#Stocks to watch* Jotech, AIC, AutoV, Chin Teck, Genting, Tasek

KUALA LUMPUR: ''The local stock market is expected to remain on tenterhooks in the week beginning Monday, Aug 1 on emerging worries of a potential double-dip global recession.

With just days before the US runs out of cash to pay all of its bills, a deadlock in reaching a consensus on the world's largest economy's debt ceiling has just about rattled most global markets.

Furthermore, rating agency Moody's put Spain on review for a possible downgrade on Friday, adding to concerns that a Greek rescue package has done little to halt the spread of Europe's debt crisis.

Given the slew of negative newsflow, trading at the local stock market could remain sluggish and the FBM KLCI could well extend its losses after dropping more than 30 points in July.

Meanhile, stocks that could be in focus on Monday are JOTECH HOLDINGS BHD [], AIC CORPORATION BHD [] and AutoV Corporation Bhd, Chin Teck PLANTATION []s and TASEK CORPORATION BHD [].

Jotech, AIC Corp and AutoV resume trade following Temasek Formation Sdn Bhd (TFSB), a special purpose company, proposing to acquire their entire interests including assets and liabilities for a total of RM696 million.

TFSB, which is owned by Jotech executive chairman Datuk Goh Tian Chuan, will then merge the companies to create a larger entity.

Under the exercise, the company is offering 18 sen for each Jotech share, RM1.80 for each AIC share and RM2.38 per AutoV share.

Based on the above, the proposed swap ratios are three new TFSB shares for every two existing Jotech shares; 15 new TFSB shares for every 1 existing AIC share and 119 new TFSB shares for every six AutoV shares.

Goh last Friday said the merger would create a larger manufacturing group with diverse customer portfolios in a wide range of industries comprising medical and life sciences, automotive industry, the electrical and electronics industry (including the semiconductor industry).

Chin Teck declared a second gross interim dividend 30 sen per share in respect of the financial year ending Aug 31, to be paid on Aug 26.

Its net profit for the third quarter ended May 31, 2011 surged to RM24.18 million from RM10.89 million a year ago. Revenue for the quarter increased to RM45.04 million from RM29.62 million in 2010.

Tasek could see continued interest after it declared a gross interim dividend of 20 sen per share for FY ending'' Dec 31, 2011 after its net profit for the second quarter ended June 30, 2011 rose to RM24.21 million from RM23.11 million a year earlier.

Moody's expects to affirm US rating, negative outlook

NEW YORK: The United States will likely keep its top-notch credit rating from Moody's for now, despite the "limited magnitude" of the deficit reduction plans being discussed in Washington, the ratings agency said on Friday.

But Moody's warned in a report that the confirmation of the Aaa credit will likely come with a negative outlook, meaning there is a risk of a downgrade in the medium term.

That decision will depend on the U.S. economic performance in 2012 and prospects for future deficit-reduction measures, Moody's analyst Steven Hess said.

"If we're convinced that the economy takes off in 2012 and shows very strong growth, that makes the whole process of fiscal consolidation somewhat easier," Hess told Reuters in an interview.

The report from Moody's came four days before the United States says it will run out of cash to pay all of its bills.

In Washington, the House passed a deficit plan that likely will die in the Senate, and President Barack Obama told lawmakers before the vote to stop wasting time and find a way "out of this mess."

Moody's issued the report to clarify its position on the U.S. debt situation, its Chief Risk Officer Richard Cantor said in the same interview.

"Sometimes there is confusion and all the ratings agencies are grouped together," he said.

Standard & Poor's has threatened to cut U.S. ratings in the next few months if the lawmakers fail to come up with a meaningful plan to cut the nation's deficit.

Both agencies seem to agree that deficit-reduction measures of around $4 trillion would be enough for the United States to avoid a rating downgrade.

The difference is that, while S&P has indicated it may downgrade the United States by mid-October if it doesn't see a meaningful deficit-reduction plan in place now, Moody's is willing to give the government more time before making that decision.

PRIORITIZING DEBT PAYMENTS

Moody's expects the government will continue to honor bond payments even if lawmakers fail to raise the debt ceiling before Aug. 2.

"If the debt limit is not raised before Aug. 2, we believe that the Treasury would give priority to debt service payments and could thus postpone a potential debt default for a number of days," Moody's said in its report.

"Revenues would be more than adequate for some period of time to meet those payments, although other outlays would be severely reduced as a result."

The ratings agency warned, however, that a debt default would likely lead to a rating downgrade even if it was "swiftly cured and investors suffered no permanent losses."

Lawmakers in Washington were set to work through the weekend, with a recently-passed plan by Republican House of Representatives Speaker John Boehner expected to die in the Democratic-controlled Senate on Friday night.

Wall Street on Friday ended its worst week in a year, and one equity strategist said the stock market's direction on Monday will rely on the weekend's outcome.

"It exclusively is a function of what does Congress do over the next 48 hours," said Phil Orlando, chief equity market strategist at Federated Investors. "If Speaker Boehner is able to get a deal through over the next two days, we trade higher. If we get nothing constructive and a series of more dueling press conferences we probably open lower."

Moody's noted that the first interest payment of $31 billion on U.S. Treasury debt is not due until Aug. 15.

"This is the first date that a default on bonds could occur," the report said, highlighting that, this year, August is the month when the ratio of interest payments to incoming revenues is the highest.

The agency sees less chance of a default on Aug. 4, when T-bills worth $59 billion mature because it is unlikely that the Treasury would not be able to find buyers to refinance them.

"Should the Treasury be unable to find buyers for an equivalent amount, a default might occur. This scenario seems extremely unlikely, given the role of the T-bill market in both domestic and global financial markets," Moody's said. ' Reuters

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Moody's threatens Spain rating cut

MADRID: Rating agency Moody's put Spain on review for a possible downgrade on Friday, adding to concerns that a Greek rescue package has done little to halt the spread of Europe's debt crisis. Moody's move to place the Aa2 government bond rating on review cited concerns over growth and said funding costs would continue to be high in the wake of euro zone leaders' bolder moves to curb the Greek crisis last week.

That added to a sense that Spain - and Italy - are still firmly in the firing line, and the euro and Spanish bond prices fell in response.

Particular focus rested on Spain's regional governments, many of whom are struggling with burgeoning debt loads after a decade of reckless spending. Analysts fear control over regions' debt loads is slipping out of the central government's grasp.

Regional authorities will miss their collective budget deficit target by up to 0.75 percent of gross domestic product (GDP), Moody's said, hampering the central government's program of austerity to reduce the overall shortfall.

"Regional governments' finances may prove difficult to control due to structural spending pressures, particularly in the healthcare sector," Moody's said in a release.

International investors are concerned the euro zone's fourth largest economy, hamstrung by anemic growth rates and high unemployment, will fail to put its fiscal house in order and need a Greek-style bailout. Nerves about that have sent bond yields to their highest level in over a decade.

Moody's current rating for Spain is in line with fellow rating agency S&P's AA setting, while Fitch Ratings has the country one notch higher at AA+

PERMANENT BURDEN

The euro fell more than 40 pips against the dollar in response and Spanish bond yields rose. Spain's cost of borrowing over ten years is now 6.11 percent compared to the 7 percent level broadly seen as unsustainable for the euro zone governments at risk in the crisis.

The country's rating remains at a high investment grade, far above those of Greece, Portugal and Ireland.

But while Moody's said any cut for Spain would likely be limited to one notch, it said the Greek package had signaled a clear shift in risk for bondholders across the euro zone.

"The trigger is that the (Greek) deal last week has not really rebuilt confidence across the euro zone so Spain is still on their radar screens with costs rising," said Giada Giani, analyst at U.S. bank Citi.

The Spanish Treasury said the external arguments supporting the ratings review relied excessively on short-term market developments in a letter sent to investors on Friday morning and seen by Reuters.

"Moody's assumes that the current high yields that have been generated by the resolutions around the Greek crisis will become a permanent burden on non-AAA sovereign funding costs," the Treasury said.

Spanish bank shares also fell over 2.4 percent as Moody's placed the debt and deposit ratings of five Spanish banks, including the euro zone's biggest bank Santander, on review for downgrade, in line with the sovereign.

RESCUE FUND CONCERNS

While the Greek rescue package set a precedent for private sector participation in future restructuring in the euro area, Moody's highlighted concerns about when or how the euro zone's rescue fund (EFSF) would be able to engage more strongly in battling the crisis.

"The package has not relieved market concerns over the position of such sovereigns because (i) it sets a precedent for private sector participation in future sovereign debt restructurings in the euro area, and (ii) while an expansion of powers has been proposed for the EFSF, it is not clear when the powers will be implemented," the agency said.

Moody's placed the Aa2 rating of Spain's bank restructuring fund, the FROB, on review for possible downgrade as its debt is underwritten by the sovereign.

The agency also downgraded the ratings of six Spanish regions reflecting the deterioration in their fiscal and debt positions. The regions were Castilla-La Mancha, Murcia, Valencia, Catalonia, Andalusia and Castilla y Leon.

It placed a further seven regional debt ratings under review for downgrade.

The Spanish government has set a deficit target of 1.3 percent of gross domestic product for the 17 regions for this year and next, but some of their new governors say this will be impossible due to previous leaders' fiscal mismanagement.

"That the regions are going to overshoot is clear," said Antonio Garcia Pascual, chief economist for Southern Europe at Barclays Capital in London.

"The question will be whether the central government can create a buffer which is big enough to offset that effect, and that is going to be complicated. In the fourth quarter all the skeletons will start to come out of the closet."

According to a Deutsche Bank study, if all the regions with a deficit above 3 percent in 2010 follow Catalonia's lead in missing the deficit target by a third, it would inflate the overall public deficit by 0.64 percentage points.

The government is aiming for an overall public deficit of 6.0 percent of GDP this year, compared to 9.2 percent of GDP in 2010 -- something that also largely depends on growth.

Data on Friday showed Spain's unemployment inched down to 20.9 percent in the second quarter, remaining by far the highest in the EU.

"There seems to be an indication that there's some stabilization, but the key point is the labor market remains extremely distressed," economist at RBS Silvio Peruzzo said. - Reuters

Chin Teck 3Q net profit jumps to RM24.18m, declares 30 sen interim dividend

KUALA LUMPUR: CHIN TECK PLANTATION []S BHD [] net profit for the third quarter ended May 31, 2011 surged to RM24.18 million from RM10.89 million a year earlier

It said on Friday, July 29 that its revenue for the quarter increased to RM45.04 million from RM29.62 million in 2010.

Earnings per share was 26.47 sen while net assets per share was RM6,52.

The company declared a second gross interim dividend 30 sen per share in respect of the financial year ending Aug 31, to be paid on Aug 26.

For the nine months ended May 31, Chin Teck's net profit rose to RM54.17 million from RM35.43 million in 2010, on the back of revenue RM104.97 million.

Reviewing its performance, Chin Teck said the average selling prices (ASP) of fresh fruit bunch (FFB), crude palm oil (CPO) and palm kernel were substantially higher year-on-year.

Other income was substantially higher due mainly to gain on foreign exchange and increase in interest income, it said.

On its prospects, Chin Teck said the ASP of FFB, CPO and palm kernel prices were expected to remain steady in the fourth quarter ending Aug 31.

'Overall, the average selling prices of FFB, CPO and palm kernel would be higher than those in the previous financial year,' it said.

FBM KLCI falls 30.26 points in July

KUALA LUMPUR: The FBM KLCI lost a total of 30.26 points in July and closed below the 1,550-point level on the final trading day of the month, in line with the gloomy sentiment at global markets.

Regional markets were in the red at the closing while European markets opened in negative territory as a slew of less than encouraging news flow and a looming debt crisis in the US took its toll on the markets.

The FBM KLCI fell 3.10 points to close at 1,548.81, weighed by losses at select blue chips.

Losers beat gainers by 426 to 306, while 315 counters traded unchanged. Volume was 1.11 billion shares valued at RM1.72 billion.

At the regional markets, Japan's Nikkei 225 fell 0.69% to 9,833.03, Taiwan's Taiex lost 1.40% to 8,644.18, South Korea's Kospi fell 1.05% to 2,133.21, Hong Kong's Hang Seng Index was down 0.58% to 22,440.25, the Shanghai Composite Index declined 0.26% to 2,701.73 and Singapore's Straits Times Index shed 0.59% to 3,186.26.

Among the decliners, Nestle fell 58 sen to RM47.10, MISC down 29 sen to RM7.45, Dutch Lady and Tradewinds 20 sen each to RM19 and RM9.60, Carlsberg 18 sen to RM7.35, KYM 12 sen to RM1.82, Yinson 11 sen to RM2.20, NSOP 10 sen to RM5.20, SCIB 9.5 sen to 56.5 sen and CIMB four sen to RM8.27.

Ingenuity Solutions was the most actively traded counter with 101.5 million shares done. The stock fell 1.5 sen to 5 sen. Other actives included Dutaland shares and warrants, CIMB, Telekom, Wijaya, DVM and MRCB.

Among the gainers, United PLANTATION []s added 62 sen to RM20.62, Ann Joo 29 sen to RM2.99, Tasek 24 sen to RM8, Petronas Gas and Panasonic up 20 sen each to RM13.48 and RM24.40, Advanced Packaging 18 sen to RM1.31 while MRCB added 15 sen to RM2.55.

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Westports' Ruben named Emerging CEO of the Year

KUALA LUMPUR: Westports Malaysia chief executive officer Ruben Emir Gnanalingam has been named Emerging CEO of the Year at the Global Leadership Awards 2011.

He was presented the award at an event organised recently by The Leaders Magazine and endorsed by the American Leadership Development Association, the American Institute of Business Psychology and the Leadership Gurus International UK.

In a statement Friday, July 29, Westports said the ceremony honored the achievements of various high profile business leaders in Malaysia and their immense contributions to the country's economy.

Award winners were carefully selected by a panel of highly experienced and qualified judges who are experts in their respective fields, it said.

The Emerging CEO of the Year is awarded to a CEO who guides a company through a difficult period, managing to continue improvements, bring about an innovative change in the market, improve the services offered to customers and ensure the welfare and performance of employees, it said.

Ruben attributed the award to all employees at Westports and said they shared common goals and thrived in a culture where everyone desired the organisation to excel.

'Hence at Westports, selecting the right people is a key element, while retaining them is just as important,' he said.

Shah Hakim appointed Scomi Engineering CEO

KUALA LUMPUR: Shah Hakim Zain has been appointed chief executive officer of SCOMI ENGINEERING BHD [] effective Aug 1, 2011, replacing Syahrunizam Samsudin who has resigned from the position.

In a filing Friday, July 29, Scomi Engineering said Shah Hakim started his career as an auditor with Ernst & Young and was subsequently promoted as consulting manager, responsible for servicing large corporations.

He was then appointed as executive director of a regional packaging manufacturer in 1992, with direct operational responsibility, it said.

Shah Hakim is currently the group chief executive officer of SCOMI GROUP BHD [], was appointed to the board of Scomi Engineering on Dec 15, 2005.

MAS picks Md Nor Md Yusof as chairman

KUALA LUMPUR: MALAYSIAN AIRLINE SYSTEM BHD [] has appointed its former managing director Tan Sri Md Nor Md Yusof as its chairman with effect from August 1, 2011.

In a filing Friday, July 29, MAS said Md Nor was appointed as director of Khazanah Nasional Bhd on April 1, ''and currently serves as the chairman of its executive committee.

'He also sits on the Boards of several companies and institutions including Malaysian Agrifood Corporation Bhd, Pelaburan Hartanah Bhd and is also a Trustee of Yayasan Khazanah,' it said.

Md Nor was appointed to the board of CIMB Group Holdings Bhd as director in June 2006 and assumed the post of chairman on July 31, 2006. He is also chairman of CIMB Group Sdn. Bhd.

Md Nor spent 18 years of his working career with the CIMB Group, and more notably as president and chief executive officer of Bank of Commerce (M) Berhad (now known as CIMB Bank).

He completed his term as executive chairman of the Securities Commission on March 31, 2006.

Prior to that appointment, he was the MAS managing director after serving a period as advisor to the Ministry of Finance.

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#Update* Jotech, AIC and AutoV in RM696m merger plan

KUALA LUMPUR: Temasek Formation Sdn Bhd (TFSB), a special purpose company, is acquiring the entire interests including assets and liabilities of JOTECH HOLDINGS BHD [], AIC CORPORATION BHD [] and AutoV Corporation Bhd for a total of RM696 million.

TFSB, which is owned by Jotech executive chairman Datuk Goh Tian Chuan, will then merge the companies to create a larger entity.

Under the exercise, the company is offering 18 sen for each Jotech share, RM1.80 for each AIC share and RM2.38 per AutoV share.

Based on the above, the proposed swap ratios are 3 new TFSB shares for every 2 existing Jotech shares; 15 new TFSB shares for every 1 existing AIC share and 119 new TFSB shares for every 6 AutoV shares.

Goh said the execution of the merger would create a larger group in terms of market capitalisation, streamline the multi-tiered shareholding structure and unlock potential intrinsic values of the three companies.

'The full value of the business potential of Jotech, AIC and AutoV is expected to be accurately reflected at TFSB level.

'We see good value in these companies and are optimistic about their prospects,' he said at a briefing on Friday, July 29.

He said the merger would create a larger manufacturing group with diverse customer portfolios in a wide range of industries comprising medical and life sciences, automotive industry, the electrical and electronics industry (including the semiconductor industry).

In addition, the merged group under TFSB will not only have businesses in Malaysia, its reach will also span across countries and regions to countries such as China, Taiwan and Indonesia, he said.

Goh said that post the merger exercise, the group would have an improved balance sheet position, better financial strength and resources to realise its full potential and further improve the image and credibility of the respective business segments of the three companies.

'This stronger financial footing further augments the merged group's ability to access to a wide array of lucrative business opportunities as well as improve its ability to raise funds in the debt and equity capital markets.'

'The merger will be one of the largest amalgamations of manufacturing firms to be undertaken in Malaysia and may spearhead the long awaited consolidation in the manufacturing industry in Malaysia,' he said.

Jotech specialises in the stamping of metal parts for electronics products ranging from audio visual, computer network, and printer to automotive components for motorcycle and motor vehicle and oil palm PLANTATION [] business.

AIC is principally involved in the assembly and test of integrated circuit chips and precision tooling and automation.

AutoV is a Tier-1 supplier of automotive components to Proton, Perodua, Honda, Toyota and other local carmakers.

Asian markets retreat on US debt ceiling impasse

KUALA LUMPUR: Asian markets retreated on Friday, July 29 as US stocks fell overnight with US lawmakers indicating that they were no closer to reaching an agreement to increase the debt ceiling and avoid default.

Urgent efforts to avoid an unprecedented debt default hit another snag when some rebel Republican lawmakers refused to back a budget deficit plan proposed by their own congressional leaders, who put off a vote scheduled for Thursday night, according to Reuters.

The FBM KLCI pared down some of its losses at the mid-day break as it remained in negative territory for the third day running.

The index fell 4.21 points to 1,547.70, weighed by losses including at MISC, KLK, BAT and PPB.

Losers beat gainers by 382 to 213, while 284 counters traded unchanged. Volume was 537.73 million shares valued at RM635.03 million.

The ringgit weakened 0.24% to 2.9552 versus the US dollar; crude palm oil futures for the third month delivery fell RM8 per tonne to RM3,108, crude oil slipped 25 cents a barrel to US$97.19 while gold fell US$1.45 an ounce to US$1,614.50.

At the regional markets, Japan's Nikkei 225 fell 0.46% to 9,856.16, Hong Kong's Hang Seng Index lost 0.73% to 22,407.01, the Shanghai Composite Index down 0.47% to 2,696.13, Taiwan's Taiex fell 0.90% to 8,688.62, South Koreas' Kospi down 0.78% to 2,139.13 while Singapore's Straits Times Index shed 0.23% to 3,182.48.

At Bursa Malaysia, MISC fell 22 sen to RM7.52, Tradewinds 21 sen to RM9.59, Tahps 20 sen to RM4.30, KLK 18 sen to RM21.58, BAT 12 sen to RM46.24, Far East and KNM nine sen each to RM7.11 and RM1.85, PPB eight sen to RM17.22 while UMS and BLD PLANTATION []s fell seven sen each to RM1.65 and RM6.35.

Among the gainers, United Plantations added 50 sen to RM20.50, Panasonic 30 sen to RM24.50, Tasek 24 sen to RM8, Genting 12 sen to RM10.80 and Petronas Dagangan 10 sen to RM17.94.

Actives this morning included Dutaland shares and warrants, Ingenuity Solutions, JAKS, DBE Gurney and Ramunia.

#Flash* Jotech, AIC and AutoV to merge

KUALA LUMPUR: Special purpose company, Temasek Formation Sdn Bhd has proposed to acquire the entire interests including all assets and liabilities of JOTECH HOLDINGS BHD [], AIC CORPORATION BHD [] and AutoV Corporation Bhd for RM696 million with a view to merger the companies to create a larger entity.

Its chairman Datuk Goh Tian Chuan said the company plans to create a larger group in terms of market capitalisation, streamline the multi-tiered shareholding structure as well as unlock potential intrinsic values of the target companies.

He said the merger wouldl be executed via the issuance of new Temasek Fomation shares to existing shareholders of AIC, Jotech and AutoV as well as to warrant shareholders of these companies respectively.

Dutaland shares, warrant active on plantation sale

KUALA LUMPUR: DUTALAND BHD [] securities were actively traded on Friday, July 29 after its unit Duta PLANTATION []s sold 11,977.9ha of oil palm plantation to IOI Corporation for RM830 million.

At 11.10am, Dutaland warrants rose half a sen to 17 sen with 45.92 million units done, while the shares edged up half a sen to 62 sen with 27.29 million shares traded.

Dutaland said on July 28 that Dutaland Plantations' unit Pertama Land & Development was selling the plantation to IOI Corp's indirect wholly-owned unit Sri Mayvin Plantation.

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AmResearch maintains Buy on WCT

KUALA LUMPUR: AmResearch has maintained its Buy call on WCT BHD [] with an unchanged fair value of RM3.85 after the company's wholly-owned subsidiary WCT CONSTRUCTION [] Sdn Bhd secured an earthwork contract with Vale Malaysia Manufacturing Sdn Bhd.

In a note Friday, July 29, AmResearch said that this was the first major contract that WCT has secured this year.

The award is for Phase 1A (Stage 1) of Vale's iron ore distribution centre and pelletisation plant project in Teluk Rubiah, Perak.

The total contract value is estimated at RM115mil ' and is to be completed in April 2013.'' Scope of works includes earthwork, drainage, roads & pavement, slope protection works as well as temporary sedimentation ponds at Vale's.

'We have maintained our earnings forecast for FY11F ' as this new job forms part of our new orderbook assumptions of RM2 billion.

'Most importantly, we believe WCT's early success would provide the impetus for the group to be in a competitive position to secure more jobs for Vale's massive project,' it said.

FBM KLCI extends losses for third consecutive day

KUALA LUMPUR: The FBM KLCI fell for the third consecutive day on Friday, July 29 in line with the jittery investor sentiment at regional markets following the weaker overnight close at Wall Street.

Investors at Asian markets exercised caution, as the deadlock over the raising of the US debt ceiling remains a thorny issue that has kept many on the sidelines and channeling funds from the equity markets into less riskier assets.

The FBM KLCI slipped 4.29 points to 1,547.62 at mid-morning, weighed by losses at select blue chips.

Losers led gainers by 218 to 160, while 199 counters traded unchanged. Volume was 260.07 million shares valued at RM168.18 million.

At the regional markets, Japan's Nikkei 255 edged down 0.08% to 9,893.71, Taiwan's Taiex fell 0.58% to 8,716.57 and South Korea's Kospi shed 0.18% to 2,151.94.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients July 29 said that due to the US markets' fall last night, there would be some initial selling activities n the local bourse today.

'Some futile bargain hunting activities may emerge later to cushion the market's initial fall.

'However, we see a longer-term decline for the local index,' he said.

KLK was the top loser at mid-morning and fell 24 sen to RM21.50; MISC lost 15 sen to RM7.59, Hong Leong Bank 14 sen to RM13.18, Far East nine sen to RM7.11, PPB and BAT down eight sen to RM17.22 and RM46.28, UMS seven to RM1.65, IOI Corp six sen to RM5.12 and RHB Capital five sen to RM9.06.

Dutaland shares and warrants were actively traded after IOI Corp yesterday proposed to acquire 11,977ha of oil palm PLANTATION [] from Dutaland's subsidiary for RM830 million.

The warrants rose one sen to 17.5 sen with 36.58 million units done, while the shares added one sent to 62.5 sen.

Other actives included Ingenuity Solutions shares and warrants, JAKS and Sinotop.

Gainers included Panasonic, HLS Corp, Tasek, HLFG, Genting and Lafarge Malayan Cement.

Maybank IB maintains Buy on MAHB

KUALA LUMPUR: Maybank IB Research has maintained its Buy call on Malaysia Airports Holdings Bhd and said the company's 1H2011 core net income of RM205 million was within expectation, adding it 43% of its full-year forecast and 53% of consensus.

The research house in a note Friday, July 29 said 2H is typically much stronger than 1H.

'These are impressive results driven by strong traffic numbers, high utilization rates and buoyant retail business.

'MAHB is our top aviation pick as it is well placed to enjoy the current air travel up-cycle. Maintain Buy, with an unchanged target price of RM7.55 per share DCF-based,' it said.

WCT rises on RM115.09m job from Vale

KUALA LUMPUR: WCT BHD [] shares advanced on Friday, July 29 after it secured a RM115.09 million contract from Vale Malaysia Manufacturing Sdn Bhd (VMM) for earthwork services in Teluk Rubiah, Perak.

At 9,05am, WCT added two sen to RM3.08 with 61,000 shares done.

It said on Thursday, July 28 that its unit WCT CONSTRUCTION [] Sdn Bhd had been awarded the project comprising earthwork, drainage, roads and pavement, slope protection works and temporary sedimentation ponds at VMM's Project - Phase 1A (Stage 1), Teluk Rubiah,

Genting edges up after RAM Ratings reaffirms corporate credit ratings

KUALA LUMPUR: GENTING BHD [] shares edged up on Friday, July 29 after RAM Ratings on Thursday reaffirmed the respective long- and short-term corporate credit ratings of Genting at AAA and P1.

At 9.15am, Genting added four sen to RM10.72 with 86,400 shares traded.

RAM Ratings had also concurrently reaffirmed the enhanced long-term AAA(s) rating of GB Services Bhd's (GB Services) RM1.6 billion Medium-Term Notes Programme (2009/2024).

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Tasek rises on interim dividend plan

KUALA LUMPUR: TASEK CORPORATION BHD [] shares rose on Friday, July 29 after it declared a gross interim dividend of 20 sen per share in respect of the financial year ending Dec 31, 2011 after its net profit for the second quarter ended June 30, 2011 rose to RM24.21 million from RM23.11 million a year earlier.

At 9.15am, Tasek rose 14 sen to RM7.90.

It said on Thursday, July 28 that its revenue for the quarter, however, declined marginally to RM139.57 million from RM139.84 million in 2010. Earnings per share was 19.52 sen. Net assets per share was RM7.62.

For the six months ended June 30, Tasek's net profit rose 10.1% to RM47.61 million from RM43.24 million in 2010, although revenue dipped to RM265.96 million from RM269.31 million.

Unisem dips in early trade; MIDF Research cuts TP to RM1.60

KUALA LUMPUR: UNISEM (M) BHD [] shares retreated in early trade on Friday, July 29 after its net profit for the second quarter ended June 30l, 2011 fell 75% to RM12.03 million from RM48.05 million a year earlier due mainly to a decline in revenue.

At 9.25am, Unisem shed two sen to RM1.38 with 168,100 shares done.

It said on Thursday, July 28 that its revenue fell 14.5% to RM307.52 million from RM359.50 million in 2010.

MIDF Research maintained its Buy call on Unisem and said that as expected, Unisem posted a disappointing 1H11 net profit of RM17.4 million, a 80.6% year-on-year decline.

'This made up only 11.3% and 18.4% ours and consensus' full year forecasts respectively

'We are revising downwards our FY11 and FY12 forecasts by 59.9% and 30.9% taking into account the lower orders, stronger ringgit and higher cost. Rolling our valuation to FY12, we arrive at a revised target price of RM1.60 by pegging FY12 EPS to 8.5 times PER which is its 5 year average PER,' it said.

U.S. may unveil post-Aug 2 plan as soon as Friday

WASHINGTON: The U.S. Treasury will unveil a plan as soon as Friday evening on how the government will function and pay its bills if it looks like Congress will not raise the debt ceiling in a timely manner, an administration official said on Thursday.

Republican and Democratic lawmakers are scrambling to broker a deal to raise the country's $14.3 trillion debt cap before Tuesday, when the U.S. Treasury will no longer be able to borrow funds to meet all of its obligations.

The administration official said the timing of Treasury's announcement depends on whether Congress is making progress to raise the debt ceiling. ' Reuters

Nikkei dips as US still in deadlock on debt woes

TOKYO: The Nikkei stock average slipped on Friday as the ongoing deadlock over raising the U.S. debt ceiling stokes risk aversion that could send the yen higher, taking the shine off a budding recovery in Japanese corporate earnings.

The benchmark Nikkei fell 0.1 percent to 9,888.77 while the broader Topix index fell 0.2 percent to 846.86. ' Reuters

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ECM Libra upgrades IOI Corp to Trading Buy, ups TP to RM6.11

KUALA LUMPUR: ECM Libra Research has upgrading IOI Corporation from Hold to Trading Buy as the research house is positive on the group's initiative to boost hectarage.

IOI Corp on July 28 proposed the acquisition of 11,977ha of oil palm PLANTATION [] land for a total cash consideration of RM830 million (RM69,294/ha) from a wholly owned subsidiary of DUTALAND BHD [].

The acquisition comprises of all assets including buildings, fixtures & fittings and motor vehicles.

ECM Libra in a note Friday, July 29 said that furthermore, there could be positive news from the property segment from land banking activities like the recent purchase into South Beach PROPERTIES [] in Singapore.

'Our target price adjusts to RM6.11 from RM5.96 previously following the upgrade in earnings and also from rolling over valuations to FY12 from CY11 previously.

'We peg EPS to IOI's historical average forward PE of 20 times,' it said.

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US stocks slip, bonds rise ahead of debt vote

NEW YORK: U.S. stocks turned lower and bond prices rose on safe-haven demand on Thursday as investors expressed skepticism that a key vote in Congress would lead to a deal to avoid a U.S. default.

A rally on Wall Street driven by surprisingly strong economic data faded late in the session as buyers kept to the sidelines while lawmakers in Washington tried to hash out an agreement on the deficit. The S&P 500 has fallen every day so far this week.

The dollar climbed to a session high against the Swiss franc as investors awaited a vote on a deficit-cutting plan presented by Republican House Speaker John Boehner.

The vote was scheduled for after the markets' close.

The Swiss franc had risen to a record high against the dollar of 0.79900 franc, but the dollar gained and last traded at 0.80180, up 0.1 percent.

"During the course of the day, it became clear that even if Boehner does get the vote, when it's turned over to the Senate, the Senate is going to reject it," said Quincy Krosby, market strategist at Prudential Financial in Newark, New Jersey.

The price of gold, a gauge of fear as investors struggle with the European debt crisis and Washington's inability to come to grips with its fiscal woes, slid as European stock markets turned higher just before their close.

U.S. Treasuries prices rose as credit worries about Europe fed safety demand for U.S. bonds, temporarily pushing aside concern over the potential of a U.S. default.

Benchmark 10-year notes traded 5/32 higher in price to yield 2.96 percent.

The euro was hurt by disappointing demand at an Italian debt auction, sparking worries that Italy, the euro zone's third-biggest economy, is closer to the brink of the debt conundrum plaguing some of its neighbors.

In late afternoon New York trading, the euro was down 0.4 percent at $1.4308,

The Dow Jones industrial average ended down 62.44 points, or 0.51 percent, at 12,240.11. The Standard & Poor's 500 Index was down 4.22 points, or 0.32 percent, at 1,300.67. The Nasdaq Composite Index finished up 1.46 points, or 0.05 percent, at 2,766.25.

The market was up most of the day on data that showed the number of Americans claiming new unemployment benefits last week dropped below the 400,000 level for the first time since early April, a hopeful sign for the anemic U.S. economy.

An unexpected rise in June from the previous month in pending sales of existing U.S. homes also buoyed Wall Street, a day after U.S. stocks suffered their worst day in eight weeks.

Gridlock in debt ceiling talks and a possible downgrade of U.S. credit ratings have weighed on global equities.

MSCI's all-country world stock index fell 0.5 percent to 337.66.

European shares turned positive in late trading on hopes that the bill to cut the U.S. deficit would pass.

The FTSEurofirst 300 index of top European shares rose 0.05 percent to close at 1,089.24 points.

Brent oil pared gains above $118 to trade little changed as a storm heading toward the Gulf of Mexico raised the threat of supply disruption and wary traders awaited the outcome of the vote in Congress.

ICE September Brent crude closed down 7 cents at $117.36.

U.S. crude for September delivery settled 4 cents higher at $97.44 a barrel.

U.S. gold futures for August delivery settled down $1.70 an ounce at $1,613.40. ' Reuters

''

ASIA-Shares to struggle as U.S. debt vote waited

WELLINGTON: Asian stocks are set for another struggle as the uncertainty about the U.S. debt woes and scepticism that a deal will be done to avert a ratings downgrade weighs on sentiment.

The Dow Jones industrial average ended down 0.51 percent and the broader based Standard & Poor's 500 Index was down 0.32 percent, while the tech-laden Nasdaq Composite Index was flat.

The market was buoyed by data showing the number of Americans claiming new unemployment benefits last week fell to its lowest level since early April, while there was an unexpected rise in pending sales of existing U.S. homes.

But the impasse over the U.S. government debt ceiling and the looming Aug. 2 deadline weighed on sentiment.

The House of Representative was to vote on a Republican-led bill to raise the debt limit, as the Democratic-controlled Senate crafted a competing bill, and Democratic leaders said the House bill would be defeated in the Senate.

The CBOE Volatility Index rose 3.3 percent to the highest level since mid-June, with pricing reflecting in an increasing chance of a U.S. credit downgrade.

Asian stocks listed on Wall Street fell 0.42 percent while world stocks, as measured by the MSCI world equity index, eased 0.5 percent.

British shares rose 0.3 percent while European shares were fractionally positive.

The U.S. dollar climbed higher as investors waited to see if the proposed debt deal legislation is passed, while the euro eased on rekindled debt jitters.

Japanese markets, which fell sharply on Thursday to below the 200-day moving average, are seen broadly flat and cautious with Nikkei futures traded in Chicago 30 points below the last closing level in Osaka . Support for the Nikkei is seen around the 65-day moving average 9,720.

Australian stocks are seen softer with share price index futures down 0.1 percent to 4,427, a 36.8 point discount to the close of the underlying S&P/ASX 200 index. ' Reuters

''

Gadang slips into the red, sees tougher year ahead

KUALA LUMPUR: GADANG HOLDINGS BHD [] cautioned that it sees a more challenging year moving forward with the tendering process getting more competitive with lower operating margins after it slipped into the red for the financial year ended May 31, 2011.

The company said on Thursday, July 28 that it posted a net loss of RM9.36 million in the fourth quarter ended May 31 compared to net profit RM3.56 million in 2010, while revenue dipped to RM71.35 million from RM78.31 million.

For the financial year ended May 31, Gadang posted net loss RM4.25 million compared to net profit RM14.87 million in 2010, despite revenue increasing to RM348.32 million from RM270.45 million.

Reviewing its performance, Gadang said the loss was due to higher operating cost in project execution, and poor margin recognised by its CONSTRUCTION [] division.

Gadang also said it recorded bad and doubtful debts and impairment of goodwill of RM11.15 million for the financial period under review.

On its prospects, Gadang said that in view of the challenging market environment going forward, it would focus on projects that could provide adequate margins and stable cash flow.

'Barring unforeseen circumstances, the group expects an improved performance in the next financial year,' it said.

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Tasek declares gross interim dividend of 20 sen per share

KUALA LUMPUR: TASEK CORPORATION BHD [] has declared a gross interim dividend of 20 sen per share in respect of the financial year ending Dec 31, 2011 after its net profit for the second quarter ended June 30, 2011 rose to RM24.21 million from RM23.11 million a year earlier.

It said on Thursday, July 28 that its revenue for the quarter, however, declined marginally to RM139.57 million from RM139.84 million in 2010. Earnings per share was 19.52 sen. Net assets per share was RM7.62.

For the six months ended June 30, Tasek's net profit rose 10.1% to RM47.61 million from RM43.24 million in 2010, although revenue dipped to RM265.96 million from RM269.31 million.

Reviewing its performance, Tasek said the marginal improvement in its results was mainly due to better pricing in the cement market during the current quarter coupled with higher interest income and higher contribution from share of profits from associated companies.

On its prospects, Tasek said the market for cement and ready-mixed concrete were expected to remain profitable in the next quarter.

FBM KLCI pares down losses at close

KUAL A LUMPUR: The FBM KLCI pared down its losses to close above the 1,550-point level on Thursday, July 28, as European markets mostly opened in the red on mounting concerns about a US debt default.

The FBM KLCI fell 6.26 points to close at 1,551.91. The index had earlier fallen to its intra-day low of 1,544.96 points.

Market breadth was negative with losers thumping gainers by 480 to 290 while 274 counters traded unchanged. Volume was 1.06 billion shares valued at RM1.75 billion.

At the regional markets, Japan's Nikkei 225 fell 1.45% to 9,901.35, South Korea's Kospi fell 0.85% to 2,155.85, Taiwan'sTaiex declined 0.57% to 8,767.20 and the Shanghai Composite Index lost 0.54% to 2,708.78 and Singapore's Straits Times Index fell 0.12% to 3,189.85.

Meanwhile, Hong Kong's Hang Seng Index edged up 0.13% to 22,570.74.

On Bursa Malaysia, F&N fell 34 sen to RM19.24, Tasek lost 29 sen to RM7.76, PPB, United PLANTATION []s and BAT lost 20 sen each to RM17.30, RM20 and RM46.36 respectively, Hong Leong Bank 18 sen to RM13.32, HLFG 14 sen to RM13.04, while Fima Corp ''and Bursa fell 13 sen each to RM6.06 and RM7.80.

Among the gainers, Nestle rose 26 sen to RM47.68, Yinson 12 sen to RM2.31, Ingress 11.5 sen to 97 sen, KYM 11 sen to RM2.25, Far East 10 sen to RM7.20 and Ekovest nine sen to RM2.81.

Actives included Bumi Armada warrants, CIMB, Hubline, Olympia, Dutaland and Petronas Chemicals.

WCT gets RM115.09m job from Vale Malaysia

KUALA LUMPUR: WCT BHD [] has secured a RM115.09 million contract from Vale Malaysia Manufacturing Sdn Bhd (VMM) for earthwork services in Teluk Rubiah, Perak.

It said on Thursday, July 28 that its unit WCT CONSTRUCTION [] Sdn Bhd had been awarded the project comprising earthwork, drainage, roads and pavement, slope protection works and temporary sedimentation ponds at VMM's Project - Phase 1A (Stage 1), Teluk Rubiah,

It said the works are expected to be completed in April 2013.

WCT said the contract would contribute positively to its earnings for the financial years 2011, 2012 and 2013.

Unisem 2Q net profit falls 75% to RM12.03m

KUALA LUMPUR: UNISEM (M) BHD [] net profit for the second quarter ended June 30l, 2011 fell 75% to RM12.03 million from RM48.05 million a year earlier due mainly to a decline in revenue.

It said on Thursday, July 28 that its revenue fell 14.5% to RM307.52 million from RM359.50 million in 2010.

Earnings per share was 12.03 sen while net assets per share was RM1.59.

For the six months ended June 30, Unisem's net profit tumbled to RM17.11 million from RM89.68 million in 2010, while revenue fell to RM599.49 million from RM688.76 million.

Reviewing its performance, Unisem said the fall in its quarterly and half-yearly revenue was due to a depreciation in the US dollar and ringgit exchange rate, ''as well as reduction in overall group sales volume.

On its prospects, the company said it expects to see modest growth its revenue and earnings in the third and fourth quarter of the financial year.

''

#Flash* No indication from AFG major shareholders to sell stake, says chairman

KUALA LUMPUR: ALLIANCE FINANCIAL GROUP BHD []'s (AFG) board has received no indication from its substantial shareholders of any intention to sell its stake in the financial services group or the entry of a new shareholder, said AFG chairman Datuk Oh Chong Peng.

"We have not been informed of any intention to exit. (In light of a trend toward industry consolidation), we are happy as we are as a domestic bank. There is no reason for us to seek mergers and acquisitions,"
Oh told reporters after AFG's annual general meeting.

It was earlier speculated that Langkah Bahagia Sdn Bhd ' a vehicle believed to be linked to former finance minister Tun Daim Zainuddin ' was looking to sell its entire 14.8% effective stake in AFG, held through Vertical Theme Sdn Bhd.

AFG's single largest shareholder, Vertical Theme holds a 29.06% stake. Vertical Theme is 49% owned by Singapore sovereign wealth fund Temasek Holdings Ltd while Langkah Bahagia holds the remainder 51% interest.

Market talk had also been rife that Singapore's DBS Group was looking to take up a stake in a Malaysian banking group and AFG was said to be a potential target.

RAM Ratings reaffirms Genting's corporate credit ratings

KUALA LUMPUR: RAM Ratings has reaffirmed the respective long- and short-term corporate credit ratings of GENTING BHD [] ''at AAA and P1.

It has also concurrently reaffirmed the enhanced long-term AAA(s) rating of GB Services Bhd's (GB Services) RM1.6 billion Medium-Term Notes Programme (2009/2024).

It said on Thursday, July 28 that the enhanced rating of GB Services' debt programme was premised on an unconditional and irrevocable corporate guarantee from Genting.

Both long-term ratings have a stable outlook, it said in a statement July 28.

RAM Ratings said Genting's credit profile was supported by strong and steady cashflow contributions from its leisure and hospitality (L&H) business, particularly Resorts World Sentosa (RWS) in Singapore as well as Resorts World Genting (RWG) in Malaysia.

'We note RWS benefits from lower tax structure in Singapore while RWG enjoys a monopolistic position in Malaysia and is still well supported by the dominance of its mass market segment.

'The opening of RWS in 2010 has also improved geographical diversity of the Group's L&H operations. The Group continues to boast strong balance sheet, debt-protection measures and liquidity position,' it said.

However, these positives are moderated by the group's exposure to regulatory risk and susceptibility of its Singapore's L&H earnings to events that may affect the tourism industry, it said.

The rating agency said Genting's revenue leapt in FY Dec 2010 to RM15.19 billion (+70.9% y-o-y) while its operating profit before depreciation, interest and tax (OPBDIT) increased to RM6.63 billion (+97.9% y-o-y), largely underpinned by higher-than-expected maiden contributions from RWS.

The group had also reverted to its net-cash position with an impressive RM15.46 billion of cash and cash equivalents as at end-March 2011, it said.

Meanwhile, the Group's funds from operations (FFO) debt cover rebounded to 0.48 times in FY Dec 2010 from 0.19 times a year ago, exceeding our projection of around 0.3 times, it said.

Looking ahead, Genting's balance sheet and cashflow protection measures are envisaged to remain strong with net gearing at less than 0.10 times and its FFO debt cover at above 0.40 times over the medium term, it said.

RAM Ratings said that while capital expenditure plans for Phase 2 of RWS were still significant, the group's exposure to CONSTRUCTION [] and execution risks vis-''-vis the RWS project has declined substantially since the opening of the first phase of the IR.

Given its sizeable war chest, the group is continuously on the lookout for new investments to strengthen its position as a global gaming player; this includes expanding its businesses in the US as well as possible investments in other regions, it said.

It has also been reported in the press that the group is eyeing potential ventures in Vietnam to develop resort facilities that include gaming operations, it said.

RAM Ratings hed of consumer and industrial ratings Kevin Lim said that as the group expands its portfolio overseas, it may face new business risks and increased competitive pressure, particularly in untested markets or markets that are more competitive.

'Nonetheless, RAM Ratings expects the Group to maintain its cautious stance on potential investments while preserving its conservative financial policies," he said.

#Flash* US$100b Trans-Asian O&G pipeline project MoU inked

KUALA LUMPUR: Panelpoint Sdn Bhd, Hubei Weiguang Municipal Gas Investment and Development Co Ltd, PWS Manufacturing Sdn Bhd, Persatuan Kontraktor Melayu Malaysia, Asia Bolts and Nuts Group, Lotus Action Sdn Bhd and Technow Industrial Sdn Bhd have inked an MoU for the US$100 billion Trans-Asian Oil and Gas Pipeline project to build a 7,000km long gas pipeline.

The pipeline extending from Mersing, Johore will connect with an offshore utility platform in Northern Natuna Islands, Indonesia.

It will then continue northbound to Ho Chi Minh City, Hanoi, Vietnam and subsequently link to Hong Kong and Guangzhou, China.

Conversely, a pipeline will connect southbound from Northern Natuna Islands to Jakarta with smaller reticulation gas pipelines linking up other locations in the region.

Petronas Carigali discovers gas offshore Sabah

KUALA LUMPUR: Petronas Carigali Sdn Bhd, the exploration and production arm of Petroliam Nasional Bhd (Petronas), has made two significant gas discoveries in the shallow water areas offshore west coast of Sabah.

In a statement today, Petronas said the first discovery was via the Zuhai East-1 well, which was located in the Samarang Asam Paya Block about 130km south-west of Kota Kinabalu.

"The current estimate of gas-initially-in-place is about 550 billion standard cu ft," it said.

Similar reservoirs in a nearby well about 5 km to the east of the Zuhai East discovery were tested to flow gas at a maximum rate of 21 million standard cu ft per day, it said.

Petronas Carigali is the sole equity holder of the production-sharing contract (PSC) of the Samarang Asam Paya Block.

It said the second discovery, at the Menggatal-1 well, was located in Block SB312, about 110km north-east of Kota Kinabalu.

"The Block SB312 PSC is a joint-venture between Petronas Carigali with 60 per cent equity and KUFPEC Malaysia (SB 312) Ltd, a subsidiary of Kuwait Foreign Petroleum Exploration Co, which holds the remaining interest," it said. ' Bernama

PetDag to focus on new ETP opportunities

KUALA LUMPUR: Petronas Dagangan Berhad, domestic marketing arm of Petronas will concentrate on new opportunities via the government's ETP development projects.

Its chairman Datuk Wan Zulkiflee Wan Ariffin said there would be a lot of CONSTRUCTION [] activities that its commercial business was actively pursuing.

'Construction and diesel requirements will be high and roads bitumen is a market we are involved in,' he said.

He said that last year, Petronas Dagangan had made substantial growth in these markets and that it would continue to pursue these spinoffs that come out of the ETP projects.

Asian markets mired in red as US debt crisis looms

KUALA LUMPUR: Key regional markets were mired in the red on Thursday, July 28 as weak US economic data and a deadlock in talks to raise the world's largest economy's debt ceiling spooked investors.

Concerns over a recovery in the US economy remain unabated with new orders for long-lasting US manufactured goods falling unexpectedly in June, weighed down by weak receipts for transportation equipment.

On Bursa Malaysia, the FBM KLCI fell 8.35 points to 1,549.82 at the mid-day break weighed by losses at blue chips.

Market breadth was negative as losers beat gainers by 482 to 162, while 269 counters traded unchanged. Volume was 563.94 million shares valued at RM760.63 million.

The ringgit weakened 0.44% to 2,9518 versus the US dollar; crude palm oil futures for the third month delivery fel l RM35 per tonne to RM3,095, crude oil slipped 15 cents per barrel to US$97.25 while gold rose US$1.30 an ounce to US$1,614.95.

At the regional markets, Japan's Nikkei 225 fell 1.43% to 9,903.29, Hong Kong's Hang Seng Index lost 1.03% to 22,308.44, the Shanghai Composite Index down 0.93% to 2,698.28, Taiwan's Taiex gave up 0.77% to 8,749.57, South Korea's Kospi down 0.75% to 2,158.09 and Singapore's Straits Times Index shed 0.53% to 3,176.58.

Among the losers this morning, PPB fell 26 sen to RM17.24, BAT 22 sen to RM46.34, Hong Leong Bank 20 sen to RM13.30, F&N 18 sen to RM19.40, Subur Tiasa and MISC 15 sen each to RM2.54 and RM7.68. Bursa and CI Holdings 13 sen each to RM7.80 and RM4.21, while Petronas Gas fell 12 sen to RM13.26.

Nestle topped the gainers and was up 24 sen to RM47.66, Kenmark 19 sen to RM1.20, Ingress 12.5 sen to 98 sen and PJ Bumi 8.5 sen to 33 sen.

The actives included Bumi Armada warrants, Hubline, Ingenuity Solutions, Olympia and Petronas Chemicals.

MAHB 2Q net profit up 37.4% to RM81.92m

KUALA LUMPUR: Malaysia Airports Holdings Bhd net profit for the second quarter ended June 30, 2011 jumped 37.4% to RM81.92 million from RM59.62 million a year earlier due mainly to a positive growth in revenue.

MAHB said on Thursday, July 28 that its revenue for the quarter rose to RM654.23 million from RM525.01 million in 2010.

Earnings per share was 7.45 sen while net assets per share was RM3.08.

For the six months ended June 30, MAHB's net profit rose to RM170.05 million from RM132.75 million a year earlier, on the back of revenue RM1.26 billion compared to RM1.02 billion in 2010.

Reviewing its performance, MAHB said the improved revenue was mainly attributed to the effects of adopting IC 12 which resulted in recognition of CONSTRUCTION [] revenue in relation to the construction of Klia2 and expansion of Penang International Airport in the current quarter.

Stripping out the construction revenue, the consolidated revenue for the current quarter and financial period-to-date under review was higher than the same corresponding period in the previous year by 8.4% or RM36.4 million and 6.4% or RM55.4 million respectively, it said.

MAHB said the improvement in revenue for the quarter under review was mainly contributed by a positive growth of 7.3% from airport operations, driven by an increase in non-aeronautical revenue of 14.9% which was mostly derived from the group's retail business.

It said passenger movements were 6.8% higher year-on-year, in which the international and domestic passenger movements increased by 2.6% and 11% respectively.

The improvement in revenue for the financial period-to-date under review was mainly due to a 5.4% growth in the airport operations business, as well as a 19.6% growth in the non-airport operations businesses, it said.

Positive growth in the airport operations was driven by a 16.3% improvement in the retail business, it said.

Passenger movements for the financial period-to-date under review were 12.6% higher than the corresponding period last year, in which the international and domestic passenger movements grew 13.5% and 11.8% respectively.

Commenting on its prospects, MAHB said it continues to benefit from the economic growth in Malaysia, the Asean region and other countries within the emerging markets.

The expected future GDP growth as well as increases in tourism and consumer spending in these markets would provide positive support to its operational and growth objectives, said MAHB.

The local economy is expected to further grow, leveraging on the Economic Transformation Programme implemented by the government, it said.

'The airport operations segment is expected to continue contributing positively to the consolidated revenue of the group in 2011.

'The aeronautical revenue streams would be highly dependent on passenger movements at all airports operated by the group,' it said.

MAHB pointed out that the International Air Transport Association (IATA) had recently estimated a 4.4% world passenger traffic growth for 2011, down from an earlier forecast of 5.6% in March.

'The cargo growth forecast was cut to 5.5% from 6.1%. The lower estimates were in view of higher oil prices, political protests in the Middle East and North Africa, as well as the natural disasters in Japan.

'Nevertheless, to date the overall impact of these factors to MAHB have been relatively low, and at this juncture MAHB is optimistic that the passenger traffic performance at the airports operated by the group will remain positive in 2011,' it said.

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#Flash* Heitech not rushing to raise stake in Grand-Flo Solution, says its chairman

KUALA LUMPUR: HEITECH PADU BHD [] is in no rush to increase its 20.1% stake in Grand -Flo Solution Bhd, S said its chairman Datuk Hilmey Mohd Taib.

He said on Thursday, July 28 that it was a viable move for Heitech to leverage on Grand-Flo's strong presence in Thailand, Vietnam and China while Grand-Flo would also tap into Heitech's presence in the Middle East.

Grand -Flo's managing director Derrick Tan said Grand-Flo had recently landed a big infrastructure project in Thailand and would capitalise on its new relationship with Heitech to work on that project.

Tan also said that both the companies were working on a few projects together currently.

Ingress rises on securing RM388m contracts

KUALA LUMPUR: INGRESS CORPORATION BHD [] shares rose on Thursday, July 28 after the company said it had secured contracts worth some RM388 million.

At 10.40am, Ingress rose 16.5 sen to RM1.02 with 5.13 million shares.

It said on July 27 that the contracts, secured by the group's Power Engineering & Projects division, was expected to contribute to a better performance anticipated by the group for its current financial year ending Jan 31, 2012.

Other divisions that will contribute to the expected better performance include the group's automotive business, it said.

Singapore's top 40 wealthiest now US$8.7b richer

KUALA LUMPUR: The combined wealth of Singapore's top 40 richest rose 19% or US$8.7 billion year-on-year to US$54.4 billion, according to the latest rich list published by Forbes Asia.

In a statement Thursday, July 28, Forbes Asia said the better numbers achieved by the country's wealthiest come despite a slowing economy and weak stock market.

It said the family of the late Ng Teng Fong remains at the top with US$8.9 billion, up by US$1.1 billion from last year.

Their fortune is tied to their two biggest property holdings, namely the privately held firm Far East Organization and Hong Kong-listed Tsim Sha Tsui PROPERTIES [].

The family of deceased tycoon Khoo Teck Puat came in second with US$6.7 billion, up by US$800 million from last year.

They retain a stake in the Goodwood Group of Hotels. In 2006, they sold their stake in Standard Chartered Bank for an estimated US$4 billion to Temasek, Singapore's state investment company, said Forbes Asia.

At number three was veteran banker Wee Cho Yaw with US$4.2 billion, an increase of US$600 million over last year. He chairs United Overseas Bank founded by his late father.

Wee took over and ran it for over three decades until 2007. His fortune includes privately held property firm Kheng Leong, said the magazine.

Forbes Asia said there were 13 billionaires on this year's list compared with 11 last year.

The two newcomers with billionaire standing are the Lien family and Sam Goi, it said.

Forbes Asia said Sam Goi debuted at No. 12 with a net worth of US$1.2 billion, adding that the 62-year old food tycoon was popularly known as Singapore's 'Popiah King'.

The tale of how he built his fortune from making spring-roll skins is the subject of this issue's cover story.

Forbes Asia said that to compile the list, public fortunes were calculated using share prices and exchange rates as of July 12.

For privately held assets, Forbes Asia estimated what they would be worth if public.

This year, a minimum net worth of US$210 million was needed to qualify for the list, up from $190 million previously.

This ranking, unlike the Forbes billionaires list, includes numerous family fortunes shared with children, grandchildren or siblings.

Where family fortunes were held by extended families, such as the Kwek cousins, Forbes Asia split them into separate entries.

The full list of Singapore's 40 richest can be found in the August 2011 issue of Forbes Asia, which is available on newsstands now.

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FBM KLCI falls below 1,550-level at mid-morning

KUALA LUMPUR: The FBM KLCI fell below the 1,550-point level at mid-morning on Thursday, July 28 in line with the retreat at regional markets spooked by the overnight tumble at Wall Street.

Asian markets opened in the red following Wall Street's worst day in eight weeks on worries US lawmakers will fail to raise the debt ceiling ahead of an August 2 deadline and trigger a national default.

The FBM KLCI fell 12.14 points to 1,546.03 at 10am, weighed by losses at banking and blue chip stocks. Losers beat gainers by 313 to 110, while 199 counters traded unchanged. Volume was 267.88 million shares valued at RM262.73 million.

At the regional markets, Japan's Nikkei 225 fell 1.12% to 9,935.07, Hong Kong's Hang Seng Index lost 0.68% to 22,389.36, the Shanghai Composite Index down 0.57% to 2,707.96, Taiwan's Taiex declined 0.47% to 8,776.11, South Korea's Kospi lost 0.95% to 2,153.76 and Singapore's Straits Times Index shed 0.54% to 3,176.26.

BIMB Securities Research in a note July 28 said that finally, reality was sinking in and pushing traders to the brink over the debt impasse as the Dow Jones was whacked by an almost 200 point decline further exacerbated by the weak US economic data on durable goods.

Meanwhile, it said Europe was not faring any better as S&P is the latest to downgrade Greece's rating to CCC from CC before.

'With this lethal mix of economic cocktails, we believe trading on the regional bourses to remain volatile with downward bias.

'On the local front, we expect trading to be range bound as we reckon foreign funds may be trickling into Malaysia as seen from the strengthening RM against the greenback. Immediate support is seen at the 1,550 mark,' it said.

Among the losers, DiGi fell 38 sen to RM29.86, Hong Leong Bank lost 22 sen to RM13.28, PPB, Petronas Gas and MISC fell 20 sen each to RM17.30, RM13.18 and RM7.63 respectively, HLFG 16 sen to RM13.02, Bursa 14 sen to RM7.79, Subur Tiasa 12 sen to RM257 while CIMB and Public Bank lost 10 sen each to RM8.29 and RM13.36.

Gainers included Ingress, PJ Bumi, Ancom, Nylex and Sapura Industries, while the actives included Bumi Armada shares and warrants, Olympia, Dutaland and BIG.

Nylex shares advance at mid-morning

KUALA LUMPUR: Nylex (Malaysia) Bhd shares advanced on Thursday, July 28 after its net profit for the fourth quarter ended May 31, 2011 rose 54.6% to RM7.82 million from RM4.71 million a year earlier, due mainly to higher demand for its products and improved margins.

At 10.30am, Nylex rose 4.5 sen to 63.5 sen with 200,300 shares.

Nylex said on Wednesday, July 27 that its revenue for the quarter rose to RM392.01 million from RM296.69 million in 2010. Earnings per share was 3.75 sen while net assets per share was RM1.39.

For the financial year ended May 31, Nylex's net profit fell to RM13.18 million from RM35.11 million a year earlier on the back of revenue RM1.23 billion.

Reviewing its performance, Nylex said that compared to the immediate preceding quarter, crude oil prices in the current quarter was stronger.

'Thus, customers were more willing to stock up on our products and this increase in demand resulted in better sales and margins,' it said.

On its prospects, Nylex said that barring unforeseen circumstances its performance was for the next financial year ending May 31, 2012 was expected to be satisfactory.

Axiata to be net cash from next year, says Maybank IB

KUALA LUMPUR: Maybank IB Research has raised its sum-of-parts based target price for Axiata Group Bhd to RM5.80 from RM5.60 while maintaining its Buy call on the stock, and said it expects Axiata to be net cash from next year onwards.

With strong cash flow generating capabilities from its domestic and overseas operations, Axiata's balance sheet continues to strengthen, it said in a note Thursday, July 28.

The research house said it expects Axiata's debt/EBITDA ratio to decline to 1.3 times by end-2012 from 4.6 times in end-2008.

'With no major acquisitions apparent in the near horizon, prospects for positive surprises on the dividend front are high, in our view.

'Our SOP-based target price is marginally raised to RM5.80 from RM5.60 as our cost of equity assumption is lowered to 11.1% from 11.5%, on rolling forward our valuation parameters,' it said.

AmResearch maintains Buy on Jaya Tiasa

KUALA LUMPUR: AmResearch has maintained its BUY call on JAYA TIASA HOLDINGS BHD [], with an unchanged fair value of RM8.51 based on a PE of 15 times FY12F EPS of 56.7 sen per share.

It said in a note July 28 that Jaya Tiasa recently announced a better-than-expected net profit of RM147 million for FY11 (+503% versus FY10), which was 16% and 12% above our and consensus estimates, respectively.

'Post-FY11 results, we had upgraded the stock to a BUY (from hold previously). The oil palm division, whose pre-tax profit surged 460% to RM105 million in FY11, will continue to be the star performer in the next two to three years.

'We expect FFB production to grow significantly by 45% to 520,000 tonnes in FY12F and by another 50% to 750,000 tonnes in FY13F,' it said.

AmResearch said Jaya Tiasa's mature hectarage was expected to rise 50% to over 37,000ha in FY12F and by another 30% to about 50,000ha by FY13F, after adding 70% to 25,058ha as at end-FY11.

The research house said its CPO assumption for each of FY12F-FY14F was RM3,300/tonne.

Apart from sustained demand from India for its logs, rising demand for plywood products from Japan for its reCONSTRUCTION [] efforts will also lend support to the company's performance, it said.

'Jaya Tiasa's well diversified markets put it in a good position to benefit from the strong timber market.

'Our fair PE of 15 times is well within the stock's historical five-year forward PE of between 6x and 36x, and below the average of 16 times. Jaya Tiasa is now trading at an attractive PE of 12 times,' it said.

Favelle Favco rises on new contracts

KUALA LUMPUR: FAVELLE FAVCO BHD [] shares rose in early trade on Thursday, July 28 after it secured four separate contracts worth a combined RM79.3 million to supply offshore cranes, a tower crane and winches.

At 9.05am. Favelle rose five sen to RM1.46 with 4,000 shares traded.

It said on Wednesday, July 27 that its subsidiaries Favelle Favco Cranes (M) Sdn Bhd, Favelle Favco Cranes Pty Ltd, Favelle Favco Cranes Pte Ltd and Favelle Favco Winches Pte Ltd had received the purchase orders or letters of intent from their clients.

FBM KLCI falls in early trade

KUALA LUMPUR: The FBM KLCI fell in early trade on Thursday, July 28 in line with the losses at key regional markets following the overnight slump at Wall Street.

At 9.15am, the 30-stock index lost 6.37 points to 1,551.80, dragged by losses at key blue chip stocks.

Asian markets opened in the red following Wall Street's worst day in eight weeks on worries U.S. lawmakers will fail to raise the debt ceiling ahead of an August 2 deadline and trigger a national default.

Among the early decliners, Hong Leong Bank fell 18 sen to RM13.32, BAT 16 sen to RM46.60, Bursa 12 sen to RM7.81, RHB Capital 11 sen to RM8.09, CIMB nine 8.30, Sime, MMHE and Petronas Chemicals eight sen to RM9.10, RM7.61 and RM6.84 respectively, while PPB lost six sen to RM17.44.

SCIB active, up in early trade

KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB) shares continued to be actively traded on Thursday, July 28 despite the company saying it was not aware of any corporate developments or rumours concerning its business that caused of the unusual market activity (UMA) in the company's shares on Wednesday, July 27.

At 9.25am, SCIB rose 10 sen to 75 sen with 4.02 million shares traded.

SCIB yesterday said it was unaware of any reason for the spike in its share price in response to Bursa Malaysia Securities Bhd's UMA query to the company earlier in the day after the stock hit limit-up in the morning trading session.

Nikkei falls on U.S. econ data, deadlocked debt talks

TOKYO: The Nikkei stock average fell for a second straight day on Thursday and traded below 10,000, hurt by weak U.S. economic data and a deadlock in talks to raise the U.S. debt ceiling.

The benchmark Nikkei fell 1.1 percent to 9,934.74 while the broader Topix index was down 1.1 percent at 849.62. ' Reuters

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ASIA-Shares to struggle against tide of poor news

WELLINGTON: Asian stocks face a likely torrid session, as U.S. debt woes, poor earnings and weak data hammered markets across the world.

The main Wall Street indices fell by between 1.6 percent and 2.7 percent, the worst day in eight weeks.

The U.S. government debt ceiling stalemate moved closer to the Aug. 2 deadline with no sign of a resolution.

TECHNOLOGY [] stocks fell after a profit warning from Juniper Networks , while weak durable goods data also weighed.

The CBOE Volatility Index rose 13.6 percent, gaining for a third day, and analysts said the index is pricing in an increasing chance of a U.S. credit downgrade.

Asian stocks listed on Wall Street fell 1.72 percent while world stocks, as measured by the MSCI world equity index, sunk 1.7 percent.

British shares fell 1.2 percent while European shares fell 1.1 percent, as markets became increasingly fearful about the likelihood of a U.S. downgrade.

The U.S. dollar clawed back some of its recent losses against the euro although the rally is seen as likely to be short-lived, with the currency hitting a four-month low against the Japanese yen.

The yen's strength will weigh further on Japanese markets, which are seen opening lower, with Nikkei futures traded in Chicago 110 points below the last closing level in Osaka.

Australian stocks are also set for a sharp drop, with share price index futures down 1.4 percent to sit at a 89.4 point discount to the close of the underlying S&P/ASX 200 index. ' Reuters

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US STOCKS-Deadlock, durables, dismal earnings hit Wall St

NEW YORK: Wall Street suffered its worst day in eight weeks on Wednesday, hit by weak earnings, lackluster economic data and no movement in Washington talks as the deadline for a U.S. default looms.

The debt ceiling debate has grabbed much of investors' attention this week as the Aug. 2 deadline approaches, but it took a back seat for much of the day as the market reacted to earnings disappointments in industrial and TECHNOLOGY [] sectors.

A profit warning from Juniper Networks sent its shares down 20.9 percent to $24.66, damaging sentiment in the technology sector, which has been among the strongest this reporting period. The S&P tech index declined 3 percent.

A late statement from White House that the government would be "running on fumes" if the debt ceiling isn't increased by the deadline added to selling.

Besides a potential default on U.S. debt, the government could face a downgrade of its credit. The S&P 500 index has lost nearly 3 percent so far this week amid acrimonious debate about cutting spending and raising the debt limit.

'The market is beginning to show real concerns in terms of a default. I don't think it's going to happen ... (but) are we headed for a downgrade? That is becoming more of a possibility as each day goes by," said Peter Cardillo, chief market economist at Avalon Partners, in New York.

Many investors are opting to wait for the outcome of the talks before putting more money on the table.

"We haven't been committing new capital. We've been holding off on making any purchases over the last few days," said Eric Kuby, chief investment officer at North Star Investment Management Corp in Chicago. "If you multiply us by the other 10,000 money managers, you get a sense of why the market is getting a little soft."

Volume increased as the selling extended, a sign of weak conviction among investors. Nearly 14 stocks fell for every one that rose on the NYSE.

The Dow Jones industrial average was down 198.75 points, or 1.59 percent, at 12,302.55. The Standard & Poor's 500 Index was down 27.05 points, or 2.03 percent, at 1,304.89, and had its worst daily percentage decline since June 1. The Nasdaq Composite Index was down 75.17 points, or 2.65 percent, at 2,764.79.

New orders for long-lasting U.S. manufactured goods fell unexpectedly in June, and a gauge of business spending plans slipped. Also, the Federal Reserve's "Beige Book" report showed the pace of the recovery slowing in most districts surveyed, indicating the economy was not bouncing back as the year's second half began.

Moderating order growth at Emerson Electric Co added to worries about earnings among industrial stocks. Emerson shares fell 6.7 percent to $50.43.

The CBOE Volatility Index rose 13.6 percent, gaining for a third day, and analysts said the index is pricing in the possibility of a U.S. credit downgrade.

The S&P 500 fell below it's 50-day moving average. Analysts are eyeing the 200-day average near 1,283 as an area of support.

The S&P 500 and the Nasdaq have fallen for three straight days while the Dow fell for a fourth day.

The Emerson outlook came after troubling signs from Caterpillar, Whirlpool, Ingersoll-Rand, and PepsiCo, all of whose shares were punished by investors.

Tech stocks, on the other hand, have been a bright spot so far this earnings period.

The overall mean change in S&P 500 technology earnings estimates for the second quarter is a positive 2.2 percent, the best of the 10 S&P sectors, according to Thomson Reuters StarMine data.

The latest earnings disappointments are "causing people to rethink their portfolios and move some stuff around, especially on the technology side," said Stifel Nicholas technology trader Adam Tracy in San Francisco.

After the close, shares of Akamai Technologies dropped 11.8 percent to $26 after it reported results.

Overall, some 8.69 billion shares changed hands on the New York Stock Exchange, NYSE Amex and Nasdaq, below the daily average of 7.47 billion.

On the New York Stock Exchange, decliners outweighed advancers by about 14 to 1, while Nasdaq losers beat winners by roughly 7 to 1. ' Reuters

Sarawak Consolidated says unaware of reason for unusual market activity

KUALA LUMPUR: Sarawak Consolidated Industries Bhd (SCIB) said it was not aware of any any corporate developments or rumours concerning its business that caused of the unusual market activity (UMA) in the company's shares on Wednesday, July 27.

It said this in response to Bursa Malaysia Securities Bhd's UMA query to the company earlier in the day after the stock hit limit-up in the morning trading session.

'After making due enquiry with our directors and major shareholders seeking the cause of the unusual market activity in the Company's shares, SCIB is not aware of any corporate development,'' rumour or other possible explanation to account for the unusual market activity,' it said.

SCIB closed 30 sen higher at 65 sen with 5.61 million shares done.

Bursa had said in its query that accordance with the Listing Requirements, SCIB was to publicly confirm if there were any corporate developments or rumours concerning the business that may account for the UMA.

LFIB to buy land in Cambodia for plantation

KUALA LUMPUR: LION FOREST INDUSTRIES BHD [] (LFIB) has proposed to acquire a parcel of land in Cambodia for RM11.77million as part of its plan to seek new opportunities to cultivate rubber, palm oil and other industrial crops in Southeast Asian countries.

It said on Wednesday, July 27 that its wholly owned unit Harta Impiana Sdn Bhd had identified a parcel of 9,995ha economic land concession in the Preah Vihear Province and was proposing to procure a minimum 70-year concession period from the Cambodian government to cultivate the land.

It said the land is for the purposes of cultivation and planting of oil palm and/or rubber trees.

'Following the disposal of the LFIB group's tyre operations both in Malaysia and in the People's Republic of China, the group has been studying and identifying a new core business.

'The proposal allows the LFIB group the opportunity to tap into a new core business and also to diversify its earnings stream by investing in lands for the purposes of PLANTATION [] of rubber and/or oil palm,' it said.

LFIB said the acquisition would be financed from internally generated funds.

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Ho Hup takes major step toward moving out of PN17 by repaying CIMB

KUALA LUMPUR: Ho Hup CONSTRUCTION [] Co Bhd has taken a major step in its efforts to move out of PN17 status after it accepted a term loan facility of RM75 million from Insas Credit & Leading Sdn Bhd to repay a loan from CIMB Bank Bhd.

It said that the loan was secured on the 60-acre land held by its 70% subsidiary Bukit Jalil Development Sdn Bhd (BJD) and was in default for the last three years.

In a state Wednesday, July 27, Ho Hup said the refinancing of the loan from CIMB was part of its efforts to regularise its operations and financial conditions under its re-structuring exercise.

It said the refinancing was in accordance with its proposed revised scheme of arrangement as announced on June 30, 2011.

It had then proposed that CIMB, which was owed RM12 million by BJD and RM61.6 million by Ho Hup as at Oct 30, 2010 be settled in full, and that it was negotiating refinancing credit facilities to fully redeem CIMB.

It said that upon completion of the refinancing, CIMB would have been settled in full and no longer part of the scheme.

'As a result of the refinancing Ho Hup only have to deal with the unsecured creditors of Ho Hup and BJD under the proposed scheme of arrangement which stands at RM69.9 million and RM188.1 million respectively,' it said.

The company said Insas Credit's principal activities were credit, leasing and other related financing schemes.

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Favelle Favco lands contracts worth RM79.3m

KUALA LUMPUR: FAVELLE FAVCO BHD [] has secured four separate contracts worth a combined RM79.3 million to supply offshore cranes, a tower crane and winches.

It said on Wednesday, July 27 that its subsidiaries Favelle Favco Cranes (M) Sdn Bhd, Favelle Favco Cranes Pty Ltd, Favelle Favco Cranes Pte Ltd and Favelle Favco Winches Pte Ltd had received the purchase orders or letters of intent from their clients.

It said Favelle Favco Cranes (M) was to supply Global Tender Barges Pte Ltd an offshore crane; Favelle Favco Cranes Pty Ltd to provide Oberoi CONSTRUCTION []s Ltd a tower crane; Favelle Favco Cranes Pte Ltd to supply Keppel Fels Limited an Offshore Crane while Favelle Favco Winches was to supply winches to Techoil Company Sdn Bhd.

It said the cranes and winches will be supplied between the third quarter of this year and third quarter of 2013.

Favelle said the contracts were expected to contribute positively to its earnings for the financial year ending Dec 31, 2011 and beyond.

Nylex 4Q net profit up 54.6% to RM7.82m

KUALA LUMPUR: Nylex (Malaysia ) Bhd net profit for the fourth quarter ended May 31, 2011 rose 54.6% to RM7.82 million from RM4.71 million a year earlier, due mainly to higher demand for its products and improved margins.

Nylex said on Wednesday, July 27 that its revenue for the quarter rose to RM392.01 million from RM296.69 million in 2010. Earnings per share was 3.75 sen while net assets per share was RM1.39.

For the financial year ended May 31, Nylex's net profit fell to RM13.18 million from RM35.11 million a year earlier on the back of revenue RM1.23 billion.

Reviewing its performance, Nylex said that compared to the immediate preceding quarter, crude oil prices in the current quarter was stronger.

'Thus, customers were more willing to stock up on our products and this increase in demand resulted in better sales and margins,' it said.

On its prospects, Nylex said that barring unforeseen circumstances its performance was for the next financial year ending May 31, 2012 was expected to be satisfactory.

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FBM KLCI slips below 1,560-level at closing, Prestariang slumps on debut

KUALA LUMPUR: Asian markets closed mixed on Wednesday, July 27 as China's industrial profits 28.7% in the first half from a year earlier to 2.4 trillion yuan (about US$373 billion), lifting sentiment at some of the markets.

Meanwhile, European shares fell in early as a deadlock over raising the US debt limit raised concerns about a possible default and a downgrade of the country's top-notch credit rating, prompting investors to cut their exposure to riskier assets, according to Reuters.

On Bursa Malaysia, the FBM KLCI lost 0.23% or 3.60 points to close at 1,558.17. Gainers edged losers by 383 to 320, while 343 counters traded unchanged. Volume was 1.05 billion shares valued at RM1.69 billion.

At the regional markets, the Shanghai Composite Index edged up 0.76% to 2,723.49, Singapore's Straits Times Index added 0.22% to 3,193.54, while South Korea's Kospi and Taiwan's Taiex added 0.26% each to 2,174.31 and 8,817.49 respectively.

Japan's Nikkei 225 fell 0.50% to 10,047.19 and Hong Kong's Hang Seng was down 0.13% to 22,541/69.

Prestariang Bhd had miserable debut on Bursa Malaysia Securities and slumped 16 sen to 74 sen, below its IPO price of 90 sen. It was also the most actively traded stock with 58.99 million shares done.

Other actives included Ingenuity Solutions shares and warrants, KNM, Zelan, Petronas Chemicals, Peterlabs and Zecon.

Among the decliners, Petronas Dagangan fell 32 sen to RM17.82, BAT 24 sen to RM45.56, Hong Leong Bank 20 sen to RM13.50, CI Holdings 14 sen to RM4.34, Shangri-La 10 sen to RM2.70 and Petronas Chemicals nine sen to RM6.92.

Among the gainers, United PLANTATION []s and Petronas Gas rose 20 sen each to RM20.20 and RM13.38, SIG Gases up 17.5 sen to 99 sen, Tasek and Kulim 17 sen each to RM8.05 and RM3.74, while DiGi and AirAsia added 14 sen each to RM30.24 and RM3.93.

Meanwhile, Bursa Malaysia Securities Bhd issued an Unusual Market Activity (UMA) query to Sarawak Consolidated Industries Bhd (SCIB) due to the stock price hitting limit-up in the morning trading session today.

SCIB rose 30 sen to 65 sen with 5.62 million shares done.

S&P lowers local currency long-term rating on M'sia to 'A' from 'A+'

KUALA LUMPUR: Standard & Poor's Ratings Services has lowered its local currency long-term sovereign rating on Malaysia to 'A' from 'A+', with a stable outlook.

Correspondingly, it lowered the ASEAN scale credit rating on Malaysia to 'axAA+/axA-1' from 'axAAA/axA-1+'.

At the same time, S&P affirmed its 'A-/A-2' foreign currency rating and 'A-1' local currency short-term rating.

In a statement Wednesday, July 27, S&P said it lowered the local currency rating on Malaysia following the implementation of the agency's revised methodology and assumptions for sovereign ratings.

The criteria update did not affect the long-term foreign currency rating on Malaysia, it said.

Under the revised methodology, the gap between the local and foreign currency ratings on most sovereigns we rate worldwide is narrowing, it said.

S&P credit analyst Takahira Ogawa said the gap was narrowing because governments were likely to have fewer incentives to differentiate between their local and foreign currency debt in the event of debt restructuring, given the increasing globalization of markets.

S&P said that in accordance with its criteria for sovereign ratings, the local currency rating on Malaysia was one notch higher than the foreign currency rating, based on the following factors, namely, its active local currency fixed income market, with an annual trading volume equivalent to more than 50% of GDP; and the absence of significant rating constraints related to fiscal flexibility.

It said the sovereign credit rating on Malaysia reflected the country's moderately strong external liquidity position, which continues to underpin its credit standing.

'Malaysia's open, diversified, and competitive economy, with a moderately flexible labor market, relatively developed infrastructure in the region, ample supporting industries, and a high savings rate also support the rating,' it said.

Ogawa said the government's economic policies were generally pragmatic, and it had made efforts to enhance transparency and corporate governance, thereby improving Malaysia's business environment.

'Malaysia's rating constraints are its moderately weak fiscal and debt profile for the rating category. In our view, the slow fiscal consolidation stems from the increasing subsidies, despite the strong 5.2% GDP growth forecast.

"The government has plans to reform the subsidy systems and to introduce goods and service tax. But given the political sensitivity, we expect any implementation to be gradual," said'' Ogawa.

He said an additional rating constraint was Malaysia's moderately weak economic structure, which resulted in continually large government investments--sometimes exceeding that of the private sector's--for more than a decade.

This, in turn, adversely affected the government's fiscal position, he said.

The stable outlook reflects S&P's expectation that, despite Malaysia's still-high fiscal deficit compared with its peers, the government will be able to refinance without a significant increase in interest rates or negative implications for the economy, he said.

"We may raise the sovereign credit rating if stronger growth and the government's effort to lower spending result in lower-than-expected deficits. With lower deficits, a significant reduction in government debt is possible.

"We may lower the rating if the fiscal deficit remains unchanged or increases, resulting in higher net debt in the medium term,' said Ogawa.

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Bursa Securities queries Sarawak Consolidated

KUALA LUMPUR: Bursa Malaysia Securities Bhd has issued an Unusual Market Activity (UMA) query to Sarawak Consolidated Industries Bhd (SCIB) on Wednesday, July 27 due to the stock price hitting limit-up in the morning trading session today.

SCIB rose 30 sen to 65 sen as at 2.37pm with 3.8 million shares done.

Bursa said in accordance with the Listing Requirements, SCIB was to publicly confirm if there were any corporate developments or rumours concerning the business that may account for the UMA.

China Jan-June industrial profits rise 28.7% y-o-y

BEIJING: Industrial profits across China rose 28.7 percent in the first half from a year earlier to 2.4 trillion yuan (about US$373 billion), the National Bureau of Statistics said on Wednesday.

The growth marked an acceleration from an annual increase of 27.9 percent in the first five months.

The statistics agency noted that profit in the private sector rose 47.2 percent, versus an increase of 20.2 percent in the state sector.

Only one of the 39 industries, or the petroleum refinery, coking and nuclear fuel sector, suffered a profit fall of 66 percent in the period, the statistics agency said in a statement on its website, www.stats.gov.cn.

Profits in the chemical fibre industry leapt 57.1 percent from a year earlier, while ferrous metal mining companies posted a 61.7 percent jump in their earnings, it added. ' Reuters

Prestariang makes dismal debut as sentiment remains tepid

KUALA LUMPUR: ICT service provider Prestariang Bhd made a dismal debut on Bursa Malaysia and fell 13% at the mid-day break on Wednesday, July 27 as the broader market remained cautious in line with the tepid sentiment at regional markets.

Gold prices hit a record high at more than $1,623 an ounce and Asian stock markets were largely flat, as news out of Washington indicated politicians were making little progress in ending the deadlock over lifting the US debt ceiling, according to Reuters.

On Bursa Malaysia, the FBM KLCI edged up 0.10 point to 1,561.87 at 12.30pm. Losers led gainers by 297 to 291, while 292 counters traded unchanged. Volume was 539.89 million shares valued at RM716.71 million.

The ringgit strengthened 0.53% to 2.9392 versus the US dollar; crude palm oil futures for third month delivery rose RM12 per tonne to RM3,131, crude oil fell 40 cents per barrel to US$99.17 while gold jumped US$2.93 an ounce to US$1,622.23.

At the regional markets, Japan's Nikkei 225 fell 0.52% to 10,044.73, Singapore's Straits Times Index lost 0.23% to 3,179.24, South Korea's Kospi down 0.11% to 2,166.24 and Hong Kong's Hang Seng Index shed 0.07% to 22,557.23.

Meanwhile, Taiwan's Taiex advanced 0.19% to 8,810.62 and the Shanghai Composite Index edged up 0.06% to 2,704.72.

On Bursa Malaysia, Prestariang was the most actively traded counter with 43.96 million shares traded. The stock lost 11.5 sen to 78.5 sen, well below its IPO price of 90 sen.

Other actives included KNM, Zelan, Peterlabs, Zecon and Flonic.

Among the gainers, SCIB added 30 sen to 65 sen, KLK up 24 sen to RM21.92, SIG Gases 21.5 sen to RM1.03, Shell and United PLANTATION []s 20 sen each to RM10.50 and RM20.20, while Zecon and KNM added 17 sen each to 95 sen and RM2.07.

Losers included Petronas Dagangan, Fima Corp, Goldis, Tasek, CI Holdings and BLD Plantations.

Zecon surges on JV for petrochem project

KUALA LUMPUR: Shares of ZECON BHD [] surged on Wednesday, July 27 after recent news of its JV with KNM GROUP BHD [] for a multi-billion ringgit integrated petrochemical complex in Teluk Ramunia.

At 10.28am, it Zecon-WA was up 18 sen to 62.5 sen with 10.92 million shares done while the shares rallied 14.5 sen to 92.5 sen with 9.83 million units done. However, the securities could be running ahead before the formalisation of the contract.

KNM rose six sen to RM1.96 with 7.28 million unit transacted.

The FBM KLCI shed 0.26 of a point to 1,561.51. There were 284.42 million shares done valued at RM348.55 million. There were 219 gainers, 206 losers and 251 stocks unchanged.

Zecon and KNM announced on Tuesday that Gulf Asian Petroleum (GAP), licensed by the government to build and operate the integrated petrochemical complex in Teluk Ramunia, agreed to appoint them.

KNM-Zecon consortium to undertake EPC contracts for: (i) a petroleum refinery and a polypropylene unit, estimated at RM15 billion; and (ii) petroleum product storage terminal facility, worth RM2 billion.

Hwang DBS Vickers Research said the consortium will also rope in another Korean/Chinese contractor to take up 20% stake in GAP estimated at RM540 million for the refinery project while KNM and Zecon will subscribe for up to 30% equity for a SPV (estimated at RM200 million) for the storage project.

Petronas: Sinopec JV not involved in bid

KUALA LUMPUR: Petroliam'' Nasional Bhd has clarified the Sinopec-Sabio- IODC group has not taken part in any of its prior processes in the development for marginal offshore oil field in Malaysia.

Petronas said on Wednesday, July 27 as part of the risk service contract (RSC) petroleum arrangement, the selection criteria was the local company must have a proven track record as an established oil and gas service provider, apart from being a listed entity.

The national oil company was clarifying news reports the Sinopec Petroleum Services Corp, Sabio Oil & Gas Sdn Bhd and International Oil Design & CONSTRUCTION [] Sdn Bhd (IODC) consortium was poised to be awarded a contract for the development of a marginal offshore oil field in Malaysia.

In its clarification, Petronas said it'' was developing in phases a number of marginal offshore fields in Malaysia under the RSC arrangement.

It said that it had already completed a data review process with parties interested in the fields identified for the first phase of the development and has so far awarded a RSC for the Berantai field to the Petrofac-Kencana-Sapura partnership.

'While Petronas is extremely encouraged with the interest shown by various local and international industry players in the country's marginal fields, the Sinopec-Sabio- IODC consortium has not taken part in any of our prior processes.

'In addition, as part of our selection criteria, any local company to be selected by foreign partners to participate in the RSC petroleum arrangement is required to have a proven track record as an established oil and gas service provider, apart from being a listed entity,' it said.