#Stocks to watch:* MMHE, Freight Management, MAHB, L&G

KUALA LUMPUR: Key regional markets are expected to continue their consolidation on Monday, Nov 1 after US stocks ended on a flat note on Friday, ahead of the US Federal Reserve meeting on Wednesday but Bursa Malaysia could buck the other markets due to domestic factors and liquidity.

According to Reuters, investors kept trading to a minimum this week in anticipation of next Wednesday's announcement. Activity the last several weeks has been heavily influenced by hopes for a large round of asset buying.

Last Friday, the Dow Jones industrial average added 4.54 points, or 0.04%, to 11,118.49. The Standard & Poor's 500 Index shed just 0.52 of a point, or 0.04%, to 1,183.26. The Nasdaq Composite Index edged up just 0.04 point to 2,507.41.

For the month of October, though, it was a solid upswing, with the S&P 500 gaining 3.7 percent, while the Dow advanced 3.1 percent and the Nasdaq jumped 5.9 percent.

After a two-month rally in the stock market, some investors are about to see if they get what they wished for: more Republicans in Congress and lots of cheap money.

At Bursa Malaysia, there could be some profit taking after the late rally on Friday, which pushed the FBM KLCI nearer the all time closing high of 1,516 on Jan 11, 2008.'' The FBM KLCI closed 6.22 points higher at 1,505.66 as market sentiment turned for the better despite the weaker regional markets.

Marine and Heavy Engineering Holdings Bhd (MMHE) was in focus, closing at RM4.51, up 71 sen from its institutional offer price of RM3.80. The retail price was RM3.61.

However, sentiment could be underpinned ahead of the launch of the prospectus of Petronas Chemicals Group Bhd next Tuesday.

Stocks to watch include MMHE, whose share price had exceeded nearly all analysts' expectations, Freight Management, Malaysia Airports Holdings Bhd (MAHB) and Land & General Bhd.

Freight Management is focusing its expansion plans across Asean to diversify its earnings base so that it is not exposed to risks in one country segment alone, according to The Edge Weekly.

MAHB posted net profit of RM61.82 million for the third quarter ended Sept 30, 2010, down 25.9% from the RM83.43 million a year ago due to a higher share of losses in an associate company.

MAHB said revenue rose 18.2% to RM446.28 million from RM377.36 million. Earnings per share were 5.62 sen versus 7.59 sen.

L&G share price is trading at fresh highs as the company is now cash rich and almost debt free following a debt restructuring, capital reduction exercise and redemption of its final tranche of secured paper, according to The Edge Weekly.

GLOBAL MARKETS-Bonds rally, dollar slips before eventful week

NEW YORK: Bond prices jumped and the dollar eased on Friday, Oct 29 after data showed the U.S. economy grew in the third quarter but not briskly enough to alter expectations of Federal Reserve monetary easing next week.

U.S. Treasuries gained after the government's estimate of gross domestic product was in line with analysts' forecasts of a 2.0 percent rise. But a bigger-than-expected gain in business inventories pointed to underlying weakness in the U.S. economy.

Trading was subdued in anticipation of a Fed announcement next Wednesday and the outcome of U.S. elections on Tuesday, with polls indicating Republicans will wrest control of the U.S. House of Representatives.

Treasuries also rallied as the GDP reported showed core inflation under 1 percent, which supported expectations the Fed would try to support the economy by buying assets.

The 30-year bond outperformed shorter maturities, gaining 38/32 in price to yield 3.99 percent. The benchmark 10-year note rose 18/32 in price to yield 2.60 percent.

"We're going to be in a prolonged period of relatively low interest rates," said James Sarni, managing principal and senior portfolio manager at Los Angeles-based Payden & Rygel, with $55 billion in assets under management.

Fed policymakers are expected to announce new bond purchases to push borrowing costs lower and energize a sluggish recovery when their two-day meeting ends on Wednesday. A recent Reuters poll of economists found they expected the Fed to buy between $80 billion and $100 billion a month.

The dollar index, a gauge of its performance against six major currencies, edged lower while the Japanese yen hovered near its record peak in 1995 of 79.75 yen to the dollar.

Investors bet the Bank of Japan will not intervene to weaken the yen before the Fed's announcement next week. The dollar slipped 0.65 percent at 80.47 against the yen and the Dollar Index was down 0.18 percent at 77.17.

ANEMIC U.S. GROWTH

Global stocks edged higher, with European shares posting a second consecutive monthly gain, but Wall Street trading was flat after the GDP report met analysts' forecasts.

MSCI's all-country world index rose 0.1 percent.

Investors are betting volatility will rise and have hedged against unexpected outcomes from the Fed meeting and the elections. The CBOE Volatility Index rose 13.1 percent for the week.

"There's no getting around how big of a week next week is, and it could be an inflection point either up or down," said Max Bublitz, chief investment strategist at SCM Advisors in San Francisco.

The Dow Jones industrial average gained 4.54 points, or 0.04 percent, at 11,118.49. The Standard & Poor's 500 Index slid 0.52 point, or 0.04 percent, at 1,183.26. The Nasdaq Composite Index was up 0.04 point at 2,507.41.

Gold rose 1 percent, setting a 10-day high, as the weaker dollar prompted investors to buy ahead of the Fed meeting.

News that security officials in Britain and Dubai intercepted parcel bombs being sent from Yemen to the United States aboard cargo flights shook investors, also prompting gold buying.

U.S. gold futures for December delivery settled up $15.10 at $1,357.60.

Oil prices fell on the tepid U.S. economic data, while end-of-month positioning and profit-taking, along with the expiration on Friday of U.S. November refined oil products contracts, also were cited as factors.

U.S. crude for December delivery settled down $1.08 at $81.10 a barrel. But oil posted its second straight monthly gain and the first monthly close above $80 a barrel since April.

In London, ICE Brent December crude settled down 44 cents at $83.59 a barrel.

The euro was down 0.06 percent at $1.3923.

Japan's Nikkei share average fell 1.7 percent to a one-month low while the MSCI index of Asia Pacific stocks outside Japan slipped 0.3 percent. - Reuters

US STOCKS-Solid October ends flat ahead of Fed, elections

NEW YORK: U.S. stocks ended on a flat note on Friday, Oct 29, wrapping up another strong month driven by expectations the Federal Reserve will flood the economy with cash next week.

Investors kept trading to a minimum this week in anticipation of next Wednesday's announcement. Activity the last several weeks has been heavily influenced by hopes for a large round of asset buying.

While earnings have largely taken a back seat to macroeconomic data, Microsoft Corp's stock rose 1.5 percent to $$26.67 a day after its profit beat estimates on higher sales of its flagship software.

Investors are betting on volatility to rise after Wednesday's announcement and have been hedging against unexpected outcomes from the Fed meeting, as well as Tuesday's midterm elections. The CBOE Volatility Index climbed about 13 percent this week, even as stocks rose marginally.

"There's no getting around how big of a week next week is, and it could be an inflection point either up or down," said Max Bublitz, chief investment strategist at SCM Advisors in San Francisco.

The midterm elections have also garnered investor attention, with polls indicating a Republican takeover of the U.S. House of Representatives.

On the downside, Dow components Chevron Corp and Merck & Co, fell after posting quarterly results. Chevron fell 2.2 percent to $82.61 on a weaker-than-expected profit, while Merck lost 1.8 percent to $36.28 after its sales disappointed investors.

The Dow Jones industrial average added 4.54 points, or 0.04 percent, to 11,118.49. The Standard & Poor's 500 Indexshed just 0.52 of a point, or 0.04 percent, to 1,183.26. The Nasdaq Composite Index edged up just 0.04 point, or 0.00 percent, to 2,507.41.

For the week, the Dow dipped 0.1 percent while the S&P 500 edged up only 0.02 percent and the Nasdaq added 1.1 percent.

A HEALTHY OCTOBER

For the month of October, though, it was a solid upswing, with the S&P 500 gaining 3.7 percent, while the Dow advanced 3.1 percent and the Nasdaq jumped 5.9 percent.

U.S. economic growth edged up as predicted in the third quarter, but not enough to chip away at high unemployment or change expectations of more monetary easing from the Federal Reserve next week.

In another snapshot of the economy, the Thomson Reuters/University of Michigan's survey showed that consumer sentiment weakened slightly in October, dropping to its lowest level in almost a year.

The week of Nov. 1 marks the final peak week of the third-quarter earnings season, as 94 S&P 500 companies and two Dow components are expected to report.

With 335 S&P 500 companies having reported so far, some 77 percent have beaten earnings estimates. That is just shy of the record beat rate of 79 percent in the third quarter of 2009, according to Thomson Reuters data.

Volume was light, with about 6.9 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below the year-to-date daily average of 8.73 billion.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of 17 to 11, while on the Nasdaq, seven stocks rose for nearly every six that fell. - Reuters

CIMB Group takes lead in fostering closer China-ASEAN relations

KUALA LUMPUR: The CIMB Group will take the role as the representative bank for Malaysia in fostering closer China-ASEAN relations.

CIMB Group, together with other major Asean financial institutions had on Friday, Oct 29 signed a framework agreement with China Development Bank Corporation (CDBC).

The framework would formalise the setting up of the China-Asean Interbank Association (CAIBA), which was proposed by China at the China-ASEAN Foreign Ministers' Meeting in Hanoi on July 22.

Initial members of the CAIBA include Bank Islam Brunei Darussalam Bhd, Canadia Bank PLC, PT Bank Mandiri (Persero) Tbk., Laos Development Bank, Myanmar Foreign Trade Bank of the Union of Myanmar, Banco de Oro Unibank, DBS Bank Ltd, KasikornBank Public Company Limited and Bank for Investment and Development of Vietnam.

Deputy CEO, Corporate & Investment Banking, CIMB Group Datuk Charon Wardini Mokhzani represented the group.

'CIMB is and has consistently been a strong advocate of regional integration. We believe the private sector should be active participants in these integration initiatives,' he said.

Charon added the association would enable the building of long term cooperation with other member banks as well as look into providing more extensive financial services for cooperation between China and Asean countries.'

The development objectives of the China-ASEAN Interbank Association include:

* Achieving a mutually-beneficial social and economic development of China and ASEAN by promoting mutual trade and investment, as well as financing and providing the relevant financial services for the infrastructure CONSTRUCTION [] and other projects supported by the governments of China and ASEAN countries;

* Building a long-term cooperative relation with other member banks on the principle of equality and mutual benefits, while providing more extensive financial services for the cooperation between China and ASEAN countries in key areas; and

* Enhancing the endogenous motivation for China and ASEAN regional economic development and to respond actively to the opportunities and challenges brought about by economic globalisation.

MARC places Petra Perdana RM800m dual currency on MARCWatch Negative

KUALA LUMPUR: Malaysian Rating Corp Bhd has placed its A+ rating on PETRA PERDANA BHD []'s RM800 million dual currency revolving facility on MARCWatch Negative.

The rating agency said on Friday, Oct 29 the rating action was triggered by the group's poor financial performance in the six months ended June 30, 2010 (1H2010).

During the period, Petra Perdana posted loss before tax of RM30.7 million due to falling charter rates, lower capacity utilisation and decrease in contribution from its integrated brownfield services division.

'Due to its inability to secure adequate contracts, six of its 23 offshore support vessels are currently in lay-up and are awaiting disposal,' it said.

MARC also highlighted Petra Perdana group's cash balances as at June 30, 2010 has declined to RM32.9 million (December 2009: RM179.7 million) due to negative net cashflow from operating activities of RM63.9 million and net repayment of its other borrowings amounting to RM101.6 million during the period.

Its short-term liquidity is supported by its private placement and rights issue exercises which raised'' RM111.7 million.

'However, MARC opines that Petra Perdana's credit metrics is no longer consistent with its current rating level, due to its significantly weaker cash generation ability, relative to its fairly high ongoing debt servicing requirements.

'The group's leverage remains elevated as at June 30, 2010 as measured by its adjusted debt-to-equity including operating lease commitments of 2.28 times,' it said.

MARC said it was in the process of completing its review on Petra Perdana and expected to complete the review over the next four to five weeks.

Petra Perdana is an offshore marine services provider which operates 23 offshore support vessels and owns 29.6% of PETRA ENERGY BHD [].

Two Seloga shareholders seek removal of Samsudin as ED

KUALA LUMPUR: Two shareholders of SELOGA HOLDINGS BHD [], owning a combined 21% stake, have called for a general meeting to remove Datuk Samsudin Abu Hassan as a director with immediate effect.

Seloga said on Friday, Oct 29 that it had received a letter from Usaha Citra and Zulkefli, who hold 25.54 million shares and 249,800 shares, or a combined 21%, that they were exercising their right to call for a general meeting to pass the resolution to remove Samsudin, who is an executive director.

The proposal to remove him came just a day after several board changes. On Thursday, Mohd Noor Hassan, Teoh Kim Loon, Helmi Faisal Fuad and Jeyaratnam Velupillai were appointed independent and non-executive directors.

Seloga posted net profit of RM4.87 million in the second quarter ended June 30, 2010 compared with RM3.60 million a year ago.

IOI Corp exec chairman sees CPO hitting RM3,300

KUALA LUMPUR:'' The wet weather caused by the La Nina will likely push the crude palm oil (CPO) futures to RM3,300 per tonne by the first quarter of 2011, says IOI Corp group executive chairman.

Tan Sri Lee Shin Cheng said on Friday, Oct 29 that 'RM3,400 is possible if La Nina sets in,' adding that the current CPO futures had not taken into consideration the weather yet.

'If you take the bad weather into consideration then RM3,300 and RM3,400 is not a dream. It is a reality,' he said, when asked to comment on a forecast that CPO futures would hit between RM3,300 to RM3,400.

Asked if the CPO rally is sustainable, Lee said there would always be a cycle for the CPO prices.

CPO third-month futures closed RM24 down at RM3,061 on Friday.

Credit Suisse Research, had in a recent report, forecast a year-end seasonal rally, possibly until early 2011 for CPO.

It said palm oil spot prices have breached the RM3,000 level, and is now at a 27-month high. Year-to-date (YTD), palm oil spot prices have averaged RM2,599 a tonne, up 18% year-to-date

FBM KLCI eyes all-time high, MMHE in limelight

KUALA LUMPUR: Late buying on index-linked stocks on Friday, Oct 29 pushed the FBM KLCI closer the all time high of 1,516 on Jan 11, 2008 as sentiment was underpinned by the listing of Marine and Heavy Engineering Holdings Bhd (MMHE).

The FBM KLCI closed 6.22 points higher at 1,505.66. Market sentiment turned for the better, with advancing counters beating decliners 436 to 380 while 287 stocks were unchanged. Turnover was 1.46 billion shares valued at RM2.34 billion.

MMHE closed at RM4.51, up 71 sen from its institutional offer price of RM3.80. The retail price was RM3.61. There were 142 million shares transacted.

Analysts said the listing of MMHE provided the much needed spark for the market which had seen some consolidation after failing to close above the key 1,500 level in recent days.

Research houses had target prices for MMHE ' a leading heavy engineering and marine services provider -- ranging from RM4 to as high as RM4.72, which is a premium of between 10.8% and 30.7%, based on the retail price of RM3.61. The institutional price is RM3.80.

Analysts said the MMHE would be part of fund managers' portfolio and would definitely attract strong interest.'' They expected the shares to make a strong debut, which would in turn also generate excitement for the launch of Petronas Chemicals Group Bhd next Tuesday.

Among the index-linked stocks of the FBM KLCI, CIMB rose 10 sen to RM8.29, Axiata Group gained seven sen to RM4.49, pushing the index up by a combined 3.21 points. GENTING BHD [] added 16 sen to RM10.44 and Genting Malaysia advanced 10 sen to RM3.50, piling a combined 2.37 points to the index.

KL Kepong 24 sen to RM19.80, DiGi.com 14 sen to RM25.34 and MISC 11 sen to RM8.78.

Reuters reported that in Hong Kong, stocks edged lower on Friday, closing out a second week of losses as financials weighed on disappointing results and as investors pumped money into shares of AIA which jumped 17 percent on its debut.

The benchmark Hang Seng index ended down 0.49% at 23,096.32, closing below a previously long-held resistance level at 23,100 and sparking concern that the break above that level would not hold.

AIA Group Ltd climbed to HK$23.05 in its Hong Kong debut on Friday as investors, chasing exposure to Asia's fast-growing life insurance business, piled into the record offering in the world's hottest IPO market.

In Tokyo, Japan's Nikkei average fell 1.8% to a seven-week closing low on Friday as disappointing earnings hit shares of companies such as Sharp, with downward momentum accelerating after the index breached a key technical support level.

Investors were keen to lighten long positions ahead of the weekend and before a blizzard of earnings reports due after the close on Friday and a highly anticipated Federal Reserve policy-setting meeting on Nov. 2-3.

The benchmark Nikkei ended down 163.58 points at 9,202.45, its lowest close since Sept. 9, while the broader Topix slipped 0.4% to 810.91.

Traders said foreign brokerages could be actively selling in

So far this year, the Nikkei has lost nearly 13%, while the Dow Jones industrial average has gained 6.6% and Britain's FTSE 100 is up about 5%.

''

BNM: Banking system well capitalised

KUALA LUMPUR: Malaysia's banking system remained well-capitalised with the risk-weighted capital ratio (RWCR) and core capital ratio at 14.8% and 13.1% respectively in September.

Bank Negara said on Friday, Oct 29 the level of non-performing loans (NPLs) including impaired loans improved in September to account for 2% of net loans, attributable to lower amount of new defaults and management of impaired assets by a banking institution.

In its monetary and financial developments report for September, it said loan loss coverage remained above 90%.

On the monetary conditions, it said interbank rates were stable in September. In terms of retail interest rates, the average base lending rate (BLR) of commercial banks was unchanged at 6.27%. Retail deposit rates were also stable.

'Broad money (M3) increased during the month, reflecting mainly higher credit extension by the banking system to the private sector. The increase in M3 was also supported by foreign inflows,' it said.

Bank Negara said net financing to the private sector increased by RM10.4 billion in September due mainly to higher PDS issuances and loan disbursements during the month. PDS issuances increased due mainly to a large scale issuance by a telecommunications company,' it said.

Loans outstanding to businesses expanded reflecting mainly higher loans extended to the CONSTRUCTION [], manufacturing and finance, insurance and business services sectors. Household loans also continued to increase.

Meanwhile, loan applications from businesses and households moderated from their relatively high levels in September.

As for the consumer price index (CPI), it moderated in September as reflected in a slower rate of increase of 1.8% on an annual basis.

The central bank said this was primarily driven by slower price increases in the food and non-alcoholic beverages and transport categories.

Commenting on the ringgit in September, Bank Negara said the performance of the local unit against the currencies of Malaysia's major trade partners was mixed.

The ringgit appreciated against the US dollar and Japanese yen, but depreciated against the Chinese renminbi, Singapore dollar and the euro.

The positive growth outlook for Asia relative to the developed economies saw regional currencies appreciating against the US dollar. Investor expectations for further monetary easing by the US Federal Reserve also lifted sentiments towards regional financial markets.

'Domestically, the FTSE Group's upgrading of Malaysia's capital market from 'secondary emerging' classification to 'advanced emerging' also further enhanced sentiments towards Malaysia,' it said.

As for Bank Negara's international reserves, they were RM322.7 billion (US$104.6 billion) as at'' Oct 15, sufficient to finance 8.7 months of retained imports and were 4.5 times the short-term external debt.

Bursa Malaysia Derivatives offers Internet trading for futures products

KUALA LUMPUR: Bursa Malaysia Derivatives has launched of its Internet connectivity facility for futures traders to trade its derivatives products directly via the web-version of BMD Order Management System (BMD OMS).

Bursa Malaysia Derivatives chief executive officer Chong Kim Seng said this additional facility t provided an efficient and cost-effective platform for traders, especially those from the retail segment to participate in the derivatives market.

'This additional channel is aimed to enhance connectivity and spur market participation in our market. The Internet trading connection will allow retail participants to enjoy speedier and greater accessibility to trade our products. With the increasing reach, we definitely look forward to a more robust growth in the retail segment,' he said.

Before the introduction of this Internet connectivity facility, clients of derivatives brokers, both retail and institutional, had to place their orders through their brokers; whereas high volume traders used direct market access facility.

Tenaga slips, more headwinds ahead

KUALA LUMPUR:TENAGA NASIONAL BHD []'s share price slipped in late afternoon on Friday, 29, as analysts expected more challenges ahead, with Maybank Investment Bank Bhd Research (Maybank IB) maintaining a Sell call with an unchanged target price of RM7.50

At 3.48pm, Tenaga was down five sen to RM8.82. There were 8.32 million shares transacted at prices ranging from RM8,81 to RM8.88.

Maybank Research said it expected more challenges ahead for Tenaga due to higher higher coal prices and gas supply constraints.

It said the power giant's 4Q net profit plunged 23% on-quarter to RM414 million on seasonally high "other costs" and rising coal prices.

"The final dividend was raised to 20 sen/share, but the 3% gross full-year yield is still not particularly compelling. We tweak our EPS forecasts on post-result housekeeping and still expect FY11 net profit contraction on higher coal prices," it said.

Maybank Research said the market had focused on its low 13% foreign ownership and gains from a weak US dollar.

"However, we see higher coal prices and gas supply constraints as the key issues. We maintain our below-consensus earnings forecasts. It could be even worse if gas supply constraints force Tenaga to burn costly distillate to meet power demand growth," it said.

CIMB Niaga 9-month profit at 1.79 trillion rupiah, up 56%

KUALA LUMPUR: PT Bank CIMB Niaga Tbk registered a strong set of earnings in the nine months ended Sept 30, 2010 with consolidated net profit at 1.79 trillion rupiah, up 56% from the previous corresponding period.

CIMB Niaga vice chief executive officer & corporate banking director Catherine Hadiman said: 'The profit increased as operating income went higher and allowance lower following improvement of the quality of the company's assets.'

CIMB Niaga reported an improvement in its operating cost by reducing the cost-to-income ratio to 49.03% as at September 2010 from 50.63% last year.

The bank said the total assets as at Sept 30, were 129.14 trillion rupiah, up by 28% from 101.09 trillion rupiah in the previous corresponding period.

'CIMB Niaga saw a 29% hike in credit total ' from 74.52 trillion rupiah recorded on Sept 30, 2009 to 96.29 trillion rupiah on Sept 30, 2010,' it said, attributing the better performance to growth in corporate, business and retail lending (24%, 29% and 32% respectively) from a year ago.

As loan total increased, CIMB Niaga reported a loan-to-deposit (LDR) ratio of 89.31% in September 2010.

It added that over 11% of its loans went to customers outside Java, reflecting a strategy of even loan distribution in Indonesia.

FBM KLCI lower at midday

KUALA LUMPUR: The FBM KLCI slipped into the red at the mid-day break on Friday, Oct 29 as investors turned cautious following weakening of Asian stocks that dragged the MSCI Asia Pacific Index to its second weekly decline.

At 12.30pm, the KLCI was down 0.63 points to 1,498.81, dragged by losses in Public Bank, Genting, Tenaga Nasional, IOI Corp and Telekom Malaysia. Losers outpaced gainers by 387 to 280, while 296 counters traded unchanged. Volume was 850.31 million shares valued at RM1.218 billion.'''' ''

The ringgit weakened to 3.112 per US dollar; spot gold added US$3.70 an ounce to US$1,340.95 (RM4,156.95), while crude palm oil futures for December delivery fell RM22 to RM3,059 per tonne.

On Bursa Malaysia, Public Bank and Genting each shed 6-sen to RM12.70 and RM10.22 respectively. Heavyweights like Tenaga dropped 4-sen to RM8.83 while IOI and Telekom each dipped 2 sen to RM5.81 and RM3.36 respectively.

Among the gainers, MMHE jumped 80-sen to RM4.60, Nestl'' added 40-sen to RM44.0, AIA-C1 grew 28.5 sen to 43.5 sen, YTL Land rose 22 sen to RM1.50 while DiGi grew 12-sen to RM25.32.

MMHE was the most actively traded stock at midday with 115.87 million shares done followed by Talam turnover at 72.12 million units. The market was mixed in early trade on Friday, Oct 29 with the FBM KLCI still marginally above the key 1,500 level, but trading interest was on MMHE.

For the regional markets, the midday results are as follows:

Hang Seng Index -0.73% 23,042.03 Taiex -0.72% 8,293.53 Straits Times Index +0.01% 3,129.68 Nikkei 225 -1.60% 9,216.32 Kospi -1.44% 1,880.43 Shanghai Composite Index -0.85% 2,967.22

MAHB 3Q net profit down 25.9% to RM61.8m

KUALA LUMPUR: Malaysia Airports Holdings Bhd posted net profit of RM61.82 million for the third quarter ended Sept 30, 2010, down 25.9% from the RM83.43 million a year ago due to a higher share of losses in an associate company.

MAH said on Friday, Oct 29 that revenue rose 18.2% to RM446.28 million from RM377.36 million. Earnings per share were 5.62 sen versus 7.59 sen.

'The improved revenue in the current quarter under review was mainly contributed by the group's airport operations, driven by a stronger recovery in air travel demand. Passenger movements for the current quarter were 6.6% higher than the corresponding period last year, in which the international and domestic passenger movements improved by 13.5% and 0.7% respectively,' it said.

MAHB added the improved revenue was also contributed by growth in the retail business as well as higher rental revenue derived from additional commercial spaces.

For the nine months, it said earnings fell 18.2% to RM193.92 million from RM237.15 million. Revenue rose 13.6% to RM1.318 billion from RM1.16 billion.

'The improvement in revenue for the financial period-to-date under review was mainly contributed by a positive growth of 14.9% from the airport operations, driven by an increase in both aeronautical and non-aeronautical revenue of 13.1% and 17.0% respectively,' it said.

MAHB said the improvement in non-aeronautical revenue was mostly derived from retail businesses as well as rental of available commercial spaces.

It added that passenger movements were 15.1% higher than the corresponding period last year, in which the international and domestic passenger movements improved by 25.2% and 7.0% respectively.

On the profit before tax and zakat (PBT) for the current quarter and financial period-to-date under review, it said it was lower than the corresponding period last year by 17.9% and 9.5% respectively, mainly due to the adoption of FRS 139.

This resulted in the higher share of losses in an associate company, whereby, the concession payable by the associate company was recognized at fair value and subsequently at amortised cost.

Bursa Securities rejects Tricubes bid to waive Guidance Note 3

KUALA LUMPUR: Bursa Malaysia Securities has rejected TRICUBES BHD []'s application for a waiver to comply with the Guidance Note 3 of the ACE Market Listing Requirement.

The company said on Friday, Oct29 that following the rejection of the application, it was deemed an affected listed issuer.

Tricubs had triggered Paragraph 2.1(f) of the GN3 whereby the auditors expressed a modified opinion with emphasis on Tricubes's going concern in the latest audited financial statements for the financial year ended March 31, 2010.

The company would have to submit to Bursa Securities a regularisation plan and obtain the latter's'' approval to implement the plan within 12 months from the date the company announced that it was a GN3 company.

Nikkei hits 7-wk closing low, breaches key support

TOKYO: Japan's Nikkei fell 1.8 percent to a seven-week closing low on Friday, Oct 29 as disappointing earnings hit shares of companies such as Sharp, with downward momentum accelerating after the index breached a key technical support level.

Investors were keen to lighten long positions ahead of the weekend and before a blizzard of earnings reports due after the close on Friday and a highly anticipated Federal Reserve policy-setting meeting on Nov. 2-3.

The benchmark Nikkei ended down 163.58 points at 9,202.45, its lowest close since Sept. 9.

The broader Topix slipped 0.4 percent to 810.91.

Technical sentiment towards the Nikkei faltered as it dropped below closely watched support at 9,300 for the first time since Sept. 15, traders said, the day when share prices jumped sharply after Japanese authorities intervened in the currency market for the first time in six years.

The 9,300 area is a key region of support based on the Nikkei's daily Ichimoku cloud.

Hurt by worries about the strength of the yen and its impact on corporate earnings, the Nikkei shed 1.8 percent in October, its biggest monthly fall since August. It fell 2.4 percent on the week, also its worst weekly fall in two months. - Reuters

Cellphone market slowing, smartphones still boom

HELSINKI: Cellphone market growth slowed slightly in the September quarter due to worries over economic growth and component shortages, and the market growth would slow further in the current quarter, researchers said on Friday, Oct 29.

The phones market -- the largest volume electronics industry -- has surged this year from a slump in 2009 when the recession hit consumer spending on the latest gadgets around the world.

Strategy Analytics (SA) said the overall annual market growth slowed to 13 percent in the third quarter, from 16 percent in the first half, and forecast growth to slow further to 10 percent in the fourth quarter.

"Component shortages and ongoing economic volatility slightly constrained volumes," said analyst Neil Mawston.

"We expect the escalating smartphone wars to provide positive upside for handset volumes in the fourth quarter, but the volatile supply of certain components will mean some vendors may not be able to deliver their fully desired output of phones."

Several handset makers, including Nokia and Sony Ericsson, said component shortages dragged their sales in the quarter below expectations.

"The hangover from the economic downturn persisted with constrained component supply impacting performance," said CCS Insight analyst Geoff Blaber.

"We expect supply to remain a problem in the fourth quarter as an abundance of smartphones and a swathe of tablet devices increases pressure on component supply," Blaber said.

SMARTPHONE BOOM

The smartphone market continued to surge in the quarter, with Apple's iPhone sales rising 91 percent from a year ago, making it the No. 4 global handset vendor measured by volume.

Since 2009 it has created the largest profits in the industry.

"The entrance of Apple to the top 5 vendor ranking underscores the increased importance of smartphones to the overall market," IDC analyst Kevin Restivo said in a statement.

IDC said on Friday it expects smartphone market volumes to grow 55 percent this year from a year ago.

Sony Ericsson and Motorola, both benefited from their shift in focus to smartphones in the quarter, but their total sales volumes continued to shrink sharply from a year ago as they sold less cheaper models.

Among the top three vendors only No. 2 Samsung Electronics continued to win market share, while the share of LG Electronics and that of market leader Nokia shrank in the quarter.

Samsung reported its quarterly earnings on Friday. The company's smartphones business, a major drag in the first half, is recovering fast and accounts for 11 percent of its total handset shipments, a jump from 2 percent a year ago.

"Handset volumes from many leading names have showed surprising softness - Nokia, LG and Sony Ericsson all coming up short of consensus," said Tero Kuittinen, analyst at MKM Partners.

"Many of these vendors have blamed component shortages for volume lightness, but some questions persist over whether the brand-name phone manufacturers might be losing share to no-name low-end vendors," he said.

LG and Nokia, both have struggled to keep up with smaller rivals in the fatter-margin business of selling more advanced cellphones, and LG on Thursday unveiled a record quarterly loss in its mobile phone unit.

"This was the ninth consecutive quarter that Nokia has grown volumes below the market average," said Strategy Analytics' Mawston.

Nokia has dominated the lower end of the market for years -- controlling more than 50 percent of that market, but analysts said the Finnish firm was under increasing pressure from Chinese rivals like ZTE.

"Nokia's grip on the traditional mobile phone market has been somewhat loosened, as multiple Chinese vendors have gained ground, especially within emerging markets," said IDC analyst Ramon Llamas. - Reuters

Maybank IB Research: Sell Tenaga

KUALA LUMPUR: Maybank Investment Bank Bhd Research (Maybank IB) sees more challenges ahead for TENAGA NASIONAL BHD [] and has a Sell call with an unchanged target price of RM7.50.

The research house said on Friday, Oct 29 that its 4Q net profit plunged 23% on-quarter to RM414 million on seasonally high "other costs" and rising coal prices.

"The final dividend was raised to 20 sen/share, but the 3% gross full-year yield is still not particularly compelling. We tweak our EPS forecasts on post-result housekeeping and still expect FY11 net profit contraction on higher coal prices," it said.

Maybank IB Research said the market had focused on its low 13% foreign ownership and gains from a weak US dollar.

"However, we see higher coal prices and gas supply constraints as the key issues. We maintain our below-consensus earnings forecasts. It could be even worse if gas supply constraints force Tenaga to burn costly distillate to meet power demand growth," it said.

AIA shares debut up 11.8% after record HK IPO

HONG KONG: Shares in AIA Group Ltd rose 11.8% on their trading debut on Friday, Oct 29 after parent American International Group Inc (AIG) raised US$17.8 billion (RM55.18 billion) in a record Hong Kong offering.

AIA, which operates life insurance businesses across 15 Asian markets, was offloaded by AIG to repay part of the bailout it received from the US government.

AIA opened at HK$22.00 compared with an initial public offering price of HK$19.68 (RM7.87) per share. A Reuters poll had forecast the shares to start trading at HK$21.79.

The offer was closed two days ahead of schedule after being swamped by orders from Chinese investors and traditional long only funds. ' Reuters

Market mixed, MMHE in focus

KUALA LUMPUR: The market was mixed in early trade on Friday, Oct 29 with the FBM KLCI still marginally above the key 1,500 level, but trading interest was on Marine and Heavy Engineering Holdings Bhd (MMHE).

The FBM KLCI was up 0.64 of a point to 1,500.08. Turnover was 279.31 million shares valued at RM55.72 million. There were 205 gainers, 208 losers and 230 stocks unchanged.

MMHE was the most active with 77.56 million shares done. It surged 71 sen to RM4.51. The institutional price was RM3.80, and the retail offer price at RM3.61.

Among the gainers were AIA-C1, up 25.5 sen to 40.5 sen. MTD added 23 sen to RM6.30, Nestl'' 20 sen to RM43.80 and YTL Land 14 sen to RM1.42.

SOP was the top loser, down 20 sen to RM3.23, PPB 16 sen to RM119.02. DiGi shed 10 sen to RM25.10 and Hap Seng eight sen to RM3.77 while Supermax eased six sen to RM4.57.

OSK Research: FV for Plenitude at RM5.56

KUALA LUMPUR:'' OSK Rsearch said Plenitude's proposed one-for-one bonus issue will go ex on Nov 12, 2010. The entitlement date for the bonus is Nov 16.

The bonus issue involves an issuance of up to 135 million shares. However, OSK Research said on Friday, Oct 29 the bonus issue exercise would not have an impact on its earnings forecast.

Ex-bonus, the earnings per share and net tangible asset/share will be reduced by 50% (FY11: from 72.4 sen and RM5.94 to 36.2 sen and RM2.97 respectively).

'Plenitude is one of our top picks for the Malaysian property sector as we believe that the company will ride high on the coming property upcycle between now and 2012/13, which will be primarily led by mid-to-high end landed PROPERTIES [],' it said.

OSK Research also stated that as this is also the first time that Plenitude is actually being proactive in addressing the issue of the stock's liquidity since its listing in 2003, there is a possibility of the stock trading at a premium even to its historical valuation.

'Our recent target price of RM4.84 (cum) was derived from 0.8 times CY11 price/net tangible asset. If we ascribe a liquidity premium of 15% to the stock's historical valuation, this would translate into our new fair value of RM5.56 for Plenitude (or RM2.78 ex-bonus), equivalent to 0.9 times CY11 P/NTA,' it said.

OSK Research said the stock was well-supported by anticipated strong earnings growth, a healthy balance sheet with a net cash of RM2.02/share (40% of current share price), and the fact that it is trading below its net asset value.

#Update* MMHE surges to RM4.50

KUALA LUMPUR: Marine and Heavy Engineering Holdings Bhd (MMHE) made a strong debut on the Main Market of Bursa Malaysia on Friday, Oct 29 to open at RM4.12.

By 9.35am, it had surged to RM4.50, which was 70 sen above its institutional offer price of RM3.80. The retail price RM3.61. There were 63.5 million shares done.

The FBM KLCI was up 0.64 of a point to 1,500.08. Turnover was 180.54 million shares valued at RM383.09 million. There were 176 gainers, 143 losers and 207 stocks unchanged.

Analysts said the listing of MMHE would attract strong interest and prove the spark for the market which has been consolidating in recent days.

Affin Investment Research has a Buy and target price of RM4.50. It said MMHE is the best proxy to Malaysia's upstream O&G activities, given its exposure to the country's fabrication, deepwater engineering & CONSTRUCTION [] and marine conversion sectors.

KLCI crosses 1,500 again

KUALA LUMPUR: Malaysian Marine and Heavy Engineering Holdings Bhd (MMHE) helped energise the market and galvanise sentiment, which saw the FBM KLCI crossing the crucial 1,500 mark again on Friday, Oct 29.

At 9.08am, the FBM KLCI was up 2.1 points to 1,501.54. Turnover was 69.24 million shares valued at RM158 million. There were 102 gainers, 66 losers and 132 stocks unchanged.

MMHE jumped to RM4.32 with 33 million shares done. At RM4.32, this was 52 sen above its institutional price of RM3.80. The retail price was RM3.61.

Other gainers were YTL Land, up 12 sen to RM1.40m CIMB added 10 sen to RM8.29.

However, other banks eased, with HL Bank down six sen to RM9.06, AMMB five sen to RM6.24 and Public Bank two sen to RM12.74.

AmResearch maintains Hold On Tenaga

KUALA LUMPUR: AmResearch reiterated its HOLD call on TENAGA NASIONAL BHD [] with an unchanged DCF-derived fair value of RM9 share after its FY10 core net profit came in right on the dot of its forecast but below 15% below street estimates.

'We have become less sanguine about Tenaga and have fine-tuned FY11F-FY12F earnings due to the US$10/tonne increase in coal cost assumption to US$100/tonne,' it said on Friday, Oct 29

AmResearch said however, that was largely offset by a revision to its exchange rate projection from RM3.10/US$1 to RM3.00/US$1. The stock currently trades at a fair FY11F PE of 14 times, which is Tenaga's three-year average.

Hwang DBS Vickers Research sees flattish performance for KLCI

KUALA LUMPUR: Hwang DBS Vickers Research expects the FBM KLCI to probably stage a flattish performance on Friday, Oct 29, ending the week near the psychological level of 1,500.

'This is in view of a dearth of fresh market developments that are needed to stimulate further buying interest,' it said.

The research house said this was a similar story on Wall Street. Major U.S. equity indices showed a daily change of between -0.1% and +0.2% at the closing bell as investors were waiting for new market leads to emerge.

'Back home, Tenaga shares may come under a bit of selling pressures after its FY Aug 10 full-year financial results came in slightly below par.

'But the highlight of the day will be the debut listing of Malaysia Marine & Engineering Holdings ' a heavy engineering and marine services provider in the oil & gas segment ' which would be valued at a market cap of RM6.1 billion based on the institutional offer price of RM3.80 per share,' it said.

GLOBAL MARKETS-Stocks mixed, dollar falls before elections, Fed

NEW YORK: Global stocks rose despite Wall Street's mixed finish and the dollar's slide on Thursday, Oct 28 as investors pulled back before expected upheaval from next week's U.S. elections and the likelihood of more monetary easing.

Oil prices ended higher, supported by an unexpected drop in new U.S. jobless claims to a three-month low and a dollar that weakened over rising worries about the extent of a second round of stimulus by the U.S. Federal Reserve next week.

Trading in Tokyo was poised to open near break-even, with the December futures contract that trades in Chicago for the Nikkei 225 off 5 points at 9,350.

During Thursday's trading, investors shied away from big bets ahead of the two-day Fed meeting that will end on this coming Wednesday.

The Federal Reserve Bank of New York has asked market participants about their expectations for further easing as part of its regular survey prior to Fed meetings, a person familiar with the survey said.

A Reuters poll of 17 primary dealers on Wednesday showed forecasts on the size of a renewed Fed program ranging widely between $250 billion and $2 trillion, with most expecting purchases of between $80 billion and $100 billion a month.

The drop in claims for new unemployment benefits gave U.S. equities an early gain as did a weak dollar, but the inverse relationship between the U.S. currency and stocks appeared to break down. Mixed earnings also added to the choppy action.

STALLING FOR TIME

Next week could bring significant shifts in both monetary policy and legislative direction, leading investors to largely disregard earnings news and economic reports.

"Perhaps this is going to be a 'buy the rumor, sell the news' kind of deal where we have had the rally in anticipation of all these things," said Phil Orlando, chief equity market strategist, at Federated Investors in New York.

"Now that we are about to cross the threshold, maybe we are getting a little toppy here and we need to consolidate some of those gains."

The Dow Jones industrial average slipped 12.33 points, or 0.11 percent, to end at 11,113.95. The Standard & Poor's 500 Index edged up 1.33 points, or 0.11 percent, to 1,183.78. The Nasdaq Composite Index rose 4.11 points, or 0.16 percent, to close at 2,507.37.

European shares ended higher on upbeat earnings results, helping lift MSCI's all-country world equity index 0.6 percent.

The MSCI index of Asia Pacific stocks outside Japan rose 0.7 percent after a nearly 2 percent slide the day before. Japan's Nikkei stock average, which was spared the sell-off, dipped 0.2 percent to end at 9,366.03, a six-week low.

The euro gained 1.15 percent at $1.3926 as the dollar slipped. A recent move to trim extreme short dollar positions amid speculation the Fed will announce plans to buy more assets next week, also slowed.

The dollar tumbled against a basket of major currencies, with the U.S. Dollar Index down 1.10 percent at 77.290.

Against the Japanese yen, the dollar dropped 0.86 percent to 80.99.

FLOCKING TO GOLD AND BONDS

Gold closed higher as the dollar slid.

Gold futures for December delivery climbed $19.90, or 1.5 percent, to $1,342.50 an ounce on the COMEX division of the NYMEX.

Crude oil rose in a seesaw session. U.S. crude for December delivery rose 24 cents to settle at $82.18 a barrel, after dropping earlier to $81.50. It has gained in four of the last five sessions.

ICE December Brent crude added 43 cents to end at $83.59.

"The market looks somewhat directionless until the election and the Federal Reserve details next week are known," said John Kilduff, partner at Again Capital LLC in New York.

A recent rise in yields and talk of aggressive quantitative easing by the Federal Reserve drove buyers to U.S. Treasuries and bolstered demand in an auction of seven-year Treasury notes.

Ten-year yields above 2.70 percent attracted buyers. The 10-year Treasury note rose 18/32 in price to yield 2.66 percent, down from 2.72 percent late on Wednesday. - Reuters

US STOCKS-Wall Street stalls ahead of Fed, elections

NEW YORK: U.S. stocks ended little changed on Thursday, Oct 28 as cautious investors pulled back before expected upheaval from next week's elections and a likely announcement of more stimulus from the Federal Reserve.

Next week could bring significant shifts in both monetary policy and legislative direction, leading investors to largely disregard earnings and economic reports.

A notable exception was manufacturer 3M Co, which dropped 5.9 percent to $85.07 and pulled the Dow lower after it trimmed its outlook due to costs from recent acquisitions.

"Perhaps this is going to be a 'buy the rumor, sell the news' kind of deal where we have had the rally in anticipation of all these things," said Phil Orlando, chief equity market strategist at Federated Investors, referring to the Fed and Tuesday's elections.

"Now that we are about to cross the threshold, maybe we are getting a little toppy here and we need to consolidate some of those gains."

A look at broad market exchange-traded funds suggested investors were becoming more cautious. Premiums for November out-of-the-money puts outweighed equally spaced call contracts for most instruments.

Overall U.S. put volume rose 21.3 percent on Wednesday while the CBOE Volatility Index rose for the fourth consecutive session.

The Dow Jones industrial average dropped 12.33 points, or 0.11 percent, to 11,113.95. The Standard & Poor's 500 Index gained 1.33 points, or 0.11 percent, to 1,183.78. The Nasdaq Composite Index added 4.11 points, or 0.16 percent, to 2,507.37.

Closing was delayed for 58 NYSE stocks following a hardware recovery.

Halliburton Co tumbled 8 percent to $31.68 after a White House panel said the contractor, which cemented the blown-out Macondo well, ignored cement design flaws weeks before the disaster that sparked the worst U.S. offshore oil spill.

Thursday's session also brought about a weakening in the recent inverse correlation between stocks and the dollar for the second time this week, as stocks slipped while the dollar index shed 1.1 percent against major currencies.

Stocks received an early boost from the weak dollar and after data showed new weekly claims for unemployment benefits fell unexpectedly, giving an encouraging reading on the labor market.

Anticipation of a Fed move has driven recent market action as investors speculated over the size and timing of further stimulus. Equity investors have bet that more easing will invigorate an economic recovery and lift asset prices. Since September, the S&P 500 has risen 12.8 percent.

Most leading economists expected the Fed to buy between $80 billion and $100 billion in assets per month under a new program to bolster the struggling economy, a Reuters poll found.

Volume was light, with about 7.4 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year's estimated daily average of 9.65 billion.

Advancing stocks outnumbered declining ones on the NYSE by 1,498 to 1,442, while on the Nasdaq, decliners beat advancers by about four to three. - Reuters

Microsoft profit beats Street, shares rise

SEATTLE: Microsoft Corp beat Wall Street expectations with a 51 percent jump in quarterly profit, as higher sales of its flagship Windows and Office software knocked down fears Apple's iPad would take a bite out its main business.

Its shares, down 14 percent so far this year, rose 3 percent in after-hours trading on Thursday, Oct 28. Despite doubling its sales and profit in the last eight years, Microsoft's stock has largely remained at the same level, as investors worry about its ability to dominate new markets or adapt to new ways of computing.

The increase in the latest quarter's profit was helped by the launch of the latest blockbuster Halo video game, but exaggerated by the deferral of some revenue in the year-ago quarter relating to the launch of its Windows 7 operating system, and was flattered by comparison to last year, when the economy was only just emerging from the downturn.

Microsoft's Windows 7 has now sold a record-breaking 240 million copies in one year and its Office suite of applications, launched this spring, is off to a strong start.

"The reports of the death of Windows and Office are premature -- the company is still a cash flow machine," said Colin Gillis, an analyst at BGC Financial. "People are buying about $10 billion worth of Windows and Office this quarter. The twin engines of Microsoft are still firing."

Between them, the Windows and Office units accounted for more than 60 percent of sales and more than 80 percent of profit, factoring out nonoperating losses.

ONLINE LOSSES

Microsoft's online services division, which contains the Bing search engine and MSN portal, was the weakest point in the company's quarter, reporting a 17 percent wider loss of $560 million. The unit, which is investing heavily in an attempt to catch up with search advertising leader Google Inc and now powers Yahoo Inc Web searches, has lost $6 billion in the last five years.

"I hate to nit-pick too much, but we'd always like to see the online services business do even more than it does," said Andrew Miedler, an analyst at Edward Jones, pointing out that revenue growth at the unit was slow, despite a recovery in ad spending.

"We'd like to see even more great things out of the online division because Microsoft needs another pillar down the road, and online ads is a market that's big enough."

The company had not seen any adverse effect on sales of computers running Windows due to Apple Inc's popular iPad tablet device, which is close to selling 8 million units, said Chief Financial Officer Peter Klein.

"We haven't seen that at all," said Klein. "Analysts who have done research on it, largely think this (the tablet market) is additive to PC markets as opposed to instead of PCs."

BEATS THE STREET

The world's largest software company posted a fiscal first-quarter profit of $5.4 billion, or 62 cents per share, up from $3.6 billion, or 40 cents per share, in the year-ago quarter.

That beat Wall Street's average forecast of 55 cents per share, according to Thomson Reuters I/B/E/S.

Sales rose 25 percent to $16.2 billion, ahead of analysts' $15.8 billion average forecast.

Klein said companies were continuing to buy new computers, maintaining the recovery in tech spending, but consumers were not so strong.

"We feel very good about the business refresh," said Klein. "On the consumer side, it probably was a little bit less than people had anticipated, but it was still growth."

In the latest quarter, Microsoft's Office unit was the biggest engine, contributing $3.4 billion of profit. The Windows unit was the next most profitable with $3.3 billion.

The server and tools unit, which sells the software and services behind internet-based computing and data storage -- so-called "cloud computing" -- contributed $1.6 billion in profit.

Microsoft's entertainment and devices unit, which sells the popular Xbox and less successful phone software, reported $382 million in profit, helped by Halo game sales. Figures from this unit are expected to improve this quarter, as Microsoft's new phone software and its Kinect motion-controller for Xbox go on sale in the United States next month.

As it accepts that it will likely not recapture its go-go growth of the 1990s, Microsoft has recently adopted a keen focus on cost control and profit margins. It cut 5,800 jobs last year and recently told its remaining 89,000 employees they will have to contribute to their healthcare costs for the first time in 2013.

"The company is sticking to its new-found religion on expenses," said Kim Caughey Forrest, senior analyst at Fort Pitt Capital. "It used to be" 'Let's throw everything at it and not care how much it costs.' That's great if you're growing gangbusters, but now we're seeing growth with margins and that's what we want to see as investors."

Microsoft stuck to its forecast of $26.9 billion to $27.3 billion in operating expenses this fiscal year. - Reuters

#Stocks to watch:* MMHE, Tenaga, Sunrise, Southern Acids

KUALA LUMPUR: Key Asian markets are expected to open on a cautious note on Friday, Oct 29 after the mixed close on Wall Street.

The Dow Jones industrial average dropped 12.33 points, or 0.11 percent, to 11,113.95. The Standard & Poor's 500 Index gained 1.33 points, or 0.11 percent, to 1,183.78. The Nasdaq Composite Index added 4.11 points, or 0.16 percent, to 2,507.37.

Reuters reported cautious investors pulled back before expected upheaval from next week's elections and a likely announcement of more stimulus from the Federal Reserve.

Next week could bring significant shifts in both monetary policy and legislative direction, leading investors to largely disregard earnings and economic reports.

At Bursa Malaysia, stocks to watch are Marine and Heavy Engineering Holdings Bhd (MMHE), TENAGA NASIONAL BHD [], SUNRISE BHD [] and SOUTHERN ACIDS (M) BHD [].

The listing of MMHE would attract strong interest and prove the spark for the market which has been consolidating in recent days.

MMHE's institutional price is RM3.80 and retail price RM3.61. Affin Investment Research has a Buy and target price of RM4.50. It said MMHE is the best proxy to Malaysia's upstream O&G activities, given its exposure to the country's fabrication, deepwater engineering & CONSTRUCTION [] and marine conversion sectors.

Tenaga Nasional's earnings surged nearly 200% to RM389 million in the fourth quarter ended Aug 31, 2010 from RM133.4 million a year ago, but was cautious about the outlook due to increase in coal prices in the near term.

The national power company said revenue rose 5.4% to RM7.869 billion from RM7.462 billion.

For the just ended FY10, Tenaga reported net profit of RM3.197 billion, which was 274% above the RM853 million in FY09. The higher earnings in FY10 were boosted by a foreign exchange translation gain of RM632.6 million compared with a loss of RM1.177 billion in FY09. Revenue was RM30.32 billion, up 5.3% from RM28.78 billion.

Sunrise is expected to launch at least four major property projects with gross development value (GDV) totalling RM2.7 billion next year and anticipates to register better results for FY2011 ending June 30, given its large unbilled sales of RM1.2 billion.

Southern Acids is set to unlock its holding of 644.49 acres of land bordering Kota Kemuning, Shah Alam, although its board of directors are still exploring its options.

Nestle (Malaysia) Bhd posted net profit of RM113.18 million in the third quarter ended Sept 30, 2010, up 42% from RM79.76 million a year ago, underpinned by stronger exports and improved domestic economy.

''

Bursa Securities reprimands, fines Pelikan CEO Loo RM10,000

KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded and impoased a fine of RM10,000 on Pelikan International Corporation Bhd chief executive officer Loo Hooi Keat.

Bursa Securities said on Thursday, Oct 28 that the action was taken against Loo, who is also an executive director, over the number dealings?? in the securities of Pelikan from September 2008 until August 2009.

It said Loo was appointed to Pelikan board of directors on April 22, 2005 and was re-designated as president/CEO on Nov 14, 2007.

He is also a substantial shareholder of Pelikan including via PBS Office Supplies Holdings Sdn Bhd, Mahir Agresif (M) Sdn Bhd and KONSORTIUM LOGISTIK BHD [].

Bursa Securities said Loo, had from September 2008 until August 2009, undertaken numerous dealings in the securities of Pelikan through the companies.

However, none of these dealings was announced to Bursa Securities and the market pursuant to paragraphs 14.08 and 14.09 of the listing requirements (LR).

???Loo Hooi Keat???s explanation for the non-disclosure of these dealings premised on the transactions were done by the financiers is unacceptable as it was noted that he was notified by the financiers through the margin call notices issued by the financiers and the duty remains with him to monitor and ensure compliance with the LR,??? it said.

???Further, he has made announcements of certain dealings in Pelikan???s securities on March 17, 2009 and March 25, 2009, the details of which were inaccurate and misleading,??? it said.

Bursa Securities reprimands Ho Hup directors, fines 2 directors RM109,500

KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded Ho Hup CONSTRUCTION [] Company Bhd for breaching the Listing Requirements of the Main Market.

???In addition, the company is required to ensure all its directors and the relevant personnel of the Company attend a training programme in relation to compliance with the listing requirements particularly pertaining to financial statements,??? it said on Thursday, Oct 28.

The regulator said Ho Hup had delayed in submitting various financial statements since the financial year ended Dec 31, 2005 for which the company was publicly reprimanded on July 31, 2006, Dec 17, 2007 and Aug 12, 2008.

Bursa Securities said the reasons for the delay in submission of the financial statements provided by Ho Hup were shortage of staff, significant audit issues and new management ???which are unacceptable and do not absolve the company???s and the directors??? obligation to take reasonable measures to ensure timely submission of the financial statements???.

It publicly?? reprimanded and imposed a fine of RM100,500?? on Datuk Low Tuck Choy, the then managing director. He was suspended on Aug 28, 2008 and ceased on Oct 23, 2008.

For the delay in submission of quarterly reports for 4/2007, AAA 2007, AR 2007, QR 1/2008 , he was publicly?? reprimanded and fined RM100,500.

As for Faris Najhan Hashim, the then finance director, who has resigned on March 28, 2008, he was fined RM9,000 over the delay in submission of QR 4/2007.

UK banks build liquidity ahead of buffer clarity

LONDON: Banks in Britain are amassing cash and bonds as the country's top financial regulator prepares to update the market on tough new liquidity rules before the end of the year.

The update from the Financial Services Authority (FSA) is unlikely to include prescriptive rules determining the size of banks' liquidity cushions, however, while the economic recovery remained fragile.

"We have said we will say something in the final quarter of this year," an FSA spokeswoman said on Thursday, Oct 28.

"We have always been clear. We won't tighten quantitative standards before economy recovery is assured."

Banks have been told to hold more liquid assets such as cash, gilts or other government bonds to prevent a liquidity squeeze at a time of stress, but have not been told the specific liquidity buffers that will be required by the regulator.

The UK economy grew twice as fast as expected in the three months to September, but with warnings of a possible sharp slowdown in the first half of next year some industry experts expect the regulator to opt for a holding statement before providing more details next year.

Most banks have already improved liquidity ahead of the new guidelines -- and are bearing the cost. Returns on the safest assets can be substantially less than more illiquid assets they may have held previously, hurting margins.

Spain's Santander said on Thursday its UK business, one of the big five retail lenders, had increased its holdings of high quality liquid assets to 39 billion pounds ($62 billion) at the end of September, more than treble the 12 billion held at end-2008.

Barclays' liquidity pool, or surplus liquidity, swelled to 160 billion pounds at the end of June, from 127 billion at the end of 2009 and just 19 billion at end-2007. Some 102 billion pounds of its end-June liquidity was cash or deposits with central banks and a further 46 billion is in government bonds or equivalent.

The top banks report third-quarter results in the next two weeks and Santander's comments are likely to increase scrutiny on the impact on margins of additional liquidity requirements, analysts said. - Reuters

GLOBAL MARKETS-Stocks lifted by earnings; dollar slips

LONDON: Strong corporate earnings lifted global stocks on Thursday, Oct 28 while the dollar fell, paring recent gains, as uncertainty over how much monetary easing the Federal Reserve will opt for next week kept investors cautious.

Forecast-beating earnings, including from Royal Dutch Shell, and gains in mining and TECHNOLOGY [] stocks helped lift European shares 0.6 percent after doubts over the U.S. stimulus had pushed them to a two-week closing low on Wednesday.

Global stocks were higher, with the MSCI world equity index up 0.4 percent after falling on Wednesday. U.S. stock futures also pointed to a higher opening on Wall Street.

Investors awaited the latest weekly reading of U.S. unemployment at 1230 GMT for clues about the health of the world's largest economy before Wednesday's Fed decision.

"Sentiment seesaws between the positive corporate outlook in the short term ... and the dark macro environment with the potential for further storms ahead. Volatility continues to be the name of the game," said Henk Potts, equity strategist at Barclays Wealth.

Market participants have scaled back expectations for the extent of Fed QE likely next week in recent days, pushing the dollar and U.S. Treasury yields higher.

There is a great deal of uncertainty surrounding the Fed decision, however. The latest Reuters poll showed economists' estimates for how much money the Fed will print varied widely, from $250 billion to as high as $2 trillion.

??

DOLLAR PARES RECENT GAINS

The dollar index, which measures the dollar's value against a basket of major currencies, was down 0.7 percent at 77.630, with a short covering rally pausing as uncertainty over Fed easing left investors wary. The euro rose 0.6 percent, while the dollar fell nearly 0.5 percent versus the yen.

"Interest rate differentials had stopped moving against the dollar, but today the dollar is giving up a bit of those gains," said Marcus Hettinger, global currency strategist at Credit Suisse in Zurich.

"We're seeing some consolidation in the dollar before the Fed meeting as no one knows how much QE the Fed might do."

German bund futures started the day higher but pulled back to trade up 4 ticks at 128.85 after solid demand at an auction of Italian debt. Concerns about the health of some peripheral euro zone economies, however, widened the spreads between the bond yields of those countries and those of Germany.

Government talks with the opposition in Portugal over the budget broke down on Wednesday, while there were signs Ireland was preparing to cut public spending even further.

U.S. 10-year Treasury yields slipped from late U.S. trade, after reaching their highest since Sept. 20 on Wednesday.

Gold prices rose slightly to $1,329.00 an ounce, against $1,324.70 late in New York, helped by a weaker dollar.

U.S. crude oil gained 20 cents to $82.14 a barrel after falling nearly 1 percent on Wednesday.

Emerging stocks were up 0.3 percent.

FBM KLCI claws back to close higher

KUALA LUMPUR: The FBM KLCI clawed back to close higher on Thursday, Oct 28, lifted by gains including at CIMB, DiGi, AMMB and KL Kepong, as cautious investor sentiment kept the index very much in the red for the better part of the day.

The index had slipped into red at midday as the inability of the index to hold above the 1,500-point level saw investors turning cautious.

However, by the close, the 30-stock index climbed 0.03% or 0.33 point to 1,499.44. Gainers trailed losers by 350 to 427 while 287 counters traded unchanged. Volume was 1.14 billion shares valued at RM1.64 billion.

At the regional markets, Hong Kong???s Hang Seng Index added 0.20% to 23,210.86, Taiwan???s Taiex rose 0.76% to 8,354.05, Singapore???s Straits Times Index gained 0.26% to 3,132.50 while Japan???s Nikkei 225 fell 0.225 to 9,366.03, the Shanghai Composite Index lost 0.15% to 2,992.58 and the South Korean Kospi shed 0.09% to 1,907.87.

At Bursa, among the gainers, F&N rose 40 sen to RM14.50, Kuchai added 27 sen to RM1.51, KFCH rose 23 sen to RM3.67, DiGi was up 20 sen to RM25.20, Kluang , PPB and Sungei Bagan added 18 sen each to RM2.98, RM19.18 and RM3.20 respectievly while JobStreet added 17 sen to RM2.60.

Meanwhile, AMMB rose 10 sen to RM6.29, KLK up six sen to RM19.56 and CIMB gained four sen to RM8.19.

Among the decliners today, BAT fell 40 sen to RM46.58, MTD lost 38 sen to RM6.07, Boustead down 22 sen to RM5.63, Supermax lost 17 sen to RM4.63, Masterskill lost 16 sen to RM2.85, Ann Joo fell 15 sen?? to RM2.85, while MPI fell 13 sen to RM5.69.

Rubber glove makers also declined, with Supermax Corp down 17 sen to RM4.63, Top Glove lost 15 sen to RM5.50, Kossan down eight sen to RM3.22, Hartalega down seven sen to RM5.44, Latexx Partners down six sen to RM2.98 while Rubberex shed half a sen to 88 sen.

Karambunai was the most actively traded counter today with 89.7 million shares traded. The stock added one sen to 23.5 sen. Other actives included SAAG, Ho Wah Genting, MK Land, Jadi, CIMB and Axiata.

Nestle 3Q net profit up 42% to RM113.18m

KUALA LUMPUR: Nestle (Malaysia) Bhd posted net profit of RM113.18 million in the third quarter ended Sept 30, 2010, up 42% from RM79.76 million a year ago, underpinned by its exports business and improved domestic economy.

It said on Thursday, Oct 28 that revenue rose 11.7% to RM991 million from RM886.8 million. Earnings per share were 48.27 sen compared with 34.01 sen.

Nestle said for 3Q FY10, the higher turnover was contributed by both domestic and exports businesses. The good growth momentum generated by the local economy sustained the consumer demand and spending.

???Leveraging on the improved domestic economic situation, most of the product categories performed well and registered a satisfactory growth. This is quite evident for Nestle liquid drinks and chilled dairy which achieved double digit growth,??? it said. From a channel perspective, both retail and out-of home sales enjoyed good growth.

Nestle said?? capitalising on the investments made in major production lines for coffee and coffee creamers in the past two years, the exports business continued to perform well, registering a strong double digit growth for the quarter.

It added the strong economic growth experienced within the Southeast Asian countries helped generate higher demand for the group's halal products.

However, input cost pressures and product sales mix caused gross profit margin to deteriorate by 110 basis points against the previous corresponding period.

Nestle said less marketing and promotional activities during the quarter and timing of some fixed overhead expenses saw the profit margin before tax improve by 140 bps.

Bank Negara ready to act on property if need be

KUALA LUMPUR: Malaysia's central bank will clamp down on any speculation that threatens to create a property bubble, the central bank chief said on Thursday, Oct 28.

Governor Zeti Akhtar Aziz said the central bank wanted to promote house ownership but it had "wide ranging instruments" to deal with any excesses in the sector.

"For first time houseowners and perhaps even the second one, any new rules would not apply. It would only be for those that want to purchase 10 units at time, I believe that happens sometimes," she told reporters on Thursday.

"If we consider that there is imminent risk of a property bubble, we will take pre-emptive action. We're not going to wait for the bubble before taking action."

Although Asian policymakers are mostly concerned about hot money from developed countries, CIMB notes that Malaysia has the highest household debt in Asia outside of Japan.

It said household debt hit 76% of GDP in 2009 and is expected to ease to 74.6% by the end of this year, making domestic consumption sensitive to further interest rates rise.

Flows

House prices in Malaysia rose 32% between 2000 and 2009, but some areas of the country have seen a big rise this year.

A condominium near the business district in the capital was recently sold for $12 million (RM37.34 million), making it among the most expensive homes sold in recent years, a local newspaper reported in July.

Policymakers in Hong Kong, Singapore and China have imposed measures to calm their heady property markets this year as investment flowed into Asia from developed countries.

Zeti said Asia was well placed to deal with these capital inflows due to better developed financial markets, rigorous surveillance and a larger regulatory policy toolkit.

"We have more rigorous surveillance, we know almost real time about these flows, where they come from and where they are placed, whether equities, bonds or deposits. We are better positioned now to deal with it," Zeti told reporters.

To a suggestion on implementing a single Asian currency, Zeti said she was not in favour of such a move as the objective of achieving greater prosperity for the region could be achieved at a much lower cost. ??? Reuters

#Flash* Tenaga 4Q earnings surge nearly 200% to RM389m

KUALA LUMPUR: TENAGA NASIONAL BHD [] earnings surged nearly 200% to RM389 million in the fourth quarter ended Aug 31, 2010 from RM133.4 million a year ago, underpinned by stronger revenue and a 5.8% .

The national power company said on Thursday, Oct 28 that revenue rose 5.4% to RM7.869 billion from RM7.462 billion. Earnings per share were 8.94 sen versus 3.79 sen. It proposed dividend of 20 sen per share.

Asia-Pacific gaming operators on winning streak, says S&P report

KUALA LUMPUR:?? Gaming operators in Asia-Pacific are expected to continue strong growth, underpinned by the steadily growing Chinese economy, resilient regional markets with an expanding middle class, says Standard & Poor's Ratings Services.

Another factor supporting the performance of operators in the region would be the an improving global economy, the ratings agency said in an industry report on Thursday, Oct 28.

The report, entitled "Robust growth and resilient markets pave the way for casino operators' sturdy performance in Asia-Pacific???, said gaming operators in Asia-Pacific have strongly benefited from robust economic growth and the resilience of markets in the region.

S&P credit analyst Allan Redimerio said this was in sharp contrast to operators in other major regions, such as North America, that continue to face pressures stemming from weak economic activity in those regions.

"We expect the performance of casino operators in the region to remain stable for the next 12 months," he said.

The report card said the gaming market in Macau has maintained its strong growth momentum since the second half of 2009, with gross gaming revenue growth in 2010 likely to exceed Standard & Poor's expectation of 15%.

Singapore's foray into the gaming industry has increased the size of the market, and the performance of the country's two new integrated resorts has been encouraging--so far.

Moreover, new competition from Singapore has not affected Malaysia's Resorts World Genting, where the number of visitors in the first half of 2010 was higher than in the same period last year.

In addition, the U.S. gaming companies that have a significant presence in Macau and Singapore continue to benefit from the robust growth trend in these markets.

The performance of casino operators in Australia and New Zealand also remained steady despite the diminished effect of the fiscal stimulus program in Australia, and the challenging economic environment in New Zealand.

S&P said stronger economic prospects, reasonably limited competition, and relatively lower financial leverage would support the performance of casino operators in Asia-Pacific.

Y&G proposes 4-into-1 share capital reduction

KUALA LUMPUR: Property-based Y&G Corp Bhd has proposed a four-into-one share capital reduction and to acquire three companies for RM164.14 million via issuance of new shares.

The company had on Thursday, Oct 28 proposed to reduce the share capital from RM51 million, comprising 51 million shares of RM1 each, into 51 million shares of 25 sen each. It proposed to consolidate four 25 shares into one share each.

It also proposed to acquire three companies -- Hala Kota Development Sdn Bhd, Teras Zaman Sdn Bhd and Beta Fame Sdn Bhd ??? for RM164.14 million via the issue of new Y&G shares of RM1 each.

The companies would be acquired from Kinta Aroma Sdn Bhd, Datuk Seri Yap Seng Yew, Datin Seri Gan Li Li, Datuk Yap Jun Jien Yap Jun Wei and Teh Mi Mi.

Pantech expects 40% to 50% of revenue from manufacturing

KUALA LUMPUR: PANTECH GROUP HOLDINGS BHD [] expects that 40% to 50% of the group's revenue will come from the manufacturing segment from about 20% at present in the next three to five years.

Speaking after the group's EGM here on Thursday, Oct 28, executive director Adrian Tan said the group was intent on the shift to increase its revenue base.

Pantech is involved in the supply of high pressure seamless and specialised steel pipes, fitting and flow control solutions such as valves, actuators and controls. It also manufactures carbon steel fittings.

The EGM was held for the group's shareholders to vote on a proposed one-for-five bonus issue, a rights issue of up to RM77.25 million of ICULS and 77.25 million warrants attached on the basis of one for every 10 ICULS subscribed, in addition to a proposed exemption to CTL Capital Holding Sdn Bhd and several other parties from the obligation to undertake a mandatory take-over offer for all the remaining Pantech shares in the company not already owned.

According to management, shareholders had approved all the resolutions.

Western Digital reports US$197m net income in 1Q

KUALA LUMPUR: Hard disk drive manufacturer Western Digital Corp, whose components suppliers include JCY International Bhd, reported lower net income of US$197 million for its first quarter ended Oct 1, 2010 as it was impacted by aggressive industry pricing.

The company said on Thursday, Oct 28 that revenue was US$2.4 billion and net income at 84 cents per share. It shipped 50.7 million hard-drive units.

This was a decline from a year ago when Western Digital reported revenue of US$2.2 billion, shipped 44.1 million hard drives, and reported net income and earnings per share of US$288 million and US$1.25, respectively.

???In a quarter characterised by aggressive industry pricing, we remained solidly profitable, grew revenues and unit shipments year-over-year, and generated US$390 million in cash from operations,??? said its president and CEO John Coyne.

???Our low-cost business model and strong balance sheet enable us to weather the seasonality and cycles of the hard drive industry such as we experienced during the last two quarters.

Coyne said the group would continue to focus on quality, reliability, availability and profitable growth to maintain our industry leadership.

???We remain excited about the significant opportunities being created by the unabated growth in digital content in the home and workplace,??? he said.

Nikkei edges down to lowest close in 6 weeks

TOKYO: Japan's Nikkei average drifted down to its lowest close in six weeks on Thursday, Oct 28 as short-covering that emerged after the Bank of Japan's announcement of details of its asset buying scheme failed to last.

The Nikkei briefly turned positive in the afternoon, but it ran out of steam quickly as global shares prices have been put under pressure recently as investors shift away from risk assets on speculation that monetary easing in the United States will not be as pronounced as originally thought.

The benchmark Nikkei ended down 0.2 percent or 21 points at 9,366.03 -- its lowest close since Sept. 14.

The broader Topix fell 0.4 percent to 814.33.

In Seoul, shares slipped on Thursday as investors lowered their expectations on how aggressively the U.S. Federal Reserve will engage in its next round of quantitative easing, while LG Electronics rose after quarterly results.

The Korea Composite Stock Price Index (KOSPI) finished down 0.09 percent at 1,907.87 points. - Reuters

Javace, Sheikh Tarek secure 90.52% of Putrajaya Perdana shares

KUALA LUMPUR: Trading in the shares of PUTRAJAYA PERDANA BHD [] will be suspended on Nov 8 after Javace Sdn Bhd and Sheikh Tarek Essam Ahmad Obaid secured 90.52% of the shares.

The company said on Thursday, Oct 28 that as at the closing date on Wednesday, the joint offerors had received valid acceptances totaling 126.75 million shares or 90.52%. Another 5.19% have yet to be verified.

Putrajaya Perdana said, Javace ???does not intend to maintain the listing status of in the event it holds 90% or more of the issued and paid up share capital of the company???.

Javace had offered RM4.85 cash for each of the shares in the corporate exercise to take over Putrajaya Perdana.

???The shares of the company will be suspended from trading upon the expiry of five market days from the date of this announcement, that is on Nov 8, and Javace will procure Putrajaya Perdana to take the necessary procedures to withdraw its listing status from the Official List of Bursa Securities in accordance with the Listing Requirements,??? it said.

Investors cautious after KLCI fails to hang on to key 1,500

KUALA LUMPUR: The FBM KLCI slipped into the red at the mid-day break on Thursday,?? Oct 28 as investors turned cautious after the benchmark was unable to hold above the key 1,500 level again.

At 12.30pm, the KLCI was down 0.20% or 2.96 points to 1,496.15, dragged by losses?? in Genting, Hong Leong Bank, MISC, Genting Malaysia (GentingM) and MAS. Losers outpaced gainers by 432 to 213, while 298 counters traded unchanged. Volume was 509.55 million shares valued at RM639.1 million.

The ringgit weakened 0.02% to 3.1070 per US dollar; crude oil gained 16 cents per barrel to US$82.10, gold added US$2.60 an ounce to US$1,327.95 while crude palm oil futures for the third month delivery rose RM27 to RM3,064 per tonne.

Hang Seng Index +0.25% 23,222.78 Taiwan???s Taiex +0.37% 8,321.38 Singapore???s Straits Times Index??
+0.31% 3,134.06 Nikkei 225 -0.17% 9,371.40 Kospi -0.27% 1,904.35 Shanghai Composite Index -0.58% 2,979.77 .

On Bursa Malaysia, Genting fell 22 sen to RM10.14 while GentingM lostl seven sen to?? RM3.43. AmResearch maintained a HOLD on GenM with fair value at RM3.85 as valuations are fair and no longer cheap. In the longer-term,the group???s profitability would be supported by contribution from the UK and US gaming assets, it said.

"Newsflow would come in the form of approval for more casino licences in the UK. The outcome of its joint bid for a ???large??? casino in Newham, UK, would be announced in February 2011," said the research house.

Boustead lost 20 sen to RM5.65, Supermax down 16 sen to RM4.46, Top Glove lost 15?? sen to RM5.50, Hong Leong Bank down 13 sen to RM9.02, Ann Joo fell 12 sen to RM3.08 while MAS shed six sen to RM2.24.

Among the gainers, Kuchai and KFCH added 12 sen each to RM1.36 and RM3.56, MAHB 11 sen to RM5.97, Sungei Bagan and Riverview 10 sen each to RM3.12 and RM3.22, Jaya Tiasa gained nine sen to RM4.05 while Naim and PPB added eight sen each to RM3.53 and RM19.08.

SAAG was the most actively traded stock this morning with 39.6 million shares done. The counter shed half a sen to 7.5 sen. Other actives include Jotech, Karambunai, MK Land, Jadi and CIMB.

UMW Toyota Motor reduces Prius price by RM36,000 to RM139,000

KUALA LUMPUR: UMW Toyota Motor has set the on-the-road price for the Toyota Prius at RM139,000 in Peninsular Malaysia, which is about RM35,000 lower than the original RM175,000 tag previously.

The price for the Prius in Sabah and Sarawak is set at RM141,000 due to higher logistics costs.

The changes in the prices are with effect from Thursday, Oct 28.

UMW Toyota Motor president Kuah Kock Heng said the company welcomed the recent National Budget announcement by the government on the extension and enhancement of tax incentives for hybrid cars effective from Jan 1, 2011 until Dec 31, 2011.

"We are very delighted with the support by the government, to extend the full exemption of import duty and full exemption of excise duty for Hybrid cars.

???Compared to the 2009 National Budget, import duties was given full exemption while the excise duty was given 50 percent reduction.
Kuah said with the new price tag, Malaysians would be able to enjoy the company???s most popular hybrid car, the Prius, at a more affordable price.

They can also benefit from the high fuel efficiency and at the same time contribute to lower the CO2 emission,??? he said in a statement. ??
The Prius has worldwide sales exceeding two million units.

Dialog up on deepwater petroleum terminal project

KUALA LUMPUR: DIALOG GROUP BHD [] shares advanced on Thursday, Oct 28 after?? The Edge Financial Daily reported that Dialog is gearing up for exciting times ahead with the multi-billion-ringgit independent deepwater petroleum terminal project at Pengerang, Johor.

The project will turn Pengerang into a regional oil storage and trading hub by 2017. At 9.25am, Dialog was up four sen to RM1.29 with 1.14 million shares done.

OSK Research keeps Sell on Hai-O

KUALA LUMPUR: OSK Research said the road to recovery for Hai-O???s multi-level marketing (MLM) business is longer than expected as membership growth and buying sentiment among members has slowed down further.

Meanwhile, Hai-O announced that it is venturing into the property business, another non-core business, after diversifying into the TECHNOLOGY [] business earlier.

???While this could help reduce the company???s reliance on the MLM business, we are concerned that the group is taking on more risk since its MLM business is struggling to regain its footing locally and establishing itself in Indonesia. Maintain SELL,??? OSK Research said on Thursday, Oct 28.

FBM KLCI edges higher in early trade

KUALA LUMPUR: The FBM KLCI edged up slightly higher in early trade on Thursday, Oct 28 and was up 0.86 point to 1,499.97 at 9.05am.

Among the early gainers were Genting and KFCH that added six sen to RM10.42 and RM3.50, Naim, HPI and United Malacca up five sen each to RM3.50, RM1.96 and RM7.35 respectively, while Lafarge Malayan Cement, Dialog, Mah Sing and Sealink added four sen each to RM7.95, RM1.29, RM1.91 and 68 sen respectively.

Early decliners included Boustead, KL Kepong, DFZ Capital, SapuraCrest, Eurospan, Rimbunan Sawit and Maybank.

Naim up on RM168.8m PWD job in Kuching

KUALA LUMPUR: NAIM HOLDINGS BHD [] shares rose in early trade on Thursday, Oct 28 after it secured a RM168.8 million contract from the Public Works Department for the infrastructure works of the Bengoh Resettlement scheme in in Kuching.

At 9.10am, Naim was up 10 sen to RM3.55 with 30,600 shares traded.

It said the contract was expected to contribute positively to its earnings for the financial years ending 2010 to 2012.

Sealink advances on vessel contract

KUALA LUMPUR: SEALINK INTERNATIONAL BHD [] shares rose on Thursday, Oct 28 after its unit Sealink Engineering and Slipway Sdn Bhd secured contracts for the sale of two offshore support vessels for about RM67 million. The vessels were expected to be delivered by the fourth quarter of 2010.

At 9.10am, Sealink was up 3.5 sen to 67.5 sen with 1.21 million shares done.

Tanjung rises on RM22m job

KUALA LUMPUR: TANJUNG OFFSHORE BHD [] shares were up on Thursday, Oct 28 after it received a RM22 million contract from Carigali-PTTEPI Operating Company Sdn Bhd (CPOC) to supply a tug and utility vessel. The contract was for a primary duration of three years.

The vessel would be used to support the offshore operations of CPOC in block B-17 in the Malaysia-Thailand Joint Authority development area.

At 9.10am, Tanjung added five sen to RM1.68 with 38,800 shares traded.

#Stocks to watch:* Dialog, Tenaga, Naim, Sealink, Tanjung Offshore

KUALA LUMPUR: After failing again to close above the key 1,500 level, which has proven to be formidable for the FBM KLCI, blue chips could trade in a narrow range again on Thursday, Oct 28 following the uninspiring overnight close on Wall Street.

Overnight, US stocks fell on Wednesday, as investors dialed back expectations of how aggressively the Fed would act to stimulate the economy.

With the uncertain outcomes of the U.S. elections and a Fed meeting next week, traders positioned themselves for more volatile markets. The CBOE Volatility index rose 2.4 percent and was up for the third consecutive day, according to Reuters.

The Dow Jones industrial average dropped 43.18 points, or 0.39 percent, to 11,126.28. The Standard & Poor's 500 Index lost 3.19 points, or 0.27 percent, to 1,182.45. But the Nasdaq Composite Index gained 5.97 points, or 0.24 percent, to 2,503.26.

Stocks to watch at Bursa Malaysia include DIALOG GROUP BHD [], TENAGA NASIONAL BHD [], NAIM HOLDINGS BHD [], SEALINK INTERNATIONAL BHD [] and TANJUNG OFFSHORE BHD [].

The Edge FinancialDaily reports on Thursday that Dialog is gearing up for exciting times ahead with the multi-billion-ringgit independent deepwater petroleum terminal project at Pengerang, Johor which will turn it into a regional oil storage and trading hub by 2017.

Tenaga Nasional will release its full-year financial results for the financial year ended Aug 31, 2010.

OSK Research pared down forecasts for FY10 by 8% as it believes its previous effective tariff forecast had been too bullish. It reduced Tenaga's fair value to RM9.76. However, it maintained a Buy on expectation of a short term catalyst from its proposed one-for-four bonus issue.

Naim Holdings secured a RM168.8 million contract from the Public Works Department for the infrastructure works of the the Bengoh Resettlement scheme in in Kuching.

It said the contract was expected to contribute positively to its the earnings for the financial years ending 2010 to 2012.

Sealink unit Sealink Engineering and Slipway Sdn Bhd has secured contracts for the sale of two offshore support vessels for about RM67 million. The vessels were expected to be delivered by the fourth quarter of 2010.

Tanjung Offshore received a RM22 million contract from Carigali-PTTEPI Operating Company Sdn Bhd (CPOC) to supply a tug and utility vessel. The contract was for a primary duration of three years.

The vessel would be used to support the offshore operations of CPOC in block B-17 in the Malaysia-Thailand Joint Authority development area.

ATIS CORPORATION BHD [] (Atis) and Atis IDR Ventures Sdn bhd (AIV) will not raise the current offer price of 97 sen per share for the remaining MUTIARA GOODYEAR DEVELOPMENT [] Bhd stake.

AmResearch keeps Buy on IJM Plantations, ups FV to RM3.20

KUALA LUMPUR: AmResearch is keeping its BUY??on IJM PLANTATION []S BHD [] with an increased fair value of RM3.20/share to account for a higher CPO price assumption.

???We like IJM Plantations for its pure exposure to CPO prices. We estimate that for every RM100/tonne change in CPO price, IJM Plantation???s net profit would improve by 3% to 4%,??? it said on Thursday, Oct 28.

AmResearch assumed an unchanged PE of 17 times on IJM Plantations??? FY12F basic EPS. Its PE-multiple assumption??is within IJM P???s four-year historical PE band of 6 times to 28 times. The group???s average PE was 19 times for the past four years.

AmResearch reaffirms Buy on Sealink

KUALA LUMPUR: AmResearch reaffirms its BUY rating on SEALINK INTERNATIONAL BHD [] with an unchanged fair value at 86 sen a share based on a PE target of 7.0 times.

Sealink announced on Wednesday, Oct 27 the sale of two supply vessels worth RM67 million, valued at RM33.5 million each, which is at par to the current going rate.

???We understand these vessels are still under CONSTRUCTION [] and should be ready for delivery by year-end. We are keeping our estimates as we have assumed five to six vessels to be sold in our earnings model,??? AmResearch said on Thursday.

???We gather that the group is looking to finalise the sale of two more vessels before the year closes out. Management guided that a RM55 million to RM60 million earnings range is within reach. Management also guided of the possibility of being awarded a long-term charter contract by year-end,??? it said.