Warren Buffett says on the hunt for deals

NEW YORK: Warren Buffett is looking for acquisitions as an outlet to deploy his $38 billion cash pile, the legendary investor said in his annual letter to Berkshire Hathaway Inc shareholders on Saturday, Feb 26.

Buffett also gave an aggressive earnings forecast for Berkshire's collection of businesses, said the company would engage in record capital spending and forecast a recovery in the housing market would start within a year.

Buffett acknowledged the need for Berkshire to expand to grow earnings at its non-insurance businesses, a broad collection that most prominently includes the railroad Burlington Northern and the electric utility MidAmerican.

"Our elephant gun has been reloaded, and my trigger finger is itchy," Buffett said. The letter was released just before 8 a.m. EST (1300 GMT on) Saturday, as it is in most years -- and many large investors say they get up early that day to read it the moment it comes online.

The so-called "Oracle of Omaha" said Berkshire will need "more major acquisitions" -- with an italicized emphasis on major -- to meet its goal.

One long-time Berkshire investor described the letter as "punchy" and "confidently American," among other things.

"I would say as an investor, I think it's a very upbeat letter, it's one that celebrates his courage on behalf of investors of going into the marketplace when the world was most fearful," said Tom Russo, a partner at Gardner Russo & Gardner in Lancaster, Pennsylvania, who is one of the 15 largest holders of Berkshire Class A shares.

SUCCESSION

Buffett also addressed the hot-button succession issue in the 26-page letter, something investors had anticipated given his age, 80, and the lack of a clear replacement.

Investment manager Todd Combs, hired late last year, will manage an initial portfolio of $1 billion to $3 billion, Buffett said, and Berkshire may add another one or two managers over time alongside him.

But Buffett said he will continue to manage the bulk of the portfolio while he is CEO. Berkshire's equity holdings topped $52 billion at year-end.

He said less in the letter about who might follow him as chief executive of the company, though he said there were a number of good candidates. The most frequently tipped is David Sokol, chairman of MidAmerican and private jet service NetJets, who Buffett praised in the letter.

THE ECONOMY

Buffett tends to give an economic outlook in his letter and this year's was no exception.

"A housing recovery will probably begin within a year or so," he noted, which has led Berkshire to ramp up spending and acquisitions at its housing-related businesses.

He was less bullish on interest rates, which have been low enough to earn the company a "pittance" on its cash in recent times. Buffett said rates will eventually rise enough to contribute more normal growth to the company's investment income, but it was "unlikely to come soon."

Another hit to the investment portfolio will come from the redemption of crisis-era preferred investments in Goldman Sachs and General Electric. Buffett said that both are likely to be gone by year-end. The Goldman investment in particular famously pays Berkshire $15 every second.

All things being equal, Buffett forecast Berkshire's "normal" earnings power at about $12 billion a year after-tax.

In the meantime, Buffett is spending on growth. He said Berkshire would make a record $8 billion in capital spending this year, with the $2 billion growth over last year to be spent entirely in the United States.

"Berkshire has created within itself its own outlet to redeploy capital," Russo said. "The best thing about that is when you can by that spending create additional competitive advantage." - Reuters

Fed officials play down oil price risks

NEW YORK: The Federal Reserve would react to higher oil prices only if the increases spilled over into broader areas, officials of the U.S. central bank said on Friday, Feb 25 with one policy maker calling the risks "manageable."

In a similar vein, an official of the European Central Bank said policy makers should be wary of responding too soon to the recent jump in oil prices as it may be fleeting.

Oil prices have risen as political tensions in the Middle East and North Africa have raised fears that the unrest could spread to other major oil-producing countries, stoking fears of even higher fuel prices and inflation risks around the world.

The president of the Richmond Federal Reserve Bank, Jeffrey Lacker, took a calm view of the potential threats to the U.S. economy from the higher oil prices, though he said they could prove nettlesome if they jump much more or create an inflationary psychology.

"I think the oil price rises we've seen so far don't pose a risk to the recovery," he told reporters after a speech on regulation.

"Oil price changes could have the potential, if they were very large, for slowing the recovery, but we have a lot of experience and a lot of data on past instances, and I think it's a manageable risk," he said at a conference organized by the University of Chicago's Booth School of Business.

Janet Yellen, the Fed's vice chair, said U.S. central bank officials would react if inflation expectations or underlying inflation show persistent gains and began to be reflected in other prices.

"Any increase that would seem to be sustained in inflation expectations, or in core inflation, that looked like it were getting passed through and it was sustained, would ... demand a response," said Yellen, who is viewed as among the strongest proponents of aggressive measures to support the economic recovery.

Yellen, who also spoke at the conference organized by the Booth School of Business, has a permanent vote on the Fed's interest-rate setting panel and her position is seen as close to the consensus view at the institution.

Lacker said there is a danger that prices that are uppermost in consumers' minds -- such as retail gasoline prices -- could spur fears of wider inflation, which ultimately could push prices up.

A rise in inflation expectations can be self-fulfilling if it leads businesses to raise prices and workers to demand higher wages. However, with the U.S. unemployment rate at 9 percent, many Fed officials do not see much scope for wage increases.

An official from the European Central Bank said policy makers should be wary of responding too soon to the recent jump in oil prices.

"It depends very much if it is temporary or not, which means monetary policy does not respond immediately to such a supply shock, nor should it," Vitor Constancio, the ECB's vice president, said in response to questions at the Booth School conference.

Currently, it appears unlikely that oil price rises will pass through to wages, he said, though he cautioned that central banks must be vigilant about inflation and be willing to act if necessary.

"We cannot allow inflation to be embedded in the economy," he said.

SUSTAINED RISE DEMANDS RESPONSE

Some Fed policy makers have suggested it might be time to reduce or taper off the central bank's $600 billion bond-buying program in light of a strengthening recovery, but others feel higher oil prices could create headwinds to the recovery.

Oil prices retreated from 2-1/2-year peaks of almost $120 a barrel hit in London on Thursday to hover below $112 on Friday on Saudi efforts to plug supply gaps.

Yellen said the Fed's long-term commitment to loose financial conditions will shift when the time comes for the central bank to withdraw its support for the U.S. economy.

"Once the recovery is well established and the appropriate time for beginning to firm the stance of policy appears to be drawing near, the (Fed) will naturally need to adjust its 'extended period' guidance and develop an alternative communications strategy," she said.

One of the most committed skeptics of the Fed's easing policies, Kansas City Fed President Thomas Hoenig, also played down the risk that oil prices would derail the U.S. recovery.

"It's a matter of whether it is a permanent factor. I don't think that it is right now," he said in an interview on CNBC.

However, an official from the Bank of England warned that policy makers should not be complacent if core measures of inflation that strip out volatile energy and food costs are low.

"If say, you have an oil price shock ... and that does lead to inflation expectations moving up, pay growth moving up, significant second-round effects being embedded and so forth, what would happen, of course, in the medium term is core inflation would move up to the headline inflation, not the other way around," BoE Deputy Governor Charles Bean said at the same conference.

Policy makers must look carefully beyond core inflation for second-round effects of overall inflation to see if there are any forces driving up wages, he said. - Reuters

Economic growth trimmed, consumers more upbeat

NEW YORK: U.S. consumer confidence hit a three-year high in February, suggesting the economy remained on a solid footing despite soaring gasoline prices, according to Reuters on Friday, Feb 25.

The rise in sentiment was a hopeful sign for the economic recovery after the government said on Friday that growth in the fourth quarter was not as robust as it previously estimated.

The Thomson Reuters/University of Michigan survey's index on consumer sentiment climbed to 77.5, the highest since January 2008, from 74.2 in January -- indicating consumers were weathering higher gasoline prices for now amid optimism about the labor market.

"Consumers do appear to be taking the rise in gasoline and food prices in stride, which is very encouraging," said Ryan Sweet, a senior economist at Moody's Analytics in West Chester, Pennsylvania. "I wouldn't be surprised if we had a few bumps along the road, but I do think the consumer will continue to play an important role in the recovery."

Gross domestic product grew at an annualized rate of 2.8 percent in the fourth quarter, the Commerce Department said, a downward revision from its initial 3.2 percent estimate a month ago. Economists had expected GDP growth to be revised up to a 3.3 percent pace.

Political unrest in Libya and parts of the Middle East has pushed crude prices above $100 a barrel, sparking fears among some economists that growth could slow this year.

Economists at JPMorgan lowered their forecast for first-quarter GDP growth to 3.5 percent from 4.0 percent, citing softer-than-expected consumer spending and possible headwinds from the oil price spike. Harsh winter weather is also seen as a factor weighing on growth.

Richmond Federal Reserve Bank President Jeffrey Lacker said on Friday he did not think oil above $100 a barrel or gasoline over $3 a gallon would derail the U.S. recovery.

"So far this seems quite manageable," he said on CNBC. "The real danger is in inflation psychology. I think as long as expectations are managed well, we're going to get through this without a burst in inflation."

The national price for gasoline rose almost five cents this week to an average $3.19 a gallon, the most expensive since October 6, 2008.

STATE, LOCAL GOVERNMENT A DRAG

Turmoil in Libya and fears the oil spike could dent growth drove investors into safe-haven U.S. government bonds, pushing prices up and yields lower.

Brent crude, however, eased off 2-1/2-year highs, helping U.S. stocks to rebound after a week-long sell-off. The dollar rose against a basket of currencies.

The economy expanded at a 2.6 percent rate in the third quarter and grew 2.8 percent for the whole of last year.

The government's measure of fourth-quarter growth was lowered to reflect a contraction in government spending that was more than double the initial estimate.

Spending by state and local governments, which are under heavy budgetary pressures, shrank 2.4 percent. In all, government spending lopped 0.31 percentage point from GDP growth.

Growth in consumer spending -- which accounts for more than two-thirds of U.S. economic activity -- was trimmed to a 4.1 percent rate from 4.4 percent. It was still the fastest since the first three months of 2006 and an acceleration from the third quarter's 2.4 percent rate.

"It validates the view that the most significant player in the economy is gradually coming back, but is doing so in a restrained fashion," said Patrick O'Keefe, director of economic research at J.H. Cohn in Roseland, New Jersey.

The pace of growth was too slow to do much to lower the unemployment rate, which fell during the quarter from 9.6 percent to 9.4 percent. It fell again in January to reach 9 percent.

Fed officials have been concerned the economy is expanding too slowly to bring unemployment down significantly. They are likely to view high oil prices primarily as a risk to growth rather than a long-term inflation concern.

Fed Chairman Ben Bernanke testifies to Congress on Tuesday and Wednesday, and analysts think he is unlikely to suggest much appetite within the central bank for scaling back a $600 billion government bond-buying program launched in November.

The GDP report also showed some upward revisions to business investment, but there were surprise downward tweaks to spending on equipment and software.

It also confirmed that the accumulation of inventories by businesses slowed sharply in the fourth quarter, taking a big bite out of GDP growth. Excluding inventories, the economy expanded at a 6.7 percent pace rather than 7.1 percent.

The expansion marked the biggest increase in domestic and foreign demand since 1998. In contrast, domestic purchases grew at a much more moderate 3.1 percent rate.

Exports were revised higher, but the upward revision to imports was even greater. In all, trade added 3.35 percentage points to GDP growth.

"GDP growth is likely to accelerate in the first quarter. Business equipment and software spending should accelerate, exports will have another good quarter, and inventory accumulation should rebound," said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts.

The report confirmed a pick-up in inflation pressures on surging food and gasoline prices. The personal consumption expenditures index rose at a 1.8 percent rate.

But a "core" price index closely watched by the Fed advanced just 0.5 percent, the smallest gain on record.- Reuters

ECB's Draghi says must watch inflation threat

VERONA, Italy: Monetary policy makers must closely watch emerging inflation tensions to head off any decline in expectations for price stability, European Central Bank Governing Council member Mario Draghi said on Saturday, Feb 26.

In a speech in the northern Italian town of Verona, Draghi said core inflation in the euro area remained low, despite sharp rises in commodity prices which pushed consumer inflation in January to 2.4 percent, well above the ECB's target zone.

"However, the appearance of inflationary tensions does require that we carefully assess the timing and methods for restoring normal monetary conditions and interest rates," he said, according to a text of his speech.

"Monetary policy must prevent a deterioration of expectations, in order to keep the stimulus of international prices from passing through to domestic prices and wages in the longer-term."

Draghi's comments, which chime with warnings from other policy makers of mounting inflationary pressures, come a day after data in Germany, the euro area's biggest economy, showed pressure on consumer prices continued in February.

The ECB is expected to leave interest rates at a record low of 1 percent next week but recent comments from board members have strengthened expectations that it could start gradually withdrawing its crisis support next month.

Draghi, a leading contender to take over as president of the ECB when current incumbent Jean-Claude Trichet steps down later this year, said that a gradual tightening of policy would not necessarily threaten growth prospects, even in weaker economies.

"Real short-term interest rates that are markedly negative, as they have been over the past two years, have not improved the growth prospects of the less dynamic economies," he said. "As economic policies reach the end of their expansionary phase, this will not necessarily endanger growth.

"In the weakest countries, in particular, the cost of borrowing could benefit from the narrowing of spreads on government securities following the adjustment of budget policies and from the containment of risk premiums as inflation expectations are kept under control," he said.

He said the world economic recovery was continuing amid considerable uncertainty and sharply divergent growth rates could easily accentuate the volatility of exchange rates and interest rates, jeopardizing the recovery.

Referring to the turmoil that has swept north African countries including OPEC member Libya, Draghi said that in addition to the human dimension of the crisis, the unrest could have a potential impact on growth by pushing up oil prices.

He said Italy, one of the slowest growing economies in the world over the past decade and one which depends on imported energy, a 20 percent rise in oil prices would cut half a percentage point off growth over three years. - Reuters

Wall St rebounds from sell-off, but down for week

NEW YORK: U.S. stocks rose on Friday, Feb 25, bouncing back from a three-day sell-off as oil prices stabilized, but unease over the Libyan rebellion could be enough to keep buying in check.

The S&P 500 lost 1.7 percent for the week, breaking a three-week streak of gains. Friday's bounce followed a late recovery Thursday that showed buyers were ready to support shares after a bout of selling.

Analysts have been calling for a correction in stocks, with the S&P 500 up 25.8 percent since the start of September. Much weaker-than-average volume on Friday cast doubt on stocks' ability to move higher.

"It's going to be a bumpy ride. I don't think it's just one big correction and we're out of it. I think we'll see multiple, small corrections over the next few months before the market can really decide what the end game in the Middle East is," said David Kelly, the chief market strategist for JPMorgan Funds in New York.

Brent crude futures for April rose 78 cents to settle at $112.14 barrel, easing from a 2-1/2 -year high of $119.79 on Thursday after a source said Saudi Arabia raised its oil output following days of bloody unrest in fellow producer Libya.

As stocks rose, the CBOE Volatility Index, or VIX <.VIX>, Wall Street's fear gauge, dropped 9.9 percent to 19.22, falling below 20 after three days of sharp gains.

The Dow Jones industrial average gained 61.95 points, or 0.51 percent, to end at 12,130.45. The Standard & Poor's 500 Index advanced 13.78 points, or 1.06 percent, to finish at 1,319.88. The Nasdaq Composite Index rose 43.15 points, or 1.58 percent, to close at 2,781.05.

Volume was a low 7 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, well below last year's daily average of 8.47 billion.

For the week, the Dow lost 2.1 percent and the Nasdaq declined 1.9 percent.

WATCHING LIBYA AND OIL

Stock investors have been pressured this week by worries that the turmoil in Libya could spread to other major oil-producing countries, causing gains in energy prices that could become problematic for the economic recovery.

The U.N. Security Council was to meet to discuss sanctions against Libyan leaders who are locked in a bloody battle for survival against a popular uprising.

Late last month, protests in Egypt shook the market, but stocks quickly recovered.

"The market has taken this (unrest in Libya) pretty well" so far, said Jim McDonald, Northern Trust's chief investment strategist in Chicago. Northern Trust has $643.6 billion in assets under management.

"If we see oil prices normalize back down to where they were at the end of the year because of increased stability in the Middle East, that would be constructive to global growth and investors would love that," he said.

McDonald, whose firm is "overweight" on energy shares, said as long as oil prices stay below levels that would force a recession, they are supportive for S&P 500 earnings growth.

Adding to the day's positive tone, an index of consumer sentiment rose in February to its highest level in three years, according to the Thomson Reuters/University of Michigan Surveys of Consumers.

Among top boosts to the Nasdaq were shares of Intel, up 2.7 percent at $21.86. Longbow started coverage of the company with a "buy" rating. A semiconductor index shot up 2.6 percent.

In other company news, Boeing Co shares rose 2.2 percent to $72.30 and led the Dow higher after the U.S. aircraft maker won a $30 billion contract to build 179 U.S. Air Force refueling planes.

Financial and material sectors led the S&P 500's gains,with shares of JPMorgan Chase up 1.7 percent at $46.68. - Reuters

JCY returns to the black in 1Q, but wary of outlook

KUALA LUMPUR: JCY International Bhd, which disappointed investors in 2010 since its listing due to the slide in its share price and weak financial performance, said it managed to return to the black in the first quarter ended Dec 31, 2010 when compared with the preceding quarter.

The hard-disk drive (HDD) manufacturer said however, on a year-on-year basis, its earnings fell sharply to RM7.51 million in the first quarter ended Dec 31, 2010 from RM77.46 million a year ago.

It said on Friday, Feb 25 its revenue declined to RM438.90 million from RM528.20 million. It reported pretax profit of RM7.6 million. Earnings per share were 0.37 sen compared with 3.79 sen.

JCY said the group recorded lower revenue for current quarter mainly due to the lower average selling price (ASP) and depreciating US dollar against the ringgit. Its earnings were also impacted by the increase in the cost of production resulting from increase in the cost of raw material and increase in the labour cost.

When compared to the fourth quarter ended Sept 30, 2010, the revenue of about RM438.9 million and pretax profit of RM7.6 million was an improvement from the turnover of RM474.7 million and losses before taxation'' of RM25.2 million.

'The group's turnover decreased by approximately 7.5% due to a slight decrease in the sales volume for the higher sales value products shipped in the current quarter. The group had also turnaround from loss before tax of RM25.2 million to pre-tax profit of RM7.6 million due to better cost control and absence of significant foreign exchange losses in the current quarter.

'The outlook for the global economic remains uncertain and based on the report of an industry information service company, the demand for HDD will be slightly lower for the first quarter of 2011 due to HDD inventory overhang at PC companies. The group will continue to focus on its core business and continue to intensify its efforts to improve operational efficiency and cost management,' it said.

AZRB posts RM83m net loss in 4Q after Alfaisal University job terminated

KUALA LUMPUR: AHMAD ZAKI RESOURCES BHD [] (AZRB) posted net loss of RM83.06 million in the fourth quarter ended Dec 31, 2010 compared with net profit of RM5.13 million a year ago following the termination of the Alfaisal University Campus project in Riyadh, Saudi Arabia.

It said on Friday, Feb 25 that revenue shrank to RM52.62 million compared with RM105.56 million a year ago. Loss per share was 30.03 sen compared with earnings per share of 1.86 sen.

For the financial year ended Dec 31, 2010 its net loss was RM61.28 million compared with net profit of RM20.76 million in FY09. Its revenue was RM431.34 million compared with RM459.40 million.

It said the group's results were severely affected by its exceptional loss of RM94 million from the termination of the Alfaisal University congtract. Despite the improvement of by RM12 million in its pretax for FY10, the results were impacted by the termination which caused a net loss of RM48 million.

In the third quarter, AZRB had recognised RM44.68 million arising from the liquidation of performance and advance bonds by the King Faisal Foundation (KFF) for the campus development on Sept 1, 2010 as an amount receivable from the foundation instead of an expense of the basis that AZRB has a contractual right to recoup the bonds.

In the fourth quarter, AZRB had included in its book a total of RM99 million loss sustained from the termination of the Alfaisal University contract'' after due assessment on all aspects of claims to be put forward to KFF via the arbitration process.

'This has resulted the group suffered a net loss before tax of RM48 million for the financial year under review,' it said.

However, AZRB said despite the substantial loss suffered from its Alfaisal University, it viewed the loss from its Saudi operations as a one-off isolated event due to the exceptional circumstances with no further significant cash outflows expected.

#Stocks to watch:* TM, CIMB, MAS, Proton, AZRB, Faber

KUALA LUMPUR: After four straight days of losses on Bursa Malaysia last week where markets were roiled by the unrest in oil producer in Libya which saw investors taking money off the table, sentiment is expected to remain cautious in the week ahead, starting Feb 28.

There could be some mild buying interest in companies which announced a strong set of earnings but investors are not expected to rush into the market just yet.

On Wall Street, US stocks rose on Friday, bouncing back from a three-day sell-off as oil prices stabilised, but unease over the Libyan rebellion could be enough to keep buying in check.

The S&P 500 lost 1.7% for the week, breaking a three-week streak of gains. Friday's bounce followed a late recovery Thursday that showed buyers were ready to support shares after a bout of selling.

The Dow Jones industrial average gained 61.95 points, or 0.51%, to end at 12,130.45. The Standard & Poor's 500 Index advanced 13.78 points, or 1.06%, to finish at 1,319.88. The Nasdaq Composite Index rose 43.15 points, or 1.58%, to close at 2,781.05.

As for the outlook for the local stock market, Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi expected FBM KLCI to remain volatile in the short term and very bearish in the medium term.

'We suggest that clients liquidate on rallies and remain more in cash, as there are very few price defensive counters.

'Due to the global market malaise recently, we will see the FBM KLCI in a much weaker posture today. We expect the market to remain weak as the foreign hedge fund money exits Malaysia,' he said, adding that the downturn could be a protracted one.

Stocks to watch during the week ahead after their financial results are TELEKOM MALAYSIA BHD [], CIMB Group Holdings Bhd, MALAYSIAN AIRLINE SYSTEM BHD [] (MAS), UEM Land Bhd, AHMAD ZAKI RESOURCES BHD [] (AZRB) and FABER GROUP BHD [].

TM proposed a capital distribution of about RM1.037 billion or 29 sen for each share held. TM said the proposed capital distribution will be funded through its existing cash balances, which stands at RM3.488 billion as at Dec 31, 2010.

TM also announced its earnings rose 135%to RM400.63 million in the fourth quarter ended Dec 31, 2010 from RM170.25 million a year ago.

Revenue was marginally higher by2.1% at RM2.32 billion from RM2.27 billion. Earnings per share were 11.2 sen compared with 4.8 sen. It proposed a final dividend of 13.1 sen per share.

For FY10, TM's earnings surged 87.6% to RM1.20 billion from RM643.02 million. Its revenue rose 2.1% to RM8.79 billion from RM8.61 billion.

CIMB Group posted a record net profit of RM3.52 billion in the financial year ended Dec 31, 2010. For the fourth quarter, earnings were RM877.62 million, boosted by its Indonesian operations.

The 4Q net profit was 9.3% higher from the RM802.89 million a year ago. Revenue rose 16% to RM3.168 billion from RM2.731 billion. Earnings per share were 11.83 sen compared with 11.37 sen.

MAS posted net profit of RM225.92 million in the fourth quarter ended Dec 31, 2010, down 64.7% from RM640.12 million a year ago, on lower derivative gains and higher finance costs.

Its managing director and chief executive officer Tengku Datuk Seri Azmil Zahruddin was quoted saying MAs had operationally, done well in the quarter where traffic volumes rose 10% and yields were up 5%.

However, it was also weighed down by higher cost of fuel despite that it carried more passengers. Its fuel bill was 13% higher at RM1.2 billion in 4Q compared witrh RM1.06 billion due to higher fuel prices and consumption.

Its revenue rose 8.2% to RM3.67 billion from RM3.39 billion a year ago. Earnings per share were 6.76 sen compared with 31.17 sen.

Proton swung into the red with net loss of RM60.1 million in the third quarter ended Dec 31, 2010 compared to net profit of RM79.68 million a year ago, due mainly to higher branding costs as well as the restructuring expenses incurred by Lotus Group International Ltd.

Revenue for the quarter fell by 8.96% to RM1.83 billion from RM2.01 billion last year. Loss per share was 10.90 sen compared to earnings per share 14.50 sen previously. Net assets per share was RM9.73.

For the nine months ended Dec 31, 2010 Proton's net profit fell 58.1% to RM90.5 million from RM216.29 million, although revenue rose to RM6.36 billion from RM5.97 billion.

Proton said as part of the transformation plans to turn around LGIL, it had started investing in rationalisation of dealers network, and branding activities to deliver the five-year business plans.

Proton also said that during 3Q, it had experienced lower domestic sales volume, as well as increased promotional and marketing spending by a principal subsidiary.

UEM Land Bhd recorded a 37.3% increase in its earnings to RM135.36 million in the fourth quarter ended Dec 31, 2010, boosted by higher revenue and higher margin achieved for one-off transactions from strategic land sales.

AZRB posted net loss of RM83.06 million in the fourth quarter ended Dec 31, 2010 compared with net profit of RM5.13 million a year ago following the termination of the Alfaisal University Campus project in Riyadh, Saudi Arabia.

Revenue shrank to RM52.62 million compared with RM105.56 million a year ago. Loss per share was 30.03 sen compared with earnings per share of 1.86 sen.

For the financial year ended Dec 31, 2010 its net loss was RM61.28 million compared with net profit of RM20.76 million in FY09. Its revenue was RM431.34 million compared with RM459.40 million.

Faber Group saw its net profit shrink to RM2.91 million in the fourth quarter ended Dec 31, 2010 from RM42.57 million a year ago. Revenue declined to RM203.95 million from RM303.93 million. Earnings per share were 0.8 sen only compared with 11.73 sen. It proposed dividend of eight sen per share compared with six sen.

For the financial year ended Dec 31, 2010 net profit was RM78.78 million compared with RM82.68 million in FY09.

RHB Cap group MD Tajuddin Atan to take over from Yusli as Bursa CEO

KUALA LUMPUR: Veteran banker Datuk Tajuddin Atan, who is RHB CAPITAL BHD [] group managing director, will take over as chief executive officer of BURSA MALAYSIA BHD [] from Datuk Yusli Mohamed Yusoff.

The stock exchange operator said on Friday, Feb 25 that Tajuddin, who is also currently RHB Bank Bhd managing director, will assume the CEO post from April 1.

Yusli will be in office until March 31, 2011 where during his eight years tenure he was the key in driving the listing of Bursa Malaysia as a public listed company.

Bursa Malaysia chairman Tun Mohamed Dzaiddin Abdullah said he looked forward to Tajuddin taking the exchange to the next level.

"The mandate for the new CEO is to develop Bursa Malaysia into an attractive and competitive exchange in the region, and to make the capital market more vibrant. Datuk Tajuddin is tasked to ensure that Bursa Malaysia remains a destination of choice for issuers and investors," he said.

According to Bursa, Tajuddin brings with him about 24 years experience in the finance and banking industry.

Since his appointments at RHB Bank as its MD from May 2009 and RHB Cap group group MD from July 2009, he has has been instrumental in elevating the RHB Group's business performance, operational efficiency and development, and implementation of innovative TECHNOLOGY [] in line with its transformation plan.

'He has also succeeded in positioning RHB Group's business to become a strong, full financial service brand in the region. Under his leadership, the Group also strengthened its presence in foreign markets such as Singapore, Thailand and Brunei and initiated the establishment of its footprint in Indonesia,' said Bursa Malaysia.

Tajuddin is familiar to the Malaysian capital market and the Exchange business as he currently serves as a non-executive director and public interest director of the board of Bursa Malaysia since July 14, 2008.

He is also the chairman of the risk management committee, and member of the audit committee and appeals committee of Bursa Malaysia.

Prior to heading RHB Group, Tajuddin, was appointed to helm Bank Pembangunan Malaysia Bhd as its president/group MD in December 2007.

At Bank Pembangunan, he was responsible in formulating and establishing the business direction and strategy while ensuring optimal performance and sustainable growth for the banking group.

He was also the CEO of Bank Simpanan Nasional from October 2004 till 2007 where he was instrumental in restructuring and transforming the company into a sustainable and profitable business entity.

Tajuddin started his career with Bank Bumiputra Commerce Bhd where his 17-year tenure included a four-year stint managing the bank's New York branch.

FBM KLCI extends losses for fourth day, heavyweights weigh

KUALA LUMPUR: The FBM KLCI succumbed to late selling pressure and extended its losses for the fourth consecutive day on Friday, Feb 25, as mild profit taking on blue chips sent the index lower.

Regional markets had mostly closed higher earlier on bargain hunting activities, on rumours that embattled Libyan leader Muammar Gaddafi had been shot as well as on Saudi Arabia's reassurances that it could counter Libyan supply disruptions.

However, Saudi reassurances were not enough to calm jittery markets with analysts predicting that further rise in oil prices could trigger more selling in stocks and other risky assets, according to Reuters.

"When geopolitics in the Middle East are at play in the oil markets, all conventional bets on the direction of oil prices based on supply and demand fundamentals, or economic variables, are off," analysts at BNP Paribas said in a research note, Reuters said.

Stocks recovered smartly on Friday after heavy selling this week on hopes that a recent surge in prices may have been overdone, though traders said the situation was still too fluid to take any aggressive bets, it said.

On Bursa Malaysia, the FBM KLCI slipped 0.04% or 0.6 of a point to 1,489.27, dragged by losses including at Tenaga, Maybank, KLK and AMMB. Year-to-date, the FBM KLCI has fallen 1.95%.

Gainers led losers by 524 to 300, while 256 counters traded unchanged. Volume was 1.39 billion shares valued at RM1.79 billion.

At the regional markets, Hong Kong's Hang Seng Index jumped 1.82% to 23,012.37, Singapore's Straits Times Index rose 1.75% to 3,025.16, Japan's Nikkei 225 added 0.71% to 10,526.76, South Korea's Kospi rose 0.69% to 1,963.43, Taiwan's Taiex up 0.68% to 8,599.65, while the Shanghai Composite Index was little changed at 2,878.57.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi reiterated that he expected FBM KLCI to remain volatile in the short term and very bearish in the medium term.

'We suggest that clients liquidate on rallies and remain more in cash, as there are very few price defensive counters.

'Due to the global market malaise recently, we will see the FBM KLCI in a much weaker posture today. We expect the market to remain weak as the foreign hedge fund money exits Malaysia,' he said, adding that the downturn could be a protracted one.

Lee said the next technical support levels were 1,445 and 1,474, while resistance levels were 1,489 and 1,544.

Among the major losers on the FBM KLCI, Tenaga fell 10 sen to RM6.29 and Maybank lost six sen to RM8.64. Together, the stocks shaved 2.28 points off the 30-stock index.

KLK fell 58 sen to RM20.20, AMMB 11 sen to RM6.19, Digi 20 sen to RM25.80, Maxis four sen to RM5.35, Hong Leong Bank seven sen to RM9.30 while MMC Corp lost three sen to RM2.73.

Gainers included Tradewinds, Shell, Paramount, BLD PLANTATION []s, MTD Capital, Carlsberg, APM Automotive, United Plantations and Hartalega.

Tanco was the most actively traded counter with 120.9 million shares done. The stock added six sen to 40 sen. Other actives included HWGB,'' Jotech, Karambunai, Olympia and Transmile.

PLUS 4Q net profit up 7% to RM337.8m

KUALA LUMPUR: PLUS EXPRESSWAYS BHD [] net profit for the fourth quarter ended Dec 31, 2010 rose 7% to RM337.8 million from RM315 million a year earlier, driven by increase in toll collection from higher traffic volume growth during festive and year-end school holidays.

PLUS said on Friday, Feb 25 that revenue for the quarter however, dipped 5.61% to RM805.89 million from RM853.83 million in 2009.'' The RM805.85 million included a fair value adjustment on toll compensation revenue for the year.

Excluding the fair value adjustment amount of RM113.2 million, total revenue for the quarter would be RM919.1 million, translating to RM65.3 million or 7.6% higher than in 4Q2009.

Earnings per share were 6.76 sen, while net assets per share was RM1.24.

For the financial year ended Dec 31, PLUS net profit rose to RM1.31 billion from RM1.19 billion a year earlier, mainly due to higher revenue mitigated by higher finance costs of RM164.3 million, higher amortization of concession assets by RM20.7 million as well as impact arising from adoption of new/revised FRS.

The full year revenue rose to RM3.35 billion from RM3.18 billion in 2009. For the twelve months ended Dec 31, PLUS generated cash from operating activities of RM2.25 billion, with cash and cash equivalents of RM3.48 billion.

On its prospects, PLUS said that in line with the country's growing economic activities which led to the increase in domestic travelling, as well as rapid development along the expressway corridor, all its domestic expressways registered healthy year-on-year traffic growth with PLUS at 7.7%, Elite 11.4%, Linkedua 21.5% and KLBK 9.2%.

Moving forward, it said traffic volume for these local expressways companies was expected to continue to grow albeit on a slower trend due to a variety of factors including capacity limitation, increase in fuel prices, development of alternative or competing roads and alternative transportation modes.

'The group continues to intensify efforts in improving operational efficiencies and enhancing service level, whilst simultaneously optimising its operating costs , for both local and overseas businesses.

'Apart from that, the board remains positive on the group's expansion plan and continues to explore any value-accretive investment opportunities,' it said.

Telekom Malaysia 4Q net profit up 135pct to RM400.6m, FY10 at RM1.2b

KUALA LUMPUR: Telekom Malaysian Bhd's earnings rose 135%to RM400.63 million in the fourth quarter ended Dec 31, 2010 from RM170.25 million a year ago.

TM said on Friday, Feb 25 that revenue was marginally higher by2.1% at RM2.32 billion from RM2.27 billion. Earnings per share were 11.2 sen compared with 4.8 sen. It proposed a final dividend of 13.1 sen per share.

For FY10, its earnings surged 87.6% to RM1.20 billion from RM643.02 million. Its revenue rose 2.1% to RM8.79 billion from RM8.61 billion.

#Flash* MAS 4Q earnings down 64.7pct to RM225.9m from RM640m yr ago

KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) posted net profit of RM225.92 million in the fourth quarter ended Dec 31, 2010, a decline of 64.7% from RM640.12 million a year ago.

The national carrier said on Friday, Feb 25 that revenue rose 8.2% to RM3.67 billion from RM3.39 billion a year ago. Earnings per share were'' 6.76 sen compared with 31.17 sen.

For FY10, it recorded net profit of RM234.47 million, down 54.9% from RM520.24 million in FY09. Revenue was higher by 17% at RM13.58 billion from RM11.60 billion.

#Flash* CIMB Group 4Q earnings up 9.3pct to RM877.6m, FY10 profit RM3.52b

KUALA LUMPUR: CIMB Group Holdings Bhd posted net profit of RM877.62 million in the fourth quarter ended Dec 31, 2010, up 9.3% from the RM802.89 million a year ago.

It said on Friday, Feb 25 that revenue rose 16% to RM3.168 billion from RM2.731 billion. Earnings per share were 11.83 sen compared with 11.37 sen. It proposed dividend of eight sen per share.

For FY10, its net profit rose 25.4% to RM3.52 billion from RM2.80 billion. It revenue increased by 12.6% to RM11.81 billion from RM10.48 billion.

#Flash* Telekom Malaysia proposes RM1.037b capital distribution, or 29c a share

KUALA LUMPUR: TELEKOM MALAYSIA BHD [] has proposed a capital distribution of about RM1.037 billion or 29 sen for each share held.

TM said on Friday, Feb 25 said the proposed capital distribution will be funded through the group's existing cash balances, which stands at RM3.488 billion as at Dec 31, 2010.

It also proposed a bonus issue of about 3,577.4 million redeemable preference shares of one sen each in TM (RPS) to shareholders, on the basis of one RPS for each TM share held on the entitlement Date.

The RPS shall be issued at its par value of one sen each by way of capitalisation of TM's share premium account.

TM said the redemption of the RPS shall be at a redemption price of 29 sen for each TM share held.

'The par value of one sen per RPS, representing approximately RM35.8 million in total, will be redeemed out of TM's retained profits, whereas the premium on redemption of 28 sen per RPS, representing approximately RM1 billion in total, will be redeemed out of TM's share premium account.

'This will result in a cash payment of 29 sen for each TM share held or a total cash payment of approximately RM1.037 billion to TM's shareholders,' it said.

Oil rises above $112 on Libya output cuts

SINGAPORE: Oil rallied more than $1 a barrel to top $112 on Friday, Feb 25 as the revolt in Libya sparked fears of supply shortages, despite assurances by top oil exporter Saudi Arabia that it would step in to fill any shortfall.

Unrest in Libya has shut in a large chunk of its 1.6 million barrels per day oil output, prompting Saudi Arabia to launch talks with European companies that buy most of Libya's oil exports.

Brent crude for April delivery traded up $1.45 at $112.81 a barrel by 0812 GMT. Prices briefly surged to a 2-1/2-year high of $119.79 on Thursday before settling at $111.36.

U.S. crude traded $1.40 higher at $98.68, after rising as high as $103.41 on Thursday, the highest since September 2008.

"Now is not the time for producers to attempt verbal finesse," analysts at Barclays Capital said in a research note. "It is better to visibly supply more oil now, and then pull it off the market swiftly if it later proves unnecessary."

Estimates varied on how much of Libya's production is down. The International Energy Agency pegged the volume shut in at 500,000 to 750,000 bpd, while Italian oil company ENI said as much as 1.2 million bpd may be down. Key Libyan oil terminals are under rebel control.

SAUDI TALKS

Saudi Arabia was in talks with European companies affected by the disruption in Libyan supply and was willing and able to plug any gaps, senior Saudi sources said on Thursday.

Saudi Arabia has yet to make an official statement on the talks, but sources said the country was able to pump more of the kind of high-quality crude produced by Libya and it could be shipped quickly to Europe with the help of a pipeline that crosses the kingdom.

Oil markets fear the potential impact on the kingdom of a wave of protests across the Middle East and North Africa that has toppled long-time leaders of Tunisia and Egypt.

Saudi Arabia is the only oil producer with significant spare capacity to meet global supply outages such as the reduction in the flow from Libya.

"Anxiety and concerns about the people's revolt spreading to other parts of the Middle East and North Africa continue to support the markets," said Victor Shum, an analyst with energy consultancy Purvin & Gertz.

Prices fluctuated more than $10 in whipsaw trading on Thursday, the widest trading range since September 2008, as the market reacted to rapidly unfolding events in Libya. Volatility forced exchanges to hike trading margins sharply on Thursday, including the first U.S. increase in over two years.

"When geopolitics in the Middle East are at play in the oil markets, all conventional bets on the direction of oil prices based on supply and demand fundamentals, or economic variables, are off," analysts at BNP Paribas said in a research note.

The Libyan supply outage and concern that supply problems may spread has driven up short-term prices for oil more than those for later dates and led to the return of backwardation in the Brent crude market.

The second-month Brent contract is at its highest premium to the twelfth-month contract since April 2008.

''

RIDE IT OUT

With a spike in oil prices threatening the global economic recovery, the IEA called on OPEC to draw an excess oil production capacity if required to counter Libyan supply losses.

U.S. President Barack Obama and Treasury Secretary Timothy Geithner sought on Thursday to quell fears that unrest in Libya would put oil prices on a longer term upward trajectory.

"We actually think that we'll be able to ride out the Libya situation and it will stabilise," Obama told a group of corporate executives in reference to fuel prices.

The spread between Brent and U.S. crude narrowed to $13.97 a barrel from $14.50 on Thursday. - Reuters

UEM Land 4Q earnings up 37.3pct to RM135.3m, FY10 RM194.5m

KUALA LUMPUR: UEM Land Bhd recorded a 37.3% increase in its earnings to RM135.36 million in the fourth quarter ended Dec 31, 2010, boosted by higher revenue and higher margin achieved for one-off transactions from strategic land sales.

It said on Friday, Feb 25 that revenue rose 15% to RM276.33m from RM209.92 million a year ago. Its earnings per share were 3.72 sen compared with 3.46 sen.

In reviewing its performance, UEM Land said profit from operations were RM132.23 million in 4Q10 compared with RM88.82 million a year ago while share of results from associates/ joint ventures were lower at RM15.34 million from RM20.24 million.

'The group recorded higher revenue in the current quarter and full financial year as compared to the preceding year mainly due to higher revenue contribution from the group's direct development and developed land sales as well as continued strong contribution from strategic land sales,' it said.

In the 4Q10, the group recorded significantly higher revenue due to the inclusion of RM90.7 million.

The amount included additional compensation of RM48.2 million from the Johor State Authority for the land acquired for the Coastal Highway project; RM29.4 million compensation from TENAGA NASIONAL BHD [] for land utilised for TNB transmission lines and RM13.1 million for compulsory acquisition of 20 acres of land by the Johor State Authority for a new district police headquarters for Nusajaya.

UEM Land also recorded revenue of RM95.6 million from developed land sales arising from strong sales performance for the southern industrial and logistics clusters project and the sale of 6.698 acres of land in Puteri Harbour to Nusajaya Consolidated.

It said there was also RM73.7 million from the group's various direct development projects arising from strong sales performance and physical progress achieved during the current quarter.

For FY10, its earnings rose 69.7% to RM469.71 million from RM114.62 million while revenue was 14.9% higher at RM469.71 million.

UEM Land also said the profit for FY10 also increased in line with the land sales and also a gain of RM25.6 million on the disposal of an associate, Touch n' Go Sdn Bhd to PLUS EXPRESSWAYS BHD [] and higher contribution from share of results of associates / joint ventures.

The Edge chairman Tong Kooi Ong appointed director of UEM Land

KUALA LUMPUR: The chairman of The Edge Communications Sdn Bhd, Datuk Tong Kooi Ong has been appointed a non independent and non executive director of UEM Land Bhd.

A statement from UEM Land said his appointment took effect on Friday, Feb 25.

The Edge Communications publishes The Edge, Malaysia's award winning and best selling business and investment weekly newspaper. Other titles in its stable are The Edge Financial Daily, a standalone daily business paper that complements the weekly edition and Personal Money, a monthly personal finance magazine.

'In this region, his media interests are represented by The Edge Publishing Pte Ltd, which publishes The Edge Singapore, a business and investment weekly newspaper,' it said.

Tong is also the chairman of SUNRISE BHD [] which was merged with UEM Land.'' UEM Land had made a conditional voluntary general offer in November last year to acquire Sunrise at RM2.80 per share or about RM1.39 billion. The merged entity will have a landbank of about 12,000 acres and a combined asset base of about RM5 billion.

Tong is also chairman of the board and chairman of the executive committee of Taiga Building Products Ltd, which is listed on the Toronto Stock Exchange.

Asian stocks advance as oil price eases

KUALA LUMPUR: The FBM KLCI stayed in positive territory at the mid-day break on Friday, Feb 25, snapping its three-day losing streak in line with Asian stocks that gained on bargain hunting as oil prices retreated on easing worries of Middle East supply disruptions.

Brent oil prices had vaulted more than 7% to almost US$120 on Thursday before pulling back on rumours that Libyan leader Muammar Gaddafi had been shot and on Saudi Arabia's reassurances that it could counter Libyan supply disruptions, according to Reuters.

Japan's Nikkei average rose for the first time in four days while Hong Kong's stocks gained, helped by strong earnings from insurer AIA Group , a rebound in airline shares and Wall Street's overnight bounce, it said.

The FBM KLCI added 4.42 points to 1,494.29 at 12.30pm, lifted by gains atkey blue chips including DiGi, Genting, Axiata and MISC.

Gainers led losers by 438 to 280, while 255 counters traded unchanged. Volume was 734.70 million shares valued at RM825.51 million.

The ringgit strengthened 0.38% to 3.0515; crude palm oil for the third month delivery rose RM18 per tonne to RM3,473, oil shed 8 cents per barrel to US$97.20 and gold added US$2.17 per troy ounce to US$1,405.05.

At the regional markets, Hong Kong's Hang Seng Index jumped 1.66% to 22,976.61, Singapore's Straits Times Index rose 1.16% to 3,007.59, Taiwan's Taiex added 0.57% to 8,590.37, South Korea's Kospi gained 0.38% to 1,957.20 and the Shanghai Composite Index edged up 0.24% to 2,885.60.

Among the major gainers on the FBM KLCI, DiGi rose 50 sen to RM26.50, RHB Capital 18 sen to RM7.98, MISC 15 sen to RM7.60, Genting 10 sen to RM10.18, Genting Malaysia and Petronas Chemicals eight sen each to RM3.30 and RM6.29, while Axiata and Public Bank rose six sen each to RM4,91 and RM13.06.

Tradewinds rose 52 sen to RM8.08, Far East and Shell 50 sen each to RM7.60 and RM10.80, Paramount 37 sen to RM4.88, Carlsberg 31 sen to RM6.61 while BLD PLANTATION []s added 30 sen to RM5.10.

Losers this morning included KLK, Batu Kawan, Ralco, Asia File, QSR Brands, AMMB and Litrak.

Tanco was the most actively traded counter with 71.3 million shares done. The stock added nine sen to 43 sen. Other actives included Jotech, HWGB, Transmile, Olympia, SAAG and Ramunia.

Proton posts RM60.1m net loss in 3Q, weighed by Lotus Group, branding costs

KUALA LUMPUR: PROTON HOLDINGS BHD [] posted a net loss of RM60.1 million in the third quarter ended Dec 31, 2010 compared to net profit of RM79.68 million a year ago, due mainly to higher branding costs as well as the restructuring expenses incurred by Lotus Group International Ltd (LGIL).

The national car maker said on Friday, Feb 25 that revenue for the quarter fell by 8.96% to RM1.83 billion from RM2.01 billion last year. Loss per share was 10.90 sen compared to earnings per share 14.50 sen previously. Net assets per share was RM9.73.

For the nine months ended Dec 31, 2010 Proton's net profit fell 58.1% to RM90.5 million from RM216.29 million, although revenue rose to RM6.36 billion from RM5.97 billion.

Proton said as part of the transformation plans to turn around LGIL, it had started investing in rationalisation of dealers network, and branding activities to deliver the five-year business plans.

Proton also said that during 3Q, it had experienced lower domestic sales volume, as well as increased promotional and marketing spending by a principal subsidiary.

On its prospects, Proton said domestic car sales recorded a growth of 13% to hit an all-time high for the calendar year 2010 compared to 2009.

It also said that Malaysian Automotive Association expects total industry volume to continue growing in calendar year 2011 as a rate of 2% as positive trends continue.

'The improved domestic market outlook and rising fuel prices augurs well for Proton's core models.

'Coupled with the good response and delivery of the Inspira, our prospects for growing sales volume and increasing market share for the fourth quarter of the financial year ending March 31, 2011 are good,' it said.

Boustead 4Q net profit up 41% to RM208.9m, declares 12c dividend

KUALA LUMPUR: BOUSTEAD HOLDINGS BHD []'s net profit rose 41.4% to RM208.9 million for the fourth quarter ended Dec 31, 2010 from RM147.7 million a year ago due mainly to notable increase in revenue from both the PLANTATION [] and trading divisions.

It said on Friday, Feb 25 revenue for the quarter rose to RM1.69 billion from RM1.48 billion. Earnings per share were 22.22 sen while net assets per share was RM4.50. It declared a fourth interim single tier dividend of 12 sen per share, to be paid on March 31 this year.

For the year ended Dec 31, 2010 Boustead's net profit jumped 57.3% to RM537.5 million from RM341.6 million in 2009, while revenue grew to RM6.18 billion from RM5.39 billion.

Commenting on its prospects, Boustead said although the Malaysian economy was projected to grow at a steady pace in 2011, and the outlook for the other regional economies was also expected to be favourable, it was bracing itself for yet another challenging year ahead, as the global economies may be badly hit in the event of a large sovereign debt default in Europe in addition to the short-term monetary policies tightening by China and India.

It said plantation's earnings will very much be dependent on palm oil prices which are expected to stay at attractive levels in 2011, largely due to the low supply situation brought on by adverse weather conditions and the expected increase in demand.

It said the heavy industries division's prospects would be underpinned by contracts on hand, and the finalisation of the value and duration of the project to construct six naval vessels will be positive for earnings.

'The property division can look forward to stable recurring income from its portfolio of commercial and retail PROPERTIES [] and the expansion of the hotel operations.

'The addition of PHARMANIAGA BHD [] in the coming year will enable the group to take advantage of the Pharmaniaga brand and infrastructure to grow revenue and profit in the lucrative pharmaceutical business. The other divisions are expected to perform satisfactorily in 2011,' it said.

FBM KLCI climbs in early trade

KUALA LUMPUR: The FBM KLCI snapped its three-day losing streak in early trade on Friday, Feb 25 as key regional markets recovered slightly on signs that crude oil prices were stabilising.

Brent oil prices vaulted more than 7 percent to almost US$120 before pulling back on rumours that Libyan leader Muammar Gaddafi had been shot and on Saudi Arabia's reassurances that it could counter Libyan supply disruption, according to Reuters.

The pullback in oil, underpinned late gains in US stocks and caused shares in Asia's key markets to find their feet after a steady decline earlier this week, it said.

At 10am, crude oil eased 34 cents per barrel to US$96.95 on the New York Mercantile Exchange.

The FBM KLCI rose 4.31 points to 1,494.18, although analysts said the recovery might not be sustainable given the overhanging uncertainties from the geopolitical developments.

Gainers beat losers 296 to 202, while 226 counters traded unchanged. Volume was 269.50 million shares valued at RM286.02 million.

At the regional markets, Japan's Nikkei rose 0.22% to 10,475.68, Singapore's Straits Times Index added 0.34% to 2,983.17, Taiwan's Taiex gained 0.13% to 8,552.64 and Hong Kong's Hang Seng Index opened 0.6% higher at 22,727.04.

The Shanghai Composite Index fell 0.51% to 2,863.79 and South Korea's Kospi lost 0.27% to 1,944.54.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said he expects the FBM KLCI to remain volatile in the short term and very bearish in the medium term.

As a result, very short-term was the key to the markets.

'We suggest that clients liquidate on rallies and remain more in cash (as there are very few price defensive counters).

'Due to the global market malaise recently, we will see the FBM KLCI in a much weaker posture today. We expect the market to remain weak as the foreign hedge fund money exits Malaysia,' he said.

''

Meanwhile, BIMB Securities Research said given the hanging concern in Libya as crude oil may continue to be under pressure, it did not expect the buying sentiment will resume anytime soon.

'Hence, expect the selling pressure to continue today albeit at mild momentum,' it said.

On Bursa Malaysia,'' Paramount was the top gainer in early trade and rose 36 sen to RM4.87; Far East added 39 sen to RM7.40, Tradewinds rose 27 sen to RM7.83, Lysaght 20 sen to RM1.90, MISC and Shell 18 sen each to RM7.63 and RM10.48, RHB Capital 17 sen to RM7.97 and Amway 14 sen to RM8.50.

Carlsberg rose 24 sen to RM6.54 after its net profit rose 51.8% to RM30.49 million in the fourth quarter ended Dec 31, 2010 from RM20.09 million a year ago, driven by higher export and contract manufacturing sales.

It announced a final gross dividend of 7.5 sen per and special gross dividend of 43 sen share.

Losers in early trade included Batu Kawan, QSR Brands, KrisAssets, JT International, Malaysia Smelting Corp , AMMB and Hong Leong Bank.

Tanco was the most actively traded counter with 24.89 million shares traded. The counter added four sen to 38 sen.'' Other actives included HWGB, Transmile, SAAG, KNM, Ramunia and Olympia.

Insas associate Inari gets Bursa Securities nod to list on ACE Market

KUALA LUMPUR: Inari Bhd, an electronic manufacturing services (EMS) provider in the semiconductor industry, has been given the nod by Bursa Malaysia Securities Bhd to list on the ACE Market.

In a statement on Friday, Feb 25, Inari said it was expected to list in the second quarter on 2011. Inari is a 44% associated company of Main Market-listed INSAS BHD [].

Its managing director Dr Tan Seng Chuan said since the company's inception in 2006, it had not only positioned itself as a leading EMS player in the RF segment of the semiconductor industry, but also grown rapidly in capacity and revenue.

'The group's strong growth necessitates our listing exercise to raise funds for future expansion,' said Tan.

The company provides semiconductor packaging services for global players in radio frequency (RF) mobile industry, which include backend wafer processing and RF testing.

Its finished products are System in Package (SiP) and Quad Flat No-Lead (QFN), key components used in the manufacturing of a wide range of electronic products

Inari said its products were used mainly in the wireless telecommunications, including smartphones and medical sectors, with its customer base including Avago Technologies Trading Limited, Vigsys Sdn Bhd, Ceedtec Sdn Bhd and Newict (M) Sdn Bhd.

Paramount advances after 4Q strong earnings, boost from Jerneh Insurance sale

KUALA LUMPUR: Shares of Paramount Corp Bhd was among the top gainers in the morning on Friday, Feb 25 after it announced a strong set of earnings, which were boosted by the 20% equity in Jerneh Insurance Bhd and higher margins achieved in property development.

At 11.28am, Paramount rose 34 sen to RM4.85 with 345,200 shares done.

The FBM KLCI rose 2.98 points to 1,492.85, off the early high of 1,499. Turnover was 522.46 million shares valued at RM620.44 million. There were 386 gainers, 278 losers and 248 stocks unchanged.

On Thursday, Paramount said while 4QFY10 revenue was at RM102.9 million, a slight decline from RM104.5 million a year ago, profit before tax of RM87.1 million was substantially higher compared with RM22.0 million a year ago.

This 296% increase was attributed to a gain of RM60.8 million recognized on the disposal of the Group's 20% equity in Jerneh Insurance and higher margins achieved in property development.

It also said FY10 revenue grew by 7% to RM432.3 million from RM404.9 million recorded in FY09 the previous year while profit before tax grew by 123% to RM177.1 million from RM79.3 million in FY09.

Discounting the gain from the disposal of Jerneh Insurance, it said the group's core businesses, that is property development, CONSTRUCTION [] and educational services contributed to 47% of the growth in profits.

MARC keeps ratings of Maxtral RM100m debt notes on MARCWatch negative

KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) is maintaining its ratings on MAXTRAL INDUSTRY BHD []'s RM100 million debt notes on MARCWatch Negative.

The ratings agency said on Friday, Feb 25 it was maintaining its AID and MARC-2ID/AID ratings on the RM80 million Al-Bai' Bithaman Ajil Islamic Debt Securities (BaIDS) and RM20.0 million Murabahah Underwritten Notes Issuance/Murabahah Medium Term Notes (MUNIF/MMTN).

'The rating actions affect RM40 million of outstanding BaIDS and RM20 million of notes issued under the MUNIF/MMTN programme,' it said.

The ratings remain under review for possible downgrade pending the company's release of its fourth quarter 2010 financial results. Maxtral had earlier reported a pre-tax loss of RM1.3 million for its third quarter and a cumulative pre-tax loss of RM7.7 million for the nine months to Sept 30, 2010.

MARC had placed Maxtral's debt ratings on MARCWatch Negative on Nov 26, 2010 to highlight increased risk of non-compliance with the company's sinking fund schedule as a consequence of its limited balance sheet liquidity relative to the forthcoming RM20 million BaIDS repayment in April 2011.

MARC said it had recently received confirmation from the trustee that Maxtral had met its minimum required sinking fund account balance of RM10 million due on January 2011. MARC also understands from the company that it will be relying on a bridging loan from a financial institution to cover its forthcoming sinking fund payment of RM10.0 million on March 13, 2011.

While MARC said it believes that the risk of missed payment on the rated obligations over the near term has abated, the rating agency remains concerned with the company's ability to improve its financial performance and restore its credit metrics.

The ratings could be lowered if MARC's ongoing assessment of Maxtral leads the rating agency to conclude that the company is unlikely to be able to demonstrate recovery in its credit metrics commensurate with its current ratings over the next 12 months.

OSK Research keeps Neutral call on Masteel

KUALA LUMPUR: OSK Research is keeping its Neutral call on Malaysia Steel Works (KL) with a fair value of RM1.34, derived from 6x PER and 0.59x P/NTA on FY11 figures.

It said on Friday, Feb 25 it was happy to see Masteel's bread and butter steelmaking business continue to beat its bigger peers, posting a core net profit of RM42.2m in FY10, which was well within its estimates but above consensus.

'While we are upbeat on earnings for 1HFY11, we remain cautious of its outlook beyond six months and the investment risk from its newly proposed rail transit project in the south of Peninsular Malaysia,' OSK Research said.

OSK Research maintains Buy on AirAsia, unch TP RM3.86

KUALA LUMPUR: OSK Research said'' AirAsia ended the financial year Dec 31, 2010 with a core net profit (including associates contribution) of RM874 million, in line with its forecast of RM904 million but above consensus.

It said on Friday, Feb 25 that the low cost carrier's core earnings (excluding associates) soared 173% on-year on the back higher yields from ancillary income amid an improving load factor, which enhanced its fleet mileage.

'While jet fuel price is a prevalent risk, we believe the situation is temporary. Furthermore, AirAsia has lined up several initiatives to counter rising jet fuel price should the Middle East turmoil prolong. We maintain our BUY call on AirAsia at an unchanged TP of RM3.86,' OSK Research said

Maybank IB Research downgrades MISC to Hold, TP RM8.10

KUALA LUMPUR: Maybank Investment Bank Research (Maybank IB) downgraded MISC to Hold with a lower target price of RM8.10.

It said on Friday, Feb 25 that MISC reported a RM1.3 billion gain in 3QFY11 mainly from the disposal of MMHE but operations were below expectations 'as we had underestimated the severity of the petroleum shipping market problem'.

Losses continue to widen. Pending an analyst briefing later Friday, Maybank IB Research said it had 'tentatively downgrade MISC to a Hold and cut FY11-13 earnings by 12%-36% as we expect the petroleum market to only recover in FY13.

'Our new target price of RM8.10 is based on a 10% discount to our revised SOP valuations,' it said.

Blue chips stage mild rebound but off early highs

KUALA LUMPUR: After the heavy selling on Thursday, Feb 24, the FBM KLCI staged a mild technical rebound on Friday, but it was off the early high, reflecting the cautious sentiment among investors.

At 9.27am, the FBM KLCI rose 3.81 points to 1,493.68. Turnover was 141.81 million shares valued at RM134.68 million. There were 257 gainers, 129 losers and 169 stocks unchanged.

YTL rose 12 sen to RM7.18 after posting stronger earnings in the first half ended Dec 31, 2011.

MISC added 12 sen to RM7.57 despite Maybank Investment Bank Research (Maybank IB) had downgraded it to a Hold with a lower target price of RM8.10.

Paramount was the top gainer, adding 42 sen to RM4.93, Far East 30 sen to RM7.40 while Carlsberg rose 26 sen to RM6.56 after announcing its strong earnings and dividends payout. RHB Cap added 12 sen to RM7.92.

HDBSVR sees exciting year ahead for UMW, maintains Buy at SOP of RM8.90

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) sees an exciting year ahead for UMW HOLDINGS BHD [] and maintains a Buy call with a sum-of-parts based target price of RM8.90.

HDBSVR said UMW 4Q10's reported net profit of RM18.5 million was mainly dragged by a one-off impairment losses of RM146m, which it believed was largely linked to its Oil & Gas division (that is Naga 2 and Naga 3).

In its research note issued on Friday, Feb 25 it said that excluding the impairment losses, UMW's net profit in 4Q10 would be RM164.5 million (+45% on-year), taking FY10 net profit to RM658.4 million which was within expectations.

HDBSVR said UMW's topline in 4Q10 grew 15.8% y-o-y to RM3.4bn mainly driven by a 6.3% increase in Toyota vehicle sales to 13.5k units (76% of Group revenue), followed by Heavy & Industrial Equipment (+43% to RM423m) and Oil & Gas (+46% to RM224m).

However, its EBIT margin fell to 6.5% (vs 4Q09: 8.0%; 3Q10: 9.6%) partly dragged by impairment losses.

'Maintain Buy. We expect UMW to turn net cash this year with RM387 million (35 sen a share). Share price catalyst from potential listing of O&G division to unlock value given the improved earnings outlook and valuation for O&G sector. Maintain BUY with SOP-based TP of RM8.90,' it said.

HDBSVR: Mild technical rebound for FBM KLCI on Friday

KUALA LUMPUR: Hwang DBS Vickers Research (HDBSVR) said the FBM KLCI,'' after being hit by a sudden pick-up in selling pressure Thursday, Feb 24, may see a mild technical rebound on Friday.

On Thursday, the FBM KLCI fell 21.2 points (1.4%) thus taking its cumulative loss to 36 points (2.4%) in three days, a mild technical rebound could be in store for the Malaysian bourse ahead, it said.

'On the chart, the benchmark index will likely inch up a little today but may struggle to cross the support-turned-resistance level of 1,495. The immediate support level for the FBM KLCI is now seen at 1,465,' it said

HDBSVR'' said investors' focus will largely be on the slew of corporate financial reports. Among the long list of results announcements made last evening, MISC's Oct-Dec 2010 quarterly earnings was surprisingly weak but AirAsia and CBIP beat its expectations.

OSK Research maintains Sell on Sime Darby

KUALA LUMPUR: OSK Research is maintaining its Sell call on Sime Darby after its six-months earnings for the period ended Dec 31, 2010 suggest that its RM2.5 billion key performance indicator (KPI) net profit was a lowball number.

The research house said on Friday, Feb 25 it had raised its forecast to factor in stronger motor division performance.

'Its operational improvement notwithstanding, we are maintaining our Sell call given that the PLANTATION [] sector is weakening and Sime is among the most expensive at 17.8x FY11 and 16.5x FY12 earnings, after our upward revision in earnings forecast.

'We suspect that much of the optimism relating to the new management has been factored in given the sharply higher consensus forecast against management's KPI net profit,' OSK Research said.

AIG profits on asset sales, life unit strong

NEW YORK: Bailed-out insurer American International Group Inc earned $11.2 billion in the fourth quarter on asset sales, but charges to expand its reserves for old asbestos claims pushed its underlying operations into another loss, Reuters reported on Thursday, Feb 24.

AIG's global property insurance business, Chartis, lost $4 billion in the quarter on those reserve charges, which had been previously announced. Business written in the quarter only rose because of the effects of an acquisition in Japan. Excluding that, business was down in a generally weak market.

The company's smaller U.S. life insurance business, SunAmerica, fared much better. Brokers and advisers who once shied away from AIG products amid its survival woes have started selling them again, and SunAmerica saw a surge in life insurance and variable annuity sales.

AIG also took another hit in the quarter from its aircraft leasing business, ILFC. Industry changes made some of the planes in its fleet less valuable, forcing AIG to take a writedown. Executives have said before they expect to sell ILFC in coming years.

In an annual report filed with securities regulators Thursday afternoon, AIG said it planned "one or more" sales of its common stock this year. Sources familiar with the situation have forecast a joint Treasury-AIG stock sale of at least $15 billion in March or May.

AIG said it earned $11.18 billion, or $16.60 per share in the fourth quarter, compared with a year-earlier loss of $8.87 billion, or $65.51 per share.

Stripping out the gains from asset sales, AIG said it lost $2.21 billion on an operating basis, worse than the $1.34 billion it lost on the same basis a year earlier.

AIG shares rose 1.6 percent to $41.06 in after-hours trading, following its earnings report and the filing. At that level, the U.S. government stands to make a profit of more than $18 billion on its 92 percent stake in what had once been the world's largest insurer. - Reuters

#Stocks to watch:* Sime, AirAsia, Tanjung Offshore, L&G

KUALA LUMPUR: After the battering on Thursday, Feb 24 following the growing revolt in oil producer Libya which sent oil prices surging, investors are expected to remain cautious on concerns of more selling pressure on Friday.

The FBM KLCI closed below the crucial 1,500 level while selling pressure picked up pace in the late afternoon with banks and PLANTATION []s among the major losers. With crude palm oil prices on the decline, plantation stocks are off their recent highs while worries about a weakening economic outlook saw banks being sold. However, oil and gas stocks are expected to continue to see strong interest with US light crude oil above US$100 and Brent around US$120.

On Wall Street, bruised but not bowed, bulls staged a rebound on Thursday, Feb 24 and helped stocks stabilize in a volatile session suggesting investors aren't ready to give up on the market's rally.

The S&P 500 recovered off early lows triggered by deepening concerns that higher oil could stifle economic activity. Stocks hit their worst levels when Brent crude neared $120 a barrel on Libya's turmoil.

The Dow Jones industrial average .DJI fell 37.28 points, or 0.31 percent, to 12,068.50. The Standard & Poor's 500 Index .SPX slipped 1.30 points, or 0.10 percent, to 1,306.10. The Nasdaq Composite Index .IXIC rose 14.91 points, or 0.55 percent, to 2,737.90.

Stocks to watch include SIME DARBY BHD [], AIRASIA BHD [], TANJUNG OFFSHORE BHD [], Land & General Bhd, CARLSBERG BREWERY MALAYSIA BHD [] and Nestle (Malaysia) Bhd.

Sime Darby Bhd's earnings surged 104.8% to RM877.06 million in the second quarter ended Dec 31, 2010 from RM428.19 million a year ago, boosted by most of its divisions while for the year ahead.

Sime said its revenue rose 21.9% to RM10.28 billion from RM8.43 billion and planned to boost its property division by launching property projects with gross development value of RM1.6 billion.

The Edge FinancialDaily reports Sime's former executive vice-president of ''its energy and utilities (E&U) division Datuk Mohamad Shukri Baharom is seeking to strike out a multi-million ringgit suit brought against him by his former employers.

AirAsia Bhd, which posted a record profit for the financial year ended Dec 31, 2010 is not looking at imposing fuel surcharge despite surging crude oil prices.

For the financial year ended Dec 31, 2010, its net profit jumped 110% to RM1.066 billion from RM506.26 million in FY09. Revenue rose 25% to
RM3.992 billion from RM3.178 billion.

In the fourth quarter ended Dec 31, 2010, its earnings surged 835% to RM316.55 million from RM33.87 million a year ago while it was upbeat about its operations based on the current forward booking trend.

'The underlying passenger demand in the first and second quarters for the Malaysian, Thai and Indonesian operations remains positive,' the low-cost carrier said.

Tanjung Offshore Bhd received contract extensions from Petronas Carigali Sdn Bhd to provide offshore support vessels (OSVs) for total charter contract of RM33.5 million.

The contract extensions for the three units of OSVs were for a period of one year, effective March 2011 (one OSV) and July 2011 (two OSVs) respectively.

Land & General Bhd recorded a net profit of RM7.39 million for its third quarter ended Dec 31, 2010 (3Q 2010), up from the RM5.38 million posted a year ago.

It generated a revenue of RM14.08 million for 3Q 2010, compared to RM9.74 million posted a year ago.

Carlsberg Brewery Malaysia Bhd's net profit rose 51.8% to RM30.49 million in the fourth quarter ended Dec 31, 2010 from RM20.09 million a year ago, driven by higher export and contract manufacturing sales.

Its revenue rose to RM326.06 million from RM300.40 million in 2009. Earnings per share were 9.97 sen while net asset per share was RM1.93. It announced a final gross dividend of 7.5 sen per and special gross dividend of 43 sen share.

For the financial year ended Dec 31, 2010 Carlsberg's net profit surged to RM133.24 million from RM76.14 million in 2009, on the back of revenue RM1.37 billion in FY10 from RM1.05 billion in FY09.

Nestle (Malaysia) Bhd's net profit fell 54.5% to RM39.26 million in the fourth quarter ended Dec 31, 2010 from RM86.22 million a year ago, as its profit margin was squeezed mainly by higher investments in brand building, overhead expenses and increase in
commodity costs.

Its revenue for the quarter rose to RM963.89 million from RM950.63 million. Earnings per share were 16.74 sen while net assets per share was RM2.62.

Wall Street: Late rebound on oil drop shows bulls still kicking

NEW YORK: Bruised but not bowed, bulls staged a rebound on Thursday, Feb 24 and helped stocks stabilize in a volatile session suggesting investors aren't ready to give up on the market's rally.

The S&P 500 recovered off early lows triggered by deepening concerns that higher oil could stifle economic activity. Stocks hit their worst levels when Brent crude neared $120 a barrel on Libya's turmoil.

The S&P inversely tracked oil prices and a late-day drop in crude resulted in a corresponding recovery in equities. The index is down 2.7 percent for the week so far, but investors believe the market could regain its footing at this level.

The rebound "suggests that there is still some buying support," said David Joy, chief market strategist at the Boston-based Columbia Management, which oversees $347 billion. "Libya was a good reason to trigger a pullback, but I don't think anyone has changed their mind on the recovery because of this."

Trading volume has risen in the past few sessions, following a period of anemic action that saw stocks hit 30-month highs. The S&P is up 24 percent since the start of September. About 8.90 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, above last year's daily average of 8.47 billion.

Kenneth Fisher, a billionaire investor who oversees $41 billion at the Woodside, California-based Fisher Investments Inc, agreed that there was a base of support for equities.

"People keep underestimating how strong the economy is right now," he said. "The potential short-term hiccups are the kind of disruption that the economy can easily absorb."

Oil has risen about 12 percent over the past three sessions. The sharp rise has fueled worries about the impact of energy costs on economic activity.

Oil futures were at their highest since late August 2008 as the escalating problems in Libya disrupted supply. Brent rose near $120 in intraday trading though it later pulled back to $111.12 in a sell-off sparked by rumors that Libyan leader Muammar Gaddafi had been shot.

"If oil or Brent go up to $120 per barrel and stay there, that would be cause for revisiting our expectations for how robust the recovery will be," Joy said. "That seems to be the level where you have to start thinking about how to change your position."

The Dow Jones industrial average .DJI fell 37.28 points, or 0.31 percent, to 12,068.50. The Standard & Poor's 500 Index .SPX slipped 1.30 points, or 0.10 percent, to 1,306.10. The Nasdaq Composite Index .IXIC rose 14.91 points, or 0.55 percent, to 2,737.90.

The S&P broke through a trendline dating back to August that connected lows in late August with lows reached in late November. Selling accelerated after this line was broken, and the Dow momentarily dropped below 12,000 for the first time since February 3, though both rebounded.

Options activity suggested that some investors were still cautiously bullish in the long term. Investors have been selling high-flying stocks, but then using long-term call options (which profit if the stock rises).

"There is now a newfound respect for risk, thanks to $100 oil, which has strategists repositioning, potentially raising some cash and using longer expiration options on stocks or indexes to participate on the upside," said Joe Cusick, senior market analyst at online brokerage optionsXpress.

Priceline.com Inc (PCLN.O) jumped 8.5 percent to $462.34 and kept the Nasdaq in positive territory after a number of brokerages raised their price targets on the stock. The online travel agency reported a larger-than-expected profit late Wednesday.

General Motors Co's (GM.N) earnings topped estimates, but the stock slid 4.5 percent to $33.02 on concerns about the pressure from rising oil.

In economic news, new U.S. claims for jobless aid fell last week, hinting at an improvement in the labor market, but declines in new home sales and orders for a range of factory goods in January showed the economy still faced headwinds.

About eight stocks rose for every seven that fell on the New York Stock Exchange while on the Nasdaq, almost eight rose for every five that fell. - Reuters

Sime Darby 2Q net profit doubles to RM877.1m, plans property projects with RM1.6b GDV

KUALA LUMPUR: SIME DARBY BHD []'s earnings surged 104.8% to RM877.06 million in the second quarter ended Dec 31, 2010 from RM428.19 million a year ago, boosted by most of its divisions while for the year ahead, it planned property projects with gross development value of RM1.6 billion.

Announcing the strong set of financial results on Thursday, Feb 24, Sime said its revenue rose 21.9% to RM10.28 billion from RM8.43 billion.

Earnings per share were 14.6 sen compared with 7.13 sen a year ago. It declared an interim dividend of eight sen per share.

For the first half, its earnings rose 37.7% to RM1.53 billion from RM1.113 billion in the previous corresponding period. Revenue was 17.9% higher at RM19.06 billion compared with RM16.17 billion.

On the 1H performance, it said the group's stronger overall performance was underscored by the improved performance of the PLANTATION [], motors, industrial and energy & utilities divisions, all of which performed better than the previous corresponding period.

'The improved performance was achieved despite the plantation division, the biggest contributor to the group's profits, experiencing prolonged rainfall and floods in Malaysia and Indonesia that had affected operations. However, the higher CPO price during the period under review had more than offset the impact of the decline in production,' it said.

Performances of divisions in 1H ended Dec 31, 2010

The plantation division posted an operating profit of RM1.3, up 5% on-year driven by higher crude palm oil (CPO) price.'' For the half-year period, it achieved an average CPO price of RM2,692 per tonne compared with RM2,222 a year ago.

The industrial division generated an operating profit of RM456 million for the first half, up 21% due to the stronger performance in Malaysia and China as a result of increasing demand boosted by higher growth in the CONSTRUCTION [] and infrastructure industries.

The motors division recorded an 87% increase in operating profit to RM277 million, underpinned by strong sales growth in China and Malaysia.

BMW remained the biggest profit contributor and was the top selling luxury marque in Singapore, Hong Kong and Macau for 2010 where the Group is the sole distributor of BMW vehicles. In Malaysia, profit growth was attributable mainly to the strong performance of Hyundai.

However, the property division's operating profit fell 26% to RM132 million as the contributions from the asset management and hospitality segments were lower.

Nonetheless, the property development segment's profit rose 9.4% to RM121 million. Sime Darby's energy & utilities division reported an operating profit of RM73 million.

Sime Darby president and group chief executive, Datuk Mohd Bakke Salleh said the group had a commendable first half considering the weather disruptions experienced in the Malaysian and Indonesian plantations.

On the performance of the property division, Mohd Bakke said the group is targeting to launch 15 new projects across several townships in the second half of FY2010/2011.

'The division is expecting an estimated gross development value (GDV) of about RM1.6 billion from the launches,' he said.

As for the industrial division, he said the financial impact of the recent floods in Queensland, Australia would be reflected in the third quarter results of FY2010/2011.

However, he expected the Industrial division's performance for the full financial year 'will not be severely affected and that the recovery would only be visible by the fourth quarter of this financial year'.

Higher demand for equipment rental for repair and maintenance works as well as income from the after-sales business post-flooding will cushion the impact of the delays in equipment deliveries.

''

YTL Corp 1H net profit up 4.6pct to RM443.1m from RM423.7m yr ago

KUALA LUMPUR: YTL CORPORATION BHD []'s net profit after taxation and non-controlling interests rose 4.6% to RM443.1 million (US$145.3 million) in the first half ended Dec 31, 2010 from RM423.7 million (US$138.9 million) a year ago, underpinned by the key utilities and cement divisions.

YTL Corp said on Thursday, Feb 24 profit before taxation increased 8.5% to RM1.104 billion (US$362.2 million) compared to RM1.018 billion (US$333.7 million).

The group recorded a 13.3% growth in revenue to RM8.90 billion (US$2.919 billion) for the 1H compared to RM7.857 billion (US$2.576 billion).

YTL group managing director Tan Sri Francis Yeoh Sock Ping said the growth over the 1H ended Dec 31, 2010 was driven primarily by strong performance in the key utilities and cement divisions.

'In other areas, the reorganisation of our property development and hotels businesses is ongoing and is intended, upon completion, to streamline the Group's operations in those spaces.

'We also continue to see good development of our 'YES' 4G mobile internet with voice service, launched in November last year, and are focused on further developing our coverage network and range of devices,' he said.

Yeoh said YTL Corp also proposed a subdivision of every one existing 50 sen share into five 10 sen shares 'to increase the affordability, liquidity and attractiveness of YTL Corp's shares to potential investors, as well as our existing shareholders'.

YTL POWER INTERNATIONAL BHD []'s revenue rose 11.4% in 1H ended Dec 31, 2010 to RM7.061 billion (US$2.315 billion) on-year; profit before taxation increased by 11.3% to RM738.7 million (US$242.2 million). Net profit after taxation and non-controlling interests increased 10.5% to RM532.1 million (US$174.5 million) this year over RM481.4 million (US$157.8 million) a year ago.

YTL Cement's 1H revenue rose 9.9% to RM1.023 billion (US$335.6 million) from RM931.2 million (US$305.3 million) a year ago. Net profit after taxation and non-controlling interests increased 22.8% to RM154.4 million (US$50.6 million) from RM125.7 million (US$41.2 million) a year ago.

'The improvements in financial performance were due mainly to higher demand for cement in the CONSTRUCTION [] industry and consolidation of the results of the Batu Tiga Quarry group of companies which YTL Cement acquired during the 2010 financial year,' it said.

However, YTL Land's revenue fell to RM41.4 million in the 1H ended Dec 31, 2010 from RM181.4 million a year ago. Net profit after taxation and non-controlling interests was RM5.4 million over RM11.0 million last year.

'The decline was due to lower revenue and profit recognition from the property development and construction segments and changes in the timing of launches of new projects,' it said.

Meanwhile, YTL e-Solutions recorded a 31.7% growth in revenue to RM29.9 million for the 1H ended'' Dec 31, 2010 and net profit after taxation and non-controlling interests of RM8.9 million, up 90.8% over RM4.7 million a year ago.

GLOBAL MARKETS-Brent oil near $120 on Libya; stocks, copper fall

LONDON: Oil prices hit 29-month highs on Thursday, Feb 24 to near $120 a barrel on growing fears that the unrest in Libya could spread to other oil producing countries in the Middle East, threatening to derail global growth.

World stocks and copper prices fell for the fourth straight day as investors cut their risk exposure, while safe-haven gold, Swiss francs and U.S. Treasury prices rose.

Libyan security has cracked down on anti-government protesters and fighting has spread to the capital Tripoli after erupting in Libya's oil-producing east last week with no signs of leader Muammar Gaddafi stepping down after 41 years in power.

"There has been another spike in oil and the general unrest in the Middle East has knocked all the confidence out the market," Mark Priest, senior equities trader at ETX Capital, said. "We cannot see a turnaround unless suddenly the situation is resolved in Libya."

London Brent crude futures rose 5.4 percent to trade above $117 a barrel after touching a 29-month high of $119.79, while U.S. crude futures advanced 3.9 percent to above $101 a barrel.

The surge in oil prices is threatening to put an end to the recovery in the developed economies and add further inflationary pressure in booming emerging countries.

World equities measured by MSCI All-Country World Index dropped 0.5 percent, falling for the fourth day in a row after hitting a 30-month high on Friday. The index is still up 2.2 percent this year.

MSCI emerging markets index lost 1.1 percent to extend the loss for the year to 5.9 percent as investors shift out of developing economies to developed markets on concerns over higher inflation.

Europe's FTSEurofirst 300 index lost 0.7 percent, down for the fourth straight session. In Asia, Japan's Nikkei average fell to a three-week low, down 1.2 percent.

''

SHELTERS SOUGHT

The dollar was down 0.6 percent at 0.9273 Swiss francs and 0.6 percent at 81.95 yen, while the euro lost 0.8 percent to 1.2727 francs.

"There is a lot of safe haven demand for the Swiss and the yen but the dollar's downside against these currencies could be limited because for a lasting trend to arise you need U.S. Treasury yields to fall," said Manuel Oliveri, currency strategist at UBS.

Yields on benchmark 10-year U.S. Treasuries eased 4 basis points to 3.4403 percent, down about 33 basis points from a nine-month high hit earlier this month, while those on German Bunds slipped 1 basis points to 3.120 percent.

Gold added 0.3 percent after gaining 0.9 percent in the previous session, though copper eased 1 percent after falling 4.4 percent in the previous three sessions. - Reuters

KNM falls 11pct, KLCI near 1,500

KUALA LUMPUR: KNM GROUP BHD [] fell 11.3% in afternoon trade on Thursday, Feb 24 after reporting a weaker set of financial results while the FBM KLCI declined further on selling of banks and PLANTATION []s.

At 3.11pm, the FBM KLCI fell 8.38 points to 1,502.73. Turnover was 1.2 billion shares valued at RM1.35 billion. Declining stocks beat advancers 697 to 128 while 187 stocks were unchanged.

KNM fell 32 sen to RM2.51 with 25.30 million shares done. It reported lower earnings of RM131.21 million in FY ended Dec 31, 2010 compared with RM260.55 million in FY09.

It achieved revenue of RM1.56 billion, profit after tax and minority interest of RM131.20 million and EBITDA (earning before interest, tax, depreciation and amortisation) of RM199.37 million for FY10.

'Compared to the previous year, the lower performance in this year was due to lower job orders, lower contribution margins and higher operating costs,' it said. The financial performance was also weaker compared with the third quarter ended Sept 30, 2010.

Among plantations-based stocks, Kulim fell 27 sen to RM3.70 after its share split, bonus issue went ex on Wednesday. Batu Kawan lost 20 sen to RM15.76 and Tradewinds Plantations 18 sen to RM3.07.

SP Setia lost 26 sen to RM5.84, IJM 24 sen to RM6.01, YTL 20 sen to RM7.20 and Tradewinds 19 sen to RM7.71.

KLCI below 1,500, broader market weaker, IJM down 3.8pct

KUALA LUMPUR: The FBM KLCI fell below the important 1,500 level in late afternoon trade on Thursday, Feb 24, weighed down by losses by big capitalised stocks.

At 3.43pm, the KLCI fell 11.28 points to 1,499.83. Turnover was 1.4 billion shares valued at RM1.68 billion. Losers beat gainers 773 to 109 while 174 stocks were unchanged.

IJM Corp was nearing the RM6 level as investors sold the stock following its lower core earnings. IJM Corp was down 24 sen to RM6.01 with 9.96 million shares done.

Maybank Investment Bank Research (Maybank IB) said IJM's nine-months earnings of RM341 million net profit (+54% on-year) included a RM99 million one-off gain of which RM68 million was recognised in 3Q.

'Excluding the gains, RM243 million nine-month core net profit (+10% on-year) was below expectations at 65% of our RM375 million FY11 core net profit forecast.

'The operational shortfall came from IJM Land and lower margins at the other businesses. We lower our FY11 core net profit forecast by 11% (to RM333 million), but raise FY12 forecast by 3% for higher CPO price assumption. We downgrade our call on the stock with share price nearing our new RM6.50 target price (+10sen),' it said.

LPI Capital targets 15pct growth in gross premiums in FY11

KUALA LUMPUR: Insurer LPI CAPITAL BHD [] is targeting a 15% growth in gross premiums in the financial year ending Dec 31, 2011.

Its chief executive officer Tee Choon Yeow said on Thursday, Feb 24, the growth would be boosted by new businesses from strategic partners which are also global insurers.

He said LPI was also expanding its agency force with three planned branch offices in Peninsular Malaysia. It has 16 branches now.

'Net profit growth for FY11 should be more than 15%,' he told reporters after its AGM here. In FY10, LPI raked in RM755.93 million in gross premiums.