Google lifts Wall St in otherwise rough week

NEW YORK: Google's blowout quarter led the Nasdaq higher on Friday, July 15 but mounting uncertainty about the government's ability to reach a debt-reduction deal may keep investors at bay in the coming week.

The gains were a bright spot in a stretch dominated by selling that pushed the S&P 500 down in its worst week in five. Worries about U.S. and European government debt troubles put pressure on the market even as investors expect a batch of strong earnings next week.

For the week, the S&P 500 ended down 2.1 percent, while the Dow lost 1.4 percent and the Nasdaq fell 2.5 percent.

The stock market has largely ignored the acrimonious debate in Washington about raising the debt ceiling, which is necessary to avoid a default. But investors say it is dampening enthusiasm even as most express confidence a deal will be reached.

"We're drifting and waiting for clarity on all these different issues," said Fred Dickson, chief market strategist at D.A. Davidson & Co. in Lake Oswego, Oregon.

"Each day, the deck chairs get slightly rearranged," he said. "We saw the market react to President Obama's news conference where he continued to provide more detail on progress or lack of progress on negotiations. We saw the market sell off and then bounce back."

U.S. President Barack Obama held a White House news conference on Friday on the talks. Standard & Poor's warned late on Thursday that there is a one-in-two chance it could cut the United States' triple-A rating if an agreement is not reached soon.

Google Inc's (GOOG.O) earnings beat the most bullish forecasts late on Thursday, driving its stock up 13 percent to $597.62, making it the top gainer in the Nasdaq 100. The S&P information TECHNOLOGY [] index .GSPT rose 1.6 percent.

The Dow Jones industrial average .DJI rose 42.61 points, or 0.34 percent, to end at 12,479.73. The Standard & Poor's 500 Index .SPX gained 7.27 points, or 0.56 percent, to finish at 1,316.14. The Nasdaq Composite Index .IXIC advanced 27.13 points, or 0.98 percent, to close at 2,789.80.

The CBOE Volatility Index .VIX, Wall Street's fear gauge, ended down 6.1 percent at 19.53.

The European Banking Authority (EBA) said that of the 90 European banks tested, only eight had failed the "stress tests" performed to determine if they could withstand a long recession. Expectations were for up to 15 banks to fall short. For story, see [ID:nL6E7IF19G]

"The positive is, we're moving towards increased transparency," said Paul Ehrlichman, head of global equity at Global Currents in Wilmington, Delaware. "The bank stress tests, if they continue to do them, will reveal more about the weak parts of the banks' balance sheets."

Energy was a big mover on BHP Billiton's (BBL.N) (BLT.L) $12 billion offer to purchase Petrohawk (HK.N). Shares of Petrohawk jumped 62.5 percent to $38.17. The Select Sector Energy SPDR Fund (XLE.P), an exchange-traded fund, rose 2.6 percent to $76.86.

Consumer discretionary stocks were among the biggest drags after U.S. consumer sentiment hit its lowest level since March 2009. Home Depot (HD.N) fell 0.1 percent to $35.91.

Investor Carl Icahn's offer to buy Clorox Co (CLX.N) for $10.2 billion pushed the consumer products company's stock up 8.9 percent to $74.55.

Citigroup Inc (C.N) posted higher net income, helped by falling credit losses. But the stock dropped 1.6 percent to close at $38.38.

Volume was light, with about 7.12 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year's daily average of 8.47 billion. - Reuters

Default paranoia complicating investment decisions

NEW YORK: The escalating debt crises on both sides of the Atlantic are complicating the process of investment decision making for the latter half of 2011 as sovereign default fears grow against the backdrop of a world economy still growing at a reasonable pace, Reuters reports on Saturday, July 16.

"Crisis? Take your pick" -- as Bank of New York Mellon put it on Friday -- perhaps best summarizes the mood among investors who face a crunch week for U.S. deficit reduction talks ahead of the White House's July 22 deadline on a deal to raise the $14.3 trillion debt ceiling.

The focus of the euro zone would be to assess potential damage to banks from any default of Greek sovereign debt and contagion to other peripheral countries, namely Italy. The early part of the trading in the coming week is likely to be dominated by reaction to European banking stress tests.

"The economic reality right now is investors and financial markets underestimate the impact on economic growth from the turn toward budget austerity. There's a risk of significant disappointment on the pace of growth in the United States and euro zone," said Didier Saint-Georges, member of the investment committee at private asset manager Carmignac Gestion in Paris.

"That's making us cautious on investment strategy. How to be cautious these days? Reduce your exposure."

One of the flagship funds at Carmignac has reduced equity exposure to 20 percent against a maximum limit of 50 percent and its exposure to government bonds focuses on German debt.

Reflecting increasing concerns surrounding U.S. debt, the five-year U.S. credit default swaps rose to their highest since February 2010. The CDS curve has been inverted in the past week as investors priced in greater risks over the short term than over a five year period.

"With the U.S. still debating the debt ceiling and EMU politicians divided on how to tackle the EMU debt crisis, it is time to 'Think the Unthinkable,' namely U.S. and EMU officials failing to find credible solutions," Morgan Stanley said in a note to clients.

"This is by no means our base case, but what would happen if both events were to hit markets simultaneously? We see high-yield and high-deficit currencies falling hard, with the Swiss franc and the yen outperforming in such a scenario."

CORPORATE HEALTH

What's complicating the investment strategy is that corporate news flows have been encouraging. Just on Thursday, Google results beat Wall Street's most bullish expectations, sending its shares up 12 percent.

Key earnings reports over the coming week includes Goldman Sachs, Bank of America Merrill Lynch, Apple, GE and IBM.

Analysts have consistently reduced second-quarter earnings growth forecasts for S&P 500 companies given slower economic momentum, but earnings are expected to rebound quickly toward the end of the year.

The Q2 quarterly earnings growth rate has nearly halved to 6.7 percent, from 13.3 percent in April. The Q3 rate is expected at 16.6 percent.

Next week's U.S. data including the Philadelphia Fed survey would provide a crucial update on the state of the world's biggest economy after a disappointing set of data in recent weeks, especially last week's monthly jobs report.

Analysts at Goldman Sachs say the upside risk is bigger than the downside in the near term -- this could in turn provide support for risky assets into thin summer months.

"Even if risks to the longer-term growth outlook are skewed to the downside, forward growth expectations remained above the 'run rate' visible in the current data, which in turn had been more than fully reflected in markets," Goldman Sachs said in a note to clients.

"After a long string of weak and disappointing data... the hurdle for the data to surprise to the upside had become much lower and the likelihood of near-term improvements, particularly relative to the sharp weakening, had increased." - Reuters

#Stocks to watch:* IOI Corp, UOA REIT, MAHB, SP Setia

KUALA LUMPUR: Stocks on Bursa Malaysia may see more downside pressure in the week ahead, starting July 18 due to external headwinds, mainly from the US.

On Wall Street, US stocks ended the week lower. For the week, the S&P 500 ended down 2.1%, while the Dow lost 1.4% and the Nasdaq fell 2.5%.

Mounting uncertainty about the government's ability to reach a debt-reduction deal may keep investors at bay in the coming week, Reuters reported.

Next week's U.S. data including the Philadelphia Fed survey would provide a crucial update on the state of the world's biggest economy after a disappointing set of data in recent weeks, especially last week's monthly jobs report, it said.

At Bursa Malaysia, the FBM KLCI fell 17.49 points to 1,577.25 from the week before while the marker capitalisation was reduced by RM14.07 billion to RM1.342 trillion.

Year-to-date, the KLCI is up 3.84%, making it the fifth best performing market in the key regional markets. At 1,577, the KLCI is trading at a trailing price-to-earnings of 16.82 times.

Two companies which are due to be listed in the week ahead are Inarai Bhd and Catcha Media Bhd.

Inari Bhd posted net profit RM2.6 million for the third quarter ended March 31, 2011 on the back of revenue RM35.8 million. For the nine months ended March 31, the company's net profit was RM14.7 million on the back of revenue RM77 million.

Catcha Media reported that in the first quarter ended March 31, 2011, it recorded revenue and pre-tax profit of about RM5.728 million and about RM12,000 respectively.

It said the pre-tax profit was mainly due to the lower revenue achieved in the current quarter as a result of the seasonality associated with media business, significant increase in headcounts and associated payroll expenses in both publishing and online media business in anticipation of the growth of revenue in the future as well as the listing expenses incurred in the current quarter under review.

Stocks to watch on Monday include IOI Corp Bhd. UOA Real Estate Investment Trust (UOA REIT), Malaysia Airports Holdings Bhd (MAHB) and SP SETIA BHD [].

The Edge weekly reports executive chairman Tan Sri Lee Shin Cheng as saying that going by its present growth rate, the company's property business could grow to three times its present size and become a distinct and substantial core business for the group.

UOA REIT's net profit rose 62% to RM10.68 million in the second quarter ended June 30, 2011, from RM6.59 million a year ago.

Its revenue increased by 88% to RM20.28 million from RM10.78 million. Earnings per share were 2.53 sen compared with 2.68 sen.

MAHB's decision not to install aerobridges at the new Low Cost Carrier Terminal, or KLIA 2, will save the company up to RM104 million.

Its chairman Tan Sri Aris Othman said the amount was for 80 aerobridges, costing RM1.3 million each. Although aerobridges could provide convenience, it would be a waste if airlines would not use it.

SP Setia share price closed 12 sen lower to RM3.89 on Friday after hitting an intra-day low of'' RM3.84 the lowest since early March as analysts downgraded it to underperform.

CLSA Asia-Pacific Research had downgraded SP Setia to Underperform from Outperform with a revised target price of RM4.30, based on a 10% discount to RNAV of RM4.80.'' It said this was in line with the discount applied to other property names under its coverage.

'Given that SP Setia is a pure property developer play, we believe that the 10% discount is justified from zero discount previously. We do not see any compelling reason for SP Setia to be valued at a premium compared to the rest of the property companies given that the visibility of the physical property market has been reduced by the mixed signals,' it said.

However, CLSA said it did not change its earnings estimates for FY11 and FY12 as these will continue to be supported by the strong unbilled sales recorded at RM1.8billion as at FY10, which had subsequently increased to RM3billion as at H111.

'For FY13 earnings estimates, we see potential downside risk if the mixed signals above tilted towards more negative outlook. Another potential headwind could be the change in government policy in tightening the lending requirement, which at this stage, still unclear as it remains at the proposal stage,' it said.

''

Murdoch aide Brooks quits as head of UK newspapers

LONDON: Rebekah Brooks resigned as chief executive of News International on Friday, July 15 yielding to political and investor pressure over a phone hacking scandal that has shaken Rupert Murdoch's media empire on both sides of the Atlantic.

The 43-year-old Brooks, a former editor of the scandal-hit News of the World and of flagship daily tabloid The Sun, was a close confidante of Murdoch, who described her as his first priority when he flew in to London this week to manage the crisis at News Corp's British newspaper unit.

In her place, he named a trusted News Corp veteran, New Zealander Tom Mockridge, who has spent the past eight years running the group's Sky Italia television interests in Italy.

The public disgust that erupted over reports that the News of the World may have hacked into the voicemails of murder victims and other vulnerable people prompted Murdoch to shut down the paper and pull a $12-billion bid to buy the 61 percent of British pay-TV broadcaster BSkyB he does not own.

Speaking before Brooks's resignation to the Wall Street Journal, which he owns, Murdoch defended the way his managers had handled the crisis. He spoke of "minor mistakes" and dismissed suggestions, floated by some shareholders, that he should sell off the troublesome newspaper businesses on which his empire was founded but which bring in only limited profits.

British Prime Minister David Cameron is under fire for his personal relationship with Brooks as well as for hiring another ex-editor of the News of the World as his spokesman. He has now launched a judicial inquiry into the affair, which also includes allegations of corrupt payments to police by journalists.

Struggling to quell the crisis, News International chairman James Murdoch, 38-year-old son of the founder, said the company would take out adverts in rival newspapers this weekend to say sorry: "We will apologize to the nation for what has happened," James Murdoch said in a statement.

His father endorsed his handling of a crisis.

Rupert Murdoch, 80, has been courted for decades by Britain's political elite as a kingmaker who could influence voters to shift left or right. He now faces a showdown with parliament on Tuesday when lawmakers on the media committee grill him, his son and Brooks. During an angry debate this week, one legislator called him a "cancer on the body politic."

BROOKS LEAVES THE BRIDGE

Brooks, whose youth, mane of red hair and sharp tongue have helped give her a high public profile in Britain, said in a message to staff: "My desire to remain on the bridge has made me a focal point of the debate. This is now detracting attention from all our honest endeavors to fix the problems of the past.

"Therefore I have given Rupert and James Murdoch my resignation. While it has been a subject of discussion, this time my resignation has been accepted."

She said she felt "a deep sense of responsibility for the people we have hurt."

That sounded like an acknowledgement that the News of the World's invasions of private voicemails may have gone well beyond those of the royal aides whose complaints led to the jailing of a reporter and an investigator in 2007. Police say they are now probing where another 4,000 people -- including victims of notorious crimes, bombings and war -- were targeted.

A week ago, Brooks had told News of the World staff, who were sacked with the paper's closure, that she would remain to try and resolve the company's problems -- causing anger among many of the 200 being laid off. Some accused Murdoch of sacrificing their jobs to save hers.

Mockridge, who will replace Brooks, has spent two decades in News Corp. Analysts may welcome the New Zealander's recent background in television, an area in which News Corp is keen to expand, as well as his lack of direct involvement in the scandal-hit British newspaper business during the past decade.

Prime Minister Cameron welcomed Brooks' resignation. Cameron often socialized with Brooks and her husband in their country homes, but has sought to distance himself from her as the scandal tarnished his image. His judgment has also been in question for hiring her successor at News of the World as his spokesman. Andy Coulson was arrested last week in the affair.

MISTAKES MADE

As well as its published apology this weekend, the company would also write to its commercial partners to update them on its actions, James Murdoch said. Many advertisers had said they would boycott the News of the World before the company killed it off and refused paid advertising in last Sunday's final edition.

Some advertisers had also questioned their spending in other titles, notably the Sun, Britain's best-selling newspaper.

"The Company has made mistakes," James Murdoch wrote to staff. "It is not only receiving appropriate scrutiny, but is also responding to unfair attacks by setting the record straight."

The left-leading Guardian, which brought many of the most damaging allegations to light against the News of the World, published an apology to the Sun on Friday, retracting a report that the paper might have hacked into former prime minister Gordon Brown's family medical records to run a story on his son.

Analysts said Brooks should have gone sooner. Her departure now would raise further questions, some said: "The resignation of Rebekah Brooks raises two important questions," said Ivor Gaber, a professor of journalism at City University London.

"Firstly, why did she take so long to do this? Secondly, is this unrelated to her summons to appear before the Culture, Media and Sport Select Committee?"

News Corp declined to comment on Brooks's severance package, but analysts said it is expected to include a confidentiality clause -- although she does still plan to give evidence to the parliamentary committee next Tuesday.

Jennifer McDermott, a partner with law firm Withers and veteran media lawyer, said: "They can't say she can't talk to committees and things because she's doing that on oath. Confidentiality agreements can only bind people so far."

"I would expect that there will be a clause about trying to limit what she can say and to stop her suddenly bad-mouthing other News Corp executives, for example. But she's got to be free to speak and tell the truth to these inquiries."

"NO LASTING DAMAGE"

Murdoch struck a defiant tone on Friday, saying his media empire would recover from a scandal over alleged phone hacking crimes at the News of the World and an FBI inquiry into similar allegations in the United States.

He has denied that News Corp was drawing up plans to separate its newspaper holdings, which are at the heart of the controversy, from the rest of the company.

It includes the Fox broadcast network in the United States, the 20th Century Fox film studio and newspapers around the world, including The Wall Street Journal, the New York Post and Britain's The Times and the Sun tabloid.

Murdoch said News Corp had handled the crisis "extremely well in every way possible" making just "minor mistakes" and called reports he would split off his newspaper assets "pure rubbish."

Speaking to the Wall Street Journal, Murdoch said his son James had acted "as fast as he could, the moment he could" to deal with the scandal.

Murdoch, who is still in London managing the crisis, said damage to the company was "nothing that will not be recovered."

"We have a reputation of great good works in this country," he added.

However, rival publishers are seeking to capitalize on the company's weakness.

Britain's Daily Mail & General Trust is planning a new mass-market Sunday tabloid to fill the gap left by the News of the World, which had a weekly sale of around 2.7 million.

A source told Reuters the newspaper could be published as early as next weekend if a dummy run this weekend went well.

SPELL BROKEN

The Murdochs' hold over British politics appears to have been broken by the scandal, at least for the time being.

They were forced to agree to appear before parliament after Prime Minister Cameron said they should attend and as politicians across the political spectrum united in denouncing the hacking that initially had seemed to focus on celebrities and politicians but has become seen as far more widespread.

Murdoch said lies had been told about his company in the British parliament and that he wanted to put the record straight: "We think it's important to absolutely establish our integrity in the eyes of the public," he told the Journal.

London's Metropolitan Police faced embarrassment after it emerged that a former News of the World deputy editor arrested on Thursday had worked as a media adviser to the force.

Police chief Paul Stephenson was given a 90-minute dressing down by London mayor Boris Johnson on Thursday and is expected to appear before another parliament committee next week. - Reuters

Century Software expands into Indonesian market

KUALA LUMPUR: Century Software Holdings Bhd (CSHB) is venturing into Indonesia after acquiring a 60% stake in Indonesia-based PT. Praisindo Teknologi for RM4.35 million as part of its regional expansion plan.

The company said that it had entered into a sale and purchase agreement to acquire the stake from Praisindo Teknologi's existing major shareholder, PT. Mahaka Media Tbk, which is listed on the Jakarta Stock Exchange.

The remaining 40% stake in Praisindo Teknologi will be held by its management team, it said.

Praisindo Teknologi is a software development company, focusing on the development of portfolio management solutions for the fund management and asset management industry.

In a statement Friday, July 15, CSHB chairman Samsul Husin said the acquisition was an indication that the company had the capability to grow beyond Malaysia.

'The objective of acquisition is for Century Software to expand into the huge Indonesian market in the fastest way and at the same time, to cross-sell Praisindo Teknologi's products in the Malaysian market,' he said.

'We see a lot of potential in the service that Praisindo Teknologi is providing. For example, one of the major expansion plans for Praisindo Teknologi after our acquisition is to penetrate into the lucrative banking industry for wealth management and treasury, which can command higher pricing and margins compared to the fund management industry.'

Samsul said Praisindo Teknologi's earnings for FY2012 were expected to grow exponentially with CSHB getting onboard as a major shareholder, through the additional product lines that it would introduce via Praisindo Teknologi in the Indonesian market.

'We are also optimistic that CSHB and Praisindo Teknologi will continue to work hand-in-hand towards the development of both companies,' he said.

''

UOA REIT 2Q net profit up 62% to RM10.68m

KUALA LUMPUR: UOA Real Estate Investment Trust's net profit rose 62% to RM10.68 million in the second quarter ended June 30, 2011, from RM6.59 million a year ago.

It said on Friday, July 15, revenue increased by 88% to RM20.28 million from RM10.78 million. Earnings per share were 2.53 sen compared with 2.68 sen.

It said total expenditure was RM9.49 million with RM4.51 million due to property operating expenses and RM4.98 million due to non-property operating expenses.

'Income before taxation available for distribution for the quarter under review was RM10.79 million. Taking into consideration a 95% distribution, the trust has set aside RM10.28 million as provision for income distribution.

UOA REIT said this translated into about 2.43 sen per unit for the quarter under review and included a non-taxable portion of about 0.27 sen per unit.

'Despite the recent departure of a major tenant in UOA II, the manager anticipates an improvement in the occupancy given the active enquiries received. High occupancy rates for all the PROPERTIES [] are expected for the remaining part of the year,' it said.

For the first half, net profit rose 67.7% to RM22.33 million from RM13.31 million in the previous corresponding period. Revenue increased by 83.1% to RM39.38 million from RM21.50 million.

UOA REIT said gross rental has improved by 81.4% due mainly to the contribution from the newly acquired properties (RM17.50 million).

However, operating expenses increased by about 116.0%, arising mainly from the maintenance costs of the new properties (RM3.38 million), increased manager's fee (RM558,592), increased repair and maintenance expenditure (RM170,838).

It also said there were increased borrowing costs (RM5.23 million) due to increase in cost of funding and additional bank borrowings to part-finance the acquisition of Wisma UOA Damansara II and Parcel B - Menara UOA Bangsar.

The net improvement in realised income before taxation amounted to RM8.39 million or 63.0%.

Sime Darby ex-O&G head files legal action

KUALA LUMPUR: SIME DARBY BHD []'s former executive vice president of its energy & utilities division, Datuk Mohamad Shukri Baharom has taken legal action against the group and individuals.

Sime Darby said on Friday, July 15 that Shukri was the second defendant in the oil and gas suit and also in the Bakun suit.

In response, Shukri filed a statement of claim against 12 individuals and Sime Darby Holdings Bhd in the O&G suit and also against 11 individuals, Sime Engineering Sdn Bhd and Sime Darby Holdings in the Bakun suit (third parties).

'The statement of claim against the subsidiaries of the company, Sime Engineering and Sime Darby Holdings, were served through the company's solicitors on July 13, 2011,' it said.

Pursuant to the statement of claim, Shukri sought an indemnity and contribution from the third parties in the event he is found liable to the company, to the extent of the company's claim against him in the O&G suit and the Bakun suit.

Foreigners now own 52.51% of AirAsia

KUALA LUMPUR: Foreigners owned 52.51% of the issued and paid-up share capital of AIRASIA BHD [] as at June 30, 2011, which was an increase of nearly 1% from Dec 31, 2010.

AirAsia said on Friday, July 16 the percentage of shares owned by foreigners exceeded the limit of 45%.

At as Dec 31, 2010, the stake owned by foreigners was 51.55% while on June 30, 2010, the stake was was 48.07%.

FBM KLCI pares down losses at close

KUALA LUMPUR: ''The FBM KLCI pared down its losses on Friday, July 15 in line with the late bargain hunting activities at most key regional markets.

However, the market remained sluggish as the overall sentiment at global markets remain tepid, given the flurry of weak economic data released this week from the US.

The FBM KLCI lost 2.59 points to 1,577.25 It had earlier fallen to its intra-low of 1,573.47.

Losers beat gainers by 431 to 250, while 344 counters traded unchanged. Volume fell to 697.06 million shares valued at RM1.37 billion from 713.17 million shares on Thursday.

On Bursa Malaysia, Petronas Dagangan was the top loser and fell 30 sen to RM18.20; KLK lost 24 sen to RM21.66, Tradewinds 23 sen to RM9.95, Amtel 18 sen to 70 sen, Coastal 16 sen to RM2.45, while Nestle, Genting and Hartalega fell 14 sen each to RM47.76, RM10.84 and RM5.41 respectively.

Axiata was the most actively traded counter with 26.42 million shares done. The stock was unchanged at RM5.06.

Other actives included Kurnia'' Asia, CIMB, Kencana, MAA, DVM, Asia EP and Daya Materials.

Meanwhile, gainers included NPC that rose 22 sen to RM2.30, Harrisons up 21 sen to RM3.80, Sindora 19 sen to RM1.99, Carlsberg 18 sen to RM7.70, GAB 14 sen to RM10.52, BLD PLANTATION []s 13 sen to RM6.54, while TSM, EPIC, Shell and Hong Leong Bank rose 12 sen each to RM1.59, RM2.87, RM10.42 and RM13.60 respectively.

At the regional markets, Hong Kong's Hang Seng Index fell 0.30% to 21,875.38 and Singapore's Straits Times Index lost 0.14% to 3,084.24.

Elsewhere, Japan's Nikkei 225 rose 0.39% to 9,974.47, the Shanghai Composite Index added 0.35% to 2,820.17, Taiwan's Taiex jumped 1.10% to 8,574.91 and South Korea's Kospi gained 0.71% to 2,145.20.

MAS to pay US$3.35m to US freight forwarders

KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) is paying US$3.35 million to some freight forwarders in the US to settle the air cargo litigation.

MAS said on Friday, July 15 that it had on July 11 entered into a settlement agreement with the freight forwarders in the US.

The national carrier said the settlement, which remains subject to court approval, was to resolve claims against MAS in the US concerning alleged price fixing on airfreight shipping services and related surcharges.

To recap, MAS was served with the plaintiffs' class action complaint on Feb 16, 2010.

In the latest development, MAS would pay US$3.35 million to the plaintiffs, which was the lowest settlement amount paid by any airline to date.

'Under the settlement agreement, MAS does not admit to any wrongdoing and continues to deny any involvement in price fixing activities. The settlement permits MAS to expeditiously resolve the plaintiffs' claims, which will keep its legal costs to a minimum and allow MAS to focus its full attention on further strengthening its business.

'It would also relieve MAS of the possibility of treble damages allowed under the US antitrust laws if the court rules against MAS,' it said.

MAS said the group advocated for and were committed to complying with all applicable laws, including competition laws, in their countries of operation.

Stamford College succeeds in securing principal adviser

KUALA LUMPUR: STAMFORD COLLEGE BHD [] has appointed M & A Securities Sdn Bhd as the principal adviser of the company to undertake the regularisation exercise of its financial position.

It said on Friday, July 15 the regularisation of the financial position was necessary for the upliftment from its Practice Note 17 status.

Bursa Malaysia Securities had given it until July 12 to appoint a principal adviser.

Stamford College had also until Oct 4 to submit the revamp plan to the relevant authorities for approval.

To recap, trading in its shares had been suspended since Aug 3, 2010. To recap, Bursa Securities rejected Stamford College's regularisation plan July last year.

The exchange had said the steel manufacturing business which commenced operations in February 2010, has yet to demonstrate that it was able to generate profits and positive cashflows, or proven to be a viable business.

It had also said the steel manufacturing business may be subjected to further funding requirements and therefore, could affect the enlarged group's ability to manage the resources required for the group's operations.

ACE Market-bound Inari posts net profit RM2.6m in 3Q

KUALA LUMPUR: ACE Market-bound Inari Bhd posted net profit RM2.6 million for the third quarter ended March 31, 2011 on the back of revenue RM35.8 million.

For the nine months ended March 31, the company's net profit was RM14.7 million on the back of revenue RM77 million.

There is no cumulative and quarterly results comparison with the corresponding periods of last year as this is the first interim results reported by the company.

In a statement Friday, July 15, Inari managing director Dr Tan Seng Chuan said the nine-months' net profit included the post-acquisition results of its subsidiaries, namely Inari TECHNOLOGY [] Sdn Bhd and Simfoni Sdn Bhd.

The acquisitions were completed in late September 2010.

He said the results were commendable despite the challenging environment due to the uncertainty in global economic recovery, supply chain disruption triggered by the earthquake in Japan, and margin erosion due to the weak US Dollar during this period.

'Nevertheless, we remain optimistic of the Group's sustained profitability in the upcoming quarter resulting from firm orders from our major customer in tandem with the strong demand for smart mobile devices such as the smartphones and tablet computers tempered by the weak US dollar outlook.'

Inari declared an interim single-tier dividend of 1.8 sen per share in respect of the financial year ended 30 June 2011, totalling RM6 million.

Tan said Inari had a dividend policy of paying up to 40% of group net profits to its shareholders, subject to its future capital expenditure requirements and other considerations.

Inari is slated to list on the ACE Market of Bursa Malaysia Securities Bhd on July 19.

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Bursa Securities raps Goodway over delay

KUALA LUMPUR: Bursa Malaysia Securities Bhd has publicly reprimanded GOODWAY INTEGRATED INDUSTRIES [] Bhd over the two-day delay in issuing its annual audited financial statements for the fiscal year ended Dec 31, 2010.

It said on Friday, July 15 that Goodway had breached the Main Market Listing Requirements for failing to submit its annual audited accounts for FY2010 (AAA 2010) on or before April 30, 2011.

Bursa Securities added Goodway only submitted the AAA 2010 on May 4, after a delay of two market days.

'The delay in the submission of the AAA 2010 was due to weaknesses in the preparation of Goodway's financial statements in accordance with the accounting standards,' it said.

It also said Goodway was required to ensure all its directors and the relevant personnel attend a training programme in relation to compliance with the Main Market LR particularly pertaining to financial statements.

Hibiscus Petroleum public issue oversubscribed 3.8 times

KUALA LUMPUR: Hibiscus Petroleum Bhd's public issue of 10 million new shares made available to the public was oversubscribed 3.8 times.

The company said on Friday, July 15 there were 4,757 applications for 48 million shares with a value of RM36 million.

It also said another 265 million new shares with a value of RM199 million were placed out to selected investors.

'The combined IPO funds raised from the public subscription and placement to selected investors of RM235 million represent RM150 million required to be raised by special purpose acquisition companies (SPAC) under the Securities Commission Equity Guidelines,' it said.

Hibiscus Petroleum said up to 38 million public issue shares available under the placement portion would be reallocated from the placement portion to the retail portion under the clawback provision.

Hibiscus Petroleum managing director, Dr Kenneth Pereira said: 'Being the first SPAC in Southeast Asia and the first independent Malaysian exploration and production company to be listed on Bursa Malaysia, we are very encouraged and motivated by the success of our IPO exercise, which has raised funds totalling RM235 million,' he said.

Pereira said there was strong interest from both the foreign and local investor communities.

On the shareholdings, he said apart from the 20% equity interest held by the non-independent directors and management, the next largest shareholder holds slightly less than 10% of the equity.

'The funds raised through this exercise places Hibiscus Petroleum Berhad in a good position to capitalise on the opportunities available in the oil and gas exploration and production industry in the South Asia, Middle East, East Asia and Oceania regions.

'We look forward to embarking on our next phase, which is to acquire operating companies, businesses or assets, to enhance value for our shareholders,' he said. Hibiscus Petroleum is expected to be listed on Bursa Malaysia on July 25.

MAHB saves RM104m as aerobridges shelved

KUALA LUMPUR: Malaysia Airports Holdings Bhd's (MAHB) decision not to install aerobridges at the new Low Cost Carrier Terminal, or KLIA 2, will save the company up to RM104 million.

Its chairman Tan Sri Aris Othman said on Friday, July 15 the amount was for 80 aerobridges, costing RM1.3 million each.

Speaking to Bernama after attending the company's assistant aviation security officers' graduation parade here today, he said, although aerobridges could provide convenience, it would be a waste if airlines would not use it.

On Thursday, MAHB announced that it would not install aerobridges at KLIA 2 in line with AirAsia's requirement and business model.

If there were other airlines wanting to use aerobridges, he said, they could use the facility at the main terminal.

The RM2 billion KLIA 2 is expected to be completed in the second half of this year with an annual capacity 30 million passengers.

At the ceremony, 454 assistant aviation security trainees ended their six-month training. There are now a total of 3,100 aviation security personnel nationwide, including the newly-graduated officers. - Bernama

Myanmar invites partners for 18 onshore oil blocks

YANGON:'' Myanmar has invited bids for companies to operate 18 onshore oil blocks scattered in about half a dozen provinces on a production-sharing contract basis, the biggest number made in a single offer in recent years.

Bidders are allowed to submit up to three proposals for three onshore blocks, the Ministry of Energy said in an announcement in the official English daily, New Light of Myanmar on Friday, July 15.

Proposals should be submitted by Aug. 3, 2011.

Myanmar has been exploring oil and gas in 49 onshore sites and 26 offshore blocks in Rakhine, Tanintharyi and Mon states after entering joint ventures with foreign companies since 1988.

The country's proven gas reserves tripled in the past decade to around 800 billion cubic metres, equivalent to more than a quarter of Australia's, according to the BP Statistical Review. Proven oil reserves data are not immediately available.

Neighbouring Thailand and China are the biggest investors in Myanmar's energy sector.

Companies from Australia, Britain, Canada, Indonesia, India, Malaysia, Russia, South Korea and Vietnam have also reached energy deals with the government.

Total foreign direct investment in the oil and gas sector has amounted to $13.5 billion since 1988, official data show. - Reuters

SP Setia falls to March low, CLSA downgrades

KUALA LUMPUR: SP SETIA BHD []'s share price hit a low of RM3.84 in late afternoon trade on Friday, July 15, the lowest since early March as analysts downgraded it to underperform.

At 3.28pm, it was down 17 sen to RM3.84 with 2.34 million shares done. KLCCP slipped 10 sen to RM3.40.

The FBM KLCI fell 5.02 points to 1,574.82. Turnover was 431.83 million shares valued at RM756.03 million. There were 185 gainers, 422 losers and 315 stocks unchanged.

CLSA Asia-Pacific Research had downgraded SP Setia to Underperform from Outperform with a revised target price of RM4.30, based on a 10% discount to RNAV of RM4.80.'' It said this was in line with the discount applied to other property names under its coverage.

'Given that SP Setia is a pure property developer play, we believe that the 10% discount is justified from zero discount previously. We do not see any compelling reason for SP Setia to be valued at a premium compared to the rest of the property companies given that the visibility of the physical property market has been reduced by the mixed signals,' it said.

However, CLSA said it did not change its earnings estimates for FY11 and FY12 as these will continue to be supported by the strong unbilled sales recorded at RM1.8billion as at FY10, which had subsequently increased to RM3billion as at H111.

'For FY13 earnings estimates, we see potential downside risk if the mixed signals above tilted towards more negative outlook. Another potential headwind could be the change in government policy in tightening the lending requirement, which at this stage, still unclear as it remains at the proposal stage,' it said.

Coastal Contracts at lowest since mid-April

KUALA LUMPUR: Share price of COASTAL CONTRACTS BHD [] fell to the lowest since mid-April of RM2.50 at the midday break on Friday, July 15 despite the positive outlook for the company with the latest contracts which increased its book order to RM500 million.

It fell 11 sen to RM2.50. Turnover was 302,900 shares done.'' The decline in the share price was also in line with the cautious market sentiment, especially from the external headwinds from the US.

The FBM KLCI lost 4.59 points to 1,575.25. Turnover was 308.54 million shares valued at RM482.85 million. Declining stocks beat advancers 346 to 171 while 312 counters were unchanged.

On Thursday, Coastal Contracts announced it had fixed the exercise price for the warrants to be issued at RM3.18 per warrant. The exercise price of RM3.18 was a premium of about 21.84% over the closing ex-all price of Coastal shares after the bonus issue of RM2.61 on the same day.

The warrants were issued free on the basis of one warrant for every eight shares held after the bonus issue.

Maybank Investment Bank Research was positive about the outlook for the company after it won a RM98 million contract to build a maintenance/support vessel and two barges.

'Including the new contracts and after adjusting for revenue recognition from vessels delivered to buyers in the second quarter, Coastal Group has about RM500 million worth of vessel sales orders awaiting delivery to customers up to 2012. The latest contracts have also lifted the group's year-to-date order wins to around RM430 million,' it said.

Muhibbah slips to lowest since November

KUALA LUMPUR: MUHIBBAH ENGINEERING (M) BHD []'s share price has slumped to the lowest since November 2010, hitting a low of RM1.25 on Friday, July 15 as recent gains were wiped out following concerns of its exposure to the Asia Petroleum Hub (APH), which was reported to be in receivership.

At the midday break, it was down two sen to RM1.25. There were 472,600 shares done at prices ranging from RM1.24 to RM1.28.

The FBM KLCI lost 4.59 points to 1,575.25. Turnover was 308.54 million shares valued at RM482.85 million. Declining stocks beat advancers 346 to 171 while 312 counters were unchanged.

CIMB Research has a technical Sell call on Muhibbah at RM1.27 at which it is trading at a FY12 price-to-earnings of 6.4 times and price-to-book value of 1.1 times.

The research house said Muhibbah violated its wedge support few days ago and this is a concern and 'the breakdown suggests that prices failed to bounce back above its 200-day SMA'.

CIMB Research said as the MACD stays deep in the dungeon, 'we doubt any rebound is sustainable'.

To recap, on June 28 Muhibbah managing director Mac Ngan Boon said he believed it will not have to write down the RM300 million in outstanding payments due from its major client APH

He then said APH was actively speaking to potential investors and hoped for a resolution "soonest".

"We do not believe there will be a write down. We believe there are other solutions," Mac assured shareholders after its AGM.

Recent news said APH was placed under receivership by CIMB Bank Bhd mainly because the former was unable to bring in other investors to help fund the development and to repay its borrowings.

APH is the developer and operator of the APH oil terminal in Johor and had awarded Muhibbah the marine piling and jetty works worth RM820 million.

Blue chips weigh on FBM KLCI

KUALA LUMPUR: The FBM KLCI remained entrenched below the 1,580-point level at the mid-day break on Friday, July 15 as blue chips retreated on mild profit taking.

Regional markets were also mixed following the weaker overnight close at Wall Street and ahead of the three-day weekend in Japan.

The FBM KLCI dipped 0.29% or 4.59 points to 1,575.25, dragged by losses including at Genting, as well as index-linked PLANTATION [] and banking stocks.

Market breadth was negative with losers beating gainers by 346 to 171, while 312 counters traded unchanged.'' Volume was 308.54 million shares valued at RM482.85 million.

The ringgit weakened 0.11% to 3.0035 versus the US dollar; crude palm oil futures for the third month delivery fell RM15 per tonne to RM3,126, crude oil rose 12 cents per barrel to US$95.81 and gold fell US$4.25 to US$1,583.05.

At the regional markets, Hong Kong's Hang Seng Index fell 0.26% to 21,883.89 and the Shanghai Composite Index shed 0.04% to 2,809.38.

Japan's Nikkei 225 gained 0.19% to 9,954.78, South Korea's Kospi rose 0.39% to 2,138.41, Taiwan's Taiex added 1.06% to 8,571.17 while Singapore's Straits Times Index was flat at 3,088.84.

On Bursa Malaysia, Nestle fell 40 sen to RM47.50, KLK 24 sen to RM21.66, Petronas Dagangan 20 sen to RM18.30, MISC 13 sen to RM7.57, KLCCP 12 sen to RM3.38, Coastal 11 sen to RM2.50, Genting Plantations, Tradewinds, MSM and Genting down 10 sen each to RM7.82, RM10.08, RM5.38 and RM10.88 respectively, and IOI Corp down two sen to RM5.28.

Among banks, CIMB and HLFG lost four sen each to RM8.75 and RM13.42, while AMMB fell three sen to RM6.42.

CI Holdings led the gainers and was up 21 sen to RM3.90, Sindora added 11 sen to RM1.91, Shell and Tasco 10 sen to RM10.40 and RM1.59, Inno and TGL nine sen each to RM1.50 and RM1.57, while MSC and Sunway City added seven sen each to RM4.58 and RM5.10.

The actives included Kurnia Asia, MAA, Daya Materials, Axiata, CIMB and Kencana.

Invest in talents, says BNM

KUALA LUMPUR: The private sector should adopt the culture of investing in talents and view it as an investment rather than expenses, says Bank Negara Malaysia Assistant Governor Marzunisham Omar.

He said on Friday, July 15 the central bank has been actively involved in the sphere of education and concentrated on preparing high-quality talents particularly in the finance industry.

One such initiative was the central bank's Graduate Programme which created a structured programme for graduates to learn and develop competency skills as required by the industry.

"We have allocated some RM20 million for the Graduates Programme (GP). We have spent not more than half (of the amount) and are seriously looking at extending this programme," he told reporters after a media briefing here.

Marzunisham said rising demand for technical and soft skills among graduates has created a competitive market for them, hence many graduates face stiff competition in seeking employment.

BNM has undertaken two graduate programmes todate and has trained 700 graduates and a majority of them have been absorbed into the industry after several months of attachment.

The project, which is fully sponsored, aimed to enhance the employability of graduates, particularly those from low-income families.

It also provides participants the opportunity to develop job-related competencies as well as acquire on-the-job learning via attachment with various bodies.

The programme's success has been emulated by the government through the 1Malaysia Training Scheme, said Marzunisham.

The central bank also offers scholarships, annually, for higher education such as the Kijang Emas scholarship, as well as, scholarships for employees to pursue their education right up to the doctorate level. - Bernama

Dwindling global rice surplus prompts price surge fears

BANGKOK/HANOI: A significant rice surplus is forecast to shrink by the end of the decade if more farmland in top exporting nations is put to industrial use and weather conditions worsen, keeping prices high as a growing world population boosts demand.

Ample supply may insulate Asia's main staple for at least two more years from price surges that have hit other grains, but costlier rice would feed food inflation worries, stirring fears of a repeat of the 2007/08 global food crisis that led to riots in some developing nations.

An estimated excess of 2 million tonnes of rice over the next three years is seen diving 90 percent to 200,000 tonnes by the end of the decade, under normal weather patterns, the Food and Agriculture Organisation (FAO) says.

The UN food agency and the Organisation for Economic Co-operation and Development (OECD)''see prices staying at the high levels persisting since 2007/08. Thai benchmark rice prices have jumped at least 40 percent in the last five years.

"We foresee world rice prices remaining above the levels prevailing prior to 2006," said Concepcion Calpe, a senior FAO economist, adding higher production costs due to competition for land, water, energy, fertiliser and labour backed that forecast.

That could worsen in the next decade if top exporters Thailand and Vietnam switch more land to other uses, water and labour shortages intensify and moves to improve yields prove ineffective.

Traders and analysts agree with the FAO projection of a precarious supply-demand balance and say a supply shock, or any aggressive moves by the incoming Thai government to intervene in the market, could drive up prices.

A plan by the Puea Thai Party to buy rice from farmers at 15,000 baht a tonne could push export prices to as much as $870, but is not expected to stimulate output as the government is limited to buying a quarter of total production.

''

''

SELF-SUFFICIENT, BUT FOR HOW LONG?

China is also increasingly exposed to extreme weather such as prolonged drought followed by flooding in rice-growing areas, driving it to buy more farm products, including rice, from neighbouring Vietnam.

Supply concerns have also led major rice importers Indonesia and the Philippines to push up domestic production of the grain.

The Philippines, the world's biggest rice buyer in recent years, aims to import less than 500,000 tonnes in 2012, well below the record of 2.45 million tonnes last year.

"The Philippines hopes to be self-sufficient in rice by 2013 and is looking into the possibility of exporting rice after 2013," said Agriculture Secretary Proceso Alcala. To get there, his ministry has targeted record output of 17.4 million tonnes of paddy rice this year and 19.2 million in 2012.

Indonesia aims for record paddy output in 2011 and to raise annual production by 5 percent by opening up 2 million hectares of land up to 2014.

"I think they are achievable, both for the Philippines and Indonesia. I think achieving self-sufficiency is one thing, maintaining self-sufficiency is more difficult," said Samarendu Mohanty, a senior economist at the Manila-based International Rice Research Institute (IRRI).

But unpredictable weather around the southeast Pacific Ocean, such as the La Nina weather pattern last year, can easily defeat the plans, Mohanty said. "They can be self-sufficient as long as the weather is good."

The market doubts if Indonesia can reach its goals. It is looking to import more rice in the second half, after around 1 million tonnes in the first half, to make up for below-target stock procurement, traders and officials said, a move that will again expose it to price jumps of the kind seen early this year.

''

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FOOD INFLATION WORRIES

Rising benchmark oil prices, which hit a peak of $147 a barrel in 2008, led to higher rice prices by encouraging farmers to switch from food to biofuel crops.

A food panic ensued after India halted rice exports to secure supplies at home, while Vietnam banned new export contracts from March to June 2008 to meet local demand, leading to global tightness that tripled prices that year.

But this week, India has agreed to allow exports of 1 million tonnes of common rice from bulging stockpiles.

In 2006 before the panic set in, Thai benchmark 100 percent B grade white rice traded around $380 a tonne, free on board. In April 2008, it hit a record of $1,080 a tonne, after a move to support domestic rice prices in Thailand similar to the one proposed by the incoming government.

Current rice prices are still considered firm around $550, and the FAO said grains would stay at high levels historically. Surging wheat, corn and soybean prices drove the FAO food index to a record in February.

''

OUTPUT RESPONSE

High rice prices have led Thailand and Vietnam to encourage farmers to produce more, through higher yields, but analysts said they were unlikely to push output much higher in the next few years.

Top exporter Thailand has 9.1 million hectares (22.5 million acres) for rice and, because of a land shortage, is banking on a new hybrid strain to help lift annual output by percent to 35 million tonnes of paddy by 2015, said Prasert Gosalvitra, director-general of the rice department.

"We need to maintain rice areas at this level and do all we can to increase yields to maintain our capacity to feed our people and be the number one exporter," Prasert said.

Second-biggest exporter Vietnam has 7.0 million hectares under rice cultivation, its agriculture ministry said. Urbanisation and industrialisation could shrink that, requiring better farming techniques to boost yields if it aims to produce 44 million tonnes a year, from 40 million now.

"It's possible to reach 44 million to 45 million tonnes per year if fields are consolidated and intensive farming is undertaken," said Bui Chi Buu, director of the Institute of Agricultural Science for Southern Vietnam.

FBM KLCI extends losses in sluggish trade

KUALA LUMPUR:'' The FBM KLCI extended its losses at mid-morning on Friday, July 15 in sluggish trade in line with the tepid sentiment at most key regional markets following the weaker overnight close at Wall Street.

Global markets have been on a jittery edge over the past week, with less than encouraging economic data from the US, including a warning from S&P that there as a one-in-two chance it could cut the United States' triple-A credit rating.

The FBM KLCI fell 2.01 points to 1,577.83 at 10am.

Losers edged gainers by 187 to 115, while 212 counters traded unchanged. Volume was subdued with 105.25 million shares valued at RM111.98 million.At the regional markets, Hong Kong's Hang Seng Index fell 0.43% to 21,845.62, the Shanghai Composite Index down 0.41% to 2,798.87 and Singapore's Straits Times Index shed 0.05% to 3,087.22.

Meanwhile, Japan's Nikkei 225 rose 0.20% to 9,955.57 on bargain hunting activities; South Korea's Kospi added 0.32% to 2,136.94 and Taiwan's Taiex gained 0.26% to 8,502.99.

BIMB Securities Research in a note July 15 said Wall Street succumbed to a u-turn by Bernanke that the Feds may not be as willing to impose another stimulus plan as yet.

Adding to this, rating giants Moody's and S&P have reiterated of a possible downgrade in US debt rating, it said.

'On the local front, the FBM KLCI seems to be fairly well supported at the 1,580 level after having moved at a narrow range.

'Today's news on DBS to takeover Alliance Bank may spark another round of speculation on the banking M&A story which should bode well for the market. Expect another dull trading session with some upside bias today,' it said.

On Bursa Malaysia, KLK led the losers and fell 22 sen to RM21.68; Nestle and Magni fell 10 sen each to RM47.80 and RM1.29, Huat Lai six sen to RM2.30, Sinaria 5.5 sen to 23.5 sen while KLCCP, MSM and Sapura Industrial fell five sen each to RM3.45, RM5.43 and RM1.16 respectively.

Meanwhile, Tan Chong and Proton fell six sen each to RM4.83 and RM3.15 respectively after Frost & Sullivan cut is 2011 vehicles sales forecast to 615,900 units from the earlier projected 623,000.

Among the gainers, MSC added 24 sen to RM4.75, TSM 18 sen to RM1.65, Batu Kawan, DiGi, Tradewinds and CI Holdings added 10 sen each to RM16.80, RM29.98, RM10.28 and RM3.79 respectively, Lafarge Malayan Cement and Cypark up six sen each to RM7.48 and RM1.88, while Kuchai rose five sen to RM1.17.

Actives included Daya, Kencana, Swee Joo, Talam and Hubline.

OSK Research maintains Neutral on CPO prices

KUALA LUMPUR: OSK Research is maintaining its Neutral bias view on near-term crude palm oil (CPO) prices.

It said on Friday, July 15 the immediate strong resistance now still lies at the RM3,163 per tonne level, followed by the 200-day MAV line, which is now located at the RM3,372 a tonne level.

'For support, we eyeing the RM3,031 per tonne level, followed by RM3,000. A very strong support can be found at the RM2,760-RM2,903 per tonne zone,' it said.

OSK Research said in retrospect, it started becoming cautious on CPO's near-term prices when they fell below the RM3,163 a tonne critical low last month.

'This level represents the lowest point of the 'non-classical Hammer' which was created as a result of a rather strong intra-day rebound. Hence, when such a major low is taken out, it is normally viewed as a major sentiment dampener,' it said.

The research house said this violation was also followed by another breakdown from the RM3,103 a tonne level, or the meaningful low created in November last year.

'We also mentioned in our previous update that a decisive retracement back below the RM3,000 a tonne level would alter our neutral view towards the near-term market to bearish. Since the RM3,163 / tonne level has been violated, prices have started to consolidate sideways although they did not retrace further,' it said.

OSK Research said it will see if CPO prices could return back above the RM3,163 a tonne level.

A successful bounce back would definitely improve its current precarious technical position. If not, should the RM3,000 psychological mark be violated, it simply means that the market will be extending the downtrend that started from slightly below the RM4,000 psychological mark.

Hua Yang up on bonus issue plan

KUALA LUMPUR: HUA YANG BHD [] shares rose on Friday, July 15 after it proposed a bonus issue of 36 million shares on a one-for-three basis.

At 9.10, Hua Yang rose four sen to RM1.80 with 905,600 shares done.

The company expects the corporate exercise to be completed in the second half of 2011.

Meanwhile, Hua Yang's net profit for the first quarter ended June 30, 2011 surged 133% to RM11.48 million from RM4.91 million a year earlier, due mainly to higher sales achieved.

Revenue for the quarter rose 66% to RM61.75 million from RM37.22 million. Earnings per share were 10.63 sen while net assets per share were RM2.15.

''

Daya active, up on B.Braun job

KUALA LUMPUR: DAYA MATERIALS BHD [] shares were actively traded on Friday, July 15 after it secured a RM120 million contract from B Braun Medical Industries Sdn Bhd to build a new six-storey building in Bayan Lepas, Penang.

At 9.15am, Daya was up 1.5 sen to 21.5 sen with 4.27 million shares done.

Daya's unit Daya CMT Sdn Bhd was awarded the contract on June 22 and it involved building a one-storey utility plant rooms, a building for multi-level parking and a two storey multi-purpose building.

''

ECM Libra Research expects Tenaga 3Q results to be weak

KUALA LUMPUR: ECM Libra Research expects TENAGA NASIONAL BHD [] (TNB) to report weak results for its 3QFY11 results. The results are due on July 21.

'We expect the results to be weak, as the company had earlier issued a profit warning during the 2QFY11 results conference call.

'Weak results will mainly be attributed to gas shortages leading to TNB burning more alternative fuels such as coal, oil, distillate and even resorting to importing electricity from Power Seraya, Singapore,' it said.

ECM Libra Research said unfortunately, this gas shortage problem coincided with seasonally strong demand in April and May, which further adds to TNB's fuel costs, as it burns more alternative fuel to meet the strong seasonal demand.

'Over a 12-months horizon, we are still positive on TNB's fundamentals. Hence, any short-term price weakness arising from the weak 3QFY11 results will be a good opportunity to accumulate,' it said.

It said the gas curtailment problem should be over, after the last of three scheduled maintenance work by Petronas is completed by end-June. From July onwards, it will be business as usual for TNB as gas supply to the power sector should recover to the usual 1,150 mmscfd.

The government has set-up a new special-purpose unit called MyPower Corp to review the power purchase agreements (PPAs) between TNB and the IPPs.

'We view the setting up of this special-purpose unit positively, as it signals that the IPP re-negotiation is gaining momentum.

Investment merits are:

A big-cap, index-linked stock trading at a discount to market P/E multiple.

Beneficiary of improving regulatory environment for the power sector.

Re-rating catalysts:

Successful pass-through of higher coal costs in the next tariff review in Dec 2011.

Favourable outcome from power purchase agreements re-negotiation with the independent power producers (IPP) leading to lower future capacity payments (CP).

Key risks:


Continued appreciation in coal prices resulting in higher fuel costs. TNB's current tariffs are only covered up to USD85/MT, compared to market price of about US$120 a tonne.

Longer-than-expected gas curtailment from Petronas.

Valuation:

Maintain BUY on TNB with a target price of RM7.84, based on unchanged P/E multiple of 15x on CY11 EPS.

Proton, Tan Chong dip on weaker sales outlook

KUALA LUMPUR: PROTON HOLDINGS BHD [] and TAN CHONG MOTOR HOLDINGS BHD [] shares retreated on Friday, July 15 after Frost & Sullivan cut its vehicles sales projection for 2011.

At 9.40am, Proton was down five sen to RM3.16 while Tan Chong fell six sen to RM4.82.

Frost & Sullivan on July 14 said vehicles sales in Malaysia will dip to 615,900 units in 2011 from the earlier projected 623,000 units due to supply chain disruptions from the impact of the March 11 Japan earthquake.

It said that TIV for 2011 would be impacted due to production slowdown and delay in key models launches by automakers.

''

CIMB Research ups Maybank TP to RM11.20

KUALA LUMPUR: CIMB Research has replaced RHB Capital with Maybank as its top pick for the sector as its well-diversified business portfolio makes it the biggest bank beneficiary of the implementation of Economic Transformation Programme (ETP).

It said on Friday, July 15 that the ETP spillovers will drive its investment banking income, consumer and business loan growth as well as the growth of its insurance and asset management businesses.

'We retain our earnings forecasts but raise our target price from RM10.30 to RM11.20 (10% above the DDM value) as we increase the assumed dividend growth rate from 7.7% to 8.7% to reflect ETP prospects.

'Our BUY rating is reaffirmed, premised on the potential re-rating catalysts of (1) ETP catalysts, (2) swift expansion in Indonesia, (3) faster-than-expected loan growth, and (4) the pick-up in investment banking income. The stock also commands the best dividend yield of about 7%,' it said.

CIMB Research has technical Buy on Hiap Teck

KUALA LUMPUR: CIMB Research has a technical Buy on Hiap Teck Venture at RM1.03 Hiap Teck Venture at which it is trading at a price-to-book value of 0.5 times.

It said on Friday, July 15 that Hiap Teck broke out of its descending wedge pattern on Thursday.

The rebound also lifted prices above its 30-day and 50-day SMAs and it believes there is still room to the upside. The following levels are RM1.09 and RM1.17.

The bullish divergence on its MACD indicator suggests that selling climate has tapered off. RSI too has hooked upward.

'Risk takers may start to nibble now. However, always put a stop at below RM0.995-0.95. A break below the RM0.91 would negate the bullish count,' it said.

CIMB Research has technical Buy on Mulpha Intl

KUALA LUMPUR: CIMB Research has a technical Buy on Mulpha International at 48.5 sen at which it is trading at a price-to-book value of 0.4 times.

It said on Friday, July 15 that it appears that a triangle pattern is in the making. If prices can take out the 50.5 sen resistance trend line soon, there is a good chance for it to reach 55 sen and possibly even 59 sen next.

'Technical landscape remains undemanding. MACD is poised for a positive crossover while RSI has hooked upward.

'As long as prices stay above its recent low of 46.5 sen, the bulls seem to have the upper hand here. Be quick to cut loss if this level is breached,' it said.

CIMB Research has technical Sell on Muhibbah

KUALA LUMPUR: CIMB Research has a technical Sell call on Muhibbah Engineering at RM1.27 at which it is trading at a FY12 price-to-earnings of 6.4 times and price-to-book value of 1.1 times.

It said on Friday, July 15 Muhibbah violated its wedge support few days ago and this is a concern.

'The breakdown suggests that prices failed to bounce back above its 200-day SMA,' it said.

CIMB Research said as the MACD stays deep in the dungeon, 'we doubt any rebound is sustainable'.

It added the RSI too was close to the oversold territory.

'Our strategy here is to unload on strength as prices are likely capped at RM1.30-1.40 is the near term. On the downside, support is seen at RM1.20 and RM1.10,' it said.

Muhibbah Engineering provides civil, marine, and structural engineering contract works. It also manufactures engineering products and distributes and markets CONSTRUCTION [] materials.

It also repairs and builds ship, produces and leases cranes and invests in PROPERTIES [].

HDBSVR sees fairly limited downside risk for market

KUALA LUMPUR: Hwang DBS Vickers Research continues to see fairly limited downside risk for the Malaysian bourse in the short-term.

It said on Friday, July 15 that against the prevailing jittery market sentiment, the benchmark FBM KLCI will probably find immediate support at around the 1,575 level.

On the regional front, investors will likely remain nervous in view of Wall Street's losing streak. Key U.S. equity indices dropped further (by between 0.4% and 1.2%) last night as worries over a possible cut in credit rating persisted.

'Amid a quiet market backdrop, counters that may attract a bit more interest today include(a) Hua Yang, which has just announced a 1-for-3 bonus issue; and (b) Daya Materials, after winning a contract valued at RM120 million to construct a building for B Braun Medical Industries in Penang,' it said.

Google smashes Street expectations, shares surge

SAN FRANCISCO: Google Inc's 36 percent revenue surge smashed Wall Street's expectations and eclipsed concerns about mounting expenses, sending the Internet giant's shares up more than 12 percent, Reuters reported on Thursday, July 14.

Google's profit also topped forecasts in a quarter that showed the company is powering ahead in areas outside of its dominant Internet search business, including mobile and online video. The next challenge is whether it can duplicate that success in social networking.

Executives told analysts on a conference call the company had signed up more than 10 million people for Google+: the company's biggest foray into the hot social networking arena and the vanguard of its battle with Facebook and Twitter for websurfers' time and attention.

Over 135 million Android smartphones or tablets -- made by the likes of Motorola and Samsung Electronics -- had been activated in total. And its Chrome browser is now employed by more than 160 million users, CEO Larry Page said.

Shares of Google were up 12.3 percent at $594.50 in after-market trading, or just a whisker above levels at which the stock began 2011.

"Google should be viewed as a growth company again this quarter," said Stifel Nicolaus analyst Jordan Rohan. "The combination of mobile search, Android, ad exchange, YouTube, and the core search businesses, they're all doing well. Google is no longer a one trick pony."

"The number to focus on is really the GAAP earnings number. Google spent aggressively, hiring just as many people this quarter as they did last quarter."

Investors had feared Google's ever-increasing spending would eat into margins. Operating expenses leapt 49 percent to $2.97 billion in the second quarter, to about a third of revenue.

Analysts said the big increase in sales more than compensated for the rise in costs, but Google might find it increasingly difficult to shore up margins while it continues to hire, acquire and invest.

"Revenue growth overrides the hiring and the expense issues," BGC Partners analyst Colin Gillis said in response to the share price jump.

"Nice quarter from the guys, but you still have a situation of declining margins," he added.

PROFLIGATE SPENDING?

However, Page said the company may now be "a little ahead of where we need to be with headcount growth." Google had 28,768 employees as of the end of June 30.

Net income in the second quarter climbed to $2.51 billion, or $7.68 a share, from $1.84 billion, or $5.71 a share, in the year-ago period.

Excluding certain items, it earned $8.74 a share, ahead of analysts' average expectations of $7.85 a share.

Net revenue, which excludes fees paid to partner websites, jumped 36 percent to $6.92 billion, ahead of the $6.55 billion expected by analysts polled by Thomson Reuters I/B/E/S.

Co-founder Page is expected to face questions on Thursday regarding its spending and margins, and will be under pressure to make a better impression than he did during last quarter's post-earnings briefing. On that call, the man who founded Google with Sergey Brin annoyed participants after he came on the conference call, said a few words, then abruptly left.

Before the earnings, some analysts had argued that the launch of Google+ may take some of the heat off the company for its spending and make Wall Street more comfortable with Page, who took the CEO reins in April.

"We're still in the very early stages of what we want to do," Page said. "Our emerging ... products can generate huge new businesses for Google in the long run, just like search. And we have tons of experience monetizing products over time."

Investors are hungry also for details about an investigation by the U.S. Federal Trade Commission into Google's business practices as well as any commentary about how the European debt crisis is affecting its advertising business. - Reuters

Bernanke warns spending cuts could derail recovery

WASHINGTON: Federal Reserve Chairman Ben Bernanke warned on Thursday, July 14 that overzealous cuts to government spending in the short term could derail a shaky recovery and said a debt default could wreak financial havoc.

"I only ask ... as Congress looks at the timing and composition of its changes to the budget, that it does take into account that in the very near term the recovery is still rather fragile, and that sharp and excessive cuts in the very short term would be potentially damaging to that recovery," Bernanke told the Senate Banking Committee.

Congress and the White House are stalemated in talks on cutting the budget deficit, with Republicans seeking $2.4 trillion in spending cuts in exchange for agreeing to raise the $14.3 trillion government borrowing limit. The Treasury has said it will run out of money after August 2 to pay all of the country's bills if a deal is not reached to raise the debt ceiling.

On the second day of delivering the Fed's semiannual monetary policy report to Congress, Bernanke renewed his warning that a United States debt default would be devastating for the U.S. and global economies.

"It would be a calamitous outcome," Bernanke said. "It would create a very severe financial shock that would have effects not only on the U.S. economy, but the global economy."

Failure to raise the debt limit in time would constitute a "self-inflicted wound" to the economy, he added.

NEW DOWNGRADE THREATS

Moody's Investors Service warned late on Wednesday that the United States could lose its top credit rating in coming weeks if a standoff between the White House and congressional Republicans over raising the statutory borrowing limit is not resolved.

Earlier on Thursday, China -- the United States' biggest foreign creditor -- urged the U.S. government to adopt responsible policies to protect investors' interests after the Moody's warning.

Another ratings agency, Standard & Poor's, also privately told U.S. lawmakers and business groups, a congressional aide said on Thursday, that it might still cut the United States' rating if the government fails to make any of its expected payments -- on debt or other obligations.

In comments that mirrored his remarks on Wednesday, Bernanke said the Fed is prepared to act if the modest recovery from the recession that ended two years ago falters.

He made clear, however, the Fed is not at that point now. For one thing, inflation is higher than in late 2010, when the U.S. central bank readied its most recent round of bond buying, he told lawmakers in response to questions.

"Today the situation is more complex," Bernanke said. "We're not prepared at this point to take further action.

On Wall Street, stocks fell as Bernanke's comments raised questions about the Fed's readiness to ease rates further. The dollar rose against most major currencies as another round of monetary stimulus looked remote.

Economic reports released on Thursday suggested the economy will struggle to regain speed in the second half of the year, as the Fed has forecast. The number of Americans claiming initial unemployment benefits dropped last week, but remained elevated, and retail sales barely rose in June, government data showed.

Also, producer prices in June posted their steepest decline since February 2010 as energy prices eased.

While Fed policymakers have been worried about rising inflation, the risk of a damaging deflationary spiral could force the central bank to act to promote growth.

Economists polled by Reuters cut their outlook for U.S. growth to 2.5 percent this year. That forecast put the United States ahead of major European economies except Germany, but behind some major emerging markets including China.

Although Bernanke told Congress the Fed's recently completed $600 billion bond-buying program has been effective in lowering long-term interest rates and coaxing investors to take greater risks, it has been controversial, and several lawmakers questioned it on Thursday.

"I believe the stage is set for a resurgence of inflation if the Fed is not careful," Senator Richard Shelby told Bernanke at the hearing.

Former Fed chairman Paul Volcker on Thursday also raised doubts about the Fed's ability to ease policy further, adding that more efforts might have negative unintended consequences.

"There are limits as to how much more they can do within things that are feasible for a central bank," he said in an interview with Reuters Insider TV on the sidelines of a conference in London.

"With interest rates so low, practically to the vanishing point, there is always a question of whether you end up inadvertently stimulating speculative activity that you'd just as soon not stimulate," he said.

Volcker's reputation as a former Fed chairman is high because he was willing to plunge the U.S. economy into a painful recession to break the back of high inflation. - Reuters

Bernanke halts Wall Street rally; Google up late

NEW YORK: Stocks fell on Thursday, July 14 as Fed Chairman Ben Bernanke backed off hints additional near-term stimulus could be on the way, removing a possible catalyst from a market already facing plenty of obstacles.

TECHNOLOGY [] shares led the market lower and the Nasdaq fell 1 percent, reversing early gains while the market's favored indicator of anxiety, the CBOE Volatility Index .VIX, rose 4.5 percent and hit a two-and-a-half week high.

Bernanke said in a second day of testimony that the U.S. central bank would be ready to inject more money should the economy get worse. He said the time had not come yet, undercutting comments from a day earlier that spurred a late-day rally.

JPMorgan Chase & Co (JPM.N) rose 1.8 percent to $40.35 after it reported higher-than-expected profit as it wrote off fewer bad mortgages and credit card loans. The Dow component was the only component of the S&P financial index .GSPF to close higher.

"You're seeing a push and pull, with earnings continuing to be strong on the micro level, but event-risk issues like Bernanke and global debt, on the other hand," said Wayne Lin, a money manager at Baltimore-based Legg Mason Inc, which manages $671 billion.

"The market is volatile, trading off these one-line comments from Bernanke."

The Dow Jones industrial average .DJI slid 54.49 points, or 0.44 percent, to close at 12,437.12. The Standard & Poor's 500 Index .SPX shed 8.85 points, or 0.67 percent, to finish at 1,308.87. The Nasdaq Composite Index .IXIC dropped 34.25 points, or 1.22 percent, to end at 2,762.67.

Stocks climbed on Wednesday as investors took Bernanke's remarks before a House panel as signaling the possibility of more stimulus for the economy if the outlook worsens. The central bank's most recent stimulative program contributed to strong equity gains since September.

The S&P 500 appeared to find support on Thursday near 1,300, limiting deeper losses.

"The market has pretty sharp downside momentum before it came up against 1,300," said Mark Arbeter, chief technical strategist for Standard & Poor's in New York. "It might take the market a couple of days to put in a bottom, but if we see a renewed decline in the dollar, stocks will work higher."

TECH OFF, BUT GOOGLE FLIES LATE

Technology stocks were Thursday's top decliners, extending a losing streak to a second day. The Merrill Lynch Semiconductor HOLDRS Trust (SMH.P) lost 1.3 percent to $32.46, just below its 200-day moving average.

Google Inc (GOOG.O) shares surged 11 percent to $585.57 in extended trading after the Internet giant reported adjusted quarterly earnings that beat expectations.

The stock had fallen in Thursday's regular session, and following the results, Nasdaq futures rose 0.2 percent.

During the regular session, News Corp (NWSA.O) shares fell 3.1 percent to $15.44 on heavy volume after the Federal Bureau of Investigation said it would probe allegations that the company hacked into the phone records of victims of the September 11, 2001, attacks on the United States.

Worries about a deadlocked debate over U.S. budget cuts and raising the debt ceiling further soured investor sentiment.

Moody's announced late on Wednesday that it might cut the United States' prized triple-A credit rating. Moody's cited the increasing risk that Congress would not raise its $14.3 trillion debt ceiling in time to avert a default, which investors and experts say could roil financial markets.

"There could be further volatility -- which is code for going down -- as we near the deadline, but the market thinks the debt ceiling will be raised," said Kent Engelke, chief economic strategist at Capitol Securities Management in Richmond, Virginia. "If it didn't, we'd be down 5,000 points right now."

Declining stocks outnumbered rising ones by a ratio of about four to one on the New York Stock Exchange while on the Nasdaq, more than three stocks fell for every one that rose.

Volume was light, with about 7.44 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year's daily average of 8.47 billion. - Reuters

ASIA-Shares face weak start on growth fears

WELLINGTON: ''Asian stocks will likely struggle on Friday, as Federal Reserve Chairman Ben Bernanke hosed down suggestions of more near-term stimulus for the struggling U.S. economy.

Speaking to the Senate Banking Committee Bernanke said it was not yet time for more stimulus, while warning a U.S. debt default would cause havoc on financial markets, and heavy cuts to government spending could derail a recovery in the world's largest economy.

The main Wall Street indices shed between 0.4 percent and 1.2 percent, with investors uncertainty in the wake of Bernanke's comments pushing the CBOE Volatility Index, up 4.5 percent to a two-and-a-half week high.

It also overshadowed a solid result from JPMorgan Chase & Co, who rose 1.8 percent after it reported higher-than-expected profit as it wrote off fewer bad mortgages and credit card loans.

Asian stocks listed on Wall Street fell 0.8 percent while world stocks, as measured by the MSCI world equity index, were 0.7 percent lower.

British shares slipped 1 percent while European shares fell 0.8 percent, as rising euro zone debt worries in the wake of an Italian bond auction rattled financial stocks.

Gold prices pushed to a record high as fears for the economic outlook rattled investors, already on edge over the euro zone debt woes and Moody's warning over the U.S. credit rating.

The U.S. dollar regained some of the ground lost this week after Bernanke's comments, climbing out of a four-month trough against the yen .

The weakening currency will cheer Japanese markets, which have held above major support, although foreign investors are seen possibly trimming long positions ahead of a long weekend in Japan. Nikkei futures traded in Chicago 10 points above the last closing level in Osaka.

Australian stocks are set to struggle as commodity prices slid 1.3 percent on economic fears. Share price index futures are at a 32.7 point discount to the close of the underlying S&P/ASX 200 index. ' Reuters

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Atlan 1Q net profit RM92.2m, boost from land sales

KUALA LUMPUR: Atlan Bhd posted net profit of RM92.35 million in the first quarter ended May 31, 2011 from RM24.21 million a year ago, boosted by sale of several pieces of land.

It said on Thursday, July 14 revenue was marginally higher at RM177.29 million from RM175.96 million a year ago while earnings per share were 36.60 sen compared with 10.05 sen.

The earnings were boosted the sale of six pieces of land measuring 43.95 acres in Penang by its unit Blossom Time Sdn Bhd for'' RM104.42 million and a piece of land measuring 17.08 acres in Penang also for RM40.58 million.

As at May 31, its long term secured borrowings were RM210 million.

In terms of segment revenue it was RM253.15 million of which its duty-free business accounted for RM193.03 million, manufacturing (RM30.45 million), hotel and property (RM25.77 million), investments (RM1.82 million), and others (RM2.08 million).

However, after eliminations totaling RM75.86 million, the revenue was reduced to RM177.29 million.

JPMorgan quarterly profit higher, beats estimates

NEW YORK: JPMorgan Chase & Co posted higher-than-expected quarterly profit as it wrote off fewer bad mortgages and credit card loans.

JPMorgan, the first big U.S. bank to report second-quarter results, said on Thursday, July 14 it earned $5.4 billion, or $1.27 a share. Wall Street analysts, on average, had expected $1.21 per share, according to Thomson Reuters I/B/E/S.

The results compared with year-ago earnings of $4.8 billion, or $1.09 a share.

Chief Executive Jamie Dimon said in the earnings announcement that mortgage costs were down slightly. "Unfortunately, it will take some time to resolve these issues and it is possible we will incur additional costs along the way," he added.

This quarter the bank did not have to pay a UK tax on bonuses. In the year-earlier period, the tax reduced profits by $550 million, or 14 cents a share.

JPMorgan shares rose 2 percent in premarket trading following the results. Stock futures briefly edged higher, then fell back. - Reuters

AEON to operate store at 1 Utama, after withdrawing suit

KUALA LUMPUR: AEON Co. Bhd will operate its department store and supermarket at the 1 1 Utama Shopping Centre in Petaling Jaya after it withdrew its suit against Bandar Utama City Sdn Bhd (BUC).

AEON said on Thursday, July 14 the legal proceedings including arbitration over the difference or dispute between both parties regarding BUC's refusal to renew the lease at the shopping centre was withdrawn on Tuesday.

'Both parties have resolved the same amicably by entering into a tenancy agreement on June 23, 2011 to enable AEON to operate its department store cum supermarket at 1 Utama Shopping centre,' it said.

The legal proceedings were mentioned in its first quarter announcement dated May 26, 2011.

To recap, in the May 25 statement, it said the lease agreement dated Oct 18, 1995 between the company and BUC'' had expired on Aug 18, 2010.

AEON had handed over the operation of 1 Utama Shopping Centre to BUC on Aug 18, 2010 while the company has obtained an injunction from the court, among others, to continue to operate its department store cum supermarket at the shopping centre after Aug 18, 2010.

BUC then appealed against the injunction to the Court of Appeal and the appeal was dismissed.

Hua Yang 1Q net profit surges to RM11.48m

KUALA LUMPUR: HUA YANG BHD [] net profit for the first quarter ended June 30, 2011 surged 133% to RM11.48 million from RM4.91 million a year ago, due mainly to higher sales achieved.

In a statement Thursday, July 14 it said revenue for the quarter rose 66% to RM61.75 million from RM37.22 million. Earnings per share was 10.63 sen while net assets per share was RM2.15.

Hua Yang chief financial officer May Chan said that in terms of total sales achieved, about 77% was from the Klang Valley and the balance from its developments in Johor, Ipoh and Senawang.

She said a major contributor to sales was One South at Sungai Besi, which is Hua Yang's flagship development in the Klang Valley.

She said Phase 2 of One South, consisting of 2 blocks of serviced apartments with a total gross development value (GDV) of RM150 million had been 100% booked, of which, 50% had been converted into sales with Sale and Purchase Agreement executed and loan approved.

Chan said prospects for Hua Yang augured well in financial year 2012, adding that the company has a sizeable portion of unbilled sales in the pipeline.

'From this quarter alone, we have close to RM372 million in unbilled sales. We expect this to maintain a strong earnings visibility for us as we go forward,' she said.

Chan also pointed out that in May 2011, Hua Yang acquired 1.55 acres of prime land in Desa Pandan Commercial Centre ' just minutes away from Jalan Tun Razak and the proposed KL International Financial District (KLIFD).

Last month, Hua Yang secured another parcel of land by auction, 3.73 acres of leasehold land in the vibrant commercial area of Section 13, Shah Alam, near the Shah Alam stadium and the Laman Seri Business Centre, she said.

Coastal fixes warrant exercise price at RM3.18

KUALA LUMPUR: COASTAL CONTRACTS BHD [] has fixed the exercise price for the warrants to be issued at RM3.18 per warrant.

It said on Thursday, July 14 the exercise price of RM3.18 was a premium of about 21.84% over the closing ex-all price of Coastal shares after the bonus issue of RM2.61 on the same day.

The warrants were issued free on the basis of one warrant for every eight shares held after the bonus issue.

Dialog to acquire Indian firm for RM7.88m

KUALA LUMPUR:'' DIALOG GROUP BHD []'s unit has proposed to acquire a 51% stake in India's Anewa Engineering Private Ltd for RM7.88 million which would further provides access to new customers in various parts of the world namely in the Middle East and India.

It said on Thursday, July 14 Anewa is an outsourcing company that provides engineering design to customers, mainly multinational companies in India, Middle East and Southeast Asia in the oil, gas and petrochemical industry.

Under the exercise, its unit Dialog Systems (Asia) Pte Ltd will finance the purchase consideration from its own funds and/or borrowings.

'The proposed transaction is expected to be completed by end of August 2011,' it said.

Anewa has about 120 employees. Dialog said the proposed acquisition would strengthen its engineering capabilities by injecting a pool of skilled and experience manpower to support its rapidly growing business locally and globally.

'The proposed transaction is also in line with Dialog's strategy of focusing and growing its core businesses, penetrating new markets and investing in businesses with long term sustainable income,' it said.

Hua Yang proposes 1-for-3 bonus issue

KUALA LUMPUR: HUA YANG BHD [] has proposed a bonus issue of 36 million shares on a one-for-three basis.

The company said on Thursday, July 14 it expects the corporate exercise to be completed in the second half of 2011.

Based on the paid-up share capital of RM108 million comprising of 108 million shares, the bonus issue would involve the issuance of 36 million shares.

'The proposed bonus issue aims to reward the existing shareholders of the company for their loyalty and continuing support, by enabling them to have a greater participation in the equity of the company in terms of number of shares held, whilst maintaining their percentage of equity interest,' it said.

Hua Yang also said the proposed bonus Issue was expected to improve the trading liquidity of the shares and increase the capital base.

Daya Materials gets RM120m job from B. Braun

KUALA LUMPUR: DAYA MATERIALS BHD [] has secured a RM120 million contract from B Braun Medical Industries Sdn Bhd to build a new six-storey building in Bayan Lepas, Penang.

It said in a filing Thursday, July 14 Daya said its wholly-owned subsidiary Daya CMT Sdn Bhd had been awarded the contract on June 22, 2011.

The company said the project involved the CONSTRUCTION [] of one storey of utility plant rooms, three storeys of multi-level parking and a two storey multi-purpose building.

Daya said the project was expected to be completed within 12 months by July 2012.

It said the project would be financed through internally generated funds and bank borrowings, adding that the project was expected to contribute positively to its earnings.

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TheEdge Billion Ringgit Club 2011 Corporate Awards

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COMPANY OF THE YEAR

QL RESOURCES BHD []

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COMPANIES WITH MORE THAN RM10 BILLION MARKET CAPITALISATION

BEST PERFORMING STOCK

Highest returns to shareholders over three years

PETRONAS DAGANGAN BHD []

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HIGHEST PROFIT GROWTH COMPANY

Highest growth in profit before tax over three years

GENTING BHD []

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MOST PROFITABLE COMPANY

Highest return on equity over three years

British American Tobacco Malaysia Bhd

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CONSTRUCTION [] SECTOR

BEST PERFORMING STOCK

Highest returns to shareholders over three years

MUDAJAYA GROUP BHD []

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HIGHEST PROFIT GROWTH COMPANY

Highest growth in profit before tax'' over three years

Mudajaya Group Bhd

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MOST PROFITABLE COMPANY

Highest return on equity over three years

Mudajaya Group Bhd

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CONSUMER PRODUCTS SECTOR

BEST PERFORMING STOCK

Highest returns to shareholders over three years

GUAN CHONG BHD []

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HIGHEST PROFIT GROWTH COMPANY

Highest growth in profit before tax over three years

Guan Chong Bhd

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MOST PROFITABLE COMPANY

Highest return on equity over three years

British American Tobacco Malaysia Bhd

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FINANCE SECTOR

BEST PERFORMING STOCK

Highest returns to shareholders over three years

MALAYSIA BUILDING SOCIETY BHD []

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HIGHEST PROFIT GROWTH COMPANY

Highest growth in profit before tax'' over three years

Malaysia Building Society Bhd

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MOST PROFITABLE COMPANY

Highest return on equity over three years

PUBLIC BANK BHD []

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INDUSTRIAL PRODUCTS SECTOR

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BEST PERFORMING STOCK

Highest returns to shareholders over three years

SUPERMAX CORPORATION BHD []

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HIGHEST PROFIT GROWTH COMPANY

Highest growth in profit before tax over three years

Supermax Corporation Bhd

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MOST PROFITABLE COMPANY

Highest return on equity over three years

COASTAL CONTRACTS BHD []

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PLANTATION [] SECTOR

BEST PERFORMING STOCK

Highest returns to shareholders over three years

Kulim (Malaysia) Bhd

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HIGHEST PROFIT GROWTH COMPANY

Highest growth in profit before tax over three years

Kulim (Malaysia) Bhd

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MOST PROFITABLE COMPANY

Highest return on equity over three years

IOI CORPORATION BHD []

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PROPERTY AND REIT SECTORS

BEST PERFORMING STOCK

Highest returns to shareholders over three years

MAH SING GROUP BHD []

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HIGHEST PROFIT GROWTH COMPANY

Highest growth in profit before tax over three years

BANDAR RAYA DEVELOPMENTS BHD []

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MOST PROFITABLE COMPANY

Highest return on equity over three years

SUNWAY CITY BHD []

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TRADING/SERVICES, HOTEL, IPC AND TECHNOLOGY [] SECTORS

BEST PERFORMING STOCK

Highest returns to shareholders over three years

KPJ HEALTHCARE BHD []

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HIGHEST PROFIT GROWTH COMPANY

Highest growth in profit before tax over three years

DKSH Holdings Malaysia Bhd

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MOST PROFITABLE COMPANY

Highest return on equity over three years

BERJAYA SPORTS TOTO BHD []

Pos Malaysia appoints Mohd Khamil as chairman

KUALA LUMPUR: POS MALAYSIA BHD [] has appointed Datuk Seri Mohd Khamil Jamil as its new chairman to replace Tan Sri Dr Aseh Che Mat who completed his tenure and did not seek reappointment.

Mohd Khamil is currently the group managing director of DRB-HICOM BHD [], a position he has held since 2006.

He holds a Bachelor of Laws (Honours) from the University of London and is a Barrister-at-Law at Gray's Inn, England, and was called to the English Bar in 1983.

In a statement Thursday, July 14, Pos Malaysia said Mohd Khamil began his executive career at Bank Bumiputra Malaysia Bhd in August 1980, where he served until December 1989.

He was called to the Malaysian Bar in September 1990, following which he became a practising partner of several legal firms before venturing into business in 2001, it said.

Mohd Khamil also sits on the boards of EDARAN OTOMOBIL NASIONAL BHD [], HICOM Holdings Bhd, HICOM Bhd, Horsedale Development Bhd, Bank Muamalat Malaysia Bhd, Uni.Asia General Insurance Bhd, Uni.Asia Life Assurance Bhd and several private limited companies.

He also serves as one of the Trustees and Exco Member of the Perdana Leadership Foundation since March 2006.

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