Chip shares rise as market ends week flat

NEW YORK: Semiconductor shares rallied on Friday, Nov 19 as robust revenue from Marvell Technologies buoyed the sector, but the market ended flat for the week as investors backed away from a strong autumn advance.

The major stock indexes finished little changed on Friday after China's central bank raised bank reserve requirements for the second time in two weeks, stepping up its fight to rein in prices in a move that could temper growth.

The S&P 500 was just below 1,200, an important psychological level, and analysts said if it fails to break above that mark convincingly, the index could trade in a tight range for the rest of the year.

Volume was light as strength in the materials and tech shares offset earlier selling. On the Nasdaq, Marvell Technologies Group Ltd (MRVL.O) rallied 6.1 percent to $20.09 after its revenue topped expectations.

"A lot of the semis do well in an inflationary environment and we have been seeing more and more of our customers trying to set up for impending inflation," said Dave Lutz, managing director at Stifel Nicolaus in Baltimore.

William Delwiche, an investment strategist at Robert W. Baird & Co in Nashville, said overall sentiment indicators have grown too bullish.

He sees the market in a pullback or trading range "until we get the optimism worked off and some pessimism built up. At that point that could clear the way for the typical year-end rally supported by favorable Fed policy, strong seasonal trends, and strong breadth underlying the market."

The Dow Jones industrial average .DJI added 22.32 points, or 0.20 percent, to 11,203.55. The Standard & Poor's 500 Index .SPX edged up 3.04 points, or 0.25 percent, at 1,199.73. The Nasdaq Composite Index .IXIC put on 3.72 points, or 0.15 percent, to 2,518.12.

After a nearly 13 percent run-up in September and October, the S&P 500 has slipped 2.1 percent in the last two weeks on concerns of tightening in China and debt woes in Europe. A financial aid plan to help Ireland cope with its battered banks will be unveiled next week, EU sources said on Friday.

For the week, indexes were flat with the S&P inching up 0.04 percent, the Dow adding 0.1 percent, and the Nasdaq off 0.004 percent.

In a potentially positive sign, the S&P managed to break above its 20-day moving average after slipping below it earlier in the week.

Marvell helped boost the rest of the semiconductor sector, including SanDisk (SNDK.O), which rose 3.9 percent to $39.98. The semiconductor index .SOX gained 1.6 percent.

Also on the Nasdaq, Dell Inc (DELL.O) rose 1.7 percent to $13.90 after it raised its profit outlook.

General Motors Co (GM.N) eased 0.2 percent to $34.26 one day after its record-setting initial public offering. Separately, Harrah's Entertainment terminated its own IPO, citing market conditions. - Reuters

Gold steadies on Irish aid hopes

NEW YORK: Gold prices were little changed on Friday, Nov 19 as the euro bounced on growing confidence that Ireland's debt crisis will be resolved, but China's measures to tighten its economy kept bullion under pressure.

Bullion fell for a second consecutive week as the metal was caught up in broad-based selling, along with other commodities, by investors' need to liquidate positions amid increasing margin calls.

A financial aid plan to help Ireland cope with its battered banks will be unveiled next week, European Union sources said on Friday, but experts warned a rescue may not be enough to prevent contagion to other euro zone members.

"The sense of calm that has returned today and yesterday is taking away any safe-haven bid that may have emanated from the potential crisis," said Tom Pawlicki, a precious metals and energy analyst of MF Global.

At the same time, speculation about a possible interest rate hike by China, a top raw materials consumer, is likely to continue to weigh on gold and other commodities.

A decision by China on Friday to raise banks' required reserve ratios may not have been expected in the commodities markets, but many investors had factored in some form of government action to sap excess liquidity.

Spot gold was up 0.1 percent at $1,353.50 an ounce at 2:13 p.m. EDT, having earlier fallen as low as $1,341.40. U.S. gold futures for December delivery settled down 70 cents at $1,352.30.

Silver rose 1.3 percent to $27.27 an ounce.

COMEX volume continued to be lighter than earlier this week, when the markets sold off. Gold futures volume was more than 20 percent below its 30-day average, while silver turnover was largely in line with its average.

The gold market stabilized as the euro inched higher against the dollar.

Hopes that Ireland was near a deal to get tens of billions of euros from its European partners and the International Monetary Fund helped push the euro above $1.37 overnight, but momentum stalled ahead of resistance around $1.3750.

"The European situation will continue to play up, which should support metals," said Saxo Bank analyst Ole Hansen.

MF Global's Pawlicki said CME Group's (CME.O) decision to raise the margins to trade soy, sugar, rice and several other agricultural commodity contracts dented buying sentiment.

Silver, gold and other precious metals sold off recently after similar margin increases by the exchange triggered heavy liquidation, Pawlicki said.

Expectations that the dollar will weaken once more is still underpinning longer-term positive sentiment toward gold, analysts said. - Reuters

#Stocks to watch:* QSR, Tan Chong, RCE, Zelan

KUALA LUMPUR: Markets could start off the new week, Monday, Nov 22 on a cautious note after the major stock indexes finished slightly higher on Wall Street on Friday. China's central bank move to up the bank reserve requirements for the second time in two weeks, stepping up its fight to rein in prices in a move that could temper growth, kept buying in check.

The Dow Jones industrial average added 22.32 points, or 0.20%, to 11,203.55. The Standard & Poor's 500 Index edged up 3.04 points, or 0.25%, at 1,199.73. The Nasdaq Composite Index put on 3.72 points, or 0.15%, to 2,518.12.

Reuters said after a nearly 13% run-up in September and October, the S&P 500 has slipped 2.1% in the last two weeks on concerns of tightening in China and debt woes in Europe. A financial aid plan to help Ireland cope with its battered banks will be unveiled next week, EU sources said on Friday.

Stocks to watch on Bursa Malaysian on Monday include QSR BRANDS BHD [], TAN CHONG MOTOR HOLDINGS BHD [], RCE CAPITAL BHD [] and ZELAN BHD []. Also in focus would be Kimlun Corp Bhd, Tradewinds PLANTATION [] Bhd and Sinotop Holdings Bhd.

Tan Sri Halim Saad made a preliminary proposal to acquire all the entire business and undertakings of QSR Brands Bhd.

The offer was made via Idaman Saga Sdn Bhd, a private company owned by Tan Sri Halim Saad and Datuk Che Mokhtar'' Che Ali. No quantum of the financial offer was made known.

Tan Chong Motor recorded a 43.3% increase in net profit of RM49.34 million for the third quarter ended Sept 30, 2010 from RM34.43 million a year ago but it was more cautious in the remaining part of the year.

Revenue rose 16.8% to RM871.59 million from RM745.76 million. Earnings per share were 7.56 sen compared with 5.27 sen a year ago. Net asset per share was RM2.50.

RCE Capital earnings rose 65% to RM31.24 million in the second quarter ended Sept 30, 2010 as its new Syariah-based financing products picked up. It expected its performance to improve for the rest of the year.

Kimlun'' posted net profit RM8.39 million for the third quarter ended Sept 30, 2010 on the back of revenue RM119.41 million mainly due to a higher contribution from the CONSTRUCTION [] segment.

Tradewinds Plantation net profit doubled to RM50.29 million in the third quarter ended Sept 30, 2010 from RM24.41 a year ago as it benefited from higher prices of palm products and an increase in fresh fruit bunches.

On the downside to the corporate results, Zelan sank deeper into the red with losses of RM35.1 million, surpassing its revenue of RM30.70 million in the second quarter ended Sept 30, 2010 following cost overruns at its overseas projects.

Sinotop posted net loss RM6.46 million in the third quarter ended Sept 30, 2010 mainly due to impairments and unrealised loss on foreign exchange.

Zelan sinks deeper into red on cost overruns at overseas projects

KUALA LUMPUR: ZELAN BHD [] sank deeper into the red with losses of RM35.1 million, surpassing its revenue of RM30.70 million in the second quarter ended Sept 30, 2010 following cost overruns at its overseas projects.

It said on Friday, Nov 19 the 2Q net loss was worse than the net loss of RM13.85 million a year ago. Revenue fell sharply to only RM30.70 million, down 91.3% from RM351.79 million. Loss per share was 6.23 sen compared with 2.45 sen.

'This is due to lower contributions from the overseas projects of the engineering and CONSTRUCTION [] business unit,' it said.

Explaining the 2Q net loss it said it was mainly due to higher losses incurred by the existing overseas projects of the engineering and construction business unit.

'These projects encountered cost overrun due to material price escalation, under-budgeted items and additional costs arising from work delays offset by gain on sale of investments,' it said.

For the six months, net loss was RM34.23 million on the back of RM128.81 million compared with net loss of RM9.54 million and revenue of RM724.31 million in the previous corresponding period.

As of Sept 30, the group's current liabilities exceeded their current assets by RM72.24 million.

Zelan had partially disposed off its available-for-sale investment and received gross proceeds of about RM48.3 million between October and November 2010.

The proceeds from the disposal were used to repay borrowings and for working capital.

China raises RRR again as inflation fight intensifies

BEIJING: China ordered lenders on Friday, Nov 19 to lock up more of their money with the central bank for the second time in two weeks, stepping up its battle to pull excess cash out of the economy before inflation has a chance to take off.

The People's Bank of China said that it would increase banks' required reserves by 50 basis points, its fifth such announcement this year. Including a temporary increase, the move takes required reserve ratios (RRR) to 18.5 percent for big banks, a record high.

The increase was intended "to strengthen liquidity management and appropriately control money and credit issuance", the central bank said in a statement on its website (www.pbc.gov.cn).

The move was not a surprise and, in fact, could be something of a relief for investors who had expected worse.

"It suggests China is intent to manage price pressures through withdrawing liquidity from the system," said Dongming Xie, China economist at OCBC Bank in Singapore. "However, it also suggests that China is being cautious about aggressive monetary tightening."

The central bank made the announcement after domestic markets had closed for the weekend. The Australian dollar , which is sensitive to the strength of Chinese demand, fell briefly against the U.S. dollar.

Chinese stock markets have tumbled nearly 10 percent over the past six trading days on concerns that the government would ratchet up its monetary policy tightening after inflation sped to a 25-month high in October.

Such concerns were crystallised when China's cabinet vowed on Wednesday to take "forceful" measures, including price controls if necessary, to rein in inflation. [ID:nSGE6AH00A]

"This RRR hike will not reduce the chance of raising interest rates, and I expect the central bank will raise benchmark rates one more time within the year," said Lu Zhengwei, chief economist at Industrial Bank in Shanghai.

''

LOCKING UP CASH

China raised interest rates on Oct 19 -- the first time in nearly three years -- and most analysts still expect 2-4 more increases by the end of next year.

Increasing reserve requirements is a more direct approach to absorbing the excess liquidity that has been spurring Chinese inflation.

The 50 basis point RRR increase, which takes effect on Nov. 29, should lock up about 350 billion yuan that banks could otherwise lend.

Along with playing a key role in the fight against inflation, policy tightening also signals the government's confidence that the world's second-largest economy is on solid ground, even as the United States and European recoveries remain fragile.

In addition to increasing required reserves and interest rates, China has also issued strict orders to banks to curtail their lending.

"China tightening reserve requirements is just part of the arsenal that they will use and we would expect to see more of these measures coming through," said Michael Lewis, global head of commodities research at Deutsche Bank in London.

"Our sense is that energy and industrial metals are most exposed to this sort of Chinese action because obviously it is going to raise people's concerns about the growth outlook," he added.

Chinese policy makers have blamed monetary easing in the United States for propelling cash towards emerging markets, fuelling commodity price rises and inflation risks.

But most of the excess cash that lies at the root of inflation in China has domestic origins. To power the economy through the global financial crisis, Beijing called on banks to lend more aggressively.

Banks responded by unleashing an unprecedented credit surge and the government has been slow to mop up the money still cascading over the economy.

Food prices have driven Chinese inflation. Accounting for about a third of the consumer price index, food costs rose 10.1 percent in the year to October, while non-food inflation crept up just 1.6 percent.

Overall consumer price inflation reached 4.4 percent in October from a year earlier and many analysts expect that the November figure could breach 5 percent. The government's target was to keep inflation at a full-year average of 3 percent, but that is increasingly looking in doubt. - Reuters

Tan Chong 3Q net profit up 43% to RM49.34m

KUALA LUMPUR: TAN CHONG MOTOR HOLDINGS BHD [] recorded a 43.3% increase in net profit of RM49.34 million for the third quarter ended Sept 30, 2010 from RM34.43 million a year ago but it was more cautious in the remaining part of the year.

It said on Friday, Nov 19 revenue rose 16.8% to RM871.59 million from RM745.76 million. Earnings per share were 7.56 sen compared with 5.27 sen a year ago. Net asset per share was RM2.50.

Tan Chong said the overall nine-month results pointed to a more cautious second half of 2010. This was despite net profit of RM177.67 million, up 60.6% from RM110.6 million. Revenue was RM2.67 billion, an increase of 24.9% from RM2.13 billion.

'There has been a slowdown in 3Q compared to the first six months. To counter this, we started to invest in more advertising and promotion as well as marketing'' support activities to build up for the launch of the all-new Nissan Teana before Christmas,' it said.

Reviewing its third quarter results, Tan Chong said the period saw a pause in momentum, adding that the July-August sales hit a soft patch and September was a short month with Hari Raya holidays.

It said earnings before interest and tax margins fell from 10.5% in Q2 2010 to 8.3% in Q3 due to negative operating leverage as a result of slower revenue and a higher cost base.

'Gross margins remained intact due to a favourable foreign exchange rate on imports. However, operating expenses were higher than budget on the back of increased advertising and promotion costs taken up for the Raya promotion and Teana pre-launch events.

'The timing difference in expenditure incurred upfront before the start of actual sales is necessary to build a flagship model in the high end D-segment. We'' should be reaping the rewards of this investment soon,' it said.

On its prospects for the remainder of the year, Tan Chong said whilst the data pointed toward a much more cautious conclusion about the growth of the Malaysian economy, the preconditions for a pick up in 4Q appeared in place.

'We have a strong product pipeline to help support sales and guard against a loss of market share. The ringgit has strengthened from RM3.425 against the US dollar at the start of the year to around the RM3.12 level currently. These structural trends are accommodative for continued growth for the rest of the year,' it said.

Construction boost for Kimlun as 3Q profit hits RM8.39m

KUALA LUMPUR: Kimlun Corp Bhd posted net profit RM8.39 million for the third quarter ended Sept 30, 2010 on the back of revenue RM119.41 million mainly due to a higher contribution from the CONSTRUCTION [] segment.

It said on Friday, Nov 19 it expected the increase in construction activities in Malaysia and Singapore to have spill-over effects on the building and construction materials.

'The group continues to bid actively for construction projects and orders for pre-cast concrete products particularly for the supply of tunnel lining segments to Singapore MRT projects,' it said.

The Johor Bharu-based company said earnings per share in 3Q were 4.48 sen while net assets per share was 76 sen.

Kimlun expected the construction segment continued to be the main revenue contributor to the group, attributing 94.3% and 93.6% of the current quarter's and period's revenue,' it said.

For the nine months ended Sept 30, Kimlun's net profit was RM26.57 million on the back of RM374.62 million in revenue.

Kimlun, which was listed on the Main Market of Bursa Malaysia on June 26 this year, said its net profit in 3Q was 6.6% higher than the pro-rated pro-forma consolidated profit after tax of RM7.88 million a year ago.

Its three core businesses are manufacturing concrete products, buildings and infrastructure construction, and industrialised building systems

It said the increase in construction activities and its current order book, the board expected the group's performance to improve from 2009.

Impairments, forex loss drag Sinotop into the red

KUALA LUMPUR: Sinotop Holdings Bhd posted net loss RM6.46 million in the third quarter ended Sept 30, 2010 mainly due to impairments and unrealised loss on foreign exchange.

It said on Friday, Nov 19'' revenue was RM73.53 million while loss per shares was 0.64 sen. Its net asset per share was four sen.

Sinotop, formerly JOHN MASTER INDUSTRIES BHD [], said for the nine months ended Sept 30, net profit was RM18.61 million on the back of RM223.49 million in revenue.

During 3Q, the impairment of goodwill amounted to RM15.5 million; machinery written off RM1.7 million; unrealised loss on forex of RM1.1 million and expenses relating to corporate proposals written off at RM1.3 million.

'The goodwill is in respect of Sinotop, and it arose from the reverse acquisition of Sinotop (legal parent) by Be Top Group.'' The goodwill is impaired immediately on completion of the reverse acquisition as Sinotop on its own has minimal operations,' it said.

Excluding these items, Sinotop would have achieved a pre-tax profit of RM12.2 million for the 3Q and RM40.8 million for the nine months.

On the prospects, Sinotop said after the injection of new assets and businesses, it was expected to provide a different source of future income to the company.

Sinotop produces customised woven loom-state fabrics made from cotton, synthetic and mixed yarn.

Tradewinds Plantation 3Q net profit doubles to RM50.29m

KUALA LUMPUR: Tradewinds PLANTATION [] Bhd's net profit rose 106% to RM50.29 million in the third quarter ended Sept 30, 2010 from RM24.41 a year ago as it benefited from higher prices of palm products and an increase in fresh fruit bunches.

It said on Friday, Nov 19 revenue increased 30.1% to RM238.84 million from RM183.48 million, while earnings per share were 7.99 sen compared with 3.88 sen. Net assets per share was RM2.75.

Tradewinds Plantation declared a gross first interim dividend of five sen per share totaling RM19.84 million.

It also said the improved 3Q performance was due to lower share of losses in a jointly controlled entity.

Based on the prevailing prices of palm products, it expects the results for the remaining period of the current financial year to be better than the current reporting quarter.

New financing products, stronger demand boost RCE bottomline by 65%

KUALA LUMPUR: RCE CAPITAL BHD [] earnings rose 65% to RM31.24 million in the second quarter ended Sept 30, 2010 underpinned by stronger demand for its new Syariah-based financing products and expected its performance to improve for the rest of the year.

RCE, which provides personal loans and consumer-financing services to public and private sector employees, said on Friday, Nov 19 revenue rose 24.6% to RM74.62 million from RM59.88 million a year ago. Earnings rose to RM31.24 million from RM18.91 million.

'The improved level of revenue is in tandem with the increase in the group's loan disbursements and refinancing activities,' it said, adding the growth was substantially driven by stronger demand from existing and new customers as well as offering of newly improved Syariah-based financing products.

The group's resilient results translate into earnings per share of 3.99 sen in the current quarter, an improvement of 58% compared to 2.52 sen in the previous year's corresponding quarter.

RCE Capital recorded strong growth in its net loan receivables, up RM42.8 million from a year ago, despite the change in accounting treatments adopted for interest income and loan impairment in line with FRS139 Financial Instruments: Recognition and Measurement. This signifies the Group's focus in growing its lending activities.

'RCE Group will continue to pursue its marketing and product diversification strategies with a view of expanding market penetration and identifying new market segments. Barring any unforeseen circumstances, the group is optimistic of improving its performance for the rest of the year,' it said.

On the corporate front, it recently issued its ninth tranche of asset-backed securities totalling RM83.8 million which was accorded AAA-rating by RAM Ratings Services Bhd.

FBM KLCI closes firmly above 1,500-level

KUALA LUMPUR: Blue chips ended the week on a firmer note on Friday, Nov 19 above the psychologically-important 1,500 level, supported by buying of DiGi.com, Genting and Maybank.

At 5pm, the 30-stock index was up 0.63% or 9.40 points to 1,506.05. Gainers outpaced losers by 467 to 288, while 299 counters traded unchanged. Volume was 1.02 billion shares valued at RM1.44 billion.

For the week, the KLCI was up 6.24 points from the Nov 12 closing of 1,499.81 as the market was roiled by external factors including Ireland's debt woes and China's move to curb the rising inflation in the country.

Regional markets were mixed with Japan's Nikkei 225 up 0.09% to 10,022.39, the Shanghai Composite Index advanced 0.81% to 2,888.57, Taiwan's Taiex up 0.27% to 8.306.12, South Korea's Kospi gained 0.68% to 1,940.96. However, the Singapore Straits Times Index slipped 0.56% to 3,197.37 and Hong Kong's Hang Seng Index shed 0.13% to 23,605.71.

Chinese shares rebounded in afternoon trade on Friday, helping the Hong Kong market recoup most of its losses, on hopes that further interest rate rises in China would not be as aggressive as earlier feared, according to Reuters.

But Hong Kong's Hang Seng Index still ended slightly lower, weighed down by speculation that the city's government would announce fresh measures to curb soaring property prices. After the market close, the government said it would raise stamp duty on some transactions and take other measures to clamp down on property speculation.

At Bursa Malaysia, the mostly positive corporate earnings helped underpin investors' confidence on Friday.

KNM was the most actively traded counter with 45.63 million shares done. The stock gained half a sen to 44 sen.

Trading interest was sparked by its unit KNM Process Systems Sdn Bhd's success in securing a US$216 million (RM680 million) bid to develop gas condensate fields in Uzbekistan from Lukoil Uzbekistan Operating Company.

DiGi rose RM1.10 to RM25.60 making it the top gainer; SunCity added 32 sen to RM4.32, Hap Seng 30 sen to RM4.48, LPI Capital 26 sen to RM11.80, Batu Kawan 20 sen to RM15.80 and Top Glove 19 sen to RM5.74.

Genting, RHB Capital and KL Kepong were up 18 sen each to RM10.22, RM8 and RM20 respectively, YTL Corp up 17 sen to RM8.30 and Maybank added 14 sen to RM8.96.

Among the decliners, BAT fell 66 sen to RM45.54, Dutch Lady lost 22 sen to RM17.88, Panasonic down 18 sen to RM18.42, Masterkill lost 13 sen to RM2.12.

NUBE demands 80 months bonus for Maybank clerical staff

KUALA LUMPUR: The National Union of Bank Employees (NUBE), which represents commercial banks' clerical and non-clerical staff in Peninsular Malaysia, is demanding an 80-month bonus arrears for the last 10 years for its 5,000 members in Maybank.

Union secretary-general J. Solomon said the demand was based on the premise that similar bonuses were paid by the bank to its executive staff over the last 10 years.

While NUBE was proud that Malaysian corporations were doing well, however recognition and rewards should be equal for all categories of workers, he told Bernama here on Friday, Nov 19.

'For the first quarter of this year, Maybank's profits had surpassed the RM1 billion mark, and NUBE members also contributed to this and as such, should be'' duly rewarded,' he said.

On Oct 14, the union had written a letter to the bank with the demand, but'' had yet to receive a reply, he added. ' Bernama

Bank Negara foreign reserves up US$500m to US$105.8b

KUALA LUMPUR: Bank Negara Malaysia's international reserves as at Nov 15 rose to US$105.8 billion (RM326.5 billion) from US$105.3 billion (RM324.9 billion) on Oct 29 during the period the FBM KUALA LUMPUR COMPOSITE INDEX [] closed at an all-time historic high of 1,529.01.

'The reserves position is sufficient to finance 8.8 months of retained imports and is 4.5 times the short-term external debt,' it said on Friday, Nov 19.

In terms of ringgit, the international reserves rose RM1.6 billion during the two-week period.

The market capitalisation of Bursa Malaysia increased from RM1.204 trillion on Oct 29 to RM1.209 trillion on Nov 15.

During the period, the KLCI surged to an intra-day high of 1,531.99 on Nov 9 and market capitalisation increased to RM1.228 trillion.

#Flash* Halim Saad makes preliminary proposal to take over QSR

KUALA LUMPUR: Tan Sri Halim Saad has made a preliminary proposal to acquire all the entire business and undertakings of QSR BRANDS BHD [].

QSR said on Friday, Nov 19 it had on Thursday received the proposal from AmInvestment Bank Bhd and Newfields Advisors Sdn Bhd, on behalf of Idaman Saga Sdn Bhd, a private company owned by Tan Sri Halim Saad and Datuk Che Mokhtar'' Che Ali.

'The board is in the midst of deliberating on the proposal and will make further announcement(s) in due course,' said QSR.

Gains capped on Bursa Malaysia as HK, China markets tumble

KUALA LUMPUR: The FBM KLCI managed to stay above'' 1,500 at mid-day on Friday, Nov 19 while most'' regional markets pared their gains after the Hong Kong and China markets slumped.

On Bursa Malaysia, the FBM KLCI was up 4.01 points to 1,500.66, lifted by gains including at Genting, Maybank, KLK and RHB Capital. Gainers led losers by 376 to 245, while 294 counters traded unchanged. Volume was 591.09 million shares valued at RM707.58 million.

The Hang Seng Index tumbled 1.4% to 23,306.39 and the Shanghai Composite Index fell 1.1% to 2,833.98 following a media report that Hong Kong's government was expected to unveil further measures to cool its red-hot real estate market

The government would release the measures as early as Friday, a day after the International Monetary Fund urged Hong Kong to draw up more policies to curb fast-climbing prices, the Hong Kong Economic Journal quoted sources as saying, according to Reuters.

The report did not provide details of what the steps might include, but some analysts have said the government could raise stamp duty on sales of some apartments, it said. Government officials were not immediately available for comment, said Reuters.

Japan's Nikkei 225 was up 0.15% to 10,029.10, Taiwan's Taiex edged up 0.12% to 8,292.26, the South Korean Kospi gained 0.23% to 1,932.26 while Singapore's Straits Times Index shed 0.58% to 3,196.62.

The ringgit weakened 0.08% to 3.1250 versus the USD, crude palm oil futures for the third month delivery shed RM39 per tonne to RM3,278; crude oil slipped 25 cents per barrel to US$81.60 while gold added 13 cents an ounce to US$1,353.20.

On Bursa Malaysia, among the major gainers, DiGi rose 18 sen to RM24.68, Nestle and Genting added 16 sen each to RM43.36 and RM10.20, BLD PLANTATION []s rose 15 sen to RM5.05, Maybank added 12 sen to 8.94, Gamuda up 11 sen to RM3.70, KLK rose eight sen to RM19.90 while RHB Capital was up six sen to RM7.88.

Among the decliners, BAT was the top loser this morning and fell 20 sen to RM46; Dutch Lady lost 10 sen to RM18, SHL Consolidated and Daibochi lost nine sen each to RM1.21 and RM2.69, Petronas Gas and Petronas Dagangan fell eight sen each to RM11.20 and RM11.12, Masterskill down seven sen to RM2.18 while Kawan Food, SEG International and Jerneh fell six sen each to RM1.42, RM2.08 and RM3.14 respectively.

KNM was the most actively traded stock with 31.84 million shares done. The counter added one sen to 44.5 sen. Other actives this morning included Jotech, Tejari, Salcon and Time.

FBM KLCI rebounds

KUALA LUMPUR: The FBM KLCI rebounded on Friday, Nov 19 in line with the overnight gains at Wall Street and the generally positive sentiment at the regional markets.

At mid-morning, the 30-stock index was up 6.76 points to 1,503.41. Gainers outpaced losers by 362 to 88, while 193 counters traded unchanged. Volume was 253.92 million shares valued at RM233.14 million.

RHB Research Institute Sdn Bhd said that the FBM KLCI's recovery yesterday had managed to sustain the index at above the 40-day Simple Moving Average (SMA) of 1,490.
This means another chance for it to stage a technical rebound from the recent selldown today, it said.

'However, given the slight downward tick on the 10-day SMA near 1,511 and the poor state of the short-term momentum readings, trading activities are likely to stay under pressure.

'Although the overnight rally in US markets may lift buying instinct slightly, the possibility of more tightening measures ahead in China may dampen appetite, investors are more likely to apply the 'wait-and-see' strategy before jumping back onto the bandwagon, in our view,' it said in a note Nov 19.

The research house expects range-bound trading today as the FBM KLCI fluctuates between the two SMAs (1,490 ' 1,511), with most investors staying sideline ahead of the weekend.

On Bursa Malaysia, QSR Brands and KFCH were among the top gainers before the counters requested for trading halt from 9.30am pending a material announcement. QSR was up 29 sen to RM5.76 while KFCH added 28 sen to RM4.25.

Among the other gainers, Nestle rose 28 sen to RM43.48, Genting was up 20 sen to RM10.24, Warisan up 17 sen to RM2.62, Hong Leong Industries gained 16 sen to RM5.76, Batu Kawan up 14 sen to RM15.74 while Kulim, which also requested for a trading halt of its shares from 9.30am, was up 16 sen to RM13.54 prior to its suspension.

Among the decliners, Kawan Food fell six sen to RM1.42, Daibochi down five sen to RM2.73, while NPC, Narra, Petronas Dagangan, LBI Capital and Masterskill fell four sen each to RM2.16, 63.5 sen, RM11.16, 69 sen and RM2.21 respectively.

KNM, which has landed a US$216 million job in Uzbekistan, was the most actively traded counter with 19.2 million shares done. The stock added 1.5 sen to 45 sen. Other actives included Jotech, Salcon, Tejari, Ho Wah Genting and Karambunai.

At the regional markets, Japan's Nikkei 225 was up 0.61% to 10,074.55, Taiwan's Taiex was up 0.89% to 8,356.81, the South Korean Kospi added 0.27% to 1,933.04, while Singapore's Straits Times Index and the Shanghai Composite Index shed 0.02% each to 3,214.45 and 2,864.91, and Hong Kong's Hang Seng Index opened 0.1% lower at 23,612.24.

Asian markets up on U.S., Europe cheer

SINGAPORE: Asian stock markets rose slightly on Friday, Nov 19 and the'' euro held firm after a strong Wall Street performance and moves towards heading off a potential Irish debt crisis.

The overnight momentum carried over into Friday and at 0130 GMT the MSCI All-Country World equity index was up nearly half a percent at 464.05 after hitting a one-month low earlier in the week.

Shares in Shanghai and South Korea rose and Japan's Nikkei average climbed more than 1 percent to a five-month high above 10,000, propelled by buying by overseas hedge funds and a fall in the yen, which makes exporters look more attractive.

Blue-chip shares rose broadly. Banking shares were likely buoyed by short-covering and fresh buying by a U.S. brokerage on the view that they are undervalued, one market player said.

The charts also point to stronger upside potential after the Nikkei on Thursday broke through solid resistance at its 200-day moving average for the first time since May. The next target looms around its June high of 10,251.90.

"Many hedge funds close books in November and now is a time when short-covering tends to emerge. Solid U.S. economic data and GM's listing yesterday are also lending help," said Hiroaki Kuramochi, chief equity marketing officer at Tokai Tokyo Securities.

The Nikkei rose earlier as much as 1.2 percent to 10,130.23, its highest level since June 22.

The euro edged up 0.11 percent to $1.3627, supported by rising expectations of a financial rescue plan for Ireland. [ID:nLDE6AH0HV]

The dollar held steady against a basket of currencies and against the yen. .

News that Ireland may avert a debt crisis weighed on bonds. The benchmark 10-year U.S. Treasury note fell 5/32 in price to lift yields to 2.90 percent.

U.S. crude oil futures gained nearly 50 cents to $82.11 per barrel, retracing part of a four-session drop, while spot gold was up $6.20 to $1,359.65 an ounce.

''

GM WOWS WALL STREET; IRISH EYES SMILING

Global stocks rose on Thursday as a blockbuster General Motors Co stock offering dovetailed with upbeat U.S. economic data and easing Irish debt tensions.

GM's return to the market less than 18 months after it emerged from bankruptcy, raised $20.1 billion, the largest U.S. initial public offering. [ID:nN18285952]

Manufacturing activity in the U.S. Mid-Atlantic region grew much more than expected, a survey from the Philadelphia Federal Reserve Bank showed. An improvement in weekly initial claims for U.S. jobless benefits helped boost the dollar. [ID:nN18248194]

The U.S. data helped erode some of the euro's gains as uncertainty about the Irish crisis ebbed after Dublin agreed to work with a European Union-International Monetary Fund mission on steps to shore up its battered banking sector. [ID:nLDE6AH0HV] [ID:nLDE68T0MG]

But analysts are skeptical any rebound in risk appetite can be sustained when fiscal problems are still severe in Ireland and other peripheral euro-zone countries such as Portugal and many investors are inclined to cut risk exposure before the year-end.

"It's absolutely vital for the authorities to take pro-active steps in order to try to resolve this crisis as soon as possible. The market should see some relief in relation to that," said Henk Potts, equity strategist at Barclays Wealth.

The Dow Jones industrial average rose 1.57 percent on Thursday. The Standard & Poor's 500 Index gained 1.54 percent and the Nasdaq Composite Index added 1.55 percent.

The pan-European FTSEurofirst 300 index of top shares climbed 1.43 percent. - Reuters

#Flash* Kulim shares halted for announcement

KUALA LUMPUR: Trading in KULIM (M) BHD [] was halted at 9.30am on Friday, Nov 19 pending a material announcement.

Kulim was up 16 sen to RM13.54 before it was suspended. However, shares of related companies in KFC Holdings and QSR advanced.

At 9.48am, QSR was up 29 sen to RM5.76, QSR-WB added 18 sen to RM2.68 while KFCH rose 28 sen to RM4.25 and KFC-WB added 21 sen to RM2.25.

OSK Research upgrades KNM to Trading Buy

KUALA LUMPUR: OSK Research has upgraded KNM GROUP BHD [] to a Trading Buy with a Target Price of 56 sen after securing a US$216 million (RM680 million) bid to develop gas condensate fields in Uzbekistan from Lukoil Uzbekistan Operating Company.

The research house said on Friday, Nov 19 KNM's current share price has an upside of about 29% to its target price of 56 sen which it derived based on a PER of 9x FY11 earnings.

'We are upgrading our call to Trading Buy from Neutral previously,' it said. 'We believe its share price would react positively to this big one-off contract in the short term.'

OSK Research said for KNM's share price sustainability in the longer term, investors would need assurance on the

continuous contract flows which it still doubted as the global O&G industry had not fully reached its recovery stage in the past 12 months although crude oil price had stabilised between US$70 to US$80 a barrel over the period.

It said as more countries raise interest rates, this may suppress the global economic growth, which then result in lower demand for energy (O&G) and this again may delay the oil majors and national oil companies from spending further capex.

'Do note that KNM is a global O&G process equipment company and hence its business is dependent on the health of the global economy rather than Malaysia alone. Therefore, we have a Trading Buy call on the stock rather than a Buy,' it said.

Hwang DBS Vickers Research sees FBM KLCI bouncing up

KUALA LUMPUR: Hwang DBS Vickers Research said following Thursday, Nov 18's 6.9-point drop, which apparently was caused mainly by Maybank which went ex-dividend, it expects the FBM KLCI to bounce up on Friday and cross the psychological mark of 1,500.

In its market review and outlook, it said Maybank's stock went ex-dividend for 44 sen per share, which contributed to a 4.8-index point decline.

'Essentially, sentiment will likely get a boost from an overnight surge on Wall Street. Major U.S. bellwethers jumped between 1.5% and 1.6% at the closing bell lifted by hopes that Ireland's debt crisis is about to be resolved while the U.S. economy is showing signs of recovery,' it said.

Amid the positive backdrop, stocks that could see added trading interest on Friday include KNM, which has just won a RM680m two-year contract in Uzbekistan.

Also in focus would be Leong Hup and Emivest after their major shareholders have offered to acquire the entire business for RM318.7m (or RM1.80 per Leong Hup share) and RM108.0m (or RM0.90 per Emivest share).

KNM up in active trade on RM680m contracts

KUALA LUMPUR: Shares of KNM GROUP BHD [] rose in active trade after it secured a US$216 million (RM680 million) bid to develop gas condensate fields in Uzbekistan from Lukoil Uzbekistan Operating Company.

At 9.09am, it was up 1.5 sen to 45 sen. It was the most active with 12.59 million shares done.

The FBM KLCI was up 4.10 points to 1,500.75. Turnover was 79.72 million shares valued at RM63.91 million. There were 228 gainers, 35 losers and 81 stocks unchanged.

OSK Research upgraded KNM to a Trading Buy with a Target Price of 56 sen. It said KNM's current share price had an upside of about 29% to its target price of 56 sen which it derived based on a PER of 9x FY11 earnings.

However, it cautioned for KNM's share price sustainability in the longer term, investors would need assurance on the continuous contract flows.

OSK Research said'' the global O&G industry had not fully reached its recovery stage in the past 12 months although crude oil price had stabilised between US$70 to US$80 a barrel over the period.

Emivest, Leong Hup up on takeover offer

KUALA LUMPUR: Shares of EMIVEST BHD [] and LEONG HUP HOLDINGS BHD [] climbed in early trade on Friday, Nov 19 after they received a takeover offer from their common major shareholder totaling RM426 million.

At 9.18am, Emivest was up 3.5 sen to 85.5 sen. There were 1.71 million shares done at prices ranging from 85 sen to 87.5 sen.

Leong Hup added two sen to RM1.71. There were 1.85 million shares transacted at prices ranging from RM1.70 to RM1.74.

Major shareholder Emerging Glory Sdn Bhd had made an offer to acquire all the assets and liabilities of both companies.

Leong Hup said the offer for its assets and liabilities was RM318.65 million or RM1.80 per ordinary RM1 share.

Emivest was offered RM108 million or 90 sen per ordinary 50 sen share for all the assets and liabilities.

However, investors should be aware that Emerging Glory had said in the offer letter to Leong Hup that of the RM318.65 million, about RM169.70 million would be in cash and the remaining RM148.95 million as amount remaining due and owing by Emerging Glory as debt to Leong Hup.

As for Emivest, Emerging Glory's offer letter stated that of the purchase consideration of RM108 million, about RM46.35 million would be in cash and the remaining RM61.64 million would be remaining due by Emerging Glory as debt due to Emivest.

GLOBAL MARKETS-GM's IPO, US data drive stock and commodity gains

NEW YORK: A blockbuster General Motors Co stock offering dovetailed with upbeat U.S. economic data and easing Irish debt tensions to lift global stocks on Thursday, Nov 18, while the dollar gained on the yen and cut losses versus the euro.

GM's return to the market less than 18 months after it emerged from government-funded bankruptcy raised $20.1 billion, the largest initial public offering in U.S. history, and provided positive support for investor sentiment.

"This is bigger than just an IPO. It's an American icon coming back onstream and it is feeding optimism to the stock market," said Bernie McGinn, president of McGinn Investment Management in Alexandria, Virginia.

The momentum appeared set to carry over into Friday trade in Tokyo. The December futures contract for the Nikkei 225 stock index trading in Chicago rose 15 points to 10,135.

Commodity prices rose while U.S. government debt prices fell as credit tensions eased.

Manufacturing activity in the U.S. Mid-Atlantic region grew much more than expected, according to a survey from the Philadelphia Federal Reserve Bank. An improvement in the latest weekly initial claims for U.S. jobless benefits also helped strengthen the dollar..

The U.S. data helped erode the euro's gains as uncertainty about the Irish crisis ebbed after Dublin agreed to work with a European Union-International Monetary Fund mission on steps to shore up its battered banking sector.

But analysts remained skeptical that any rebound in risk appetite would be sustained, with fiscal problems still severe in Ireland and other peripheral euro-zone countries such as Portugal, and many investors inclined to cut risk exposure before year-end.

"It's absolutely vital for the authorities to take pro-active steps in order to try to resolve this crisis as soon as possible. The market should see some relief in relation to that," said Henk Potts, equity strategist at Barclays Wealth.

At the close, the Dow Jones industrial average rose 173.35 points, or 1.57 percent, to 11,181.23. The Standard & Poor's 500 Index gained 18.10 points, or 1.54 percent, to 1,196.69. The Nasdaq Composite Index added 38.39 points, or 1.55 percent, at 2,514.40.

GM's common stock, priced at $33 in the initial public offering on Wednesday night, closed up 3.6 percent at $34.19l, losing momentum after an early pop up to $35.99. GM accounted for over 5 percent of regular trading session volume on the New York Stock Exchange.

Dell Inc's quarterly margins and profit beat Wall Street expectations. The world's No. 2 PC maker raised its yearly income forecast, sending its shares up 6.2 percent to $14.51 in after-hours trade from a $13.67 close on Nasdaq.

The pan-European FTSEurofirst 300 index of top shares climbed 1.43 percent to close at 1,108.12 after being as low as 1,091.06.

"Ireland had been the cause of the sell-off this week and with the country keen to talk to the IMF/EU, this has calmed everyone's jitters," said Mark Priest, senior equities trader at ETX Capital

"If everything is going to be stable and they are going to throw money at the problem, then there is no reason why these markets can't rally."

The MSCI All-Country World equity index rose 1.61 percent after hitting a one-month low on Wednesday.

The gains came after Japan's Nikkei jumped 2.1 percent on Thursday to close above 10,000 for the first time since late June. Shares in Shanghai rose, as did broader emerging stocks, which rose 1.57 percent.

EURO'S GAINS TRIMMED

Enthusiasm for stocks led to some paring back of the euro's gains after Ireland's central bank chief said he expected Dublin to receive tens of billions of euros in loans from European partners and the IMF.

The euro gained 0.89 percent to $1.3638, but that represented a pullback from its earlier 1.1 percent gain to a session high of about $1.3668 on the EBS trading platform.

Analysts cautioned, however, that lingering worries about other debt-stricken European economies, including Portugal and Spain, will likely continue to weigh on the euro, which has lost about 3 percent this month as funds liquidated long positions.

The dollar fell 0.61 percent versus a basket of currencies. But it rose 0.32 percent to 83.51 yen.

The 10-year Irish/German government bond yield spread was last at 567 basis points, around 15 basis points tighter for the day but off the session's tightest levels.

The benchmark 10-year U.S. Treasury note fell 5/32 of a point in price, lifting the yield to 2.90 percent.

U.S. crude oil futures rose $1.41 to settle at $81.85 per barrel, retracing part of a four-session drop, while spot gold gained $16.55 to $1,353.40 an ounce. - Reuters

STOCKS NEWS ASIA-Shares will gain on GM debut, Ireland

WELLINGTON: Asian stocks will likely climb on Friday, Nov 19, as a strong debut from General Motors and easing fears about Ireland's debt problems saw global markets rise.

GM's shares gained 3.6 percent in its first day of trade, renewing confidence in the equity market which has had a torrid month to date.

Demand for GM helped push the main Wall Street indexes around 1.5 percent higher, although the market retreated from earlier 2 percent gains as technical resistance proved too strong.

The concern about Ireland's banking crisis, which have dominated markets this week eased after the country's central bank chief said he expected Dublin to receive tens of billions of euros in loans.

Strong economic data added to the positive mood, with positive readings on jobless claims, factory activity and a gauge of future economic activity.

Asian stocks listed on Wall Street <.BKAS> rose 2.2 percent.

British shares <.FTSE> rose 1.3 percent while European shares <.FTEU3> gained 1.4 percent on easing Irish fears and stronger commodity prices <.CRB>.

The euro advanced strongly against the U.S. dollar and the yen , while the greenback was also stronger against the Japanese currency.

Stronger equity markets and a weaker currency are likely to boost Japanese markets, which jumped on Thursday more than 2 percent through the 10,000 level for the first time since June.

Nikkei futures traded in Chicago <2NKc1> 140 points were above the last closing level in Osaka .

Australian shares are also seen making a solid start, with share index futures up 0.6 percent to 4,684, a 43.8 point premium to the underlying S&P/ASX 200 index <.AXJO>. - Reuters

#Stocks to watch:* Leong Hup, Emivest, KNM, Tenaga

KUALA LUMPUR: Stocks on Bursa Malaysia are likely to rebound on Friday, Nov 19, underpinned by the firmer overnight close on Wall Street on expectations of a resolution of Ireland's banking crisis.

However, concerns about the impact of China's move to curb imports and keep a rein on inflationary pressure could check the gains.

On Wall Street, U.S. stocks jumped on Thursday on expectations of a resolution of Ireland's banking crisis, but the S&P 500's inability to break through resistance suggests stocks could be in a tight range through the end of the year, according to Reuters.

The Dow Jones industrial average gained 173.35 points, or 1.57 percent, to 11,181.23. The Standard & Poor's 500 rose 18.10 points, or 1.54 percent, to 1,196.69. The Nasdaq Composite added 38.39 points, or 1.55 percent, to 2,514.40.

General Motors Co's shares gained 3.6 percent in its return to public trading and accounted for about 5.1 percent of regular session volume

Stocks to watch on Bursa include LEONG HUP HOLDINGS BHD [] and EMIVEST BHD [], KNM GROUP BHD [], TENAGA NASIONAL BHD [] and Pentamaster Corp Bhd. Other stocks to watch are Hong Leong Industries and IOI Corp Bhd.

Tycoon Tan Sri Quek Leng Chan appears to be competing with his counterpart T Ananda Krishnan in the privatising and relisting game ' this time resurfacing the assets of previously listed Hume Industries (Malaysia) Bhd just seven months after de-listing the company this April.

More details in The Edge FinancialDaily.

Leong Hup and Emivest received takeover offer totaling RM426 million from a major shareholder Emerging Glory Sdn Bhd to acquire all their assets and liabilities.

Leong Hup said on Thursday, Nov 18, the offer for its assets and liabilities was RM318.65 million or RM1.80 per ordinary RM1 share. Emivest said Emerging Glory had offered to acquire all assets and liabilities for RM108 million or 90 sen per ordinary 50 sen share

KNM Group Bhd unit KNM Process Systems Sdn Bhd has won a US$216 million (RM680 million) bid to develop gas condensate fields in Uzbekistan from Lukoil Uzbekistan Operating Company.

KNM received notification on Nov 16 about the successful bid to supply technical documentation, equipment and services for the development of gas condensate fields, that is'' Adamtash, Gumbulak and Djarkuduk Yangi Kizilcha.

The arbitral tribunal has ruled in Tenaga's favour in its dispute with Segari Energy Ventures Bhd (SEV). The tribunal ruled Tenaga was entitled to RM14.51 million out of the RM43.69 million claimed.

'Tenaga's counterclaim of RM50.87 million is partly allowed in the amount of RM17.71 million,' it said.

PLANTATION [] heavyweight IOI Corp posted marginally better results for its 1QFY11 ended Sept 30 as net profit rose 4% year-on-year (y-o-y) to RM498.13 million on higher palm oil prices and lower finance costs

Automated equipment manufacturer Pentamaster posted net loss of RM2.09 million in the third quarter ended Sept 30, 2010 mainly due to a change in sales mix resulting in lower profit margin.

Pentamaster remained cautious in the fourth quarter and expected softer demand for automated equipment. Revenue fell 10% to RM20.06 million from RM22.17 million a year ago due to a decline in demand in the industrial sector for material handling system.

Slower growth in N. American semiconductor equipment manufacturers industry

KUALA LUMPUR: North America-based manufacturers of semiconductor equipment experienced slower growth as the book-to-bill ratio for October was 0.98, down for the first time since June 2009.

The US-based Semiconductor Industry Equipment Manufacturers Industry (SEMI) reported on Thursday, Sept 18 said it posted US$1.59 billion in orders in October 2010 (three-month average basis).

A book-to-bill of 0.98 means that US$98 worth of orders were received for every $100 of product billed for the month.

"The October book-to-bill ratio dipped below parity for the first time since June 2009 as continued billings strength was accompanied by a hesitation in new orders,' said Stanley T. Myers, president and CEO of SEMI.

"The market for new equipment reflects seasonal softening and near-term respite in capital spending in some segments of the industry. However, bookings remain at more than double the figure reported one year ago and above the average figure reported during the 2006-2007 cycle.'

The three-month average of worldwide bookings in October 2010 was US$1.59 billion. The bookings figure is 3.5% lower than the final September 2010 level of US$1.65 billion, and is 110.7% above the US$756.3 million in orders posted in October 2009.

The three-month average of worldwide billings in October 2010 was US$1.62 billion. The billings figure is up 0.7% from the final September 2010 level of US$1.61 billion, and is 133.7% above the October 2009 billings level of US$694.1 million.

OSK Research Neutral on Sunway REIT, TP 98c

KUALA LUMPUR: OSK Research has initiated coverage of Sunway Real Estate Investment Trust (Sunway REIT), which is the largest Malaysian REIT (M-REIT) with an asset size of RM3.7bn and a free float of about RM1.6bn.

It said on Friday, Nov 19 that it has accorded a Neutral call on Sunway REIT at 98 sen based on 1.0 times P/NAV with a Neutral call.

OSK Research said Sunway REIT provided investors with exposure to the retail, hospitality and office sub-sectors, Sunway REIT is a defensive REIT that offers unit holders a longer-term growth catalyst.

'Given its low dividend yield of 6.7% (vs the sector's 8.0%) and the fact that it will be trading at 1.0x P/NAV, Sunway REIT may likely to appeal to only certain classes of investors, especially those with a defensive investment strategy,' it said.

Dell profit, margin top Street estimates

SAN FRANCISCO: Dell Inc's quarterly margins and profit beat Wall Street expectations and it raised its yearly income forecast on solid demand from large corporations and lower component costs, sending shares 6.2 percent higher on Thursday, Nov 18.

The world No. 2 PC maker, which benefited from falling prices for components such as hard drives and memory, expects full-year revenue to track toward the mid-point of the 14 percent to 19 percent growth range set earlier this year.

It expects non-GAAP operating income should grow between 28 and 32 percent, above an earlier forecast.

However, revenue came in below analysts' average forecast.

Dell's shares were halted after-hours before rising 6.2 percent to $14.51 from their close of $13.67 on Nasdaq.

Analysts pointed to a big beat on Dell's closely watched gross margin number: about 20 percent in the third quarter versus expectations of 17.5 percent.

"Gross margin is obviously the key headline here at 20 percent, obviously well above the Street," said Stifel Nicolaus analyst Aaron Rakers. "Leverage in the model is going to be key as people gauge the sustainability of what was a very strong gross margin number."

Dell consequently beat earnings forecasts by a wide margin. It reported net earnings for the third quarter ended Oct. 29 of $822 million, or 42 cents a share, up from $337 million, or 17 cents a share, in the year-ago period.

Excluding items, Dell earned 45 cents a share, better than the average analyst estimate of 32 cents a share, according to Thomson Reuters I/B/E/S.

But revenue rose 19 percent to $15.4 billion, below Wall Street's estimate of $15.76 billion.

Shares of Round Rock, Texas-based Dell had gained 2.4 percent in the regular session. - Reuters

Leong Hup, Emivest major shareholder make RM426m takeover offer

KUALA LUMPUR: LEONG HUP HOLDINGS BHD [] and EMIVEST BHD [] have received takeover offer totaling RM426 million from a major shareholder Emerging Glory Sdn Bhd to acquire all their assets and liabilities.

Leong Hup said on Thursday, Nov 18, the offer for its assets and liabilities was RM318.65 million or RM1.80 per ordinary RM1 share.

In a separate statement, Emivest said Emerging Glory had offered to acquire all assets and liabilities for RM108 million or 90 sen per ordinary 50 sen share.

Leong Hup and Emivest said both offers were inter-conditional and they would remain open for acceptance up till 5.30pm on Dec 20 after which it shall lapse unless Emerging Glory agrees to extend the period.

Emerging Glory said in the offer letter to Leong Hup that of the RM318.65 million, about RM169.70 million would be in cash and the remaining RM148.95 million as amount remaining due and owing by Emerging Glory as debt to Leong Hup.

Datuk Lau Bong Wong, Lau Chia Nguang, Datuk Lau Eng Guang, Tan Sri Lau Tuan Nguang, Leong Hup Management Sdn Bhd collectively hold 82.749 million Leong Hup shares or 46.74%.

As for Emivest, Emerging Glory offer letter stated that of the purchase consideration of RM108 million, about RM46.35 million would be in cash and the remaining RM61.64 million would be remaining due by Emerging Glory as debt due to Emivest.

Datuk Lau Bong Wong, Lau Chia Nguang, Datuk Lau Eng Guang, Tan Sri Lau Tuan Nguang, Mega Perfect'' (M) Sdn bhd coelctivekly hold 68.49 million Emivest shares or 57.08%.

Arbitral tribunal rules in Tenaga favour, entitled to RM14.5m claim

KUALA LUMPUR: The arbitral tribunal has ruled in TENAGA NASIONAL BHD []'s favour in its dispute with Segari Energy Ventures Bhd (SEV).

Tenaga said on Thursday, Nov 18 the tribunal ruled Tenaga was entitled to RM14.51 million out of the RM43.69 million claimed.

'Tenaga's counterclaim of RM50.87 million is partly allowed in the amount of RM17.71 million,' it said.

To recap, on Aug 29, 2007, SEV commenced arbitration proceedings against Tenaga on the basis that Tenaga had allegedly wrongfully deducted a sum of RM43.69 million from available capacity payments due and payable to SEV for October 2005, August 2006 and February 2008.

Tenaga responsed that such sum was legally deducted in accordance with the terms of the power purchase agreement between Tenaga and SEV following the latter's failure to comply with dispatch instructions.

Thus, Tenaga filed a counterclaim for a declaration that the amount of RM43.69 million had been lawfully deducted.

On or about March 2009, Tenaga noticed an error in the calculation of the amount deducted for the month of February 2008, leaving a shortfall of RM282,734.88 due to Tenaga. Tenaga amended its counter claim to also seek payment of this amount.

In addition, Tenaga had also filed in a counterclaim for an account to be taken for overpayments of energy payment made by Tenaga to SEV, estimated to amount to RM50.87 million (or RM34 million in the event the tribunal holds that Tenaga's claim between the period of Oct 3, 1999 and Dec 14, 2001 is barred by limitation).

Pentamaster in the red, cautious on 4Q

KUALA LUMPUR: Automated equipment manufacturer PENTAMASTER CORPORATION BHD [] posted net loss of RM2.09 million in the third quarter ended Sept 30, 2010 mainly due to a change in sales mix resulting in lower profit margin.

Pentamaster said on Thursday, Nov 18, it remained cautious in the fourth quarter and expected softer demand for automated equipment.

Revenue fell 10% to RM20.06 million from RM22.17 million a year ago due to a decline in demand in the industrial sector for material handling system.

'Consequently, the group registered a loss before tax of RM1.9 million as compared to profit before tax of RM300,000 a year ago,' it said.

When compared to the second quarter (2Q), revenue fell by 11% from RM22.5 million due to softer demand for automated equipment in the current quarter.

The group recorded a loss before tax of RM1.9 million against RM800,000 profit before tax in 2Q due to the drop in revenue and a change in sales mix resulting in lower profit margin in the current quarter.

FBM KLCI closes in red but cuts losses

KUALA LUMPUR: The FBM KLCI clawed back in the afternoon session on Thursday, Nov 18 as key regional markets rebounded to reduce its losses to 0.46% or 6.89 points to end the day at 1,496.65.

The 30-stock index had earlier in the morning session fallen more than 1% or as much as 16.33 points to an intra-day low of 1,487.21. Gainers overtook losers by 404 to 362, while 288 counters traded unchanged. Volume was 1.12 billion shares valued at RM1.74 billion.

Shares in Hong Kong and Shanghai rebounded from multi-week lows on thin volumes on Thursday, as investors scooped up beaten down shares such as oil, metals and other commodities, according to Reuters.

But traders and analysts said Thursday's rebound could be short-lived as worries persisted that China may adopt more stringent measures to stem accelerating inflation, including a drastic rise in key interest rates, it said.

Japan's Nikkei 225 jumped 2.06% to 10,001.63, Hong Kong's Hang Seng Index added 1.82% to 23,637.39, the South Korean Kospi rose 1.62% to 1,927.86, the Shanghai Composite Index was up 0.94% ti 2,865.45, Taiwan's Taiex added 0.34% to 8,283.45 while Singapore's Straits Times Index rose 0.04% to 3,213.53.

At Bursa, among the major decliners were PPB that fell 52 sen to RM19.02, Kulim down 50 sen to RM13.38, Genting fell 42 sen to RM10.04 while BLD PLANTATION []s lost 20 sen to RM4.90.

Among the gainers, Hong Leong Industries added 40 sen to RM5.60, Panasonic rose 28 sen to RM18.60, Maybank was up 24 sen to RM8.82, Dayang gained 20 sen to RM2.75 while Masterskill was up 19 sen to RM2.25.

Other gainers included LPI Capital, BAT, Tan Chong and APM Automotive.

Jotech was the most actively traded counter with 43.7 million shares done. The stock slipped 1.5 sen to 12.5 sen. Other actives included SAAG, Karambunai, Time dotCom, KNM and Scomi.

KNM unit gets US$216m Uzbek job

KUALA LUMPUR: KNM GROUP BHD [] unit KNM Process Systems Sdn Bhd has won a US$216 million (RM680 million) bid to develop gas condensate fields in Uzbekistan from Lukoil Uzbekistan Operating Company.

KNM said on Thursday, Nov 18 it received notification on Nov 16 about the successful bid to supply technical documentation, equipment and services for the development of gas condensate fields, that is'' Adamtash, Gumbulak and Djarkuduk Yangi Kizilcha.

It said the contract was for two years, subject to the execution of contract agreements.

KNM said that project was expected to contribute to its earnings for the financial years ending Dec 31, 2011 and Dec 31, 2012

KNM Process Systems' core activities are the design, engineering, procurement and manufacturing of process equipment, pressure vessels, reactors, columns and towers, drums, heat exchangers, air finned coolers.

#Flash* Intel Capital invests RM10m to RM15m in Malaysia's regional IPTV player, Select-TV

KUALA LUMPUR: Calling IPTV a killer application that will drive real high-speed broadband adoption around the world, Intel Capital has made only its third investment into a South-east Asian company.

Malaysian based regional IPTV player Select TV Sdn Bhd is believed to have received an investment in the region of RM10 million to RM15 million with Intel Capital taking a stake of around 30%.

Venture capital firms do not publicly reveal the amount of money and stake taken in their deals.

CEO of Select-TV, CS Goh believes the deal positions his company as the leading end to-end PTV solution provider in Asia.

'It was a tough deal to clinch but it will open doors for us and add to our future valuation as we rapidly scale the business,' he said on Wednesday, Nov 17.

A priority for Select-TV will now be on top line growth instead of being solely focused on the bottom-line.

Select-TV will now embark on large scale projects, especially for home IPTV deployments and invest in strategic markets to ensure long term growth.

In an interview with netv@lue2.0 published on Aug 23, Goh expected to hit RM40 million in revenue for 2010.

Taliworks bondholders redeem RM113m convertible bonds

KUALA LUMPUR: TALIWORKS CORPORATION BHD [] bondholders have redeemed all the outstanding RM113 million nominal value convertible bonds.

RAM Rating Services Bhd said on Thursday, Nov 18 that the bondholders had on Monday'' exercised their option to early redeem all the outstanding CBs on Dec 6, 2010. The redemption date was 36 months from the issuance date.

'As per the terms of the trust deed dated Nov 29, 2007, the outstanding RM113 million nominal value CBs have an early-redemption value of RM125.75 million. As at end-June 2010, Taliworks had RM201.84 million of cash and marketable securities,' it said.

Taliworks is involved in the operations and maintenance of water-treatment plants in Selangor and Langkawi, through its unit Sungai Harmoni and Taliworks (Langkawi) Sdn Bhd. The group is also involved in solid- and waste-water-management services in China.

It is also involved in toll operations via its 55%-stake in Cerah Sama Sdn Bhd - the sole owner of Grand Saga Sdn Bhd, that is the toll concessionaire for the 11.5-km Cheras-Kajang Highway.

HL Industries up on corporate exercise

KUALA LUMPUR: Shares of HONG LEONG INDUSTRIES BHD [] and MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI) rose in afternoon trade on Thursday, Nov 18 after HL Industries announced a corporate exercise.

At 2.55pm, HL Industries was up 25 sen to RM5.45 with 199,200 shares done and MPI added 10 sen to RM5.85.

The stocks bucked the cautious market where the FBM KLCI fell 10.02 points to 1,493.52. Turnover was 669.68 million shares done valued at RM975.1 million. There were 297 gainers, 371 losers and 286 stocks unchanged.

HLIndustries Bhd is acquiring all of Hume Industries (Malaysia) Sdn Bhd (HLMG) for RM235.2 million from Hong Leong Manufacturing Group Sdn Bhd via the issuance of 46.759 million new shares.

It also signed an agreement with Hume Cement Sdn Bhd and HLMG to subscribe up to 175 million six-year 2% non-cumulative irredeemable convertible preference shares at the par value of RM1 each to be satisfied by cash.

HL Industries would then undertake a rights issue of up to 159.736 million new shares on the basis of one rights share for every 2 shares held at an indicative issue price of RM1.45 per rights share.

HL Industries proposed to distribute up to 119.80 million shares in MPI to the HL Industries shareholders on the basis of 75 MPI shares for every 300 HL Industries shares held.

Japan, China, Korea markets close higher

TOKYO: Japan's Nikkei jumped more than 2 percent to close above 10,000 for the first time since late June on Thursday, Nov 18 as a fall in the yen against the dollar attracted strong fund inflows from overseas to bolster financial shares.

Active short-covering of banks and other financials by overseas fund operators helped spur similar moves in other sectors, with some saying buying was led by European funds to balance their positions ahead of year-end book closings.

The Nikkei picked up momentum in the afternoon after breaking through the psychologically sensitive 200-day moving average of 9,920, with strong buying from overseas swallowing up profit-taking orders by domestic institutional investors, traders said.

"We are seeing inflows into a variety of shares. The market trend looked especially strong as we are seeing strong fund flows into financial shares," said Takashi Ohba, a senior strategist at Okasan Securities.

"Foreign fund operators were unloading Japanese government bonds positions while buying back Nikkei futures, driving the overall upward move in stocks," Ohba said.

The benchmark Nikkei advanced 201.97 points, or 2.1 percent, to close at its session peak of 10,013.63 -- its highest finish since June 22.

The broader Topix rose 2.2 percent to 868.81.

Ohba said strong inflows into financial shares typically suggest the market trend is bullish.

Banking shares gained, with Japan's top lender Mitsubishi UFJ Financial Group jumping 4.3 percent to 412 yen and Mizuho Financial Group rising 3.9 percent to 134 yen.

In contrast, December 10-year Japanese government bond futures closed down 0.51 point at a session low and at a fresh two-month trough of 141.45.

"Global fund managers could be adjusting their portfolios by allocating more into stocks, while selling bonds," said Tomomi Yamashita, a fund manager at Shinkin Asset Management.

"Japan is standing out now as we are seeing inflows from overseas as Japanese shares have been kept at low levels until recently, but we are not sure whether this will be a long-lasting trend. We need to watch a little longer," Yamashita continued.

Data from Japan's Ministry of Finance showed foreign investors were net buyers of Japanese stocks over the past two weeks.

HELPED BY EXPORTERS

The Nikkei was encouraged after seeing Chinese shares rebound.

Japanese stocks rose also due to anticipation of a recovery in U.S. shares later in the day following an initial public offering by General Motors Co.

General Motors pulled off the biggest IPO in U.S. history on Wednesday, raising $20.1 billion after pricing shares at the top of the proposed range in response to huge investor demand.

"A rebound in Shanghai and Hong Kong shares after they were hurt by worries about rate hikes in China is lending help to the market," said Fumiyuki Nakanishi, a manager at SMBC Friend Securities.

"There's also speculation that GM's listing will lift New York stocks later today. GM is still a major stock in the United States and a rise in its shares ... will be positive for investor confidence," he added.

U.S. stocks futures were up 0.8 percent.

The dollar stood at 83.15 yen, not far off a six-week high of 83.60 yen struck on Tuesday.

A slightly weaker yen has recently been helping exporter shares such as TDK, which rose 1.9 percent to 5,360 yen.

In SHANGHAI, China's key stock index rose 0.9 percent in a mild technical rebound on Thursday, led by gains in heavyweight commodity issues such as oil giant Sinopec Corp that were boosted by a dip in the dollar.

Speculative retail investors, who make up two-thirds of turnover, started tentatively buying back into the Shanghai market which has lost some 11 percent in the slide from last Friday to Wednesday.

China's moves to tighten monetary policy to clamp down on escalating inflationary pressures has spooked investors, prompting them to sell off large caps over the past week.

The Shanghai Composite Index ended at 2,865.5, edging closer to the 250-day moving average, now at 2,890, a closely watched level in the domestic market. The index dropped 1.9 percent on Wednesday.

Analysts cautioned that rumours about further monetary policy tightening in China may cause jittery retail investors to act in a herd-like manner, but they expected the index to move in a narrow range in the near term.

In SEOUL:'' Seoul shares bounced back on Thursday as worries about Ireland's debt crisis eased and investors snapped up beaten-down stocks, including TECHNOLOGY [] plays.

The Korea Composite Stock Price Index <.KS11> (KOSPI) ended up 1.62 percent at 1,927.86 points. - Reuters

AirAsia X to start flights to Paris

KUALA LUMPUR: AIRASIA BHD []'s long-haul low fare affiliate AirAsia X announced an all in fare from as low as RM499/'99 one way from Kuala Lumpur to Paris, its second European destination after London.

In a statement on Thursday, Nov 18, AirAsia X said flights for the special offer were available for booking online from Nov 22 to 24, 2010 for the four times weekly direct flights which will commence on Feb 14, 2011 between Paris-Orly International Airport and Kuala Lumpur International Airport's Low Cost Carrier Terminal.

Travel period for the special fare is from Feb 14 to Nov 10, 2011, it said.

"From an all in fare as low as RM499 ('99) one way, the route will make travel between Asia and Europe more accessible and affordable as ever," said the airline.

Promotional seats are limited and available on first-come, first-served basis and made exclusively available online via www.airasia.com.

IOI Corp 1QFY2011 net profit up 4.12% to RM498.13m

KUALA LUMPUR: IOI CORPORATION BHD [] net profit for the first quarter ended Sept 30, 2010 rose 4.12% to RM498.13 million from RM478.38 million a year ago, due mainly to higher profit contribution from the PLANTATION [] segment and higher unrealised translation gain on foreign currency denominated borrowings.

The company recorded revenue RM3.52 billion for the quarter, compared to RM3.26 billion last year. Earnings per share was 7.81 sen, while net assets per share was RM1.65.

In a filing to Bursa Malaysia on Thursday, Nov 18,''IOI Corp said the plantation segment reported a 38% increase in operating profit to RM345.3 million for Q1FY2011 as compared to RM249.8 million for Q1 FY2010.

The higher profit was due mainly to higher CPO prices realised as well as a marginal increase in FFB production, it said.

Average CPO price realised for Q1 FY2011 is RM2,598/MT compared to RM2,294/MT for Q1 FY2010, it said,

IOI Corp said its property development and investment segment's operating profit of RM160.3 million for Q1

FY2011 was in line with Q1 FY2010.

The resource-based manufacturing segment's operating profit decreased from RM158.9 million in Q1FY2010 to RM40.4 million in Q1 FY2011 due mainly to lower volume and margins and fair value losses on the adoption of FRS 139, it said.

FBM KLCI stays in the red at mid-day break

KUALA LUMPUR: The FBM KLCI remained firmly in the red at the mid-day break on Thursday, Nov 18, weighed by losses at key blue chips including Genting, Tenaga and PLANTATION [] stocks.

At 12.30pm, the 30-stock index was down 0.78% or 11.70 points to 1,491.84. Losers led gainers by 383 to 272 while 269 counters traded unchanged. Volume was 587.8 million shares valued at RM844.57 million.

The ringgit strengthened 0.9% to 3.1330 versus the US dollar; gold soared US$13.70 an ounce to US$1,349.70 while crude oil added 79 cents per barrel to US$81.23.

Plantation stocks took a beating this morning as crude palm oil futures for the third month delivery slumped RM100 per tonne to RM3,165.

Among the major losers, PPB fell 58 sen to RM18.96, Kulim down 48 sen to RM13.40, Boustead lost eight sen to RM5.42, IOI Corporation fell five sen to RM5.85 while KL Kepong and Genting Plantations lost four sen each to RM19.80 and RM8.51.

Genting lost 38 sen to RM10.08, Nestle and MAHB down 10 sen each to RM43.20 and RM5.86, while Hong Leong Financial Group and Tenaga slipped eight sen each to RM8.90 and RM8.69.

Among the gainers, BAT added 36 sen to RM46.38, MPI rose 15 sen to RM5.90, LPI Capital up 14 sen to RM11.50, Maybank added 13 sen to RM8.71, Tan Chong up 12 sen'' to RM5.62 while Panasonic, Sunrise, IJM Corp and Kencana gained 10 sen each to RM18.42, RM2.79, RM5.62 and RM2.08 respectively.

SAAG was the most actively traded counter with 26.9 million shares done. The stock was unchanged at 7.5 sen. Other actives included Jotech, Karambunai, Timecom, IJM Land, Kencana, KNM and JCY.

Regional stock markets mostly rebounded, with Japan's Nikkei 255 soaring 1.66% to 9,974.28, Hong Kong's Hang Seng Index up 1.31% to 23,518.32, the South Korean Kospi gained 1.43% to 1,924.16, the Shanghai Composite Index up 0.62% to 2,856.36, Taiwan's Taiex added 0.17% to 8,269.68 while Singapore's Straits Times Index slipped 0.45% to 3,197.49.

HL Industries to acquire Hume for RM235.2m

KUALA LUMPUR: HONG LEONG INDUSTRIES BHD [] is acquiring the entire equity interest of Hume Industries (Malaysia) Sdn Bhd (HLMG) for RM235.2 million under a corporate exercise which involved several companies in the Hong Leong group.

HL Industries said on Thursday, Nov 18 it was acquiring Hume from Hong Leong Manufacturing Group Sdn Bhd via the issuance of 46.759 million new shares.

It had on Tuesday, Nov 16 entered into a conditional subscription agreement with Hume Cement Sdn Bhd and HLMG to subscribe up to 175 million six-year 2% non-cumulative irredeemable convertible preference shares at the par value of RM1 each to be satisfied by cash.

HL Industries would then undertake a rights issue of up to 159.736 million new shares on the basis of one rights share for every two shares held at an indicative issue price of RM1.45 per rights share.

HL Industries proposes to distribute up to 119.80 million shares in MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI) to the HL Industries shareholders on the basis of 75 MPI shares for every 300 HL Industries shares held.

Genting, Tenaga weigh down BM KLCI

KUALA LUMPUR:'' The FBM KLCI fell sharply in early trade on Thursday, Nov 18, and was down by more than 1% at one point, dragged by losses at key blue chips including Genting, Tenaga and PPB Group.

While'' analysts attributed the early fall as a knee-jerk reaction to the recent decline at regional markets, most Asian bourses stabilised as commodities lent support.

On Bursa Malaysia at 10am, the 30-stock FBM KLCI was down 0.81% or 12.13 points to 1,491.41. Losers led gainers by 245 to 195, while 231 counters traded unchanged. Volume was 233.51 million shares valued at RM275.50 million.

RHB Research Institute Sdn Bhd said that given the recent sharp falls in the regional markets, and the negative news flow on more tightening measures in China to tame inflation, as well as the renewed debt crisis in Europe, the local bourse was expected to open with a knee-jerk reaction today.

The index should seek support at the 40-day SMA near 1,489, but all eyes will be focusing on the 1,450 level ' the previous breakout resistance-turn-support point, to see whether the multi-month uptrend would be derailed, it said.

'Losing 1,450 will be seen as a trigger to a major correction phase on the FBM KLCI,' said the research house in a note Nov 18.

Among the major losers on Bursa Malaysia at mid-morning, PPB fell 80 sen to RM18.74, Genting down 20 sen to RM10.26, Kulim lost 18 sen to RM13.70, F&N and Tenaga fell 12 sen each to RM15.68 and RM8.65, Jobstreet down 10 sen to RM2.80, KFCH lost nine sen to RM3.92, Hong Leong Financial Group shed eight sen to RM8.90 while Genting PLANTATION []s lost seven sen to RM8.48.

BAT led the gainers list and was up 36 sen to RM46.38; Batu Kawan and IJM Land added 14 sen each to RM16.74 and RM2.88, Top Glove rose 13 sen to RM5.63, Petronas Gas added 12 sen to RM11.26. Lafarge Malayan Cement and Panasonic were up 10 sen each to RM7.98 and RM18.42 while Lingui and YTL Power gained nine sen each to RM1.31 and RM2.60.

Karambunai was the most actively traded stock with 12.2 million shares done. The counter gained half a sen to 20.5 sen. Other actives included Timecom, SAAG, KNM, Time, Transmile and Kencana.

At the regional markets, Japan's Nikkei 225 rose 0.61% to 9,871,51, the Shanghai Composite Index added 0.98% to 2,866.62, the South Korean Kospi Index gained 0.69% to 1,910.14 and Hong Kong's Hang Seng Index opened 1% higher at 23,437.80.

Meanwhile, Taiwan's Taiex and Singapore's Straits Times Index shed 0.04% each to 8,252.07 and 3,210.94 respectively.

Hwang DBS Vickers Research sees market trading sideways

KUALA LUMPUR: Hwang DBS Vickers Research said although regional peers were mostly down on Wednesday, Nov 17, it expected stocks on Bursa Malaysia to probably show a sideways performance with a small upward bias on Thursday.

On Wednesday, China shares listed in Hong Kong fell 2.4%, Hong Kong (-2.0%) and Philippines (-1.7%). On Wall Street, major U.S. equity indices ended broadly flat (-0.1% and +0.2%) overnight, stabilising after plunging between 1.6% and 1.8% on Tuesday. This would likely calm investors' sentiment across the region for now.

'In terms of individual corporate developments, big-cap Sime Darby may see a bit more interest after the company said it intends to pursue legal action to recover billions of dollars that were lost due to mismanagement,' it said.

Hwang DBS Vickers Research said CONSTRUCTION [] outfit WCT is due to announce its latest quarterly financial results this evening.

AmResearch: Credit quality in Hong Leong Bank shines

KUALA LUMPUR: AmResearch said HONG LEONG BANK BHD [] registered net earnings of RM257.2mil (-14.6% QoQ, +9.8% YoY) in 1QFY11, which if annualised would be 4.5% below its forecast and 5.9% below consensus of RM1,093mil FY11F.

'We maintain our BUY rating on Hong Leong Bank, with a raised fair value to RM11.20/share from RM10.90 previously,' it said.

AmResearch said it was rolling forward its base to calendar year 2011 instead of financial year-ending June 2011.

Based on calendarised ROE of 15.5% CY11F (previously FY11F of 15.9%), it estimated fair P/BV of 2.1x on a book value of RM5.23 (previously FY11F of RM4.93).

KLCI opens weaker, Tenaga weighs

KUALA LUMPUR: The FBM KLCI opened down at the start of trade on Thursday, Nov 18, weighed down by losses in PPB and Tenaga Nasional.

At 9am, the KLCI was down 3.23 points to the critical level of 1,500.31. Turnover was 18.37 million shares valued at RM22.15 million.

Among PLANTATION []s, Glenealy skidded 83 sen to RM4.22 and PPB shed 64 sen to RM18.90. Heavyweight Tenaga shed 14 sen to RM8.63, Bursa four sen to RM8.28.

BDRB lost four sen to RM2.47 after OSK Research said its annualised 9M10 core net profit, excluding the RM82.7 million exceptional gain from property revaluation surplus, was 50% and 77% below our and consensus estimates.

The research house said BDRB's 9M10 y-o-y and q-o-q turnover fell by 33% and 16% respectively on lower property sales, exhausting unbilled sales and delays in progress billing.

Sime bucks weaker market sentiment

KUALA LUMPUR: Sime Darby bucked the weaker market sentiment in early trade on Thursday, Nov 18 as investors expected the worst to be behind the conglomerate.

At 9.08am, Sime rose 11 sen to RM8.91. There were 92,800 shares done.

However, the KLCI'' was down 7.79 points to 1,495.75. Turnover was 53.28 million shares valued at RM62.17 million. There were 111 gainers, 112 losers and 124 stocks unchanged.

Sime Darby acting president and group chief executive Datuk Mohd Bakke Salleh said last Tuesday that he expected the group to be in the black in the first quarter ended Sept 30, 2010 (1QFY11).

In a surprising move at Tuesday's AGM, six members of the board did not seek reelection while one resigned, as the group seeks to steer back into profitability after massive losses from its energy and utilities division.

#Flash* KLCI skids nearly 15 points in early trade

KUALA LUMPUR: Selling of key index-linked stocks pushed the FBM KLCI down nearly 15 points in early trade on Thursday, 18.

The KLCI was down 14.70 points to 1,488.84. Turnover was 86.53 million shares done valued at RM102.89 million. There were 108 gainers, 198 losers and 151 stocks unchanged.

The selling pressure followed Wednesday's fall in key regional markets on fears of further tightening by China and Ireland's financial woes.

At Bursa, PPB, whose earnings are expected to be affected by the lacklustre performance of Wilmar International, fell the most, down 90 sen to RM18.64.

Kulim shed 22 sen to RM13.66, Genting 18 sen to RM10.28 while Tenaga gave up 16 sen to RM8.61. Bandar Raya lost 10 sen to RM2.37 and KFCH 10 sen to RM3.91.

US STOCKS-Wall St ends flat, late selloff in banks

NEW YORK: Investors were unable to recoup recent losses in the market on Wednesday, Nov 17, suggesting the struggles recently experienced by stocks are far from over.

A late-day selloff did not inspire confidence. Volume was light and early buying faded, as financials led the market downward. The S&P 500 is down nearly 4 percent since Nov. 5 after rallying nearly 13 percent in September and October.

"I think the market is in a deterioration trend. It's worrisome at this point, considering that we had a selloff yesterday with pretty big volume and poor advance-decline numbers," said Frank Gretz, market analyst and technician at the Shields & Co brokerage in New York.

"The market is certainly vulnerable, and I think it is in fact headed for a correction."

Financials sagged after the Federal Reserve said it will evaluate the ability of 19 large financial institutions to withstand losses in "adverse" economic scenarios.

The announcement accompanied guidance on potential dividend increases, first reported on Nov. 4. Banks rallied sharply that day and were still up 1 percent in the past two weeks before Wednesday's selloff.

The KBW bank index fell 1.4 percent. Regional bank KeyCorp slid 3.8 percent to $7.68 after Credit Suisse downgraded its shares.

Indexes also suffered from the continued uncertainty of Ireland's financial crisis, which contributed to Wall Street's drop of nearly 2 percent on Tuesday.

The Dow Jones industrial average was off 15.62 points, or 0.14 percent, to 11,007.88. The Standard & Poor's 500 Index edged up 0.25 point, or 0.02 percent, at 1,178.59. The Nasdaq Composite Index added 6.17 points, or 0.25 percent, to 2,476.01.

Volume was light and some of the day's quietness was due to investors awaiting the pricing of General Motors' initial public offering after the market's close, said Nick Kalivas, senior equity index analyst at MF Global in Chicago.

The automaker set the terms for a landmark IPO that could be the largest in U.S. history, raising up to $22.7 billion. GM said after the closing bell the stock was priced at $33 a share.

"There's a feeling a lot of money has been sucked out of the market to go pay for that. Once that gets out of the way, that theory's going to be put to the test," said Kalivas.

Retailers kept a floor under the market as discount chain Target Corp rose 3.9 percent to $55.62 after it forecast its best same-store sales in three years during the upcoming holiday season. The S&P consumer discretionary group rose 0.7 percent.

Investors kept a close eye on the situation in Ireland. Dublin agreed to work with a European Union-International Monetary Fund mission on urgent steps to shore up its shattered banking sector.

The CBOE Volatility index, Wall Street's so-called fear gauge, declined 3.6 percent but remained above 20. On Tuesday, it closed at its highest point in more than a month.

In economic data, housing starts slumped to their lowest level in more than a year in October, while consumer prices rose, but the annual increase in core CPI was the smallest on record.

GLOBAL MARKETS-Dollar, stocks fall on Ireland debt crisis

NEW YORK: The dollar fell against the euro, yen and Swiss franc on Wednesday, Nov 17 as the lack of a solution to Ireland's debt crisis weighed on markets.

Stocks were slightly higher to little changed, with Wall Street unable to overcome the prior session's selloff. A late drop in U.S. bank shares offset gains by retailers.

Treasuries prices rose after U.S. government figures showed the lowest core annual inflation rate on record and a steep drop in housing starts from already depressed levels. The data supported the case for the Federal Reserve to buy government bonds to stimulate the economy.

The euro rose as high as $1.3539 and last traded at $1.3521, up 0.21 percent from the prior close. The dollar was down 0.04 percent at 83.23 yen and last traded at 0.9895 Swiss francs, down 0.6 percent.

Tokyo stocks looked set to open down, with December Nikkei futures traded in Chicago off 15 points at 9825.

Euro zone finance ministers have agreed to lay the groundwork for bailing out Ireland's banking sector with the International Monetary Fund. Dublin has yet to decide whether to request the aid.

Nervousness about the debt crisis grew after European clearing house LCH. Clearnet doubled its margin requirement on Irish government bonds to 30 percent of net positions, citing higher Irish yields over German benchmarks.

"If we get a resolution to Ireland's problems, you could see the euro bounce," said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange in Washington. "The overall bias is to the downside, given uncertainty about not just Ireland but Portugal and Spain."

The euro briefly gained after a report showed U.S. consumer prices rose less than expected in October and the increase in the year-on-year core rate was the smallest on record. But the single currency has lost 3.2 percent this month as investors cut long positions as peripheral debt worries mount.

World markets were also hit by interest rate concerns involving China, the global growth engine. Premier Wen Jiabao said his government was preparing steps to tame price rises.

"Chinese rate hike prospects are one thing (affecting markets). There is also the prospect of tighter measures on inflows in Asia, especially Korea," said Gaelle Blanchard, emerging markets strategist at Societe Generale.

Chinese shares closed down 1.9 percent, sending wider Asian stocks to their lowest levels in four weeks and hitting other countries that depend on China's growth, such as Australia.

BONDHOLDER-FRIENDLY NEWS

U.S. Treasury debt prices on the short end of the yield curve, the most sensitive to moves by the Fed, were higher on weak consumer price and housing data. Starts on new homes slumped to the lowest in 1-1/2 years in October, the government said.

The 2-year U.S. Treasury note was up 1/32, with the yield at 0.48 percent. But longer-dated Treasuries prices slipped in a late sell-off on uncertainties over the fate of the Federal Reserve's bond program to help the economy.

The benchmark 10-year U.S. Treasury note was down 10/32, with the yield at 2.88 percent and the 30-year U.S. Treasury bond was down 7/32, with the yield at 4.28 percent.

On Wall Street stocks ended little changed, with indexes unable to recoup recent losses as banks wilted on worries about Federal Reserve regulation of the sector going forward.

The Dow Jones industrial average was off 15.62 points, or 0.14 percent, to 11,007.88. The Standard & Poor's 500 Index edged up 0.25 point, or 0.02 percent, at 1,178.59. The Nasdaq Composite Index added 6.17 points, or 0.25 percent, to 2,476.01.

MSCI's all-country world stock index rose 0.17 percent while the FTSEurofirst 300 index of leading European shares advanced by 0.54 percent to 1,092.46.

In energy and commodities prices, U.S. light sweet crude oil fell $1.85, or 2.25 percent, to $80.49 per barrel,, and spot gold prices fell $4.56, or 0.34 percent, to $1335.80. The Reuters/Jefferies CRB Index was down 0.79 points, or 0.27 percent, at 295.43. - Reuters

GM IPO raises $20.1 bln, biggest U.S. IPO ever

NEW YORK: General Motors Co pulled off the biggest initial public offering in U.S. history on Wednesday, Nov 17, raising $20.1 billion after pricing shares at the top of the proposed range in response to huge investor demand.

GM sold 478 million common shares at $33 each, raising $15.77 billion, as well as $4.35 billion in preferred shares, more than the initially planned $4 billion.

Including an option that would allow underwriters to sell more shares, expected to be exercised in coming days, GM looks set to raise $23.1 billion -- the biggest initial public offering ever.

The strong response to the stock sale reflects growing investor confidence that GM is moving beyond its unpopular, taxpayer-funded bankruptcy in June 2009 with sharply lower costs and higher profit potential.

The U.S. government's stake in GM will drop to about 33 percent from 61 percent if all available shares are sold.

The stock will begin trading on Thursday on the New York and Toronto stock exchanges.

The success of the IPO is good news for the Obama administration, which faced criticism for bailing out GM, and will help the automaker shed its "Government Motors" label.

Auto industry executives and analysts said the reversal in Wall Street sentiment toward GM pointed to renewed confidence in an industry that was hit hard by the credit crisis of 2008.

That is a positive sign for a range of auto-related companies, including Chrysler, that are looking to tap the credit and equity markets in coming months, analysts said.

"You're not in GM for a three-month investment," Tim Leuliette, a director at auto parts maker Visteon Corp, said at the Reuters Autos Summit.

"You're into GM because a critical element, a critical building block of the U.S. economy, has significantly repositioned itself to be competitive."

FROM BLUE-CHIP TO BAILOUT

The stock sale represents a big step toward taxpayers recouping the U.S. government's $50 billion rescue of the 102-year-old company, which had fallen from blue-chip status to bailout basket case in recent years.

GM earned $5 billion in the first nine months of 2010 and is on track for its first full-year profit since 2004. Earnings will accelerate if U.S. auto sales continue to creep back up toward the 15-million or 16-million vehicle-per-year sales rates the U.S. industry last saw in 2007, analysts say.

Sales plunged to 10.4 million vehicles in 2009 and have staged a slow recovery to near 11.5 million this year.

"GM is making a lot of money at depression levels of sales. As the market improves it should make even more money," said Dave Cole, chairman emeritus of the Center for Automotive Research.

In a road show for investors spearheaded by GM Chief Executive Dan Akerson and Chief Financial Officer Chris Liddell, the automaker has emphasized both its sharply lower costs and its exposure to key growth markets like China.

One of the open questions was whether GM's China partner, state-owned SAIC Motor Corp Ltd, was able to move beyond a last-minute regulatory hurdle that threatened its plans to take a 1 percent stake in GM.

The two companies had negotiated new cooperation in areas such as electric car programs in talks that began this summer.

Under a tentative deal, SAIC had agreed to invest $500 million to $1 billion in GM pending Chinese government approval, people with knowledge of those discussions said.

As of late on Wednesday, China's Ministry of Commerce had not approved the SAIC investment, said three people familiar with the matter.

Sources have said that sovereign wealth funds in the Middle East and Asia are among the investors.

GOVERNMENT TO REMAIN BIGGEST OWNER

The U.S. Treasury will remain GM's largest shareholder for now. U.S. officials have said unloading the entire stake is likely to take several years.

The stock price will need to rise by 47 percent to $48.58 -- about what it costs to fill the gasoline tank of a 2010 Chevy Malibu LS 4-door sedan -- for the U.S. government to break even on its follow-on stock sales.

At $48 per share, GM would have a market value of more than $90 billion. In comparison, its closest rival, Ford Motor Co, has a market capitalization of $59 billion after a rally that has sent its stock up 65 percent this year.

Government officials have argued that it would represent a kind of success if the White House breaks even only on the $30 billion that the Obama adminstration committed to GM. Just over $19 billion in funding came from the Bush administration.

The GM bailout spared the automaker from liquidation and saved hundreds of thousands of manufacturing jobs at the company and its suppliers, officials have said.

The governments of Canada and Ontario also took a combined stake of 11.67 percent stake in GM in return for helping to fund the bailout, and they reduced their stakes through the IPO.

With over-allotments, GM's IPO would eclipse the record $22.1 billion raised by Agricultural Bank of China in its IPO in July. - Reuters