Alam Maritim posts net loss of RM7.38m in 1Q

KUALA LUMPUR: ALAM MARITIM RESOURCES BHD [] kicked off the first quarter of its financial year 2011 with net losses of RM7.38 million on weaker performance by it offshore support vessels segment.

It reported on Friday, May 27 the net loss for 1Q ended March 31, 2011 was a stark contrast of RM20.51 million a year ago.

Revenue fell 48% to RM34.68 million from RM66.87 million. Loss per share was 0.9 sen compared with earnings per share of 4.0 sen.

Its cash and cash equivalents at end of March 31, 2011 declined to RM94.35 million compared with RM167.15 million. Net cash generated from operating activities fell to RM4.38 million from RM52.68 million.

Elaborating on the first quarter net loss in 1Q ended March 31, 2011 was due to lower revenue and contribution margin registered for the current financial period under review.

'In addition, share of loss of associates and jointly controlled entities has also contributed to the adverse financial performance as compared to substantial share of profit of associates and jointly controlled entities for same period last year,' it said.

Alam Maritim added the group's revenue for 1QFY11 of RM34.7 million was lower than the 4QFY10 preceding quarter's revenue of RM40.2 million (restated) by 13.7% mainly due to lower revenue registered by offshore support vessels segment as a result of lower vessel utilisation rate.

'The loss before taxation for the current financial quarter of RM6.7 million was significantly lower as compared to loss before taxation of RM73.6 million (restated) for the preceding quarter. It was mainly attributable to higher other operating expenses incurred in the preceding quarter as a result of provision for doubtful debts and foreign exchange losses,' it said.

Ta Ann 1Q earnings jump 232% to RM26.55 on-yr

KUALA LUMPUR: Higher overall selling prices for timber products and better performance for the PLANTATION []s business pushed TA ANN HOLDINGS BHD []'s first quarter earnings up by 232% to RM26.56 million from RM7.89 million a year ago.

It said on Friday, May 27 revenue rose 10.3% to RM181.44 million from RM179.93 million while earnings per share were 10.32 sen compared with 3.10 sen.

'The higher overall selling prices of timber products coupled with the increased tonnage of fresh fruit bunches sold at much higher prices improved the profit margin substantially and resulted in a surge in profit,' it said.

However, when compared with 4Q2011's revenue and net profit of RM220.19 million and RM29.38 million, the revenue and net profit for the quarter fell by 17.6% and 6.6% respectively.

'A drop in sales volume, in particular, log export and crude palm oil (CPO) sales, resulted in the lower revenue for quarter under review, but the higher selling prices increased the overall profit margin,' it said.

On the outlook for the current year, Ta Ann said demand for timber and timber products are projected to remain strong in 2011.

It said the reduced supply of logs in the market place and strong demand have pushed up the log price.'' For instance, average plywood selling price has risen by more than US$100 per cubic metre from 2010's average selling price of US$471 per cubic metre.

'Demand for plywood is expected to sustain in the year under review, with the improved housing starts and expected commencement of rebuilding of township damaged by tsunami and earthquake in Japan.

'Coupled with the expected higher production of fresh fruit bunches and CPO, the board is confident that the performance of the year 2011 will be better, barring unforeseen circumstances,' it said.

Tradewinds Corp 1Q net profit slumps 22% to RM13.12m

KUALA LUMPUR: Tradewinds Corp Bhd saw its first quarter earnings decline by 21.9% to RM13.12 million from RM16.82 million a year as it was impacted by lower rental from the PROPERTIES [] division and lower investment income.

It said on Friday, May 27 a drop of 18.5% on profit before tax was mainly due to higher finance costs and lower share of associates' results.

Revenue was 1.7% lower at RM123.11 million compared with RM125.24 million. Earnings per share were 1.19 sen compared with 1.52 sen.

Tradewinds Corp said it expected the performance of the hotel division would not show improvement compared to 2010 due to the refurbishment being carried in certain hotels. But it expected the renovation to be benefit the group in the medium term.

'The investment properties' performance will be affected as the group is embarking on the redevelopment of Menara Tun Razak and CONSTRUCTION [] of a new tower block. The redevelopment, however, will have positive impact in the longer term,' it said.

IJM posts 4Q net loss of RM20.19m on overseas projects

KUALA LUMPUR: IJM Corp Bhd swung into the red in the fourth quarter ended March 31, 2011 with net loss of RM20.19 million versus a net profit of RM111.04 million a year ago due to its overseas operations.

It said on Friday, May 27 operating profit before tax fell by 53.9% to RM75 million compared to RM163 million a year ago 'following the provision made against contractual claims, recovery of receivables and project losses in some of the group's overseas projects'.

Its revenue rose 20.9% to RM1.047 billion from RM866.46 million mainly due to the CONSTRUCTION [], property, industry and infrastructure divisions. It announced an interim dividend of 7.0 sen a share.

For the full year, net profit slipped 3.4% to RM321.32 million from RM332.58 million. Revenue declined to RM3.72 billion from RM4.01 billion.

IJM Corp said in the 4Q it was impacted by the crude palm oil (CPO) pricing swaps, notching losses of RM12.08 million for the year, due to the price differential between market price and contracted price. This was due to the increase in market CPO price above the contracted prices.

It also said RM355.03 million was incurred up to March 31, 2011 to develop the oil palm PLANTATION []s in Indonesia. 'A further sum of RM503.22 million has been included in the above stated capital commitment,' it said.

On the outlook, IJM Corp said the group's construction division's performance was expected to improve as order book replenishment prospects remain encouraging while many of the group's local projects are expected to go full-swing in the coming financial year.

'Following the strong results achieved in the current financial year, the group's property division expects to sustain its performance in the coming financial year on the back of strong unbilled sales in excess of RM 1 billion.

'Likewise, the group's industry division expects a recovery in the sales of building materials in tandem with the expected growth in construction activity. Meanwhile, the expected recovery in fresh fruit bunches (FFB) production and the current high crude palm oil prices will likely augur well for the group's plantation division,' it said.

IJM Corp said the Malaysian tolling and port operations were expected to continue to provide steady revenue streams to the Group's Infrastructure division.

However, it cautioned that initial expensing of its higher finance costs and amortisation of new toll concessions in India were expected to dampen its divisional results.

L&G in the red in 4Q, FY earnings fall 65%

KUALA LUMPUR: Land & General Bhd posted losses of RM3.22 million in the fourth quarter ended March 31, 2011 compared'' with net profit of RM12.91 million a year ago mainly due to losses in quoted investments.

'The loss for the current quarter arose mainly due to'' fair value loss of RM3.5 million recognized on its quoted investments, net interest expenses of RM1.1 million recognised from FRS 139 implementation, and share of losses from its jointly controlled entities of RM1.7 million,' it said.

L&G said the high profit in 4Q 2010 was mainly due to the recognition of exceptional income of RM10.1 million and the share of profit from its jointly controlled entities of RM1.5 million arising from the profit recognition on its development of residential lots in Australia.

It said revenue which higher at RM15.78 million in 4Q 2011 compared with RM6.11 million a year ago, loss per share at 0.54 sen versus 2.16 sen a year ago.

For FY ended March 31, 2011, it was still profitable at RM10.21 million, but down 65.5% from the RM29.68 million in FY March 2010. Revenue was RM44.20 million, up 33% from RM30.21 million.

'The higher profit posted in the preceding year (FY ended March 31, 2010) were mainly from the recognition of exceptional income of RM26.7 million,' it said.

L&G explained there was a foreign exchange gain realized from the capital distribution of its foreign subsidiary of RM11.0 million, gain from disposal of its asset classified as held for sale of RM3.3 million and write back of impairment loss on its investments of RM8.8 million and provision for doubtful debts no longer required of RM2.1 million.

'In the current financial year, the share of losses from its jointly controlled entities of RM1.7 million, mainly due to the impairment loss of certain investments and interest costs on FRS 139 implementation, was offset by the net fair value gain on its quoted investments of RM4.8 million,' it said.

Material world lifts stocks; Dow, S&P off for fourth week

NEW YORK: The Dow and S&P 500 closed out their fourth week of losses with a small gain on Friday, May 27 but only with the help of a weaker dollar boosting metals prices and basic materials stocks.

Thin trading made for a lackluster day on Wall Street, with desks short-staffed before the Memorial Day holiday that will keep U.S. markets closed on Monday. Volume was the second lightest so far this year.

The greenback fell broadly after weaker-than-expected U.S. consumer spending and housing data stoked worries that the economic recovery is losing momentum. The U.S. Dollar Index .DXY fell 1 percent, its largest drop since January 13.

Freeport-McMoRan Copper & Gold Inc (FCX.N) rose 2.7 percent to $51.73. The S&P materials sector index .GSPM added 1.03 percent as the dollar's decline helped lift the prices of metals and other commodities. The Reuters-Jefferies CRB index .CRB was headed for a third straight week of gains.

The inverse correlation of the dollar to equities "seems to be a trend that you can focus on as an investor for the time being," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.

"The logic is that a weaker dollar helps increase exports, sales and profits for multinational companies in the United States."

The Dow Jones industrial average .DJI added 38.82 points, or 0.31 percent, to 12,441.58. The Standard & Poor's 500 Index .SPX rose 5.41 points, or 0.41 percent, to 1,331.10. The Nasdaq Composite Index .IXIC gained 13.94 points, or 0.50 percent, to 2,796.86.

For the week, the Dow lost 0.56 percent, the S&P shed 0.16 percent and the Nasdaq dropped 0.23 percent.

It was the fourth straight week of losses for both the Dow and the S&P 500. For the Nasdaq, it was the third decline in the last four weeks.

About 5.44 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, the second-lowest trading volume so far in 2011 by a thin margin. It fell way below last year's estimated daily average of 8.47 billion.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of nearly 3 to 1, while on the Nasdaq, nearly two stocks rose for every one that fell.

Bank stocks led gains in Europe and also boosted the U.S. market. Bank of America (BAC.N), which had the heaviest turnover on the New York Stock Exchange, rose 2 percent to $11.69. It was the Dow's biggest percentage gainer.

Medco Health Solutions Inc (MHS.N) will lose a major pharmacy benefit contract to CVS Caremark Corp (CVS.N) starting next year, a setback that drove its shares down 9 percent to $58.66. CVS shares rose 1.7 percent to $38.80.

On the macroeconomic front, separate reports showed the U.S. economy remained sluggish early in the second quarter with high gasoline prices crimping consumer spending and bad weather helping to push home resales to a seven-month low in April. - Reuters

Investors bracing for QE2 final countdown

LONDON: Investors are preparing themselves for further market tension as Europe's debt crisis lingers on while data surprises on the downside just when the countdown to the end of the U.S. bond buying programme begins in earnest, according to Reuters on Friday, May 27.

World stocks, measured by MSCI, are set for the fourth consecutive weekly losses, with their year to date gains shrinking to just 3.6 percent from nearly 9 percent earlier this year.

A retreat in risk tolerance stems from softening in data -- most recently fresh signs of a slowdown in the U.S. labour market and
weaker-than-expected U.S. first-quarter growth.

Barclays Capital says its data surprise index for the euro zone, the United States, Britain and Japan is firmly in negative territory with downward surprises as sharp as during the worst of the global financial crisis in autumn 2008 on some measures.

Data in the coming week, including U.S. and German jobs reports and euro zone inflation, will be key in determining whether investors accelerate risk unwinding ahead of the end of the $600 billion Treasury purchases (QE2) in June.

But that is not to say investors are seriously worried about yet another round of the Federal Reserve's easing programme and considering moving back to risk-averse positions involving buying government bonds and money market instruments.

"The data in the U.S. are patchy... but we think that the Fed will stick to what it has said already. If the data continues to disappoint you may find the bond market begins to think the Fed will change its mind," said Kevin Gardiner, head of investment strategy at Barclays
Wealth.

He added that potential wobbles in the bond market from data disappointment may offer opportunities to sell bonds.

Goldman Sachs said its recent growth forecast downgrades in economies of the United States, China and euro zone will erode near-term returns among different asset classes, although its global growth estimate is still robust at 4.3 percent.

"As earnings and multiples erode, equity markets will have less upside potential than before," Goldman said in a note to clients.

"It is, however, important to reiterate that we remain meaningfully constructive across equity markets, with year-end expected returns now
running in low double-digits."

It expects the S&P 500 index to end the year at 1,450 -- nearly 10 percent higher than now -- Europe's STOXX 600 at 320, TOPIX at 900 and
MSCI Asia-exJapan index at 530.

DEBT CRISIS AND ECB

The euro zone sovereign debt crisis will likely remain an issue that would weigh on investor minds, with a particular focus on whether Greece would need to restructure its debt as it faces a 13.4 billion funding crunch next month.

Investors are jittery after Jean-Claude Juncker, head of euro zone finance ministers, said on Thursday the International Monetary Fund could withhold the next slice of aid to Greece due next month in a comment which some analysts said was designed to pressure Greek political leaders to act.

Portugal may also come into focus in the coming week as the country prepares for a general election on June 5.

The International Monetary Fund technical mission is expected in Lisbon in May 30-31 to accompany the implementation of the 78-billion-euro bailout plan agreed last month.

The euro zone debt crisis is likely to lead to material asset allocation changes if it changed euro zone interest rate expectations.

Investors currently expect the European Central Bank to raise interest rates by a quarter point by end-2011 after raising them last month to
1.25 percent.

"The course of events will remain very changeable and some politicians' desire to 'burden share' remains a source of event risk. The short end looks more attractive for the moment as upcoming weaker activity data and EMU stress may impact ECB hikes expectations," BNP
Paribas said in a note to clients. - Reuters

Kulim sees another good year after 1Q earnings jump 105%

KUALA LUMPUR: Kulim (Malaysia) Bhd sees another good year in 2011 after its earnings jumped 105% to RM127.10 million in the first quarter ended March 31, 2011 (1QFY11) from RM61.89 million a year ago.

It reported on Friday, May 27 revenue climbed 34% to RM1.657 billion from RM1.234 billion while earnings per share were 10.12 sen compared with 16.40 sen a year ago.

Pre-tax profit surged 154% to RM381.21 million in 1QFY11 compared to RM150.09 million a year.

'Palm products prices are off their recent high but they are still at attractive levels and looks resilient for the coming months. The group is optimistic for a continuation of a good 1st quarter performance into the later quarters of the year,' it said.

Kulim said the food and restaurants group was growing within expectation in revenue and profits. It said while there were challenges in managing costs increases but these had been successfully managed by sale volume increases, and in the current year the ameliorating effect of the strong ringgit.

It was also upbeat for the shipping services, which it said would be boosted with the delivery of two new vessels. 'The sector is expected to contribute positive results this year,' it said.

In its review of the 1QFY11 operations, Kulim said the firmer palm products prices secured for the quarter contributed to the significantly better performance on the oil palm sector. NBPOL recorded favourable result from price effects as well as higher sales from the larger group post Kula (CTP) acquisition completed in May last year.

Kulim said the group's fresh fruit bunches (FFB) production for 1Q was 0.72% higher at 115,615 tonnes compared to 114,789 tonnes.

Total FFB processed by the Group mills for 1QFY11 was 175,068 tonnes which was 0.47% lower compared to a year ago.'' The group's oil extraction rate for 1Q2011 was 19.90% compared to 20.65% a year ago.

On QSR group, it said QSR posted revenue of RM779.8 million, up 7.6% from RM724.7 million a year ago. Profit before tax of RM63.7 million compared with RM60.0 million a year ago.

KFC Holdings (Malaysia) Bhd's revenue rose 7.2% to RM644.2 million from RM600.7 million. The KFC restaurants segment saw its revenue increase 9.4% to RM489.5 million while the integrated poultry segment saw its revenue grow 4.8% to RM130.9 million.

KFCH registered a profit before tax of RM52.7 million in the 1QFY11 current quarter as against RM50.1 million a year ago.

#Stocks to watch:* Sime, IJM, Alam Maritim, Ta Ann, Kulim

KUALA LUMPUR: The market could trade sideways on Monday, May 30 due to the lack of impressive earnings growth late last week, analysts said.

With the corporate season coming to an end on May 31, with Maxis Bhd and Axiata Group Bhd among the remaining heavyweights to announce the results, the market would need more stimuli to spur buying interest.

Stocks which could see trading interest would be SIME DARBY BHD [], IJM Corp, ALAM MARITIM RESOURCES BHD [], TA ANN HOLDINGS BHD [] and Kulim (Malaysia) Bhd. All the companies reported their results on Friday.

Sime Darby posted net profit of RM820.12 million in the third quarter ended March 31, 2011 compared with net loss of RM308.63 million a year ago. Revenue increased by 39.8pct to RM10.59 billion compared with RM7.57 billion. Earnings per share were 13.66 sen.

IJM Corp swung into the red in the fourth quarter ended March 31, 2011 with net loss of RM20.19 million versus a net profit of RM111.04 million a year ago due to its overseas operations. The losses were expected by the market as it would have to make provisions and losses in its international operations.

Its operating profit before tax fell by 53.9% to RM75 million compared to RM163 million a year ago 'following the provision made against contractual claims, recovery of receivables and project losses in some of the group's overseas projects'.

Its revenue rose 20.9% to RM1.047 billion from RM866.46 million mainly due to the CONSTRUCTION [], property, industry and infrastructure divisions. It announced an interim dividend of 7.0 sen a share

Land & General posted losses of RM3.22 million in the fourth quarter ended March 31, 2011 compared'' with net profit of RM12.91 million a year ago mainly due to losses in quoted investments.

'The loss for the current quarter arose mainly due to'' fair value loss of RM3.5 million recognised on its quoted investments, net interest expenses of RM1.1 million recognised from FRS 139 implementation, and share of losses from its jointly controlled entities of RM1.7 million,' it said.

Alam Maritim posted net losses of RM7.38 million on weaker performance by it offshore support vessels segment. Net loss for 1Q ended March 31, 2011 was a stark contrast of RM20.51 million a year ago.

Revenue fell 48% to RM34.68 million from RM66.87 million. Loss per share was 0.9 sen compared with earnings per share of 4.0 sen.

On a more'' upbeat note, Ta Ann said higher overall selling prices for timber products and better performance for the PLANTATION []s business pushed Ta Ann Holdings Bhd's first quarter earnings up by 232% to RM26.56 million from RM7.89 million a year ago.

Revenue rose 10.3% to RM181.44 million from RM179.93 million while earnings per share were 10.32 sen compared with 3.10 sen.

Kulim's earnings jumped 105% to RM127.10 million in the first quarter ended March 31, 2011 (1QFY11) from RM61.89 million a year ago.

Its revenue climbed 34% to RM1.657 billion from RM1.234 billion while earnings per share were 10.12 sen compared with 16.40 sen a year ago.

Transmile mandates Kenanga IB to search for investors

SUBANG JAYA: TRANSMILE GROUP BHD [], which was recently delisted, has mandated Kenanga Investment Bank Bhd to look for potential investors to inject funds into the ailing cargo airline, said its managing director Liu Tai Shin.

The group is hopes the entry of new investors would help in its turnaround, as it has been recording losses since 2007. It made some progress on its debt restructuring by disposing four of its wide-body aircraft to Federal Express Corp for US$66.99 million or RM200.06 million.

However, Liu said on Friday, May 27 the debt revamp was stalled by the lawsuits faced by the group.

The group risked being wound up by Malaysian Trustees Bhd which represents the interest of five medium-tern note (MTN) holders who are collectively owed RM105 million. In April last year, Malaysian Trustees filed a petition to wind up Transmile after it failed to honour its obligations.

'If they had agreed to allow us to continue, it would have allowed the company to invite potential new investors to come in to participate in the redevelopment of Transmile. But because the banks are falling with us, one particular group, so we are a little bit stalled,' he said after the shareholders meeting.

Liu said business is usual at Transmile group after it has been de-listed. The group will continue operational and serve its customers with the board of directors and the management team at its front wheel, while Kenanga Investment Bank would be looking for the new investors to turn around the company.

'The delisting has nothing to do with our business operation. This is just like previously we're on the premier league, but now we're on the second division. But the football team is here, we've got our work to do,' he said.

Liu added the group was approached by quite a number of interested parties, but declined to elaborate.

He said the potential new investors would have to be interested in the business and have the financial capabilities to take it to the next level.

'We have not identified any particular institution, we have already worked out the process how we want to tackle the invitation. The merchant banker has been appointed to handle this, so they will be dealing with queries,' he explained.

Liu also rejected the rumors for a management buy-out to occur, and insist that is not the priority of the board of directors.

On the positive note, the group's chief operating officer Robert John Hyslop said that outlook for the industry is positive, as survey done by aviation association such as the International Air Transport Association (IATA) and aircraft makers Boeing Co. and Airbus SAS suggest the air cargo movements in Asia Pacific to be the fastest growing geographical segment in the aviation industry.

The group has a fairly good mix of revenue streams as most of its business segments are profitable'' such as flight chartering, leasing and selling cargo capacities to freight-forwarders agents.

However, according to Hyslop, the cargo capacity business was fluctuating in line with the movement of the fuel price, which makes a very major part of the business. Last year, the cargo capacity business charted a high growth rate of more than 60%, he said.

'I think we got a good mix of revenue streams where we are not that type of airline that will go out and prospect for new business without thoroughly researching and understanding the market and our customers,' he said, adding that the airline industry in Asia Pacific is poised for a good growth rate of between 5% and 6%, and acknowledging that Transmile will be benefitting from such growth.

#Update* KLCI closes at 6-week high, nudged up by Tenaga

KUALA LUMPUR: The FBM KLCI closed at a six-week high on Friday, May 27, with Tenaga Nasional as the main factor as investors expected positive news for the power giant in getting a tariff increase.

Prime Minister Datuk Seri Mohd Najib Tun Razak said the government will study first the report submitted by the National Economic Council (NEC) on the electricity tariff.

"Whatever it is, we will see first. We cannot say anything. That is their report," he told a press conference after chairing the Umno Supreme Council meeting.

At 5pm, the FBM KLCI was up 7.75 points or 0.5% to 1,548.69, the highest since April 11. Turnover was 947.81 million shares valued at RM1.69 billion. The broader market was cautious with declining stocks beating advancers 464 to 314 while 300 stocks were unchanged.

The KLCI's historic closing was 1,574.49 on Jan 17.

Crude palm oil futures rose RM22 to RM3,438, making it the third weekly gains as buyers in Europe increased their imports to replenish their stockpiles.

Light crude oil added 34 cents to US$100.57. The ringgit was at 3.0315 to the US dollar, compared with the previous close of 3.0457.

Among the regional markets, Japan's Nikkei 225 fell 0.42% to 9,521.94, Shanghai's Composite Index lost 0.97% to 2,709.95. Hong Kong's Hang Seng Index added 0.95% to 23,118.07 and Taiwan's Taiex 0.25% higher to 8,810 and Singapore's Straits Times Index added 0.38% to 3,135.52.

At Bursa Malaysia, Tenaga rose 28 sen to RM6.58, pushing up the 30-stock KLCI up by 3.57 points while genting added 12 sen, nudging the index by another 1.05 points. Genting Malaysia's 10 sen gain to RM3.62 gave the index another 0.92 point push.

PLANTATION []s were also among the gainers on the bullish outlook for CPO, with KLK rosomg 22 sen to RM22.10 and Batu Kawan 12 sen. Sime Darby added two sen to RM9.13 and IOI Corp four sen to RM5.34.

Hong Leong Bank rose 30 sen to RM12.20, Nestle 28 sen to RM47.98 while Yinson climbed 13 sen to RM1.44.

KNM was the most active with 103.44 million shares done, falling 38 sen to close at RM2.15 on the weaker first quarter earnings.

Perstima fell 57 sen to RM4.60 and it was the top loser of the day. Profit taking saw F&N giving up 30 sen to RM19.20. Other decliners were MSC, Sindora, Ta Ann, Parkson and Tradewinds.

#Update* UOA Devt final retail price fixed at RM2.52

KUALA LUMPUR: UOA Development Bhd's institutional price has been fixed at RM2.60 and the final retail price at RM2.52.

At RM2.52, this was below the indicative retail price of RM2.90.

CIMB Investment Bank Bhd said on Friday the price was fixed following the completion of the book-building under the institutional offering on Thursday, May 26.

The retail offering closed at 5pm on Wednesday, May 25.

It said as the final retail price of RM2.52 per offer share was lower than the retail price, a refund of the difference of 38 sen per offer share would be made to the successful applicants within 10 market days.

The listing exercise of UOA Development included an offer for sale of up to 407 million existing shares of 5.0 sen each.

Of the 407 million shares there would be an offer for sale of 120 million ' of which 50 million shares would be offered to local and foreign institutions to be determined via a book building exercise and 70 million shares to the public at an indicative retail price of RM2.90 per share.

There was also a public issue of 287 million new shares to the Malaysia and foreign institutional and selected investors approved by the Ministry of International Trade and Industry.

RHB Research Institute had valued UOA Development at RM3.45, at its RNAV per share and in line with its valuations on IJM Land Bhd.

'The implied price-to-earnings and price-to-book based on our RM3.45 indicative fair value are 18 times and 2.9 times for FY11, which are reasonable based on the sector's overall valuations," the research house said.

Sime Engineering sells fabrication yards for RM695m

KUALA LUMPUR: Sime Darby Engineering Sdn Bhd is selling its two fabrication yards for a total of RM695 million, which was above the RM641 million book value of the assets as at 31 March 2011.

It said on Friday, March 27 it was selling its Teluk Ramunia fabrication yard to Petroliam Nasional Bhd for RM296 million cash.

It was also selling its Pasir Gudang fabrication yard to Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) for RM399 million cash.

'The decision to dispose of the assets was made following the completion of the group's portfolio review exercise,' it said.

#Update* Sime Darby chalks up RM820m net profit in 3Q

KUALA LUMPUR: SIME DARBY BHD [] posted net profit of RM820.12 million in the third quarter ended March 31, 2011 compared with net loss of RM308.63 million a year ago.

The conglomerate announced on Friday, May 27 that revenue increased by 39.8% to RM10.59 billion compared with RM7.57 billion. Earnings per share were 13.66 sen versus loss per share of 5.14 sen.

For the nine-month period, its net profit jumped 192% to RM2.35 billion compared with RM804.20 million a year ago, due to higher contributions from the PLANTATION [], motors, industrial and energy and utilities divisions.

The pre-tax profit increased by more than two fold, to RM3.448 billion against RM1.716 billion. Revenue increased by 24.9% to RM29.66 million compared with RM23.74 billion.

Sime Darby's president and group chief executive, Datuk Mohd Bakke Salleh said: 'This marked improvement in performance was achieved despite difficult operating conditions, a testament to the perseverance, commitment and hard work of our employees.'

'We will ensure that Sime Darby will have a strong portfolio of winning businesses,' he said.

Mohd Bakke added the group had completed a review of its portfolio of businesses and was currently finalising its five-year strategic blueprint.

This also saw its unit Sime Darby Engineering Sdn Bhd selling its two fabrication yards for a total of RM695 million, which was above the RM641 million book value of the assets as at 31 March 2011.

Elaborating on the nine-months results, Sime Darby said the the plantation division recorded an 18% increase in operating profit of RM2.0 billion from RM1.705 billion a year ago despite lower fresh fruit bunches (FFB) production and yields caused by prolonged rainfall and changing crop patterns.

The higher operating profit was due to higher average crude palm oil price of RM2,828 a tonne compared with RM2,277 a year ago.

Its industrial division reported an operating profit of RM699 million, which was 30% higher than thwe RM536.7 million, mainly due to'' strong sales in Australia/Pacific Islands and Malaysia, as well as better price realisation across all regions.

Its motors division continued its excellent performance into the third quarter, with operating profit up 90% to RM441 million from RM232.6 million mainly due to the robust demand across all regions, particularly for new models introduced by BMW, Hyundai and Ford.

However, its property division reported a 44% decline to an operating profit of RM210 million from RM374.8 million mainly due to delayed launches of major projects and cost incurred on a development project in the current period which was written off.

Its energy & utilities division posted operating profit of RM220 million versus operating loss of RM1.019 billion a year ago.

Sime Darby said the performance for the current period was mainly due to the write back of RM98.5 million of provision following the signing of the close-out Agreement with Maersk Oil Qatar.

'Earnings from the power sector has remained consistent whilst better returns were reported from the port operations in China. The results of the previous year included a loss of about RM1.3 billion in four projects in the oil & gas sector,' it said.

It cash and cash equivalents as at March 31, 2011 declined to RM4.122 billion from RM4.968 billion as at March 31, 2010.

On the outlook for the remaining period of the current financial year ending June 30, 2011, it said the plantation division was expected to record higher earnings as CPO prices have continued to remain favourable and FFB production has improved as compared to that in January and February 2011.

'Despite the severe Queensland floods during December 2010 to January 2011, the Industrial division is expected to achieve improved results as operations in Australia have recovered swiftly and have been further boosted by the continued strong demand in China and Malaysia. The motors division's performance is expected to continue to benefit from the robust growth in all regions of its operations,' it added.

Sime Darby was positive about its property division, and expected the results to improve in the last quarter due to the new launches in the various townships.

'In the energy & utilities division, the oil & gas sector continued to remain challenging whilst the power and port sectors will continue to generate positive contribution,' it said.

On the healthcare division, it expected it to maintain its steady performance.

#Flash* Ong Leong Huat, Land Mgmt to buy 73% of OSK Property for RM122.4m

KUALA LUMPUR: OSK Property Bhd executive director Ong Leong Huat and Land Management Sdn Bhd have proposed to acquire the outstanding 73.74% stake in the property company in a deal valued at RM122.41 million.

OSK Property said on Friday, May 27 it received a notice of conditional take-over offer from Ong and Land Management to acquire the remaining 137.424 million shares at 87 sen each or RM119.55 million.

They also offered to acquire the remaining 47.812 million warrants which had not been converted into new OSK Property shares at six sen each or a total of RM2.86 million.

Dijaya Corp to launch projects with GDV RM3.5b

KUALA LUMPUR: DIJAYA CORPORATION BHD [] reported net profit of RM18.54 million in the first quarter and announced projects with gross development value (GDV) of RM3.5 billion over the next two years.

It said on Friday, May 27, that its earnings jumped 489% from RM3.15 million a year ago, boosted by higher profit margin contributed by its new property development launches.

The earnings were underpinned by the new launches including Tropicana Grande golf-fronted condominiums and Casa Tropicana final Block E condominiums at Tropicana Golf & Country Resort as well as Pool Villas at Tropicana Indah Resort Homes.

Dijaya added the 3Q earnings included net gain of fair value adjustment of RM5.16 million arising from marketable securities and recognition of RM4 million in liquidated and ascertained damages compensated from a contractor.

Its managing director Datuk Tong Kien Onn said that given the current set of results and the good location of the company's current development, he was optimistic Dijaya would continue to post an improving set of results.

'The Company also has projects under planning to be launched over the next two years worth RM3.5 billion in GDV.

'These projects include W Hotel and Residences Kuala Lumpur, serviced apartments in Tropicana Danga Bay, Tropicana Gardens commercial centre, Tropicana Avenue business and retail centre, Tropicana Bayou mixed development and Tropicana Cheras bungalows, semi-dees and linked houses. With all these projects on the pipeline, the Company is poised for growth.'

KNM skids to RM2.15, lowest since mid-December

KUALA LUMPUR: KNM GROUP BHD [] came under selling pressure in late afternoon on Friday, May 27, with the shares falling to a low of RM2.15, the lowest since Dec 13, 2010.

At 3.38pm, it was down 38 sen to RM2.15 with 73.09 million shares done.

The FBM KLCI rose 6.33 points to 1,547.27. Turnover was 635.06 million shares done valued at RM1.09 billion. The broader market displayed signs of weakening further, with 467 losers to 251 gainers and 299 stocks unchanged.

RHB Research Institute said KNM 1Q earnings were significantly below expectations due to legacy contracts.

'We have downgraded our call on the stock to Underperform based on 12x target PER (down from 15x) on revised FY12 EPS of 19 sen,' it said.

In the 1Q, its earnings fell to RM19.01 million from RM40.33 million a year ago.

OSK Research said KNM's 1QFY11 results were below consensus and its expectations, making up 8% and 9% of the FY11 forecasts respectively.

'Overall, although there was improvement in its overall business activities, these remained slow, resulting in the company making a minimal PBT of only RM6.3 million, which was quite close to the RM6.9 million generated in 4QFY10. Also, its performance this quarter was boosted by the utilisation of tax incentives from Borsig's acquisition amounting to RM12.8 million (4QFY10 of RM14.0 million),' it said.

Dijaya Corp to launch projects with GDV RM3.5b

KUALA LUMPUR: DIJAYA CORPORATION BHD [] reported net profit of RM18.54 million in the first quarter and announced projects with gross development value (GDV) of RM3.5 billion over the next two years.

It said on Friday, May 27, that its earnings jumped 489% from RM3.15 million a year ago, boosted by higher profit margin contributed by its new property development launches.

The earnings were underpinned by the new launches including Tropicana Grande golf-fronted condominiums and Casa Tropicana final Block E condominiums at Tropicana Golf & Country Resort as well as Pool Villas at Tropicana Indah Resort Homes.

Dijaya added the 3Q earnings included net gain of fair value adjustment of RM5.16 million arising from marketable securities and recognition of RM4 million in liquidated and ascertained damages compensated from a contractor.

Its managing director Datuk Tong Kien Onn said that given the current set of results and the good location of the company's current development, he was optimistic Dijaya would continue to post an improving set of results.

'The Company also has projects under planning to be launched over the next two years worth RM3.5 billion in GDV.

'These projects include W Hotel and Residences Kuala Lumpur, serviced apartments in Tropicana Danga Bay, Tropicana Gardens commercial centre, Tropicana Avenue business and retail centre, Tropicana Bayou mixed development and Tropicana Cheras bungalows, semi-dees and linked houses. With all these projects on the pipeline, the Company is poised for growth.'

KNM skids to RM2.15, lowest since mid-December

KUALA LUMPUR: KNM GROUP BHD [] came under selling pressure in late afternoon on Friday, May 27, with the shares falling to a low of RM2.15, the lowest since Dec 13, 2010.

At 3.38pm, it was down 38 sen to RM2.15 with 73.09 million shares done.

The FBM KLCI rose 6.33 points to 1,547.27. Turnover was 635.06 million shares done valued at RM1.09 billion. The broader market displayed signs of weakening further, with 467 losers to 251 gainers and 299 stocks unchanged.

RHB Research Institute said KNM 1Q earnings were significantly below expectations due to legacy contracts.

'We have downgraded our call on the stock to Underperform based on 12x target PER (down from 15x) on revised FY12 EPS of 19 sen,' it said.

In the 1Q, its earnings fell to RM19.01 million from RM40.33 million a year ago.

OSK Research said KNM's 1QFY11 results were below consensus and its expectations, making up 8% and 9% of the FY11 forecasts respectively.

'Overall, although there was improvement in its overall business activities, these remained slow, resulting in the company making a minimal PBT of only RM6.3 million, which was quite close to the RM6.9 million generated in 4QFY10. Also, its performance this quarter was boosted by the utilisation of tax incentives from Borsig's acquisition amounting to RM12.8 million (4QFY10 of RM14.0 million),' it said.

#Flash* Ong Leong Huat, Land Mgmt to buy 73% of OSK Property for RM122.4m

KUALA LUMPUR: OSK Property Bhd executive director Ong Leong Huat and Land Management Sdn Bhd have proposed to acquire the outstanding 73.74% stake in the property company in a deal valued at RM122.41 million.

OSK Property said on Friday, May 27 it received a notice of conditional take-over offer from Ong and Land Management to acquire the remaining 137.424 million shares at 87 sen each or RM119.55 million.

They also offered to acquire the remaining 47.812 million warrants which had not been converted into new OSK Property shares at six sen each or a total of RM2.86 million.

Tenaga powers KLCI higher, KNM slumps

KUALA LUMPUR: Tenaga Nasional helped power the FBM KLCI to a higher close at midday on Friday, May 27 on hopes of revised tariff by government during the National Economic Council meeting scheduled for Friday.

Key regional markets were also higher in the morning session, with Reuters reporting that investors were on a bargain hunting after the recent falls while the euro advanced.

At 12.30pm, the FBM KLCI was up 7.49 points to 1,548.43. Turnover was 447.13 million shares valued at RM692.33 million. There broader market was weaker with losers beating gainers 395 to 246 while 279 stocks were unchanged.

Tenaga up 22c to RM6.52 midday, on hopes of revised tariff by government.'' Among PLANTATION []s, KLK rose 30 sen to RM22.18, PPB 18 sen to RM17.70 and Batu Kawan 18 sen also to RM16.44.

Genting's strong set of earnings saw the shares climb 12 sen to RM11.22 while among the banks, HLFG rose 20 sen to RM11.70 and HL Bank 18 sen to RM12.08.

Among the losers, KNM fell 30 sen to RM2.23, the biggest one day loss in recent months after a poor set of first quarter earnings as investors ignored news of its RM217 million Uzbek contract.

MIDF Research maintained a Buy on KNM with a target price of RM3.20 while Maybank Investment Bank Research was more optimistic, keeping NMN as Buy with an unchanged target price of RM3.20.

Perstima was the top loser, down 47 sen to RM4.70 after its fourth quarter net profit fell sharply to RM6.49 million from RM26.62 million a year ago.

Other decliners were F&N, down 22 sen to RM19.28 in thin trade, Cypark shed 14 sen to RM2.06 and MSC 10 sen to RM5.39.

Sime Engineering sells fabrication yards for RM695m

KUALA LUMPUR: Sime Darby Engineering Sdn Bhd is selling its two fabrication yards for a total of RM695 million, which was above the RM641 million book value of the assets as at 31 March 2011.

It said on Friday, March 27 it was selling its Teluk Ramunia fabrication yard to Petroliam Nasional Bhd for RM296 million cash.

It was also selling its Pasir Gudang fabrication yard to Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) for RM399 million cash.

'The decision to dispose of the assets was made following the completion of the group's portfolio review exercise,' it said.

#Flash* Sime Darby chalks up RM820m net profit in 3Q

KUALA LUMPUR: SIME DARBY BHD [] posted net profit of RM820.12 million in the third quarter ended March 31, 2011 compared with net loss of RM308.63 million a year ago.

The conglomerate announced on Friday, May 27 that revenue was RM10.59 billion compared with RM7.57 billion. Earnings per share were 13.66 sen versus loss per share of 5.14 sen.

For the nine-month period, its net profit was RM2.35 billion compared with RM804.20 million a year ago.Revenue was RM29.66 million compared with RM23.74 billion.

Bank Muamalat aims for 15% to 20% earnings increase

ALOR SETAR: Bank Muamalat Malaysia Berhad is aiming for an increase in profit of between 15% and 20% for this year following an encouraging performance to date by the bank.

Its chief executive officer Datuk Mohd Redza Shah Abdul Wahid said for the 15-months period for the financial year ending March 31, 2010,the bank had posted a profit before tax of RM143 million.

"For this year, for the nine-month period alone, the bank has recorded a profit before tax of RM173 million," he added.

He said the market focus of the bank was still on retail customers, in particular, personal financing, housing and car loans, although the bank introduced new products from time to time.

"The retail business still records the best growth.Our performance is good with the ability to generate even higher profits. Even with more Islamic banks, the market is still growing.

"Our non-performing loans are at a lower rate, that is two per cent," he told Bernama and RTM in an interview on Thursday night, May 26.

He said Bank Muamalat's products had succeeded in attracting a lot of non-Malay customers, particularly among corporate clients, who felt Islamic financing was more competitive and compatible to them.

Bank Muamalat now has 55 branches throughout the country and concentrated in Kuala Lumpur and Selangor but the other states had at least two.

"The latest and 56th branch will be established in Jertih, Terengganu within the next two months," Mohd Redza said.

On the proposal to merge Bank Muamalat and Bank Islam Malaysia Berhad (BIMB), he said it was good in an effort to create a mega Islamic bank, but hard to undertake in the near term.

"There was a proposal from shareholders of both banks but for the moment, there are no plans to proceed with the merger to create a bigger and more competitive entity.

"Bank Negara Malaysia may want to see a large Islamic bank to issue a mega licence in the near future. To secure the mega licence, the Islamic Bank would need a paid-up capital of US$1 billion," he added. - Bernama

Boustead Holdings 1Q net profit up 24.3% to RM112.2m

KUALA LUMPUR: BOUSTEAD HOLDINGS BHD [] earnings rose 24.3% to RM112.20 million in the first quarter ended March 31, 2011 from RM90.20 million a year ago, boosted by the PLANTATION []s division.

It said on Friday, May 27 revenue rose about 2% to RM1.58 billion from RM1.55 billion while earnings per share were 11.93 sen compared with 9.75 sen. It declared dividend of eight sen per share. Profit before tax was 25% higher at RM168.2 million than the RM134.6 million a year ago.

On the revenue performance, it said plantation revenue increased by 5%, on stronger palm product prices which more than offset the lower fresh fruit bunches (FFB) crop.

The plantation division accounted for pre-tax profit of RM99 million (2010: RM62.3 million). During the period, the division achieved an average palm oil price of RM3,541 per tonne, up RM1,042 or 42% against last year's average of RM2,499 The cumulative FFB crop totalling 253,586 tonnes was 17% lower due to the prolonged wet weather.

As for its heavy industries division, it contributed a pre-tax profit of RM7.2 million, as compared with last year's profit of RM23.4 million due to lower progress billings.

The property division's pre-tax profit of RM12.2 million was 94% higher than last year mainly on improved contribution from property development in tandem with the progress of CONSTRUCTION [].

The new pharmaceutical division was in the black with pre-tax profit of RM9.1 million versus a loss of RM1.9 million a year ago, mainly due to higher sales revenue while margins have also improved.

The finance and investment division posted a cumulative pre-tax profit of RM11.9 million, as compared with the RM19.7 million a year ago, largely on higher interest expense. The manufacturing and trading division's pre-tax profit for the current quarter was higher at RM28.8 million (2010: RM24.8 million) as the division's main contributor BH Petrol had achieved a higher sales volume and stockholding gains.

KNM falls on weak 1Q earnings

KUALA LUMPUR: Shares of KNM GROUP BHD [] fell in early trade on Friday, May 27 after its first quarter earnings came in below expectations.

At 9.07am, it was down 20 sen to RM2.33 with 1.90 million shares done.

The FBM KLCI rose 6.13 points to 1,547.07. Turnover was 31.24 million shares valued at RM31.13 million. There were 99 gainers, 72 losers and 99 stocks unchanged.

ECM Libra Research said KNM's 1QFY11 net profit came in significantly below house and consensus expectations. Profit of RM19.4m made up less than 10% of full year estimates.

'The reason for the poor showing is that the group is still going through their older orders, which were low margin orders secured over FY10 (excluding the turnkey projects). Management had earlier guided on softer results in 1H11 hence this comes as no surprise.

'On a positive note, revenue growth indicates increasing utilisation which we gauge should be at roughly 70% from 60% in FY10,' it said.

Genting advances, boost from strong earnings

KUALA LUMPUR: Shares of GENTING BHD [] advanced in early trade on Friday, May 27 after it reported a strong set of earnings in the quarter ended March 31, 2011.

At 9.14am, it was up 14 sen to RM11.24 with 173,600 shares done.

The FBM KLCI was up 5.26 points to 1,546.20. Turnover was 52 million shares valued at RM52.31 million. There were 113 gainers, 94 losers and 127 stocks unchanged.

Genting Bhd's net profit surged 254% to RM824.17 million in the first quarter ended March 31 from RM232.43 million a year ago when the net profit then was affected by net impairment losses.

Revenue rose 57.2% to RM4.89 billion from RM3.11 billion while earnings per share were 22.25 sen compared with 6.29 sen. The group's profit before tax in 1QFY11 was RM1.9 billion compared with RM200.0 million in 1QFY10.

CIMB Equities Research said Genting Bhd's 1Q11 core net profit accounted for 27% of its full-year forecast and 29% of consensus numbers.

'We regard it as being largely in line with our expectations as earnings should normalise after the seasonally strong 1Q. However, the 1Q results beat consensus estimates, courtesy of Resorts World Sentosa's (RWS) stronger-than-expected win rate.

'We are keeping our FY11-13 core EPS forecasts and SOP-based target price of RM15.40. The stock remains an OUTPERFORM and our top pick in our gaming universe,' it said.

CIMB Research maintains Neutral on Bintulu Port

KUALA LUMPUR: CIMB Equities Research said Bintulu Port's 1Q11 core net profit came in within expectations, at 26% of its full-year estimate and 27% of consensus.

It said on Friday, May 27 that the interim single-tier dividend of 7.5 sen declared for the quarter was expected.

'In the absence of earnings surprises, we are retaining our FY11-13 earnings projections and DCF-based target price of RM7.00. We maintain our NEUTRAL rating as Bintulu Port's lack of earnings catalysts should be compensated by its high gross dividend yields of 8%.

'However, we prefer Malaysia Airports for exposure to the transport infrastructure sector,' it said.

CIMB Research has Sell on Seal Inc

KUALA LUMPUR: CIMB Equities Research has a technical Sell on Seal Incorporated at 51.5 sen at which it is trading at a price-to-book value of 0.9 times.

It said on Friday, May 27 that Seal violated the flag support early this week. The pullback also dragged prices below its 50-day SMA.

'We think that the stock is due for deeper correction and the 200-day SMA is also a magnet for prices,' it said.

CIMB Research said the MACD has slipped into the red while RSI is slowly losing pace. The deteriorating technical landscape suggests that the trend is now down.

'Use any rebound towards the RM0.525-0.535 levels to sell into strength. On the downside, support is seen at RM0.495, RM0.475 and RM0.445. Always put a buy stop at RM0.565, just in case,' it said.

HDBSVR: Tenaga in focus

KUALA LUMPUR: Hwang DBS Vickers Research said investors would get to watch a sequel to the performance by TENAGA NASIONAL BHD [] as the government may announce a possible increase in electricity rates.

It said on Friday, May 27 that the National Economic Council would meet and decide if there should be a tariff hike.

HDBSVR said this comes after the stock had fluctuated up and down earlier this week in reaction to the on-off news of an impending tariff hike.

Based on Thursday's index level, a 5% share price swing would translate to an approximate 4-point change in the benchmark FBM KLCI.

Meanwhile, on the chart, the bellwether could try to build on Thursday's gain of 7.4-point, possibly rising towards the immediate resistance line of 1,550 ahead.

OSK Research: Tong Herr immediate support at RM2.37

KUALA LUMPUR: OSK Research said Tong Herr's share price has been consolidating after experiencing the sharp run-up in November and December last year.

It said on Friday, May 27 the stock has also created a 'Descending Triangle' during its consolidation. With this triangle formation, we have an indication as to when the stock would be resuming its uptrend which started from the November low.

'We would say the current consolidation phase is still healthy as the stock is still holding on to about 50% of the gains picked up over the last two months of last year,' it said.

OSK Research said Tong Herr is expected to continue consolidating within the 'Descending Triangle' until the stock cracks above it. Immediate resistance is situated at the RM2.63 level, followed by the RM2.77 level. To the downside, immediate support lies at the RM2.37 level while next support is at RM2.30.

OSK Research upgrades FV for PetChem

KUALA LUMPUR: OSK Research has upgraded its fair value for Petronas Chemicals Group Bhd to RM9.28 (previously RM7.26) based on the existing PER of 18x FY12 EPS following its FY12 earnings upgrade.

'We like the company's strong backing from Petronas Group, especially in keeping its feedstock prices low, as well as attractive dividend payout ratio of 50%, which is the highest among its closest peers,' it said on Friday, May 27.

OSK Research said PetChem's FY11 results were above expectations owing to the higher sales and better prices for its petrochemical products.

Manipulation: Investor sues oil traders

NEW YORK: Two oil traders and their trading firms, already facing regulatory charges of alleged manipulation in the market for crude oil futures, were sued Thursday, May 26 by a derivatives trader who claims he was harmed by their activities.

The lawsuit comes two days after the Commodity Futures Trading Commission sued the two traders in its biggest ever oil market manipulation case. The CFTC case against traders James Dyer of Oklahoma's Parnon Energy and Nicholas Wildgoose of Europe-based Arcadia Energy marks an aggressive push by regulators seeking to police the commodities markets.

The derivatives trader, Stephen Ardizzone, filed his own case against the defendants, seeking class-action status on behalf of other investors he claims were also harmed by the alleged market manipulation.

The lawsuit says that Dyer, Wildgoose and their trading firms manipulated derivative financial contract prices for West Texas Intermediate crude oil traded on the New York Mercantile Exchange from late 2007 to mid-2008.

"Defendants aggressively exploited their massive physical WTI position to cause artificial prices that unlawfully created profits from their trading positions," the lawsuit said.

The case was filed in U.S. District Court in Manhattan, the same court where the CFTC brought its case on Tuesday.

The defendants are familiar names in the U.S. oil market. Dyer and Wildgoose were both traders at BP Plc (BP.L) a decade ago when the British oil company's practices came under scrutiny because of its ownership of oil tanks at the delivery point for U.S. oil futures in Oklahoma.

BP was hit with a record $2.5 million fine by the New York Mercantile Exchange in 2003 for alleged U.S. oil market manipulation, which it paid without admitting any wrongdoing. Neither Dyer nor Wildgoose was accused of misconduct in that case.

In Tuesday's case, the CFTC alleged that Dyer and Wildgoose amassed and sold off of a substantial position in physical crude oil to manipulate futures prices.

Colin Hurley, the chief financial officer of Arcadia, which is affiliated with Parnon, said in a statement Wednesday it plans to fight those charges.

London-based Arcadia, a major global oil trader, and Parnon are both owned by Norwegian tycoon John Fredriksen, known as "Big Wolf" in the shipping industry.

Dyer lives in Brisbane, Australia, while Nicholas Wildgoose lives in Rancho Santa Fe, California, according to Thursday's lawsuit brought by Ardizzone, of Staten Island, New York.

Ardizzone makes claims for manipulation in violation of the Commodity Exchange Act and monopolization in violation of the Sherman Act.

The lawsuit does not specify an amount of damages sought, but Kellie Lerner, an attorney for Ardizzone, said that the estimated damages are in excess of the $50 million that the CFTC says the defendants illegally pocketed from their scheme.

Lerner also said that the potential group of traders harmed by the defendants' actions was likely to be in the thousands.

Ardizzone's case is not yet a class-action. That designation can only be made by a judge, who would decide whether a group of plaintiffs can pursue a case collectively.

The case is Stephen E. Ardizzone v. Parnon Inc et al, U.S. District Court for the Southern District of New York, No. 11-3600. - Reuters

Wall Street gets earnings lift

NEW YORK: U.S. stocks rose for a second day on Thursday, May 26 in a choppy session, with TECHNOLOGY [] and consumer discretionary stocks leading the way after upbeat earnings.

Sellers crowded around the S&P 500's 50-day moving average for a third day. The level, now just above 1,328, is gaining strength as technical resistance and could prevent any rebound in the benchmark.

The market's ability to sustain an advance ebbed and flowed with developments in the foreign-exchange market and fears over Europe's sovereign debt crisis.

"Currency strength right now is the major mover of equity and commodity markets," said Michael Yoshikami, president and chief investment strategist at YCMNet Advisors in Walnut Creek, California.

"No market sector can move away from that," he said.

The broad S&P 500 was treading water throughout the morning after economic data failed to meet expectations, but once again found support once the euro stabilized against the U.S. dollar.

The 20-day correlation between the S&P 500 and the dollar index .DXY was at -0.8. It hit -0.95 earlier this month, with a perfect inverse correlation scoring -1.

The Nasdaq outperformed other major indexes after NetApp Inc's (NTAP.O) stock was buoyed by strong results. The tech-heavy index also got a boost from shares of Microsoft Corp (MSFT.O), up 2 percent at $24.67 after a prominent investor said its chief executive should resign. The company's board stood by its CEO.

The Dow Jones industrial average .DJI edged up 8.10 points, or 0.07 percent, to 12,402.76. The Standard & Poor's 500 Index .SPX gained 5.22 points, or 0.40 percent, to 1,325.69. The Nasdaq Composite Index .IXIC rose 21.54 points, or 0.78 percent, to 2,782.92.

TIFFANY TASTES, UNCERTAIN TIMES

The best-performing S&P sector on Thursday was consumer discretionary, helped by Tiffany & Co (TIF.N), up 8.6 percent at $76.04 after the luxury retailer reported its first-quarter results and raised its outlook. Luxury handbag and accessories company Coach Inc (COH.N) rose 5 percent to $63.68.

The S&P's consumer discretionary sector index .GSPD rose 0.8 percent after dropping 2.4 percent over the previous four days.

Market participants say the uncertainty about the economy makes it hard to invest medium or long term, leaving stocks vulnerable to short-term volatility.

"People are timing themselves and rotating in and out of various sectors," said Yu-Dee Chang, principal and chief trader of ACE Investment Strategists in McLean, Virginia. "Everybody realizes that's the game everybody else is playing, so in order to compete or keep up, that's what you've got to do."

In a sign of rising concern about the economic outlook, Goldman Sachs cut its year-end target for the S&P 500 by 3.33 percent, to 1,450 from 1,500. The lower target represents an upside of almost 10 percent from current levels.

The decision by Goldman Sachs to cut its S&P 500 target, one of the highest on the Street, comes after UBS and Citigroup raised their earnings forecast for S&P 500 companies last week, but kept their targets unchanged. That indicates investors are starting to put a greater risk premium on the U.S. stock market.

Applications for unemployment insurance unexpectedly rose in the latest week and stayed at elevated levels, while U.S. gross domestic product rose at an annual rate of 1.8 percent in the first quarter, unchanged from the previous estimate and below analysts' expectations for more robust growth.

The S&P 500 has fallen almost 3 percent this month due to a string of weaker-than-expected economic indicators.

Helping the Nasdaq, NetApp Inc (NTAP.O) posted better-than-expected results as more cloud computing drove demand for its data storage products. Its shares rose 6.9 percent to $55.31.

Hedge fund manager David Einhorn called for Steve Ballmer, the chief executive of Microsoft Corp (MSFT.O), to step down. Microsoft's board stood behind Ballmer. Shares of the Nasdaq and Dow component rose 2 percent to $24.67. - Reuters

CIMB Research maintains Trading Buy on Ann Joo

KUALA LUMPUR: CIMB Equities Research said although ANN JOO RESOURCES BHD []'s annualised 1Q11 net profit came in at 109% of its forecast, it was largely in line.

The research house said on Friday, May 27 that it expected the 2H to be slower due to start-up costs when Ann Joo's blast furnace is fully operational.

'But at 89.6% of consensus estimates, it will disappoint the market. As expected, no dividends were declared. Billet-scrap spreads have edging up gradually from US$160/mt in Jan 2011 to US$186/mt in May, which bodes well for 2Q.

'We maintain our estimates and RM3.74 target price, still based on 13.05x CY12 P/E, a 10% discount to our target market P/E of 14.5x. Ann Joo remains a TRADING BUY and could be catalysed by higher selling prices and improved local demand due to more CONSTRUCTION [] starts. CY11 gross yields are now 6.0%, the highest in the building materials sector,' CIMB Research said.

KNM bags RM217m Uzbek contract

KUALA LUMPUR: KNM GROUP BHD [] has secured a US$71.63 million (RM217.76 million) contract to build a supply booster compressor station in Uzbekistan.

It said on Thursday, May 26 the station would be at the Khauzak site in Uzbekistan.

It was awarded the contract by Lukoil Uzbekistan Operating Company and it would run for about 24 months.

MRCB earnings in 1Q jumps 120% to RM21.6m

KUALA LUMPUR: MALAYSIAN RESOURCES CORP []oration Bhd (MRCB) posted a 120% increase in its earnings to RM21.60 million in the first quarter ended March 31, from RM9.84 million a year ago, boosted by its on-going property development projects.

It said on Thursday, May 26 the group recorded revenue of RM221.49 million compared to RM189.67 million while earnings per share were 1.56 sen versus 0.93 sen.

'Higher revenue recorded in the current quarter was contributed by the group's revenue recognition of ongoing property development projects at Kuala Lumpur Sentral and the progressive works of the CONSTRUCTION [] and engineering activities,' it said.

On the outlook, it said over the next two years would see the progressive completion of the on-going construction projects and property development within KL Sentral which works had commenced since 2009.

'Two major developments planned on strata sales at Kuala Lumpur Sentral comprising Q Sentral office block at Lot B and condominium residences at Lot D with combined gross development value in excess of RM2 billion will commence construction works in 2011,' it said.

Genting Bhd 1Q net profit surges 254% to RM824.17m from yr ago

KUALA LUMPUR: GENTING BHD []'s net profit surged 254% to RM824.17 million in the first quarter ended March 31 from RM232.43 million a year ago when the net profit then was affected by net impairment losses.

It said on Thursday, May 26 that revenue rose 57.2% to RM4.89 billion from RM3.11 billion while earnings per share were 22.25 sen compared with 6.29 sen.

'The group's profit before tax in 1QFY11 was RM1.9 billion compared with RM200.0 million in 1QFY10,' it said.

Genting Bhd said in the 1QFY10, the group's profit before tax included some significant one-off items, namely a net impairment loss of RM1.303 billion and a net gain on dilution of RM436.3 million from the dilution of the company's shareholding in Genting Singapore PLC when convertible bonds that were issued by Genting Singapore were fully converted into new ordinary shares of Genting Singapore.

'The adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) was RM2.4 billion in 1QFY11 versus RM1.4 billion in 1QFY10, an increase of 74%,' it said.

It said the leisure and hospitality division remains the key revenue and earnings contributor to the group, with a significant increase in contribution in 1QFY11 from Resorts World Sentosa in Singapore.

RWS posted strong revenue growth and experienced good win percentage and gaming volume in 1QFY11, as well as saw steady growth in Universal Studios Singapore and the hotels.

Southeast Asian stocks climb on commodities recovery

BANGKOK: Southeast Asian stock markets climbed higher on Thursday, May 26 as a recovery in commodity markets lured buyers back to resource-related stocks and bargain-hunters picked up blue chips.

Trading volume remained weak, however, suggesting a lack of conviction. Market turnover in Thailand, Indonesia and Singapore fell below the 30-day average.

Thailand's benchmark SET index , where energy stocks have a weighting of more than 20 percent, gained almost 1 percent, hitting its highest in a week at one point. Malaysia ended up 0.5 percent.

Stocks in Indonesia and the Philippines both finished up almost 1 percent. Vietnam shot up 3 percent, after a 20 percent plunge in the past two weeks. Singapore's'' main index was flat.

Thailand rose despite tiny outflows of $3 million, adding to a combined $283 million in the previous four sessions.

"The positive story was mainly from commodities markets. But I still think the gains will quickly be lost if the threats from euro zone debt are not over," said Warut Siwasariyanon, head of research at broker Finansia Syrus Securities.

Flows in other markets were mixed. Indonesia reported outflows for a fourth session and the Philippines lost $7 million after two days of inflows, according to Thomson Reuters data.

The MSCI index for Southeast Asia was up 1.1 percent by 0947 GMT, while the MSCI index of Asia Pacific stocks outside Japan was up 1.6 percent , the biggest gain since April 20, after closing at a two-month low on Wednesday.

The risks surrounding the euro have not eased much, with Greece fighting to avoid a debt restructuring that could have a huge ripple effect across other high-risk European countries struggling with gaping fiscal deficits.

Palm oil shares were among outperformers as Malaysian palm oil futures hit a seven-week high. Singapore-listed Olam International surged 2.5 percent and Astra Agro Lestari, Indonesia's largest listed PLANTATION [] firm, climbed 1.3 percent.

''

Petronas Chemicals 4Q net profit up 5.7% to RM932m, proposes RM1.52b dividends

KUALA LUMPUR: Petronas Chemicals Group Bhd reported net profit of RM932 million in the fourth quarter ended March 31, 2011, an increase of 5.7% from the RM881 million a year ago.

It said on Thursday, May 26 that revenue rose 8.9% to RM4.353 billion from RM3.996 billion while earnings per share were 12 sen. It proposed dividend of 19 sen per share totaling RM1.52 billion.

'The increase was achieved on the back of higher realised prices across most petrochemical products. Overall, the group's production volume was lower due to maintenance activities during the current quarter,' it said.

Petronas Chemicals said the group's operating profit declined slightly by RM96 million due principally to costs incurred for maintenance activities in the current quarter. The impact of higher cost was however offset by lower tax expense and higher share of profits from associates and jointly controlled entities.

For the financial year ended March 31, its net profit increased by 36.1% to RM2.994 billion from RM2.199 billion. Revenue rose 19.5% to RM14.586 billion from RM12.203 billion'' supported by higher prices and volume addition contributed by its acquisitions, Optimal Chemicals (Malaysia) Sdn Bhd and Optimal Glycols (Malaysia) Sdn. Bhd.

'The group achieved operating profit of RM3.7 billion, an increase of RM405 million (12%) from previous year.

'The group's results were further supported by the strong performance of BASF Petronas Chemicals Sdn. Bhd., which primarily contributed towards higher share of profits from associate and jointly controlled entities by RM533 million,' it said.

The group's EBITDA was at RM4.677 billion, up 23% or RM875 million from a year ago.

DRB-Hicom's 4Q net profit at RM72.39m, FY RM472m

KUALA LUMPUR: DRB-HICOM BHD []'s earnings were 72% lower at RM72.39 million from RM259.36 million a year ago due to the absence of exceptional gains of RM211.43 million from the disposal of estates.

It said on Thursday, May 26 revenue rose 25.1% to RM1.99 billion from RM1.59 billion a year ago. Earnings per share were 3.75 sen versus 13.41 sen. It proposed a final dividend of four sen per share.

For the FY ended March 31, 2011, its net profit was flat at RM472.46 million compared with RM472.298 million in FY10.

'The group registered a pre-tax profit of RM701.52 million compared to RM657.89 million in the previous financial year, an increase of 6.6%.'' Included in the current and previous financial years are one-off exceptional items i.e. negative goodwill and gain on disposal of estates respectively.'' If these items are excluded, the profits from operational activities have increased by 41% to RM630.31 million from RM446.46 million,' it said.

DRB-Hicom achieved a 7.8% growth in revenue to RM6.80 billion compared to RM6.31 billion primarily driven by better performance achieved by its automotive and services sectors, which contributed 59% and 39% respectively to its total revenue.

'The strong group operational performance attributed significantly to a higher profit in FY2011. Operational profit now accounts for 90% of the reported total profit of RM701.5 million compared to 68% a year ago,' it said.

''

#Flash* YTL Corp 9- month earnings at RM755.1m on RM13.14b revenue

KUALA LUMPUR: YTL CORPORATION BHD []'s net profit increased marginally to RM755.1 million (US$249.2 million) in the nine months ended March 31, from RM754.3 million (US$249 million) in the previous corresponding period.

It said on Thursday, May 26 that pretax profit rose 0.9% to RM1.731 billion for the nine months compared with RM1.716 billion a year ago. Revenue rose 11.5% to RM13.146 billion compared to RM11.786 billion.

YTL group managing director Tan Sri Francis Yeoh Sock Ping said the increase continues to be contributed substantially by the group's overseas operations, notably, PowerSeraya, a power generation and multi-utility provider which has a 25% market share of Singapore's licensed power generation capacity, and Wessex Water, a water and sewerage company in the UK.

'The group's cement division and overseas property development projects also contributed to the better performance during the quarter under review,' he said.

YTL POWER INTERNATIONAL BHD []'s revenue grew 7.3% for the nine months to RM10.397 billion'' and profit before taxation increased by 6.8% to RM1.138 billion.

Net profit attributable to shareholders grew 10.8% to RM868.0 million from RM783.1 million. The growth in revenue and profit was due mainly to better performance by the group's foreign operations.

Tony Fernandes views SIA budget carrier plan as copycat

KUALA LUMPUR: AIRASIA BHD [] chief executive officer''Datuk Seri Tony Fernandes''has viewed Singapore Airlines' proposed budget carrier as a copycat, according to the Singapore-based AsiaOne.com report on Thursday, May 26

It said Fernandes had posted on his personal Twitter account on Wednesday that: "AirAsia staff should be proud that we have been copied again. Will be the same result like tiger."

While SIA has yet to reveal a name for its budget offshoot, Fernandes quipped on Twitter: "Wonder if singapore airlines will call it singapore X."

Reuters reported on Wednesday that SIA entered the long haul budget carrier market by setting up a new subsidiary, which is expected to compete with AirAsia X.

The premium carrier faces competition from other players in Asia and the Middle East that cater to high-end passengers as well as fast-expanding budget airlines in Asia.

The move by Singapore Airlines' new chief executive officer Goh Choon Phong marks a major reversal from his predecessor's strategy.

Goh's predecessor Chew Choon Seng had questioned whether the budget carrier strategy could be successfully applied to long-haul routes, noting that passengers on 13-hour flights would expect to be served meals and enjoy some degree of comfort and entertainment. ' AsiaOne, Reuters

Sony forecasts $975 mln net profit for current year

TOKYO: Sony Corp forecast a net profit of 80 billion yen ($975 million) on Thursday, May 26 for the year that started on April 1, after net losses ballooned to 260 billion yen last business year on a tax credit write-off.

That compares with analysts' consensus of 105 billion yen, according to Thomson Reuters StarMine SmartEstimates, which places more weight on recent forecasts by top-rated analysts.

The electronics and entertainment company also said it expects to make an operating profit of 200 billion yen this business year, level with last year and in line with guidance given earlier in the week.

On Monday, Sony revised its net profit estimate for the year ended March 31, saying the impact of Japan's earthquake had clouded near-term prospects in the local market, forcing it to take a charge on tax credits.

Sony is reeling from one of the biggest ever Internet security breaches, which forced it to close its PlayStation videogames network for nearly a month after data on tens of millions of user accounts was leaked.

Hacking attacks exposed more than 100 million accounts on its online gaming network to possible data theft. On Tuesday Sony said additional websites in four countries had also been hacked. Among the break-ins, personal information for 8,500 people was leaked from its Greek Sony Music Entertainment website.

Sony said on Monday it expects the hacking and damage caused by the earthquake to drag down operating profit by 164 billion yen in the current financial year.

The company also predicted that it will sell 15 million of its flagship PlayStation 3 game consoles in the current business year compared with 14.3 million in the year just ended. Sony reiterated its plan to release a next generation portable games device by the end of 2011.

It forecast liquid crystal TV sales of 27 million units compared with 22.4 million sets in the previous term, but declined to say whether it expected the unit to be profitable.

Shares in Sony closed up 0.1 percent at 2,238 yen on Thursday ahead of the announcement, compared with a 1.5 percent gain in the benchmark Nikkei average. ($1 = 82.000 Japanese Yen) - Reuters

CCM Duopharma to focus on biotech, invest 2% of revenue in R&D

KUALA LUMPUR: CCM DUOPHARMA BIOTECH BHD [] will focus on bioTECHNOLOGY [] and invest about 2% of its 2010 revenue in research and development to explore opportunities and leverage on this emerging lucrative niche market.

Its chairman Tan Sri Dr Abu Bakar Suleiman said on Thursday, May 26 this would include the manufacturing and commercialisation of biosimillars.

(Biosimilars or follow-on biologics are subsequent versions of innovator biopharmaceutical products made by a different sponsor following patent and exclusivity expiry on the innovator product).

He said the company also aims to continue to enhance its generic pharmaceuticals portfolio and capitalise on the promising growth opportunities arising from the strong demand for generics which is currently valued at RM1 billion as well as to venture further into the regional markets.

'Demand for high quality and affordable pharmaceuticals and healthcare products is growing at a healthy rate and CCMD is poised to take full advantage of this opportunity,' he added.

Dr Abu Bakar also said CCMD was leveraging on Malaysia's position as a global halal industry hub with its range of halal products which meets stringent halal manufacturing requirements.

He added that its products had attracted encouraging interest from both Muslim and non-Muslim consumers.

Tenaga, Genting power KLCI higher

KUALA LUMPUR: Key Asian markets rose in the morning session on Thursday, May 26, as investors decided to relook at riskier assets including equities, with Japan's Nikkei 225 taking the lead.

At midday, the FBM KLCI was up 8.99 points or 0.59% to 1,542.56, powered by gains in Tenaga and Genting. Turnover was 399.63 million shares valued at RM576.85 million. There were 345 gainers, 251 losers and 303 stocks unchanged.

Crude palm oil third-month futures rose RM16 to RM3,432 per tonne while US light crude oil added five cents to US$101.37 and Brent at US$114.93.

The ringgit was firmer against the US dollar at 3.0436 when compared to the previous close of 3.0640. The US dollar was quoted at 75.632 against a basket of currencies.

Among key regional markets, Japan's Nikkei 225 rose 1.38% to 9,552.49, South Korea's Kospi added 1.84% to 2,073.24 and Shanghai's Composite Index 0.53% higher at 2,756.26. Singapore's Straits Times Index fell 0.12% to 3,115.01.

At Bursa Malaysia, Tenaga regained its footing despite'' the Cabinet did not reach any decision on the electricity tariff hike and other issues relating to subsidy cuts on Wednesday.

Instead, these issued will be brought to the National Economic Council (NEC) meeting for a final decision. The next NEC meeting is scheduled this Friday.

Tenaga rose 18 sen to RM6.34 with 2.40 million shares done. This helped power the KLCIup by 2.3 points.OSK Research downgraded Tenaga to a Neutral even as its fair value of gives more than 10% upside.

Genting rose 14 sen to RM11.08, Petronas Dagangan 92 sen to RM16.58, , F&N 28 sen to RM19.64 and Panasonic Malaysia 18 sen to RM23.68.

Among PLANTATION []s, the firmer CPO prices and strong earnings in the January to March period saw KL Kepong adding 40 sen to RM21.90, United Plantations 30 sen to RM18.80, Batu Kawan 26 sen to RM16.48 and PPB 14 sen to RM17.54.

Among the most active stocks, Jotech rose 0.5 sen to 15 sen and its warrants 0.5 sen to eight sen while L&G added 0.5 sen also to 45.5 sen. Telekom Malaysia fell one sen to RM3.89.

Among the decliners were BLD Plantations, down 18 sen to RM5.35 as investors took profit, MSC 16 sen lower at RM5.43 while MFlour ended its winning streak which was sparked by its strong financial results and dividends, shed 15 sen to RM6.81.

Ann Joo Resources plans regional acquisition

KUALA LUMPUR: ANN JOO RESOURCES BHD [] is looking to expand its operations regionally which could involve either a merger or acquisition (M&A) of a smaller steel rolling mill.

Its group managing director Datuk Lim Hong Thye said on Thursday, May 26 the companu was looking to gain a foothold overseas and there was a plan to have a M&A with a smaller stell mill with capacity if 100 million to 300 million tonnes a year.

He said the mill would probably in Southeast Asia but the M&A would be over a 10-year period.

Lembaga Tabung Haji ceases to be Brem substantial shareholder

KUALA LUMPUR: Lembaga Tabung Haji has ceased to be a substantial shareholder of BREM HOLDINGS BHD [] after disposing of 1.177 million shares from May 12 to 16.

A filing with Bursa Malaysia showed the pilgrimage fund disposed of 500,000 shares each on May 12 and 13 and 177,000 shares on May 16.

After the recent disposals in the property developer, Tabung Haji's shareholding was reduced to 4.67% or 6.519 million shares.

MRCB to grow recurring income to between 20% and 25%

KUALA LUMPUR: MALAYSIAN RESOURCES CORP [] Bhd (MRCB) plans to increase its recurring income to between 20% and 30% in the next two to three years.

A company official said on Thursday, May 26 that the growth in recurring income would be underpinned by its highway project in Johor and also the property projects in KL Sentral.

MRCB's recurring income was about 8% in the financial year ended Dec 31, 2010.

UMW inches up on firmer earnings but caution ahead on O&G

KUALA LUMPUR: Shares of UMW HOLDINGS BHD [] rose to a high of RM7.20 in the morning session on Thursday, May 26 after reporting a set of firmer financial results but analysts were cautious about the outlook for its oil and gas (O&G) business.

At 11.08am, it was up three sen to RM7.18. There were 626,100 shares done at prices ranging from RM7.17 to RM7.20.

OSK Research said UMW's 1Q revenue and net profit of RM3.2 billion and RM151.8 million respectively were in line with its and consensus.

'While the group saw revenue growth across all segments and a margin boost from the strengthening RM, the profitability of its O&G division continues to disappoint.

'Although production is expected to normalise by end of this month, and earlier than expected too, we are cautious of making any substantial revision in earnings owing to the potential of a power shortage during the summer in Japan slowing down production. We maintain our SELL call on UMW with our FV unchanged at RM6.41,' it said.

Land & General founder Wan Azmi ceases to be substantial shareholder

KUALA LUMPUR: Land & General Bhd (L&G) founder Tan Sri Wan Azmi Wan Hamzah has ceased to be a substantial of the property group after he disposed of 3.81 million shares in May and reduced his total shareholding to 4.37%.

Filings to Bursa Malaysia showed he disposed of the shares in the open market from May 18 to 25, when the share price was trading between 45 sen and 46.4 sen.

He sold 415,000 shares on May 18 and 222,300 units the next day. He then disposed of 2.14 million shares on May 20 and 933,083 units on May 24.

He ceased to be a substantial shareholder when he sold 100,000 shares on May 25. His shareholding was reduced to 26.19 million shares or 4.37%.

Hedge fund star calls for Microsoft CEO to go

NEW YORK/SEATTLE: Influential hedge fund manager David Einhorn has called for Microsoft Corp Chief Executive Steve Ballmer to step down, saying the world's largest software company's leader is stuck in the past, Reuters reported on Wednesday, May 25.

"His continued presence is the biggest overhang on Microsoft's stock," Einhorn said in reference to Ballmer.

The comments by outspoken Einhorn, who made his name warning about Lehman Brothers' financial health before the investment bank's collapse, are the most pointed yet from a high-profile investor against Microsoft's leadership.

Microsoft shares, which have been static for over a decade, gained 0.87 percent in after-hours trading after Einhorn's comments, the most of any Dow Jones industrial average component.

The software giant, which was the largest U.S. company by market value in the late 1990s, has since been overtaken by Apple Inc and IBM in market value, and is no longer seen as a dominating force in TECHNOLOGY [] after a failure to capitalize on new Internet and mobile computing markets.

The stock is down 6 percent in the last two weeks alone after Microsoft agreed to pay $8.5 billion for Internet phone service Skype, a move which mystified many investors.

Speaking at the annual Ira Sohn Investment Research Conference in New York on Wednesday, Einhorn said it was time for Ballmer -- who succeeded co-founder Bill Gates in 2000 -- to step aside and "give someone else a chance."

Einhorn's comments echo what some investors have said for some years in private.

A Microsoft spokesman declined comment on Einhorn's remarks.

RECENT BUYER

Einhorn's Greenlight Capital hedge fund has been a recent buyer of Microsoft stock, which at under 10 times expected earnings is regarded by many as undervalued.

Greenlight held about 9 million shares in Microsoft, or 0.11 percent of the company's outstanding shares, at the end of the first quarter, according to Thomson Reuters data.

Einhorn also said it was time for Microsoft to consider strategic alternatives for its money-losing online business, which has so far failed to win share from online search leader Google Inc.

The online services unit, which runs the Bing search engine and MSN web portal, had a loss of $726 million last quarter and has now lost $7 billion in four years.

Bing has made some progress, raising its U.S. Internet search market share to 14 percent from 8 percent in the two years since launch, but has not taken any share from Google, which has held on to its 65 percent share, according to research firm comScore.

Einhorn declined to comment further.

OLD FOES APPLE, IBM REVIVED

On Tuesday, Microsoft was overtaken by IBM in market value for the first time in 15 years, chiefly because of Microsoft's static share price. Apple roared past it last year to become the world's most valuable tech company.

(Graphic showing market value of Apple, IBM and Microsoft over time: r.reuters.com/jaw69r )

An investor who put $100,000 into Microsoft stock 10 years ago would now have about $69,000 worth.

Einhorn, the president of Greenlight Capital, which had $7.8 billion of assets as of January 1, made his name with the prescient call on Lehman's accounting troubles.

In the spring of 2008, Einhorn said Lehman -- and its then-Chief Financial Officer Erin Callan -- had understated its own problems and needed to raise capital to support a balance sheet peppered with risky assets.

Einhorn's public speeches on the matter in April and May 2008 -- including one at the Ira Sohn conference that year -- touched a nerve with other investors and are widely credited as leading to Callan's departure from the company a few months before its collapse.

Microsoft shares, which gained 4 cents in normal trading, ended up a further 12 cents at $24.31 in after-hours activity.

AIG stock dips after $8.7 billion share sale

NEW YORK: Shares of American International Group Inc fell 4 percent on Wednesday, May 25 as investors recognized that the U.S. government's exit from the insurer could take a long time.

The U.S. Treasury sold 200 million shares, or 15 percent of its AIG stake on Tuesday, but still has 77 percent ownership of the insurer and another 1.5 billion shares to sell before it is fully out of its investment.

"The fact remains that the Treasury now has 77 percent and they are going to have to sell that," said Standard & Poor's equity analyst Cathy Seifert. Seifert has a "buy" rating on the stock but said that there is still "a fair amount of risk embedded in the AIG turnaround story."

Two and a half years ago, AIG was on the brink of bankruptcy. Now, after government bailouts totaling $182 billion, Washington is beginning to get its money back.

The question now is how quickly it will be able to sell its remaining 1.5 billion shares and whether the investment, overall, will be profitable.

There is also a question of how much of the beleaguered insurer's stock investors want. "The government has the political ambition and intention to reduce its holdings to zero," said Joseph Schuster, founder of IPOX Schuster LLC, but added: "The stock needs to be absorbed by the market."

Chief Executive Officer Robert Benmosche has said he expects the government to be out of its AIG position by mid-2012. Fitch Ratings said recently its own models for the company assume the government is out by the end of 2012.

A Treasury official said on Tuesday night that there was no specific timetable for the exit. He said that a full accounting would have to wait until the Treasury completes its exit, but he said he was hopeful the government would break even.

The government did not rescue AIG with the intention of turning a profit but to stem a worsening financial crisis in late 2008.

So far, the government is in the money: Tuesday's share sale, which included 100 million shares sold by AIG, came at $29 a share, higher than the average price of $28.73 the Treasury needs to break even and at a 1.6 percent discount to Tuesday's close.

Tuesday's sale helps Treasury move closer to its break-even, and it raised $5.8 billion against the $47.5 billion needed -- but, broadly speaking, AIG's shares have been trending downward. Over the course of the year, they have lost about 45 percent of their value.

AIG shares closed down 4 percent at $28.28 on Wednesday on the New York Stock Exchange.

Demand for AIG shares has not been as strong as some originally thought. The Treasury and the company agreed only earlier this month on the size of Tuesday's offering but banking sources suggested earlier this year that the share sale could raise $10 billion to $20 billion.

Underwriters on the offering were led by Bank of America Merrill Lynch, Deutsche Bank Securities, Goldman Sachs & Co and JPMorgan. - Reuters

apan's Ricoh to axe 10,000 jobs in restructuring drive

TOKYO: Japanese copier and printer maker Ricoh Co said it would cut nearly 10 percent of its workforce as it looks to boost its sagging profits and fend off competition from the likes of Xerox and Canon Inc .

Ricoh said in a statement on Thursday, May 26 it plans to reduce about 10,000 staff from a global workforce of 109,000, a move it expects will give a 140 billion yen ($1.7 billion) boost to its operating profit over the next three years.

Shares of Ricoh jumped 7.2 percent on the restructuring news, which was first reported by the Nikkei newspaper.

The firm said it was aiming for operating profit to reach 210 billion yen in the financial year to March 2014, more than triple the 60 billion yen it posted in the past year ended in March when its sales slumped 4 percent to 1.94 trillion yen.

"We have become a big company and need to re-engineer our corporate structure throughout to become more muscular," Ricoh President and CEO Shiro Kondo told a news conference.

"We have done very little pruning of unprofitable businesses, and we need to pull out of some."

Ricoh is the latest Japanese firm to announce restructuring steps in the wake of the March 11 earthquake and tsunami. Electronics giant Panasonic Corp said in April that it would cut another 17,000 jobs and close up to 70 factories around the world. [ID:nL3E7FS03A]

Ricoh said last month that it expects its operating profit to rise 16 percent to 70 billion yen in the business year that started in April, but profit levels are expected to be limited by a stronger yen and fierce competition. - Reuters

KLCI advances, boost from Tenaga, PetDag

KUALA LUMPUR: Tenaga resumed its upward trend in mid-morning trade on Thursday, May 26, shrugging off its previous day's losses in the absence of fresh news if it would get a tariff hike.

Its gains partly provided the boost to the FBM KLCI, which rose 8.67 points to 1,542.24. Turnover was 247.67 million shares done valued at RM268.07 million. There were 303 gainers, 146 losers and 266 stocks unchanged.

OSK Research said in its market outlook that for now, it was maintaining its near-term bullish view. The FBM KLCI will be in a safe position as long as it is trading above the 1,474-level.

'Immediate support is still situated at the 1,517 level followed by the 1,507 to 1,515 area and the 1,500 psychological mark. To the upside, continue looking for immediate resistance at the 1,544 level, followed by the 1,551 level and the 1,565 level,' it said.

Petronas Dagangan rose the most, up 70 sen to RM16.36, KLK 32 sen to RM21.82, F&N 30 sen to RM19.66, Batu Kawan 26 sen to RM16.48 while Tenaga added 17 sen to RM6.33 and PPB 14 sen to RM17.54.