Nestle sees growth in tea, frozen food

NEW YORK: Nestle SA, the world's biggest food company, seeks to expand in bottled tea and frozen foods in the United States, where the business climate is expected to remain difficult in the near future.

The tea business is beckoning since the company sees little room to expand further in water, where it already sells many brands, said Kim Jeffery, chief executive of Nestle Waters North America.

"Our next frontier is looking at other beverages that we can sell that fit into the healthy hydration space that we staked out with water," Jeffery said in an interview on Friday, Oct 22 following a press conference in New York. "We like the tea space."

Nestle already owns 35 percent of small tea brands Sweet Leaf and Tradewinds and plans to buy them outright within 18 to 24 months.

Nestle's North American water business accounts for some $4 billion out of Nestle's total revenue of about $100 billion. Jeffery declined to provide sales targets for the current year, except to say he expects to gain market share.

The company's North American water brands range from San Pellegrino and Perrier to Poland Spring and Deer Park.

The Swiss company reported nine-month results on Friday, beating forecasts with a 5.7 percent rise in sales thanks to strong demand in emerging markets, price increases and a thriving Nespresso coffee business. It also affirmed its 2010 sales growth and margin outlook despite concerns about higher commodity prices and the economy.

In a separate interview, Brad Alford, chief executive of Nestle USA, said he sees big opportunities in frozen foods, and said growth for the company would likely be both organic and through acquisitions.

"I am very bullish on frozen food. I think there are many, many more opportunities in frozen food," Alford said. "We live in an 'And' world. So we will be looking organically and for acquisitions."

The company's brands in the United States, its biggest market, include Coffee-Mate creamers, Stouffer's frozen meals and Beneful dog food.

Nestle shares closed down 0.8 percent at 52.65 Swiss francs. - Reuters

Wall St posts third straight weekly gain

NEW YORK: U.S. stocks capped a third straight week of gains on Friday, Oct 22 as encouraging earnings helped the market sustain upward momentum, led by Baidu Inc, the latest tech company to beat estimates.

The market has defied expectations for a pullback following a strong rally prior to the earnings season. Some investors were expecting the results to provide an excuse for broad profit-taking.

"To get decent earnings after a nice little rally in the market and have the market sustain the gains or even achieve a little more is a really good thing and bodes well," said Robert Stimpson, a fund manager at Oak Associates in Akron, Ohio.

Volume was very light after nearly two weeks of more active trading. Just 5.76 billion shares were traded on the NYSE, Amex and Nasdaq. The daily average this year has been around 8.8 billion shares.

Earnings in the TECHNOLOGY [] sector, the S&P's largest, have been particularly strong. Profit at Baidu, the Chinese Web search engine, beat Wall Street estimates and the company forecast strong demand ahead. Baidu's shares rose 4.6 percent to $107.28.

The Dow ended lower, weighed down by American Express whose shares slipped as regulatory issues overshadowed rising profit. Verizon Communications Inc also fell after it said additions of new wireless customers may lag.

The Dow Jones industrial average dropped 14.01 points, or 0.13 percent, to 11,132.56. The Standard & Poor's 500 Index gained 2.82 points, or 0.24 percent, to 1,183.08. The Nasdaq Composite Index gained 19.72 points, or 0.80 percent, to 2,479.39.

For the week the Dow and the S&P 500 each rose 0.6 percent, while the Nasdaq climbed 0.4 percent.

Technology has led gains in the recent rally. The Nasdaq is up more than 17 percent since the end of August compared with the S&P 500, which is up 12.7 percent. The Nasdaq closed just shy of its highest level since May on Friday.

Early reports from technology companies have given a mostly rosy picture of the sector's future, including Google's much stronger-than-expected earnings a week ago. Baidu late Thursday gave a robust outlook for its business..

Also boosting the Nasdaq were shares of online retailer Amazon.com Inc, which gained 2.5 percent to $169.13 after Wall Street analysts raised their price targets on the company, even as Amazon gave a disappointing forecast on Thursday.

Shares of American Express declined 3 percent to $39.03 while Verizon lost 1.3 percent to $32.09.

Also on the down side, Leggett & Platt Inc posted a lower-than-expected quarterly profit, hurt by weakness in its residential furnishings market. The company also forecast 2010 earnings below market expectations. The shares lost 8.6 percent to $21.01.

The S&P 500 sent a bullish signal as the index's 50-day moving average crossed above its 200-day moving average, known as a golden cross. That upward momentum indicator last occurred in June 2009, and the benchmark index rose more than 35 percent in the following 10 months.

However, the bullish signal doesn't always signal an up market, says Chris Burba, short-term market technician at Standard & Poor's in New York.

"If you get a golden cross when the market has been consolidating for a while, you have a much higher probability the market is going to take off," he said.

Two top Federal Reserve officials gave contrasting views on the need for more stimulus for the U.S. economy.

Growing speculation in recent weeks that the Fed will extend the quantitative easing measures at its next meeting in November has pressured the dollar while boosting equities.

Equities have recently traded in tandem with the euro, with S&P futures rising along with Europe's single currency. - Reuters

GLOBAL MARKETS-Stocks, dollar zig-zag as G20 seeks new policies

NEW YORK: World stocks and the U.S. dollar see-sawed on Friday, Oct 22 as finance and central bank chiefs from the Group of 20 leading economies struggled to manage currency and trade imbalances, leaving investors to navigate choppy markets

Uncertainty about the outcome of the G20 meeting, who are seeking a common path to manage global trade, prompted some investors to moderate their dollar-selling until the gathering in South Korea ends this weekend.

On Wall Street, the S&P 500 and the Nasdaq rose while the Dow fell. European shares closed slightly off six-month highs touched in the previous session.

The greenback, while ending the day slightly lower, did snap a five-week losing streak against major currencies.

The United States struggled on Friday to win backing for a proposal to set limits on external imbalances as a way of pressing countries with surpluses such as China to let their exchange rates rise.

U.S. Treasury Secretary Timothy Geithner proposed limiting surpluses and deficits on the current account -- the broadest measure of trade in goods and services -- to 4 percent of gross domestic product, according to Japan's finance minister.

But the plan met with a cool reception, and big exporting countries, including Germany, that habitually run chunky trade surpluses led the opposition.

Many emerging market policy-makers blame lax U.S. policies for the global financial crisis, and they fear Washington is prepared to debase the dollar by flooding the banking system with cash to try to breathe life into a sluggish U.S. economy.

"Once we get past the G20 event, we're going to have that renewed focus on what's going on with the U.S. quantitative easing and another down leg in the U.S. dollar," said David Watt, senior currency strategist at RBC Capital Markets in Toronto.

"There's the possibility of a renewed upswing in the euro," said Watt.

Traders said large bets against the U.S. currency pointed to a correction. But they noted they would not rule out another lurch lower for the dollar, which has fallen about 7 percent against currencies over the past month.

The dollar's early strength faded by the end of the day, slipping 0.06 percent against a basket of major trading-partner currencies but it is up 0.52 percent this week, its first weekly gain since mid-September.

The euro rose 0.22 percent to $1.3950, and against the Japanese yen, the dollar was flat at 81.35.

BAIDU JUMPS, L'OREAL LAGS

On Wall Street, TECHNOLOGY [] shares edged higher as results from Baidu Inc and SanDisk bolstered the sector's outlook, while the broader market was little changed.

The Dow Jones industrial average fell 14.01 points, or 0.13 percent, to end at 11,132.56. But the Standard & Poor's 500 Index rose 2.82 points, or 0.24 percent, to 1,183.08. The Nasdaq Composite Index gained 19.72 points, or 0.80 percent, to close at 2,479.39.

While the Dow fell on Friday, all three indexes closed higher for a third straight week.

European shares closed down, with the FTSEurofirst 300 index of top European shares falling 0.35 percent to end at 1,089.45 points.

Consumer-related stocks, which had surged earlier in the week, were among the biggest losers. LVMH lost 0.8 percent and L'Oreal surrendered 1.9 percent.

"Earnings have been pretty good and a lot of stocks rose this week on the back of this, so people are using the excuse of currency tensions with the G20 meeting to cash in profits," said David Thebault, head of quantitative sales trading, at Global Equities, in Paris.

The MSCI all-country world index of stocks slipped 0.15 percent.

Japan's Nikkei share average rose 0.54 percent to close at 9,426.71 in thin trade, while the MSCI Asia Pacific ex-Japan index edged up 0.09 percent.

OIL, 30-YEAR BOND AND GOLD ADVANCE

Oil received a lift on news that German business sentiment reached its strongest in 3-1/2 years in October, according to the Munich-based Ifo think tank's business climate index, which indicates growth levels six months ahead.

U.S. crude futures rose $1.13, or 1.4 percent, to settle at $81.69 a barrel. - Reuters

The benchmark 10-year U.S. Treasury note fell 4/32, its yield edging up to 2.56 percent.

But the 30-year bond rallied 16/32, pulling the yield down to 3.93 percent.

Gold prices steadied, paring most losses that took them to 2-1/2 week lows earlier in the session.

Spot gold prices rose $3.40 to $1,327.90 an ounce.

Soccer-Bayern fortunate to escape with draw at Hamburg

BERLIN (Reuters) - Bayern Munich were lucky to escape the traditional north-south derby against Hamburg SV with a goalless draw after the hosts dominated throughout and rattled the post late in Friday's, Oct 22 game. With half a dozen key players injured, Bundesliga champions Bayern were quiet in attack and vulnerable at the back.

However, just like their midweek Champions League group win over CFR Cluj when they were gifted two own goals by the Romanians, the Bavarians had luck on their side.

Hamburg squandered several chances through Paolo Guerrero, Ruud van Nistelrooy and Piotr Trochowski and then with nine minutes left Jonathan Pitroipa raced into the box but hit the post with only keeper Hans-Joerg Butt to beat.

The result lifts Bayern to ninth place on 12 points with Hamburg moving up to fourth on 15. Leaders Borussia Dortmund, on 21, entertain Hoffenheim on Sunday.

"Pitroipa should have scored," Hamburg coach Armin Veh told reporters. "(But) at least we kept a clean sheet."

Bayern, missing striker Miroslav Klose, captain Mark van Bommel and wingers Arjen Robben and Franck Ribery among others, relied more on individual sparks than organised attacking.

Thomas Mueller had a powerful shot parried by Hamburg goalkeeper Frank Rost, who was later taken off with suspected torn knee ligaments, and also set up Mario Gomez for a close-range effort that sailed wide.

Hamburg responded with a powerful Van Nistelrooy shot that stretched Butt, who was in top form as he thwarted the home team again and again in the second half.

Substitute Mladen Petric, back from a month-long injury absence, added pace up front late in the game and provided a perfect pass in the 81st minute for Pitroipa who was denied by the woodwork after a low 10-metre drive.

"It was Hamburg who had the big chances," said Bayern captain Philipp Lahm, "so there must be times when you have to be satisfied with one point".

WTO rejects many Chinese claims in U.S. duties case

GENEVA:'' A World Trade Organization panel largely rejected Chinese claims on Friday, Oct 22 in a dispute with the United States over extra duties on Chinese goods which Washington argued were priced at below cost and subsidised.

U.S. Trade Representative Ron Kirk welcomed the ruling as a win for American businesses and workers affected by unfairly traded imports.

The case involved treatment of goods from a country that is not a market economy, where the state sets or influences prices.

The ruling backed the right of an importer to set duties on goods from such economies to compensate for unfair pricing and for subsidies -- something that a U.S. court had struck down.

The two-year-old dispute turned on duties imposed by the United States on imports of Chinese steel pipes, off-road tyres and woven sacks.

The panel did back some Chinese complaints and called on the United States to bring its measures in line with WTO rules where they breached them.

China had challenged the way the United States calculated the duties and the fact that it suffered a double penalty of anti-dumping (AD) duties for unfairly priced goods and countervailing duties (CVD) for subsidised products.

''

DOUBLE INDEMNITY

"We are pleased that the panel recognised that the concurrent application of AD and CVD duties on subsidised Chinese goods to level the playing field for U.S. companies and workers is fully consistent with our WTO obligations," Kirk said in a statement.

China also argued the United States had been wrong to conclude that the producers of the goods were subsidised because they had received inputs from state-owned companies or loans from state-owned banks, but the panel rejected this claim.

For many years the U.S. Commerce Department did not impose countervailing duties on China as a non-market economy. It reversed that policy in 2007 but still treated China as a non-market economy when it calculated anti-dumping duties.

WTO rules allow countries to impose anti-dumping duties on imports that are dumped, or sold for less than they cost at home.

But in a non-market economy it is unclear what a fair domestic price is, or how far it has been undercut. So the normal rules do not apply and importers have some discretion in calculating the duties for goods from non-market economies.

China argued this treatment resulted in higher anti-dumping duties than justified and it was unfair to be hit by both types of duty when it is still treated as a non-market economy.

In August, a U.S. court reviewing the duties on the off-road tyres, found that that Commerce Department was wrong to impose both countervailing and anti-dumping duties on the same product.

Both parties now have 60 days within which to appeal. - Reuters

Stocks, dollar waver ahead of G20 meeting

NEW YORK: World stocks and the U.S. dollar wavered on Friday, Oct 22 before a meeting of the Group of 20 leading economies that is keeping markets choppy and traders skittish as they take profits after this week's run-up.

Uncertainty about the outcome of the meeting of G20 finance ministers who seek a common path to manage global trade prompted some investors to moderate their dollar-selling until the gathering in South Korea ends this weekend.

Wall Street stocks were little changed and European shares edged lower from six-month highs as the dollar rose slightly and was on track to snap a five-week losing streak against major currencies.

U.S. Treasury Secretary Timothy Geithner said in a letter to fellow G20 finance chiefs that countries should refrain from currency policies designed to gain a competitive edge and should aim instead to contain trade imbalances.

Canada said it supported the proposals. However, developing economies, such as China, may cool to the idea of letting their currencies strengthen if the U.S. Federal Reserve embarks on an expected new program to boost money supply.

"It's unlikely the G20 meeting will produce any substantial clarity regarding the direction of currencies. It will not prevent the U.S. Federal Reserve from announcing a new round of quantitative easing," said UniCredit analyst Tammo Greetfeld.

While traders would not rule out another lurch lower for the dollar, which fell about 7 percent against currencies over the past month, they said large bets against the U.S. currency pointed to a correction.

The dollar rose slightly against major currencies, with the U.S. Dollar Index up 0.14 percent at 77.538 and is up about 0.4 percent this week, its first weekly gain since mid-September.

The euro was barely changed against the dollar at $1.3915, and against the Japanese yen, the dollar was up 0.01 percent at 81.35.

"The dollar has fallen quite rapidly over the last month or so and positions are somewhat extended. We saw the tide turning a bit this week," said Nick Bennenbroek, currency strategist at Wells Fargo in New York.

The Dow was down but the Nasdaq and S&P were slightly higher.

The Dow Jones industrial average was down 21.27 points, or 0.19 percent, at 11,125.30. The Standard & Poor's 500 Index was up 0.53 points, or 0.04 percent, at 1,180.79. The Nasdaq Composite Index was up 8.00 points, or 0.33 percent, at 2,467.67.

Oil prices rose above $81 a barrel as positive German data stoked commodities buying.

U.S. crude futures were up 56 cents at $81.12 a barrel, while ICE Brent in London rose 57 cents to $82.40 a barrel.

U.S. government debt prices fell slightly.

The benchmark 10-year U.S. Treasury note was down 2/32, with the yield at 2.5487 percent.

Gold prices steadied, recovering much of their losses that took them to 2-1/2 week lows earlier in the session.

Spot gold prices rose slightly to $1,323.35 an ounce.

Gold investors were wary whether any clear agreement to tackle currency imbalances would be reached at the G20 meeting.

Japan's Nikkei share average edged up 0.4 percent in thin trade, while the MSCI Asia Pacific ex-Japan index was largely unchanged on the day. - Reuters

AIG raises $17.9 billion, prices AIA IPO at top

HONG KONG:'' AIA, the Asian life insurance arm of AIG, raised $17.9 billion by pricing its Hong Kong IPO at the top of its range as investors piled into the most attractive offering in the world's hottest financial market on Friday, Oct 22.

The pricing of the initial public offering, set to be the world's third biggest, comes as new listings proliferate in Asia. It puts an end to a long-running saga for American International Group, which tried and failed to sell AIA to Britain's Prudential earlier this year.

AIG plans to use some of the proceeds of the AIA sale to pay back part of the $182.3 billion bailout that it received from the U.S. government during the financial crisis.

The successful sale made AIG the top gainer among U.S. insurance shares on Friday, adding more than 2 percent.

AIA said on Friday that the IPO was priced at HK$19.68 each and that it exercised its upsize option. If the underwriters exercise the overallotment option, the IPO size would rise 15 percent to $20.5 billion. AIA's will start trading on Oct. 29.

"Investors did not dare to miss this jumbo deal as the market has ample liquidity and the sentiment is very strong," said Antonny Cheng, a fund manager at Gain Asset Management.

AIA has been in Asia for more nearly a century, and has a forecast pre-tax operating profit of $2 billion.

Life insurance premiums in the Asia-Pacific region are forecast to grow at a compound annual rate of 12.3 percent between 2009 and 2014, Sigma Swiss Re estimates, compared with flat to modest growth in other parts of the world.

Still, the company faces a challenge with expanding in China, where the mainland's top industry players dominate and more foreign competitors are flooding the market.

The IPO will value AIA at $30.5 billion at the top end, with AIG holding a 41.6 percent stake that would drop to 33 percent if it exercises an option to issue more shares.

"It's more or less fully valued after the shares were sold at the top end," said Francis Lun, general manager with Fulbright Securities. "Still, one could expect a 5 percent upside on debut."

AIA sold 5.86 billion secondary shares and exercised the upsize option to sell an additional 1.17 billion secondary.

Unlike many other foreign insurers, AIA has 100 percent ownership of entities in China, Indonesia, Malaysia, Thailand and Vietnam. AIA has more than 300,000 agents in Asia.

"This is a cost-effective way for IPO investors to ride China's growth," said Francis Gaskins, president of IPOdesktop.com in Marina del Rey, California.

Asian IPOs raised $90 billion in the first three quarters of 2010, more than double the total from the U.S., Europe, the Middle East and Africa, according to Thomson Reuters.

LONG ROAD TO IPO

AIA IPO and auction efforts started and stopped just after the U.S. bailout. AIA was nearly sold this year to British Prudential, but the talks collapsed in May.

The successful listing of AIA will be welcome news to Robert Benmosche, AIG's third CEO since the bailout. AIG and the U.S. government last month agreed on a plan that would step up the payback of AIG's bailout.

AIG shares rose 2.1 percent to $42.14, easily leading all gainers in the S&P insurance index. An AIG spokesman said the company would not have any comment on the results of the IPO, citing regulatory rules.

The AIA IPO is expected to generate up to $355 million in fees for banks involved in the sale.

That will take year-to-date fees from Asia IPOs to $2.67 billion, according to Thomson Reuters/Freeman Consulting data, making 2010 the best year for IPO commissions since 2000.

A source with direct knowledge of the matter told Reuters that demand from institutions exceeded the offering size by eight times. The retail portion of the AIA offering, which was 10 percent of the deal, generated demand in excess of $14 billion, according to a term sheet obtained by Reuters.

CHALLENGES AHEAD

AIA CEO Mark Tucker, who joined in July, has worked in the region for 17 years. Tucker, 52, is credited with building Prudential's Asian business, and faces new hurdles at AIA.

The former professional footballer has said he will focus on organic growth. His challenge is to boost growth in China, a quickly growing market dominated by home grown insurers.

AIA will be valued at 1.32 times price to embedded value, far lower than some of the Chinese insurers such as China Life and Ping An Insurance Co.

By comparison, China Life Insurance, China's No.1 life insurer traded at 2.38 times forecast 2010 embedded value, a Merrill Lynch report says.

Citigroup Inc, Deutsche Bank AG, Goldman Sachs Group Inc and Morgan Stanley are joint global coordinators for the IPO.

Other banks in the offering include Bank of America Merrill Lynch, Barclays, Credit Suisse, JP Morgan, UBS, ICBC International and CIMB. - Reuters

Karambunai Corp: No notification from govt to develop eco-nature resort, no MoU signed with SPV

KUALA LUMPUR: Karambunai Corporation Bhd (KCB) has clarified that it has not received any notification from the government nor has it signed any agreement with or have shareholding in special purpose vehicle (SPV) originated by its controlling shareholder, together with a Beijing-based contractor, to develop an integrated eco-nature resort in Karambunai.

Karambunai Corp's controlling shareholder is low-profile tycoon Tan Sri Dr Chen Lip Keong.

Karambunai Corp is one of the largest resort operators in Kota Kinabalu with its Nexus Karambunai Hotel resort in Sabah. The Main Board-listed company has 600ha of land in the Karambunai peninsula. About 130ha have been used to build the five-star Nexus Resort Karambunai, Nexus Golf Resort Karambunai and 200-odd units of luxury beachfront villas.

The company came under the spotlight after it was mentioned in the 2011 Budget Speech that there were plans to develop an integrated eco-nature resort in Karambunai.

The government announced in its Budget 2011 on Oct 15 that it would allocate RM100 million to part finance developer and resort operator Karambunai Corp's integrated eco-tourism resort in Kota Kinabalu.

The RM3 billion project is slated to start next year and is expected to take about five years to complete.

In a filing to Bursa Malaysia on Friday, Oct 22, KCB said the promoter was a SPV specifically incorporated to assess the feasibility of investing in the Karambunai Peninsula.

'Together with its local and overseas consultants, including its financial consultant China CONSTRUCTION [] Bank International, the SPV aims at bringing in foreign direct investments to Malaysia and has presented proposals to the Malaysian government to assess the relevance and importance of developing Karambunai, Sabah to spearhead the growth of tourism in the Eastern corridor of Malaysia.

'Up to date, Karambunai Corp has no shareholding in the SPV, nor has it received any official notification from the government or signed any MoU (Memorandum of Understanding) or agreement with the SPV to develop Karambunai yet,' it said.

However, both the management of Karambunai Corp and SPV have concrete, specific, clear time-line plans and commitments to the Malaysian government to attain the desired results under Economic Transformation Programmes as envisaged by the Government, it said.

The company said its board of directors was of the opinion that there were not yet corporate developments which merit disclosure.

Hunza Properties Q1 net profit surges 273% to RM34.69m

KUALA LUMPUR: HUNZA PROPERTIES [] BHD [] net profit for the first quarter (1Q) ended Sept 30, 2010 surged 273% to RM34.69 million from RM12.69 million a year ago, on the back of a 13% increase in revenue to RM64.53 million.

Earnings per share was 18.39 sen while net assets per share was RM2.36.

Hunza attributed the higher revenue and profit mainly to improvement to FRS 140 Investment Properties, whereby it measures investment property under CONSTRUCTION [] at fair value on a yearly basis.

It also said the physical construction for the two residential towers of Gurney Paragon had been progressing well and cumulative percentage of sales was now higher at this juncture, contributing to higher attributable revenue.

On its prospects, the company said it was confident of a strong performance for the 2011 financial year.

China Construction Bank had an eye on EONCap

KUALA LUMPUR: China CONSTRUCTION [] Bank (CCB) had sent its team to do due diligence on EON CAPITAL BHD [] (EONCap) in 2008 with a view to purchase a stake in the banking outfit, while Primus (M) Sdn Bhd had stood to make US$40 million (RM144.6 million) had it sold its stakes to CCB, revealed EONCap's substantial shareholder Rin Kei Mei in his third day of testimony on Friday, Oct 22.

Rin made the revelation when his lawyer Saheran Suhendran Abdullah asked him to explain what he (Rin) meant by 'after he failed 655' and what is the '655'.

Rin told the court that in the first meeting between EONCap and Primus's director Ng Wing Fai, the latter had told him that Primus had US$1 billion and there is no problem in loaning EONCap the RM655 million to recapitalise the bank. (Primus had agreed to subscribe for a RM655 million bonds in EONCap.)

'All of us were ok and we let him (Ng) to appoint his own directors in EONCap and EON Bank. We were generous and trusted him. I treated him like a son,' said Rin, adding that Ng also visited him when he went through a surgery.

'I told Ng that Bank Negara wanted a Chinese bank and I asked him to find a Chinese bank. He got me China Construction Bank (CCB) and they came over and did due diligence.

'However, CCB's board could not approve the RM9.55 per share (this was Primus's entry price in EONCap). Then I said it comes with warrant,' said Rin, adding that he met with Primus and CCB in June 2008 to try work out a deal.

Rin said he told Primus not to miss out the chance to sell to CCB as it would have made US$40 million but Primus decided not to sell out its stakes in EONCap to CCB.

'Then he (Ng) could not come out with the money (RM655 million) and I knew something was wrong. Then I found out that Primus had pledged all its shares in EONCap with Public Bank. If Primus fails to service the loan with Public Bank, Public Bank could end up owning 20% of EONCap,' said Rin.

He said he then asked Kenanga Investment Bank Tengku Zafrul to discuss with HONG LEONG BANK BHD [] since it has offered to buy stakes in EON Bank previously.

'That is why I have to look for new buyer. If Public Bank had taken action against Ng, we will go down together with Primus,' said Rin.

On whether he knew when Khazanah Nasional Bhd had got permission from Bank Negara to negotiate with HLBB, Rin answered: 'After (Dec 17, 2009 when he had received permission to negotiate with HLBB).

Hai-O unit enters share sale, shareholder agreement to venture into property and development

KUALA LUMPUR: HAI-O ENTERPRISE BHD [] unit, Hai-O PROPERTIES [] Sdn Bhd (HOP), has entered into a share sale and shareholders agreement with Sierra Equatorial Development Sdn Bhd (SED) to venture in the property investment and development business.

In a filing to Bursa Malaysia on Friday, Oct 22, Hai-O said the agreement was for HOP and SED to establish a long-term relationship via their participation in Hai-O Development Sdn Bhd (HOD), a wholly owned subsidiary of HOP, for mutual benefit and gain in undertaking the business of property investment and development in Malaysia.

Under the agreement, SED will acquire from HOP 48,000 ordinary shares of RM1 each, representing 40% of the current total issued and paid-up share capital of HOD for RM1,000.

SED will also assist HOD in applying and procuring all necessary licences, approvals, permits and consents required undertaking the business.

It will also assist in the completion and market any development project undertaken by HOD, as well as provide the necessary expertise to HOD to train and develop a team of personnel to carry on and manage the business.

Sunway inks MoU to explore mixed development project in China

KUALA LUMPUR: SUNWAY HOLDINGS BHD [] has entered into a memorandum of understanding (MoU) with Shanghai Zhushengyuan Real Estate Co Ltd (SZRE) to explore the feasibility of a proposed mixed development project comprising commercial and residential units in 'Wuguang New City' in Wuguangxincheng, Changsha, China.

The MoU was also signed to explore the feasibility of other projects in China.

In a filing to Bursa Malaysia on Friday, Oct 22, Sunway said that under the MoU, both parties would evaluate the feasibility of the proposed development by utilising the expertise and experience of each party.

They will also jointly bid, invest, construct and develop the land plots for the proposed development in Changsha and other projects in China, it said.

It said the MoU would be valid for a period of 18 months, unless extended by Sunway and SZRE.

On the rationale for the MoU, Sunway said the overseas market was a major source of its revenue.

Sunway said it has established a strong business presence in China in view of the country's huge population and high economic growth.

'The MoU is in line with Sunway's strategy of expanding further into adjoining businesses and accessing the China market.

'The MoU will give Sunway the opportunity to explore the feasibility of developing a large landbank and to negotiate terms and conditions that are mutually beneficial to Sunway and SZRE,' it said.

FBM KLCI slips into red at close

KUALA LUMPUR: The FBM KLCI slipped into the red at the close of trade on Friday, Oct 22, dragged by losses ' including at KL Kepong and BAT ' as well as mild profit taking activity ahead of the weekend.

At 5pm, the index shed 0.38 point to 1,490.64. Gainers edged losers by 388 to 370, while 297 counters traded unchanged. Volume was 1.23 billion valued at RM1.59 billion.

The top loser on Friday was KLK that fell 56 sen to RM18.50. BAT lost 52 sen to RM46.80, Batu Kawan fell 20 sen to RM15.30, Dutch Lady down 16 sen to RM18.14, F&N fell 14 sen to RM14.20, Ibraco down 13 sen to 96 sen, UAC lost 12 sen to RM3.46, Nestle fell 10 sen to RM44.20 while PLUS was down five sen to RM4.35.

MTD was the top gainer on Friday, and was 56 sen higher at RM6.35 when trading was halted from 10.53am till 5pm pending an announcement, following a ruling by the Philippines Supreme Court that upheld the South Luzon Expressway toll hike.

Southern Acids added 35 sen to RM2.70, Tan Chong rose 28 sen to RM5.68, Boustead was up 24 sen to RM5.66, Bintulu Port rose 23 sen to RM6.99, DiGi was up 20 sen to RM24.80, Lafarge Malayan Cement gained 19 sen to RM8.10, United PLANTATION []s up 18 sen to RM16.40 and Panasonic added 14 sen to RM18.50.

Karambunai was the most actively traded counter with 131.9 million shares done. The stock added 1.5 sen to 24 sen. Other actives included Ariantec Global, Talam, PLUS, Timecom and Axiata.

Uzma unit to provide subsurface studies

KUALA LUMPUR: UZMA BHD []'s unit Uzma Engineering Sdn Bhd has been appointed as a contractor by a national oil company (NOC) to provide subsurface studies for routine and enhance oil recovery (EOR) services.

In a filing to Bursa Malaysia on Friday, Oct 22, Uzma said the contract was for an initial period of three years from Oct 14, 2010.

The company however said that the subsurface contract did not constitute or imply a commitment by the NOC to award any specific volume of works to UESB.

'The commitment to award any specific volume of works shall be made through issuance of work orders,' it said.

Uzma said the contract would not have any material effect on its earnings for the financial year ending Dec 31, 2010.

'Upon issuance of specific work order, the company expects the subsurface contract to contribute positively to its future earnings,' it said.

Singapore, Australia bourses in merger talks

SYDNEY/SINGAPORE: The Singapore Exchange is in takeover talks with Australia's ASX Ltd, a report said, in a deal which could create one of the world's largest exchanges with a market capitalisation of almost US$14 billion (RM43.54 billion).

Shares in the ASX and Singapore Exchange were both placed in a trading halt on Friday, Oct 22. The ASX said it was in talks with another party about a possible business combination but declined to elaborate.

The Singapore Stock Exchange was expected to make a full takeover bid for the ASX on Monday, The Australian newspaper said in a report on its website. It said UBS was advising ASX on the deal while Morgan Stanley was acting on behalf of the Singapore Exchange.

The ASX, which operates Asia's third-largest listed bourse, said last month it was in talks with other parties.

"A party has recently re-activated confidential discussions with ASX concerning a possible business combination," ASX said in a statement, without giving more details.

The ASX has been looking at new business opportunities ahead of the end of its monopoly in 2011.

The Singapore Exchange has a market capitalisation of around US$8 billion, while the ASX was valued at US$5.9 billion at the close of trade in Sydney on Friday.

The ASX and other Asian exchanges are investing in new TECHNOLOGY [] to counter the threat of "dark pools", or alternative trading systems, and boosting their capacity to handle large trades while also lowering fees.

In March, the Australian government approved in principle a market licence for Europe's Chi-X Australia Pty Ltd, which is expected to begin operation in 2011.

"The ASX is aware that a proportion of its cashflow is at risk of drying up, so I don't think it's overly surprising that they're looking at a combination," Daniel Manley, a dealer at Burrell & Co, said."

"That Asian exposure is what everyone wants to get these days and stock markets are no different. That's the next big growth area for the next five to ten years, so it's a logical move."

An ASX spokesman declined to give further details. ' Reuters

Alam Maritim, Yayasan Sabah Shipping ink MoU to explore O&G opportunities in Sabah waters

KUALA LUMPUR: ALAM MARITIM RESOURCES BHD [] has entered into memorandum of understanding (MoU) with Yayasan Sabah Shipping Sdn Bhd, a unit of Yayasan Sabah Group with a view to form a joint venture (JV) company.

In a filing to Bursa Malaysia on Friday, Oct 22, Alam Maritim said the JV company would be involved in the provision of services including offshore installation CONSTRUCTION [], marine operations, and subsea works to the energy industry in Sabah.

The JV company is also for the parties to co-own strategic assets required for the provision of the services, such as offshore construction assets (including a pipe-lay barge), as well as to facilitate the localisation and transfer of oil and gas-related TECHNOLOGY [] into Sabah, it said.

FBM KLCI's gains limited at mid-day

KUALA LUMPUR: The FBM KLCI remained in positive territory at the mid-day break on Friday, Oct 22 but gains were limited in line with the general cautious approach at regional markets.

Most investor attention was focused on the on-going meeting of Group of 20 finance ministers and central bankers in Seoul, Korea that is expected to address issues including currency depreciation.

Earlier in the day, most regional markets advanced, albeit cautiously, on the overnight higher close at Wall Street.

On Bursa Malaysia, added 1.18 points to 1,492.20 at 12.30pm. Gainers trailed losers by 300 to 338, while 291 counters traded unchanged. Volume was 627.58 million valued at RM714.41 million.

The ringgit weakened 0.16% to 3.1115 versus the greenback; crude palm oil for the third month delivery rose RM13 per tonne to RM3,003; gold added US$1.26 an ounce to US$1,326.94 (RM4,126.78) while crude oil rose 45 US cents per barrel to US$81.01.

On Bursa Malaysia, MTD Capital was the top gainer and added 56 sen to RM6.35 before trading was halted at 10.53am after the Philippines Supreme Court upheld the legality of the contracts entered into the Philippines government with private investors on the CONSTRUCTION [], maintenance and operation of the South Luzon Expressway (SLEx) project.

The Court also lifted the temporary restraining order (TRO) it issued last Aug 13 against the implementation of the 250% increase in toll rates at the SLEx based in the Supplemental Toll Operation Agreement (STOA) signed by the government and its joint venture partners in 2006.

Trading of MTD's shares will resume at 2.30pm Friday.

Other gainers included Southern Acids that rose 10 sen to RM2.54, CCB up 17 sen to RM5.05, United PLANTATION []s added 16 sen to RM16.38, Boustead gained 15 sen to RM5.57, MISC added 14 sen to RM8.74, Lion Forest Industries and Tan Chong rose 12 sen each to RM2.21 and RM5.52, while Fima Corp and Genting Plantations rose 10 sen each to RM5.56 and RM8.40.

The top loser this morning was JT International that lost 19 sen to RM5.71; Ibraco fell 13 sen to 96 sen, UAC and Dutch Lady down 12 sen each to RM3.46 and RM18.18, MAHB and Genting lost 10 sen each to RM5.87 and RM10.50, while F&N, Padini and KLK fell eight sen each to RM14.26, RM4.72 and RM18.98 respectively.

Karambunai was the most actively traded counter this morning. The stock fell 1.5 sen to 21 sen with 45.5 million shared done. Other actives included Ariantec Global, MLabs, Timecom and GW Plastics.

At the regional markets, Japan's Nikkei 225 gained 0.48% to 9,421.68, Taiwan's Taiex rose 0.30% to 8,155.37, and the South Korean Kospi up 0.89% to 1,891.40.

However, the Shanghai Composite Index and Hong Kong's Hang Seng Index shed 0.20% each to 2,977.45 and 23,603.01, while Singapore's Straits Times Index fell 0.12% to 3,159.76.

HP unveils $799 tablet

SAN FRANCISCO: Hewlett-Packard Co (HP)unveiled its first product for the fast-growing tablet market, a US$799 (RM2,485) device running Microsoft Windows that is aimed at business customers.

HP's Slate 500 attempts to replicate the PC experience in a tablet form, providing a contrast to rivals who have brought more of a smartphone feel to their devices. The Slate runs the same version of Windows 7 used by many companies on their standard PCs.

The tablet has a bigger price tag than competing products such as Apple's'' iPad, which kick-started the tablet craze when it debuted earlier this year.

HP's offering has an 8.9-inch, multi-touch-enabled screen, weighs 1.5 pounds and comes with 64 gigabytes (GB) of storage and a digital stylus pen. It gets five hours of battery life.

It comes equipped with Wi-Fi access but no built-in capability to connect to high-speed cellular networks, as rivals including the iPad, Samsung Electronics' Galaxy Tab and Dell's Streak have.

Carol Hess-Nickels, director of business notebook marketing at HP, emphasized the Slate's business utility. She expects retail, healthcare and insurance companies, among others, to build custom applications that take advantage of the device's portability.

"It's really like a full-function PC, it runs Windows, it will run your office applications, it just so happens to be in a slate form factor," Hess-Nickels said.

The HP Slate features the Intel Atom processor, which is commonly found in inexpensive netbook computers. Rival tablets run on low-power ARM-based chips found in smartphones.

The device is equipped with cameras in the front and back, enabling video conferencing, and a USB port. It comes with a case and a docking station.

HP's Slate is now available online, and the company will be selling it to businesses through its direct sales force.

It's $799 price tag makes it more expensive than the Wi-Fi-only version of the iPad, which starts at $499 and runs up to $699 for a 64-GB model. A 3G iPad starts at $629.

Verizon Wireless plans to sell Samsung's 7-inch tablet for $600. Dell's 5-inch Streak is priced at $550 but can be had for $300 if bought with a data plan through AT&T.

WebOS on the way

HP, the world's largest PC maker, plans to release a tablet next year that may look much different from the Slate.

That tablet will be based on the webOS software that HP acquired when it bought smartphone maker Palm earlier this year for $1.2 billion. It will likely be a more media-rich and consumer-friendly offering.

The tablet market is expected to surge next year to more than 50 million units, research group Gartner has said. The iPad is expected to continue to be the dominant product in this market.

Apple has sold more than 7 million iPads since the device launched in April.

The market is still evolving, but Apple has targeted the iPad primarily as a consumer device made for media consumption, rather than a business device.

Earlier this month, BlackBerry maker Research in Motion unveiled a 7-inch tablet aimed at business customers.

And Dell has touted the business applications for its tablet, which include healthcare. Dell expects to launch a 7-inch model by the end of the year. -- Reuters

MTD up after Philippines Supreme Court upholds toll hikes, orders rate review

KUALA LUMPUR: MTD CAPITAL BHD []'s shares rose on Friday, Oct 22 after the Philippines Supreme Court upheld the legality of the contracts entered into the Philippines government with private investors on the CONSTRUCTION [], maintenance and operation of the South Luzon Expressway (SLEx) project.

The Court also lifted the temporary restraining order (TRO) it issued last Aug 13 against the implementation of the 250% increase in toll rates at the SLEx based in the Supplemental Toll Operation Agreement (STOA) signed by the government and its joint venture partners in 2006.

However, the toll hike will not materialise any time soon as the Court ordered the Toll Regulatory Board (TRB) to review the new rates subject to the TRB notice of toll rates published last June 6 for the SLEx projects.

In a filing to Bursa Malaysia Friday morning, MTD said it would release further announcements upon receiving official judgement from the Court.

As at 10.53am Friday, a trading halt was placed on MTD shares until 2.30pm. MTD was last traded up 56 sen to RM6.35 with 98,600 shares traded.

OSK Holdings up on Cambodia broking license

KUALA LUMPUR: OSK HOLDINGS BHD [] shares rose on Friday, Oct 22 after its indirect wholly owned subsidiary OSK Indochina Securities Ltd (OSKIL) was issued the license for Securities Firm by the Securities and Exchange Commission of Cambodia (SECC).

At 9.48am, OSK was up two sen to RM1.36 with 101,700 shares traded

The license permits OSKIL to undertake securities underwriting business, securities dealing business, securities brokerage business and investment advisory business in Cambodia.

FBM KLCI stays in the black at mid-morning

KUALA LUMPUR: The FBM KLCI stayed in positive territory at mid-morning on Friday, Oct 22, in line with the generally positive but cautious sentiment at regional markets following the higher overnight close at Wall Street.

Asian markets were also encouraged by the lower unemployment claims data released by the US Labour Department as well as firmer corporate earnings in the US.

At 10am Friday, the FBM KLCI was up 3.11 points to 1,494.13. Gainers led losers by 228 to 173 while 267 counters traded unchanged. Volume was 254.75 million valued at RM204.18 million.

MTD Capital was the top gainer at mid-morning and was up 61 sen to RM6.40; Southern Acids added 19 sen to RM2.54, Quality Concrete up 11 sen to RM1.63, YTL Cement and Genting PLANTATION []s added 10 sen each to RM4.70 and RM8.40 respectively, Fima Corp, IJM Plantations and Axiata rose nine sen each to RM5.55, RM2.77 and RM4.50 respectively, while AirAsia was up eight sen to RM2.66.

Among the losers, Subur Tiasa and Batu Kawan fell 22 sen each to RM2.01 and RM15.28 respectively, JT International down 18 sen to RM5.72, Ibraco fell 13 sen to 96 sen, Bintulu Port lost 11 sen to RM6.65, BHIC and KLK down 10 sen each to RM4.49 and RM18.96 respectively, PacificMas fell seven sen to RM4.42 while Amway and Hong Leong Bank lost five sen each to RM8.10 and RM9.15 respectively.

Karambunai was the most actively trade counter Friday morning. The stock fell one sen to 21.5 sen with 22.11 million shares done.

Other actives included Ariantec Global, Daya, MLabs, Tiger Synergy and Kencana.

At the regional markets, Japan's Nikkei 225 added 0.37% to 9,410.71, the South Korean Kospi gained 0.83% to 1,890.32, Taiwan's Taiex gained 0.21% to 8,148.32 while the Shanghai Composite Index slipped 0.41% to 2,971.42, Singapore's Straits Times Index down 0.10% to 3,160.45 and Hong Kong's Hang Seng Index opened 0.1% lower at 23,625.89.

Shares rise, whipsawed by dollar, earnings

NEW YORK: Wall Street edged higher in a volatile session on Thursday, Oct 21, torn between strong corporate earnings and a surge in the US dollar.

The market swung in a wide range throughout the day as investors reacted to gyrations in the currency markets and as relatively strong earnings took a back seat.

But by the end of the session, the fundamental picture seemed to win out. The Dow rose, helped by McDonald's Corp and Travelers Cos Inc, both of which hit 52-week highs after stronger-than-expected results.

"Companies are continuing to show that they are continuing to make money in a low nominal GDP environment and that they are very good at it and they can continue to do so," said Paul Zemsky, head of asset allocation at ING.

Investors have been trading the dollar and equities against each other recently as expectations the Federal Reserve will pump billions into the economy have pressured the greenback while lifting stocks.

Commodity-linked stocks have been among the most sensitive to the trade. Occidental Petroleum Corp fell 2.7% to US$78.80 (RM245.07) while the S&P energy index edged lower as oil dropped more than 2% to under US$81 per barrel.

"The trade has been: Weak dollar is good for commodities and is good for any risk-related assets like equities. On dollar weakness, buy those things; on dollar strength, get out of those things," said Bill Strazzullo, partner and chief investment strategist at Bell Curve Trading in Boston.

The euro and the popularly traded S&P E-mini futures contract have tracked each other closely in the last month. In the past 22 sessions, they have had a positive correlation coefficient of 0.89.

The euro had earlier climbed to a high around US$1.4050, but later was trading down 0.3% to US$1.3920.

The Dow Jones Industrial Average gained 38.60 points, or 0.35%, to 11,146.57. The Standard & Poor's 500 Index gained 2.09 points, or 0.18%, to 1,180.26. The Nasdaq Composite Index gained 2.28 points, or 0.09%, to 2,459.67.

Banking stocks were weak as investors continued to wrestle with confusion in the mortgage market and the chance Bank of America might have to buy back mortgages bonds. The stock fell 3.3% to US$11.36 and has lost nearly 16% over the last 7 days.

"People have been talking about Bank of America for the last few days, and they're going to continue to talk about bank of America until they get better direction from management," said Weston Boone, vice president listed trading at Stifel Nicolaus Capital Markets.

Shares in Amazon.com Inc fell sharply after the bell as rising costs at the online retailer offset a jump in revenue. The shares fell nearly 4.2% to US$158 in extended-hours trading.

McDonald's gained 1.3% to US$78.44 after it beat expectations for quarterly profit and same-store sales growth in September.

Travelers gained 0.6% to US$54.98 after the largest publicly traded US property casualty insurer easily beat estimates as premiums rose in its personal insurance lines..

Stocks rose nearly 1% earlier but the gains were trimmed by afternoon trade as the US dollar gained ground. The dollar was up 0.4% against major currencies, while the euro fell 0.3%.

Online auctioneer eBay rose 6% to US$27.19 and Netflix, the movie rental and streaming service, jumped 12.8% to US$172.69 after both reported upbeat results late Wednesday.

Home Depot Inc rose 3.5% to US$31.81. Stifel Nicolaus reiterated its "buy" rating on the stock, citing attractive valuations after a meeting with company executives.

About 8.40 billion shares traded on the New York Stock Exchange, the American Stock Exchange and the Nasdaq ' just below the year's average so far of about 8.77 billion.

Despite the rise in the indexes, declining stocks outnumbered advancers by a small margin on both the NYSE and the Nasdaq. On NYSE 1,507 stocks rose compared to 1,450 that fell, while on Nasdaq the ratio was about three decliners to two advancers. ' Reuters

FBM KLCI up in early trade

KUALA LUMPUR: The FBM KLCI rose on Friday, Oct 22 in line with the overnight gains at Wall Street and European markets as well as the uptrend at key Asian markets on Friday.

At 9.05am, the 30-stock index was up 4.61 points to 1,495.63, lifted by gains including at PPB, IOI Corp and Axiata.

Gainers beat losers by 131 to 22, while 107 counters traded unchanged.

PPB was the top gainer in early trade and was up 14 sen to RM18.52, Lion Forest Industries gained 13 sen to RM2.22, Genting PLANTATION []s added 12 sen to RM8.42, SP Setia and AirAsia rose eight sen each to RM5.03 and RM2.66, Tien Wah and IOI Corp added seven each to RM1.76 and RM5.87, DFZ Capital rose six sen to RM3.65 while Axiata added five sen to RM4.46.

Early decliners included BHIC, Bina Puri, Padini and Maybank.

OSK Research ups TP for Lion Industries Corp to RM2.32

OSK Research has maintained its trading buy call on Lion Industries Corp at RM1.96 and raised its target price for the stock to RM2.32 (from RM2.18) after the company's 73%-owned subsidiary Lion Forest Industries (LFI) announced that its 84.2%-owned Silverstone Corporation (SCB) has disposed of 100% equity interest in Silverstone Bhd for a cash consideration of RM462 million to Toyo Tire & Rubber Co Ltd.

The research house said the net disposal gain of RM140 million to LFI, and the RM102 million that would accrue to Lion Industries' P&L, should be classified as exceptional.

"Although a potential earnings dilution prompts us to slash our estimates by 6.4% for FY6/11 and 12.4% for FY6/12, we are hopeful of the negative implications being compensated by a potential special cash payout of as much as RM233.6 million to Lion Industries, and taking into account the 14 sen enhancement to the company's NTA.

"We are also tweaking our PER multiple to 6 times from 5 times but retain our NTA/share parameter at 0.6 times, after which our 12-month target price is revised upwards to RM2.32. Trading Buy," it said in a note on Friday, Oct 22.

AirAsia keeps soaring

KUALA LUMPUR: AIRASIA BHD [] shares continued to chalk up gains on Friday, Oct 22 after the low cost carrier extended the term of its cooperation agreement with Tune Talk Sdn Bhd (TTSB) up to July 27, 2011 to generate extra revenue and further boost the low-cost carrier's branding.

At 9.20am, AirAsia rose nine sen to RM2.67 with 1.35 million shares done.

Under the terms of the agreement, AirAsia would continue selling any unsold TTSB SIM cards; allow TTSB to continue redeeming unused e-gift vouchers; continue utilising the various advertising platforms; and continue AirAsia's entitlement to be remunerated with a 5% sale commission on total top-up sales.

TTSB is 23.42% owned by Tune Ventures Sdn Bhd, in which both Datuk Seri Tony Fernandes and Datuk Kamarudin bin Meranun are substantial shareholders.

The low-cost carrier has also been in focus lately after several analysts raised their target price and earnings estimates on it.

Analyst raised their target price for the low-cost carrier following the release of its preliminary 3Q operating statistics on Tuesday, which saw revenue passengers kilometre (RPK) increasing 26.6% from a year earlier.

Fajarbaru rises on Halal Park job

KUALA LUMPUR: Fajarbaru Builder Group Bhd shares advanced on Friday, Oct 22 after landing a contract worth RM36.47 million from the East Coast Economic Region Development Council (ECERDC) for the CONSTRUCTION [] of the first phase of the Pasir Mas Halal Park in Kelantan.

At 9.30am, Fajarbaru was up four sen to RM1.08 with 1.55 million shares traded.

On Thursday, Fajarbaru said its unit Fajarbaru Builder Sdn Bhd had received the letter of acceptance from the ECERDC on Tuesday.

It said the construction period was 15 months commencing from the date of possession on Nov 1 this year.

MBSB posts RM40.5m net profit in 3Q

KUALA LUMPUR: MALAYSIA BUILDING SOCIETY BHD [] (MBSB) net profit for the third quarter ended Sept 30, 2010 (3Q2010) fell to RM40.51 million from RM52.68 million a year earlier, due mainly to higher impairment losses on loans advanced and lower income from Islamic banking operations.

Its revenue for the quarter however jumped to RM317.66 million from RM162.37 million in 2009.

For the nine months ended Sept 30, MBSB's net profit surged to RM133.21 million from RM66.91 million a year earlier, due mainly to higher loan and financing income, especially from the expansion of personal financing and higher other operating income from personal financing activities.

These were partly set off by higher operating expenses and higher loan loss impairment, it said in a filing to Bursa Malaysia on Thursday, Oct 21.

MBSB chief executive officer Datuk Ahmad Zaini Othman said the company's sustainability of its profit for the current quarter was due to the right strategies adopted.

He said that as at Sept 30, net loan, advances and financing stood at RM10.5 billion, an increase of 30% as compared with RM8.1 billion as at Dec 31, 2009.

'Expansion of the personal financing sector is the main reason for the impressive growth and we will continue to provide funding to the civil servants at reasonable costs,' he said.

Toyo Tire & Rubber to buy Silverstone for RM462m

KUALA LUMPUR: Toyo Tire & Rubber Co Ltd is acquiring the entire interest in tyre manufacturer Silverstone Bhd representing 203.88 million shares for RM462 million from Silverstone Corporation Bhd.

In a statement on Thursday, Oct 21, Toyo said that as part of its long-term global plan, it was currently at work on the third phase expansion of the Toyo Tire North America Manufacturing Inc facility in the United States, and had commenced CONSTRUCTION [] of a China tire manufacturing plant at Toyo Tires Zhangjiagang Co, Ltd.

"Through this acquisition of Silverstone, the company is now positioned to make a full-scale entry into the fast-growing Southeast Asia market," said its president and chief executive officer Kenji Nakakura.

He said Toyo also planned to commence production of TOYO and NITTO brand tires at this new subsidiary as soon as practicable, while building an export distribution network centered on Asia.

The company also has plans to further improve the quality of the Silverstone brand tire, with the goal of expanding sales throughout Asia, he said.

"By strengthening the foundation of its tire business, the company has established a plan for growth and cost competitiveness.

"In this way, the company aims to increase its corporate valuation," he said.

Fajarbaru gets RM36.47m Pasir Mas Halal Park job

KUALA LUMPUR: Fajarbaru Builder Group has received a contract worth RM36.47 million from the East Coast Economic Region Development Council (ECERDC) for the CONSTRUCTION [] of the first phase of the Pasir Mas Halal Park in Kelantan.

In a filing to Bursa Malaysia on Thursday, Oct 21, Fajarbaru said its unit Fajarbaru Builder Sdn Bhd had received the letter of acceptance from the ECERDC on Oct 19.

It said the construction period was 15 months commencing from the date of possession on Nov 1 this year.

The contract was expected to contribute positively to its earnings for the financial years ending June 30, 2011 and 2012, it said.

OSK Indochina Securities gets license to start securities biz in Cambodia

KUALA LUMPUR: OSK HOLDINGS BHD []'s indirect wholly owned subsidiary OSK Indochina Securities Ltd (OSKIL) has been issued the licence for Securities Firm by Securities and Exchange Commission of Cambodia (SECC).

In a filing to Bursa Malaysia on Thursday, Oct 21, OSK Holdings said the licence permits OSKISL to undertake securities underwriting business, securities dealing business, securities brokerage business and investment advisory business in Cambodia.

It said the licence was issued on Oct 20 by the SECC.

SP Setia launches first integrated green commercial hub in Shah Alam

SHAH ALAM: SP SETIA BHD []'s newly launched first integrated green commercial hub in Shah Alam, Setia City, will have a gross development value (GDV) of RM5 billion once completed within the next 10 to 15 years.

President and chief executive officer of SP Setia Bhd Tan Sri Liew Kee Sin said the 240-acre integrated freehold mixed development, will set a new benchmark where green development is concerned within the Shah Alam skyline.

"It will comprise office towers, hotels, service apartments and a retail mall with all the elements of the concept of live, learn, work and play," he said during the official launch of Setia City on Thursday, Oct 21.

"With the confirmation of the building of three Grade A corporate headquarters for SP Setia, Top Glove Corporation and KHIND HOLDINGS BHD [], Setia City is now ready to be launched as the first integrated green commercial hub serving the Greater Klang Valley," he added.

He also indicated there are also plans to bring in private universities.

According to Liew, the commercial hub will be one of the largest master-planned city centres in the Klang Valley and carry the SP Setia stamp of lush tropical landscapes featuring parks and gardens, as well as lakes and waterways.

"Setia City will also be the first integrated project to have all the buildings certified under the Green Building Index," he highlighted.

Setia City, he said, has managed to attract international and renowned property player, Lend Lease, headquartered in Australia to jointly invest in the development of a retail centre to be known as Setia City Mall.

"The new mall will form the focal point of Setia City.

"The confidence the market has in Setia City Mall has led to the signing of major anchor retailer, Parkson, as well as leading cinema operator Golden Screen Cinemas.

"In addition numerous other specialty retailers have been secured," Liew said.

When complete, the mall he said, will offer a fun and affordable family experience comprising amazing green space, fantastic shops, great food and entertainment. ' Bernama

FBM KLCI closes in positive territory

KUALA LUMPUR: The FBM KLCI closed higher on Thursday, Oct 21, lifted by gains including at CIMB, Genting, KL Kepong and Gamuda.

At 5pm, the benchmark index closed 0.29% or 4.24 points higher at 1,491.02. Gainers led losers by 459 to 301m while 316 counters traded unchanged. Volume was 1.43 billion shares valued at RM1.85 billion.

The index had earlier in the day risen by more than nine points to its intra-day high of 1,495.84, but gave up some of its gains in line with the generally cautious sentiment across key regional markets after China released its third quarter economic data, showing the growth had slowed down.

China's economic growth slowed to 9.6% in the third quarter from a year earlier, down from 10.3% in the second quarter, while inflation rose in September to 3.6%, reaching a 23-month high.

On Bursa Malaysia, CIMB rose nine sen to RM7.98, Genting up eight sen to RM10.60, KLK added six sen to RM19.06, Gamuda up four sen to RM3.85 while IOI Corp gained two sen to RM5.80.

Chin Teck rose 22 sen to RM8.62, MTD rose 19 sen to RM5.79, S P Setia added 18 sen to RM4.95, BRDB, YTL and GAB rose 15 sen each to RM2.42, RM8 and RM8.71 respectively, while JT International added 10 sen to RM5.90.

The top loser was BAT, which fell 68 sen to RM47.32. Dutch Lady fell 16 sen to RM18.30, CBIP down 11 sen to RM3.34, Shell and Warisan slipped 10 sen each to RM10.70 and RM2.42, whiel K-Star Sporst, Glenealy, Far East and Masterskill lost eight sen each to 1.92, RM5.12, RM6.80 and RM3.23 respectively.

Karambunai was the most actively traded stock with 99.2 million shares done.'' The counter slipped one sen to 22.5 sen. Other actives included SAAG, Timecom, Compugates, Berjaya Corp and Maxis.

AirAsia extends agreement with Tune Talk until July 2011

KUALA LUMPUR: AIRASIA BHD [] has extended its the term of its cooperation agreement with Tune Talk Sdn Bhd (TTSB) up to July 27, 2011 as part of its plans to generate extra revenue and further boost the low cost carrier's branding.

In a statement on Thursday, Oct 21, AirAsia said that under the terms of the agreement, it would continue selling any unsold TTSB SIM cards; allow TTSB to continue redeeming unutilized e-gift Voucher; continue utilising the various advertising platforms; and continue AirAsia's entitlement to be remunerated with a 5% sale commission on total top-up sales.

TTSB is 23.42% owned by Tune Ventures Sdn Bhd in which both Datuk Seri Tony Fernandes and Datuk Kamarudin bin Meranun are substantial shareholders.

Global sukuk issuance seen below US$25b in 2011

KUALA LUMPUR/MANAMA: Sukuk issuance in 2011 will likely be less than US$25 billion (RM77.75 billion) as Gulf debt restructurings and state deficit constraints dampen borrowing, a Reuters quarterly poll showed on Thursday, Oct 21.

Issuance is expected to reach US$30 billion this year, according to Kuwait Finance House. Based on this forecast, the poll's estimated sales in 2011 would mark the first decline since 2008 when sales dropped 56 percent.

Sales stood at US$23.3 billion in 2009 and US$14.9 billion in 2008, Standard & Poor's has said.

A recent slew of sukuk sales from Middle Eastern issuers is unlikely to be a trigger for a flood of supply next year as concerns about the global economy weigh on the market, bankers and fund managers who took part in the poll said.

Balance sheet adjustments and credit restructuring in Middle East and North Africa would be the main obstacles to issuance in 2011, said Mohieddine Kronfol, an asset manager at Dubai-based Algebra Capital.

A flurry of recent Gulf sukuk sales, including Islamic Development Bank's US$3.5 billion programme and Qatar Islamic Bank's US$750 million paper, had bred hopes that the market was poised for an upturn, although experts warned that any recovery would be fragile.

Sukuk issuance would be driven by the low interest rate environment, governments' infrastructure funding needs and rising Gulf wealth due to strong crude prices, said Wan Murezani Wan Mohamad, fixed-income analyst at the Malaysian Rating Corporation.

John Sandwick, a Geneva-based Islamic asset manager, said non-Arab and non-Malaysian issuers were likely to turn to the sukuk market to the cover for the over-$1 trillion of new bonds needed to refinance maturing bonds.

"The Western debt absorption rate is handicapped by the current malaise of bad debt on bank, pension fund, insurance company and endowment balance sheets. New sources of capital must be found to cover all this need for debt."

About US$60 billion of debt are set to mature in Gulf Cooperation Council countries next year, Kronfol said.

New issuers such as Kazakhstan are also expected to emerge, although the bulk of issuance is likely to come from Malaysia and the Middle East, the poll's respondents said.

Governments and firms from the infrastructure, telecoms, energy, financial and PLANTATION [] sectors would be the main issuers, they said. ' Reuters

RAM Ratings lifts rating watch on RGB International

KUALA LUMPUR: RAM Rating Services Bhd has lifted the Rating Watch (with a negative outlook) on the ratings of RGB International Bhd's RM200 million Commercial Papers/Medium-Term Notes Programme (2007/2014) (CP/MTN).

Below is the statement issued by RAM Ratings on Thursday, Oct 21 on RGB (formerly Dreamgate Corp Bhd).

At the same time, the respective long- and short-term ratings have been downgraded, from A1 and P1 to BBB3 and P3; the long-term rating carries a negative outlook. RGB is involved in sales and marketing, the provision of technical support, as well as maintenance and management services for gaming and amusement machines/equipment.

The Rating Watch had been placed on 22 September 2010, prompted by our concerns over RGB International's deteriorating financial and liquidity profiles following delays and changes in the proposed disposals of its 40%-interest in Chateau De Bavet (Chateau) casino and the slot machines in 5 Macau Technical Support and Management Services (TSM) concessions. The proceeds from the disposals had been earmarked for the partial repayment (RM49 million) of outstanding CP by end-September 2010.

The rating downgrade is premised on RGB International's very tight liquidity position, deteriorating balance sheet strength and poorer-than-expected recovery of its cashflow-protection measures. RGB International's funds from operations had thinned substantially following the regulatory setback in Cambodia.

The Group continued to chart slower-than-expected progress in replacing its lost income due to persistent delays in the redeployment of the affected slot machines and the commencement of its new TSM outlets.

Meanwhile, with the proposed asset disposals failing to materialise according to the terms and timeframe initially envisaged, the Group will not be able to improve its financial position in the near term although we note that the Group has made some progress with potential buyers for its proposed asset disposals.

RGB International's liquidity position is tight with only cash balances of about RM30.14 million against RM153.75 million of short-term debts as at end-June 2010. The Group's short-term debts mainly comprised non-underwritten CP. As such, its CP remains susceptible to rollover risk. At the same time, we note that the Group is highly dependent on the continued support of its suppliers, as observed from its lengthier payables cycle since 2009.

'The Group's weak operating performance for 1H FYE 31 December 2010 (1H FY Dec 2010) brought its annualised funds from operations (FFO) debt coverage ratio to only 0.14 times as at end-June 2010. As plans to reduce its borrowings have fallen through, its FFO debt coverage is unlikely to recover to about 0.4 times in FY Dec 2010, as previously envisaged,' observes Kevin Lim, RAM Ratings' Head of Consumer and Industrial Ratings.

Meanwhile, the Group has been suffering pre-tax losses for the past 2 years, depressed by impairment expenses and losses from its TSM division after the closure of some TSM concessions in Cambodia.

'Given that its losses are likely to persist over the next few years, RGB International's balance sheet is expected to weaken further, with its gearing ratio envisaged to rise to about 2 times in FY Dec 2011,'' adds Kevin.

In the meantime, the ratings remain supported by RGB International's stable concession revenues over the longer term from its TSM concessions.

The Group's good rapport with its customers and suppliers is also expected to give it an edge over the longer term. Given RGB International's presence in various countries, it is less vulnerable to changes in regulatory conditions in any particular nation.

The negative outlook on RGB International's long-term rating reflects our concern that the Group's financial profile may deteriorate further with the continued delays in its proposed asset disposals, the redeployment of affected slot machines and if its TSM concessions continue to underperform. Should this happen, there may be further downward pressure on its ratings.

However, the outlook may be reverted to stable should the Group be able to address its immediate liquidity strain and demonstrate sustainable improvements in its business and financial profiles.

''

Credit Suisse 3Q net profit down on sluggish trading

ZURICH: Swiss bank Credit Suisse's third-quarter (3Q) net profit tumbled 74% to miss forecasts, as sluggish equities trading halved investment banking earnings from the previous quarter, according to Reuters on Thursday, Oct 21.

Switzerland's No 2 bank by market value behind UBS said net profit fell to 609 million Swiss francs (RM1.97 billion), below a forecast for CHF980 million in a Reuters poll.

Investment banking pre-tax income halved to CHF395 million from an already subdued CHF784 million the previous quarter, as chief executive Brady Dougan's bold strategy to hire investment bankers aggressively in the second quarter failed to pay off immediately with markets flattening.

CS was the first big European bank to report third-quarter numbers after US rivals such as Goldman Sachs posted higher than expected profit this week despite low trading volumes in the US equity market, though Morgan Stanley, which has derisked its trading operations since the credit crisis, surprised with a disappointing loss.

Shares in Credit Suisse were seen trading 2.8% lower at the open, premarket data provided by bank Clariden Leu showed. They have fallen around 15% this year, against a 3% dip in the Stoxx 600 European banks index and a 10% rise in the stock of local rival UBS, playing catch-up to CS's strong rally in 2009.

Earnings at CS's bedrock private bank outstripped the normally more lucrative investment banking segment for a second quarter running.

"We believe the prospects for growth remain very attractive and our private bank is poised to capitalise as markets improve," Dougan said.

The private banking segment attracted CHF12.6 billion in net new client assets, against CHF13.1 billion a year earlier.

Turgid equity markets ate into investment banking earnings, though the fixed income, underwriting and advisory operations performed well, Dougan said.

The two big Swiss banks have cut back on proprietary trading as local regulators urge a stronger focus on traditional wealth management than riskier investment banking, making earnings less volatile but less spectacular than many US counterparts.

CS maintained a strong Tier 1 capital ratio of 16.7% ' one of the highest in the industry ' versus 16.3% at the end of the first half and was on track to meet new international and local capital requirements aimed at reducing bank risk-taking.

"We are well placed to meet these new requirements and at the same time compete and deliver attractive returns to our shareholders," Dougan said. ' Reuters

Wall St bounces on weak dollar, strong earnings

NEW YORK: Wall Street bounced back on Wednesday as a fall in the dollar spurred buying in industrial and commodity-linked shares, while another batch of strong corporate earnings added to gains.

Equities and the greenback have had an inverse relationship lately because the Federal Reserve's ultra-low interest rate policy has led investors to buy riskier assets like stocks and commodities.

"The correlation has come back strongly and much of that has to do with the Fed and the promise of asset purchases," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.

The euro and the popularly traded S&P E-mini futures contract have tracked each other closely in the last month. In the last 22 sessions, they have had a positive correlation coefficient of 0.8, implying a very strong relationship between the two.

Volume was in roughly in line with the average for the year so far but was below Tuesday's high volume selloff.

The Dow Jones industrial average gained 129.35 points, or 1.18%, to 11,107.97. The Standard & Poor's 500 Index rose 12.27 points, or 1.05%, to 1,178.17. The Nasdaq Composite Index added 20.44 points, or 0.84%, to 2,457.39.

Materials shares led the broad market higher. Freeport-McMoRan Copper & Gold gained 2.8% to US$95.35 (RM297.20) and the S&P materials index rose 2%. Commodities gained as the U.S. dollar dropped to a near 15-year low against the yen.

The Boeing Company gave the biggest boost to the Dow, up 3.3% at US$71.36. The company reported a quarterly profit that beat expectations and raised its full-year forecast, helped by a recovery in the commercial airplane market.

Delta Air Lines and US Airways Group jumped after they reported strong profits. Delta surged 10.9% to US$12.97 and US Airways jumped 7.4% to US$10.84.

After the dollar's rise on a surprise Chinese interest rate hike on Tuesday, the currency's change of fortune prompted a snap-back in stocks.

Eaton Corp was among major industrial companies that raised their profit forecasts for the rest of the year, sending its shares up 4.1% at US$86.82.

Earnings from financial companies were mixed. Wells Fargo & Co reported higher earnings, but Morgan Stanley reported a surprise loss.

Wells Fargo rose 4.3% to US$25.60, while Morgan Stanley fell 0.04% to US$25.38. US Bancorp rose 0.1% to US$22.83 after reporting higher earnings.

Regional banks weighed on the KBW Bank Index, which was off 0.5%. Marshall & Ilsley Corp, Wisconsin's largest bank, reported a larger-than-expected loss, sending its shares down 10.2% to US$6.24.

Much of Wall Street's gains since the end of the summer have come from expectations the Federal Reserve will act to bolster the economy.

Keeping those expectations alive, the Fed said in its Beige Book that the U.S. economy grew sluggishly in recent weeks, with scant inflation pressures, adding that employers were reluctant to hire or invest..

About 8.58 billion shares traded on the New York Stock Exchange, the American Stock Exchange and the Nasdaq -- below the year's average so far of about 8.77 billion. Volume in the last session was 9.85 billion.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of about 3 to 1. On the Nasdaq about five stocks rose for every two that fell. -- Reuters

Asian markets turn cautious on China economic slowdown

KUALA LUMPUR: Asian markets, including Bursa Malaysia eased off a little after China reported that its economic growth in the third quarter slowed down and inflation edged up slightly higher.

China's economic growth slowed to 9.6% in the third quarter from a year earlier, down from 10.3% in the second quarter, while inflation rose in September to 3.6%, reaching a 23-month high.

At the mid-day break on Bursa Malaysia, the 30-stock FBM KLCI was up 0.23% or 3.37 points to 1,490.15, lifted by gains including at CIMB, Gamuda, MISC and Genting.

Gainers led losers by 394 to 282, while 296 counters traded unchanged. Volume was 848.43 million shares valued at RM854.41 million.

The ringgit strengthened 0.09% to 3.1150 against the greenback; crude palm oil for the third month delivery rose RM15 per tonne to RM2,999, crude oil slipped 52 US cents per barrel to US$82.02 (RM255.08) while gold fell US$4.10 an ounce to US$1,342.15.

Among the gainers, CIMB, MISC and Genting rose four sen each to RM7.93, RM8.62 and RM10.56 respectively, MAS and YTL Corp added 11 sen each to RM2.33 and RM7.96, Gamuda gained six sen to RM3.87 while Genting Malaysia was up three sen to RM3.54.

Other gainers include Ibraco, GUINNESS ANCHOR BHD [], Genting PLANTATION []s, DiGi, KPJ, Press Metal and Tasek.

BAT was the top loser Thursday morning and fell 44 sen to RM47.56; Ewein and Masterskill fell 10 sen each to 80 sen and RM3.21, DFZ Capital fell eight sen to RM3.51; CBIP, EON Capital and Tan Chong fell seven sen each to RM3.38, RM6.94 and RM5.38 respectively, while Aliran Ihsan Resources and Glenealy lost six sen each to RM1.68 and RM5.14.

Karambunai was the most actively traded counter with 71.5 million shares done. The stock was unchanged at 23.5 sen. Other actives included SAAG, Compugates, Timecom, Gula Perak and Berjaya Corp.

At the regional markets, the Shanghai Composite Index fell 1.3% to 2,964.97, Singapore's Straits Times Index lost 0.53% to 3,162.28, the South Korean Kospi lost 0.22% to 1,866.33 and Hong Kong's Hang Seng Index shed 0.07% to 23,540.47. Meanwhile, Japan's Nikkei 225 rose 0.04% to 9,385.59 and Taiwan's Taiex added 0.22% to 8,142.34.

Frost & Sullivan: Current healthcare business model causing rise in expenditure

KUALA LUMPUR: The current healthcare business model, which is driven by incentives given by insurance providers based on patient visits are causing the rise in healthcare expenditure, according to a survey from Frost & Sullivan.

The business research and consultancy firm said in a statement Thursday, Oct 21 that the present model results in 90% of a country's healthcare expenditure being spent on only 30% of its population, thereby causing the rise in healthcare cost.

'The healthcare system needs to embrace a paradigm shift to incentivize the wellness condition of a person rather than merely treating diseases or sick-care' said Frost & Sullivan senior vice president Reenita Das.

Frost & Sullivan also said that under the current healthcare system, physicians' attention is only focused on 20% of a person's life, whilst another 80% goes neglected.

Medical hours are spent on treating symptoms or diseases rather than ensuring the overall wellness of a person, it added.

'There are huge opportunities for healthcare providers, medical devices sector, pharmaceutical sector and other healthcare verticals to tap into this 'lucrative but yet to be explored area' of a person's life,' it said.

Frost & Sullivan said it expected the cost of healthcare to continue rising as the global ageing population increases under the current healthcare model, unless there is a paradigm shift in the healthcare system towards a patient-centric model.

Air Asia shares climbs after strong 3Q operating statistics

KUALA LUMPUR: Air Asia Bhd shares continued to climb on Thursday, Oct 21, after several analysts raised their target price and earnings estimates on the low-cost carrier.

At 11.17am, Air Asia was up nine sen to RM2.67 with 5.52 million shares done.

Analysts raised their target price for the low cost carrier following the release of its preliminary 3Q operating statistics on Tuesday, which saw revenue passengers kilometre (RPK) increasing 26.6% from a year earlier.

It also saw its load factor grow to 78%, from 75% a year earlier, while available seat kilometre (ASK) grew 11.1%.

Citigroup reiterated buy on the counter and raised its target price to RM2.85, based on 7.5 times on FY11 EV/Ebitdar, while MIDF Research upgraded the stock to buy with a target price of RM2.88 based on FY11 EPS pegged at PER of 8.5 times.

FBM KLCI stays in the black at mid-morning

KUALA LUMPUR: The FBM KLCI stayed in positive territory at mid-morning on Thursday, Oct 21 in line with the gains at key regional markets after the higher overnight close at Wall Street.

At 10am, the 30-stock index was up 8.49 points to 1,495.27, lifted by gains including at KL Kepong, Genting, Sime Darby and Petronas Gas.

Gainers beat losers by 325 to 115, while 247 counters traded unchanged. Volume was 341.20 million shares valued at RM283.03 million.

RHB Research Institute Sdn Bhd said despite the FBM KLCI failing to reclaim the 10-day SMA of 1,488 on Wednesday, it sees a good chance for further near-term recovery as the local and regional markets' performance appeared more resilient than expected.

The research house said it was also encouraged by the solid rotational plays on the lower liners and the selective sectors, which had kept the trading sentiment on an upbeat mode with robust participation in recent sessions.

"Therefore, in our opinion, further recovery to above the 10-day SMA today will attract further follow-through buying support in the near term.

"And once the recent high of 1,503.82 can be cleared, the short-term technical scenario will return to positive as the benchmark gears up to re-challenge the historical high at 1,524.69.

On the downside, the solid medium-term support at 1,450 level and the 40-day SMA of 1,458 are expected to keep sellers at bay, said RHB Research in a note on Thursday.

On Bursa Malaysia, KLK was the top gainer at mid-morning and was up 22 sen to RM19.22; Batu Kawan added 20 sen to RM15.70, Genting was up 16 sen to RM10.68, GAB and Sime Darby added 14 sen each to RM8.70 and RM8.99, Petronas Gas and Press Metal up 12 sen each to RM11.36 and RM1.79, while Kulim, Genting PLANTATION []s and AirAsia added 11 sen each to RM9.40, RM8.41 and RM2.69 respectively.

CHEMICAL COMPANY OF MALAYSIA [] was the top loser and fell five sen to RM2.01, Changhuat and Aliran Ihsan Resources fell four sen each to RM1.21 and RM1.70, Can-One, The Store, EPIC and SapuraCrest lost three sen each to RM1.08, RM2.42, RM2.06 and 96 sen respectively, while MAHB lost two sen to RM5.85.

Karambunai was the most actively traded stock with 47.11 million shares traded. The counter was unchanged at 23.5 sen. Other actives included Compugates, Berjaya Corp, Scomi and Carotech.

At the regional markets, Japan's Nikkei 225 was up 0.20% to 9,400.51, Taiwan's Taiex added 0.21% to 8,141.69, the Singapore Straits Times Index gained 0.19% to 3,185.31, the Shanghai Composite Index rose 0.14% to 3,008.06, the South Korean Kospi up 0.05% to 1,871.43 while Hong Kong's Hang Seng Index opened 0.6% higher at 23,691.44.

More to come for WCT, says MIDF

MIDF Research has maintained its buy recommendation on WCT BHD [] at RM3.11 and raised its target price for the stock to RM4.24, pegged at sectoral'' average of 14.5 times FY11 earnings versus previous valuation of RM3.87.

The research house said WCT's order book ballooned to RM4.4 billion and was still growing after the company landed a RM1.36 billion project in Doha and another RM127 million hospital project in Tuaran, Sabah.

MIDF Research said it was revising its forecast for WCT to take into account the income from the CONSTRUCTION [] of the new contracts, adding it was looking at a possibly higher replenishment target for 2011, as it expects more new domestic-based jobs to awarded in the near future.

"As outlined in the 2011 Budget and the ETP, potential awards include packaged for (i) Klang Valley LRT extension, (ii) Langat 2 water treatment plant, (iii) various highway projects.

"We are of the opinion that more news flow on potential awards could intensify in the next 12 months," it said in a note on Thursday, Oct 21.

FBM KLCI breaches 1,490-point level in early trade

KUALA LUMPUR: The FBM KLCI breached the 1,490-point level in early trade on Thursday, Oct 21 in line with the higher overnight closing at Wall Street, and lifted by gains at key blue chips including Genting, IOI Corp, KLK and CIMB.

At 9.05am, the FBM KLCI was up 7.73 points to 1,494.51. Gainers beat losers by 166 to 19, while 107 counters traded unchanged. Volume was 80.18 million shares valued at RM47.68 million.

The top gainer in early trade was WCT that rose 19 sen to RM3.30; Genting added 16 sen to RM10.68, Hartalega up 13 sen to RM5.58, IOI Corp added 11 sen to RM5.89, KLK and Supermax up 10 sen each to RM19.10 and RM4.83, while CIMB rose eight sen to RM7.97.

Early decliners included Cypark, YTL Land, AZRB and Aeon.

WCT advances after MIDF Research ups target price

KUALA LUMPUR: WCT BHD []'s shares advanced on Thursday, Oct 21 after MIDF Research maintained its buy recommendation on WCT Bhd at RM3.11 and raised its target price for the stock to RM4.24.

At 9.10am, WCT was up 17 sen to RM3.28 with 493,800 shares done.

On Wednesday, WCT said it had secured two separate contracts in Qatar and Malaysia for a total of approximately RM1.49 billion.

MIDF Research said WCT's order book ballooned to RM4.4 billion and was still growing after the company landed a RM1.36 billion project in Doha and another RM127 million hospital project in Tuaran, Sabah.

MIDF Research said it was revising its forecast for WCT to take into account the income from the CONSTRUCTION [] of the new contracts, adding it was looking at a possibly higher replenishment target for 2011, as it expects more new domestic-based jobs to awarded in the near future.

"As outlined in the 2011 Budget and the ETP, potential awards include packaged for (i) Klang Valley LRT extension, (ii) Langat 2 water treatment plant, (iii) various highway projects.

"We are of the opinion that more news flow on potential awards could intensify in the next 12 months," it said in a note on Thursday, Oct 21.

Berjaya Corp active, up on Miti licence to assemble vehicles

KUALA LUMPUR: Berjaya Corp Bhd's shares were actively traded on Thursday, Oct 21 after the company secured a manufacturing plant licence from the Ministry of International Trade and Industry (Miti) for the assembly of commercial vehicles, hybrid cars, electric cars and luxury passenger vehicles in Malaysia. The 100-acre plant will be based at Bukit Tagar, Selangor.

At 9.10am, Berjaya Corp was seven sen to RM1.11 with 9.8 million shares done.

On Wednesday, Berjaya Corp chairman and CEO Tan Sri Vincent Tan said the licence would provide the company the opportunity to assemble commercial and passenger vehicles locally, giving it more flexibility and control in terms of quality and pricing.

"Besides strategically complementing and widening our existing range of motor brands, this will also be a good opportunity for Berjaya Corp to promote green TECHNOLOGY [] through the development of hybrid and electric vehicles, which are more environmentally friendly. In line with this, we hope to expand our market share and develop a more global presence," he said.

Puncak Niaga up on Tamilnadu water project bid

KUALA LUMPUR: PUNCAK NIAGA HOLDINGS BHD [] shares rose on Thursday, Oct 21 after the company said it was bidding for a water supply and treatment project in India.

At 9.30am, Puncak was up six sen to RM2.94 with 30,000 shares traded.

On Wednesday, Puncak said it had entered into two separate joint venture agreements with P&C CONSTRUCTION []s (P) Ltd in India to jointly bid the for water supply and flourosis mitigation project called the Tamilnadu Water Supply and Drainage Board in India.

In a filing to Bursa Malaysia, Puncak Niaga said together with P&C Constructions, it would form a joint venture (JV) called PNHB-P&C Joint Venture to bid for Packages III and V of the Hogenakkal project for the Dharmapuri and Krishnagiri districts.

Puncak Niaga will lead the JV with a 60% stake while P&C Constructions will have 40%.

WCT lands two projects worth RM1.49b in Qatar and Sabah

KUALA LUMPUR: WCT BHD [] has secured two separate contracts in Qatar and Malaysia worth a total of approximately RM1.49 billion.

In a filing to Bursa Malaysia on Wednesday, Oct 20, WCT said it had been awarded a contract by the government of Qatar to build and maintain a government administrative building in Doha for a lump sum equivalent to RM1.36 billion.

It said the works for this project were expected to be completed by April 2013.

In a separate announcement, WCT said it had accepted a contract from the Public Works Department Malaysia to design, build and maintain the Tuaran Hospital in Sabah for RM127.8 million.

It said the project was expected to be completed on May 1, 2013.

WCT said the two projects would not have any material impact on its earnings for the financial year ending Dec 31, 2010 but were expected to contribute positively to its future earnings.

Bintulu Port invited to submit detailed plans for Samalaju Port

KUALA LUMPUR: BINTULU PORT HOLDINGS BHD [] has received a letter of intent from the Sarawak state government to submit a detailed proposal for the development, management and operation of the Samalaju Port.

In a filing to Bursa Malaysia on Wednesday, Oct 20, Bintulu Port said the proposal, if accepted and approved, would result in its appointment to build, own, operate and manage the new port.

'The State Government of Sarawak has decided to establish a State Port at Samalaju to serve the industries to be located within the Sarawak Corridor for Renewal Energy (SCORE).

'The State Government, in consultation and agreement with the Federal Government, has decided that Bintulu Port Holdings Berhad or its wholly owned subsidiary should develop and operate the new Samalaju Port,' it said.

Bintulu Port said the terms and conditions, including the duration for such appointment, would have to be agreed between the state government and itself, in accordance with the requirements of Section 3(1) of the Port Authorities Ordinance, 1961 (No.1 of 1961).

Axis REIT 3Q net profit surges to RM24.26m

KUALA LUMPUR: Axis Real Estate Investment Trust (REIT) net profit for the third quarter (3Q) ended Sept 30, 2010 surged to RM24.26 million from RM10.25 million a year ago, on the back of revenue RM22.39 million.

Earnings per share was 7.6 sen, while net assets per share was RM1.89.

For the nine months ended Sept 30, its net profit rose to RM60.41 million from RM33.21 million in 2009.

Commenting on its prospects, Axis REIT said it was optimistic that in view of the current satisfactory performance of its existing investment portfolio and its growth strategy to actively pursue quality acquisitions, it will be able to maintain its current performance for the coming quarter and the rest of the financial year ending Dec 31, 2010.

Berjaya Corp gets MITI approval to assemble vehicles

KUALA LUMPUR: BERJAYA CORPORATION BHD [] has secured a manufacturing plant licence from the Ministry of International Trade and Industry Malaysia for the assembly of commercial vehicles, hybrid cars, electric cars and luxury passenger vehicles in Malaysia.

The 100-acre plant will be based at Bukit Tagar, Selangor Darul Ehsan.

In a statement Wednesday, Oct 20, Berjaya Corp chairman and chief executive officer Tan Sri Vincent Tan said the manufacturing licence would provide the company the opportunity to assemble commercial and passenger vehicles locally, giving it more flexibility and control in terms of quality and pricing.

'Besides strategically complementing and widening our existing range of motor brands, this will also be a good opportunity for Berjaya Corp to promote green TECHNOLOGY [] through the development of hybrid and electric vehicles, which are more environmentally friendly. In line with this, we hope to expand our market share and develop a more global presence,' he said.

Tan said the Berjaya group had considerable experience in the automobile business, with rights to distribute, market and sell world-renown car brands such as Mazda, Chana Era, Skoda, Jinbei, including Mercedes Benz commercial vehicles and Aston Martin vehicles.