#Stocks to watch:* IJM, Mitrajaya, K.Euro, Sunway, Sime Darby

KUALA LUMPUR: CONSTRUCTION [] stocks would be in focus in the week ahead, starting Monday, April 4 as the government rolls out more projects under the Economic Transformation Programme (ETP).

Prime Minister Datuk Seri Najib Razak has given the assurance that the government will announce a slew of new major and exciting projects in the next few months, providing traction in implementing effectively the ETP.

Meanwhile, analysts expect external newsflow to impact investors' sentiment in the second quarter,

'Nevertheless, beyond the short-term volatility, we believe there is still room for the market to move higher in the 2H as investors' worries are somewhat exaggerated and the global economic recovery will unlikely be derailed,' said RHB Research Institute.

It said the external headwinds that dragged down global equities will likely dissipate and transform into potential catalysts for the market to come back in the second half.

'These include: 1) Worst of the Japanese disaster over with reconstruction plans being put in place; 2) Political upheavals in the Middle-east and North Africa subside and oil price normalises; 3) Receding threat of accelerated inflation for Emerging Asia as weather conditions improve and food prices ease; and 4) Domestically, implementation of ETP gaining speed with cheers from general election news flow from time to time,' RHB Research Institute said.

Meanwhile, interest in biogas is expected to pick up with power giant TENAGA NASIONAL BHD [] signing an MoU on Monday with Sime Darby PLANTATION [] and Mitsui & Co., Ltd'' to study the potential of using biogas to generate power at Sime Darby's oil palm estates.

The study, which will see a collaboration of facilities, skills-set and knowledge based on each company's area of expertise, intends to take Sime Darby Plantation's sustainability efforts to new heights.

Other stocks to watch would be IJM Corp, Mitrajaya Holdings, Kumpulan Europlus and Sunway Holdings following fresh corporate news.

IJM Corp Bhd's unit New Pantai Expressway Sdn Bhd (NPE) has received the go-ahead from the Public Private Partnership Unit of the Prime Minister's Department for the proposed New Pantai elevated highway extension to Ampang-Kuala Lumpur.

Mitrajaya's unit has accepted the RM90.78 million contract for the extension project of the Ampang light rail transit (LRT) line in Kinrara.

Kumpulan Europlus said its 64.2% owned West Coast Expressway Sdn Bhd has received a letter from the Public Private Partnership Unit approving in-principle the proposed construction of West Coast Expressway (Taiping-Banting).

The project is to be privatised on a build-operate-transfer basis and the negotiation is expected to be completed within six months from the date of the letter.

Sunway Holdings has accepted a RM22.56 million contract from Singapore-based Sim Lian Group Ltd's subsidiary to undertake the substructure of three blocks along Jalan Tun Razak here.

Its unit Sunway Geotechnics (M) Sdn Bhd accepted the letter of award for the contract from Sim Lian's subsidiary Perumahan SLG Central Sdn Bhd for the piling of three blocks of commercial building.

SAM Engineering & Equipment (M) Bhd (formerly LKT INDUSTRIAL BHD []) is acquiring the assets and manufacturing business of engine casing, a division of Singapore Aerospace Manufacturing Pte Ltd for RM135 million in cash and loan stocks. The acquisition was part of its long-term strategy to grow the business and diversify the customer base beyond the current backend business.

The proposed acquisition would interest investors after its major shareholder Singapore Precision Engineering Ltd (SPE) intends to retain the listing status of SAM Engineering and it would undertake a proposed rectification plan about its shareholding.

Oil rises to 2-1/2 year peak on job rise, supply fear

NEW YORK: Oil prices jumped on Friday, April 1'' as supportive U.S. jobs data reinforced economic growth expectations and Libya's conflict and Middle East unrest kept supply threats in focus, pushing both Brent and U.S. crude to their highest settlements since 2008.

U.S. nonfarm payrolls registered solid growth for a second month in March and the jobless rate hit a two-year low of 8.8 percent, helping fuel optimism about oil demand.

Geopolitical supply risks also had oil traders wary of being too short at the weekend, as Libya's undecided conflict and Middle East unrest persist and elections near for OPEC-member Nigeria, brokers and analysts said.

Oil prices also benefited from momentum after ending the first quarter posting double-digit quarterly gains.

Brent crude for May rose $1.34 to settle at $118.70 a barrel, the highest close since August 2008 and up $3.11 for the week. It hit a May contract peak of $119.14 in post-settlement trading.

Brent's front-month 2-1/2-year high of $119.79 was struck on February 24. Brent has bounced back after falling below $108 in the aftermath of Japan's March 11 earthquake and tsunami.

U.S. crude rose $1.22 to settle at $107.94, pushing to $108.47 in post-settlement trading. Both the settlement and the intraday peak were the highest since September 2008. U.S. crude took out the previous 2011 peak ahead of the jobs data.

The weekly total U.S. crude trading volume was the lowest of the year, dropping to 2.45 million lots traded, down from 2.53 million last week and lowest since the week to December 31, according to Reuters data.

Friday's volume of 509,669 lots was 32 percent below the 30-day average, while Brent's daily volume of 454,581 lots, was only 7.5 percent below its 30-day average.

"You have the jobs report, Libya has escalated, you've got Nigeria elections soon and Syria and the Middle East unrest and it's the first day of the quarter so you have new money come in," said Richard Ilczyszyn, senior market strategist at Lind-Waldock in Chicago.

"There is a tug of war going on with the dollar after the jobs report and it's Friday so there may be reluctance to go into the weekend short."

Money managers raised their net-long positions in crude oil futures and options on the New York Mercantile Exchange in the week to Tuesday, the Commodity Futures Trading Commission said in a report on Friday.

The U.S. jobs report showed nonfarm payrolls rose 216,000, more than the 190,000 expected and followed Thursday's report that weekly initial jobless benefit claims fell last week.

The U.S. manufacturing sector grew at a marginally slower pace in March although a measure of prices rose to their highest level since July 2008, according to an industry report that some viewed as adding support for oil prices.

"The trivial drop back in the ISM manufacturing index to 61.2 in March, from 61.4, still leaves it at a level consistent with GDP growth of more than 5 percent annualized," Paul Ashworth, chief U.S. economist at Capital Economics in London said in a note. - Reuters

Wall Street gains on job growth; earnings next hurdle

NEW YORK: U.S. stocks started a traditionally healthy month on strong footing on Friday after solid jobs figures, but the S&P 500 may need help to break to new multi-year highs.

The S&P hovered near 1,333, a significant level as it represents double the 12-year low hit in March 2009. It is close to the 1,344 representing the S&P's 2011 high, its highest since June 2008.

"There's a lot of congestion in terms of price action around these levels and I wouldn't expect the market to break to new highs in the next weeks," said Paul Zemsky, head of asset allocation at ING in New York.

Strong job growth and supportive comments on Fed policy from influential New York Fed Bank President William Dudley were supportive, but the market is looking to forthcoming earnings to kick the rally into a higher gear.

U.S. employment grew solidly for a second month in March and the jobless rate hit a two-year low of 8.8 percent.

"Once we get to earnings and get confirmation companies continue to show strength, I think we'll make new highs on the S&P. But a couple of weeks of consolidation seems like a good thing to happen," Zemsky said.

About 7.4 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, below last year's estimated daily average of 8.47 billion. Composite volume was the weakest for any week so far this year.

Dudley said quantitative easing that totaled $600 billion in bond purchases was expected to run until June, countering several days of hawkish rhetoric from other Federal Reserve officials.

The payrolls number was "a clear breakout in the trend of job growth to the upside," said Zemsky. "I think this is the game changer in terms of giving more confidence the recovery is going to be durable and survive the end of QE2."

NYSE Euronext (NYX.N) shares rallied after Nasdaq OMX Group Inc (NDAQ.O) and IntercontinentalExchange Inc (ICE.N) unveiled a bid to buy the rival exchanges operator, topping an earlier offer from Deutsche Boerse AG (DB1Gn.DE).

NYSE's stock surged 12.6 percent to $39.60 while ICE shares lost 3.1 percent to $119.75 and Nasdaq OMX rose 9.3 percent to $28.23.

The Dow Jones industrial average .DJI hit 12,419.71 -- its highest intraday level going back to June 2008 -- before closing up 56.99 points, or 0.46 percent, at 12,376.72. The Standard & Poor's 500 .SPX rose 6.58 points, or 0.50 percent, to 1,332.41. The Nasdaq Composite .IXIC gained 8.53 points, or 0.31 percent, to 2,789.60.

For the week, the Dow gained 1.3 percent, the S&P added 1.4 percent and the Nasdaq rose 1.7 percent.

April is the best month for the Dow industrials going back to 1950, with an average gain of 2 percent, according to the Stock Trader's Almanac.

In another snapshot of the economy, the U.S. manufacturing sector grew at a marginally slower pace in March, according to the Institute for Supply Management. The Commerce Department said CONSTRUCTION [] spending fell more than expected in February, dropping to its lowest level since October 1999.

Irish and Greek debts sustainable: EU rescue fund chief

DUBLIN: European authorities and the International Monetary Fund believe Ireland and Greece can sustain their debts while it is up to Portugal whether it joins them in seeking help, the head of Europe's rescue fund said. Fears Ireland will not be able to shoulder the burden of one of the world's most costliest bank bailouts have overshadowed the government's pledge to recapitalize its financial system by 24 billion euros and draw a line under its woes.

Klaus Regling, head of the European Financial Stability Facility, said last week that there were risks to the assumption that Greece would pay back its debts, but he did not identify any similar risks to Ireland in an interview with the Irish Times on Saturday.

"The assessment of the three institutions that have the task to make this kind of assessment -- the IMF, the European Commission and the ECB -- is that these countries will reach a sustainable debt situation at the end of their programmes," Regling told the newspaper.

"Portugal is struggling internally whether they should ask for assistance or not, we shall see, it's their decision. It's these three countries that will have serious problems for a while, but not the euro area as a whole."

"Spain overall is in much better shape. There's no programme, no need for financial emergency assistance in Spain."

Regling, who was speculated last month as being Germany's candidate for the presidency of the European Central Bank, repeated that he was happy in his current job and not a candidate.

"I am not a candidate and I'm happy to be here to manage the EFSF and to prepare the ESM," Regling said. - Reuters

IMF denies pressing Greece to restructure debt

WASHINGTON/BERLIN: The International Monetary Fund on Saturday, April 2'' denied a report in German magazine Der Spiegel that it was privately pressing Greece to restructure its debt.

"As we have said consistently, the IMF supports the Greek government's position of no debt restructuring and its determination to fully service its debt obligations. Any reports claiming otherwise are wrong," an IMF spokeswoman told Reuters.

Without citing any sources, Der Spiegel reported that the IMF had reversed its previous opposition to the idea of a Greek restructuring and now believed one was necessary soon.

It wrote that senior IMF officials were recommending this to European governments because Greece's debt mountain was now roughly one-and-a-half times its annual economic output.

Early in March, IMF European Director Antonio Borges told reporters he was "confident that Greek debt is sustainable," adding that the Greeks had made "quite a bit of progress on their banks" as well.

But since the IMF now believes current measures no longer suffice, it would like to see interest rates on Greek sovereign debt lowered, maturities extended or the amount of principal which Greece has to repay cut, Der Spiegel said.

European governments and the IMF are jointly contributing to and administering Greece's 110 billion euro ($155 billion) bailout, so a split between them on policy could be damaging to Greece's prospects for recovery.

Greek and European officials have long insisted that Greece can recover without restructuring its debt, and that even discussing a restructuring now would be counter-productive by damaging banks across Europe and causing panic in markets.

Greek Finance Minister George Papaconstantinou, speaking to Reuters at a conference in Italy on Saturday, responded to the Der Spiegel report by saying: "There is absolutely no chance of a restructuring of Greek debt."

He added, "People (who talk about a restructuring) fail to understand that the costs would much outweigh the benefits."

European Commission spokesman Jens Mester said: "All support measures are in place, and there is no reason now to start thinking of this possibility of restructuring Greece's debt."

Der Spiegel reported that the IMF was still not willing to call openly for a Greek restructuring out of fear this could increase market pressure on Portugal. Portuguese bond yields have soared in the last several weeks because investors think Lisbon may soon be forced to seek a bailout.

Many investors and analysts think an eventual Greek restructuring may be inevitable. Cutting its credit rating of Cyprus on Wednesday, Standard and Poor's cited an "increasing likelihood that the Greek government will restructure its debt."

Former European Central Bank chief economist Otmar Issing told Der Spiegel last month that Greece's sovereign debt would have to be restructured as soon as other euro zone countries were out of danger.

Before any restructuring, however, Greece may try another strategy. Papaconstantinou said on Wednesday that Athens might use some proceeds from state asset sales to buy back outstanding bonds from the market; since market prices of its debt have dropped sharply below face value, this could have the effect of a restructuring in lightening Greece's debt load without requiring Athens to conduct difficult talks with creditors.

IJM unit New Pantai Expressway gets 'greenlight' for NPE extension to Ampang

KUALA LUMPUR: IJM Cop Bhd's unit New Pantai Expressway Sdn Bhd (NPE) has received the go-ahead from the Prime Minister's Department for the proposed New Pantai elevated highway extension to Ampang-Kuala Lumpur.

IJM said on Friday, April 1 it had received the letter from the Public Private Partnership Unit approving in-principle the project.

'The project is to be privatised by way of a supplemental agreement to the concession agreement dated March 26, 1996, and is subject to further negotiation on the technical and financial terms and conditions of the project.'' The negotiation is expected to be concluded within six months from the date of the letter,' it said.

Widetech eyes international gaming, casino business

KUALA LUMPUR: Loss-making Widetech (Malaysia) Bhd is teaming up with Goldshore Capital Ltd to collaborate and undertake investment opportunities in the gaming and casino business in various countries.

Widetech said on Friday, April 1, its unit Probusiness Investments Ltd had signed an investment and shareholders' agreement with Goldshore, a British Virgin Islands incorporated company, for the collaboration.

Probusiness' core business is gaming operations and it will be responsible for the entire financing of the agreement via its own funds.

Widetech is involved in gaming operations, manufacturing, consumer financing and operates a hotel in Laos. It posted losses of RM817,000 on the back of RM7.21 million in revenue in the nine-months ended Dec 31, 2010.

FBM KLCI closes at highest level since mid-January

KUALA LUMPUR: The FBM KLCI ended the first trading day of the second quarter of 2011 on a strong note, closing at its highest level since Jan 19 this year.

Banking stocks and key blue chips lifted the FBM KLCI by 9.66% or 10.25 points to 1,555.38.

Gainers led losers by 517 to 319, while 271 counters traded unchanged. Volume was 1.52 billion shares valued at RM2.15 billion.

At the regional markets, the Shanghai Composite Index jumped 1.34% to 2,967.41, Hong Kong's Hang Seng Index rose 1.17% to 23,801.90, South Korea's Kospi added 0.68% to 2,121.01, Singapore's Straits Times Index was up 0.47% to 3,120.47 and Taiwan's Taiex edged up 0.25% to 8,705.13.

Japan;s Nikkei 225, however, fell 0.48% to 9.708.39.

Among the leading movers on the FBM KLCI, CIMB rose 14 sen to RM8.34, Maybank five sen to RM9.01, AMMB eight sen to RM6.57, Hong Leong Bank ''and HLFG 13 sen each to RM9.98 and RM9.13, RHB Capital 14 sen to RM8.72 and Public Bank was up two sen to RM13.14.

Axiata was up eight sen to RM4.87, Genting Malaysia 16 sen to RM3.84, Sime Darby nine sen to RM9.32, Petronas Chemicals 13 sen to RM7.37, Genting four sen to RM11.08 and Gamuda five sen to RM3.91.

Other gainers included Nestle, Fima Corp, Masterskill, MAA, Panasonic, JT International, United PLANTATION []s and Sungei Bagan.

DBE Gurney was the most actively traded counter with 65.6 million shares done. The stock added half a sen to 13 sen.

Other actives included MAA, Talam, Perisai, Masterskill, Olympia, Axiata, Genting Malaysia and Karambunai.

Meanwhile, decliners included Petronas Dagangan, Golsta, Ekovest, Esso, Nationwide, Kotra, Hap Seng, APM and Lay Horng.

Sunway Holdings gets RM22.5m job from Singapore-based Sim Lian Group

KUALA LUMPUR: SUNWAY HOLDINGS BHD [] has accepted a RM22.56 million contract from Singapore-based Sim Lian Group Ltd's subsidiary to undertake the substructure of three blocks along Jalan Tun Razak here.

Sunway said on Friday, April 1 its unit Sunway Geotechnics (M) Sdn Bhd accepted the letter of award for the contract from Sim Lian's subsidiary Perumahan SLG Central Sdn Bhd for the piling of three blocks of commercial building.

'The proposed project is targeted to be completed by Sept 30, 2011 with a CONSTRUCTION [] period of six months. It is expected to contribute positively to the earnings of Sunway Group for the financial year ending Dec 31, 2011 onwards,' it said.

Mitrajaya unit accepts RM90.78m contract for LRT Ampang line extension

KUALA LUMPUR: MITRAJAYA HOLDINGS BHD []'s unit has accepted the RM90.78 million contract for the extension project of the Ampang light rail transit (LRT) line in Kinrara, Selangor.

Mitrajaya said on Friday, April 1 the project under package 'A' included CONSTRUCTION [], completion, testing and commissioning of stations 3, 4 and 5, TPSS Kinrara 1 and Kinrara 2.

'The contract shall be for a period of 22 months and is expected to contribute positively to Mitrajaya group's future earnings,' it said.

PM to announce new, exciting ETP projects in next few months

KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak has given the assurance that the government will announce a slew of new major and exciting projects in the next few months, providing traction in implementing effectively Malaysia's Economic Transformation Programme.

Having announced 60 projects so far, Najib said he wants the plan to take off by focusing on the entry point projects, the big ticket items as well as high-impact projects and not just infrastructure projects.

"It's the whole works, including high investment projects that will create high-value to the economy and jobs," which was key for the remainder of the government's current term, he said during an interview with Bloomberg television channel at his office in Putrajaya on Friday, April 1.

During the wide-ranging interview on his achievements after two years in office with Bloomberg journalists Robyn Meredith and Barry Porter on the economy, he said Malaysia's clear aim was to become a fully-developed nation by 2020.

Among other things, the interview touched on inflation, subsidies, Malaysia's nuclear ambition, its leadership in Islamic finance, the upcoming Sarawak elections and possible date for the general election, the Bumiputera affirmative policy, Kuala Lumpur's involvement in the Trans-Pacific Partnership and impact of China's Yuan.

Asked whether Malaysia would be able to meet Bank Negara Malaysia's Gross Domestic Product target of between five and six per cent this year, he said: "I believe we are still on track to achieving 6.0% with positive government intervention in the form of entry point projects and massive underground mass urban transport system for Greater Kuala Lumpur.

"That will create multiplier effects (and) those are the kind of investments that will make us achieve 6.0 per cent growth this year," he said.

As to financing the mass rail transit project, he said: "We can finance it in a creative way so that it will not be too taxing in terms of our development expenditure.

"So, it is, in a way, a project that has got the viability because the returns are good and will create a multiplier effect," he said.

Najib also said the government might sell bonds to finance the project which was within the government's means domestically.

"We have huge savings in Malaysia, so those are sources of investments or borrowings we can use to finance it,' he said.

The Prime Minister dismissed notions that the government would refrain from raising petrol prices, saying however that there should be some flexibility in the way subsidies are rationalised.

"We do not want rising prices in Malaysia to be a major burden for the people," he said, adding the government would continue to keep a close watch on inflation which was "creeping up slightly" but was still below 3.0%.

On the possibility of pausing on subsidy cuts and doing more later, Najib said:"That is what we are looking at now in total, because we have to see how much more subsidies we can bear.

"At the same time, we are committed to reducing the deficit. The deficit cannot go up. It's at 5.6% now. We hope to bring it down to 5.4% and eventually to around 3% to 4%.

"But that's a medium-term goal. At the same time, we have to look in terms of our revenue. How do we increase our revenue as a government? We are looking at some of the challenges we need to do between domestic requirement and the need to give that confidence in terms of our macro management," he said.

On whether this was a change from the government's earlier deficit target of 2.8% by 2015, he said: "Its about 3% to 4%" in the next five years or so.

Najib said Malaysia was committed towards reducing federal debt.

As to helping people cope with inflation, he said that domestically, the government was looking at the supply side, for instance, increasing the supply of chicken to bring down the prices, which, he said, might come down next month.

However, he said imported inflation or rising imported food prices were going to be a challenge for Malaysia.

"We are also looking at whether we can have shops selling at discounted prices to the people," he said.

Najib however cautioned that commodity price inflation was a global worry, not only for Malaysia, meaning Malaysia would "have to maintain subsidies at quite a high level, including petrol subsidies."

"I am also looking at new initiatives to help people who are facing the brunt of rising prices. We have not reached the maximum threshold yet, but there are some signs people are feeling the pinch of rising food prices.

"We have to look at the government package and as well as try to stimulate supply," said Najib.

Touching on the emergence of China's Yuan as a reserve currency and currency for trade settlement, he said: "We have to maintain the US dollar as the most important international reserve currency. The euro is also an important reserve currency, despite what's happened in Europe (and) we have confidence in the long-term stability of the euro currency."

Najib stressed that Malaysia has a very good relationship with China, particularly on the economic front, saying that "we can now settle trade between our countries in local currencies."

On whether Malaysian trade settlements in Yuan could double, he said that it was "very likely. I think it is a very positive step."

To questions in safeguarding against hot money flowing in and out of the country, Najib said the government was "monitoring this very, very closely."

"We do not like excessive volatility, whether it is in the stock market or in our currency. As long as there is steady growth based on strong fundamentals, that is what we are trying to achieve.

"So, it is going to be a combination of a very, very strict supervision of what's happening (and) if it gets overheated in any way, I think we will take the necessary steps," he said. - Bernama

Tenaga inks contract for 1,000MW Majung coal-fired power plant project

KUALA LUMPUR: TENAGA NASIONAL BHD []'s unit has inked an engineering, procurement and CONSTRUCTION [] agreement for the multi-billion-ringgit 1,000MW Manjung coal-fired power plant project with the consortium led by Alstom Power System SA.

Tenaga said on Friday, April 1 the new plant would be adjacent to the existing 3x700MW coal-fired power plant in Manjung.

'The contract price is US$810 million, 180 million euros and RM1.80 billion. The development of the project is for the period of four years on the basis of project finance. Payments to the consortium will be made in accordance with the progress of the project according to the agreed milestones,' Tenaga said.

The national power company said the agreement was between TNB Janamanjung Sdn Bhd and the consortium of Alstom Power System SA which would be responsible for the design, supply, installation, testing and commissioning of the power plant.

The consortium comprised of Alstom Power System SA, Alstom (Wuhan) Engineering & TECHNOLOGY [] Co. Ltd., Alstom Services Sdn. Bhd., China National Machinery Import & Export Corporation and CMC Machipex Sdn. Bhd. (the Consortium).

It said the new plant would utilise the supercritical boiler technology which is deemed to be cleaner than the conventional boiler technology.

The technology has been identified as one of the major measures that can be taken to help reduce carbon dioxide emissions. The project is expected to be completed and fully commissioned by March 2015, it said.

Tenaga said the major components of the project include the building structures and installation of one steam turbine, one supercritical boiler, coal handling equipment, ash handling equipment, water treatment system, air quality control system as well as waste water treatment system.

It added the project would potentially increase TNB group's net assets by about 17.28%.

''

SAM Engineering buys engine casing business for RM135m, delisting shelved

KUALA LUMPUR: SAM Engineering & Equipment (M) Bhd (formerly LKT INDUSTRIAL BHD []) is acquiring the assets and manufacturing business of engine casing, a division of Singapore Aerospace Manufacturing Pte Ltd for RM135 million in cash and loan stocks.

The proposed acquisition would interest investors after its major shareholder Singapore Precision Engineering Ltd (SPE) intends to retain the listing status of SAM Engineering and it would undertake a proposed rectification plan about its shareholding.

SAM Malaysia executive director and chief executive officer Jeffrey Goh said on Friday, April 1 the acquisition was part of its long-term strategy to grow the business and diversify the customer base beyond the current backend business.

He said the acquisition would our SAM Engineering at the forefront of the global aerospace industry while the casing business would be accretive to the revenue and earnings.

'More importantly, it (engine casing business) will help in balancing the volatility in our current business in the electronics and semiconductor industries over the long term. Moreover, the technologies that we will acquire through this transaction will also serve as platforms to expand our businesses to the manufacture of vacuum chambers for the semiconductor front-end, the LED and the solar industries,' he said.

Goh expected the transaction to be completed in the third quarter of 2011.

On Thursday, SAM Engineering said its major shareholder Singapore Precision Engineering Ltd (SPE) intends to retain the listing status of SAM Engineering and it would undertake a proposed rectification plan about its shareholding.

It said the company did not meet the requisite majority in number of shareholders voting in favour of the special resolution for the delisting at the EGM.

Under the plan, SPE would make a restricted offer for sale of 6.929 million SAM Malaysia shares, which had been acquired by SPE, to entities or persons who had previously accepted the offer'' at an offer price of RM2.10 per SAM Malaysia share.

If, following the proposed restricted offer for sale, SPE and its parties acting in concert still hold 90% or more of the issued and paid-up share capital of SAM Malaysia, SPE will place out such number of SAM Malaysia shares to investors to be identified, to ensure it holds less than 90% of the total equity interest in SAM Malaysia.

GLOBAL ECONOMY-Busy China, India factories keep inflation aloft

BEIJING/BANGALORE: Factories in China and India bumped up production in March as manufacturers drew in more new orders, keeping price pressures intact and making further monetary tightening necessary, Reuters reported on Friday, April 1.

Surveys of manufacturers in Asia's economic giants showed worries that high oil prices could scupper growth were unfounded for now, even though China's outlook was clouded by signs of disruptions to trade with crisis-stricken Japan.

In China, a pair of purchasing managers' indexes (PMI) showed factories were growing moderately rather than booming, and some economists said a further slowdown could be in store.

Yet few thought slackening production would slam the brakes on the world's fastest-growing major economy. Instead, they said it showed China was scoring some success in taming prices with its gradual monetary policy tightening.

"It's growing at a slow and steady speed as tighter monetary policy impacts," said Stephen Green, an economist at Standard Chartered in Shanghai.

"I'm not overly worried about growth. We need to hit inflation. That is the priority still," he said.

China's official purchasing managers' index (PMI), compiled by the government, rose to 53.4 in March from a six-month low of 52.2, slightly under a Reuters forecast for 54.

A separate survey published by HSBC showed the PMI steadying near seven-month lows at 51.8, from February's 51.7.

In India, the mood among manufacturers was more upbeat.

A survey by HSBC of around 500 firms showed the PMI held steady at a four-month high of 57.9 in March from February.

"Growth is not an immediate concern," Leif Eskesen, HSBC's chief economist for India & ASEAN said in reference to India.

"Output growth kept up the pace, and the inflow of new orders accelerated, holding promise of a continued strong momentum in output in the months ahead," he said.

''

PRICES STILL RISING

Indeed, the surveys suggested policymakers' main focus in months ahead will be on prices.

In China, while factory costs were shown to be rising at a slower pace, prices were climbing nonetheless.

The input prices sub-index, a measure of how much factories pay for raw materials and other intermediary goods, eased to 68.3 in March for the official PMI, from February's 70.1.

The HSBC survey showed factory inflation cooling to seven-month lows of 67.5, well down from 74.6 a month earlier. Yet the readings in both surveys remained well above the 50 point no-change level, showing costs were still climbing at a brisk pace.

Although the results hold out hope that Beijing is gaining a handle on inflation, it did not dispel expectations that China was not done yet with policy tightening.

Most analysts expect China to raise interest rates at least once more this year, by 25 basis points. A government researcher said on Friday the rate rise could happen as soon as this month. [ID:nL3E7F109O]

"Quantitative tightening is working. So as long as Beijing keeps tightening for another three to four months, inflation should start to slow meaningfully in the second half of 2011," said Qu Hongbin, HSBC's chief economist in China.

High oil prices and excess cash in the Chinese economy drove China's inflation to a 28-month high of 5.1 percent in November. Although it has since abated, many analysts expect prices to climb again in coming months.

In India, price pressures appeared to be more stubborn, despite eight interest rate increases in the past year.

The HSBC survey showed the input price index in March was at its highest since the poll was started in April 2005, driven by surging raw material and crude oil prices.

Economists fear supply bottlenecks and further gains in oil prices could push India's inflation further up from an annual reading of 8.3 percent in February.

"Manufacturers are facing ever steeper increases in input costs due to tight labour markets and rising material costs, which are increasingly being passed on to output prices," Eskesen said.

"This calls for further tightening of monetary policy to tame inflation pressures," he said.

India's central bank holds its next policy meeting on May 3.

''

JAPAN RAMIFICATIONS

Signs that Chinese manufacturers are feeling a pinch from their trade with Japan complicates the outlook for the world's second-largest economy.

For the first time, China said Japan's earthquake and nuclear disasters were starting to affect production. It said the electronics industry was feeling the squeeze of reduced supplies of parts and raw materials.

Analysts said that since Japan's outlook is still shrouded in uncertainty, it was hard to gauge the impact on China's factories.

"The length of (supply) disruption is important. Each component has an inventory and some components have alternative supplies," said Dong Tao, an economist at Credit Suisse in Hong Kong. "Maybe you will have to buy at a higher price but it's not like all the suppliers have disappeared."

Trade data over the past year shows China buys most of its imports from Japan and the European Union, with Japan slightly ahead in most cases.

In the first two months of the year, China bought $29.1 billion worth of goods from Japan. Data showed electronics and machinery parts accounted for 48 percent of these imports.

Electronics and machinery parts in turn make up 58 percent of all Chinese exports. - Reuters

Masterskill up on dividend plan, OSK Research sees FV at RM3.44

KUALA LUMPUR: Shares of Masterskill Education Group Bhd (MEGB) climbed 21 sen to RM2.13 in afternoon trade on Friday, April 1 as investment interest perked up on its proposed final dividend of 7.9 sen per share.

At 2.56pm, MEGB was up 21 sen to RM2.13 with 17.52 million shares done.

The FBM KLCI rose 3.99 points to 1,549.12. Turnover was 932.20 million shares valued at RM1.14 billion. There were 414 gainers, 335 losers and 261 stocks unchanged.

On Thursday, MEGB recommended a final single tier dividend for the financial year ended Dec 31, 2010 of 7.9 sen per ordinary share of 20 sen, payable on June 15.

OSK Research maintained its Trading Buy call at an unchanged fair value of RM3.44 at 12 times FY11 PER.

When it issued the report on Thursday, it said the stock was trading at an alluring FY11 PER of 6.4 times, the cheapest in its coverage, with dividend yield of more than 7% per annum. It was at RM1.84 on Thursday.

'With the stock's valuation at its trough, we believe that any further downside risks are unlikely and hence we see this as an opportune time to accumulate. Its key re-rating catalysts are more affirmative indications in relation to PTPTN's loan allocation and the potential approval of courses at its new Kuching campus,' said OSK Research.

Equine buys 126 acres of Batu Kawan land from Penang Devt Corp

KUALA LUMPUR: Abad Naluri Sdn Bhd is buying 126.04 acres of land in Batu Kawan, Penang from the Penang Development Corp (PDC) for RM16.75 million cash consideration.

EQUINE CAPITAL BHD [] said on Friday, April 1, that Abad Naluri would then nominate Penaga Pesona Sdn Bhd ' a unit of Equine Capital ' to accept the transfer of the land upon the acquisition.

Equine Capital said this had been agreed upon under a share sale and purchase agreement on Feb 12, 2007 where Equine Capital acquire Penaga Pesona for RM12 million from Abad Naluri.

Abad Naluri's investment in Penaga Pesona was RM250,000 and the latter was then the owner of 450 acres of land in Batu Kawan. In October 2008, Equine had disposed of its 25% stake in Abad Naluri.

Equine said the 126.04 acres of leasehold land which would be acquired from PDC had a tenure of 99 years. The site would be used for residential and commercial PROPERTIES [] and the gross development value at'' RM293 million. The site is four km from the Second Penang Bridge on the mainland at Batu Kawan.

Penaga Pesona holds two parcels of land of 178.62 acres in Crescentia Park, Batu Kawan which is contiguous to the existing land.

Equine Capital said the purchase would be financed by its own funds and borrowings.

Banks, blue chips extend FBM KLCI's gains at noon

KUALA LUMPUR: The FBM KLCI stayed in positive territory at the mid-day break on Friday, April 1 in line with its key regional peers, as banking stocks and key blue chips lifted the local bourse.

Asian stocks advanced ahead of employment data to be released later Friday in the US.

Another month of solid US hiring, expected in the 200,000 area, should reinforce expectations of further global economic expansion but also of an accelerated shift in policy focus among central bankers to stem inflationary pressure, according to Reuters.

At 12.30pm, the FBM KLCI was up 3.80 points to 1,548.93.Volume was 786.32 million shares valued at RM902.97 million. Gainers edged losers by 370 to 334, while 277 counters traded unchanged.

The ringgit weakened 0.02% to 3.0260 versus the US dollar; crude palm oil for the third month delivery rose RM32 per tonne to RM3,342, crude oil gained 36 cents per barrel to US$107.08 while gold added US$1.15 to US$1,433.45.

At the regional markets, Japan's Nikkei 225 rose 0.11% to 9,765.73, Hong Kong's Hang Seng Index added 0.16% to 23,565.84, the Shanghai Composite Index was up 0.24% to 2,935.28, South Korea's Kospi rose 0.32% to 2,113.48 and Singapore's Straits Times Index gained 0.27% to 3,114.26.

However, Taiwan's Taiex slipped 0.16% to 8,669.30.

Banking stocks were among the major gainers this morning, with CIMB up 13 sen to RM8.33, HLFG eight sen to RM9.08, RHB Capital seven sen to RM8.65, Hong Leong Bank five'' sen to RM9.90, Maybank four sen to RM9 and AMMB one sen to RM6.50.

OSK Research said its large cap banking top picks are CIMB (BUY, FV: RM9.77) and Maybank (BUY, FV: RM10.07), while its mid-cap pick is RHB Capital (BUY, FV: RM9.56).

It said that February loans growth moderated to 12.2% y-o-y versus 13.1% in January, mainly due to slower growth in the business sector (Feb: 13% vs Jan: 14.9%) in line with easing export growth.

'Although overall industry loans growth softened to 12.2%, it is still significantly higher YTD against our full-year estimate of 9.5% and the industry's 9%- 11% estimated range. The risk weighted capital and core capital ratios were maintained at 14.3% and 12.6% respectively," it said.

Genting Malaysia rose 11 sen to RM3.79, Petronas Chemicals 13 sen to RM7.37, Nestle 48 sen to RM47.28, Sapura Resources 21 sen to RM1.06, Genting PLANTATION []s 18 sen to RM8.18, LPI Capital 14 sen to RM13.86 and Dialog added 13 sen to RM2.45.

DBE Gurney was the most actively traded counter with 42.5 million shares done. The stock added half a sen to 13 sen.

Other actives included Talam, Perisai, Olympia, Axiata, Karambunai, Masterskill and IRCB.

Losersincluded Petronas Dagangan, Golsta, Genting, Paos, Kotra, Tenaga, Kwantas and AIRB.

PW Consolidated emerges as substantial shareholder in DBE Gurney

KUALA LUMPUR: Penang-based PW Consolidated has emerged as a substantial shareholder in DBE Gurney Resources Bhd with a 6.68% stake.

A filing with Bursa Malaysia on Friday, April 1 showed it received 45 million shares in the poultry-based company as settlement of debts.

DBE rose 0.5 sen to 13 sen with 42.49 million shares done at midday.

Toyota says NE Japan disaster to hit earnings, output

TOYOTA CITY, Japan: Toyota Motor Corp President Akio Toyoda said on Friday that the devastating earthquake and tsunami in northeast Japan would hurt the company's earnings in the business year that just started, although he gave no details.

He reiterated that it remained uncertain when the company would resume full production after the March 11 disaster disrupted its supply chains, but emphasised that priority should be placed on recovery in the country's devastated northeast.

Toyoda was speaking to reporters after a ceremony at the company's headquarters to welcome new hires on their first day of work.

Toyota has stopped producing vehicles at all but two of the 18 group factories that build Toyota and Lexus cars in Japan. At those two factories it is only assembling a limited number of three hybrid models at a reduced rate. - Reuters

FBM KLCI kicks off 2Q on positive note

KUALA LUMPUR: The FBM KLCI extended its gains to start off the second quarter of 2011 on a positive note, as most key regional markets also opened slightly higher.

At 10am, the FBM KLCI was up 3.65 points to 1,548.78.

Gainers led losers by 260 to 169, while 251 counters traded unchanged. Volume was 339.63 million shares valued at RM280.67 million.

Asian shares rose on Friday, looking to extend three straight quarters of gains, while the dollar strengthened against most major currencies after hawkish comments from a senior US Federal Reserve official, according to Reuters.

Oil also kicked off the new quarter in positive fashion with US prices climbing after closing at their highest in 2-1/2 years on Thursday against the backdrop of continued fighting in Libya and unrest in the Middle East, it said.

At the regional markets, Hong Kong's Hang Seng Index rose 0.33% to 23,606.21, Singapore's Straits Times Index added 0.26% to 3,113.78, the Shanghai Composite Index edged up 0.02% to 2,928.82 and South Korea's Kospi was up 0.01% to 2,106.94.

Meanwhile, Japan's Nikkei 225 fell 0.11% to 9,744.34 while Taiwan's Taiex shed 0.17% to 8,668.18.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said ''that due to Wall Street's marginally weaker overnight close, the FBM KLCI could be in a benign mode today, with some pre-weekend profit taking activities.

'As the market re-visited and held above 1,474 recently, the FBM KLCI may now test the crucial areas of 1,558 and 1,576,' he said in a note to clients on April 1.

BIMB Securities Research meanwhile said that Wall Street closed lower hammered by higher crude oil price and disappointing first time claim on unemployment benefit.

It said crude oil rose to USD106.72 due to the negative development in Libya while first time claim on unemployment benefit dipped only by 6,000, lower than economists had expected.

Also, four of Ireland's major banks are on the brink of collapse and need 24 billion Euros to stay afloat.

'Expect some profit taking activity at the local market today as a result. Our year-end target for FBM KLCI is 1,600 points,' it said today.

Among the major gainers at mid-morning, Nestle rose 50 sen to RM47.30, Sapura Resources 22 sen to RM1.07, LPI Capital 18 sen to RM13.90, CIMB 15 sen to RM8.35, TSM 10 to RM1.92, while Genting Malaysia and Ta Ann gained nine sen each to RM3.77 and RM6.77.

DBE Gurney was the most actively traded counter with 29.8 million shares done. The stock added half a sen to 13 sen.

Other actives included Talam, Perisai, Olympia, IRCB, Kurnia Asia and MAA.

Meanwhile, decliners in early trade included Petronas Dagangan, Genting, Kotra, Kwantas, Boustead, Supermax, Utusan and Ekovest.

Adventa slips in early trade

KUALA LUMPUR: ADVENTA BHD [] shares declined in early trade on Friday, April 1 after its net profit for the first quarter ended Jan 31, 2011 fell by 55.6% to RM4.05 million from RM9.35 million a year earlier due to historical high material cost and the price adjustment lag based on previous month/previous quarter cost index.

At 9.15am, Adventa was down two sen to RM2.38 with 59,000 shares done.

Revenue for the quarter however rose to RM106.19 million from RM76.64 million in 2010. Earnings per share was 2.65 sen while net assets per share was RM1.42.

Reviewing its performance, Adventa said on Thursday, March 31 that the current year challenge was to manage the changing preference and buying pattern of the market.

RHB Research retains market perform on Glomac, ups FV to RM2.03

KUALA LUMPUR: RHB Research Institute said Glomac's share price increased by about 6%-7% from last week in anticipation of the good set of results.

The research house said on Friday, April 1 that as it had previously underestimated the GDV for the newly acquired Puchong land (actual GDV is RM800 million), its indicative fair value is raised to RM2.03 (from RM1.93) based on an unchanged 25% discount to its revised RNAV.

'Given an upside of 13%, we maintain our Market Perform rating on the stock. The stock would be appealing to investors who are looking for yields,' it said.

RHB Research said Glomac's 3QFY11 net profit of RM17.3m (+55.2% yoy; +4% qoq) beat our expectation by 9% and consensus by 12%, on an annualised basis.

Turnover in 3QFY11 was more than double of the same period last year, mainly contributed by Glomac Tower, Glomac Damansara, Glomac Cyberjaya, Bandar Saujana Utama and Seri Bangi. 9MFY11 revenue and net profit recorded an impressive growth of 108% and 69.5%, respectively. A 4.5 sen interim dividend was declared for the quarter.

HLIB Research maintains TP for Time dotCom at 95 sen

KUALA LUMPUR: Hong Leong Investment Bank (HLIB) Research said existing and potential customers of Astro and Time dotCom (TdC) in multi-dwelling units or commercial buildings will be offered an Astro IPTV solution, bundled with TdC's fibre broadband, value added services and voice telephony services (Triple Play).

It said on Friday, April 1 that Astro will undertake the marketing of the service while TdC will deliver and manage the services over their fiber network, with the agreement be effective retrospectively from Dec 20, 2010 and will continue for a term of 10 years from April 1, 2011.

'While no minimum contract size was revealed, the agreement is expected to contribute positively to TdC's earnings moving forward as TDC would be able to leverage on Astro's existing subscriber base in order to facilitate its expansion into the retail market.

'At the current price, Time dC is trading at an estimated P/E of 28.0x and 22.5x for FY11 and FY12 respectively. We maintain our target price of 95 sen based on SOP, pending the outcome of the proposed acquisitions and pending further details on the bundled plans with Astro,' it said.

Sapura up after 4Q net profit surges to RM21.89m

KUALA LUMPUR: SAPURA RESOURCES BHD [] shares jumped on Friday, April 1 after it posted net profit RM21.89 million in the fourth quarter ended Jan 31, 2011 compared to net loss RM397,000 a year ago, mainly due to realisation of a gain from disposal of a freehold land, profit from its education business and write-back of impairment in an associate.

At 9.30am, Sapura was up 18 sen to RM1.03 with 4.2 million shares traded.

Revenue for the quarter fell to RM30.7 million from RM65.98 million a year ago. Earnings per share was 15.68 sen, while net assets per share was RM1.27.

For the financial year ended Jan 31, Sapura's net profit surged to RM38.87 million from RM6.04 million, on the back of revenue RM200.86 million.

On its prospects, Sapura said on Thursday, March 31 that following the property disposal and completion of its divestment of its 51% equity interest in APIIT and UCTI, it would be involved in the education business via its 49% interest in APIIT and UCTI.

The company said it expects to record an overall satisfactory result for the financial year ending Jan 31, 2012

CIMB rises on positive outlook for banks

KUALA LUMPUR: CIMB Group Holdings Bhd shares advanced on Friday, April 1 as analysts viewed there was still more upside for the banking group.

At 9.45am, CIMB was up 16 sen to RM8.36 with 1.38 million shares done.

OSK Research said its large cap banking top picks are CIMB (BUY, FV: RM9.77) and Maybank (BUY, FV: RM10.07), while its mid-cap pick is RHB Capital (BUY, FV: RM9.56).

It said on Friday, April 1 that February loans growth moderated to 12.2% y-o-y versus 13.1% in January, mainly due to slower growth in the business sector (Feb: 13% vs Jan: 14.9%) in line with easing export growth.

'Although overall industry loans growth softened to 12.2%, it is still significantly higher YTD against our full-year estimate of 9.5% and the industry's 9%- 11% estimated range.

'The risk weighted capital and core capital ratios were maintained at 14.3% and 12.6% respectively,' it said.

Meanwhile,CIMB Bank and CIMB Islamic Bank said they would maintain their base lending rate and base financing rate at 6.3%. The two banks backtracked on their decisions in less than 24 hours after having announced a rise of five basis points on lending rates on Wednesday.

Berkshire's Sokol defiant on personal profit-seeking

WASHINGTON/NEW YORK: Former Berkshire Hathaway executive David Sokol's trading in Lubrizol shares as he pitched the company to Warren Buffett is a blurring of personal and professional profit-seeking that could attract a hard look from regulators.

Sokol presented a steadfast defense on Thursday, March 31.

He spent more than 30 minutes on CNBC to say he had no inside information, did nothing unlawful or unethical, and his resignation had nothing to do with his trading.

"I didn't know anything others don't know," Sokol said.

Some experts, however, say he did know that he was pushing the "Oracle of Omaha" to buy a company he had a personal stake in -- something that could cause the shares to skyrocket if it leaked to the public.

Also, he may have had a duty to not take personal advantage of confidential information he gained as a result of his employment with Berkshire -- a key element of insider trading cases.

"He has got an insider-trading problem almost certainly," said Gordon Smith, a law professor at Brigham Young University. "This is a textbook example."

The SEC has not indicated whether it plans to investigate Sokol for insider trading, and Sokol himself said on Thursday during the interview that he has not been contacted by the agency. SEC spokesman John Nester declined comment.

Sokol was seen by many investors as the most likely successor to Berkshire Hathaway's iconic CEO, but Sokol said he did not aspire to the job and wanted to build his own "mini-Berkshire" instead.

Buffett released a letter on Wednesday disclosing that Sokol actively traded in a substantial amount of Lubrizol shares before and while urging Buffett to acquire the company, which Buffett did for $9 billion this month.

Sokol appeared to have made a profit of at least $2.98 million on his investment.

Lubrizol's chief executive, in a regulatory filing on Thursday, said the news would have no effect on the deal and that Lubrizol hoped to close the sale as quickly as possible.

COULD BE GRAY AREA

Sokol's move to purchase shares knowing that Lubrizol could be a viable acquisition target could constitute a breach of fiduciary duty to Berkshire because he acquired the information in the course of his employment.

This may be a gray area because Sokol said on Thursday that he thought it was an outside chance that Berkshire would buy Lubrizol, despite his eventual success in persuading Buffett.

"If he knew that Berkshire is truly interested in the company, then he could be misappropriating information from Berkshire and that could amount to insider trading," said John Coffee, a professor of law at Columbia University.

Coffee said Sokol was reckless, but said it's far from a slam-dunk insider trading case.

Robert Thompson, a law professor at Georgetown University, said the fact that Sokol disclosed the stock holdings to Buffett at the time he pitched the deal could also be his saving grace.

"If you disclosed it, you haven't committed a misrepresentation," he said. "You have told the truth."

Potential SEC scrutiny may not be Berkshire's only headache. A well-known securities class action lawyer said on Thursday that institutional investors have already been in touch on the disclosures.

"The timing and the facts surrounding the transaction have justifiably raised an interest and concerns from three of my clients," said Darren Robbins, a partner in the firm Robbins Geller Rudman & Dowd.

SOKOL CONCEDES APPEARANCE OF AN ISSUE

Sokol, in his interview on CNBC, spoke of broader Berkshire practices that could fuel lawsuits or regulatory scrutiny.

He said other Berkshire executives have in the past held stock in companies they then identified for investment or acquisition, citing the example of Berkshire Vice Chairman Charlie Munger owning a stake in Chinese car maker BYD before suggesting it for an investment.

Nonetheless, Sokol, the chairman of Berkshire units MidAmerican Energy and NetJets said he understood how the sequence of events looked, even if he did nothing wrong.

"I can understand the appearance of an issue ... That's why we made it public," he said.

Sokol resigned March 28. He said Buffett did not try to talk him out of resigning. Buffett's letter included an excerpt of Sokol's letter, but Sokol's full letter was not public.

Berkshire's Class B shares, which are more heavily traded than its Class A stock, fell 2.1 percent to $83.63. - Reuters

Japan business mood edges up, quake impact looms-BOJ tankan

TOKYO: Japanese manufacturers' business sentiment improved slightly in the three months to March, the Bank of Japan's closely watched tankan survey showed, but analysts anticipate a downturn in confidence this quarter following last month's devastating earthquake and tsunami and a subsequent nuclear safety crisis.

Policymakers and analysts warn that widespread power outages and supply chain disruptions from the March 11 quake will severely damage factory output and delay the economy's return to a moderate recovery.

The BOJ's quarterly tankan survey showed the headline index for big manufacturers' sentiment improved to plus 6 in March from plus 5 in December, compared with a median market forecast of plus 7.

But 72 percent of replies for the survey came in before the earthquake, which means it did not much reflect the impact of the magnitude 9.0 earthquake and tsunami that flattened coastal towns and cities in the country's northeast, killed more than 11,000 and triggered the world's worst atomic crisis in 25 years.

The BOJ will release reference data for pre-quake and post-quake sentiment at 8:50 a.m. Monday (2350GMT Sunday).

"Today's data alone won't be of much use so the reference data next week was something that was needed," said Takeshi Minami, chief economist at Norinchukin Research Institute in Tokyo.

"We're focusing on when companies see reCONSTRUCTION [] demand picking up. But we can assume business conditions will be very severe ahead."

The index for June was seen at plus 2, showing that companies expected business conditions to worsen over the next three months .

The sentiment indexes are derived by subtracting the percentage of respondents who say conditions are poor from those who say they are good. Negative readings mean pessimists outnumber optimists.

HDBSVR sees slow start for April

KUALA LUMPUR: Hwang DBS Vickers Research said in the absence of fresh market stimulating news on Friday, April 1, regional markets may see a slow start in the second quarter of the year.

It said this comes as major equity indices on Wall Street were mixed last night (closing between -0.3% and +0.2%) while crude oil prices jumped 2.3% to US$106.72 per barrel.

HDBSVR said as for Malaysia, following a cumulative gain of 30.9-points or 2.0% over the past three days, the benchmark FBM KLCI could pull back slightly on Friday.

The key market barometer may back off from the immediate resistance threshold of 1,550 while the first support level currently stands at 1,530.

'Still, selective buying interest from investors will probably prevail in two counters that are reportedly involved in possible mergers and acquisition talks.

'According to the local media: (a) Genting Malaysia is said to have won the bid to acquire Tanjong's number forecasts operation for RM2b; and (b) CCM Duopharma Biotech may see the emergence of US-based GlaxoSmithKline as its new controlling shareholder,' it said.

OSK Research: Adventa 1Q results below expectations

KUALA LUMPUR: OSK Research said Adventa's 1QFY11 results were below expectations, mainly due to the continuous rise in the latex price.

It said on Friday, April 1 this had affected the company's ability to pass on 100% of the cost increase to its customers in a timely manner.

'We are downgrading our FY11-12 earnings by 20%-26% respectively. Hence, our target price is also lowered to RM3.04, in line with our earnings downgrade. Maintain Buy,' it said.

Adventa's net profit for the first quarter ended Jan 31, 2011 fell by 55.6% to RM4.05 million from RM9.35 million a year earlier due to historical high material cost and the price adjustment lag based on previous month/previous quarter cost index.

Revenue for the quarter however rose to RM106.19 million from RM76.64 million in 2010. Earnings per share were 2.65 sen while net assets per share was RM1.42.

HDBSVR ups Hong Leong Bank TP to RM11.80

KUALA LUMPUR: Hwang DBS Vickers Research has raised Hong Leong Bank's FY11-13F EPS by 3%-5% and upped the Target Price to RM11.80.

It said on Friday, April 1 that on its own, Hong Leong Bank's earnings are expected to grow at three-year CAGR (FY10-13) of 16%, supported by 12%-15% loan growth.

'It could leverage on its low loan-to-deposit ratio (57% vs industry average of 82%) to further drive loan growth. Its robust asset quality (2.08% gross NPL ratio vs industry average of 3.59%) means lower risk of NPLs.

'Non-interest income, largely from transactional banking and treasury business, could also support earnings given mounting competitive pressure on NIM,' it said.

HDBSVR believed the bank's strong credit cards franchise can overcome the challenge of tighter rules imposed by BNM recently.

It added Hong Leong Bank's regional strength continues to be driven by 20%-owned Bank of Chengdu, which it expects to grow 20% yoy over FY11-13 and contribute 12% to group pre-tax profit.

''

Wall St ends a strong quarter optimistic on payrolls

NEW YORK: U.S. stocks ended a solid quarter with the barest of moves on Thursday, March 31, as investors looked ahead to Friday's U.S. jobs report to provide a catalyst to push indexes to new highs for the year.

After gaining 5.4 percent in the first quarter, the benchmark S&P 500 hovered near 1,330, a level the index has been unable to break despite several attempts in the past month. A strong payrolls number may tip it over and technical momentum could kick in, lifting stocks further.

"The market has stalled around this area before," said Jim Paulsen, chief investment officer at Wells Capital Management in Minneapolis. "Unless we get a bad number tomorrow, this market is going to make a run at the year highs."

Stocks were resilient through the first quarter, hanging tough despite Japan's earthquake and nuclear crisis and a series of uprisings in North Africa and the Middle East.

Friday's jobs report would confirm investor optimism that a strong U.S. recovery can overcome the global trouble spots.

In March, the Dow industrials outperformed both the S&P 500 and Nasdaq, indicating preference for stronger companies as overseas concerns lingered.

Initial claims for unemployment benefits last week showed the trend of labor market improvement remains intact, but at a slow pace.

The data precedes Friday's closely watched employment report from the Labor Department, which is expected to show the U.S. economy added 190,000 jobs in March.

Daily volume was light again, continuing the week's pattern. About 6.9 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, below last year's estimated daily average of 8.47 billion.

The Dow Jones industrial average dropped 30.88 points, or 0.25 percent, to 12,319.73. The Standard & Poor's 500 dipped 2.43 points, or 0.18 percent, to 1,325.83. The Nasdaq Composite edged up 4.28 points, or 0.15 percent, to 2,781.07.

For the month, the Dow edged up 0.76 percent, the S&P shed 0.1 percent and Nasdaq dipped 0.04 percent.

That trend also proved true for the entire first quarter, with the Dow rising 6.4 percent, compared with the S&P's gain of 5.4 percent and the Nasdaq's advance of 4.8 percent.

Berkshire Hathaway's class B shares fell 2.1 percent to $83.63 a day after the resignation of David Sokol, the man widely seen as the leading successor to Warren Buffett to run Berkshire. Sokol resigned after Buffett revealed that Sokol had bought shares in chemical company Lubrizol Corp before pushing Buffett to acquire it.

In an interview on CNBC, Sokol said he did nothing wrong in buying the shares. - Reuters

#Stocks to watch:* CIMB, Time dotCom, Glomac, MBSB

KUALA LUMPUR: After a firmer end to the first quarter, stocks on Bursa Malaysia could be rangebound on Friday, April 1 as investors assess the outlook for the second quarter where most of the issues of the Mid-east crisis and high oil prices are still lingering.

On Wall Street, the Dow Jones industrial average dropped 30.88 points, or 0.25 percent, to 12,319.73. The Standard & Poor's 500 dipped 2.43 points, or 0.18 percent, to 1,325.83. The Nasdaq Composite edged up 4.28 points, or 0.15 percent, to 2,781.07.

Reuters reported U.S. stocks ended a solid quarter with the barest of moves on Thursday, March 31, as investors looked ahead to Friday's U.S. jobs report to provide a catalyst to push indexes to new highs for the year.

After gaining 5.4 percent in the first quarter, the benchmark S&P 500 hovered near 1,330, a level the index has been unable to break despite several attempts in the past month. A strong payrolls number may tip it over and technical momentum could kick in, lifting stocks further.

Among the stocks to watch on Bursa Malaysia are CIMB Banking Group, Time dotCom, GLOMAC BHD [] and MALAYSIA BUILDING SOCIETY BHD [] (MBSB).

CIMB Bank and CIMB Islamic Bank will maintain their base lending rate and base financing rate at 6.3%. The two banks backtracked on their decisions in less than 24 hours after having announced a rise of five basis points on lending rates on Wednesday.

TIME DOTCOM BHD [] is teaming up with Measat Broadcast Network Systems Sdn Bhd (MBNS) to provide IPTV and broadband services across the Klang Valley and Penang., TT dotCom Sdn Bhd (TTdC) had signed a collaboration agreement with MBNS, which takes effect from Dec 20, 2010 and continue for 10 years from April 1.

The collaboration agreement supersedes and replaces the principal terms of collaboration signed by the parties on Dec 20, 2010.

Glomac's net profit for the third quarter ended Jan 31, 2011 rose 55.2% to RM16.52 million from RM10.65 million a year earlier, mainly due to stronger contribution from higher margin projects such as Glomac Tower, Glomac Damansara and Glomac Cyberjaya.

Revenue for the quarter surged 124% to RM176.53 million from RM78.76 million in 2010. Earnings per share were 5.65 sen, while net assets per share was RM2.01. Glomac proposed an interim dividend of 4.5 sen per share.

For the nine months ended Jan 31, Glomac's net profit rose to RM47.96 million from RM28.29 million a year ago, on the back of revenue RM443.74 million.

There has been no indication from the Employees Provident Fund (EPF) that it will pare down its stake in MBSB, said its CEO Datuk Ahmad Zaini Othman. MBSB targets to grow its personal loans to account for 50% of its overall loan portfolio from about 30% presently and this should translate to an additional RM5 billion in fresh disbursements.

Adventa 1Q net profit dips 55.6% to RM4.05m on high latex cost

KUALA LUMPUR: ADVENTA BHD [] net profit for the first quarter ended Jan 31, 2011 fell by 55.6% to RM4.05 million from RM9.35 million a year earlier due to historical high material cost and the price adjustment lag based on previous month/previous quarter cost index.

Revenue for the quarter however rose to RM106.19 million from RM76.64 million in 2010. Earnings per share was 2.65 sen while net assets per share was RM1.42.

Reviewing its performance, Adventa said on Thursday, March 31 that the current year challenge was to manage the changing preference and buying pattern of the market.

It said many latex exam glove buyers had moved to switching part or most of their purchases to the cheaper Nitrile gloves, adding that those that remain were finding it more attractive to buy powder free versions than the classic powdered glove.

It said the trend was stressing out equipment compatibility, and if latex prices remain high, the possibility of latex exam gloves going out of favour was real and may happen sooner than later.

'The group is focused on meeting these challenges and adapting resources,' it said.

On the surgical glove business, Adventa said the change over to synthetics was not happening yet and orders remained robust for the forward months.

This sector would not be affected by the high material price in terms of usage, it said.

A new range of products to be launched in Q3 will open up new markets sectors in growth countries, it said.

Meanwhile, Adventa said it does not see any negative impacts from the Japanese Tsunami disaster.

With the current Middle East turmoil, the company was taking several steps to assist the business partners in those regions.

'On a short term period, we expect a slight dip in sales with the uncertainty of the political situation weighing down on business confidence.

'However the group expects healthcare spending to increase rather than shrink as a result of the changes,' it said.

Glomac 3Q net profit up 55% to RM16.5m, proposes 4.5c interim dividend

KUALA LUMPUR: GLOMAC BHD [] net profit for the third quarter ended Jan 31, 2011 rose 55.2% to RM16.52 million from RM10.65 million a year earlier, mainly due to stronger contribution from higher margin projects such as Glomac Tower, Glomac Damansara and Glomac Cyberjaya.

Revenue for the quarter surged 124% to RM176.53 million from RM78.76 million in 2010. Earnings per share was 5.65 sen, while net assets per share was RM2.01.

Glomac proposed an interim dividend of 4.5 sen per share.

For the nine months ended Jan 31, Glomac's net profit rose to RM47.96 million from RM28.29 million a year ago, on the back of revenue RM443.74 milion.

In a statement Thursday, March 31, Glomac group executive chairman Tan Sri F.D.Mansor said the company's cumulated new sales of RM680 million in the last two financial years was translating into record profits for this year.

'More importantly, new sales have continued to be encouraging. The property market remains buoyant, and our new launches have been well received,' he said.

He said the recently launched Tower One of the RM285 million Glomac Damansara

Residences had achieved a take-up rate of close to 70% to date.

Tower Two of the 26-storey condominium project in Glomac Damansara has just been released for registration, he said.

Earlier launches in Glomac Damansara included shop offices and an office tower, both of which were fully sold for RM225 million, he said.

'Glomac's prospects have never been brighter. We have a strong pipeline of exciting and market-driven new commercial and residential projects for launch,' he said.

F.D. Mansor said Glomac's total gross development value had increased from RM2.5 billion to RM3.3 billion with the recent acquisition to purchase 200 acres of land in the prime commercial hub of Puchong for RM77 million.

Out of this RM3.3 billion, more than RM1 billion worth of projects were ready for launch over the next 2 years, and would sustain its sales momentum going forward, he said.

Sapura 4Q net profit rises to RM21.89m

KUALA LUMPUR: ''SAPURA RESOURCES BHD [] posted net profit RM21.89 million in the fourth quarter ended Jan 31, 2011 compared to net loss RM397,000 a year ago, mainly due to realisation of a gain from disposal of a freehold land, profit from its education business and write-back of impairment in an associate.

Revenue for the quarter fell to RM30.7 million from RM65.98 million a year ago. Earnings per share was 15.68 sen, while net assets per share was RM1.27.

For the financial year ended Jan 31, Sapura's net profit surged to RM38.87 million from RM6.04 million, on the back of revenue RM200.86 million.

On its prospects, Sapura said on Thursday, March 31 that following the property disposal and completion of its divestment of its 51% equity interest in APIIT and UCTI, it would be involved in the education business via its 49% interest in APIIT and UCTI.

The company said it expects to record an overall satisfactory result for the financial year ending Jan 31, 2012.

Time dotCom, Measat to provide IPTV, broadband in Klang Valley, Ipoh

KUALA LUMPUR: TIME DOTCOM BHD [] is teaming up with Measat Broadcast Network Systems Sdn Bhd (MBNS) to provide IPTV and broadband services across the Klang Valley and Penang.

TdC said on Thursday, March 31 that its unit, TT dotCom Sdn Bhd (TTdC) had signed a collaboration agreement with MBNS, which takes effect from Dec 20, 2010 and continue for 10 years from April 1.

The collaboration agreement supersedes and replaces the principal terms of collaboration signed by the parties on Dec 20, 2010.

'Potential and existing residential customers of TTdC and/or''MBNS in apartment blocks, multi-dwelling units or commercial buildings specified in the collaboration agreement will be offered an Astro IPTV solution, bundled with Time Fibre broadband, broadband value added services and voice telephony services,' it said.

MBNS shall be responsible for marketing the'''Triple Play'''which shall be branded as''Astro B.yond IPTV and accompanied with 'Powered by TIME 100% Fibre Optics' logo.

As for TTdC, it will manage the services on TIME's 100% pure fibre optics network.

'The collaboration with''MBNS will allow TTdC to acquire customers at a faster rate in the target areas, and leverage on the strengths of TIME's 100% Pure Fibre Optics network. Bundling Astro B.yond IPTV''service with TIME Fibre Broadband allows both parties to deliver best of breed services to the end customer.

'As a result, TIME's wholesale business is further strengthened via working with an anchor''collaborator such as MBNS,' it said.

''

Handal 60m rights shares oversubscribed by 76.26pct

KUALA LUMPUR: Handal Resources Bhd's cash call involving a rights issue of 60 million shares at 52 sen each with 60 million free warrants were oversubscribed by 76.26%.

It said on Thursday, March 31 it received applications for 105.76 million new rights shares, or an excess of 45.76 million shares at the close of acceptance and payment on March 25.

Handal's rights issue was on the basis of two rights shares and two free warrants for every three existing shares. Together with the rights issue, Handal also made a bonus issue of 10 million shares on the basis of one bonus share for every six right shares subscribed.

Managing director and CEO Mallek Rizal Mohsin said the oversubscription of the rights issues was very encouraging as it underscored the shareholders' endorsement of Handal's plans that required this cash call which raised RM30 million.

'We are now on track with our investment which will see our expansion plans in place', he said.

Handal is an offshore crane manufacturing and service provider specialising in the oil and gas industry.

#Flash* CIMB Bank, CIMB Islamic Bank maintain BLR, BFR at 6.3pct

KUALA LUMPUR: CIMB Bank and CIMB Islamic Bank will maintain their base lending rate and base financing rate at 6.3%.

CIMB Group said on Thursday, March 31 that the decision was made after further deliberations.

They then decided to revise their earlier decision to raise the BLR and BFR to 6.35% effective April 4.

Bank Negara: Net financing to private sector rose by RM13.4b

KUALA LUMPUR: Bank Negara Malaysia said net financing to the private sector increased by RM13.4 billion in February on a month-on-month basis, driven by higher private debt securities (PDS) issuances.

It said on Thursday, March 31 that PDS issuances rose due to several large issuances mainly for refinancing and working capital.

'Loans outstanding and other major loan indicators, however, moderated compared to the previous month as there were fewer working days due to the Chinese New Year holidays,' it said in its monthly Monetary and Financial Developments report for February.

BNM said broad money (M3) expanded at a more moderate annual rate of 7.9% in February.

During the month, the expansionary effects of higher credit extension by the banking system to the private sector and net foreign inflows were offset by the fund raising activities of the government.

Narrow money (M1) also expanded at a more moderate pace in February due to the return of currency to the banking system after the Chinese New Year festivities.

BNM said the banking system remained well-capitalised, with the risk-weighted capital ratio (RWCR) and core capital ratio (CCR) at 14.3% and 12.6% respectively.

The level of net impaired loans remained stable, accounting for 2.3% of net loans. Loan loss coverage was sustained at 90.5%.

BNM's international reserves stood at RM340.6 billion (US$110.4 billion) as at March 15, sufficient to finance 8.9 months of retained imports and was 4.3 times the short-term external debt.

KLCI ends 1Q up 1.73pct, boost from Tenaga, Genting

KUALA LUMPUR: Blue chips ended the first quarter, Thursday, March 31 on a firm note, supported by fund buying of Tenaga and Genting, enabling the FBM KLCI to end a volatile period on a firm note.

During the first quarter, the FBM KLCI surged to a record high of 1,574 on Jan 17 and then slumping as foreign funds exited, further aggravated by the surge in oil prices, Middle-east crisis and the Japan earthquake.

The 30-stock index rose 13.5 points on Thursday to close at 1,545.13, which was a 10-week high since Jan 21, and it is up 1.73% year-to-date. Turnover was 1.95 billion shares valued at RM2.56 billion. Decliners beat advancers 481 to 391.

Key Asian markets ended the day higher except for China markets. Japan's Nikkei 225 rose 0.48% to 9,755.10; Hang Seng Index 0.32% higher at 23,527.52, Taiwan's Taiex Index 0.43% at 8,683.30 while Singapore's Straits Times Index inched up 0.12% to 3,089.95.

However, investors are expected to wary in the second quarter as earnings would be impacted from the turmoil, with exporters seeing slower growth following the Japan earthquake. As for Malaysia, China has replaced Japan as its major trading partner.

Light crude oil jumped US$1.18 to US$105.46 while crude palm oil third-month futures added RM26 to RM3,338 per tonne. The ringgit was quoted at 3.0253 to the US dollar.

Among the 30 stocks of the FBM KLCI, Genting rose 42 sen to RM11.04 and pushed the index up 3.66 points while Tenaga gained 19 sen to RM6.25, adding another 2.42 points to the index. IOI rose seven sen to RM5.76 and Petronas Dagangan 90 sen to RM16.50, pushing the index up by 1.10 points and 0.84 point.

Banks also racked up some gains, with HL Bank rising 30 sen to RM9.85, AMMB eight sen to RM6.49, Public Bank and CIMB four sen each to RM13.12 and RM8.20 while Maybank eked out three sen to RM8.96.

Honda, Mazda to resume parts, vehicle production

TOKYO: Honda Motor Co said on Thursday it will resume production of parts for overseas use on April 4 and production at all its car factories on April 11.

Honda said production of parts and vehicles will resume at about 50 percent of its original plan.

Mazda Motor Corp also said on Thursday that it would restart limited production of vehicles from April 4 at its Hiroshima and Hofu plants after halting production following an earthquake and tsunami in northeast Japan on March 11.

Buying interest picks up, Genting, HL Bank among gainers

KUALA LUMPUR: Buying interest picked up after the midday break on Thursday, March 31, supported by gains in Genting, HL Bank and Petronas Dagangan.

At 2.53pm, the FBM KLCI was up 10.10 points to 1,541.73. Turnover was 1.36 billion shares valued at RM1.27 billion. There were 300 gainers, 442 losers and 269 stocks.

The buying was focused on blue chips, especially Genting as fund managers close their books for a volatile first quarter which saw the KLCI surging to a record high in January and then skidding after foreign funds took money out of the market.

External events including the Middle-east crisis, high oil prices and the Japan earthquake had recently caused investors to exit the riskier equities assets.

However, the Economic Transformation Programme and infrastructure projects have been able to buoy investors' sentiment.

Petronas Dagangan rose 32 sen to RM15.92, HL Bank 25 sen to RM9.80 and Genting 24 sen to RM10.86.

Among the smaller capitalised stocks, Boustead rose 17 sen to RM5.86, HELP 16 sen to RM2.78 while QSR and Tradewinds advanced 13 sen each to RM5.26 and RM8.03.

HwangDBS IM launches Select Dividend Fund

KUALA LUMPUR: HwangDBS Investment Management Bhd launched its latest retail fund, the HwangDBS Select Dividend Fund, which is an equity fund which provides income and growth and invests in Malaysia and Asia-Pacific region.

It said on Thursday, March 31, this fund would offer investors stability, regular returns and consistent performance at moderate risk levels. Its strategy is to focus on stable and high-dividend yielding equities and identify 'the next dividend leaders' equities in Malaysia and Asia-Pacific region.

These are companies with solid fundamentals, strong corporate governance and balance sheets, factors that should present an exciting and sustainable growth story from an investor's perspective.

HwangDBS IM'' chief executive officer and executive director Teng Chee Wai said the Asian economies' recent performance showed they have decoupled from the West.

'These are economies that have remained resilient and are registering decent growth in a low growth and low interest rate environment. Against this backdrop, HwangDBS IM's focus for 2011 will be income driven. Basically it means that our core investment portfolio will be in high dividend yielding equities and equities that could potentially experience high dividend payout growth,' he said.

The minimum initial investment in the HwangDBS Select Dividend Fund is RM 1,000 and the minimum additional investment is RM100. It has an approved fund size of 400 million units retailing at 50 sen per unit during the initial offer period.

The fund aims to provide a combination of regular income and capital growth over the medium to long term period. To achieve the primary objective of providing regular income, the fund intends to invest in Malaysian equities with a minimum of'' 70% of the funds' net asset value and up to 30% of its net asset value in Asia-pacific region.

The fund will be made available through all HwangDBS IM sales offices and only two banks nationwide, namely Maybank Bhd and Alliance Bank Malaysia Bhd.

Public Mutual declares distributions for two funds

KUALA LUMPUR: PUBLIC BANK BHD []'s unit, Public Mutual Bhd declared distributions for Public Aggressive Growth Fund and Public Regular Savings Fund for the financial year ended March 31, 2011.

It said on Thursday, March 31 the distribution was nine sen per unit for the Public Aggressive Growth Fund and five sen per unit for the Public Regular Savings Fund.

Public Mutual chief executive officer Yeoh Kim Hong said both funds had outperformed their respective benchmarks and delivered respectable double digit returns for the period ended March 4, 2011. Both funds are open for EPF Members Investment Scheme.

According to The Edge-Lipper Fund Table dated March 14, 2011, the Public Aggressive Growth Fund and Public Regular Savings Fund generated one-year returns of 22.49% and 21.04% respectively for the period ended March 4, 2011.

The investment strategy for the Public Aggressive Growth Fund is to achieve high capital growth over the medium- to long-term period through investments in situational and high growth stocks.

Public Regular Savings Fund targets consistent capital growth with a steady growth of income over the medium- to long-term.

MBSB to grow personal loans to 50pct of overall portfolio

KUALA LUMPUR: MALAYSIA BUILDING SOCIETY BHD [] (MBSB) targets to grow its personal loans to account for 50% of its overall loan portfolio from about 30% presently, its CEO Datuk Ahmad Zaini Othman.

He said on Thursday, March 31 this should translate to an additional RM5c billion in fresh disbursements.

Speaking to reporters after the company's AGM and EGM, he said the growth in the personal financing would be driven by aggressively seeking new customers.

At present, mortgages make up about 50% of the company's portfolio, whereas the balance comprised of corporate loans.

"Going forward, we hope to have mortgages comprise up to 35% of our portfolio while the balance would be corporate loans," he said.

He said shareholders had approved a proposed rights issue to raise about RM500 million, which should increase core capital ratio by 50%.

MBSB's target headline key performance indicators for 2011 were a 15% growth in group net return on equity and 25.0% group revenue growth.

Asian markets mixed at mid-day

KUALAL LUMPUR: ''Asian markets were mixed on the final trading day of the first quarter of 2011, as some edged up on bargain hunting activities while others remained cautious, awaiting fresh leads.

The FBM KLCI was up 4.80 points to 1,536.43 at the mid-day break, lifted by gains including Petronas Dagangan, Hong Leong Bank and Genting.

However, some mild profit taking emerged as losers overtook gainers by 441 to 278, while 268 counters traded unchanged. Volume was 1.23 billion shares valued at RM1.04 billion.

The ringgit weakened 0.1% to 3.0258 versus the US dollar; crude palm oil for the third moth delivery rose RM3 per tonne to RM3,315, crude oil added 31 cents per barrel to US$104.58 and gold gained US$4.23 per troy ounce to US$1,427.21.

At the regional markets, Hong Kong's Hang Seng Index rose 0.10% to 23,474.11 and South Korea's Kospi edged up 0.08% to 2,093.00.

Meanwhile, the Shanghai Composite Index fell 0.97% to 2,927.15, Japan's Nikkei 225 shed 0.23% to 9,686.63, Taiwan's Taiex lost 0.28% to 8,622.49 and Singapore's Straits Times Index slipped 0.06% to 3,093.53.

Most Asian shares edged up earlier on Thursday, heading for a quarterly gain despite a sharp sell-off earlier this month after disaster struck Japan, while the yen was poised for a quarterly loss on expectations Tokyo will have to maintain super-loose monetary policy far longer than Europe and the United States, according to Reuters.

Concerns about the impact on high oil and food prices on global growth and central bank moves to curb inflation have overtaken worries about Japan's nuclear crisis and unrest in the Middle East, but investors remain cautious, it said.

On Bursa Malaysia, Petronas Dagangan was the top gainer this morning and was up 30 sen to RM15.90; Hong Leong Bank rose 21 sen to RM9.76, Genting 18 sen to RM10.80, Boustead 13 sen to RM5.82, while Ralco, QSR, Faber and Tradewinds added 11 sen each to 88 sen, RM5.24, RM2 and RM8.01 respectively.

DBE Gurney was the most active with 152.99 million shares done. The stock fell three sen to 13 sen.

DBE Gurney's additional 593.33 million new shares and 200 million warrants were listed today. The warrants were issued for free to the subscribers of the renounceable rights issue of 400 million rights shares on the basis of one free detachable warrants for every two rights shares subscribed for.

Other actives included Talam, Perisai, ManagePay Systems, Karambunai and SAAG.

Timber-related stocks extended their losses this morning, with Subur Tiasa down 24 sen to RM3.60, Ta Ann 15 sen to RM6.61 and Jaya Tiasa 14 sen to RM6.20.

AmResearch Sdn Bhd had yesterday downgraded both JAYA TIASA HOLDINGS BHD [] and TA ANN HOLDINGS BHD [] to a Hold from Buy previously, but with raised fair values to RM7.11 (RM6 previously) and RM7 (RM6.30 previously), respectively.

The research said it now had a neutral stance on the sector, given the recent surge in their share prices, adding that the steep run-up in their share prices ' following its earlier upgrade on Ta Ann and its earnings ' had stretched valuations.

Other losers this morning included Warisan, Lafarge Malayan Cement, Ewein, HLFG, Amway, Daibochi and Nestle

Tomypak plans to buy back 10% of own shares

KUALA LUMPUR: TOMYPAK HOLDINGS BHD [] plans to buy back up to 10% of its own shares, which would be up to 10.8 million shares based on its current paid-up of 108.659 million shares.

The company said on Thursday, March 31 that it would see shareholders' approval at the forthcoming annual general meeting.

At midday, the shares were up 0.5 sen to 97.5 sen.

It traded to a high of RM1.14 on Jan 17. Its 52-week high was RM1.54 on July 23, 2010 while its 52-week low was 90 sen on March 16.

As at Dec 31, 2010, its net asset per share was 82 sen. For FY10, it posted net profit of RM15.85 million on the back of RM184.25 million in revenue.

Las Vegas Sands' Macau unit, Sands China under probe by HK watchdog

KUALA LUMPUR: Las Vegas Sands Corp's Macau unit, Sands China Ltd is under probe by Securities and Futures Commission of Hong Kong over alleged regulatory breaches.

The company said on its website on Thursday, March 31 it had been requested to produce certain documents but it was not permitted to comment further.

Reuters reported that Sands China is one of six casino companies licenced to operate in the world's biggest gaming market.

Reuters said the Hong Kong-listed shares of the $19 billion gaming company were down 3.5 percent on Thursday. They had dropped about 9 percent in the two weeks following an announcement by parent LVS in early March that it was being scrutinised by U.S. anti-corruption agencies.

Former Sands China chief executive Steve Jacobs is suing Sands China in Nevada courts for breach of contract, and has accused the company of, among other things, seeking to use "improper leverage" against senior Macau government officials.

Analysts said the investigation by Hong Kong regulators was to be expected and had mostly already priced into the shares.

"If it is just Steve Jacobs again, I don't think it is a big issue. The SFC has to respond to the FBI and the SEC in the States, so if it is not really new news, I am not that worried about it," said Gabriel Chan, at Credit Suisse in Hong Kong.

Operator of The Venetian complex in Macau, Sands China competes in the former Portuguese colony with MGM Resorts International and Wynn Macau Ltd , a unit of Steve Wynn's, Wynn Resorts Ltd .

It has an about 20 percent share of Macau's lucrative gaming market, where revenue streams are at least four times higher than those in Las Vegas, second only to tycoon Stanley Ho's SJM Holdings Ltd's more than 30 percent.

Great Eastern expects Malaysian market to be more resilient than peers

KUALA LUMPUR: Great Eastern Life Assurance (Malaysia) Bhd expects the Malaysian stock market to be more resilient than its regional peers due to the elections.

Its chief investment officer Richard Lin said on Thursday, March 31 Malaysia's valuations were not excessive based on 2011 earnings, macro growth and historical average trading.

"Equity is still the preferred asset class for outperformance," he told said at a media briefing on the outlook of its investment linked fund here.

"Nonetheless, equity markets will remain volatile as investors evaluate the crisis in Japan and watchful of tension in the Middle East and north Africa and the impact on oil prices."

DBE Gurney slips after brief run-up

KUALA LUMPUR: Shares of poultry-based DBE Gurney Bhd fell in late morning on Thursday, March 31, giving up the previous day's gains.

At 11.14am, it was down 2.5 sen to 13.5 sen with 126.67 million shares done. However, its warrants rose 1.5 sen to 7.5 sen with 33.09 million units transacted.

The FBM KLCI rose 4.66 points to 1,536.29. Turnover 1.01 billion shares valued at RM732.85 million. There were 286 gainers, 368 losers and 255 stocks unchanged.

DBE Gurney's additional 593.33 million new shares and 200 million warrants were listed on Thursday. The warrants were issued for free to the subscribers of the renounceable rights issue of 400 million rights shares on the basis of one free detachable warrants for every two rights shares subscribed for.

The maturity date of the warrants is March 22, 2016 and the conversion price is 10 sen. The new shares of 10 sen were issued pursuant to the rights issue with warrants and capitalisation of amounts due to director and creditors settlement.

FBM KLCI poised to end 1Q on positive note

KUALA LUMPUR: ''The FBM KLCI extended its gains on Thursday, March 31 in line with the overnight gains at Wall Street and most key regional markets that rose on bargain hunting.

The FBM KLCI rose 6.30 points to 1,537.93 at mid-morning, lifted by gains including at Petronas Dagangan, Genting and Digi.

Gainers led losers by 290 to 187, while 234 counters traded unchanged. Volume was 623.79 million shares valued at RM353.43 million.

At the regional markets, Japan's Nikkei 225 slipped 0.03% to 9,705.91 and Taiwan's Taiex shed 0.04% to 8,642.97.

Meanwhile, Hong Kong's Hang Seng Index gained 0.52% to 23,573.09, Singapore's Straits Times Index added 0.36% to 3,106.39, the Shanghai Composite Index rose 0.11% to 2,959.15 and South Korea's Kospi edged up 0.08% to 2,093.07.

Most Asian shares edged up on Thursday, poised to end the quarter on a positive note after being briefly ravaged earlier in the month by a sell-off on Japan's disasters and Middle East turmoil, while the yen weakened on expectations of higher interest rates outside Japan, according to Reuters.

The yen has declined to the lowest since May 2010 against the euro in the wake of recent hawkish comments by euro zone, and has slid against the dollar as well after US central bank officials rekindled risk appetite for Japanese exporter stocks, it said.

BIMB Securities Research said Wall Street managed to stay in positive territory despite a host of negative news flow on the international front.

To begin with, Wall Street was jubilant over the encouraging private sector new hiring which rose to 201k in March, relatively in line with economists' expectation, it said.

'This could be a precursor for an encouraging job market report that is due this Friday. Note that the US unemployment level is still sticky at 8.9% as of February this year,' it said.

Elsewhere, it was reported that Portugal is an inch closer of needing a bailout while Spain's central bank has forecast a slower GDP growth and wider budget deficit.

In Japan, the nuclear plant seawater level has been tested with alarming radiation level or more aptly the highest level discovered this far.

'Depending on how the investors view the negative news flow on the international front, we are of the view that the local and regional market investors will continue to pick up beaten down share price today.

'This is provided that the situation in Japan does not get any worse than anticipated,' it said.

The top gainer at mid-morning was Petronas Dagangan that rose 20 sen to RM15.80; Genting added 18 sen to RM10.80, DiGi and AIC 12 sen each to RM28.58 and RM1.17, Cypark, Hong Leong Bank and Boustead 10 sen each to RM3.12, RM9.65 and RM5.79 respectively, while Nakamich, QSR and Boxpak added nine sen each to RM1, RM5.22 and RM1.48 respectively.

Talam was the most actively traded counter with 104.3 million shares done. The stock gained one sen to 10.5 sen.

Other actives included DBE, Perisai, ManagePay Systems, Tanco and Seal.

Decliners included Ta Ann, MBSB, Lafarge Malayan Cement, Esso, BHIC, Petra Energy, Subur Tiasa and Paramount.