

CIMB Research said: 'This was discussed during the results briefing on Aug 20. We understand that the issue was quickly addressed and there was minimal disruption to production. We do not think the share price plunge is justified and that with the big decline in share price, the upside now is very significant at 109%,' it said.

Asia stocks rise, US data soothes fears

TOKYO: Asian stocks rose to a two-week high on Thursday, Sept 2 with Japan's Nikkei briefly rising more than 2 percent, as strong U.S. manufacturing data further soothed worries about the global economy.

The dollar and the yen began the day on the defensive, while commodities gained, helping make materials shares some of the strongest performers across the region as gold steadied after a two-month top hit on Wednesday.

The Institute for Supply Management said its index of U.S. factory activity rose to 56.3 in August from 55.5 in July, much higher than forecast by economists.

Coming on the heels of strong Chinese manufacturing data and stronger-than-expected growth in Australia, the numbers eased investor fears about the pace of global economic recovery and helped Wall Street to its best day in eight weeks.

But gains in Asian stocks, which were also boosted by gains in tech shares, appeared capped by wariness about whether the global economy is truly on the path to recovery, as well as concern about closely watched U.S. nonfarm payrolls data on Friday.

"It's too early to say worries about a double-dip recession in the economy have been wiped away just because China's PMI, Autralia's GDP and U.S. data weren't bad," said Masahiko Sato, an executive director at Nomura Securities' equity marketing department.

"But stocks may become more resilient to poor economic indicators going forward and gain further if money that had shifted to bonds on extreme concern over the economy comes back to equities, early signs of which have likely appeared in U.S., Germany and U.K. bonds after yesterday's data."

The MSCI index of Asia Pacific stocks outside Japan rose 0.8 percent to its highest level since mid-August.

Japan's benchmark Nikkei rose more than 2 percent at one point, moving further away from a 16-month low hit on Wednesday, helped by what some market players said was buying by domestic institutional investors at lows and buying of futures by foreign players.

But the Nikkei pared gains to 1.2 percent by midday. It lost 7.5 percent in August and is down roughly 14 percent on the year.

Seoul shares rose 0.3 percent, boosted by tech stocks, with market players saying foreign investors, cheered by the rise on Wall Street, could turn strong buyers.

Australian stocks rose 0.8 percent to a three-week high, with miners such as Rio Tinto gaining after copper prices rose to a four-month high.

STEADY DOLLAR

The dollar index, a gauge of the greenback's performance against a basket of six major currencies, was steady on the day at 82.528 after falling 0.9 percent on Wednesday, marking its biggest one-day fall in six weeks.

The dollar edged down 0.2 percent to 84.27 yen but still stayed above a 15-year low of 83.58 yen hit last week.

Through the ISM data boosted higher-yielding currencies such as the Australian dollar, investors have now turned hesitant about taking fresh positions ahead of the European Central Bank's policy meeting later in the day and Friday's closely watched monthly U.S. job report, a trader said.

Spot gold edged up to $1,246.70 an ounce, after hitting $1,254.65 on Wednesday, its highest since June 28.

Oil held onto most of the previous session's gain of 2.8 percent after the strong manufacturing data in top consumers the United States and China raised hopes record oil inventories will draw down.

U.S. crude for October delivery was steady at $73.91 a barrel at 0211 GMT after a jump of nearly $2 on Wednesday. - Reuters

Russia to supply 70% of oil to China venture

BEIJING: Russia will supply about 70% of oil at market prices for a proposed joint refinery between Rosneft and China National Petroleum Corp (CNPC), China's energy chief was quoted as saying by a Russian news agency.

The two parties planned to make a final investment decision on the multi-billion-dollar Tianjin refinery by August after inking an initial deal more than four years ago.

Under a US$15 billion (RM47 billion) oil-for-loan deal agreed in April 2009, the Russian oil major agreed to transport 15 million tonnes, or 300,000 bpd of crude from 2011 to China starting from late 2010.

Rosneft was hoping the crude would go to feed the planned Tianjin refinery but CNPC, parent of PetroChina, allocated the oil to its subsidiary plants in northeast China including a newly upgraded plant in Liaoyang to process exclusively Russian crude.

"The issue is resolved following friendly talks," Zhang Guobao was quoted as saying in a report on the website of RIA Novosti.

The other 30% of oil for the refinery will be delivered from Asia, Zhang said. ' Reuters

FBM KLCI extends gains for fifth day

KUALA LUMPUR: The FBM KLCI extended its positive run to five consecutive days, in line with the gains at key regional markets after the overnight higher closing at Wall Street.

The local index also crossed the 1,440-point level, surpassing its highest level since Jan 18, 2008 when it had closed at 1,439.49.

In Asia, a manufacturing rebound in China and stronger-than-expected growth in Australia, help halt the yen's advance and lifted the Tokyo market, according to Reuters.

Global stocks later also drew support after the Institute for Supply Management said its index of US factory activity rose to 56.3 in August from 55.5 in July, much higher than forecast by economists, it said.

Japan's Nikkei 225 rose 1.22% to 9,035.72, the Shanghai Composite Index was up 0.79% to 2,643.54, Taiwan's Taiex added 0.91% to 7,738.37, the South Korean Kospi up 0.32% to 1,770.37, Singapore's Straits Times Index rose 0.45% to 2,996.13 while Hong Kong's Hang Seng Index opened 1.2% higher at 20,864.40.

On Bursa Malaysia, the FBM KLCI had in early trade climbed more than nine points to a high of 1,441.80 before easing down slightly.

At 10am, the 30-stock index was up 4.79 points to 1,436.75, lifted by gains including at BAT, Petronas Dagangan, UMW and CIMB.

Gainers led losers by 298 to 126, while 193 counters traded unchanged. Volume was 163.48 million shares valued at RM226.35 million.

HLG Research in a note on Thursday, Sept 2 said that despite an overdue consolidation, the FBM KLCI was expected to test the 1,450 resistance level due to sustained buying on blue chips, spurred by whispers of increasing foreign interest on the back of the strengthening ringgit and expectations of more economic reforms.

Moreover, the overnight rally at Wall Street was expected to augur well for regional markets, it said.

Nevertheless, investors should expect more wild swings in the near term, as trading interests in big-caps appear stretched, said the research house.

"Unless more consistent and positive macro-news as well as higher trading activity (above one billion shares/day), profit-taking is expected to increase volatility in the market.

"Immediate resistance levels are 1,439 (61.8% FR from top 1,525 and low of 1,300) and 1,472 (76.4% FR) whilst support levels are 1,414 (5-d SMA), 1,405 (10-d SMA) and 1,383 (20-d SMA)," it said.

On Bursa Malaysia, BAT was the top gainer at mid-morning and was up 30 sen to RM45.80. Petronas Dagangan added 24 sen to RM11.04, Lafarge Malayan Cement up 23 sen to RM7.24, APM Automotive gained 18 sen to RM4.49, Tan Chong was up 15 sen to RM4.92 and CIMB rose six sen to RM7.86.

Huat Lai Resources was up to 15 sen to RM1.27, KFCH added 12 sen to RM11.30, UMW rose 11 sen to RM6.86 while Coastal Contracts rose 10 sen to RM2.25.

Petronas Gas was the top loser and fell 28 sen to RM10.52. Bintulu Port lost 20 sen to RM6.80, SP Setia down 18 sen to RM4.40, Jaya Tiasa down 10 sen to RM3.40, Top Glove fell nine sen to RM6.10 while Lay Hong lost seven sen to RM1.88.

KNM was th most actively traded stock with 17.2 million shares done. The counter shed 1.5 sen to 42.5 sen. Other actives included Timecom, JCY International, Linear, UEM Land, Tejari and SIG Gases.