Tricubes clears the air over Malaysian email project

KUALA LUMPUR: TRICUBES BHD [] has cleared the air over its appointment to undertake the concept of a 'Malaysian' email project, which inadvertently drawn some flak despite that it is a private-sector funded project.

Tricubes said late Friday, April 22 that it was chosen because of its track record in the design, development, and marketing of information TECHNOLOGY [] solutions to the government and financial sectors since 1997.

'With current clients in Malaysia, Hong Kong and Europe, Tricubes devices are now installed in over 170 organisations,' it said.

The ACE Market company said as a market leader in Enterprise Mobility and Identity Authentication solutions, Tricubes has a full suite of enterprise offerings as well as expertise in identity management.

'Our technology proposal for the MyEmail project combines Tricubes' software technology, namely M2E (mobile to enterprise middleware) and Fusion (identity management middleware), with world-class cloud computing infrastructure from Microsoft,' it said.

To recap, Tricubes had on Tuesday appointed to implement the 1Malaysia Email project'' which would involve RM50 million in investment. It is one of seven new projects under the Economic Transformation Programme (ETP).

The investment also includes the development of a web portal as a one-stop centre for government services, providing value-added services such as social networking, checking bills online and payments.

Tricubes said under the scheme, Malaysians aged 18 and above will each be assigned a unique e-mail account to receive statements, bills and notices.

This would allow direct and secure communication between Malaysians and the government, and enhance the delivery of government services to consumers and businesses alike.

'We understand Tricubes' proposal met or surpassed the benchmarks set by the EPP team. It also did not require any funding or financial guarantees from the government,' it said.

Tricubes explained the concept of a 'Malaysian' email project was mooted by industry members during the NKEA Communications Content and Infrastructure (CCI) Lab organised by PEMANDU under the Economic Transformation Programme (ETP) in June 2010.

The company said the 'Malaysian Email' would be the digital channel of communication between the Government and the users. 'Malaysian Email' means the service is operated and hosted by a Malaysian company.

On the sources of revenue, it said with the decline of physical mail traffic, there is substantial growth in digital mails.

'Our base service will be the email services at no cost to users while our revenue sources will come from the value-added services (VAS), which will be introduced in phases,' it said.

Herewith is the list of frequently asked questions relating to the 1Malaysia Email project from Tricubes:

What is the 1Malaysia Email project?

The concept of a 'Malaysian' email project was mooted by industry members during the NKEA Communications Content and Infrastructure (CCI) Lab organised by PEMANDU under the Economic Transformation Programme (ETP) in June 2010. This 'Malaysian Email' would be the digital channel of communication between the Government and the users. 'Malaysian Email' means the service is operated and hosted by a Malaysian company.

The aspiration is for each Malaysian aged 18 and above to have access to a secured communication channel to government e-services on Internet-enabled devices with a single sign-on user ID.

2. What is the domain email address?

The registered and approved domain email address will be This e-mail address is being protected from spambots. You need JavaScript enabled to view it

3. What are the benefits of having a MyEmail account?

Users will initially be able to use this account to receive government notices such as income tax assessment, driving license renewal and quit rent reminders as well as Employee Provident Fund statements and notices of summons. This is not an exhaustive list of services and more can potentially be offered to users in the future.

4. How do I know that my MyEmail account will be secure?

The myemail.my account has an authentication service which includes a MyKad-based authentication service layer. This ensures that the government notices reach the correct recipients.

5. How is this MyEmail project going to be funded?

The MyEmail project is a Private Funding Initiative (PFI) and therefore, private-sector funded. The project sits within the ETP, which is government-facilitated and private-sector driven.

6. How much is the government's investment in this project?

This government is neither funding nor underwriting this project. This is a 100 per cent privately-funded project.

7. How did the government select the company for this project?

The foundation of the ETP is private sector-led investment. The concept of the MyEmail project was mooted in the ETP Lab in June 2010, making the idea non-exclusive and open. Any interested private party was free to submit its proposal to the government.

Proposals submitted are assessed by Entry Point Project (EPP) teams, to ensure only sustainable and implementable business models, are supported. In this case, the team for the e-government EPP comprised MAMPU and GITN Sdn Bhd. Every proposal is assessed on similar criteria.

8. Why was only one company/email provider selected for this project?

While there were a number of proposals submitted, we understand the selection was made based on a set of criteria that included best-in-practice technology, business model and the experience, and capabilities of the company. A major consideration during the evaluation was also the need to ensure security, confidentiality and authentication of the user. Based on these criteria, we understand that Tricubes met or surpassed these benchmarks.

9. Why was Tricubes Berhad selected for this project?

Tricubes has been involved in the design, development, and marketing of information technology solutions to the government and financial sectors since 1997. With current clients in Malaysia, Hong Kong and Europe, Tricubes devices are now installed in over 170 organisations.

As a market leader in Enterprise Mobility and Identity Authentication solutions, Tricubes has a full suite of enterprise offerings as well as expertise in identity management. Our technology proposal for the MyEmail project combines Tricubes' software technology, namely M2E (mobile to enterprise middleware) and Fusion (identity management middleware), with world-class cloud computing infrastructure from Microsoft.

We understand Tricubes' proposal met or surpassed the benchmarks set by the EPP team. It also did not require any funding or financial guarantees from the government.

10. How will Tricubes generate revenue from this project?

With the decline of physical mail traffic, there is substantial growth in digital mails. Our base service will be the email services at no cost to users while our revenue sources will come from the value-added services (VAS), which will be introduced in phases.

They include:

- Bill and notice presentment. This is expected to give the government savings on postal and printing costs of up to 50 per cent.

- Job boards and online registration to government agencies that currently use e-forms.

- Advertising revenue

- Online marketplace

11. Why did Tricubes drop into GN3 status?

Tricubes had invested heavily in Research & Development, which has a long gestation period, and is well on the way to generate returns to recoup its investment.

12. How can a company with a GN3 rating by Bursa be selected?

A GN3 company is allowed by Bursa Malaysia to continue carrying out its business activities. In order to remain listed, the GN3 company has to regularise its financial standing. Tricubes has achieved its first milestone in its regularisation plan set by Bursa Malaysia, with the appointment of its sponsor, M&A Securities Sdn Bhd in January 2011. The sponsor is expected to submit the company's regularisation plan to Bursa Malaysia and obtain its approval no later than 29 October 2011.

The company selected for this project had to show its ability to generate funding for this project, which Tricubes met. The evaluation team had met with Bursa Malaysia to clarify Tricubes' GN3 status prior to making its final selection.

13. How will the government measure the success of the MyEmail project?

The MyEmail project has two clear KPIs and targets, as discussed and agreed upon at the NKEA Labs in 2010. These are:

- 2015: 100% of Malaysians aged 18 and above to subscribe to this email.

- 2020: 50% of the subscribers use value added services (VAS) to promote Gross National Income (GNI).

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14. Why did the government say that this was a voluntary process when Tricubes has a KPI of 100% of Malaysians aged 18 and above by 2015?

Malaysians aged 18 and above can subscribe to the email voluntarily. However, any project, public or private, must have KPIs and targets for performance monitoring and accountability.

Hence, Tricubes adopted the KPIs and targets proposed by the NKEA Communications Content and Infrastructure Lab under the ETP. It does not mean that Malaysians will be assigned to the service.

15. Why would anyone then need a specific secure email to communicate with the government?

Users with the MyEmail account will be receiving sensitive personal information contained in their income tax returns, Employee Provident Fund statements, notices of summons and driving license renewals as well as quit rent payments.

The MyEmail account, which includes a MyKad-based authentication service layer, ensures that the government notices reach the correct recipients and reduces incidence of compromised personal information.

16. What is the government's role in this project?

The government acts as a facilitator for certain information and processes such as data validation from agencies such as the National Registration Department. To ensure the success of the EPP, the government will also constantly monitor the progress of the project.

17. How is Tricubes going to fund this project?

Tricubes' total investment over the next 10 years will be approximately RM50 million. Our initial investment is estimated to be at RM5.3 million. This includes infrastructure costs for hardware and software, maintenance and raising awareness of the project. We have secured initial financing through a combination of internally generated funds and borrowings. We expect to reinvest revenue received from the project to ensure sustainability.

18. Can the government monitor my MyEmail account?

No. MyEmail will provide you with the option to enhance the security of your entire session with data encryption. Tricubes and Microsoft are working closely to make sure the integrity and confidentiality of the users are ensured.

''

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#Stocks to watch:* DRB-Hicom, Pos Malaysia, Iris, KLK

KUALA LUMPUR: Sentiment on Bursa Malaysia should see some improvement in the week ahead on Monday, April 25 following the fresh corporate newsflow.

However, worries about the impact of the continuing high oil price, inflationary pressures and weakening consumer demand could sap some of the enthusiasm. Oil and gas related counters and also infrastructure stocks could provide some support.

The FBM KLCI index closed 3.58 points down to 1,522.75 on Friday, weighed by losses including at Genting, IOI Corp and Genting PLANTATION []s.

At Bursa Malaysia, stocks which could see trading activity are DRB-HICOM BHD [], POS MALAYSIA BHD [], Iris Corp Bhd and KUALA LUMPUR KEPONG BHD []. Also in focus could be PPB GROUP BHD [], HPI RESOURCES BHD [] and RANHILL BHD [].

Khazanah Nasional Bhd has divested its strategic 32.21% stake in Pos Malaysia to DRB-Hicom Bhd at RM3.60 per share or RM622.79 million, deemed a landmark divestment by the government's investment arm of its entire stake in a major government-linked company.

On Friday, Pos Malaysia's share price closed two sen higher at RM3.37 with 595,000 shares done while DRB-Hicom fell two sen to RM2.30 with 2.32 million units transacted.

Pos Malaysia said based on the audited results for the financial year ended Dec 31, 2010, its audited consolidated net profit was RM67.11 million and audited consolidated net assets RM828.59 million.

Iris Corp has secured a US$149.96 million(RM451.61 million) contract from the government of Tanzania to supply 25 million identification cards based on the Smartcard TECHNOLOGY [].

Iris Corp said the contract was for five years, comprising 36 months for implementation and 24 months for maintenance and support. The scope of work and deliverables were 25 million smart cards which shall be used as the National ID cards of Tanzania

Kuala Lumpur Kepong Bhd said its unit KL-Kepong Industrial Holdings Sdn Bhd sold its remaining 40% stake in''Barry Callebaut Malaysia Sdn Bhd to Luijckx BV for RM117.68 million cash.

HPI Resources' net profit for the third quarter ended Feb 28, 2011 soared 121.5% to RM6.94 million from RM3.13 million a year earlier, driven by higher demand. Revenue for the quarter rose by 11.6% to RM105.43 million from RM94.46 million in 2010, while earnings per share was 12.43 sen.

HPI said the strong performance was primarily the result of both its paper milling and corrugated packaging divisions demonstrating double-digit expansion in revenues and operating profits.

Malaysian palm oil trader -- Pacific Inter-Link Sdn Bhd ' has filed a suit against PPB Group Bhd's 18.3% owned Wilmar International Ltd, seeking US$444 million in damages.

Wilmar said its unit Wilmar Trading Pte Ltd (WTPL), was served with a writ of summons on Thursday issued by the High Court of Malaya at Shah Alam.

Pacific Inter-Link had alleged defamation and unlawful interference with its economic interests and business with regard to WTPL's contracts of sale of palm oil products with other parties.

Ranhill Bhd's unit Ranhill Power Sdn Bhd has received the Securities Commission's approval to issue up to RM800 million of debt notes which will have a tenure up to 15 years.

The proceeds from the issue will be on-lent to Ranhill to finance in full the redemption of the US$220 million guaranteed notes issued by Ranhill (L) Ltd.

The funds would also be to finance the service reserve account requirement, the first guarantee fees payable and the expenses/ costs incurred in relation to the establishment of the Sukuk, and to on-lend to Ranhill to reimburse advances made by Ranhill to Ranhill Engineers and Constructors Sdn Bhd to complete the CONSTRUCTION [] of Senai-Desaru Expressway.

Ranhill gets SC nod to issue up to RM800m sukuk

KUALA LUMPUR: RANHILL BHD []'s unit has received the Securities Commission's approval to issue up to RM800 million of debt notes which will have a tenure up to 15 years.

Rahnhill said on Friday, April 22 Ranhill Power Sdn Bhd secured the approval to issue the Sukuk Musharakah of up to RM800 million in nominal value which would be in two tranches.

Tranche 1 Sukuk of up to RM300 million will be guaranteed by Maybank Islamic Bhd and Tranche 2 Sukuk of up to RM500 million will be guaranteed by Danajamin Nasional Bhd.

Both tranches of the Sukuk have been assigned with rating of AAAIS(bg) and AAAIS(fg) respectively''by Malaysian Rating Corporation Bhd.

'The proceeds from the issue will be on-lent to Ranhill to finance in full the redemption of the US$220 million guaranteed notes issued by Ranhill (L) Ltd,' it said.

It added the funds would also be to finance the service reserve account requirement, the first guarantee fees payable and the expenses/ costs incurred in relation to the establishment of the Sukuk, and to on-lend to Ranhill to reimburse advances made by Ranhill to Ranhill Engineers and Constructors Sdn Bhd to complete the CONSTRUCTION [] of Senai-Desaru Expressway.

Malaysian palm oil trader sues PPB associate Wilmar for US$444m

KUALA LUMPUR: A Malaysian palm oil trader -- Pacific Inter-Link Sdn Bhd ' has filed a suit against PPB GROUP BHD []'s 18.3% owned Wilmar International Ltd, seeking US$444 million in damages.

PBB had on Friday, April 22 announced to Bursa Malaysia the statement made by Wilmar's to the Singapore Exchange Securities Trading Ltd on Thursday.

Wilmar said its unit Wilmar Trading Pte Ltd (WTPL), was served with a writ of summons on Thursday issued by the High Court of Malaya at Shah Alam.

Pacific Inter-Link had alleged defamation and unlawful interference with its economic interests and business with regard to WTPL's contracts of sale of palm oil products with other parties.

Pacific Inter-Link was not a party to those contracts of sale of palm oil products between WTPL and other parties.

'The defendants named in the writ of summons are WTPL and three other Malaysian parties. PIL is claiming against all four defendants, jointly and severally, for amongst others, general damages of US$244.20 million, aggravated damages of US$200 million as well as a public apology,' it said.

Wilmar said the lawyers advised that there was no merit in Pacific Inter-Link 's claim and that the claim is 'totally frivolous, vexatious and an abuse of court process'.

'In particular, it is not alleged in the writ of summons that WTPL is in breach of any contract with PIL'.

Wilmar's lawyers advised that in line with the legal principle of freedom of contract, WTPL was entitled to decide as to which party it wished to deal with, and by choosing not to have business dealings with Pacific Inter-Link for the past few years, WTPL was not in any way liable to Pacific Inter-Link for alleged defamation and unlawful interference with Pacific Inter-Link 's economic interests and business.

Nestle unit inks MoU to establish RM115m facility in N. Sembilan

KUALA LUMPUR: ''Nestle (Malaysia) Bhd unit Nestle Manufacturing (Malaysia) Sdn Bhd has inked a deal with Cereals Partners (Malaysia) Sdn Bhd to jointly establish and manufacture breakfast cereals products at a plant to be located at Chembong, Negeri Sembilan.

Cereals Partners is a company jointly and equally held by Nestl'' SA and General Mills Asia Pte Ltd.

The company will invest RM115 million (35 million Swiss francs) to develop the new facility scheduled to start production for the domestic and export markets by the second quarter of 2012.

The new facility, to be located adjacent to the existing manufacturing complex operated by Nestle Malaysia in Chembong, is expected to use up to 80% local ingredients.

In a statement Friday, April 22, Nestle Nestle Manufacturing and Cereals Partners had signed a memorandum of understanding to jointly collaborate to establish the facility.

It said Cereals Partners was the operating company of CPW SA in Malaysia, adding that the latter was a joint venture both General Mills Inc and Nestl'' SA for the manufacture, supply and distribution of breakfast cereals products.

Nestle said the new facility would be the third breakfast cereals production centre for CPW in Asia reflecting the growth of Nestl'' breakfast cereals products in the region.

CPW will maintain the other two breakfast cereal production centres in the region which are located in Lipa, Philippines and Tianjin, China, it said.

It said the new facility will produce the five bestsellers of the Nestle breakfast cereals range ' Koko Crunch, Honey Stars, Cookie Crisp, Koko Krunch Duo and Milo Breakfast cereals ' for the Malaysian market as well as for export to Singapore, Indonesia and Thailand.

FBM KLCI ends week on weaker note

KUALA LUMPUR: The FBM KLCI ended the week on a lower note when it fell at the close on Friday, April 22, ahead of the long weekend at most regional, US and European markets for the Easter weekend.

The 30-stock index fell 3.58 points to 1,522.75, weighed by losses including at Genting, IOI Corp and Genting PLANTATION []s.

Losers edged gainers by 349 to 364, while 329 counters traded unchanged. Volume was 1.16 billion shares valued at RM1.17 billion.

Bintulu Port was the top loser and fell 17 sen to RM6.73; Jerneh warrants fell 17 sen to RM1.56 while its shares lost 16 sen to RM3.17.

F&N fell 12 sen to RM16.60, Sunway City lost 11 sen to RM4.52, Genting Plantations nine sen to RM7.90, Genting and S P Setia eight sen each to RM11.50 and RM4.23, while IOI Corp lost seven sen to RM5.33.

Among the gainers, CBIP jumped 40 sen to RM4.45, BAT 32 sen to RM47.80, Aeon added 31 sen to RM6.28, UMS 26 sen to RM1.78, Far East 25 sen to RM7.30, Petronas Dagangan 18 sen to RM16, Ta Ann, JT International and Tradewinds added 17 sen each to RM6.65, RM7.17 and RM8.11 respectively, while KLK was up 14 sen to RM20.84.

Ramunia warrants and shares were actively traded today. The warrants rose 10.5 sen to 54 sen with 86.7 million units done, while the shares gained 5.5 sen to 70.5 sen with 73.6 million shares traded.

Other actives included AsiaBio, MNC, Karambunai, Viztel, SAAG, Mobif, DBE Gurney and Asia EP.

At the regional markets, Japan's Nikkei 225 edged down 0.04% to 9,682.21, the Shanghai Composite Index fell 0.53% to 3,010.52m, South Korea's Kospi fell 0.03% to 2,197.82 while Taiwan's Taiex gained 0.13% to 8,969.43.

Elsewhere, the Hong Kong, Singapore and Australian markets were closed for Good Friday, as would be Wall Street and most of the European indices later today.

#Flash* Khazanah sells 32.21% stake in Pos to DRB-Hicom for RM622.7m

KUALA LUMPUR: Khazanah Nasional Bhd has divested its 32.21% stake in POS MALAYSIA BHD [] to DRB-HICOM BHD [] at RM3.60 per share or RM622.79 million.

Khazanah said on Friday, April 22 this decision was made following a rigorous selection process initiated by Khazanah to ensure that the new shareholder will be able to bring Pos Malaysia to the next level of growth.

"The divestment is made via a conditional offer with a price consideration of RM3.60 per share or RM622.79 million. The offer price of RM3.60 per share is subject to the modification of the Special Rights Redeemable Preference Share in Pos Malaysia held by Minister of Finance (Incorporated).

Iris Corp gets US$149.96m govt job in Tanzania

KUALA LUMPUR: IRIS CORPORATION BHD [] has landed a US$149.96 million (RM451.61 million) contract from the government of Tanzania to supply 25 million identification cards based on the Smartcard TECHNOLOGY [].

In a statement Friday, April 22, Iris Corp said the contract was a period of five years, comprising 36 months for implementation and 24 months for maintenance and support.

It said the scope of work and deliverables were 25 million smart cards which shall be used as the National ID cards of Tanzania ; data centre and disaster recovery site, along with required hardware, software including Automated Fingerprint Identification System (AFIS) and services;National ID registry system and database including associated hardware, software, and services for the roll-out of the enrolment system to 142 sites in Tanzania and a personalization system at a centralized site in Tanzania; and the necessary post-implementation maintenance and support services including spare parts supply.

Iris Corp said it was to provide a performance security for the due performance of the Contract for the value of 20% of the contract price.

'Twenty per cent of the performance security shall be returned to Iris Corp upon successful implementation of pilot trial and issuance of 150,000 cards under the contract

'The remaining 80% of the performance security shall be returned to Iris Corp as follows: 30% after operational acceptance of the full National ID system and 50% after pre-commissioning test of the system as stated in the contract,' it said.

Iris Corp said the project would be financed by internally generated funds and bank borrowings.

The company said the contract would contribute positively to its future earnings.

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Bank Negara foreign reserves up US$8.4b to US$122.2b at April 15

KUALA LUMPUR: Bank Negara Malaysia international reserves jumped US$8.4 billion to US$122.2 billion (RM369.9 billion) as at April 15 from US$113.8 billion as at March 31.

In a statement Friday, April 22, Bank Negara said the reserves position was sufficient to finance 9.8 months of retained imports and is 4.7 times the short-term external debt.

HPI Resources 3Q net profit jumps 121% to RM6.94m

KUALA LUMPUR: HPI RESOURCES BHD [] net profit for the third quarter ended Feb 28, 2011 soared 121.5% to RM6.94 million from RM3.13 million a year earlier, driven by higher demand.

Revenue for the quarter rose by 11.6% to RM105.43 million from RM94.46 million in 2010, while earnings per share was 12.43 sen.

For the nine months ended Feb 28, 2011, HPI's net profit rose 32.2% to RM20.63 million on the back of revenue RM314.66 million.

In a statement Friday, April 22, HPI group managing director Albert Chan Chor Ngiak said the strong performance was primarily the result of both its paper milling and corrugated packaging divisions demonstrating double-digit expansion in revenues and operating profits.

'We are reaping the fruits of better cost management and higher productivity measures put in place.

'The group is poised to mark strong outperformance for FY2011,' he said.

On the company's prospects, Chan said that HPI had not only developed a diverse and reputable customer portfolio, but more importantly partnered in their growth as they ramped up their manufacturing activities to meet increasing global demand for consumer products.

'At the same time, we have honed our business model to achieve highly-efficient operations.

'Coupled with our ongoing efforts to integrate our paper mill operations with our packaging manufacturing division, we believe that we are ready to capture even more market share in future,' he said.

CIMB hopeful of achieving targets despite less than favourable environment

KUALA LUMPUR: CIMB Group Holdings Bhd hopeful of achieving its targets despite the less than favourable environment now, including external factors such as the recent Japan earthquake.

Its group chief executive Datuk Seri Nazir Razak said on Friday, April 22, 2011 that CIMB had set its targets but that was before the environment became challenging.

Speaking to reporters after the banking group's AGM, he said CIMB was hopeful about achieving its targets.

Nazir said CIMB had good momentum in its loans growth and its deal pipeline was also good.

On the outlook for the interest rates, he expected a 50 basis points increase in the overnight policy rate this year.

On the government's proposed private pension funds, he said CIMB was very ready to play a big role in the business after its experience in the US.

Nazir said private pension reforms were very important in Malaysia as 'we could have a huge pension problem if we don't deal with it now'.

He also said that during the AGM some shareholders had raised questions of whether the banking group would go to Laos and the Philippines as part of the Asean agenda.

'We would look at opportunities if they so arise,' he said about ventures in two countries. CIMB already has presence in Indonesia and Thailand.

As for a shareholder's query about a dividend reinvestment plan, he said there were no such plans.

He said the reason was that 'we will end up with capital that we don't need.'

Prasarana's gearing to rise to 4-5 times when remaining LRT sukuk issued

KUALA LUMPUR: RAM Rating Services Bhd expects Syarikat Prasarana Negara Bhd's gearing level to climb up to about four to five times when it issues the remaining RM2 billion bonds over the next three years for the light rail transit (LRT) extension plan.

The ratings agency said on Friday, April 13 that over the next three years, Prasarana was expected to issue the remaining RM2 billion of its unrated RM4 billion government-guaranteed sukuk to fund the LRT extension plan.

'Following this, its gearing level is expected to climb up to about 4.0 to 5.0 times,' it said.

RAM Ratings reaffirmed the AAA ratings of Prasarana's RM1.0 billion nominal value redeemable guaranteed coupon-bearing bonds (2002/2022) and RM5.468 billion nominal value redeemable guaranteed serial fixed-rate bonds (2003/2016); the long-term ratings have a stable outlook.

'The ratings reflect the strategic importance of Prasarana's role in the Government of Malaysia's (GoM) provision of public transportation services.

'As such, RAM Ratings opines that Prasarana is able to receive continued financial support from the GoM, which has been extending government grants for the Group's operating and financing costs. This is further strengthened by the GoM's irrevocable and unconditional guarantee on the bonds,' it said.

Prasarana was set up as part of the government's initiative to restructure the public transportation systems in the Klang Valley and Penang.

The group owns and operates ' via its subsidiaries ' the major modes of public transport in these two cities, including the Klang Valley Light Rail Transit (LRT) systems, the KL Monorail and the bus fleets servicing the Klang Valley and Penang.

The group will also own and operate the upcoming Mass Rapid Transit (MRT) system in the Klang Valley.

'We note that Prasarana's debt burden had eased slightly to RM9.60 billion as at end-December 2010, albeit still hefty (end-December 2009: RM9.62 billion).

'Because of weaker retained earnings, however, the group's gearing ratio worsened from 2.99 times to 3.32 times,' it said.

RAM Ratings also said the estimated RM50 billion MRT project could be substantially debt-funded.

RAM Ratings' head of consumer and industrial ratings Kevin Lim said 'there is considerable scope for its gearing level to rise should Prasarana or its subsidiaries be chosen as the financing vehicle for the MRT project'.

Nevertheless, he believed the group would continue deriving strong financial flexibility from the government.

North American Semiconductor Equipment industry posts March 2011 book-to-bill ratio of 0.95

KUALA LUMPUR: North America-based manufacturers of semiconductor equipment posted US$1.70 billion in orders in March 2011 (three-month average basis) and a book-to-bill (BTB) ratio of 0.95, according to the Semiconductor Equipment Manufacturers Industry association (SEMI).

The billings figure is 7.6% less than the final February 2011 level of US$1.84 billion, and 54.4% more than the March 2010 billings level of US$1.10 billion.

However, the BTB ratio in March was higher than the 0.87 achieved in February.

A BTBl of 0.95 means that US$95 worth of orders were received for every US$100 of product billed for the month.

The US-based SEMI is the global industry association serving the manufacturing supply chains for the microelectronic, display and photovoltaic industries.

The SEMI book-to-bill is a ratio of three-month moving averages of worldwide bookings and billings for North American-based semiconductor equipment manufacturers.

In a statement April 21, SEMI said the three-month average of worldwide bookings in March 2011 was US$1.62 billion.

The bookings figure was 1.5% more than the final February 2011 level of US$1.6 billion, and 21.6% above the US$1.33 billion in orders posted in March 2010, it said.

SEMI president and CEO Stanley T. Myers said the book-to-bill ratio improved in March based on slightly higher orders and lower billings.

'Orders are over 20% higher than one year ago and we see industry investments remaining steady,' he said.

Nazir: CIMB has 15% stake in Tricubes Bhd but investment was for clients

KUALA LUMPUR: CIMB Group Holdings Bhd's group chief executive said the group has a 15% stake in TRICUBES BHD [] but this investment was made on behalf of a client and the group neither has board representation nor management control.

Datuk Seri Nazir Razak said on Friday, April 22 that he was made aware of some reports on the internet about CIMB's investment in Tricubes.

'I subsequently checked and found that the investment does exits, which was in 2001 and at 15%,' he told reporters after the banking group's annual general meeting. 'But we are not involved in the management nor do we have board representation.

'This investment was done in 2001 by the CIMB private equity manager on behalf of a client,' he said.

'Any suggestion that we are somewhat involved in the business is totally malicious,' he said, adding that CIMB's investment in Tricubes was by virtue of investing in the client's money and it is a private equity business.

Nazir added that CIMB had invested over the years in 100 over companies via the private equity business and 'this investment was made on behalf of a client'.

Tricubes was appointed to spearhead the to implement the 1Malaysia Email project'' which would involve RM50 million in investment. It is one of seven new projects under the Economic Transformation Programme (ETP).

The investment also includes the development of a web portal as a one-stop centre for government services, providing value-added services such as social networking, checking bills online and payments.

Prime Minister Datuk Seri Najib Tun Razak had on Wednesday, April 20 clarified that the 1Malaysia E-mail project is a voluntary private initiative and does not involve public money.

Under the scheme, Malaysians aged 18 and above will each be assigned a unique e-mail account to receive statements, bills and notices. This would allow direct and secure communication between Malaysians and the government, and enhance the delivery of government services to consumers and businesses alike.

FBM KLCI stays in the red at mid-day

KUALA LUMPUR: The FBM KLCI remained in negative territory at the mid-day break amidst lackluster trade in the absence of fresh leads, as several key regional markets were closed for the Good Friday holiday ahead of the extended weekend at most global markets.

The FBM KLCI fell 0.12% or 1.85 points to 1,524.48 at 12.30pm.

Losers led gainers by 351 to 281, while 268 counters traded unchanged. Volume was 604.26 million shares valued at RM486.15 million.

The ringgit weakened 0.01% to 3.0076 versus the US dollar; crude palm oil futures for the third month delivery rose RM30 per tonne to RM3,342, gold was up US$2.18 an ounce to US$1,508.43 while crude oil stood at US$112.29 per barrel as at close of yesterday.

At the regional markets, Japan's Nikkei 225 erased earlier losses and edged higher on Friday after news that Renesas Electronics would resume operations at a key auto-chip factory triggered buying of major automakers, according to Reuters.

Renesas , a major supplier of chips to the auto industry, said on Friday it would resume operation of a factory in Ibaraki prefecture on June 15, ahead of the previously scheduled target of July, it said.

The Nikkei 225 rose 0.20% to 9,705.51, Taiwan's Taiex was up 0.11% to 8,967.10 and South Korea's Kospi was flat at 2,198.51.

Meanwhile, the Shanghai Composite Index edged down 0.07% to 3,024.58.

Elsewhere, the Hong Kong, Singapore and Australian markets were closed for Good Friday, as would be Wall Street and most of the European indices later today.

On Bursa Malaysia, Jerneh shares and warrants fell on reports that the company was eyeing Sabah-based property developer Sagajuta (Sabah) Sdn Bhd, whose flagship project is the massive 1Borneo mixed development in Kota Kinabalu.

Both its shares and warrants fell 13 sen each to RM3.20 and RM1.60.

Other decliners this morning were F&N that lost 12 sen to RM16.60, Hong Leong Bank and Genting down 10 sen each to RM10.50 and RM11.48, United Malacca seven sen to RM6.90, Lysaght and Allianz fell six sen each to RM1.72 and RM5.26 while Rexit lost 5.5 sen to 32 sen.

Among the gainers, CBIP rose 27 sen to RM4.32, Tradewinds 26 sen to RM8.20, Far East 25 sen to RM7.30, DiGi 18 sen to RM29, JT International 17 sen to RM7.17, Ta Ann 15 sen to RM6.63, MBSB and KLK 12 sen each to RM2.53 and RM20.82, AIC 11 sen to RM1.20 while Shell was up eight sen to RM11.

AsiaBio was the most actively traded counter with 36.2 million shares done. The stock added one sen to 8 sen.

Other actives included MNC, Karambunai, Ramunia, Asia EP, Mobif, Time and Timecom.

FBM KLCI extends losses at mid-morning

KUALA LUMPUR:'' The FBM KLCI extended its losses on Friday, April 22 in line with muted sentiment at key regional markets ahead of the long weekend at most global markets to observe the Good Friday and Easter holidays.

At 10.10am, the FBM KLCI was down 0.32 point to 1,526.01.

Losers edged gainers by 212 to 209, while 217 counters traded unchanged. Volume was 342.05 million shares valued at RM172.47 million.

At the regional markets, Japan's Nikkei 225 fell 0.48% to 9,639.16 and the Shanghai Composite Index lost 0.37% to 3,105.52.

Meanwhile, Taiwan's Taiex rose 0.24% to 8,978.85 and South Korea's Kospi was up 0.12% to 2,201.26.

Elsewhere, the Hong Kong, Singapore and Australian markets were closed for Good Friday, as would be Wall Street and most of the European indices later today.

On Bursa Malaysia, Jerneh shares and warrants fell on reports that the company was eyeing Sabah-based property developer Sagajuta (Sabah) Sdn Bhd, whose flagship project is the massive 1Borneo mixed development in Kota Kinabalu.

Jerneh warrants fell 14 sen to RM1.59 while its shares lost 13 sen to RM3.20.

Allianz fell nine sen to RM5.23, Batu Kawan and Genting down eights en each to RM15.30 and RM11.50, MPI lost seven sen to RM5.38, Lysaght six sen to RM1.72, Maybulk five sen to RM2.60 and Ewein 4.5 sen to 80.5 sen.

CBIP was the top gainer and added 26 sen to RM4.31; Far East was up 25 sen to RM7.30, DiGi 19 sen to RM29, JT International 17 sen to RM7.17, KLK 16 sen to RM20.86, AIC 11 sen to RM1.20, MBSB 10 sen to RM2.51, Shell eight sen to RM11 and MMHE six sen to RM6.96.

Actives this morning included AsiaBio, MNC, Ramunia, Karambunai, Mobif, Viztel and Tricubes.

JT International up on dividend expectations

KUALA LUMPUR: JT INTERNATIONAL BHD [] shares rose on Friday, April 22 after the company left the door open on higher dividend payouts at its AGM a day earlier.

At 11.15am, JT International rose 17 sen to RM7.17.

The company's chief financial officer Thean Nam Hooi was quoted in The Edge Financial Daily today as saying that company seldom hoarded its cash, and it would declare a higher dividend to return the extra capital to shareholders if the company did not need it.

'We are looking at various business opportunities, but consistent with our past track record that if we do not find viable business opportunities will consider (increased) dividend payouts.

'We can't disclose these (opportunities) because it is very competitive,' Thean said.

VisDynamics advances in early trade

KUALA LUMPUR: VISDYNAMICS HOLDINGS BHD [] shares advanced in early trade on Friday, April 22 after the company's chairman gave a positive view of a strong and satisfactory financial performance in 2011.

At 9.20am, VisDynamics was up 5.5 sen to 39.5 sen with 494,700 shares done.

Its chairman Datuk Azzat Kamaludin said the semiconductor equipment solution provider was poised to ride on the momentum of growth that the semiconductor industry is expected to sustain this year after recording the strongest rebound in 2010 following the worst ever year of 2009.

MIDF Research in its outlook for the sector on April 22 maintained its positive view on the sector given the various indicators pointing favourably towards a strong growth in CY11.

A key driver will be the rising popularity of smartphones and tablets as evident with Apple's recent strong performance, it said.

'Growth in the traditional PC market and cloud computing will also provide additional growth for Malaysia's semiconductor manufacturer.

'This will also provide relief for HDD manufacturer despite the challenge that it will be facing from tablets,' it said.

Peugeot top European brand in 1Q in M'sia

KUALA LUMPUR: Peugeot was the best selling European brand in Malaysia in the first quarter of 2011 with a 26% market share, according to the Malaysian Automotive Association.

Nasim Sdn Bhd, the official distributor of the Peugeot marque in Malaysia, sold 1,538 units which represented a 167% jump from the 576 units sold in the same period in 2010.

Nasim chief executive officer SM Nasarudin SM Nasimuddin said it was a milestone for the marque in Malaysia and for Nasim after being appointed distributor for Peugeot in 2008.

'We thank our customers, dealers, vendors and partners all over the country, for having faith in our revival of the brand.

'This could not have been done without the support of the Malaysian government, and the decisive move by Automobiles Peugeot in making Malaysia their right-hand-drive production hub,' he said in a statement Friday, April 22.

He said the sales volume recorded in the first quarter of this year by Nasim were in line with the company's annual sales target of 7,000 units.

He added the company will launch two more models this year that would help Nasim achieve its annual sales target.

Peugeot's most popular model in the first quarter, the 308 contributed 38% of sales, selling 588 units (Q1 2010: 458).

This represented an increase of 28% while the 207 sedan sold 537 units (35% of sales).

Another 15% of Nasim's sales in the first quarter came from the 3008, with 237 units.

Peugeot vehicles sold in Malaysia are manufactured at Naza Automotive Manufacturing in Gurun, Kedah. Nasim registered 2,562 units in 2010.

Nasim chief operating officer Datuk Samson Anand George said the company was optimistic about the future and would introduce five new sales and service outlets, increasing its network size to 23 nationwide.

'Our Q1 sales result, along with the upcoming introduction of two new models puts us on the right track towards achieving our sales target of 7,000 units this year,' he said.

Peugeot vehicles sold in Malaysia are manufactured at Naza Automotive Manufacturing in Gurun, Kedah.

The plant is preparing to roll out a C-segment sedan codenamed T73.

The plan is to make 60,000 units of the T73 over a five-year period from 2012 to 2016, with some 60% set aside for export to right hand drive markets such as Indonesia, Thailand, Sri Lanka, Brunei, Australia, New Zealand and right-hand-drive countries in Africa .

'Exports will eventually outnumber domestic sales, and as a brand we will be actually contributing positively to the automotive trade balance', said Nasarudin.

CIMB Research remains Neutral on Tenaga

KUALA LUMPUR: CIMB Equities Research said TENAGA NASIONAL BHD []'s core net profit at the halfway stage accounted for only 47% of its and consensus full-year forecasts.

'We consider it to be below expectations as 2H earnings are expected to remain weak due to higher fuel costs. However, the 4.5 sen interim dividend was within our estimate. We now cut our FY8/11-12 core EPS by 7-8% for slower demand growth as well as higher coal price and usage,' it said on Friday, April 22.

CIMB Research said as a result, its end-CY11 target price, which is based on a forward P/BV of 1.2x, falls by 7 sen to RM6.82.

It remained NEUTRAL on Tenaga given the lack of near-term catalysts and cost pressures. There appears to be no near-term relief from the higher fuel costs as the government is unlikely to raise tariffs in an election year, it said.

''

'We prefer YTL Power for exposure to the power sector,' it said.

HDBSVR: KLCI may attempt to cross 1,530 again

KUALA LUMPUR: Hwang DBS Vickers Research said the benchmark FBM KLCI may attempt to cut above the resistance barrier of 1,530 again on Friday, April 22.

It said this comes as Bursa Malaysia'' ' the only market across the region to finish in the red on Thursday'' ' could recover after the 4.7-point dip.

'Nevertheless, trading interest is expected to be quite slow today as most regional peers (like Singapore, Indonesia, Philippines, Hong Kong and India) are on holidays today,' it said.

Hwang DBS Vickers Research said Wall Street ' which saw its key equity indices rising between 0.4% and 0.6% last night ' would also be closed Friday.

Amid a relatively quiet market backdrop, counters that could attract attention today include: (a) RHB Capital, after a media report said two foreign parties are in the midst of making a joint bid to acquire a stake in the bank; (b) Jerneh Asia, which has signed an MOU to explore a proposed acquisition of a Sabah-based property developer; and (c) CBIP, as the company has just announced a proposal to undertake a 1-for-1 bonus issue.

CIMB Research rates CI Holdings a Buy, TP RM4.78

KUALA LUMPUR: CIMB Equities Research said sugar was the main topic of discussion at the Thursday, April 21 post-3QFY6/11 briefing by CI Holdings Bhd.

It said on Friday, April 22 CIH has no plans to raise selling prices yet even though it is now paying a market price of around RM2.62/kg for sugar, 38% higher than the last subsidised price of RM1.90/kg.

'Other highlights are 1) a continued rise in sales of non-carbonated drinks, and 2) improvement of infrastructure through a new PET line. Our EPS forecasts are intact, which, together with an unchanged valuation basis of parity with our 14.5x CY12 target market P/E, keeps our target price at RM4.78.

'We continue to rate CIH a BUY and our top F&B pick given the potential catalysts of 1) an increasingly marketable product line, and 2) M&A. Thanks to its recent price weakness, the stock is now an attractive investment proposition, offering single-digit FY12-13 P/Es and 4.1% dividend yield,' CIMB Equities Research said.

CIMB Research: Indicators improving for WTK

KUALA LUMPUR: CIMB Equities Research said since it featured WTK Holdings Bhd [] as a technical sell stock on April 12, prices fell to as low as RM1.72, almost hitting the 30-day SMA.

It said on Friday, April 22 that since then, a base is formed near this moving average. Yesterday, buying momentum started to set in, pushing prices above the flag resistance.

'Looking at the chart, prices could bounce back to test RM2.08 and possibly even the RM2.20 level. Hence, aggressive traders may start to accumulate now. Always put a stop at RM1.88.

'Indicators are improving. MACD is poised for a positive crossover while RSI has hooked upward,' it said.

HDBSVR has Buy on RHB Cap with a RM10 TP

KUALA LUMPUR: Hwang DBS Vickers Research said RHB Cap remains one of the cheapest large cap banks in Malaysia at 1.7x FY11 book value against sector (weighted) average of 2.3x.

'At ROE levels of 15-16% and trading at only 1.7x FY11 BV, RHB Cap makes for an attractive M&A target. We have a Buy recommendation on RHB Cap with a RM10 TP,' it said on Friday, April 22.

HDBSVR cited The Edge Financial Daily that there are three potential parties vying for a stake in RHB Cap. Abu Dhabi Commercial Bank (ADCB) has engaged advisors Goldman Sachs and Bank of America-Merrill Lynch to run the auction for the sale of its 25% stake in RHB Cap.

Carlyle Group and TPG Capital (private equity firms) are in talks to launch a joint bid for RHB Cap for US$1.5bn.

Another two parties potentially looking at the stake (as mentioned in The Edge Financial Daily) are Australia and New Zealand Group Ltd (ANZ) and DBS Group Holdings (DBS).

These permutations suggest that there could possibly be further M&As within the domestic banks.

The Edge Financial Daily mentioned that it is unclear how Malaysian authorities would react to DBS' possible bid on RHB Cap given that Singapore's Temasek owns a 14.8% stake in Alliance Financial Group (AFG). It is understood that a foreign strategic investor cannot have more than one stake in domestic banks.

'If ANZ were to acquire a stake in RHB Cap, it would need to merge AMMB with RHB Cap. This would allow ANZ to have a stake in a larger piece of the Malaysian banking landscape,' said HDBSVR.

It was reported earlier that ANZ was keen to increase its stake in AMMB. ANZ currently owns 24% of AMMB. Even though the threshold for foreign shareholding remains capped at 30%, total returns as a shareholder would be larger for ANZ in an enlarged AMMB-RHB Cap scenario.

Carlyle Group and TPG Capital are private equity firms. TPG has an Indonesia arm, TPG Nusantara, which currently owns 59.7% of Bank Tabungan Pensiun Nasional (BTPN) and actively plays a role in management of the bank and has seen the bank doing well since its acquisition in 2008.

'We are not just implying temporary value enhancement in banks for the sake of taking advantage of potential general offer valuations. Our M&A theme for the Malaysian banks include potential foreign strategic tie-ups that could enhance value and boost competitiveness of the banks.

'The target banks will benefit from input the potential stakeholders could bring to the table to improve stand-alone value propositions, e.g. AMMB-ANZ,' it said.

#Stocks to watch:* Jerneh Asia, Tenaga, BAT, Star, VisDynamics

KUALA LUMPUR: Stocks which could be in focus following fresh corporate developments on Friday, April 22 include JERNEH ASIA BHD [], TENAGA NASIONAL BHD [] (TNB), British American Tobacco (Malaysia) Bhd, STAR PUBLICATIONS (M) BHD [] and VISDYNAMICS HOLDINGS BHD [].

The Edge FinancialDaily reports that after hiving off its core insurance business in Malaysia, the cash-rich Jerneh Asia has now set its sights on acquiring Sabah-based property developer Sagajuta (Sabah) Sdn Bhd, whose flagship project is the massive 1Borneo mixed development in Kota Kinabalu.

TNB's earnings fell 36.9% to RM630.30 million in the second quarter ended Feb 28, 2011 from RM1 billion a year ago as it was impacted by higher coal prices.

Forecasting a challenging year ahead, TNB said its revenue was a marginal 1.5% higher at RM7.503 billion from RM7.389 billion a year ago.

Its earnings per share were 14.2 sen compared with 23.05 sen while it declared a lower dividend of 4.5 sen per share.

British American Tobacco's net profit for the first quarter ended March 31, 2011 fell 6.95% to RM178.56 million from RM191.89 million a year earlier, on the back of lower volumes and a decline in profit from operations.

Revenue for the quarter declined to RM992.15 million from RM1.02 billion in 2010. Earnings per share was 62.50 sen while net assets per share was RM1.72. BAT declared a first interim dividend of 60 sen per share, tax exempt under the single-tier tax system amounting to RM171.32 million for the financial year ending Dec 31, 2011.

RAM Rating Services Bhd is cautious about Star Publications' new new investments may pose new risks to the group.

The ratings agency said in the near term, the group 'may invest some RM60 million in new media assets', that is television channels, radio stations, online media and event organising.

'The group is expected to incur losses from some of these investments during their respective gestation periods given that they are fairly new businesses.

'In addition, Star lacks experience in the TV segment, which is viewed to be more competitive than its mainstay newspaper business,' it said.

Shares of VisDynamics fell sharply on Thursday despite its chairman's positive view of a strong and satisfactory financial performance in 2011.

Chairman Datuk Azzat Kamaludin said the semiconductor equipment solution provider is poised to ride on the momentum of growth that the semiconductor industry is expected to sustain this year after recording the strongest rebound in 2010 following the worst ever year of 2009.

Nikkei edges lower, stronger yen pressures exporters

TOKYO: Japan's Nikkei share average edged lower on Friday as exporters came under pressure from a stronger yen, triggering profit-taking after sharp rises over the past two days.

The dollar tumbled for a third straight day on Thursday as record low interest rates and the crushing weight of the U.S. budget deficit pushed it closer to an all-time trough against major currencies.

The benchmark Nikkei average dropped 0.7 percent to 9,620.53 while the broader Topix shed 0.6 percent to 837.12. ' Reuters

''

Wall Street ends strong week with new earnings attitude

NEW YORK: U.S. stocks posted their first positive week in three'' as more healthy earnings news lifted Wall Street on Thursday, April 21 though gains were limited with another 180 S&P names due to report next week.

Apple's blowout results and strong reports from a number of industrials kept sentiment on the bullish side, after investors were on guard for disappointments headed into this week.

Another increase in jobless claims and underwhelming results from General Electric and McDonald's kept gains in check. The S&P 500 ran into resistance close to 1,340, a level that has triggered selling plenty of times this month. Some see a failure to convincingly rise above 1,344, the recent high in the benchmark, as a bearish technical signal.

Volume was light, with about 6.45 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year's daily average of 8.47 billion.

"Objectively, the earnings season is still mixed, but since the most recent results were strong, it increases the perception that we'll have a good first half of the year," said Tommy Huie, who oversees about $34 billion as president and chief investment officer of M&I Investment Management in Milwaukee.

Apple Inc (AAPL.O) rose 2.4 percent to $350.70 a day after posting results that surged past expectations, joining F5 Networks, DuPont and other names that increased the perception of a healthy corporate America after some names' early results disappointed.

Along with GE and McDonald's, the Dow's advance was limited by Verizon Communications Inc (VZ.N). GE shares fell 2.2 percent to $19.95 while Verizon lost 2.3 percent to $36.91 and McDonald's was off 1.9 percent at $76.91.

Factory activity in the U.S. Mid-Atlantic region slowed sharply in April and the number of claims for unemployment insurance fell less than expected last week, implying the economy was struggling to regain momentum.

"That claims didn't decline as much and (factory activity) cooled down suggests that we could be more likely for a pullback," said Donald Selkin, chief market strategist at National Securities in New York. "I don't see how we can maintain these gains."

The Dow Jones industrial average .DJI was up 52.45 points, or 0.42 percent, at 12,505.99. The Standard & Poor's 500 Index .SPX was up 7.02 points, or 0.53 percent, at 1,337.38. The Nasdaq Composite Index .IXIC was up 17.65 points, or 0.63 percent, at 2,820.16.

The Dow climbed as high as 12,506.06, its highest intraday level since early June 2008.

For the week, both the blue-chip index and the S&P 500 are up 1.3 percent while the Nasdaq, lifted by strong tech results, rose 2 percent.

Other notable companies, including Travelers Cos Inc (TRV.N), Morgan Stanley (MS.N) and UnitedHealth (UNH.N), advanced following quarterly results.

Travelers gained 3.7 percent to $61.32 and was the Dow's top gainer while Morgan Stanley rose 1.7 percent to $26.48, DuPont added 1 percent to $55.91 and UnitedHealth rose 8.1 percent to $47.81.

Biogen Idec (BIIB.O) was the S&P 500's top gainer, up 15.2 percent at $99.70, after it released promising data from a clinical trial of an experimental multiple sclerosis drug.

About two stocks rose for every one that fell on the New York Stock Exchange, while on the Nasdaq, about three stocks rose for every two that fell. - Reuters

NYSE board rejects sweetened Nasdaq, ICE bid

NEW YORK: NYSE Euronext (NYX.N) directors rejected as too risky and lacking value a sweetened takeover offer from Nasdaq OMX Group (NDAQ.O) and IntercontinentalExchange (ICE.N), the second time in 11 days the board backed a lower bid from Germany's Deutsche Boerse AG (DB1Gn.DE).

This week's revised bid "is substantially the same as what was previously rejected," NYSE Euronext Chairman Jan-Michiel Hessels said in a statement on Thursday, April 21.

In similar language to the board's first rejection on April 10, Hessels said the new offer "does not provide compelling value, has unacceptable execution risk and is therefore not in the best interests of NYSE Euronext shareholders."

Though the decision was expected, it could further pave the way for a bidding war, and it reinforces the need for Nasdaq and ICE to convince NYSE shareholders that their proposal can survive a tough U.S. antitrust review.

Hours after the board's decision, Nasdaq and ICE issued a statement repeating that their bid was superior and that they would continue direct discussions with shareholders.

"Nasdaq OMX and ICE have directly met each of the specific concerns initially raised by NYSE Euronext's board and their response is now vague generalities unsupported by the actual facts," the exchanges said.

The NYSE board reaffirmed its support for a friendly $9.8 billion takeover offer from Deutsche Boerse. Though it is 14 percent lower than the unsolicited $11.2 billion offer from Nasdaq and ICE, NYSE Euronext argues it fits with the company's strategy to grow internationally with more diverse revenues.

Nasdaq and ICE bid for the New York Stock Exchange parent company on April 1. On Tuesday, they promised to pay NYSE Euronext $350 million if regulators blocked a merger -- a pledge meant to ease the board's antitrust worries and draw them to the negotiating table.

The pair -- which were left out of a wave of global merger plans among exchanges earlier this year -- said they secured committed financing for the deal from banks, and said antitrust regulators would start a review soon.

STANDING FIRM

The battle for the Big Board has grown increasingly bitter, and its outcome could revamp ownership of many of the largest market operators in Europe and the United States.

Both offers face tough regulatory reviews on both sides of the Atlantic, complicating things for investors betting on which bid, if any, will prevail.

While NYSE Chief Executive Duncan Niederauer said on Monday competitors were trying to disrupt, distract and discredit his company, Nasdaq CEO Robert Greifeld said on Wednesday he will consider "all options available" as he and ICE pursue NYSE to the "endgame."

"They're both pursuing their strategies, and right now you're seeing the NYSE board stand firm," said Richard Repetto, analyst at Sandler O'Neill. "But if you take Greifeld at his word, and there's no reason not to, he's in it for the long run."

Greifeld -- like Niederauer known as an aggressive deal-maker -- said in a statement on Thursday that he and ICE would not be "deterred by the board's attempts to protect an inferior transaction."

In a separate statement, Deutsche Boerse said it is moving ahead with integration planning. It called Nasdaq and ICE's proposal "lacking in business logic" and "a major step backward in the evolution of the global exchange industry."

NYSE shareholders are set to meet on April 28 for their annual vote on the company's directors. "The way the vote goes will be a modest referendum on how the shareholders feel about the board's decisions," Repetto said.

The shareholders will likely vote on the Deutsche Boerse tie-up in July. - Reuters

Dollar tumbles broadly; all-time lows in sight

NEW YORK: The dollar tumbled for a third straight day on Thursday, April 21 as record low interest rates and the crushing weight of the U.S. budget deficit pushed it closer to an all-time trough against major currencies.

The dollar's slide accelerated days after Standard & Poor's slapped a negative outlook on the United States' top AAA credit rating. The agency said a downgrade was possible if authorities can't slash the massive U.S. budget deficit within two years.

Investors -- from fund managers to foreign central banks that hold trillions of dollars in assets -- reacted by opting for anything but the dollar.

"The combination of loose monetary policy and chaos on the fiscal front has people very worried," said Boris Schlossberg, head of research at GFT Forex in New York. "That fear is being reflected in the dollar."

Mohamed El-Erian, co-chief investment officer of top bond manager PIMCO, which has $1.2 trillion under management, said: "Absent problems elsewhere in the world, history and economics suggest that America's current fiscal and monetary policy stance will put continued pressures on the dollar."

The dollar index, a gauge of the greenback against six advanced country currencies, fell to 73.735 .DXY, its lowest level since August 2008. Analysts said that sets up a possible run toward its record low of 70.698 touched in March 2008.

The euro soared to a 16-month high above $1.46 before easing to $1.4550, while the dollar fell 0.7 percent to 81.89 yen. The Australian dollar rose above $1.07, its highest in nearly three decades, as Australia's 4.75 percent interest rate and its role as a supplier of raw materials to booming Asian markets attracted investors.

Some investors fear a fragile U.S. economic recovery could sputter if the White House and Congress agree to cut the deficit with significant spending cuts or tax hikes. That would likely force the Federal Reserve to hold interest rates at record lows even as other central banks raise them.

"There is no clear sign that the U.S. is going to raise interest rates, and that is causing the dollar to depreciate by the day," said Jonathan Xiong, who helps manage about $30 billion at Mellon Capital Management in San Francisco.

Underwhelming employment and manufacturing data on Thursday underlined the sluggish nature of the U.S. recovery and the difficulty facing the Fed, traders said.

STRONG DOLLAR POLICY?

The European Central Bank raised interest rates this month for the first time since 2008 and is expected to do so again. Investors also expect currencies in China and other emerging markets to rise more quickly as authorities start relying more on stronger exchange rates to offset inflation.

Analysts said the euro was on course for a move toward $1.50 if the current momentum continues, despite the possibility of a Greek debt restructuring.

Talk that China may invest in Spain had investors shrugging off worries for now about euro zone debt.

"I don't think the U.S. is actively seeking a weaker dollar, but they're not unhappy with it either," Brown Brothers Harriman strategist Win Thin told Reuters Insider. "At the margins, it certainly helps exports and helps growth. As long as asset markets hold up, I think they're OK with this."

But some global investors may not keep blindly buying U.S. assets that carry increasingly more risk but persistently low returns.

"At some point along the line, people are going to realize it's absurd to lend money to the United States government at 30 years in U.S. dollars at 3 or 4 or 5 or 6 percent interest," influential investor Jim Rogers told Reuters Insider.

While, the 30-year Treasury bond yield remained historically low at 4.47 percent, debt-strapped euro zone countries such as Greece have to pay nearly four times that just to borrow money for five years. - Reuters

Maybank successfully prices S$1b subordinated notes

KUALA LUMPUR: MALAYAN BANKING BHD [] has successfully priced its S$1 billion subordinated notes (SGD Subordinated Notes), its maiden issue under the US$2 billion Multicurrency Medium Term Note Programme (MTN).

The MTN programme was jointly arranged by The Hongkong and Shanghai Banking Corporation Limited (HSBC),Maybank Investment Bank Berhad and Standard Chartered Bank (SCB).

In a statement Thursday, April 21, Maybank said the SGD Subordinated Notes was the largest single tranche transaction for a Malaysian borrower in Singapore and received overwhelming response from investors, resulting in over subscription of 1.7 times.

Maybank president and CEO Datuk Seri Abdul Wahid Omar said the bank was pleased with the outcome of the transaction.

'The strong support and demand from the investors as evidenced by the benchmark S$1 billion issue size demonstrates investors' confidence in the bank's performance and prospects, its prudent capital management, sound asset quality as well as its continued market leadership and franchise as Malaysia's leading financial institution and an emerging regional leader,' he said.

The SGD Subordinated Notes was structured on a 10 Non-Call 5-year basis and was priced at 3.80% and will qualify as Tier-2 Capital for Maybank.

Maybank said that as this was a subordinated issue, the rating assigned was BBB+ by both Standard & Poor's Rating Services and Fitch Ratings.

The SGD Subordinated Notes are jointly lead managed by DBS Bank Ltd, HSBC, Kim Eng Securities Pte. Ltd, Oversea-Chinese Banking Corporation Limited and SCB.

The proceeds raised from the SGD Subordinated Notes will be utilised to fund Maybank's working capital, general banking and other corporate purposes.

The settlement date of the issue is April 28, 2011.

RAM Ratings cautious about Star Publications' new investments

KUALA LUMPUR: RAM Rating Services Bhd is cautious about STAR PUBLICATIONS (M) BHD []'s new new investments may pose new risks to the group.

The ratings agency said on Thursday, April 21 that in the near term, the group 'may invest some RM60 million in new media assets', that is television channels, radio stations, online media and event organising.

'The group is expected to incur losses from some of these investments during their respective gestation periods given that they are fairly new businesses.

'In addition, Star lacks experience in the TV segment, which is viewed to be more competitive than its mainstay newspaper business,' it said.

RAM Ratings assigned respective preliminary long- and short-term ratings of AA1 and P1 to Star's proposed up to RM750 million medium-term notes (MTN) programme (2011/2026) and proposed up to RM750 million commercial papers programme (2011/2018); both facilities have a combined limit of RM750 million in nominal value.

Concurrently, RAM Ratings reaffirmed the AA1/P1 ratings of STAR's RM350 million commercial papers/MTN programme (2005/2012). Both long-term ratings have a stable outlook.

It said the ratings reflect Star's dominant market position and robust financial profile. The Group's flagship daily, The Star, remains the clear leader in the local English-language newspaper market, supported by its strong circulation and readership bases.

RAM Ratings said Star's balance sheet and cashflow-protection metrics remained strong as at end-December 2010; its gearing ratio had more than halved to 0.09 times (end-December 2009: 0.23 times), underscored by a lighter debt load.

At the same time, Star retained its net-cash position. Led by its lower borrowings and stellar operating performance amid a more robust advertising market in 2010, the group's funds from operations debt cover (FFODC) catapulted from 0.70 times to over 2 times.

However, the ratings agency said the ratings remained constrained by the group's susceptibility to economic cycles, its vulnerability to newsprint price volatility and the increasing prominence of other media platforms.

While print advertising expenditure (adex) has expanded, TV and radio adex has been rising more rapidly.

Circulation and readership of English-language newspapers have also been declining (although at a slower pace than in more developed nations).

Nonetheless, it said print will remain relevant in the eyes of Malaysian advertisers, at least in the medium term.

'Even factoring in additional borrowings for its investments, capital expenditure for the possible development of the Star media hub in Shah Alam and working capital, we expect the group to continue exhibiting conservative gearing levels and sturdy debt-coverage ratios.

'Star's gearing ratio is expected to be kept at around 0.3'0.4 times while its FFODC is envisaged to slip, albeit remain favourable at a minimum of 0.5 times over the next two years,' said RAM Ratings' head of consumer & industrial ratings Kevin Lim.

Firefly offers return check-in facility from today

KUALA LUMPUR: Community airline Firefly now offers return check-in facility for passengers who travel on the same day.

In a statement today, the company said that for return check-in during same day travel, passengers must personally check-in for both sectors, to and fro, at the originating route, with no check-in luggage for the return sector.

Its head of marketing and communications, Angelina Fernandez, said: "We are confident that this service is going to be popular, primarily among business travelers as they can now avoid queues at check-in counters when returning.

"Our passengers can also enjoy this facility with no cost, plus will secure more personal time at their destination with no rush to the airport, especially during peak hours of the day.' ' Bernama

Petronas signs unitisation agreement with Malaysia-Thailand Joint Authority

KUALA LUMPUR: Petroliam Nasional Bhd has a unitisation agreement with the Malaysia-Thailand Joint Authority (MTJA) for the gas field straddling across Block PM 301 in the northeast coast of Peninsular Malaysia and Block A-18 in the Malaysia-Thailand Joint Development Area.

In a statement Thursday, April 21, Petronas sad the agreement for the Bumi field in Block PM 301 and the Bumi South field in Block A-18 firmed up the heads of agreement signed between the two parties in January 2008.

'The unitisation agreement gives Petronas rights to the reserves in the unitised area, which has an estimated ultimate recovery of 1.252 trillion standard cubic feet of gas.

'The agreement augurs well with Petronas' efforts towards ensuring the sustainability and security of national gas production and supply,' the national oil company said.

At the the signing ceremony for the unitisation agreement held in Kuala Lumpur today, Petronas was represented by its vice president of petroleum management Ramlan A. Malek, and MTJA by its CEO Suriyan Aphiraksatyakul.

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FBM KLCI slips below 1,530-level at close

KUALA LUMPUR: The FBM KLCI fell below the crucial 1,530-point level on Thursday, April 21 as local investor sentiment was dampened by the rising domestic inflation.

The benchmark index was the worst performer among the key regional markets that rose on the back of the firm overnight close at Wall Street riding on strong US corporate earnings.

At 5pm, the FBM KLCO fell 0.31% or 4.69 points to 1,526.33, weighed by losses including at DiGi, BAT, KLK, Petronas Dagangan and UMW.

Gainers led losers by 354, while 285 counters traded unchanged. Volume was 1.37 billion shares valued at RM1.54 billion.

MIDF Research said that as opposed to the regional market, the local bourse was less appetising and that this could be attributed to the March inflation data that rose by 3.0% year-on-year, signaling more rate hikes in the pipeline.

'This may have provided some room for switching from equities to non-equities as the ringgit to the US dollar is seen to be strengthening,' it said.

Among the top losers today, DiGi fell 38 sen to RM28.82, BAT 30 sen to RM47.48, KLK 20 sen to RM20.70, VisDynamics 10 sen to RM15.82, NSOP 13 sen to RM5.31, Kluang, Lafarge Malayan Cement and UMW fell 11 sen each to RM2.69, RM7.25 and RM7.08, while Riverview lost nine sen to RM2.87.

Gainers included Tradewinds that rose 27 sen RM7.94, Jerneh 18 sen to RM3.33, Tricubes 15.5 sen to 31.5 sen, Tan Chong 15 sen to RM4.55, while Paramount, United Malacca and Guan Chong added 13 sen each to RM5.63, RM6.97 and RM2.77 respectively.

Timber-related stocks advanced with Ta Ann up 25 sen to RM6.48, Subur Tiasa up 14 sen to RM3.22, Jaya Tiasa 11 sen to RM6.42, WTK 10 sen to RM1.97, Lingui up nine sen to RM1.94 and Leweko 1.5 sen to 23.5 sen.

Asia Media was the most actively traded counter with 61.45 million shares done. The stock added 2.6 sen to 32.5 sen.

Other actives included Tricubes, DBE Gurney, Seal, Technodex, Karambunai, Leweko and ConnectCounty.

At the regional markets, Japan's Nikkei 225 rose 0.82% to 9,685.77; Hong Kong's Hang Seng Index was up 1.01% to 24,138.31, the Shanghai Composite Index added 0.65% to 3,206.67, Taiwan's Taiex jumped 1.64% to 8,957.65, South Korea's Kospi added 1.32% to 2,198.54 and Singapore's Straits Times Index gained 0.91% to 3,194.73.

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MHS Aviation seals RM3b, 10-yr helicopter services contract with O&G firms

KUALA LUMPUR: MHS Aviation Bhd has sealed a RM3 billion contract to provide helicopter services for oil and gas companies operating in Malaysia over 10 years until March 31, 2011.

The contract was signed on Thursday, April 21, between officials from MHS and Petronas Carigali Sdn Bhd, ExxonMobil Exploration and Production Malaysia Inc and Newfield Peninsular Malaysia Inc.

The contract has an option to extend to March 31, 2026. MHS will be providing its services to more than 100 offshore oil rigs and installations via Kerteh Airport, Terengganu.

MHS started operations in 1983 and is the leading provider of helicopter transport services, emergency medical services as well as search and rescue for Malaysia's oil and gas industry.

It also charters aircraft including helicopters and aeroplanes as well as providing flight training, engineering and technical services.

BAT 1Q net profit dips 6.95% to RM178.56m

KUALA LUMPUR: British American Tobacco (Malaysia) Bhd net profit for the first quarter ended March 31, 2011 fell 6.95% to RM178.56 million from RM191.89 million a year earlier, on the back of lower volumes and a decline in profit from operations.

Revenue for the quarter declined to RM992.15 million from RM1.02 billion in 2010. Earnings per share was 62.50 sen while net assets per share was RM1.72.

BAT declared a first interim dividend of 60 sen per share, tax exempt under the single-tier tax system amounting to RM171.32 million in respect of the financial year ending Dec 31, 2011.

Reviewing its performance, BAT said on Thursday, April 21 that its volumes declined by 7.5% year-on-year in 1Q due to the steep excise increase in October 2010.

It said revenue declined by 2.6% as a result of lower volumes and unfavourable pack size mix with the ban on packs less than 20 sticks, which was partially offset by higher excise and pricing.

'The group's profit from operations only declined by 6.7% as the lower net turnover and higher packing costs for the Dunhill Reloc pack was partially offset by lower marketing expenditure due to absence of Dunhill Reloc launch activities and lower IT expenses,' it said.

On its prospects, BAT said its profit outlook for 2011 remains cautious given volume declines from steep excise increase, lower margins from the ban of packs less than 20 sticks and continuing high incidence of illicit trade.

'We remain committed to building long term shareholder value through our aligned strategic initiatives on growth, productivity, responsibility and winning organisation,' it said.

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#Flash* Tenaga 2Q earnings dn 37% to RM630m, sees challenging year

KUALA LUMPUR: TENAGA NASIONAL BHD []'s (TNB) earnings fell 36.9% to RM630.30 million in the second quarter ended Feb 28, 2011 from RM1 billion a year ago as it was impacted by higher coal prices and forecast a challenging year ahead.

TNB said on Thursday, April 21 that its revenue was a marginal 1.5% higher at RM7.503 billion from RM7.389 billion a year ago. Earnings per share were 14.2 sen compared with 23.05 sen while it declared a lower dividend of 4.5 sen per share.

SC charges 2 ex-Bestino officials over shares issuance which raised RM400m

KUALA LUMPUR: The Securities Commission charged two former directors of Bestino Group Bhd for not registering a prospectus when they issued'' redeemable preference shares (RPS) that raised RM400 million.

The SC said on Thursday, April 21 the duo charged were Chong Yuk Ming and''Balachandran A. Shanmugam.

It said the offence was committed between Nov 3, 2008 and June 16, 2009 at Bestino's office in Ipoh.

Under section 232(1) of the Capital Markets and Services Act 2007 (CMSA), a person shall not issue securities unless a prospectus in relation to that securities has been registered by the SC.

'Bestino is believed to have solicited approximately RM400 million from the issuance of redeemable preference shares to over 6000 individuals,' the SC said.

Chong Yuk Ming, 49, and Balachandran, 56, who were at that time directors of Bestino, committed the offence under section 232(1) read together with section 367(1) of the CMSA.

If convicted they will be liable to a fine not exceeding RM10 million or to imprisonment for a term not exceeding 10 years or both.

They were granted bail of RM300,000 with one surety. The court also impounded Balachandran's passport. The case is fixed for mention on June 1, 2011.

Kian Joo down 8c in late trade, weakening technical outlook

KUALA LUMPUR: Shares of Kian Joo Can Factory (KJCF) fell eight sen to RM2.30 in late afternoon rade on Thursday, April 21 on weakening technical outlook for its share price.

At 4.21pm, it was down eight sen to RM2.30 with 5.05 million shares done.

The FBM KLCI lost 2.43 points to 1,528.59. Turnover was 1.21 billion shares value at RM1.24 billion. There were 370 gainers, 375losers and 322 stocks unchanged.

CIMB Equities Research had a Sell on KJCF at RM2.38, at which it is trading at price-to-book value of 1.2 times.

It said KJCF had violated its support channel on Wednesday. If prices failed to bounce back above this trend line, there is a high possibility that the RM2.56 high would be its near term peak.

'The odds now favour the bears,' it said, adding indicators were showing signs of exhaustion. 'Only a rise above RM2.56 would warrant us to review our call,' it said.

BP sues Transocean for $40 billion over oil spill

NEW YORK: On the first anniversary of the Gulf of Mexico oil spill, BP Plc sued Transocean, seeking at least $40 billion in damages and other costs from the owner of the Deepwater Horizon rig.

London-based BP also sued Cameron International Corp for negligence, saying a blowout preventer made by Cameron failed to avert the catastrophe.

Both complaints were filed Wednesday, April 20 in federal court in New Orleans.

Eleven people died when the Deepwater Horizon rig exploded. About 4.9 million barrels, or more than 200 million gallons, of oil later flowed out of a subsurface BP well. BP has incurred tens of billions of dollars of liabilities from the disaster.

BP accused Transocean of negligence, saying it caused the drilling rig to be "unseaworthy."

"The simple fact is that on April 20, 2010, every single safety system and device and well control procedure on the Deepwater Horizon failed, resulting in the casualty," BP said.

Transocean called the lawsuit a "desperate bid" by BP to renege on a contract to assume full responsibility for pollution and environmental costs.

"This suit is specious and unconscionable," it said in a statement.

In a separate lawsuit, BP asked U.S. District Judge Carl Barbier, who oversees national litigation over the spill, to order Houston-based Cameron to reimburse it for "all or a part" of its damages.

"The blowout preventer failed to work and perform the function it was designed and manufactured to perform -- i.e., to secure the well," BP said. "The blowout preventer was flawed in design, and alternative designs existed that did not have these flaws."

BP said it took a $40.9 billion pre-tax charge in 2010 related to the spill, and by year end had incurred $17.7 billion of costs.

WEDNESDAY DEADLINE

In a statement on Wednesday, BP said it wants "to ensure that all parties involved in the Macondo well are appropriately held accountable for their roles in contributing to the Deepwater Horizon accident."

Cameron did not address the substance of BP's claims in an emailed statement, and said Wednesday was a deadline for companies tied to the spill to file claims against each other.

In one such case, cruise operator Carnival Corp filed claims against BP, Cameron, Transocean and several other companies connected to the well to recover damages for added fuel and vessel cleaning costs, as well as lost revenue from decreased bookings.

A Norwegian testing company concluded in a report issued March 23 that the blowout preventer's failure was caused by a stuck section of drill pipe that blocked cutting devices from shearing and sealing the leaking well. [ID:nN23265456]

That finding, in a report commissioned by the U.S. Interior Department and U.S. Coast Guard, is separate from earlier conclusions by a White House commission that oil industry and regulatory missteps set into motion events that led to the biggest offshore oil spill in U.S. history.

Last June, BP created a $20 billion compensation fund for spill victims including businesses, fishermen and property owners, with incentives for people who agree not to sue the company. Kenneth Feinberg, who oversees the fund, in an interview said it is "working as intended."

The case is In re: Oil Spill by the Oil Rig "Deepwater Horizon" in the Gulf of Mexico, on April 20, 2010, U.S. District Court, Eastern District of Louisiana, No. 10-md-02179. - Reuters

VisDynamics among major losers despite satisfactory outlook

KUALA LUMPUR: Shares of VISDYNAMICS HOLDINGS BHD [] fell sharply on Thursday, April 21, despite its chairman's positive view of a strong and satisfactory financial performance in 2011 though not as sterling as the six fold increase in revenue that enabled to group to return to the black last year.

At 4.37pm, it was down 23 sen to 30 sen with 204,800 shares done. However, it was off its early low of 26 sen.

The FBM KLCI was down 2.57 points to 1,528.45. Turnover was 1.29 billion shares valued at RM1.35 billion. There were 385 gainers, 385 losers and 310 stocks unchanged.

Chairman Datuk Azzat Kamaludin said the semiconductor equipment solution provider is poised to ride on the momentum of growth that the semiconductor industry is expected to sustain this year after recording the strongest rebound in 2010 following the worst ever year of 2009.

The semiconductor industry rebounded from a 10% decline in revenue in 2009 to make the largest single dollar increase in any year for revenue to top US$300 billion. The more than 30% revenue growth recorded in 2010 is not likely to be repeated this year with projections of a softer single-digit growth to about US$314 billion.

Azzat said on the back of the strong recovery of semiconductor and electronics business, VisDynamics posted a revenue of RM19.7 million which is an unprecedented increase of 516%.

Malaysian O&G service providers secure RM560m contracts in UAE

KUALA LUMPUR: Malaysian oil and gas (O&G) services providers secured RM560 million in sales while another RM585 million in potential sales are under negotiations during a recent trip to the United Arab Emirates (UAE), Oman and Kuwait.

Malaysia External Trade Development Corporation (Matrade) said on Thursday, April 21 the specialised marketing mission from March 28 to April 5, covered the services and process equipment for the O&G sector.

'The sales covered engineering, procurement, CONSTRUCTION [] & commissioning (EPCC) services and process equipment for the oil and gas sector including fire-resistant doors, windows, roller shutters and partitions,' said Matrade.

Other products and services that attracted interest from Middle East O&G companies included garment products, offshore marine and logistics services, forged steel pipe flanges, flanged branch fittings, branch outlet fittings, clamp connectors and compact flanges as well as gaskets.

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Telekom Malaysia's RM2b debt facilities to raise gearing to 1.12 times

KUALA LUMPUR: RAM Rating Services Bhd said TELEKOM MALAYSIA BHD []'s (TM) proposed RM2 billion debt facilities will see its gearing ratio peak at 1.12 times by end-2012 with a RM7.53 billion debt load before tapering off.

The ratings agency said on Thursday, April 21 this is assuming a full drawdown of the debt facilities, which are solely for capital expenditure, by 2012.

It said the additional borrowings will affect TM's balance sheet (on a pro-forma basis) and increase the gearing ratio from 0.70 times and RM5.53 billion of debts as at end-2010.

RAM Ratings had assigned final short- and long-term ratings of P1 and AAA to TM's respective proposed Islamic commercial papers programme and Islamic medium-term notes programme, with a total combined limit of RM2 billion; the long-term rating has a stable outlook.

'The ratings reflect the Group's strong credit profile, underpinned by its strategic importance as the national telecommunications company and healthy financial profile. TM boasts a strategic and prominent position within Malaysia's telecommunications industry, with a near-monopoly over the fixed-line telephony business (a market share of more than 90%).

'Meanwhile, it has maintained its leadership in the fixed broadband space, commanding about 80% of this market, supported by its 1.68 million Streamyx subscriber base as at end-December 2010,' it said.

However, RAM Ratings said the maturity of the voice market is still challenged by consumers' substitution of fixed-line services in favour of cellular and Internet-based communications.

Competition is also increasing in the broadband scene, particularly from the robust growth of wireless broadband, attributable to rapidly evolving mobile TECHNOLOGY [] and ongoing handset innovations.

'Despite this, we expect TM's broadband base to expand steadily given its comprehensive network and ability to capitalise on its voice-based clientele to support the take-up of its data offerings. Notably, the take-up of high-speed broadband (or Unifi) has been growing at a steady pace, with 51,000 customers as at end-February 2011,' it said.

TM's financial position is characterised by its relatively stable revenue and cashflow as well as strong debt-coverage levels.

Proton ready for FTA, auto sector liberalisation

PUTRAJAYA: National carmaker PROTON HOLDINGS BHD [] will be ready for the challenges and opportunities when the planned liberalisation of the domestic automotive industry and various free trade agreements (FTAs) come into play, said Proton Edar Sdn Bhd CEO Mohamad Shukor Ibrahim.

"We recognise that the market is going to be liberalised and there is a lot of ongoing activity in the company to enhance processes, operations, product quality, sales and services.

"We take the challenge. We will do what is necesary," Shukor said to a question at a press conference on Thursday, April 21 after launching the ATF-XP3 automatic transmission fluid for Proton cars

The ATF-XP3 is the first lubricant based product following a collaboration between Proton and Petroliam Nasional Bhd.

With the FTAs, Shukor also said that Proton was capable of collaborating with partners in Japan and China to supply parts given Proton's competitive cost structures, adding that the FTAs should not only be viewed as endangering domestic carmakers.

The various FTAs signed between Malaysia and Japan, South Korea and China respectively will come into effect by 2019, giving foreign car companies access to Malaysia from foreign car companies equal treatment accorded to cars imported from Southeast Asia.

Mclean to raise RM8m from IPO, offers 15.4m new shares at 52c each

KUALA LUMPUR: Mclean Technologies Bhd plans to raise RM8 million from its listing exercise which involves the public issue of 15.4 million new shares at an offer price of 52 sen each.

Mclean, which is a precision cleaning service provider for hard disk drives (HDDs) in Singapore, said on Thursday, April 21 that the public issue of the new shares would include 7.70 million free new warrants.

Of the 15.4 million new shares, Mclean said 2.70 million new shares, together with 1.35 million free new warrants would be offered to the public.

It said 8.60 million new shares, together with 4.30 million free new warrants would be placed out while the remaining 4.10 million new shares, together with 2.050 million free new warrants would be offered to the business associates of MClean.

Mclean is seeking to list on the ACE Market of Bursa Malaysia Securities Bhd and the tentative listing date is May 10.

Speaking at the release of its prospectus, Mclean executive chairman Jason Yeo said the RM8 million to be raised from the listing exercise would be used for capital expenditure and working capital purposes, as well as to defray expenses related to the listing.

Yeo added the flotation exercise showed the company's aggressiveness to generate more capital and resources to ensure the growth momentum continues.

'This shows that our company is ready and poised to exceed expectations. The proceeds raised from the IPO to be utilised for capital expenditure and working capital purposes are expected to drive our future growth,' he said.

Timber-related stocks rise as interest rekindled

KUALA LUMPUR: Timber-related stocks, which had surged in the aftermath of the Japan earthquake last month on expectations of rising demand, and subsequently sold down ahead of the Sarawak elections, were back on investor's radar on Thursday, April 21.

At 3pm, Ta Ann rose 29 sen to RM6.52, Subur Tiasa 20 sen to RM3.28, Jaya Tiasa 11 sen to RM6.42, Lingui eight sen to RM1.93, WTK seven sen to RM1.94 and Leweko 1.5 sen to 23.5 sen.

An analyst with a bank-backed research house said Sarawak-based timber stocks had been sold down ahead of the state elections owing to uncertainties during the campaign period.

'But now with the Barisan Nasional government firmly in power, there are no more uncertainties and investors are looking to picking up these oversold stocks again,' he said.

Affin Research maintains Buy on Tenaga, unch FV RM7.20

KUALA LUMPUR: Affin Investment Research is maintaining its Buy on TENAGA NASIONAL BHD [] (TNB) with an unchanged fair value of RM7.20 target price, based on a 10% discount to DCF of RM8 a share (discount rate 7%; growth rate 3%.

It said on Thursday, April 21 that TNB's recent RM107 million investment for a 22% stake in Integrax was purely to facilitate the operational efficiency of the group's wholly-owned Manjung coal-fired power plant.

Integrax owns Lumut port ' which comprises of two terminals, that is the Lekir Bulk Terminal (LBT) and Lumut Maritime Terminal (LMT). LBT contributes more than 90% of Integrax's earnings and provides coal handling and coal delivery services to TNB's Manjung power plant.

Affin Research said to ensure Manjung's power plant reliability, coal procurement, shipment and storage chain process will have to be seamlessly integrated.

It said for example, Manjung pays LBT a fixed and variable rate (spelled out in the 25-year 'concession like' Jetty Terminal Usage Agreement) amounting to about RM85 million per annum. This amount is small ' just 6% of the actual annual coal cost of about RM1.5 billion (based on five million tonnes of coal usage per annum x US$100 per tonne.

Despite the small cost involved in unloading the coal, any disruption in the chain process will ultimately affect the power plant's availability and reliability. In essence, LBT is Manjung's only viable mean of unloading the coal to meet its plant requirements.

'Thus, the above investment is seen to enhance fuel security for the Manjung power plant, especially crucial now that it undergoes a further 1 x 1,00MW capacity expansion ' scheduled to come on-stream by March 2015,' it said.

Affin Research said whilst Manjung is Integrax's single largest customer, TNB has no legal right to use the Lumut jetty. The jetty's legal owner lies with LBT. Thus, hypothetically speaking, Manjung's coal-handling process could potentially face capacity constraint and risk being de-prioritised should LBT have gone ahead with Vale's iron ore transhipment proposal (apparently terminated in 4QFY10).

The research house said whilst it does not believe that the Integrax investment was dearly required, it obviously can help ensure that Manjung remains a key priority to LBT and Integrax.

Celcom Axiata to launch iPhone 4 on Friday

KUALA LUMPUR: Celcom Axiata Bhd will launch the iPhone 4 in Malaysia on Friday, April 22 with a range of plans tailored for iPhone customers.

The company said on Thursday the iPhone 4 feature Apple's Retina display which results in crisp text, images and video, and FaceTime, which makes video calling a reality.

Its chief executive officer Datuk Seri Shazalli Ramly said: "With our network upgrades in place and with our unbeatable price plans, Celcom is able to deliver the best possible iPhone 4 experience to our customers.'

iPhone 4 is powered by Apple's A4 chip and features a 5 megapixel camera with LED flash, HD video recording.

iPhone 4 comes with iOS 4, the world's most advanced mobile operating system. The revolutionary App Store provides access to more than 350,000 apps including the iMovie app built just for iPhone 4.