Japan lower house passes emergency budget for quake relief

TOKYO: Japan's lower house of parliament passed an emergency budget on Saturday worth 4 trillion yen (US$48.5 billion) for rebuilding after the devastating March 11 earthquake and tsunami, a downpayment on the country's biggest public works effort in six decades.

The budget is expected to pass into law on Monday when the upper house of parliament votes on it. Lawmakers in the opposition parties that control the upper house have said they will back the first round of spending to finance such work as clearing rubble in the disaster-stricken northeast and building temporary housing for those who have lost their homes.

The emergency budget, which is likely be followed by more reCONSTRUCTION [] spending packages, is still dwarfed by the overall cost of damage caused by the March 11 earthquake and tsunami, estimated at US$300 billion.

Reaching agreement on subsequent packages is likely to be much tougher as they are expected to involve a mix of taxes as well as borrowing in the bond market, which could strain Japan's economy, already struggling with public debt twice the size of the US$5 trillion economy.

Unpopular Prime Minister Naoto Kan's Democratic Party controls parliament's lower house but needs opposition help to pass bills because it lacks a majority in the upper chamber, which can block legislation.

Kan, who has come under fire for his handling of the crisis, has said Japan may have to issue fresh government bonds to fund any more supplementary budgets.

If he is unable to steer those budgets through parliament, he may be forced to step down, some analysts say.

Nearly a quarter of respondents to a Kyodo news agency poll released on Saturday called for Kan to resign immediately, up about 10 percentage points from a similar survey last month. More than three-quarters said Kan is not exercising leadership in dealing with the crisis.

The magnitude 9.0 earthquake and 15-metre (50-ft) tsunami that followed threw Japan into its deepest crisis since World War Two, killing about 14,700 people and leaving some 11,000 more missing, and destroying tens of thousands of homes.

It also crippled a nuclear power plant in Fukushima, 240 km (150 miles) north of Tokyo, that began leaking radiation, a situation the plant's operator says could take all year to bring under control.

In the latest blow to Kan, one of his advisers on the nuclear crisis resigned in tears on Friday in protest at what he called the government's haphazard handling of the situation.

"The prime minister's office and administrative organisations have made impromptu policy decisions, like playing a whack-a-mole game, ignoring proper procedures," adviser Toshiso Kosako, a professor of antiradiation safety at the University of Tokyo's graduate school, told a news conference. ' Reuters

BOJ Shirakawa: Japan economic outlook 'very severe'

TOKYO: Bank of Japan Governor Masaaki Shirakawa said on Saturday that the Japanese economic outlook was very severe and that the central bank would take the appropriate action to support the economy.

Shirakawa made the comments at a financial committee meeting in the lower house of parliament.

The Bank of Japan kept monetary policy unchanged on Thursday even as it lowered its growth forecasts and estimated that the economy tipped into recession early this year, disappointing analysts who felt that the grim data since last month's devastating earthquake called for more policy easing. ' Reuters

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Chin Teck 2Q net profit up 36% to RM13.83m

KUALA LUMPUR: CHIN TECK PLANTATION []S BHD [] net profit for the second quarter ended Feb 28, 2011 rose 36.3% to RM13.83 million from RM10.14 million a year earlier, driven by higher average selling prices for fresh fruit bunch (FFB), crude palm oil (CPO) and palm kernel.

Revenue for the quarter rose to RM28.93 million from RM22.97 million in 2010. Earnings per share was 15.14 sen, while net assets per share was RM6.27.

For the six months ended Feb 28, Chin Teck's net profit rose to RM29.98 million from RM24.54 million on the back of revenue RM59.93 million.

Reviewing its performance, Chin Teck said on Friday, April 29 that during the six months ended Feb 28, the average selling prices for its products were substantially higher despite significantly lower production of FFB, CPO and palm kernel.

It also said other income was substantially higher due mainly to an amount of gain on foreign, increase in interest income as well as profit contribution from its joint ventures.

On its prospects for the current financial year, Chin Teck said the average selling price of FFB, CPO and palm kernel were expected to remain steady this year.

EONCap chairman: RM311.9m dividend secured after much negotiations with HL Bank

KUALA LUMPUR: EON CAPITAL BHD [] said the board of directors had secured the additional payment of RM311.9 million after much negotiations with HONG LEONG BANK BHD [] (HL Bank).

EONCap chairman Gooi Hoe Soon said on Friday, April 29 the directors intended to manage this transaction fairly and equitably to all parties concerned, especially enhancing shareholders value for all shareholders.

'The additional interim dividend payment is in addition to the offer price of RM5.06 billion and was secured after much negotiation with Hong Leong Bank, and we're pleased with the result,' he said.

EONCap announced on Friday that EON Bank Bhd has proposed a dividend of RM311.94 million, translating into 44.9 sen per share, but to be paid to its parent, EONCap.

The proposed interim dividend was a surprise when EONCap announced to Bursa Malaysia early Friday it had accepted HL Bank's offer of RM5.06 billion or RM7.30 per share.

EONCap also said HL Bank confirmed it had no objection to EON Bank Bhd declaring and paying the interim net dividend upon receipt''of the approval from Bank Negara Malaysia.

EONCap announced on Friday it had accepted HL Bank's offer to acquire the entire assets and liabilities of EONCap for RM5.06 billion following a High Court decision on Thursday which dismissed a petition filed by Primus (Malaysia) Sdn Bhd which had opposed the takeover.

The transaction, when completed, which will result in Hong Leong Bank becoming the fourth'' largest banking group in Malaysia, had earlier been approved by a majority of EONCap shareholders who had passed a resolution in favour of the move at EONCap's EGM in September 2010.

Shareholders' approval had been subject to a final decision being made by the High Court which has now dismissed the petition by Primus with costs.

In the latest development, Primus had on Friday served on EONCap's'' solicitors a notice of appeal to the Court of Appeal. The move was to appeal against the decision of the High Court handed down on Thursday.

On the interim net dividend of RM311.9 million subject to the approval from Bank Negara Malaysia, Gooi said HL Bank had agreed to the interim dividend payment not being deducted from its offer price.

'The directors intend to manage this transaction in a manner that is fair and equitable to all parties concerned, especially enhancing shareholders value for all shareholders,' he said.

Gooi said EONCap believed all stakeholders would be well-served by this move which would see the enlarged entity not only become a larger banking group with total assets in excess of RM140 billion 'but it shall also be a stronger force in the regional banking arena.'

Gooi said that this move was also in line with the ongoing consolidation of the banking industry in the country and the boards of both banks will collaborate to achieve a successful transition.

'EONCap's solid foundation has been built on developing close relationships with our employees and customers, coupled with in-depth knowledge of the local market and core business segments. It goes without saying that our performance particularly in recent years has been due to the integrated effort of a strong team of people who have done good work for the Bank.'

'We are also making every effort to ensure that the transition will have minimum impact on our employees and customers by making it as smooth as possible,' he said.

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BLand unit sells 2.69m BToto shares for RM11.36m cash

KUALA LUMPUR: BERJAYA LAND BHD []'s unit Gateway Benefit Sdn. Bhd disposed of 2.698 million BERJAYA SPORTS TOTO BHD [] shares in the open market on Thursday, April 28 for RM11.26 million or at an average selling price of RM4.21 each.

BLand said on Friday the disposed shares represented about 0.2% equity interests in BToto.

It said the disposals were at prevailing market prices. It said the shares which were purchased since 1992, had a total carrying value of about RM12.65 million in BLand group's books.

'The net proceeds from the disposals will be utilised as working capital and repayment of bank borrowings of the BLand group,' it said.

With the disposals, BLand and its unlisted subsidiaries hold 569.89 million BToto shares or 42.61%.

BERJAYA CORPORATION BHD [] and its unlisted subsidiaries also hold a total 137.99 million BToto shares or 10.32% in BToto.

With the disposals, the entire BCorp Group (including BLand Group) has 707.88 million BToto shares or about 52.93% of BToto shares.

Maybank opens 10th branch in Cambodia

KUALA LUMPUR: MALAYAN BANKING BHD [] officially opened its 10th branch in Cambodia on Friday, April 29 which would provide a full range of banking products and services.

The latest branch, which is in Kampung Cham, is about 125 km from Phnom Penh and close to the borders of Vietnam and Thailand.

With a population of about two million, Kampong Cham's economy is driven by a strong agro-based industry comprising mainly rubber factories and rice millers. Other key industries in the area include manufacturing and processing of wood and timber products.

Maybank said the branch was declared opened by the deputy governor of Kampong Cham, Lun Lim Thai. Among those present were the Ambassador of Malaysia to Cambodia, Datuk Pengiran Mohd Hussein, head of Maybank overseas operations Abdul Malek Mohd Khair and Country Head of Maybank Cambodia Jubely Pa.

Maybank deputy president & head of global wholesale banking, Abdul Farid Alias said the branch was ready to provide a full range of banking products and services. They include deposits, mortgage financing, working capital & trade financing, credit card encashment, ATM facilities and remittances.

He said the ATM facilities also linked with its regional network covering Malaysia, Singapore, Philippines and Brunei as well as Indonesia.

'Maybank ATM cardholders have the convenience of withdrawing cash at any of these locations without any charges as part of our regional ATM link,' he said.

Farid said the new branch was part of Maybank's regional business growth plan which aims to expand the Group's network in Cambodia to 11 branches by the end of 2011.

FBM KLCI pares down losses at close

KUALA LUMPUR: The FBM KLCI pared down its losses on Friday, April 29 ahead of the extended weekend, as investors went bargain hunting for select blue chips.

The 30-stock index closed just 0.02% or 0.35 point lower at 1,534.95. The index had earlier fallen to its intra-day low of 1,529.63.

Losers edged gainers by 394 to 337, while 331 counters traded unchanged. Volume was 852.37 million shares valued at RM1.26 billion.

At the regional markets, Hong Kong's Hang Seng Index and Taiwan's Taiex fell 0.36% each to 23,720.81 and 9.007.87, South Korea's Kospi lost 0.72% to 2,192.36 and Singapore's Straits Times Index fell 0.16% to 3,179.86.

The Shanghai Composite Index added 0.85% to 2,911.51, while Japan stock markets were closed for a national ahead.

On Bursa Malaysia, the top loser was Nestle that fell 22 sen to RM47.98; Shell lost 20 sen to RM10.90, Ta Ann and Pharmaniaga rose 15 sen each to RM6.50 and RM5.60, Kobay 13 sen to 75 sen, while Panasonic, Metal Reclamation and Genting fell 12 sen each to RM22.70, 83 sen and RM11.60 respectively.

Among the gainers, HLFG added 36 sen to RM10.26, Fima Corp 32 sen to RM6.38, MISC 30 sen to RM7.80, Glenealy 22 sen to RM5, United PLANTATION []s 20 sen to RM18, Sunway City 19 sen to RM4.84 and Focus Lumber 12 sen to RM1.30.

ConnectCounty was the most actively traded counter with 26 million shares done. The stock added one sen to 10 sen.

Other actives included Focus Lumber, HWGB, Iris Corp, Hubline, AirAsia and Axiata.

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MARC downgrades Dawama's RM20m debt notes to D

KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has downgraded the RM20 million debt notes of Dawama Sdn Bhd ' which has a concession to print school textbooks on behalf of Dewan Bahasa dan Pustaka.

The ratings agency said on Friday, April 29 it had lowered its rating on the Musyarakah Medium Term Notes Junior Sukuk to 'D' from 'CIS' to reflect missed profit payment on April 27, 2011 following notification from the Sukuk trustee that it has been instructed not to release any profit payment on the Junior Sukuk.

MARC said it would cease rating surveillance on the defaulted Junior Sukuk from Friday

As for the RM120 million senior debt notes, its rating remains unchanged at 'CIS' following confirmation from the trustee that Senior Sukukholders have consented to defer scheduled principal repayment of RM20.0 million on April 27 until Sept, 2011.

MARC said Dawama met its April 2011 profit payment on the Senior Sukuk.

'MARC understands that Senior Sukuk holders will be duly compensated for the overdue principal repayment,' it said.

The rating agency said it would continue to review management's ability to manage its cash flows through the next payment date. The rating will be lowered to 'D' in the event no payment is made on Sept 27, 2011.

Poser over EON Bank's declaration of RM311.9m dividend to EONCap

KUALA LUMPUR: EON Bank Bhd's declaration of the RM311.9 million dividend to its parent EON CAPITAL BHD [] (EONCap) on Friday, April 28 has been described as vague by analysts.

AmResearch said EON Cap's announcement 'is vague in the sense that it did not say what it intended to do with the net dividend of RM311.9 million that it would receive from EON Bank'.

'We are not able to get further indications from EONCap at this point,' it said.

EON Bank declared a dividend of RM311.94 million, translating into 44.9 sen per share, payable once it has received the approval from Bank Negara Malaysia. The amount is equivalent to 44.9 sen a share.

EONCap had also said it accepted HONG LEONG BANK BHD []'s offer of RM7.30 per share for the assets and liabilities ' totaling RM5.06 billion -- with no deduction for the payment of the proposed interim dividend.

On Thursday, the High Court dismissed with costs the suit filed by Primus (M) Sdn Bhd against certain shareholders and directors of EONCap over the proposed sale of the latter to HL Bank.

The decision came just ahead of HL Bank's April 30 deadline for securing shareholders' and regulatory approval for its proposed acquisition of EONCap's assets and liabilities for RM5.06 billion.

AmResearch, in its comments, maintained its BUY rating on HL Bank, with an unchanged fair value of RM12.20 a share.

'This is based on unchanged P/BV of 2.3 and calendarised 2011 ROE of 15.7%,' it said.

'The additional possible dividend does not change our valuation for HL Bank post the merger with EONCap, of at least RM14.10 a share. It could potentially reduce EONCap's book value, which means that HL Bank's acquisition P/BV would be 1.4 times instead of 1.3 times,' it said.

AmResearch said this merely raises the P/BV back to the same level when the acquisition was first approved. In addition, it increases the goodwill arising from the acquisition.

This changes the merged entity's capital ratios, with reductions of between 0.3ppt and 0.4ppt. However, the capital ratios are still within acceptable range.

With the approval from the board, the research now expected the takeover to proceed.

The conditions outstanding (notwithstanding appeals from Primus (M) Sdn Bhd) are Bank Negara's approval for the new additional net dividend of RM311.9 million, and the Securities Commission's approval for change in the holder of EONCap investment banking subsidiary's capital market services licence.

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Masterskill wins suit against Sistem Televisyen Malaysia

KUALA LUMPUR: Masterskill Education Group Bhd (MEGB) has won its suit against Sistem Televisyen Malaysia Bhd (STMB) over the visuals of its college on a TV3 news report about 60 colleges which had been deregistered.

MEGB said on Friday, April 29 the High Court had on Thursday held that MEGB's unit Masterskill (M) Sdn Bhd had successfully proven STMB during the TV3 Buletin Utama defamed Masterskill by''showing visuals of the Masterskill college.

The visuals were shown during the narration that 60 colleges had been deregistered even though this news had nothing to do with Masterskill group.

'The High Court found STMB (the defendant) liable for defamation''and''awarded damages of RM200,000 and costs of RM50,000 to Masterskill,' it said.

#Update* DiGi 1Q net profit RM331.39m, up 19%

KUALA LUMPUR: DIGI.COM BHD [] posted net profit of RM331.39 million in the first quarter ended March 31, 2011, up 19% from the RM278.25 million a year ago.

It said on Friday, April 29 that revenue rose 10.8% to RM1.43 billion from RM1.29 billion. Earnings per share were 42.6 sen versus 35.8 sen a year ago. It declared an interim dividend of 43 sen compared with 35 sen a year ago.

'The higher revenue was mainly contributed by increased usage from the larger subscriber base of 8.8 million (2010: 7.9 million), and more importantly increased data revenue which grew 38% year-on-year to RM361.7 million, as well as revenue contribution from handset-bundled offerings.

'Average revenue per user (ARPU) declined slightly to RM50 (2010: RM53); a result of new customers coming in at lower spend levels, competitive price pressure as well as reduced domestic interconnect revenue following the lower regulated mobile termination rate which took effect beginning July 2010,' it said.

DiGi said the group's earnings before interest, tax, depreciation and amortisation (EBITDA) and EBITDA margin at RM657.2 million and 45.9% respectively, were also higher than the RM575.8 million and 44.6% recorded a year ago.

The telco said it would continue to prioritise network modernisation initiatives to accelerate coverage and deliver higher speed, capacity, reliability and quality of service.

This will immediately result in major improvements of network quality and efficiency through significant increase in download speeds and better connectivity experience for customers. Further, this investment will ensure the successful delivery of long-term evolution services, the next-generation mobile TECHNOLOGY [] capable of delivering download speeds of up to 172 Mbps when spectrum becomes available.

DiGi chief executive officer Henrik Clausen said: 'We have seen a steady increase in demand for mobile Internet over the past few quarters, and have put in place a strong network transformation programme to continue delivering increased network quality, efficiency and coverage, to adequately meet our customers' demands in all parts of Malaysia.

'At present we have over 4.5 million internet users, and we foresee that demand for data services will continue to trend up going forward.'

On the prospects for the remaining quarters up to Dec 31, 2011, the company said the network modernisation programme would result in the replacement of existing equipment on its network.

'The board wishes to highlight that the group will undertake to accelerate depreciation related to these existing equipment in-line with generally accepted accounting practices (GAAP) beginning from next quarter,' it said.

DiGi added net profit would be impacted which would be corresponding to the quantum of accelerated depreciation to be reflected in its books over the next 21 to 33 months.

'The estimated accelerated depreciation will approximate RM400 million to RM450 million in 2011, RM500 million to RM550 million in 2012 and less than RM100 million in 2013,' it said.

It added this was subject to periodic reviews and re-assessment; of which the board will notify the market accordingly.

DiGi said the accelerated depreciation would not have any adverse impact on the group's operating cash-flow in the years mentioned above.

Holiday mood dampens FBM KLCI

KUALA LUMPUR: The FBM KLCI remained in negative territory at the mid-day break on Friday, April 29 as investors mainly stayed on the sidelines ahead of the extended weekend at most regional markets.

The FBM KLCI fell 0.14% or 2.11 points to 1,533.19 at the mid-day break, weighed by losses including at Sime Darby, IOI Corp, YTL Corp, CIMB and Tenaga.

Losers led gainers by 373 to 231, while 315 counters traded unchanged. Volume was 422.30 million shares valued at RM513.16 million.

The ringgit weakened 0.19% to 2.9715 versus the US dollar; crude palm oil for the third month delivery fell RM40 per tonne to RM3,253, crude oil lost 38 per barrel to US$112.48, while gold fell US$2.47 an ounce to US$1,533.72.

At the regional markets, South Korea's Kospi fell 1.01% to 2,185.97, Taiwan's Taiex lost 0.73% to 8,974.59, Hong Kong's Hang Seng Index slipped 0.52% to 23,682.80 and Singapore's Straits Times Index shed 0.25% to 3,177.13.

The Shanghai Composite Index reversed its earlier losses and rose 0.11% to 2,890.29.

Japan stock markets were closed for a national ahead.

Among the major losers this morning, Metal Reclamation fell 25 sen to 70 sen, Shell and Nestle lost 20 sen each to RM10.90 and RM48, Kobay 13 sen to 75 sen, Hong Leong Industries and SapuraCrest 11 sen each to RM3.79 and RM3.65, Petronas Dagangan 10 sen to RM15.50 and Genting PLANTATION []s eight sen to RM7.92.

Sime Darby fell seven sen to RM9.01, IOI Corp six sen to RM5.33, Tenaga five sen to RM6, YTL Corp four sen to RM1.66 while CIMB fell three sen to RM8.18.

Focus Lumber continued its impressive run since it was listed on April 28 and was the most actively traded counter. The stock added 21 sen to RM1.39 with 20.44 million shares done.

Other actives included ConnectCounty, Iris Corp, HWGB, Karambunai and AirAsia.

Gainers included HLFG, F&N, United Plantationsm KLK, Kimlun, Sunway City and Tradewinds.

Pensonic up at mid-morning

KUALA LUMPUR: Shares of PENSONIC HOLDINGS BHD [] rose on Friday, April 29 after the company's net profit in the third quarter ended Feb 28, 2011 rose to RM896,000 from RM442,000 a year earlier, on the back of revenue ''RM79.65 million.

At 10.50am, Pensonic rose 1.5 sen to 69.5 sen with 191,700 shares traded.

Inter-Pacific Research maintained its Outperform call on Pensonic with target price 85 sen based on FY12's EPS of 9.4sen and PER of 9 times.

'We like Pensonic as: (1) its position to spearhead the Manufacturing Hub and International Distribution Network of Electrical Home Appliances ('EHA') under the Economic Transformation Programme ('ETP'); (2) strong local brand name in home appliances; and (3) improving bottomlines evident from its focus on higher margin products,' it said in a note April 29.

Hong Leong Bank says no objection to EON Bank declaring RM311m dividend

KUALA LUMPUR: HONG LEONG BANK BHD [] has confirmed it has no objection to EON Bank Bhd declaring and paying dividend of RM311.94 million once it has received the approval from Bank Negara Malaysia.

HL Bank said on Friday, April 29 it would go ahead and acquire the assets and liabilities of EON CAPITAL BHD [] at RM5.06 billion with no deduction for the payment of the proposed interim dividend.

It said that EON Cap had on Thursday accepted its offer in accordance with the terms and conditions set out in HL Bank's letter of offer dated April 1, 2010

HL Bank and EON Cap also agreed that EON Cap/EON Bank shall submit the application to BNM for the proposed interim dividend.

'Either party may submit the application to the Securities Commission ('SC') for the change in control of MIMB Investment Bank Bhd,' it said.

They agreed the the total liabilities at EON Cap company level less available cash at EON Cap company level liabilities shall not exceed RM14.1 million as at the completion date.

In a separate statement, EONCap said following HL Bank's agreement to its conditions, once BNM's and SC's approvals for the BNM application and SC application respectively were obtained, the parties shall complete the transaction.

'HL Bank has also acknowledged that the net liabilities at EONCap company level shall not be more than RM14.1 million as at the completion date of the offer and that no further debts, expenses or liabilities shall be incurred or committed by EONCap without prior approval from HL Bank.

'Any net liabilities incurred or committed by EONCap in excess of RM14.1 million without the prior written approval of HL Bank shall not form part of the liabilities to be transferred to HL Bank pursuant to the offer,' it said.

EP Manufacturing up after OSK Research raises TP to 89 sen

KUALA LUMPUR: EP MANUFACTURING BHD [] shares advanced in early trade on Friday, April 29 after OSK Research maintained its buy call on the stock and raised its target price to 89 sen from 78.7 sen previously.

At 9.35am, EPMB was up 3.5 sen to 80 sen with 2.32 million shares done.

OSK Research in a note April 29 said that while EPMB's earnings were better than expected (with Q1 representing 40% of its full-year forecast) owing to the low amortization rate, the research house preferred to be cautious and make no changes to its PBT forecast as it saw Perodua being hit by a components supply shortage.

'However, given the lower effective tax foreseen over the immediate to medium term, we are nudging up our bottomline earnings by some 13% for FY11-FY13 and revise upward our target price from 78.7 sen to 89 sen, with our Buy call retained.

'EPMB still offers decent upside given its attractive valuation as the stock is still trading below its 8-9x historical forward PE. At 5.2 times FY11 EPS, some 50% of its share price is made up of free cash flow. Maintain Buy,' it said.

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FBM KLCI succumbs to mild profit taking in early trade

KUALA LUMPUR: The FBM KLCI slipped into negative territory in line with the decline at key regional markets that fell on some profit taking ahead of the long weekend as well as the holiday-shortened trading in Japan next week.

The FBM KLCI slipped 1.20 points to 1,534.10 at 10am. It had earlier risen to 1,540.55 before giving up its gains.

Losers overtook gainers by 189 to 179, while 222 counters traded unchanged. Volume was 162.73 million shares valued at RM175.67 million.

At the regional markets, South Korea's Kospi fell 0.93% to 2,187.78, Hong Kong's Hang Seng Index lost 0.41% to 23,708.94, Singapore's Straits Times Index was down 0.30% to 3,175.47, the Shanghai Composite Index shed 0.05% to 2,885.46 and Taiwan's Taiex slipped 0.01% to 9,039.76.

Japan stock markets were closed for a national ahead.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on April 29 said that due to the Dow Jones Industrial Average's positive tone last night, the FBM KLCI could remain stronger today.

'There may be an initial gap-up, followed by pre-weekend profit taking later.

'We expect further range trading for the FBM KLCI. As such, invest with a short-term horizon. The index could limp to a good week-on-week close,' he said.

On Bursa Malaysia, F&N was the top loser at mid-morning and fell 30 sen to RM17.34; Kawan Food and Sime Darby fell eight sen each to RM1.34 and RM9, Petra Energy down seven sen to RM1.62, Malayan Flour Mills six sen to RM5.74 while Ta Ann, Petrol One Resources and Litrak fell five sen each to RM6.60, RM1.33 and RM3.82 respectively.

Priceworth warrants were most active at mid-morning with 17 million units done. The warrants added 17 sen to 38 sen.

Other actives included Focus Lumber, ConnectCounty, Karambunai, HWGB and SAAG.

Gainers included Petronas Gas, HLFG, BAT, KLK, AirAsia, Daibochi and Proton.

CIMB Research has BUY on JCY at 70.5 sen

KUALA LUMPUR: CIMB Equities Research has a BUY on JCY International at 70.5 sen, where it is trading at FY12 price-to-earnings of 8.2 times and price-to-book value of 1.6 times.

It said on Friday, April 29 the recent pullback stopped near its 50% FR level. Since then, prices have rebounded a tad higher to current levels. At present, it thinks a base has been built near the 50-day SMA, which is likely to be its near term support.

'Although prices could still correct a tad lower, we expect prices to inch closer towards RM0.74 and possibly even RM0.83 (its April high) once this sideways consolidation is over. Risk takers may start to nibble now before the next upleg kicks in,' it said.

CIMB Research said the MACD remains lethargic while RSI is a tad below the 50pts mark. However, it believes downside risk will be cushioned by the 50-day SMA. Only a break below RM0.67 would trigger its stop.

CIMB Research has SELL on Yee Lee Corp at RM1.08

KUALA LUMPUR: CIMB Equities Research has a SELL on Yee Lee Corporation at RM1.08 where it is trading at a price-to-book value of 0.8 times.

The research house said on Friday, April 29 Yee Lee is trapped in a bearish flag pattern. The recent countertrend rebound may have exhausted after prices hit the resistance channel.

'If we are right, prices should fall below its key moving averages soon before heading towards the support trend line of the flag pattern at RM0.90,' it said.

CIMB Research said technical landscape is showing signs of exhaustion. MACD histogram bars are falling at a fast pace while RSI is also dwindling.

It said traders should do well selling into strength, preferably near the RM1.12-RM1.17 resistances. Always put a buy stop at RM1.20, just in case.

HDBSVR sees FBM KLCI taking a breather

KUALA LUMPUR: Hwang DBS Vickers Research expects the benchmark FBM KLCI to take a breather after rising for four days - up by a cumulative of 12.55 pts or 0.8% - in a row.

It said on Friday, April 29 the KLCI is likely to be supported by the resistance-turned-support level of 1,530.

Meanwhile, the key U.S. equity indices continued with the rally, closing with an increase of between 0.1% and 0.6% last night. This comes after higher-than-expected corporate earnings which sent the S&P index to the highest level since June 2008.

At Bursa Malaysia, EON Capital and Hong Leong Bank are expected to see added trading interest after the court ruling that came in favour of EON Capital against Primus Pacific Partners.

'This may clear the path for the merger between Hong Leong Bank and EON Capital,' it said.

Also, Bank Negara's monthly statistics will be on tap later this evening.

SEGi rises in early trade

KUALA LUMPUR: SEG INTERNATIONAL BHD [] (SEGi) shares and warrants advanced in early trade on Friday, April 29 after its net profit for the first quarter ended March 31, 2011 surged 90.5% to RM18.12 million from RM9.51 million a year ago due to the increase in student enrolments at its institutions.

At 9.05am, SEGi shares rose seven sen to RM4.04 while its warrants added nine sen to RM2.94.

Revenue for the quarter rose to RM68.47 million from RM52.29 million in 2010. Earnings per share were 7.35 sen, while net asset per share was 77.2 sen.

It recorded marked improvement in student numbers and profitability in the previous year and the current quarter.

'This trend is expected to continue in 2011 and the foreseeable future as the group has put in place a firm foundation and strategy for sustainable growth,' it said.

Priceworth warrants active, up

KUALA LUMPUR: Priceworth International Bhd's warrants were actively traded on Friday, April 29 after its 86.85 million warrants at an issue price of 5.0 sen per warrant were listed and quoted this morning.

At 9.15am, Priceworth warrants rose 19 sen to 40 sen with 10.87 million units done.

A Bursa Malaysia circular said on Thursday the warrants were issued on the basis of one warrant for every two shares of 50 sen each.

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US STOCKS-Dow transports hit record, leading Wall St higher

NEW YORK: The Dow Jones transports closed at an all-time high on Thursday, April 28, leading U.S. stocks higher and signaling more gains due to its role as a touchstone of economic demand.

The Dow Jones Transportation Average rose 1.2 percent to 5,510.06, led by Norfolk Southern, which jumped 8 percent to $73.87 after reporting strong results.

Investors had expectations for strong gains after the S&P 500 broke through resistance at 1,344 on Tuesday. However, with volume weak and economic data suggesting a still unsteady path to recovery, it raises questions as to how fast the S&P can surpass the next milestone at 1,400.

"There is a disconnect in the market right now -- we are getting this mixed bag of news," said Jonathan Corpina, head of NYSE floor operations for Meridian Equity Partners in New York.

There were also some signs of creeping cost pressures in some companies' results. Procter & Gamble Co lowered the high end of its profit forecast as it trimmed expenses and increased prices to offset rising materials costs. Its shares were up 0.8 percent at $64.50.

Earnings eased the blow from a batch of soft economic data showing U.S. economic growth had slowed and the labor market may be weakening.

But the U.S. Federal Reserve has maintained support for its easy monetary policy, which has helped push up equity prices in the face of increasing inflation.

"As operating costs continue to move higher across the board, that is clearly going to affect the bottom line moving forward," Corpina said.

"Seeing commodity prices, oil and energy prices at the rate they are trading at now, with no end in short-term sight, that has to be factored in, going into the next quarter or two."

The Dow Jones industrial average rose 72.35 points, or 0.57 percent, to 12,763.31. The Standard & Poor's 500 Index added 4.82 points, or 0.36 percent, to 1,360.48. The Nasdaq Composite Index advanced 2.65 points, or 0.09 percent, to 2,872.53.

Insurers moved higher as Allstate Corp, up 5.7 percent at $33.76, and Aflac Inc, up 5 percent at $57 advanced on quarterly results. Health insurer Aetna gained 4.2 percent to $41.48 following quarterly results that topped Wall Street's expectations.

The KBW insurance index climbed 2 percent and the Morgan Stanley healthcare payor index added 1.9 percent.

"We are kind of getting in that stage where we've had a lot of good earnings reports. The market really likes that, but as we are getting through earnings season, they are going to start focusing more on these economic numbers," said Peter Jankovskis, co-chief investment officer of OakBrook Investments LLC in Lisle, Illinois.

"The fact we've had this string of economic numbers that are at par, sub-par, however you want to put it, is going to cause people to be looking more at the individual companies. It's not 'a rising boat lifts all ships story' any more."

Silver soared to an all-time high and gold rose to another record, as a falling dollar and signs that the Federal Reserve would maintain a loose monetary policy boosted precious metals' appeal as a hedge against inflation and economic uncertainty.

Other economic data showed pending sales of existing U.S. homes were much stronger than expected in March, offering faint glimmers of hope for the depressed U.S. housing market.

Volume was modest, with about 7.43 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, slightly below the daily average of 7.72 billion.

Advancing stocks outnumbered declining ones on the NYSE by 1,838 to 1,144, while on the Nasdaq, advancers beat decliners 1,437 to 1,129. - Reuters

Nasdaq/ICE may go hostile; investors press NYSE

NEW YORK/LONDON: Nasdaq OMX and IntercontinentalExchange are poised to go hostile in their bid for NYSE Euronext after shareholders ratcheted up pressure on the Big Board parent to get a better deal, Reuters reports on Thursday, April 28.

Nasdaq OMX Group Inc and IntercontinentalExchange Inc are expected to soon take their $11.1 billion bid directly to NYSE's shareholders through a tender offer, two sources familiar with the situation said.

The move is seen as the next logical step for Nasdaq and ICE after being rebuffed twice by NYSE, which has refused to open talks on their offer. NYSE favors its existing $10.1 billion deal with Germany's Deutsche Boerse AG.

A direct appeal to shareholders through a tender offer would ramp up the pressure that NYSE is already under, although they also have defenses to keep Nasdaq and ICE at bay.

NYSE, for instance, can institute a poison pill, which would thwart the hostile bid by making it more difficult and expensive for the rivals to buy its shares.

In signs the Big Board is facing growing dissent over its strategy of just saying "no," shareholders at its annual meeting on Thursday approved two proposals that the board had advised against, and directors who were up for election got fewer votes than before.

Investors at the packed meeting in New York urged NYSE management and board to start talks with Nasdaq and ICE, while also asking them to press Deutsche Boerse to sweeten its deal.

"This merger is grossly unfair to the shareholders," said Kenneth Steiner, who owns about 1,000 NYSE Euronext shares. "I voted against the directors. I believe they should be removed and replaced with those who can get us the appropriate value for our shares."

The NYSE board and managers who launched a charm offensive to woo shareholders stuck to their belief that the Deutsche Boerse deal was the better way to go.

Earlier on Thursday, NYSE CEO Duncan Niederauer said he would close the "perceived value gap" between the deals. The Nasdaq/ICE offer is about 10 percent higher than the Deutsche Boerse deal.

Niederauer, a fierce rival of Nasdaq's Robert Greifeld, promised that a combined NYSE-Deutsche Boerse would have much higher earnings, diverse revenues and would cut costs.

With shareholders pushing for a sweeter deal from the German exchange, Niederauer said, "We would hate to miss out on an accelerating opportunity because we just got a touch too greedy on the ratio."

DISRUPTIVE TACTICS

NYSE Chairman Jan-Michiel Hessels called the unsolicited offer from Nasdaq and ICE "illusory" and "fraught with unacceptable execution risk."

"We believe their request for a meeting is a tactic principally designed to be disruptive to our combination and therefore we see no basis for which to meet with them," Hessels said.

NYSE's board took just 10 days to snub Nasdaq this month, dismissing its bid as "strategically unattractive" and warning of heavy U.S. job losses from such a deal.

Eight of nine institutional investors polled by Reuters this week said NYSE Euronext should at least sit down with Nasdaq and ICE.

On Thursday, shareholders approved a proposal that gives investors with just 10 percent of the company's shares the power to call special meetings -- a move that could make it easier for Nasdaq and ICE to pursue their counter-bid if it drags on after a July shareholder vote.

NYSE said it would likely take 12 months to adopt the proposal.

The shareholders reelected the directors with an average of 80 percent support, according to preliminary results. Last year, the directors got more than 90 percent support.

STRONG RESULTS

Separately, Deutsche Boerse said it has no plans to sweeten its offer, but highlighted possible cost savings of at least 500 million euros ($742 million) from the deal.

The target is 100 million euros higher than the initial estimates. Half of the additional savings would come from the TECHNOLOGY [] unit.

Deutsche Boerse and NYSE Euronext also reported strong first-quarter results, topping analyst expectations.

NYSE earned 68 cents a share, excluding items, topping the 60 cents Wall Street expected.

Separately, CME Group Inc said its first-quarter profit rose 22 percent, beating expectations, as the biggest U.S. futures exchange operator handled record trading in energy and grains. - Reuters

Seoul shares open up, Kia Motors gains

SEOUL: Seoul shares opened higher on Friday following firm gains on Wall Street, with gains led by the banking and auto sectors.

Kia Motors jumped 2.3 percent ahead of its first-quarter earnings announcement.

The Korea Composite Stock Price Index (KOSPI) was up 0.28 percent at 2,214.56 points as of 0003 GMT. ' Reuters

CIMB Research Neutral on Unisem, keeps TP RM2.08

KUALA LUMPUR: CIMB Equities Research said the positive takeaways from Unisem's 1Q11 briefing were its expectations of a strong 2H11, commitment to its China expansion and confirmation of limited aftershocks from Japan's earthquake at this juncture.

It said on Friday, April 29 the main negative surprises were the steep drop in utilisation rates in 1Q and the more muted tone for 2Q.

'We are cutting our FY11-13 EPS by 4-8% to reflect cost pressures from a firmer ringgit and a bigger capacity base. The earnings adjustments have no impact on our target price of RM2.08, which we continue to base on a 40% discount to its mid-cycle valuation P/BV of 2.2x,' it said.

CIMB Research said it remains NEUTRAL on Unisem as the absence of immediate catalysts and its weak near-term earnings are balanced out by the attractive yield and volume loading from the tier-1 customer. Switch to Jobstreet.

#Stocks to watch:* SEGi, Cepco, EON Cap, Priceworth

KUALA LUMPUR: Stocks which could see trading interest on Friday, April 29 following the fresh corporate developments are SEG INTERNATIONAL BHD [], CONCRETE ENGINEERING PRODUCTS [] Bhd (CEPCO), EON CAPITAL BHD [] and Priceworth International Bhd.

SEGi net profit for the first quarter ended March 31, 2011 surged 90.5% to RM18.12 million from RM9.51 million a year ago due to the increase in student enrolments at its institutions.

Revenue for the quarter rose to RM68.47 million from RM52.29 million in 2010. Earnings per share were 7.35 sen, while net asset per share was 77.2 sen.

It recorded marked improvement in student numbers and profitability in the previous year and the current quarter.

'This trend is expected to continue in 2011 and the foreseeable future as the group has put in place a firm foundation and strategy for sustainable growth,' it said.

CEPCO swung into the red with net losses of RM5.95 million in the second quarter ended Feb 28, 2011.

Revenue slipped 16% to RM24.69 million from RM29.38 million while its loss per share was 13.31 sen compared with earnings per share of 4.37 sen.

For the first half, it reported net loss of RM205,000 compared with net profit of RM7.74 million in the previous corresponding period.'' Revenue shrank to RM45.26 million from RM66.95 million.

The High Court has dismissed with costs the suit filed by Primus (M) Sdn Bhd against certain shareholders and directors of EON Capital Bhd EONCap) over the proposed sale of the latter to HONG LEONG BANK BHD [].

The decision was made by Judge Varghese George Varughese on Thursday, April 28.

Priceworth International Bhd's 86.85 million warrants at an issue price of 5.0 sen per warrant will be listed and quoted on Friday, April 29.

A Bursa Malaysia circular said on Thursday the warrants were issued on the basis of one warrant for every two shares of 50 sen each.

Malaysia Airports Holdings Bhd (MAHB) is revising its passenger traffic volume target to 72 million for 2014, from 60 million earlier under its five-year plan.

Managing director Tan Sri Bashir Ahmad Abdul Majid said passenger growth at KLIA has been very promising and it should be able to hit its initial 60 million passengers target by 2011.

'The growth so far as been good as indicated by the traffic in the first three months of the year. We are definitely on track,' he said.

Under the five-year plan, MAHB is also targeting to achieve an earnings before interest, tax, depreciation and amortisation and returns on equity of RM1 billion and 10% respectively under its five-year plan that expires in 2014.

Ecofirst returns to the black in 3Q, boost from writeback

KUALA LUMPUR: ECOFIRST CONSOLIDATED BHD [] returned to the black in the third quarter ended Feb 28, 2011 with net profit of RM7.95 million compared with net loss of RM12.32 million.

It said on Thursday, April 28 the better performance was due to a RM32.4 million writeback of doubtful debt provisions less losses on revocation of PROPERTIES [] of RM20.5 million.

Rrevenue fell 46% to RM2.87 million from RM5.33 million. Earnings per share were 1.22 sen versus loss per share of 1.89 sen.

For the nine months, it reported net profit of RM2.41 million compared with net loss of RM19.51 million in the previous corresponding period. Revenue declined 29.8% to RM12.90 million from RM18.38 million.

Ecofirst said the group was undertaking a management revamp for its retail mall in Seri Kembangan to improve its performance.

'The development of two tower blocks of service apartments on top of the existing mall which is expected to commence by middle of this year, is also expected to augment improvement of the mall's performance,' it said.

The company said the CONSTRUCTION [] of the group's other retail mall in Segamat was expected to be completed in the first quarter of the next financial year (1Q ending Aug 31, 2011).

'We have so far received encouraging response on the leasing of retail space at the mall and are optimistic of achieving more than 85% occupancy by the time the mall is opened for business in the second quarter of the next financial year (ending Nov 30, 2011),' it said.

As for the production of iron ore via its investment in south Kalimantan, it said there would be a delay to the next financial year. The earlier plan was in the second half of this financial year ending May 31, 2011.

'The causes of delay are mainly due to relocation of processing site arising from local requirements and also rainy conditions which delayed the installation and commissioning of the machinery and processing equipment,' it said.

Malaysia's 1Q GDP growth not less than 4.5%

KUALA LUMPUR: Malaysia's economic growth in the first quarter of 2011 is expected to be no less than 4.5 per cent, Minister in the Prime Minister's Department Tan Sri Nor Mohamed Yakcop said Thursday, April 28.

"Based on the data compiled in the first two months, the growth is seen not to be less than 4.5 per cent," he told reporters at the launch of the World Bank's Malaysia Economic Monitor-Brain Drain report here.

He said the first quarter results would be released in May.

He said the country's growth was expected to pick up in the second half of 2011 with Gross Domestic Product seen expanding between five and six per cent for the whole year.

Meanwhile, the World Bank's senior economist for Malaysia, Philip Schellekens, said the country was expected to develop favourably at 5.3 per cent in 2011 and 5.5 per cent in 2012 after staging a strong recovery last year.

As in the past years, domestic demand, especially private consumption and fixed investment, was expected to continue driving the economy, he added.

According to the report, private investment is set to strengthen but remains highly sensitive to progress with the implementation of Economic Transformation Programme (ETP) projects.

Consumer price inflation, meanwhile, is expected to gain strength before moderating. Inflation is expected at three per cent in 2011 and 2.5 per cent in 2012 as a result of higher global food and energy prices.

The report also shows that further monetary policy normalisation is likely in 2011 after Bank Negara Malaysia signalled in its March statement that demand-pull inflation is building up.

Further Overnight Policy Rate (OPR) rises are expected in the coming months but how soon the rate will return to the pre-crisis level remains data-dependent, according to the report.

Additional Statutory Reserve Requirement adjustment is also expected, especially if OPR normalisation leads to excessive capital inflows and liquidity in the financial markets. - Bernama

Leong Hup board accepts Emerging Glory takeover offer at RM1.80 per share

KUALA LUMPUR: LEONG HUP HOLDINGS BHD []'s (LHHB) board has accepted the takeover offer from Emerging Glory Sdn Bhd for all the entire business, including assets and liabilities, for a purchase consideration of RM1.80 per share.

Upon completion of the proposed disposal, Emerging Glory proposes LHHB, subject to obtaining all requisite approvals, return all proceeds to shareholders, via a special dividend, bonus issue and/or capital repayment exercise.

LHHB said that except for interested directors Datuk Lau Bong Wong, Datuk Lau Eng Guang, Tan Sri Lau Tuang Nguang and Lau Joo Hong, the board had accepted the offer subject to the execution of a definitive agreement.

'Accordingly, the board agrees to present to the shareholders of the company the offer. The board, save for the interested directors, has also resolved that after the completion of the proposed disposal and subject to all requisite approvals being obtained, LHHB will proceed with the proposed capital repayment,' it said.

GHL appoints exco after MD resigns, maps out 3-pronged plan

KUALA LUMPUR: GHL SYSTEMS BHD []'s board had set up an executive committee to steer the company following the recent resignation of its managing director Tay Beng Lock and it had also mapped out three strategies to return to the black.

It said on Thursday, April 28 the exco would steer the company's corporate direction and execute its growth strategies.

The exco comprises the executive chairman, deputy managing director,''chief operating officer and group finance director''- as well as the audit committee chairman (as observer), to ensure overall corporate governance and accountability,' it said.

GHL said with the diverse and highly-experienced team, the board believed the exco would be sufficiently adept in formulating and executing the growth strategies of GHL and its subsidiaries.

The growth strategies to stop the three consecutive years of losses of the group would be ''to consolidate its position in the payment services industry, to contain costs and maximise the return on its investments.

'Locally, the Group plans to grow its credit card business by 10% in financial year ended'' Dec 31, 2011, and tap into the potential of the e-debit business segment which has recorded a 200% increase in payment''transactions in the last 24 months.

'GHL will also look into adding new services into its payment terminals to increase the Group's recurring income component,' it said.

GHL said it would also focus on expanding the group's business in Asia where the group has a presence, which were the Philippines, Thailand, and China.

'The group aims to achieve a 30%-70% revenue breakdown for the local and overseas markets respectively,' it added.

It said it would explore merger & acquisition opportunities in the local and regional markets for synergistic benefits.

'In view of these growth plans, and of the positive financial results of the group for the first quarter ended 31 March 2011 and barring any unforeseen circumstances, the board is also targeting for the group to be profitable by the end of financial year 2011,' it said.

High Court dismisses interim injunction over Putra Place land sale

KUALA LUMPUR: The High Court has dismissed an interim injunction to stop the sale of the Putra Place land in Kuala Lumpur by OSK Trustees Bhd to Sunway Real Estate Investment Trust (Sunway REIT).

Sunway REIT said on Thursday, April 28 that the High Court dismissed the summon-in-chambers with costs. Robert Ti and Kornelis Kurniasai has sought an interim injunction to stop the sale of the property.

'The High Court also dismissed the Plaintiffs' oral application for an interim order that the trustee and Sunway REIT be restrained from selling or dealing with Putra Place pending the disposal of the originating summons,' it said.

Sunway REIT said the trustee was advised by its solicitors that in their opinion, the plaintiffs were not likely to succeed in their claims in the originating summons against the trustee.

The High Court has also fixed the originating summons for case management on May 5.

Ti and Kurniadi had on April 19 served an originating summon, a summon-in-chamber and an affidavit on the law firm acting for OSK Trustees Bhd as second defendant and Sunway REIT as third defendant.

The other defendants in the originating summon and summon-in-chamber are Commerce International Merchant Bankers Bhd as the first defendant (CIMB), the deputy registrar of the Kuala Lumpur High Court as the fourth defendant and the auctioneer Abu Bakar Abdul Rahman as the fifth defendant.

Ti and Kurniadi had sought a declaration that the sale by public auction of Putra Place land on March 30 haf breached the Proclamation and Conditions of Sale and/or the National Land Code, 1965.

The two had also sought a court order that the sale of the Putra Place land to OSK Trustees be set aside as being null and void and also that CIMB was not permitted to complete and discharge the charge in the interest of OSK Trustees and Sunway REIT.

They had also sought a court order that CIMB was not permitted to relinquish the title to OSK Trustees or Sunway REIT.

SEGi 1Q net profit surges 90.5% to RM18.12m

KUALA LUMPUR: SEG INTERNATIONAL BHD [] net profit for the first quarter ended March 31, 2011 surged 90.5% to RM18.12 million from RM9.51 million a year earlier due to the increase in student enrolments at its institutions.

Revenue for the quarter rose to RM68.47 million from RM52.29 million in 2010. Earnings per share was 7.35 sen, while net assets per share was 77.2 sen.

SEGi said on Thursday, April 28 that it recorded marked improvement in student numbers and profitability in the previous year and the current quarter.

'This trend is expected to continue in 2011 and the foreseeable future as the group has put in place a firm foundation and strategy for sustainable growth.

'Quality niche academic programmes will be introduced continually by the group backed by a strong management and academic team,' it said.

Cepco swings into red in 2Q, net loss RM5.96m

KUALA LUMPUR: CONCRETE ENGINEERING PRODUCTS [] Bhd (CEPCO) swung into the red with net losses of RM5.95 million in the second quarter ended Feb 28, 2011.

Cepco said on Thursday, April 28 that revenue slipped 16% to RM24.69 million from RM29.38 million while its loss per share was 13.31 sen compared with earnings per share of 4.37 sen.

For the first half, it reported net loss of RM205,000 compared with net profit of RM7.74 million in the previous corresponding period.'' Revenue shrank to RM45.26 million from RM66.95 million.

Cepco said the 2Q turnover of RM24.69 million was 0.2% higher than in 1Q. The group recorded a loss after taxation of RM5.96 million compared to the 1Q profit of RM 4.74 million.

FBM KLCI extends gains as M'sia inks agreements with China to deepen trade, investments

KUALA LUMPUR:'' The FBM KLCI extended its gains on Thursday, April 28 as Malaysia and China inked eight agreements to further expand trade and investment links between the two countries.

The deals were signed in conjunction with China Premier Wen Jiabao's state visit to Malaysia.

The FBM KLCI closed 5.39 points higher at 1,535.30, lifted by gains including at BAT, HLFG, PPB and RHB Capital.

Losers edged gainers by 381 to 360, while 333 counters traded unchanged. Volume was 924.64 million shares valued at RM1.40 billion.

Regional markets closed mixed today, as the Hong Kong and China stocks declined ahead of the coming long weekend.

The Shanghai Composite Index fell 1.315 to 2,887.04, Hong Kong's Hang Seng Index lost 0.37% to 23,805.63, and Taiwan's Taiex edged down 0.09% to 9,040.77.

Meanwhile, Japan's Nikkei 225 jumped 1.63% to 9,849.74 and South Korea's Kospi and Singapore's Straits Times Index added 0.07% each to 2,208.35 and RM3,184.99.

BAT was the top gainer and rose 72 sen to RM48, HLFG added 38 sen to RM9.90, F&N 34 sen to RM17.64, PPB 26 sen to RM16.94, Shell and RHB Capital added 20 sen each to RM11.10 and RM8.80, while DiGi was up 18 sen to RM29.

Focus Lumber made an impressive debut on the Main Market today and was the most actively traded counter with 40.3 million shares done. The stock added 58 sen to RM1.18.

Other actives included Hubline, E&O, ConnectCounty, PLUS, Ramunia, Axiata, Karambunai and Petronas Chemicals.

Among the decliners, United PLANTATION []s fell 20 sen to RM17.80, Aeon and UMW down 17 sen each to RM6 and RM1.61, BHIC and Hong Leong Industries down 15 sen each to RM4.50 and RM3.90, Unisem lost 14 sen to RM1.83, while Coastal Contracts and LPI Capital fell 10 sen each to RM3.58 and RM13.70.

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Hong Kong, China shares end lower as policy fears weigh

HONG KONG: Hong Kong shares fell for a third consecutive day on Thursday, April 28 and fears that Beijing may act to cool rising property prices over the upcoming long weekend will probably keep the benchmark index capped until next week.

The Hang Seng index closed down 0.4 percent, with even a strong start to Chinese banking results failing to lift the benchmark towards prior highs.

In Shanghai, the main stock index fell 1.3 percent to a two-month low, with cement and property counters the weakest performers.

"Ahead of a holiday, investors are always cautious, especially as rumours are flying around," said Wen Lijun, analyst at Nanjing Securities.

Anhui Conch Cement , China's second-largest cement producer by output capacity, shed 6 percent and was the top drag on the Shanghai Composite. The stock had climbed some 36 percent over the past three months.

The property sub-index fell 1.4 percent with top developer China Vanke down 1.1 percent.

Worries about a possible interest rate hike this weekend and further government tightening on local property market may continue to drag on the A-share market, said Alan Lam, Greater China analyst at Julius Baer, in a note to clients.

Weak market sentiment was also evident in the IPO market as shares of Chinese car dealer Pangda Automobile Trade Co slumped 23 percent on their trading debut.

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MAINLAND SHARES WEIGH ON HK

Petrochina shares fell 3.1 percent and were the top drag on the Hang Seng after the company's results showed high crude oil prices were eating into refining profit margins.

Financials, supported by strong results from insurer Ping An and Agricultural Bank of China , helped offset weakness in oil producers but gave up gains as losses on the Shanghai market deepened.

The weak mainland market is likely to limit any upward move on the Hang Seng, said Lam, despite a strong start to first-quarter results with AgBank's bumper earnings.

Chinese banks, which carry the biggest weightings on benchmark indices in Hong Kong and Shanghai, are set to report strong first-quarter results as loan-books grow and fee income from services such as bank cards grow.

But a sharp two-day slide on Shanghai's speculative index of dollar-denominated B-shares was exacerbating the cautious sentiment.

Shanghai's B-share index, which has doubled over the past two years, has shed 8 percent over the past two days on rumours that the government would announce new policy measures soon, potentially during the upcoming May Day holiday.

One Hong Kong-based trader said the surge in volume on the otherwise illiquid B-share index probably gave a lot of domestic investors a chance to cash out, referring to the low volumes seen in B-share trading that make exiting positions difficult. - Reuters

Sime Darby Motors targets to sell 60,000 cars in 2011

KUALA LUMPUR: Sime Darby Motors may venture into new markets including Indochina as it seeks new opportunities.

Executive vice president Datuk Lawrence Lee said on Thursday, April 28 the company sold 35,000 cars in 1H2011 and for the full year, targets to sell 60,000 units, up from 57,000 in 2010.

He said there could be supply issues in 2H2011 following the aftermath from the recent tsunami in Japan, although the company is managing the issue as to not fall short of the market demand.

CIMB Islamic Bank issues RM250m sukuk at 4.2% p.a.

KUALA LUMPUR: CIMB Group Holdings Bhd's Islamic banking unit, CIMB Islamic Bank Bhd had completed the issuance of RM250 million Tier 2 junior Sukuk on April 21 which was priced at 4.2% per annum.

'The AA1-rated Junior Sukuk with a maturity of 10 years is callable at year five and on each subsequent distribution date. Priced competitively at 4.2% per annum, the Junior Sukuk is not subject to any step up distribution rate after the call date,' it said on Thursday, April 28.

On April 14, CIMB Group also completed the issuance of a RM500 million 5-year medium term note (MTN), to refinance existing credit facilities. The MTN, rated AA1 by RAM, pays a coupon of 4.2% per annum.

"Both the Junior Sukuk and the MTN received overwhelming responses from investors, with both issuances about three times subscribed. The final pricing of 4.2% per annum for both issuances is very attractive, at approximately KLIBOR + 0.15%. The current market environment remains very conducive for corporate issuers including banks to tap the fixed income markets,' said CIMB Group deputy CEO and treasurer Datuk Lee K Kwan.

CIMB Bank Bhd had earlier secured several US dollar term loan facilities for tenures of three and four years on an unsecured floating rate basis, with all-in pricing of 0.90%-0.98% per annum above LIBOR. The loans will refinance maturing US Dollar liabilities with long term facilities at attractive costs.

"Current market conditions in the ringgit debt markets and the US Dollar loan markets are highly conducive to reducing liquidity risks in the balance sheet through the replacement of short term funding facilities with longer tenor liabilities at highly competitive credit spread in addition to capital fund raising at very efficient pricing levels. We constantly look for the cheapest sources of funding and capital to maintain our net interest margins," he said.

Bank Negara Malaysia to set up representative office in Beijing

KUALA LUMPUR: Bank Negara Malaysia will set up a representative office in Beijing which the central bank expects to further strengthen cooperation with the People's Bank of China.

BNM said on Thursday, April 28 the representative office will also serve as an important liaison point with China's regulators and market players as well as to facilitate the conduct of market research on China's economic and financial developments.

It said the People's Bank of China governor Zhou Xiaochuan and BNM governor Tan Sri Zeti Akhtar Aziz had signed an agreement on Monday, April 25 on the establishment of a representative office by BNM in Beijing.

The Beijing representative office is the third overseas representative office established by BNM, in addition to its offices in London and New York.

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MAHB ups target to 72m passengers for 2014

SEPANG: Malaysia Airports Holdings Bhd (MAHB) is revising its passenger traffic volume target to 72 million for 2014, from 60 million earlier under its five-year plan.

Its managing director Tan Sri Bashir Ahmad Abdul Majid said on Thursday, April 28 passenger growth at KLIA has been very promising and it should be able to hit its initial 60 million passengers target by 2011.

'The growth so far as been good as indicated by the traffic in the first three months of the year. We are definitely on track,' he said at the AGM.

Under the five-year plan, MAHB is also targeting to achieve an earnings before interest, tax, depreciation and amortisation and returns on equity of RM1 billion and 10% respectively under its five-year plan that expires in 2014.

#Flash* Judge dismisses Primus' application with costs

GEORGE TOWN: The High Court has dismissed with costs the suit filed by Primus (M) Sdn Bhd against certain shareholders and directors of EON CAPITAL BHD [] (EONCap) over the proposed sale of the latter to HONG LEONG BANK BHD [].

The decision was made by Judge Varghese George Varughese on Thursday, April 28.

Primus' counsel Ranjit Singh says he would appeal as soon as possible against court decision.

The decision came just two days ahead of Hong Leong Bank's April 30 deadline for securing shareholders' and regulatory approval for its proposed acquisition of EONCap's assets and liabilities for RM5.06 billion.

Hong Leong Bank, controlled by tycoon Tan Sri Quek Leng Chan, had tried to buy out EONCap last January with an offer of RM7.10 per share or a total consideration of RM4.92 billion.

EONCap's previous board considered the offer too low and rejected it, prompting Hong Leong Bank to return with a cash offer of RM5.06 billion or RM7.30 per share.

Hong Leong Bank, controlled by tycoon Tan Sri Quek Leng Chan, had tried to buy out EONCap last January with an offer of RM7.10 per share or a total consideration of RM4.92 billion.

To recap, Primus filed suit on June 21 last year, seeking RM1.12 billion in damages from EONCap directors should Hong Leong Bank succeed in acquiring EONCap.

Primus is the Malaysian arm of Hong Kong-based Primus Pacific Partners Ltd which holds a 20.2% stake in EONCap.

Primus was said to be opposed to the sale of EONCap to Hong Leong Bank because the offer price of RM7.30 per share was too low. It had paid RM9.55 per share for its substantial stake in EONCap in 2007.

Unisem extends losses after downgrades

KUALA LUMPUR: Shares of UNISEM (M) BHD [] extended their losses in late afternoon on Thursday, April 28 sliding to a low of RM1.84 after downgrades by research houses following the weaker earnings in the Jan-March quarter.

At 2.57pm, it was down 13 sen to RM1.84 with 7.27 million shares done.

The FBM KLCI was up 3.32 points to 1,533.23. Turnover was 519.91 million shares done valued at RM697.07 million. There were 307 gainers, 339 losers and 315 stocks unchanged.

Affin Investment Bank Research had downgraded Unisem to SELL and the Target Price was cut to RM1.16.

It said industry data points such as inventory and new orders continue to remain weak, leaving little re-rating catalyst in the near term.

'We remain concern over the impact of; 1) high unemployment levels which will inevitably impact consumption demand; 2) increase in global liquidity which has been fuelling the rise in prices of commodities and hence key components such as gold and copper; and 3) the strength of the ringgit which will continue to put pressure on revenue and earnings.

'Post our earnings downgrade, our target price is reduced to RM1.16 (previously RM1.70), which is based on an unchanged mid-cycle valuation PE of 7.6x. Given the 41% downside from current levels, we downgrade Unisem to a SELL from REDUCE,' Affin Research said.

UOB Kay Hian Research downgraded the stock to SELL and cut its target price from RM1.92 to 99 sen, pegged at 8x 2011F PE (in line with historical PE multiples), implying a 0.6x P/B. Unisem was trading at less than 0.5 times P/B when earnings troughed in 1H09.

'Unless the US$ rate reverts to previous levels, Unisem's share price should continue to trail the market,' it said.

Priceworth's 86.8m warrants to trade Friday

KUALA LUMPUR: Priceworth International Bhd's 86.85 million warrants at an issue price of 5.0 sen per warrant will be listed and quoted on Friday, April 29.

A Bursa Malaysia circular said on Thursday the warrants were issued on the basis of one warrant for every two shares of 50 sen each.

The stock short name, stock number and ISIN code of the warrants are 'PWORTH-WA', "7123WA" and "MYL7123WAQ48" respectively.

UOA Development gets SC nod to list

KUALA LUMPUR: UOA Development Bhd expects to list its entire enlarged issued and paid-up share capital on the Main Market of Bursa Malaysia in June this year after getting the nod from the Securities Commission.

In a statement Thursday, April 28, its managing director and co-founder Kong Chong Soon said the move to list was in line with its objectives of strengthening its balance sheet, raising its group profile as well as moving towards expanding UOA Development's business in Malaysia.

Kong said that as at Dec 31, 2010, the company had a total saleable and lettable area of more than 300,000 sq m of PROPERTIES [] under development with an estimated gross development value of RM2 billion to be completed over the next three years.

'The Company has a further total potential saleable and lettable area of more than 1.2 million sq m being held for future development projects with an estimated gross development value in excess of RM8 billion.

'With these statistics, we endeavour to continue to build towards excellence and the needs of the local community in our current developments,' said Kong.

UOA Development through its subsidiaries and associated company is involved in property development, CONSTRUCTION [] and property investment. Its projects are in matured and prime locations, centralised within the Klang Valley.

UOA Development's flagship development project is in Bangsar South.

The development of Bangsar South commenced in 2007 and various phases have since been completed, namely 'The Village', 'The Horizon Phase I' and 'The Park Residences Phase I' in 2007, 2009 and 2010, respectively.

Meanwhile, UOA Development's chief operating officer for the development division David Khor Soo Beng said in 2010, the commercial development of Bangsar South, comprising 'The Horizon', 'The Vertical' and 'The Sphere', was designated as a MSC Malaysia Cybercentre by Multimedia Development Corporation Sdn Bhd.

'Our Bangsar South City is one of nine designated centres around the KL and Selangor region to be an MSC Status Centre.

'This is an achievement in itself as it shows that Bangsar South City has the capabilities and mandate to serve as a location where MSC Malaysia Status companies can grow and receive the full benefits of the 10-points stated in the MSC Malaysia Bill of Guarantee.'

Kong said the listing of UOA Development would enhance its profile as one of the leading players and allow it to access the Malaysian capital markets and facilitate financial flexibility to pursue business expansion opportunities.

'This listing also represents our clear strategic intent for the future,' said Kong.

Blue chips keep FBM KLCI above 1,530-point level at mid-day

KUALA LUMPUR: The FBM KLCI stayed above the 1,530-point level at the mid-day break on Thursday, April 28 in line with the gains at most key regional markets.

The FBM KLCI rose 3.82 points to 1,533.73 at the mid-day break, lifted by select blue chips.

Market breadth however turned slightly negative with losers leading gainers by 313 to 293, while 323 counters traded unchanged.

The ringgit strengthened 0.48% to 2.9645 versus the US dollar; crude palm oil added RM32 per tonne to RM3,309, crude oil rose 53 cents to US$113.29, while old eased US$1.47 to US$1,525.88.

Asian stocks mostly rose as investors bet that the easy US monetary policy will continue to drive money to riskier assets, according to Reuters.

The Bank of Japan is also expected to maintain its ultra-loose monetary policy later in the day and indicate its readiness to ease further if damage from last month's earthquake proves bigger than expected, it said.

With the two major central banks keeping interest rates near zero, investors are set to continue using the dollar and yen as funding currencies to buy higher-yielding assets, commodities and equities, said Reuters.

At the regional markets, Japan's Nikkei 225 rose 1.22% to 9,809.75, Hong Kong's Hang Seng Index added 0.50% to 24,013.43, Singapore's Straits Times Index gained 0.48% to 3,198.05, and South Korea's Kospi was up 0.09% to 2,208.72.

Meanwhile, Taiwan's Taiex shed 0.18% to 9,032.59 and the Shanghai Composite Index edged down 0.08% to 2,923.08.

On Bursa Malaysia, ''BAT was the top gainer this morning and rose 72 sen to RM48; DiGi was up 24 sen to RM29.06, F&N 20 sen to RM17.50, Hong Leong Bank 16 sen to RM10.50, HLFG 13 sen to RM9.65, KLK and PPB 12 sen each to RM21.02 and RM16.80, Wah Seong 11 sen to RM2.26 and MBSB 10 sen to RM2.60.

Focus Lumber which made its debut on the Main Market today was the most actively traded counter with 26.1 million shares done. The stock added 44 sen to RM1.04.

Other actives included Hubline, PLUS, Ancom Logistics, Unisem and E&O.

Decliners included LPI Capital, United PLANTATION []s, Aeon, Unisem, Hong Leong Industries, Tahps, BHIC, Coastal Contracts and SCGM.

Tenaga 550th world's biggest company in Forbes Global 2000 list

KUALA LUMPUR: TENAGA NASIONAL BHD [] (TNB) jumped 159 spots to rank as the 550th world's biggest company in this year's list of Forbes Global 2000 but its top official expects it to be a challenge to remain at the same spot next year due to higher fuel costs.

TNB said on Thursday, April 28 that of the 20 Malaysian companies listed in Forbes Global 2000 for 2011, the power giant was placed third with sales of US$9.6 billion, assets of US$23.6 billion and market value of US$11.1 billion.

Forbes Global 2000 is an annual listing of 2000 of the world's biggest corporations issued by

Forbes. It uses an equal weighting of sales, profits, assets and market value to rank companies according to size.

'Electricity demand growth in line with the upswing in the domestic economy and the enhanced operational efficiencies push our ranking back into the 500 range this year from 709th in 2010,' said TNB president and chief executive officer, Datuk Seri Che Khalib Mohamad Noh.

'It will be a challenge to remain at this spot next year given the rising coal prices, insufficient gas supply and comparatively more expensive alternative fuels,' he added.

Hong Leong Bank up at late morning

KUALA LUMPUR: HONG LEONG BANK BHD [] (HLBB) shares rose on Thursday, April 28 and gained 16 sen to RM10.50 after AmResearch said the bank was nurturing a quality regional footprint.

AmResearch maintained its Buy rating on HLBB , with an upgraded fair value to RM12.20 from RM11.20 previously.

It said this was based on calendarised 2011 ROE of 15.7%, adding that this leads to a fair P/BV of 2.3 times (from 2.1 times previously).

The research house said HLBB's initial investment in a 19.99% stake in Bank of Chengdu Co Ltd since October 2007 is just beginning to pay off handsomely.

Bank of Chengdu's loan size is estimated to be similar to HLBB's in two years' time, which is significant considering that Bank of Chengdu's loan book was only about 30% of HLBB's in FY06 just before HLBB stepped in, it said.

More importantly, it said HLBB had done an excellent job in nurturing quality growth in Bank of Chengdu.

In terms of asset quality, Bank of Chengdu's gross NPL ratio was 1.31% as at end-FYE12/09, a vast improvement from 28.5% in FYE12/06, it said.

Loan loss cover was 167% as at FYE12/09, versus 154% in FYE12/08, it said.

Bank of Chengdu's contribution to overall pre-tax profit has now reached 12.4% in the latest December quarter, it said.

'We are now projecting overall contribution to rise to 15.9% in FY11F and 17.3% in FY12F. HLBB's overall annualised loans growth over the past two quarters has surprised on the upside, with the recent annualised loans growth touching a multi-year high of 17% in its 1H ending 31 December 2010.

'This was way ahead of the industry's similarly annualised loans growth of 11.5% during the same period. We maintain our view that HLBB provides a strong exposure to domestic top line growth, as well as a meaningful footprint in China, backed by a high quality risk management culture,' it said.

Astino's 9.5m shares crossed at 21% below market price

KUALA LUMPUR: ASTINO BHD []'s 9.5 million shares were crossed at 55 sen each in an off-market deal, or 15 sen below its closing price of 70 sen.

Stock market data on Thursday, April 28 showed this was 21% below the traded price in the regular market of 69.5 sen.

At 11.50am, Astino was down 0.5 sen to 69.5 sen. There were 16,000 shares done at prices ranging from 69.5 sen to 70'' sen.

Astino operates in four segments, which are metal roofing, PVC, PE, and investment and management.

The PVC segment is engaged in the trading of polyvinyl chloride (PVC) panels, doors and frames. The PE segment is engaged in the manufacture and sale of polyethylene (PE) insect screen.

Wah Seong up in early trade

KUALA LUMPUR: WAH SEONG CORPORATION BHD [] shares rose in early trade on Thursday, April 28 after CIMB Research upgraded the stock to an Outperform from Neutral and raised its target price to RM2.70 from RM2.50 previously.

At 9.30am, Wah Seong gained 12 sen to RM2.27 with 1.82 million shares done.

CIMB Research said in a note April 28 said the company's management yesterday shed more light on Wah Seong's recently-announced JVs with US-based Insituform.

This relationship could allow Wah Seong to venture into the US and set up a deepwater pipe coating plant in the Gulf of Mexico area, it said.

'We also note that pipe coating prospects in Malaysia and Australia have improved. Wah Seong is already bidding for Kebabangan's pipe coating package.

'Imputing potential contributions from the JVs, we raise our EPS forecasts by 7.2% for FY12 and 7.1% for FY13 while keeping our FY11 numbers unchanged,' it said.

CIMB Research raised its up from RM2.50 to RM2.70, still pegged to its target market P/E of 14.5 times.

'We upgrade Wah Seong from Neutral to OUTPERFORM in view of the potential re-rating catalysts of 1) success in new markets, and 2) pipe coating contract awards,' it said.

FBM KLCI extends gains for fourth day

KUALA LUMPUR: ''The FBM KLCI extended its gains for the fourth day running, in line with the overall positive sentiment at key regional markets following the higher overnight close at Wall Street.

At mid-morning, the FBM KLCI was up 3.02 points to 1,532.93, lifted by gains including at BAT, DiGi, PPB, Petronas Gas and KLK.

Gainers led losers by 242 to 161, while 223 counters traded unchanged. Volume was 188.65 million shares valued at RM166.86 million.

Asian stocks rose after the U.S. central bank signalled it was in no rush to scale back support for the economy, keeping intact demand for riskier assets, according to Reuters.

The Bank of Japan is also expected to maintain its ultra loose monetary policy later in the day and indicate its readiness to ease further if damage from last month's earthquake proves bigger than expected, it said.

At the regional markets, Japan's Nikkei 225 was up 1.28% to 9,815.49, Hong Kong's Hang Seng Index added 0.80% to 24,082.89, South Korea's Kospi rose 0.64% to 2,220.76, Singapore's Straits Times Index up 0.36% to 3,194.06, Taiwan's Taiex gained 0.31% to 9,077.06 while the Shanghai Composite Index edged up 0.21% to 2,931.58.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi said that due to the DJIA's positive tone last night, the FBM KLCI could remain stronger today.

'There could be an initial gap-up move, followed by profit-taking later in the day.

'We expect further range trading for the FBM KLCI. As such, invest with a short-term time horizon,' he said.

On Bursa Malaysia, BAT was the top gainer at mid-morning and rose 46 sen to RM47.74; DiGi rose 24 sen to RM29.06, PPB 20 sen to RM16.88, F&N and Daibochi 10 sen each to RM17.40 and RM2.71, Wah Seong nine sen to RM2.24, while Petronas Gas and KLK were up eight sen each to RM11.28 and RM20.98 respectively.

Focus Lumber which made its debut on the Main Market today was the most actively traded counter with 17.33 million shares done. The stock added 37 sen to 97 sen.

Other actives included Hubline shares and warrants, PLUS, Ancom Logistics, Bright Packaging and AsiaBio.

Decliners included Dutch Lady, LPI Capital, United PLANTATION []s, Hong Leong Industries, BHIC, Unisem, Cepco, Coastal Contracts and Aeon.

CIMB Research has Buy on Land & General

KUALA LUMPUR: CIMB Equities Research has a Buy on Land & General at 47.5 sen where it is trading at a price-to-book value of 1.1 times.

The research house said on Thursday, April 28 that it sees a triangle pattern forming, just like AFG above but on a slightly larger scale.

'This triangle took more than 2 years and it is not yet complete. It needs one more pullback before it can breakout of its consolidation phase,' it said.

CIMB Research said both its MACD and RSI have flattened out, possibly suggesting that the pullback could be taking place soon.

'Traders should do well buying on weakness here, preferably near the moving averages currently at RM0.45-0.46. As long as the low of 42 sen is not taken out, this pattern holds. A breakout above 50.5 sen would likely signal that the breakout run is taking place and it could reach as high as 63.5 sen to 65 sen if the 58.5 sen resistance is breached,' it said.

HDBSVR sees KLCI breaking away from 1,530

KUALA LUMPUR: Hwang DBS Vickers Research said the benchmark FBM KLCI looks set to break away from the resistance mark of 1,530 on Thursday, April 28.

'It could climb and slog its way towards the next resistance target of 1,550. This comes as key U.S. equity indices jumped to new post-crisis highs after posting an increase of between 0.6% and 0.8% last night,' it said.

HDBSVR said essentially, investors were buoyed by the outcomes of the U.S. Federal Open Market Committee meeting, as follow: (a) it has maintained the range for federal funds rate at 0% to 0.25%; (b) it would keep the low interest rates for an extended period; and (c) it would complete its quantitative easing program of purchasing US$600b of longer-term Treasury securities by end-2Q11.

As for stocks which could see trading interest at Bursa Malaysia, it said it included (a) RHB Capital, following media talk that Chinese banks would be tendering for the block of shares owned by Abu Dhabi Commercial Bank in the banking group;

(b) Masterskill, after tying up with University of Newcastle from Australia to offer joint academic programs as part of its diversification plan to venture into other education fields; and

(c) Focus Lumber, a niche plywood manufacturer due for listing.

OSK Research has SELL on Unisem, FV RM1.63

KUALA LUMPUR: OSK Research said Unisem's 1QFY11 core earnings of RM5.1m fell short of both consensus and its estimates at 2.7% and 2.5% of the projections respectively.

It said on Thursday, April 28 this was due to an industry-wide inventory correction and continued appreciation of RM against USD.

'Changing our valuation basis from P/NTA to PER to better reflect its recurrent earnings, our Fair Value now stands at RM1.63, pegged at 8x FY11 PER.

'In view of the recent share price run up, which we deem unjustified as the potential setbacks from inventory adjustment and RM appreciation will cast a dark cloud over its near-term earnings visibility, we downgrade our call to a SELL,' it said.

Focus Lumber most active, top gainer on debut

KUALA LUMPUR: Focus Lumber Bhd made an impressive debut on the Main Market of Bursa Malaysia on Thursday, April 28 and was the most active counter in early trade.

At 9.05am, Focus Lumber jumped 40 sen to RM1 with 6.11 million shares done.

RHB Research has valued Focus Lumber at 78 sen, based on target PER of 7.0 times FY11 EPS of 11.2 sen. The offer price was 60 sen.

Unisem slides on downgrades

KUALA LUMPUR: Shares and warrants of UNISEM (M) BHD [] fell in early trade on Thursday, April 28 after it was downgraded by OSK Research and CIMB Research.

At 9.20am, Unisem shares fell seven sen to RM1.90 while its warrants shed two sen to 48 sen.

OSK Research said Unisem's 1QFY11 core earnings of RM5.1m fell short of both consensus and its estimates at 2.7% and 2.5% of the projections respectively.

It said on Thursday, April 28 this was due to an industry-wide inventory correction and continued appreciation of RM against USD.

'Changing our valuation basis from P/NTA to PER to better reflect its recurrent earnings, our Fair Value now stands at RM1.63, pegged at 8x FY11 PER.

'In view of the recent share price run up, which we deem unjustified as the potential setbacks from inventory adjustment and RM appreciation will cast a dark cloud over its near-term earnings visibility, we downgrade our call to a SELL,' it said.

Meanwhile, CIMB Research in a note April 28 said although it expects the remaining quarters to be stronger, Unisem's 1Q11 disappointed, being only 3% of its own and consensus full-year estimates.

It said shortfalls in sales and margins were to blame.

The research house chopped its FY11-13 EPS by 39-47% for lower 1) sales assumptions to reflect lower loading and ringgit firming and 2) margin estimates due to lower operating leverage and higher commodity prices.

'Given the poorer sector outlook and weaker near-term earnings, we apply a wider discount of 40% (30% previously) to Unisem's mid-cycle P/BV of 2.2 times. This, plus our earnings cuts, reduces our target price from RM2.44 to RM2.08.

'We downgrade Unisem from Outperform to NEUTRAL given its poor results, lack of immediate catalysts and outperformance against the market since our upgrade. Switch to Jobstreet,' it said.

Nikkei rises for second day, Panasonic climbs

TOKYO: Japan's Nikkei average rose for a second day on Thursday after U.S. stocks gained following the Federal Reserve's decision to hold short-term interest rates near zero, though investors may be wary of active buying ahead of key earnings and a long weekend in Japan.

Panasonic Corp, Nomura Holdings and Honda Motor are among major companies due to announce earnings after the close on Thursday.

Panasonic outperformed the market, rising 1.2 percent to 987 yen after the Nikkei newspaper said it would reduce its workforce by 40,000 to streamline its operations.

The benchmark Nikkei average rose 0.5 percent to 9,744.25. The broader Topix advanced 0.6 percent, to 845.09. ' Reuters

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CIMB Research upgrades Wah Seong to Outperform from Neutral

KUALA LUMPUR: CIMB Equities Research is upgrading Wah Seong Corp from Neutral to OUTPERFORM in view of the potential rerating catalysts of success in new markets and pipe coating contract awards.

It said on Thursday, April 28 that its phone conversation with management on Wednesday shed more light on Wah Seong's recently-announced JVs with US-based Insituform.

CIMB Research said this relationship could allow Wah Seong to venture into the US and set up a deepwater pipe coating plant in the Gulf of Mexico area.

It also noted that pipe coating prospects in Malaysia and Australia have improved. Wah Seong is already bidding for a Kebabangan pipe coating package.

'Imputing potential contributions from the JVs, we raise our EPS forecasts by 7.2% for FY12 and 7.1% for FY13 while keeping our FY11 numbers unchanged.

'Our target price goes up from RM2.50 to RM2.70, still pegged to our target market P/E of 14.5x,' it said.

Buffett's Berkshire says Sokol deceived, broke law

NEW YORK: Former Berkshire Hathaway executive David Sokol intended to deceive the company in the way he disclosed his interest in Lubrizol Corp and violated Delaware law in the way he behaved, the company's audit committee concluded in a scathing report on Wednesday, April 27.

The report, released by Berkshire just three days before its annual meeting, leaves Sokol open to civil proceedings, a move Berkshire's board said it was considering.

It may also answer the demands of shareholders who expected CEO Warren Buffett to address the controversy at that meeting, his plans to remain silent on the matter notwithstanding.

Buffett previously said he would have nothing further to say about Sokol's actions, a stance that became untenable over time given the intense pressure on the conglomerate.

Though the report suggests Buffett was repeatedly deceived as to what was happening around him, one shareholder said it was also crafted to exonerate him from wrongdoing.

"This report makes it clearly look like this was not Warren Buffett's fault, this was Sokol's fault," said Michael Yoshikami, chief executive of wealth manager YCMNET Advisors and a Berkshire shareholder. "There really is an effort here to make clear that this was not Warren Buffett's behavior in any way, this was Sokol's behavior."

Buffett announced Sokol's resignation in March, noting that Sokol bought shares in Lubrizol before suggesting to Buffett that Berkshire buy the company. While Sokol mentioned to Buffett in "passing" that he held some Lubrizol stock, Buffett said he only later found out that Sokol held nearly 100,000 Lubrizol shares worth about $10 million.

Sokol made a profit of about $3 million -- a gain that could be at risk. The Berkshire board said it was still considering legal action against Sokol to, among other things, recover any trading profits he made.

"It hardly sounds like Berkshire is trying to circle the wagons to protect Sokol," said Francis Pileggi, a partner at Fox Rothschild LP in Wilmington, Delaware. "If I had my druthers, I would rather be representing Berkshire in this matter than Sokol in a Delaware court."

The law firm representing Sokol, Dickstein Shapiro, could not immediately comment on the Berkshire statement.

COOPERATE WITH GOVERNMENT

The board also said it would cooperate with any government investigation. A spokesman for the Securities and Exchange Commission declined to comment.

Sokol, who used to run Berkshire subsidiaries MidAmerican and NetJets, was widely seen as Buffett's heir apparent, an image Buffett biographers say the "Oracle of Omaha" cultivated.

Yet Sokol, in his one public appearance since the scandal broke, told CNBC he had no aspiration to the job. In Wednesday's statement, Berkshire said Sokol reiterated as much to Buffett before Buffett announced Sokol's resignation.

When Buffett made that announcement, he said he believed Sokol had not done anything unlawful. The statement Wednesday seemed to suggest otherwise.

"His misleadingly incomplete disclosures to Berkshire Hathaway senior management concerning those purchases violated the duty of candor he owed to the company," the board said -- noting that an executive's duty of candor was part of the duty of loyalty under Delaware law where Berkshire is incorporated.

Berkshire's board also said certain answers Sokol gave to Buffett in response to questions about the nature of his holdings appeared "intended to deceive."

THREE MEETINGS

In total, the 18-page statement uses variations on the word "violation" some 11 times.

The statement said that the board's audit committee held three meetings this month to consider the report.

The three audit committee members are chairman Thomas Murphy, 85, and a decades-long Buffett friend; Donald Keough, 84, a former president of key Buffett holding Coca Cola Co; and former Microsoft general manager Charlotte Guyman, 54.

Their report is likely to take some pressure off Buffett this weekend when tens of thousands of shareholders descend on Omaha for Berkshire's annual festival-cum-general-meeting.

"One way or another, Mr. Buffett will have to address this. It's conceivable that this release relives Mr. Buffett from the chore of addressing what is an unpleasant issue," said Jerry Bruni, CEO and portfolio manager at J.V. Bruni and Co, which owns Berkshire shares and has $450 million of assets under management.

RHB Research values Focus Lumber at 78 sen

KUALA LUMPUR: RHB Research has valued Focus Lumber Bhd, which will be listed on Wednesday, April 28 at 78 sen, based on target PER of 7.0 times FY11 EPS of 11.2 sen. The offer price is 60 sen.

It said this was at a 5.0 times multiple discount to its target PER of 12 times FY11 EPS for the timber sector.

'The discount is to reflect the lack of timber concession and smaller market capitalisation.

'At our target price, Focus Lumber is trading at a reasonable P/NTA ratio of 0.7 times with an attractive net dividend yield of at least 5.6%. Upon listing, Focus Lumber's net cash position will increase to RM27.1m, which translates to 26 sen a share,' it said.

Under its floatation exercise, the company raised RM7.32 million from the issuance of 12.2 million new shares of 50 sen each at an offer price of 60 sen.

ECM Libra Research said at the IPO price, the stock was valued at 5.5 times FY10 price-to-earnings was fully valued as compared to the historical average price-to-earnings of 5.3 times of Eksons, also a small cap plywood player.