Italy and UK press case for deeper euro zone fiscal ties

LONDON: Britain's finance minister called for some form of fiscal union to resolve the euro zone's debt crisis on Saturday, Aug 13 while his Italian counterpart renewed a call for the introduction of common euro zone bonds.

After more than a year of piecemeal responses to the euro zone's still-expanding debt crisis, some economists and policymakers are making the case for broader changes to how the currency bloc works.

The spread of market concerns in the crisis to France in the past week have raised the stakes further ahead of a meeting of the bloc's French and German leaders next week -- both of whom have opposed more radical moves to date.

UK Chancellor George Osborne said deeper integration had been the inevitable conclusion from the start of the single currency project.

Asked if the only answer for the health of the euro zone was some kind of fiscal union, he told BBC radio: "The short answer is yes."

"I was against Britain joining the single currency. One of the reasons ... was because I thought the remorseless logic of having a single currency is you end up having something akin to a single budget policy. You can't have one without the other," Osborne said on Saturday.

"An unstable euro is very bad news for us, we have to ensure that our influence on important decisions like financial services is not undermined. But we do yes have to allow greater fiscal union while protecting our own national interest."

Britain has held onto its pound currency and is only part of discussions over the European debt crisis as a member of the broader European Union.

Italian Economy Minister Giulio Tremonti, however, also renewed a call for common European bonds on Saturday, saying they would be the best solution for a debt crisis which he said still risked spreading to other countries.

Speaking a day after the government adopted a 45.5 billion euro package of spending cuts and tax hikes aimed at restoring confidence in Italy's public finances, Tremonti made a renewed plea for common debt issuance in the euro zone.

"A greater degree of integration and consolidation of public finances in Europe is necessary," Tremonti told a news conference to explain the austerity package.

"The best solution would have been the euro bond, with various possible models which could have been adopted," he said.

Tremonti noted that he and Luxembourg Prime Minister Jean-Claude Juncker had long argued in favor of joint euro bonds and he believed the trend was pointing toward closer coordination of fiscal policies.

"We expect developments which we think could and should take us in a direction toward fiscal consolidation and integration in Europe," he said.

The issue of common European debt would allow weaker and more indebted states to benefit from the higher rating of countries like Germany to issue debt more cheaply.

But Germany and France have so far opposed any common debt issuance, arguing that it would remove a key driver of fiscal discipline in individual member states and push up their own borrowing costs as AAA-rated sovereigns. - Reuters

#Stocks to watch:* SP Setia, Dialog, BHIC, Dataprep

KUALA LUMPUR: Markets would continue to be cautious in the week ahead, starting Monday, Aug 15, after the volatile week which saw RM42.18 billion erased from the local market.

The FBM KLCI is down 40.78 points or 2.67% from 1,524.43 on Aug 5 to close at 1,483.67 on Friday, Aug 12. However, the FBM 100 sustained greater losses, declining 304.17 points or 2.96% from 10,267.75 to 9,963.58.

Selling pressure on Bursa Malaysia eased on Friday but buying was still cautious due to external worries from the US and Europe. Analysts said investors were not ready to go on bargain hunting for battered stocks, but there was some evidence of local fund support for the 30-stock KLCI.

On Wall Street, the Dow Jones Industrial Average had on Friday closed 125.71 points, or 1.13% higher, to 11,269.02. The Standard & Poor's 500 Index added 6.17 points, or 0.53%, to 1,178.81. The Nasdaq Composite Index rose 15.30 points, or 0.61%, to 2,507.98.

According to Reuters, it was the first two-day rally on the broader S&P 500 since July 21-22. For the week, the Dow fell 1.5% and the Nasdaq lost 1%. The S&P 500 fell on 11 of the past 15 days, dropping 12.4% in three weeks.

At Bursa Malaysia, stocks to watch include SP SETIA BHD [], DIALOG GROUP BHD [], BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd (BHIC), DATAPREP HOLDINGS BHD []'' and Sarawak Cable Bhd.

SP Setia Bhd plans to undertake a mixed residential township development project in Ulu Langat with an estimated gross development value of RM3.5 billion.

It said the project would be carried out on 1,010.5 acres of freehold land which it is purchasing from Ban Guan Hin Realty Sdn Bhd for RM330.13 million or RM7.50 per square foot.

Dialog Group Bhd's earnings rose 45.2% to RM44.87 million in the fourth quarter ended June 30 from RM30.89 million a year ago, boosted by its engineering and CONSTRUCTION [] and also plant maintenance services.

Revenue increased by 37.8% to RM374.88million from RM271.95 million. Earnings per share were 2.28 sen compared with 1.56 sen. It proposed a final single tier dividend of 18% or 1.8 sen per 10 sen share.

For the FY ended June 30, its earnings rose 24.2% to RM152.29 million from RM118.29 million while revenue increased by 6% to RM1.208 billion from RM1.139 billion. Its cash pile increased to RM274.32 million as at June 30 fromRM258.07 million a year ago.

BHIC's net profit for the second quarter ended June 30, 2011 fell to RM1.39 million from RM15.8 million earlier due to escalation in costs to complete its current projects.

Its revenue for the quarter rose to RM120.76 million from RM104.47 million. Earnings per share were 0.56 sen while net assets per share was RM1.71.

For the six months ended June 30, BHIC's net profit fell to RM11.47 million from RM31.47 million, on the back of revenue RM237.45 million.

The Edge weekly highlights Dataprep which is reinventing its business model. Newly-appointed CEO Ahmad Rizan Ibrahim fully expects the company to be back in the black this year, premised on its healthy order book of over RM100 million in projects from government-linked entities and the fact that it has paid off most of its debts and has some RM31 million in cash

The weekly also reported that electricity jobs are expected to boost Sarawak Cable Bhd.

The power cable maker's shares could be worth watching, considering its improving earnings prospects with the Sarawak government spending more on infrastructure projects, including electricity transmission.

Wild week on Wall Street ends with subdued gains

NEW YORK: After one of the most volatile weeks in memory, U.S. stocks ended higher on Friday, Aug 12 in a tentative sign that the worst of the selling may be over.

Volume was much lighter than on any other day of the week and intraday swings were far less violent than in previous days. Both signs suggested a drop in investor anxiety.

Still, the market was down for the week and posted its worst three-week decline since March 2009 when it hit 12-year lows.

About 9 billion shares traded on the New York Stock Exchange, NYSE Amex and Nasdaq, sharply lower than the daily average of nearly 16 billion shares traded earlier this week. It was the busiest week in terms of volume since October 2008.

"Today's slowdown in volume is clearly indicative of people getting a little bit more comfortable about where the market is," said Ken Polcari, managing director at ICAP Equities in New York.

Blue-chips garnered more attention from investors looking for relative safety in the equity market. Boeing gained 4.9 percent to $61.75, leading the Dow industrials.

The hope among investors is stocks are in the process of exhausting the selling and will stabilize at current levels and eventually resume an upward trend.

"Before moving higher the market needs to do some repair work and needs to build a base, and that's what we're doing right now," Polcari said.

Analysts at Bank of America/Merrill Lynch said in a note the U.S. equities market is already fairly priced for a recession. This suggests any indication to even sluggish growth could boost stocks.

U.S. markets got support on Friday from a 3.6 percent rise in European shares. A short-selling ban on financial shares by France, Italy, Spain and Belgium eased fears over recent sharp declines.

U.S. retail sales posted the biggest gains in four months in July, which also boosted buying.

The Dow Jones industrial average gained 125.71 points, or 1.13 percent, to 11,269.02. The Standard & Poor's 500 Index added 6.17 points, or 0.53 percent, to 1,178.81. The Nasdaq Composite Index rose 15.30 points, or 0.61 percent, to 2,507.98.

It was the first two-day rally on the S&P 500 since July 21-22.

For the week, the Dow fell 1.5 percent and the Nasdaq lost 1 percent. The S&P 500 fell on 11 of the past 15 days, dropping 12.4 percent in three weeks.

The recent declines reflect softening U.S. and global economic data and a market perception that government leaders in Europe and the United States were running out of options to help their sputtering economies. The downgrade of the United States' credit rating by Standard & Poor's a week ago exacerbated those views.

A report on Friday showed U.S. consumer sentiment fell in early August to the lowest level in more than three decades.

Among individual stocks, Nvidia Corp shed 4 percent to $12.88, giving back sharp gains. Late Thursday, it forecast a larger-than-expected jump in revenue but some analysts were surprised with the lack of growth in one of its much-touted processors.

Retailer Dillard's Inc slumped 18.2 percent to $41.51 after it posted quarterly profits below estimates.

Advancers beat decliners on the New York Stock Exchange by about nine-to-five, while on the Nasdaq 1,320 issues advanced and 1,239 fell.

U.S. companies on buyback binge but at whose expense?

NEW YORK: U.S. companies are pouring their cash stockpiles into buying back their own shares, betting on a Wall Street rebound rather than investing in new operations or bumping up dividends.

And though investors cheered the moves during the market's recovery rally on Thursday, Aug 11 the strategy may not ultimately pay off for shareholders as buybacks are often a sign companies see few good opportunities to expand through building an additional factory, buying equipment or acquiring another company.

Buybacks, while boosting earnings per share, can deny shareholders a dividend increase, which would allow them to decide how to spend or invest the excess cash a business is throwing off.

And when executives take the less-optimistic road it is a bad sign for a faltering economic recovery and for job creation. The U.S. unemployment rate is at 9.1 percent even as corporate earnings growth has been strong and plenty of cash has been built up on balance sheets.

Buybacks are "a way to deploy capital without really being locked into anything," said Rob Leiphart, analyst at Birinyi Associates.

The 2008 global credit crisis prompted companies to hoard cash, a strategy they are sticking with now as the economy struggles and markets are in turmoil. Federal Reserve data showed cash and short-term investments swelled to $1.91 trillion at the end of the first quarter, up 8 percent from the previous year and 45 percent from 2009.

As of August 11, U.S. companies had bought back $305.2 billion in shares so far this year, eclipsing the $300.7 billion total for all of 2010 and two-and-a-half times the 2009 amount.

While buybacks may sound nice to shareholders, Leiphart said studies have shown there is no correlation between those announcements and stock price performance.

Investors who buy shares based on company buyback announcements often have no idea when or even if those repurchases will take place, or if the companies will make the buybacks at prices that will pay off down the road.

"Some of these companies are making announcements for which they do not actually intend to do the buyback. It's simply a psychological support to their stock," said Henry Schacht, CEO of Schacht Value Investors.

And companies historically have not been the best judges of whether their shares are undervalued, buying often when they are close to their peak and failing to buy when shares are about to recover after sliding.

For example, buybacks reached a record level of $634 billion in 2007, the same year the S&P 500 peaked and began its 18-month dive.

"Do they see around corners? Do they know when the black swan is going to fly? No more than you or me," said Charles Biderman, CEO of Trim Tabs Research.

BUYBACK BANDWAGON

Buybacks can also be one strategy for companies trying to get investor focus switched away from bad news.

On Thursday, Internet company AOL announced a $250 million buyback of its shares, which had slumped 32 percent since it released quarterly earnings on Tuesday. By late Friday morning the shares had recovered some of those losses to be at $11.75 against a year low of $10.06 on Wednesday.

"I believe the stock is undervalued, and I think our operational results will be the fastest way for us to bring the value of the stock up," AOL Chief Executive Tim Armstrong told analysts earlier this week.

On Wednesday, Rupert Murdoch's News Corp, which is still enmeshed in the U.K. hacking scandal, said it would speed up a $5 billion buyback of its shares, which had shed 20 percent in a month as the company scrapped a planned takeover as it came under scrutiny for a phone-hacking scandal.

Those companies joined Covidien Plc, Kohl's, Loews, Disney, General Growth, Pfizer, Visa, Ingersoll Rand, Home Depot, Best Buy, Hartford Financial, CF Industries, Capital One, Sunoco, Fidelity National, Illinois Tool Works, Quebecor and TiVo Inc,which have all recently targeted their own shares.

For some companies, the attraction of a buyback can even trump acquisitions. Last week, payment processor Fidelity National Information Services' dropped plans to buy British software company Misys. Instead, it used the cash to buy back shares.

Still, companies are keen to show they aren't passing up good investments to grow their businesses.

Fertilizer company CF Industries says its plans to scoop up $1.5 billion of its shares will not stop it from buying up other companies or growing its operations.

"We don't believe these actions will hamper our ability to consider other opportunities to increase shareholder value through investment or acquisition when they arise," CF CEO Steve Wilson said this week.

SOAK UP THE FLOAT

Analysts warn that investors should be especially wary of companies that use buybacks simply to soak up extra shares that have entered the market through their employee compensation programs.

Those companies use buybacks to reward employees at the expense of shareholders, since the growing number of shares dilutes earnings per share for existing shareholders.

"They don't want you to see a growth in shares outstanding, because when you see this share creep, it is a horrible kind of inflation. That's a hole that's been cut in the shareholder's pocket," Schacht said.

Schacht cited Loews Corp as a good example of a company that has put its cash to good use buying its own shares.

"We've dramatically outperformed the market, and I would say a significant contributing factor to that outperformance is we bought in shares," Jim Tisch, CEO of Loews told Reuters.

Tisch said he decides himself whether the company should be in the market buying share based on the stock price and his analysis on Loew's value.

Dialog Group 4Q net profit up 45% to RM44.87m

KUALA LUMPUR: DIALOG GROUP BHD []'s earnings rose 45.2% to RM44.87 million in the fourth quarter ended June 30 from RM30.89 million a year ago, boosted by its engineering and CONSTRUCTION [] and also plant maintenance services.

It said on Friday, Aug 12 revenue increased by 37.8% to RM374.88 million from RM271.95 million. Earnings per share were 2.28 sen compared with 1.56 sen. It proposed a final single tier dividend of 18% or 1.8 sen per 10 sen share.

For the FY ended June 30, its earnings rose 24.2% to RM152.29 million from RM118.29 million while revenue increased by 6% to RM1.208 billion from RM1.139 billion.

Its cash pile increased to RM274.32 million as at June 30 from RM258.07 million a year ago.

'The results of all divisions for current financial year outperformed the previous year, in particular the engineering and construction and plant maintenance services, both in Malaysia and overseas,' it said.

Dialog added the commencement of operation by Langsat Terminal (One) Sdn Bhd in Tanjung Langsat, Johor in September 2009 for its phase one, and in April 2010 for its phase two, together with the acquisition of Fitzroy Engineering Group Ltd in April 2011 had contributed positively to the group's financial results in the current financial year.

When compared with the preceding quarter, the group's revenue for the fourth quarter of RM374.9 million and profit before tax of RM60.5 million increased by 24% and 17% respectively.

Dialog said the better result was mainly due to higher profit contribution from engineering and construction activities in Malaysia.

Westports increases prime movers to 334 units

KUALA LUMPUR: Westports Malaysia has increased its total number of prime movers to 334 after it received 55 prime movers as part of the port's on-going expansion program to cater for container volume growth.

In a statement Friday, Aug 12, Westports said the prime movers were supplied by Cargotec Terminal Solutions Malaysia Sdn Bhd.

Westports chief executive officer Ruben Emir Gnanalingam said the arrival of the new 55 prime movers was part of the original order of 90 units from Cargotec.

'We have been assured that the remainder will be delivered by September this year.

'Westports has now embarked on an expansion path in building capacity. It is also in line with the port's policy of being a supply-driven port,' he said.

Ruben said Westports had almost completed works on the first 300-meter for Container Terminal 6 and it's scheduled to be operational by mid-September this year.

The reclamation of 11 million cubic feet required for CT6 to CT9 is also well on schedule and Phase 1 will be completed by end of this year, he said.

'The port will then concurrently continue with the CONSTRUCTION [] of another 900-meter of quay length. These new Terminals will have an additional 11 cranes and is capable of handling 18,000 TEU vessels.

'This facility will be ready by mid 2013 at which point Westports will have 4.6 kilometers of quay length and 54 cranes, allowing a capacity of 9 million TEUs,' he said.

Ruben also said Westports was on target to achieve its container volume of 6.3 million TEUs (twenty-foot equivalent units) this year.

The port's volume for the first half of the year stood at 3.09 million TEUs ' a 17% increase compared with 2.65 million TEUs during the same period last year, he said.

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BHIC 2Q net profit falls to RM1.39m on higher project costs

KUALA LUMPUR: BOUSTEAD HEAVY INDUSTRIES CORP []oration Berhad (BHIC) net profit for the second quarter ended June 30, 2011 fell to RM1.39 million from RM15.8 million earlier due to escalation in costs to complete its current projects.

It said on Friday, Aug 12 that its revenue for the quarter rose to RM120.76 million from RM104.47 million.

Earnings per share was 0.56 sen while net assets per share was RM1.71.

For the six months ended June 30, BHIC's net profit fell to RM11.47 million from RM31.47 million, on the back of revenue RM237.45 million.

In a statement Friday, BHIC managing director Tan Sri Ahmad Ramli Mohd Nor said the company's projects were in the advanced stage of completion, and moving forward, it expects to increase its order book.

'Furthermore, our joint venture companies are expected to continue providing positive contributions to the Group's bottom-line.

'As for our associate, the contract to build six new Littoral Combat Ships is in its advanced stage of preparations and negotiations are expected to commence soon,' he said.

Ahmad Ramli said BHIC would continue its cost reduction efforts, particularly in the optimisation of human resource costs through operational efficiency, and optimisation of material costs through its transformation strategy.

'We will continue in developing the functional and management skills of our staff through comprehensive training and development programs to achieve our key performance indicators,' he said.

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Indonesia bars bank M&A, pending new ownership rules

JAKARTA: Indonesia's central bank temporarily barred takeovers in the banking sector, citing upcoming ownership rules, sowing more uncertainty about the regulatory environment in Southeast Asia's biggest economy.

Indonesia's expected imposition of bank ownership limits, including those on foreign investors, have already scuttled some cross-border deals. If the limits are imposed retroactively, as some expect, then several offshore investors and banks will have to cut their stakes in local lenders.

"We temporarily will not permit foreign banks to acquire domestic banks until the bank ownership regulation is issued," said Bank Indonesia spokesman Difi A. Johansyah.

The central bank is still drafting the policy and has not decided when it will be issued, he added. The bank has said earlier there was a possibility it could be issued this year, with a lengthy transition period likely.

In the meantime, even local banks won't be given permission for deals, officials said. Most deals in the Indonesian banking sector are initiated by foreigners.

The banking industry in Indonesia has been thrown into confusion ever since central bank governor Darmin Nasution said last month new limits on bank ownership were being studied. There is expectation in the industry that foreign ownership will be limited to 50 percent in banks.

If the rules are applied retroactively, foreign investors such as Singapore state investor Temasek and private equity firm TPG Capital will be forced to cut their majority stakes in Bank Danamon and BTPN , respectively.

Already, pending deals have suffered. Malaysian lender Affin Holdings said last week it has called off a plan to take up a stake in Bank Ina Perdana as the country's central bank may cap foreign ownership of domestic lenders.

"As an investor, obviously I prefer it to be open because I could get an M&A premium at some point if the bank I am in could be taken over by a foreigner," said Anand Pathmakanthan, a banking analyst at Nomura in Singapore.

"But logically they (Indonesian regulators) are not doing anything out of step with the rest of the world. Everyone protects their banks. So why should Indonesia be any different?"

Indonesia is currently the only emerging market in Asia with almost no ownership limits on banks. It is one of Asia's most fragmented banking markets, with about 2,000 lenders, including commercial and rural credit banks. Foreign lenders control about 27 percent of the country's outstanding loans.

The move comes at a time the industry is seeing strong growth.

Indonesian bank lending grew by 23.6 percent in July from a year ago, with the sector's capital adequacy ratio as a whole far above 8 percent and gross non-performing loans of below 5 percent, latest central bank data shows.

Leading Indonesian banks, Bank Mandiri and Bank Central Asia , posted strong second-quarter net profit growth, reflecting buoyant domestic demand for loans in the world's fourth-most populous country.

RETROACTIVE RULE?

Indonesia currently allows foreign lenders to hold up to 99 percent of local banks. The banking sector was opened up to spur growth after the 1997 financial crisis led to the closure of many domestic lenders. Any single entity trying to own 25 percent or more needs prior approval.

Bank Indonesia deputy governor Halim Alamsyah, in charge of bank supervision, told Reuters in an interview early this year that three local banks were the target of foreign buyers.

It is unclear if the new policy would exempt state banks, including Mandiri and Bank Rakyat Indonesia , and be applied retroactively.

"That would complicate things a lot more," said Nomura's Pathmakanthan. "It is much easier to just say from here onwards this is what we feel, this should be the regulation. Retrospectively, yes that is different. There would be a lot of uncertainties about pricing and time frames, etc," he added.

Indonesia's central bank is also assessing bank risk controls in the wake of alleged embezzlement at Citi Indonesia and local Bank Mega .

Governor Nasution previously said he did not want banks to be controlled by one shareholder to raise internal controls, at a hearing last year in parliament that criticised the government's bailout of Bank Century, now called Bank Mutiara , during the financial crisis.

"Bank Indonesia wants banks to be more prudent by reducing risk factors," said Teguh Hartanto, an analyst at Bahana Securities in Jakarta.

Bank shares were unaffected on Friday by the announcement. Danamon was up 5 percent. BTPN and Mandiri were down, but in line with the broader market. ' Reuters

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Pelikan sees 20m shares crossed 17% below mkt price

KUALA LUMPUR: Pelikan International Corp Bhd saw 20 million of its shares crossed in an off-market deal at 75.8 sen apiece.

Stock market data on Friday, Aug 12 showed the shares were crossed at 75.8 sen, which was 17.1% or 15.7 sen below the last traded price of 91 sen.

Money mkts take in $50bln, stocks, bonds lose-banks cite EPFR

LONDON: The world financial markets sell-off led to a cash exodus out of almost every asset class over the past week but money market funds took in $50 billion, banks said on Friday, Aug 12, quoting data from fund tracker EPFR Global.

That is in contrast to last week when money market funds, a traditional safe haven for investor cash, saw a record outflow of $69.9 billion. Money funds suffered outflows in weeks prior to that as well amid fears about exposure to banks, especially in Europe.

Data released to clients late on Thursday by Boston-based EPFR showed $19 billion flee developed market stocks, the second biggest loss in recent history, banks said. Emerging equity funds posted outflows of $7.7 billion, the largest weekly outflow since January 2008 and the third largest in history.

Global stock markets have sold off heavily this month, with the benchmark MSCI index down almost 11 percent in August.

Banks said in their research notes that funds had pulled $2.18 billion from global fixed income, suggesting big redemption pressures in high-yield bonds. Emerging debt funds, in high favour with investors in recent months, saw their first outflows since March, shedding $607 billion, the data showed. - Reuters

Regional markets struggle to sustain gains

KUALA LUMPUR: Regional markets, including Bursa Malaysia, struggled to sustain their gains and closed mixed on Friday, August 12 following European stock markets struggling early on Friday as a ban on short-selling of financial sector shares failed to put a lid on concerns over banks and the spread of the euro zone's debt crisis to France.

World shares edged lower after sharp gains a day earlier as investors resumed a sell-off of riskier assets that has knocked more than 10 percent off stock prices in the past two weeks, according to Reuters.

The FBM KLCI closed 7.21 points higher at 1,483.67, lifted by gains at select blue chips. The index had earlier risen to its intra-day high of 1,488.29.

Gainers led losers by 536 to 265, while 269 counters traded unchanged. Volume was 1.21 billion shares valued at RM1.87 billion.

At the regional markets, the Shanghai Composite Index added 0.45% to 2,593.13, Hong Kong's Hang Seng Index edged up 0.13% to 19,620.01 and Singapore's Straits Times Index up 1.94% to 2,850.59.

Meanwhile, Japan's Nikkei 225 fell 0.20% to 8,963.72, Taiwan's Taiex was down 1.06% to 7,637.02 and South Korea's Kospi lost 1.33% to 1,793.31.

The gainers on Bursa Malaysia were led by Tahps that rose 25 sen to RM4.45; Petronas Dagangan added 24 sen to RM16.78, YTL Cement 21 sen to RM4.85, Far East and Panasonic 20 sen each to RM7.20 and RM23.70, Petronas Chemicals 18 sen to RM6.33, Sungei Bagan 17 sen to RM2.82, UM Land and S P Setia 15 sen each to RM1.90 and RM3.85, while United Malacca rose 14 sen to RM6.95.

Among the decliners, BAT fell 30 sen to RM43.62, Petronas Gas 16 sen to RM13.02, Lafarge Malayan Cement 13 sen to RM6.87, Knusford 12 sen to RM1.52, HLFG 10 sen to RM11.84, KYM seven sen to RM1.80 while Perak Corp and Kheesan were down six sen each to RM1.23 and 48 sen.

The actively traded stocks included DVM, AirAsia, Axiata, MAS, DBE Gurney, Sanichi and HWGB.

SP Setia plans mixed township in Ulu Langat, GDV RM3.5b

KUALA LUMPUR: SP SETIA BHD [] plans to undertake a mixed residential township development project in Ulu Langat with an estimated gross development value of RM3.5 billion.

The company said on Friday, Aug 12, the project would be carried out on 1,010.5 acres of freehold land which it is purchasing from Ban Guan Hin Realty Sdn Bhd for RM330.13 million or RM7.50 per square foot.

'The proposed acquisition which will be satisfied entirely in cash will not have any effect on the share capital and major shareholders of SP Setia,' it said.

SP Setia said the proposed acquisition offered 'a good opportunity to tap into strong demand for attractively priced homes by first time owners and other home buyers in the Semenyih-Kajang corridor'.

It said the proposed acquisition would enable it to further reinforce and expand its core business by replicating its proven township development model in an emerging growth corridor presently not served by the group's more matured projects in the Klang Valley.

SP Setia said it had established a solid reputation for delivering quality homes within its projects.

It cited its flagship Setia Alam township project in the Shah Alam-Klang corridor has seen the starting price for a standard 20 ft by 70 ft double-storey terrace house more than triple from RM218,000 to RM668,000 in just over seven years.

It pointed out the significant price increase achieved in Setia Alam was underpinned by the substantial investments and enhancements to the infrastructure, connectivity, amenities and overall livability of the township.

On the proposed land which it was acquiring, SP Setia said the terrain of the land is generally undulating and is zoned for mixed housing development.

It said the land was midway between Semenyih, Bangi old town and Beranang. It is 12km south of Kajang town and 25 km south of Kuala Lumpur city centre.

Proton open to strategic partnership, says MD

SHAH ALAM: PROTON HOLDINGS BHD [] is open to any form of strategic partnership for the benefit of Malaysian automotive industry, said group managing director Datuk Seri Syed Zainal Abidin Syed Mohamed Tahir.

"What is important, is not for Proton but for the industry, which is very strategic and considered one of the most important components in the manufacturing sector.

"We are already cooperating in our operations like vendor development and joint-sourcing of raw materials. But to undertake something like Malaysia Airline, it is really up to the government," he told reporters here on Friday, Aug 12 when asked if Proton and Perusahaan Otomobil Kedua Sdn Bhd (Perodua) were looking to collaborate.

On Tuesday, AirAsia and MAS announced they had entered into a comprehensive collaboration framework, which included a major share swap and a collaboration agreement, to explore opportunities to cooperate on a broad range of areas.

Meanwhile, Syed Zainal Abidin, who earlier launched Proton's 1Malaysia Security Campaign, said the company expected the better sales momentum, seen in the first half of the year, to continue into the second half, driven by growing customer confidence and demand.

Proton sold 74,519 units in the first half and regained its position as the country's top-selling car manufacturer rivalling Perodua's sale of 62,584 units.

He said the national car manufacturer, which sold 157,274 vehicles last year, remained on track to clinch higher sales of between four and five per cent this year despite the amendment to the Hire Purchase Act 1967 which earlier slowed down sales.

Asked whether the company could overtake Perodua in total sales in the second half, he said: "To be number one is not our objective. Our priority is to introduce the best models in the market and provide good service." - Bernama

Building material, forest and packaging sectors in Asia-Pacific to face uneven conditions ' ...

KUALA LUMPUR: Business conditions for the building materials, PLANTATION []s and forest products, and paper and packaging industries in the Asia-Pacific region is expected to be uneven over the next 12 months as economic performance becomes more disparate, said Standard & Poor's Ratings Services.

In a report titled "Building Materials, Forest, And Packaging Sectors In Asia-Pacific Are Likely To Face Uneven Conditions" released Aug 12, S&P said ''companies with high exposure to the rapidly growing economies of China, India, and Southeast Asia should continue to generate healthy revenue growth, but these companies will be most exposed if demand softens.

On the other hand, sluggish economic growth or weakening property sentiment in Japan, Korea, and Australia is already limiting the performance of rated companies in these markets and we believe this trend may continue over the next 12 months, it said.

S&P's credit analyst Suzanne Smith said an emerging risk for the industry in Asia-Pacific was the rising cost of raw material, energy and personnel expenses.

"We believe the companies in the cement, glass, palm oil refining, paper and packaging sub-sectors will be most sensitive to this risk,' she said.

These companies are likely to face margin erosion over the next 12 months as price hikes become more difficult to implement due to increasing competition after rapid capacity expansion, she said.

"We also expect Australia's proposed carbon tax will adversely affect the building materials sector there but we do not believe it will materially affect the ratings on any of the companies we rate in this sector at this stage," she said.

Smith said rising costs, especially for wages and fertiliser, had not significantly affected companies in the forest and plantation sector in Asia-Pacific as higher production and market prices partly offset the cost increases.

'In China, we expect some industry players in plantations and forest products will struggle to recover from allegations of accounting irregularities and uncertainties on business sustainability despite a continuation of shortage of domestic wood fiber and timber supplies.

'Companies across the sub-sectors will continue to add capacity this year and next to take advantage of growth prospects in the local markets and strengthen their competitive position,' said Smith.

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Latexx 2Q earnings slip 18.3% to RM17.6m

KUALA LUMPUR: LATEXX PARTNERS BHD [] reported a 18.3% declined in earnings to RM17.60 million in the second quarter and remained cautious about the glove industry, expecting to be challenging in the near to mid-term.

It said on Friday, Aug 12 the earnings were lower than the RM21.55 million a year ago due to the persistently high raw material prices and the adverse foreign exchange rate.

Profit before tax was RM20.42 million, a decline of 15.3% from RM24.12 million a year ago.

Latexx Partners said its revenue was flat at RM134.36 million compared with RM134.48 million while earnings per share were lower at 7.93 sen versus 10.39 sen. It declared a dividend of 2.5 sen per share.

When compared with the first quarter ended March 31, it said earnings rose 38.3% to RM17.60 million from RM12.73 million.

Profit before tax rose 36.7% to RM20.42 million from RM14.94 million while revenue jumped 41.8% to RM134.36 million from RM94.75 million.

'The growth in the current quarter compared to the preceding quarter was mainly spurred by higher sales volume due to stronger market demand,' it said.

In its outlook, it said the industry would remain to be challenging in the near to mid term. It noted the natural rubber latex price had softened to below RM10 per kg since June 2011 was expected to be hovering in this region in the near to mid term.

On the other hand, nitrile latex price has been on the increasing trend and the trend is foreseen to be persistent in the near to mid term.

Latexx Partners said despite the contradicting price trend of the two raw materials type, raw material price disparity will still remain and is expected to sustain cost advantage for nitrile gloves.

'In other words, it is estimated that nitrile gloves will continue to have a cost advantage over natural rubber latex gloves.'' Nitrile penetration is also expected to continue with strong contribution across all geographical markets,' it said.

Latexx Partners said the group would continue to grow its business by focusing on the nitrile range, especially on the non-medical sectors.

Korea, France to invest RM2b in ECER biotech sector

KUALA LUMPUR: South Korea's CJ CheilJedang Corporation and France's Arkema SA are investing a combined RM2 billion in Malaysia's industrial bioTECHNOLOGY [] sector, the largest investment to-date for the sector, Datuk Seri Najib Tun Razak said.

The Prime Minister said on Friday, Aug 12 the plant was expected to generate about RM20 billion of cumulative sales by 2020 and provide employment opportunities to almost 500 local knowledge workers.

'This project will be a significant economic boost to the East Coast Economic Region (ECER) Malaysia and more importantly the special economic zone,' he said.

Najib was speaking at the signing of the collaboration among CJ-ARKEMA, Malaysian Biotechnology Corporation (BiotechCorp) and East Coast Economic Region Development Council (ECERDC).

The 80,000 ton bio-methionine production plant and the thiochemicals platform will occupy 70 ha in the ECER special economic zone in the Kertih Polymer Park, Terengganu and will be operational in 2013.

Among those present to witness the announcement were Deputy Prime Minister Tan Sri Muhyiddin Yassin, Menteri Besar of Terengganu Datuk Seri Ahmad Said, Minister in the Prime Minister's Department'' Tan Sri Nor Mohamed Yakcop, Minister of Science, Technology and Innovation, Datuk Seri Dr Maximus Johnity Ongkili.

Also present were CJ CheilJedang Asia executive vice president & chief executive officer Jin-Hyun Kim, Arkema Asia Pacific president Dominique Namer while BiotechCorp was represented by chief executive officer Datuk Dr Mohd Nazlee Kamal and representing ECERDC was its CEO, Datuk Jebasingam Issace John.

The investment will be a breakthrough for the global feed additives industry as for the first time, the production of bio-methionine will pool together both biotechnology advancement and applied chemistry. Bio-methionine is a sulphur amino acid widely used for animal feed in Asia.

Ahmad Said expected the plant to give the Kertih Polymer Park a boost, adding the investment augured well for potential investments, especially in the biotechnology field and downstream activities.

BiotechCorp chief executive officer Datuk Dr Mohd Nazlee Kamal said: 'The RM2-billion investment will further stimulate the growth of the industrial biotechnology sector and provide commercial opportunities for the industry especially as Malaysia moves into the commercialisation phase of the National Biotechnology Policy (NBP).

'More significantly, it's a leap for Malaysia as a knowledge intensive and cost effective industrial biotechnology hub in the region.'

BiotechCorp with ECERDC are the joint promoters of the project.

'The joint-venture collaboration marks a major milestone for ECER and our Special Economic Zone. This will not only mark Malaysia as a hub for Research and Development (R & D) activities, but will also provide employment and entrepreneurial opportunities in high income, value added sectors for the people in the East Coast region,' said Jebasingam.

He added among the key reasons for CJ-ARKEMA to locate its plant in the ECER SEZ was the attractive fiscal and non-fiscal incentives, location suitability and manpower availability. The ECER is ready to receive investments, especially in high value sectors. The Special Economic Zone is well positioned to tap into the Asia Pacific market.

The ECER is an economic development corridor in Malaysia comprising of Kelantan, Terengganu, Pahang and the district of Mersing in Johor.

Both CJ and ARKEMA are globally renowned chemical and industrial biotechnology companies with strong portfolios in commercialised products. CJ is a leading producer of fermentation-based products such as feed amino acids, MSG, and nucleotides with global manufacturing and business operations in 6 continents.

Limited gains at mid-day

KUALA LUMPUR: The FBM KLCI remained in positive territory at the mid-day break on Friday, Aug 12 but gains were limited as overall sentiment at some of the regional markets turned tepid with the Nikkei slipping into the red.

Asian markets initially rose today as investors picked up battered stocks in bargain hunting after the overnight rally at Wall Street.

Wall Street rose 4% overnight on high trading volume, with relatively low valuations and short-term oversold conditions attracting buyers, though a slide in US stock futures in early Asian trade kept the region's climb modest, according to Reuters.

On Bursa Malaysia, the FBM KLCI was up 7.70 points to 1,484.16 at the mid-day break, lifted by gains at selected blue chips. Gainers led losers by 458 to 199, while 267 counters traded unchanged. Volume was 648.69 million shares valued at RM922.72 million.

The ringgit weakened 0.03% to 2.9980 versus the US dollar; crude palm oil futures for the third month delivery rose RM25 per tonne to RM2,988, crude oil fell 73 cents per barrel to US$84.99 while gold eased 35 cents an ounce to US$1,763.75.

At the regional markets, Japan's Nikkei 225 was down 0.25% to 8,959.60, Taiwan's Taiex shed 0.04% to 7,716.27 and South Korea's Kospi edged down 0.16% to 1,814.54.

Meanwhile, Hong Kong's Hang Seng Index gained 1.11% to 19,812.02, the Shanghai Composite Index added 0.52% to 2,595.04 and Singapore's Straits Times Index rose 1.34% to 2,833.59.

Petronas Dagangan was the top gainer this morning and was up 26 sen to RM16.80; Batu Kawan added 22 sen to RM15.58, MSC 18 sen to RM4.54, Fima Corp, BLD PLANTATION []s and Petronas Chemicals rose 16 sen each to RM5.56, RM6.61 and RM6.31 respectively, UMS and Carlsberg up 13 sen each to RM1.70 and RM6.91, while YTL Cement and KrisAssets added 12 sen each to RM4.76 and RM4.06.

Lafarge Malayan Cement was the top loser and fell 19 sen to RM6.81, Knusford 12 sen to RM1.52, APM Automotive 10 sen to RM4.70, Litrak and To Glove nine sen each to RM3.54 and RM5.21, Shell and Ann Joo each to RM10.02 and RM2.52, while KYM lost seven sen to RM1.80.

The actives included Dutaland, AirAsia, MAS, Axiata and HWGB.

M'sia Smelting Corp extends gains

KUALA LUMPUR: Shares of MALAYSIA SMELTING CORPORATION [] Bhd(MSC) extended their gains on Friday, Aug 12 after the company declared a gross interim dividend of 12 sen per share to be paid on Sept 28.

At 12.30pm, MSC added 18 sen to RM4.54 with 121,000 shares traded.

The company said on Aug 10 that its net profit for the second quarter ended June 30, 2011 surged to RM36.3 million from RM7.98 million a year earlier due mainly to better results from its Butterworth smelting operations and investments in KM Resources Inc

''

MRCB to raise RM500m from debt market, says UOB Kay Hian

KUALA LUMPUR: MALAYSIAN RESOURCES CORP [] Bhd (MRCB) plans to boost its war chest and this could see it raising about RM500 million from the debt market by end-2011, says UOB Kay Hian Malaysia Research said.

It said in a research note on Friday, Aug 12 that MRCB remains ambitious in taking up more projects in the future, especially for the township development in Sungai Buloh.

'We gather that the land in the RRI (Rubber Research Institute) land will not come cheap. Hence, the management intends to strengthen its war chest by raising about RM500 million from the debt market by end-2011,' it said.

UOB Kay Hian Malaysia Research said MRCB's 2Q11 bottom line was within expectation. The company reported 2Q11 net profit of RM19 million (down 11.9% on-quarter, up 55.4% on-year).

'The group achieved RM40.6 million in 1H11, accounting for 44% of our and 46% of market forecasts for the full year. Results are in line with our and market expectations,' it said.

The research house expected a better 2H11 as it believes there could be margin expansion in the CONSTRUCTION [] segment due to acceleration in construction jobs which are nearing tail ends such as the Permai Psychiatric Hospital and the Eastern Dispersal Link, Johor.

'In addition, we expect stronger property sales and margin across the board, especially from the healthy sales in Q Sentral,' it said.

Maybank targets 70% share with enhanced eDividend

KUALA LUMPUR: MALAYAN BANKING BHD [] (Maybank) plans to increase its market share in electronic dividend payments to 70% from 30% by 2013 with the introduction of its enhanced eDividend system.

It said the new system, launched on Friday, Aug 12 would bring to the market additional benefits to customers which included greater cost savings, convenience, security and flexibility.

Maybank deputy president and head of global wholesale banking (GWB) Abdul Farid Alias said the enhanced eDividend service was another milestone for Maybank's online cash management system, Maybank2e.net.

'This service incorporates best in class features including automated report generation, email and SMS notifications and the shortest lead time requirement of only 2 days before payment date for files to be uploaded,' he said.

Farid said Maybank was the first in Malaysia to partner with the Lembaga Hasil Dalam Negeri (Income Tax Department) to automate the taxation process of dividends, which would eliminate'' hardcopy tax vouchers.

'This means that shareholders no longer have to fill this section in their income tax returns when using the e-filing service as all their relevant dividend payment records will be captured. We are working towards linking dividend payments and tax information to Maybank account holders through our popular online banking portal Maybank2u,' he said.

Farid said for registrars and corporate clients, this new service included greater cost savings, convenience, security and flexibility.

'For a start, the auto generation of reconciliation files linked to our payments systems will ensure accuracy and punctual delivery of reconciliation reports which means straight-through processing. As a result, our service is more efficient as this reduces Maybank's per transaction cost. This benefit is then passed on to our clients,' he added.

'We also offer better convenience and client satisfaction for both parties. Shareholders are kept informed of their dividend payments via email and SMS notification while registrars and corporate clients enjoy the flexibility of our system which can cater to customised file formats even though they are of differing operating systems.'

Maybank a client base of about 20,000 customers and a leading market share of 26% in corporate deposits. Its Maybank2e.net system processed over 80 million transactions valued at about RM800 billion last year and it has been growing at an average of 30% annually.

Hong Leong Bank, EON Bank integration completed

KUALA LUMPUR: The integration of HONG LEONG BANK BHD [] and EON CAPITAL BHD []'s unit EON Bank has been completed, resulting in a combined 329 branches and over 1,400 self-service terminals.

A HL Bank official said on Friday, Aug 12 the integration was successfully completed and the customers could now enjoy expanded delivery channels, products and services through the combined branches and terminals.

EON Capital Bhd is expected to be de-listed either by the third quarter or early fourth quarter of this year barring any unforeseen circumstances.

On Oct 4, 2010, HL Bank's shareholders passed the resolution for the acquisition of the assets and liabilities of EON Capital Bhd for RM5.06 billion at the EGM.

KLCI stages mild rebound at mid-morning

KUALA LUMPUR: The FBM KLCI staged a mild rebound in early trade on Friday, Aug 12 in line with the advance at key regional markets following the overnight rally at Wall Street.

Wall Street rose 4% overnight on high trading volume, with relatively low valuations and short-term oversold conditions attracting buyers, though a slide in US stock futures in early Asian trade kept the region's climb modest, according to Reuters.

The FBM KLCI rose 10.10 points to 1,486.56 at 10.05am, lifted by gains at select blue chips.

Gainers led losers by 394 to 91, while 184 counters traded unchanged. Volume was 287.4 million shares valued at RM341.82 million.

At the regional markets, Hong Kong's Hang Seng Index rose 1.31% to 19,851.02, Japan's Nikkei 225 edged up 0.17% to 8,997.55, the Shanghai Composite Index added 0.49% to 2,594.21, Taiwan's Taiex rose 1.05% to 7,800.28, South Korea's Kospi up 0.89% to 1,833.63 and Singapore's Straits Times Index was up 1.26% to 2,831.55.

Strategists at The Royal Bank of Scotland said it has been a very choppy week for markets to say the least, adding that risk appetite forged a comeback yesterday in the absence of additional grim news with equities leading the way

'Data releases have had modest impact on markets lately with the broader risk on/off sentiment the key driver.

'Friday's US retail sales and Michigan confidence numbers are worth watching but are unlikely to contribute significantly to the prevailing market sentiment,' it said in a note Aug 12.

On Bursa Malaysia, Petronas Dagangan was the top gainer and added 26 sen to RM16.80; F&N was up 22 sen to RM18.30, BAT 18 sen to RM44.10, Cycle & Carriage, BLD PLANTATION []s, Petronas Chemicals and Tradewinds rose 16 sen each to RM3.74, RM6.61, RM6.31 and RM8.65 respectively, while KLK and Genting added 14 sen each to RM21.04 and RM10.18.

Among the decliners, Asia File fell 14 sen to RM3.70, Ta Ann down 12 sen to RM5.18, Maybulk seven sen to RM2.01, Sozo 6.5 sen to 47sen, KYM and Top Glove six sen each to RM1.81 and RM5.24 while Fiamma fell five sen to 92 sen.

Dutaland was the most actively trade counter with 19.96 million shares done. The stock added 1.5 sen to 62 sen.

Other actives included MAS, AirAsia, HWGB and Genting.

AirAsia still in turbulent territory

KUALA LUMPUR: AIRASIA BHD [] shares extended their losses in active traded at mid-morning on Friday, Aug 12 as investors still appeared to view its tie-up with national carrier MALAYSIAN AIRLINE SYSTEM BHD [] as not entirely beneficial to the low cost carrier.

At 10.40am, AirAsia fell five sen to RM3.45 with 12.46 million shares traded.

UOB Kay Hian Malaysia Research on Aug 10 had downgraded AirAsia to a Sell with a lower target price of RM3.50 from RM4.60.

The research house said that while an alliance between AirAsia and MAS would benefit Khazanah Nasional Bhd, it did not see AirAsia getting any benefit.

Under the Aug 9 collaboration, Khazanah Nasional Bhd, which owns 69.5% in MAS, will take up a 10% of shares in AirAsia while Tune Air Sdn Bhd, which owns some 23% in AirAsia will hold 20.5% shares in MAS.

Meanwhile, MAS was up six sen to RM1.86 with 11.11 million shares done.

MAS had yesterday announced the appointments of Tan Sri Anthony Francis Fernandes and Datuk Kamarudin Meranun ''as its directors.

MRCB edges up in early trade

KUALA LUMPUR: MALAYSIAN RESOURCES CORP []oration Bhd (MRCB) shares edged up in early trade on Friday, Aug 12 after the company said it was on track to achieve revenue of RM1.3 billion for the year.

At 9.12am, MRCB added two sen to RM2.25 with 2.06 million shares traded.

MRCB's turnover for the six months ended June 30, 2011 rose to RM456.34 million from RM363.55 million a year earlier. For the six months ended June 30, MRCB's net profit rose to RM40.63 million from RM22.09 million.

Its net profit for the second quarter ended June 30, 2011 jumped 55.5% to RM19.03 million from RM12.24 million a year ago. Revenue for the quarter rose to RM234.84 million from RM173.87 million.

''

KKB rises on contract to supply pipes

KUALA LUMPUR: KKB ENGINEERING BHD [] shares rose on Friday, Aug 12 after its subsidiary Harum Bidang Sdn. Bhd has secured a project from Kumpulan Bina Emas Sdn Bhd for a rural water supply project. The contract was to supply water pipes and pipe fittings.

At 9.18am, KKB added five sen to RM1.75 with 38,300 shares traded.

It said the duration of the supply contract was about nine months, starting from the fourth quarter of 2011 and the contract sum was RM19.4 million

''

HDBSVR maintains Buy on MRCB

KUALA LUMPUR: Hwang DBS Vickers Research is maintaining its Buy call and sum of parts based target price of RM3.25.

It said on Friday, Aug 12 the recent price weakness is an attractive opportunity to increase exposure in a growing GLC-linked contractor and developer with improving earnings delivery and visible share price catalysts.

HDBSVR said the 2Q11 net profit of RM19 million (down 12% on-quarter but up 55% on-year) is in line with its and consensus' full year estimates.

'The 2Q11 CONSTRUCTION [] EBIT of RM6.9 million (down 60% on-year, lower than RM14.5 million in 1Q11) was driven by its RM1.2 billion outstanding order book,' it said.

The research house said the property EBIT was RM31.2 million (up six-fold on-year), driven by on-going works at Lot G and some contribution from Lot B strata title offices (60% sold at RM1,200 psf).

'Property margins were strong at 28% vs 24% in the previous quarter, lifted also by strong ASP for Lot B. The impending launch of Lot D (RM1.4bn, ASP RM1,100 psf) next month will ensure stronger property earnings going forward,' it said.

MBM advances on interim dividend

KUALA LUMPUR: MBM RESOURCES BHD [] (MBMR) shares advanced in early trade on Friday, Aug 12 after the company declared a first interim dividend of 6 sen per share exempted (single tier dividend) for the financial year ending Dec 31, 2011 to be paid on Sept 15.

At 9.27am, MBMR added seven sen to RM3.04 with 51,000 shares traded.

Its net profit for the second quarter ended June 30, 2011 fell 45.6% to RM21.11 million from RM38.78 million a year earlier, due mainly to full impact of the parts supply disruption from the recent earthquake in Japan.

Revenue for the quarter dipped to RM382.02 million from RM404.82 million. Earnings per share was 8.69 sen while net assets per share was RM4.36.

For the six months ended June 30, MBMR's net profit fell to RM59.51 million from RM78.72 million in 2010, on the back of revenue RM791.83 million.

Reviewing its results, MBMR said on Thursday, Aug 11 that its overall performance was impacted by the shortage of parts supply as a result of the earthquake in Japan, of which the full impact was felt in the second quarter

''

Alam Maritim up in early trade

KUALA LUMPUR: ALAM MARITIM RESOURCES BHD [] shares advanced on Friday, Aug 12 after it secured separate contracts worth a total RM20.16 million from Petronas Carigali Sdn Bhd to supply an accommodation vessel, and a workboat to a local oil and services company.

At 9.31am, Alam added three sen to 79 sen with 265,000 shares done.

It said on Thursday, Aug 11 that its unit Alam Maritim (M) Sdn Bhd had received the letter of awards from Carigali and the local company for the contracts.

Alam Maritim said the contract with Carigali, which has a period of 138 days, will have a maximum daily extension option of 30 days.

Meanwhile, the contract for the work boat was only for 30 days with no specific extension option.

The contracts commenced in July 2011, it said.

The company said the contracts would contribute positively to its earnings for the financial year ending Dec 31, 2011.

''

Nikkei rebounds above 9,000 as world stocks stabilise

TOKYO: The Nikkei average bounced back above the crucial 9,000 line on Friday, recouping some of the hefty losses sustained this week, after global equities rebounded on bargain-hunting supported by a slight dip in U.S. jobless claims.

The benchmark Nikkei average opened up 0.9 percent at 9,064.17 on Friday, while the broader Topix gained 1 percent to 778.78. ' Reuters

CIMB Research: KLCI could attempt to cross 1,490

KUALA LUMPUR: CIMB Equities Research said the FBMKLCI could make another attempt to swing past the 1,490-1,500 resistance targets on Friday, Aug 12.

'However, we wish to caution investors that sustainability is the biggest challenge now. With the candles trading below its key moving averages, we expect selling pressure to accelerate when prices approach the 1,500 psychological level,' it said.

CIMB Research said on the downside, the first support is seen at the 1,445 levels while breaching Tuesday's low of 1,423.47 would spell more trouble for the local bourse.

'Strategy wise, continue to unload on strength looks like a good option here,' it said.

CIMB Research has Technical Buy on BIMB

KUALA LUMPUR: CIMB Equities Research has a Technical Buy on BIMB HOLDINGS BHD [] at RM2.09 at which it is trading at a price-to-book value of 1.3 times.

It said on Friday, Aug 12 that despite recent consolidation, prices continue to hold on steady within its bullish flag pattern. This shows that prices could still make one more upleg to retest its previous high of RM2.47.

'However, in the immediate term, we see resistance at RM2.20-RM2.32,' it said.

CIMB Research said aggressive traders may start to nibble now. Nevertheless, always put a stop at below its previous swing low of RM2.00 to keep risk low.

Trading could be choppy in the near term due to the lethargic technical readings. MACD signal line is still heading south while RSI is also below the 50pts mark.

BIMB provides all aspects of Islamic banking services and also'' underwrites family and general takaful.

CIMB Research has Technical Sell on Press Metal

KUALA LUMPUR: CIMB Equities Research has a Technical Sell on PRESS METAL BHD [] at RM1.83 at which it is trading at a price-to-book value of 1.0 times.

It said on Friday, Aug 12 Press Metal tried to build a base around the RM1.74-RM1.92 levels after prices breached its triangle support.

'Looking at the chart, we think this is an uphill task. With the candles trading below its key moving averages, buying momentum could be weak in the near term,' it said.

CIMB Research said although it does not discount the possibility of a technical rebound, near term gains are likely capped at RM1.92-RM2. The latter being the 38.2% FR level.

'Hence, selling into strength looks like a good option here,' it said.

The research house said Press Metal's MACD is below the zero line while RSI is lingering below the 30pts mark.

Press Metal manufactures and markets aluminum products. It also operates environmental business including treating toxic waste, recycling waste while it also markets gypsum board.

Wall Street roars back but selling may return

NEW YORK: Stocks shot up 4 percent on Thursday, Aug 11 as bargain-hungry investors overcame the recent wave of fear that drove selling over the last two weeks.

Thursday's rally marked the second bounce in a yo-yo week. After a sell-off that pushed the S&P 500 down as much as 17 percent since July 22, the market is showing some signs of regaining its footing.

"It's a bungee cord market. We've fallen off of a small bridge, the bungee cord bounced us up, and oscillations will diminish, but we're still bouncing around," said Fred Dickson, chief market strategist at D.A. Davidson & Co., in Lake Oswego, Oregon.

Investors used results from Cisco and a slight dip in weekly U.S. jobless claims as the catalyst to snap up beaten-down stocks. Worries about the spread of the European debt crisis were also somewhat alleviated after news of a meeting between France's Nicolas Sarkozy and Germany's Angela Merkel set for Tuesday.

Financials outpaced other S&P 500 sectors after leading losses in the previous session. But bank borrowing costs were under some pressure overseas.

The CBOE Volatility Index, known as the VIX, shed 9.3 percent, though it remained near levels not seen in over a year. The day's trading volume on the New York Stock Exchange, NYSE Amex and Nasdaq, was 12.99 billion -- well above the year's estimated daily average of 7.8 billion.

The Dow Jones industrial average surged 423.37 points, or 3.95 percent, to 11,143.31. The Standard & Poor's 500 Index shot up 51.88 points, or 4.63 percent, to 1,172.64. The Nasdaq Composite Index jumped 111.63 points, or 4.69 percent, at 2,492.68.

"We're seeing a net flow of buy orders from retail investors here, so they're looking for bargains. I have not had anybody call me and say, 'Here's what I own. Tell me what I ought to sell,' and I've seen that in other high-volatility periods," Dickson said.

After the close, Nvidia Corp shares jumped 15.6 percent to $15.50 after the graphics chipmaker gave a quarterly revenue forecast that exceeded analysts' average forecast.

SOME SIGNS POINT DOWN

While the major indexes showed strong gains on Thursday, the S&P 500 has fallen for 11 of the past 14 sessions.

Analysts said they still awaited a bottom in the correction that has taken the S&P 500 down 14 percent from its April 29 closing high.

"The trend is downward now. We're having a big up day, but it's been very volatile. We've been up against resistance for a little while in the 1,170 level in the S&P 500 ... our next level I believe is 1,188," said Stephen J Guilfoyle, U.S. economist for Meridian Equity Partners and institutional sales trader on the NYSE floor.

One sign the market's downturn may not be over is a measure of stocks with 52-week highs versus 52-week lows, according to Bruce Zaro, chief technical strategist at Delta Global Asset Management in Boston.

"Some days need to pass before that indicator reverses," which would then suggest a bottom, he said.

Among the day's best sectors, the S&P financial index jumped 6.3 percent, while the semiconductor index gained 5.2 percent. Another top advancer was the Dow Jones Transportation Average, up 4.3 percent.

Retailers also provided support after Kohl's Corp advanced 7.3 percent to $47.50 after the moderate-priced department store chain's quarterly earnings beat estimates and it raised its full-year profit view. The S&P consumer discretionary index rose 4.5 percent.

Labor Department data showed new U.S. claims for unemployment benefits dropped to a four-month low last week, a dose of better news after a spate of soft economic data.

Cisco Systems Inc jumped 16 percent to $15.92 a day after it reported quarterly revenue and profits that topped scaled-back expectations.

Advancing stocks outnumbered declining ones on the NYSE by about 12 to 1 and on the Nasdaq by about five to one. - Reuters

US jobs data strikes optimistic note for economy

WASHINGTON: The number of Americans claiming new jobless benefits fell to a four-month low last week, a sliver of hope for an economy battered for days by a credit rating downgrade and falling share prices.

The jobless claims data released by the Labor Department on Thursday, Aug 11 eased concerns that the economy was heading back into recession, as feared by investors, and sparked a rally on Wall Street that lifted stocks 4 to 4.7 percent.

Initial claims for state unemployment benefits fell 7,000 to a seasonally adjusted 395,000, the Labor Department said, the lowest level since early April. Economists had expected a reading of 400,000.

"We are not necessarily on the verge of another dip in economic activity," said Millan Mulraine, a senior macro strategist at TD Securities in New York.

"The level of claims at this point is more consistent with at least no deterioration in labor market conditions and at best an economy that is adding jobs at about 200,000 (a month)."

However, the optimism generated by the claims report was dampened somewhat by a jump in the trade deficit to $53.1 billion in June, the largest since October 2008, from $50.8 billion in May.

As a result of the wider trade shortfall, economists estimated the second-quarter's already weak annual growth pace of 1.3 percent could be revised to 0.9 percent.

The government will release its second estimate for second-quarter gross domestic product on August 26. The economy grew at a 0.4 percent rate in the first quarter.

The Federal Reserve said on Tuesday that economic growth was considerably weaker than expected and unemployment would fall only gradually. The U.S. central bank promised to keep interest rates near zero until at least mid-2013.

Hiring accelerated in July after abruptly slowing in the previous two months. However, there are worries that a sharp sell-off in stocks and the nasty fight between Democrats and Republicans over raising the government's debt ceiling could dampen employers' enthusiasm to hire new workers.

"It is possible that the risk aversion manifested in financial markets will spill over to hiring. However, the data in hand don't yet reflect such a dynamic," said Julia Coronado, chief North America economist at BNP Paribas in New York.

DOWNWARD TREND IN CLAIMS

President Barack Obama on Thursday renewed a call for an extension of a payroll tax cut and pressed Congress to pass legislation that would increase investment in the nation's aging infrastructure and boost exports.

"Over the coming weeks I am going to be putting out more proposals, week by week that will help businesses hire and put people back to work," Obama told workers at a battery plant in Michigan. "I am going to keep at it until every single American who wants a job can find one."

About 13.9 million Americans are unemployed.

Stocks have dropped sharply in recent weeks on fears of a new recession, exacerbated by Standard & Poor's decision to strip the United States' top notch AAA crediting rating last Friday.

A sovereign debt crisis in Europe has also not helped.

But U.S. stocks rallied on Thursday, boosted by the jobless claims report and solid earnings from Cisco Systems. Sentiment was also fueled by department store chain Kohl's Corp raising its full-year profit forecast.

Prices for Treasury debt fell and the market suffered its worst long bond auction in 2-1/2 years. The dollar was flat against a basket of currencies.

Economists remain cautiously optimistic that the world's largest economy will avoid a double-dip recession, citing declining energy prices and the unwinding of supply chain disruptions from the earthquake in Japan.

An increase in the volume of oil imports pushed the monthly oil import bill in June to its highest since August 2008. That and the second straight month of declines in exports contributed to the month's wider trade deficit.

Imports from China rose nearly 5 percent to $34.4 billion, lifting the closely watched trade gap with that country to $26.7 billion, the highest in 10 months.

U.S. exports fell for a second consecutive month, to $170.9 billion, as shipments to Canada, Mexico, Brazil, Central America, France, China and Japan all declined.

"The sharp drop in exports is a major concern for the economic outlook as it is an indication that the pace of global activity may be slowing appreciably," said TD Securities' Mulraine. - Reuters

ASIA-Shares to rise as markets rebound

WELLINGTON: Asian stocks are set to rise as investors piled back into global stocks in another day of wild trading, but the overwhelming mood of uncertainty will likely cap gains.

The main Wall Street indexes vaulted more than 4 percent higher, as investors swooped on beaten-down stocks after the recent heavy losses.

A strong result from tech firm Cisco Systems Inc and a dip in jobless figures triggered the rush back into equities, the second positive day's trade in a week of extreme volatility.

Asian stocks listed on Wall Street rose 3.98 percent while world stocks, as measured by the MSCI world equity index, gained 2.89 percent.

British shares jumped 3.1 percent while European shares gained 2.7 percent, with banks regaining some of the territory they have lost this week.

The euro and the U.S. dollar posted their best days ever against the Swiss franc as the Swiss National Bank said it could peg the soaring currency to the euro in bid to stem its rise.

Japanese markets are set for a strong start, after dipping slightly on Thursday, with Nikkei futures traded in Chicago 100 points above the last closing level in Osaka.

Australian stocks are likely to open higher, with share price index futures up 72 points to 4,165, a 24.2 point premium to the close of the underlying S&P/ASX 200 index. ' Reuters

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US consumer sentiment tumbles to historic low in Aug

NEW YORK: U.S. consumer sentiment dropped to its lowest point in more than three decades in early August, as fears of a stalled recovery gelled with despair over government policies, a survey released on Friday showed.

The Thomson Reuters/University of Michigan's preliminary August reading on the overall index on consumer sentiment came in at 54.9, the lowest since May 1980, down from 63.7 in July. It was well below the the median forecast of 63.0 among economists polled by Reuters.

High unemployment, stagnant wages and the protracted debate over raising the U.S. government debt ceiling spooked consumers,polled before the downgrade of U.S. sovereign debt by Standard &Poor's.

"Never before in the history of the surveys have so many consumers spontaneously mentioned negative aspects of the government's role," survey director Richard Curtin said in a statement.

The survey's gauge of consumer expectations slipped to 45.7, also the lowest since May of 1980, from July's 56.0 and below a predicted reading of 55.3.

The Obama administration received poor ratings from 61 percent of respondents, the worst showing among all prior heads of state.

"This was more than the simple recognition that traditional monetary and fiscal policy measures were largely spent; it was the realization that the government was unable or unwilling to act," Curtin added.

Two-thirds of all consumers reported that the economy had recently worsened, and just one-in-five anticipated any gains during the year ahead.

Bad times in the economy were expected by 75 percent of all consumers in early August, just below the all-time peak of 82 percent in 1980.

The survey's barometer of current economic conditions was 69.3 in August, down versus 75.8 in July and below a forecast of 74.3..

The survey's one-year inflation expectation remained stuck at 3.4 percent, while the five-to-10-year inflation outlook also flatlined at 2.9 percent in August. ' Reuters

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Catcha Media sees RM25m reduction in target from online media biz

KUALA LUMPUR: Catcha Media Bhd forecasts for outstanding commercial targets of'' the online media business from 2011 to 2014 in its prospectus will be reduced by about RM25 million.

Catcha Media said on Thursday, Aug 11 this followed amendments to the strategic alliances made on Wednesday between the company, its subsidiaries, its holding company Catcha Group Singapore and Microsoft.

These amendments would affected the March 23, 2009 strategic alliance and the'' amended strategic alliance agreements dated July 1, 2010 and Aug 16, 2010 as set out in section 6.14(c) of the prospectus.

'In addition, the outstanding commercial targets of the online media business from the year 2011 to 2014 as set out in section 4.2.4 of the prospectus will be reduced by an aggregate of approximately RM25 million,' it said.

The amendments on Wednesday resulted in the removal of:

1)'' Microsoft continuing to invest in content acquisition for Malaysia and development and marketing campaigns for the Microsoft's Online PROPERTIES [] in Malaysia;

2) Catcha Digital (M) obtaining commercial general liability insurance that names Microsoft, its subsidiaries and their respective directors, officers and employees as insureds;

3) Catcha Media Holdings granting Microsoft an option to acquire an equity interest in Catcha Digital (S) subject to option agreement dated March 23, 2009;

4) Catcha Media Holdings and/or Catcha Digital (S) granting Microsoft a right of first offer and right of first refusal in relation to the sale of assets and equity in Catcha Media Holdings and Catcha Digital (S);

For an analysis, read it in The Edge FinancialDaily on Friday.

Daiman succeeds in RM55m bid for Menara Landmark

KUALA LUMPUR: DAIMAN DEVELOPMENT BHD [] has succeeded in its bid to buy the Menara Landmark in Johor for RM55 million.

It said on Thursday, Aug 11 its unit Daiman PROPERTIES [] Sdn Bhd had put in the bid to acquire the property in a public auction at a reserve price of RM55 million. The acquisition would be financed from its own funds.

Daiman said the building had 171,097 sq ft of retail complex, 163,339 sq ft of office tower, a car park area for 673 cars and 471 bays for motorcycles (estimated built-up area of 290,170 sq ft).

'The acquisition will enable Daiman Development to further expand its investment in property sector particularly in the key growth Johor Bahru CBD district and to continue with its property investment activities in the region,' it said.

SocGen, French bank shares slide again

PARIS/LONDON: Societe Generale's battered shares fell again on Thursday, Aug 11, reversing a strong morning rally, as French banks led volatile European stocks lower on continuing concerns about their outlook.

SocGen shares were 4.5 percent weaker at 21.19 by 1055, adding to the 15 percent drop they suffered on Wednesday in volume 170 percent of average for the past 30 days. The drop came despite vehement denials of problems at the bank. BNP Paribas and Credit Agricole were down a similar amount.

SocGen's bonds were weak from much earlier in the day. Spreads on its bonds due in 2016 had widened by 45 basis points to the benchmark swaps-plus 260 basis points at midmorning. The cost of insuring its debt against default also rose, with 5 year Credit Default Swaps 16 basis points wider at 350 basis points.

On Thursday rumours about a French sovereign debt downgrade, an expanded bailout for Greece that would hurt French banks, and a government bailout of SocGen, pulled shares of France's second-largest bank down in the heaviest volume since the 2008 financial crisis.

SocGen CEO Frederic Oudea dismissed the rumours as "absolutely rubbish" in an interview with CNBC television after the market closed, adding rumours about a downgrade of France's sovereign debt rating were "very strange" and contrary to the reality of the situation.

In an interview with Le Figaro newspaper published on Thursday, Oudea said the bank had come under "a series of attacks" in the stock market.

He added that the bank had not experienced any losses in particular in the past few days and that its results to date were satisfying.

"The market is an echo chamber: it amplifies good news, as well as bad," Oudea told France Info radio. "People are scared, so the tiniest information touches off irrational fears.

"To our clients, we have to tell them that these rumours are baseless and that they can have confidence in Societe Generale. They should not listen to this stuff, which is totally baseless."

This is the latest stumble for SocGen, which was the weakest of the major French banks in Europe's stress tests of its lenders last month.

Investors have speculated it may have to raise about 3 billion euros to reach new global capital standards if the euro zone crisis worsens.

The bank -- still trying to rebuild its credibility after the Jerome Kerviel rogue-trader scandal in 2008 in which it lost 4.9 billion euros ($6.90 billion) -- also issued a profit warning last week. - Reuters

MBM Resources 2Q net profit falls 45.6% to RM21.11m

KUALA LUMPUR: MBM RESOURCES BHD [] net profit for the second quarter ended June 30, 2011 fell 45.6% to RM21.11 million from RM38.78 million a year earlier, due mainly to full impact of the parts supply disruption from the recent earthquake in Japan.

Revenue for the quarter dipped to RM382.02 million from RM404.82 million. Earnings per share was 8.69 sen while net assets per share was RM4.36.

The company declared a first interim dividend of 6 sen per share exempted (single tier dividend) for the financial year ending Dec 31, 2011 to be paid on Sept 15.

For the six months ended June 30, MBMR's net profit fell to RM59.51 million from RM78.72 million in 2010, on the back of revenue RM791.83 million.

Reviewing its results, MBMR said on Thursday, Aug 11 that its overall performance was impacted by the shortage of parts supply as a result of the earthquake in Japan, of which the full impact was felt in the second quarter.

Additionally, in the month of June, the introduction of the new Hire Purchase Act had some temporary disruption to the process of order taking, it said.

The company said the financial results performance however was not a true reflection of the fundamental strength of the business and the continued progress the group had made during the year.

It said the new model launches during the quarter, including the Volvo S60, the additional Volvo XC60 T5 variant and the all new Perodua Myvi had all been well received.

'The outstanding orders are healthy. Progress was also made in the aftersales business as we continue to upgrade our facilities to grow the throughputs to support the increased vehicle sales of recent years,' it said.

On its prospects, MBMR said it had high outstanding orders in hand.

'With the quick recovery in the parts supply situation in Japan, the focus for the current quarter is to increase production and to fulfil these orders.

'The sales momentum is also expected to be sustained by the newly launched Perodua Myvi which was only introduced at the end of June,' it said.

The company said a lineup of new product launches by its principals in the second half of the year was also expected to strengthen its performance in the coming months.

MBMR said its initiatives in the aftersales business was beginning to gain momentum as evidenced by the increased throughputs to its service centres.

It said the challenges for the quarter were to ensure the rate of recovery in the supply of vehicles could be accelerated to meet outstanding orders.

'Additionally the Yen strength may put pressure on margins due to our exposure through the importation of parts from Japan. Tight cost controls and the ongoing localisation programmes will help reduce this impact.

'We expect the third quarter to show an overall improvement in performance,' it said.

''

Sunway REIT 4Q net income RM154m

KUALA LUMPUR: Sunway Real Estate Investment Trust (REIT) recorded net income of RM154.05 million in the fourth quarter ended June 30, 2011, mainly arising from fair value gain on portfolio of assets.

Sunway REIT said on Thursday, Aug 11 that of the RM154.05 million, of which ''RM41.07 million were realised and the remaining RM112.98 million unrealised. In the previous corresponding period, the realised net income was RM44.13 million.

Gross revenue rose 3.7% to RM87.29 million from RM84.16 million while net property income was 2.8% higher at RM64.98 million compared with RM63.19 million.

Sunway REIT declared an income distribution totaling RM43.53 million, down 6.7% from the RM46.63 million a year ago. Its distribution per unit (DPU) was 1.62 sen.

For the FY ended June 30, net income was RM553.66 million compared with RM166.17 million in the previous financial year. The higher net income was due to an unrealized income of RM386.35 million mainly arising from fair value gain on portfolio of assets.

Gross revenue was 1.4% higher at RM327.41 million from RM322.97 million a year ago while net property income was 1.1% higher at RM244.01 million versus RM241.37 million.

For the just ended FY, income distribution declared was RM176.57 million, juist a marginal 0.1% higher than the RM176.45 million a year ago.

Sunway REIT said the original eight assets performed well despite temporary setback by Putra Place's law suits.

It also said that the double digit rental reversion for its portfolio of 14.4% was locked in for next three years. The year-to-date total return for institutional investors who bought at 90 sen at its initial public offer was 29.3%.

MRCB says on target to achieve RM1.3b revenue this year

KUALA LUMPUR: MALAYSIAN RESOURCES CORP []oration Bhd (MRCB) said it was track to achieve revenue of RM1.3 billion for the year after its turnover for the six months ended June 30, 2011 rose to RM456.34 million from RM363.55 a year earlier.

For the six months ended June 30, MRCB's net profit rose to RM40.63 million from RM22.09 million.

Its net profit for the second quarter ended June 30, 2011 jumped 55.5% to RM19.03 million from RM12.24 million a year earlier,

Revenue for the quarter rose to RM234.84 million from RM173.87 million. Earnings per share was 1.37 sen, while net assets per share was 95.2 sen.

Reviewing its performance, MRCB said on Thursday, Aug 11 that the increase in revenue in the current period was due to higher contribution from the group's revenue recognition of ongoing and encouraging strata office sales of property development projects at Kuala Lumpur Sentral and the progressive works of the CONSTRUCTION [] and engineering activities.

Lower revenue was noted from the infrastructure and environmental segment due to completion of existing environmental projects, with continuation of new phases pending relevant authority approval, it said.

On its prospects, MRCB said that sales of the Q Sentral office block had surpassed the halfway mark whilst KL Sentral Park which would be completed in the second half of the year continued to attract strong rental interest.

Shortly to launch is the condominium known as Sentral Residences, it said.

'Based on the strong demand momentum for the group's property projects and the active progressive works of the construction and engineering activities, the board is confident that, barring any unforeseen circumstances, the group is on track to achieve the target revenue recognition of RM1.3 billion for the financial year,' it said.

Asian markets stabilise on higher US stock futures

KUALA LUMPUR: Regional markets shrugged off the overnight panic selling at Wall Street to pare down their losses on Thursday, Aug 11 as higher US stock futures calmed frayed investor nerves after a steep selloff.

But investors remained reluctant to place long-term bets as trading remained whippy, especially as concerns persisted about the US economic slowdown and uncertainty lingered over how Europe would tackle a sovereign debt crisis that is threatening its banking system, according to Reuters.

The FBM KLCI narrowed its losses to just 4.06 points to close at 1,476.46. The index had opened 22.62 points lower at 1,458.26 this morning.

Losers led gainers by 434 to 376, while 257 counters traded unchanged. Volume was 1.14 billion shares valued at RM2.29 billion.

At the regional markets, the Shanghai Composite Index rose 1.27% to 2,581.51 and South Korea's Kospi added 0.62% to 1,817.44.

Meanwhile, Japan's Nikkei 225 shed 0.63% to 8,981.94, Hong Kong's Hang Seng Index lost 0.95% to 19,595.14, Singapore's Straits Times Index fell 0.88% to 2,796.22 and Taiwan's Taiex was down 0.22% to 7,719.09.

On Bursa Malaysia, Top Glove led the losers list and fell 58 sen to RM5.30; F&N fell 38 sen to RM18.08, Tan Chong 27 sen to RM4.81, United PLANTATION []s and RCI 20 sen each to RM18.60 and RM1.68, Advanced Packaging 19 sen to RM1.13,while Sungei Bagan and Dutch Lady fell 18 sen each to RM2.65 and RM17.90.

AirAsia was the most actively traded counter with 53.2 million shares done. The stock fell four sen to RM3.50.

Other actives included MAS, Dutaland, Axiata, I-Power, Petronas Chemicals, E&O and UEM Land.

Among the gainers, Petronas Gas added 56 sen to RM13.18, BAT 32 sen to RM43.92, Lafarge Malayan Cement 30 sen to RM7, MSC 22 sen to RM4.36, Ta Ann, DiGi and YTL Cement up 20 sen each to RM5.30, RM29.80 and RM4.64 respectively, Yinson 16 sen to RM1.98 and BRDB 15 sen to RM2.07.

Utusan Melayu's losses narrow in 2Q

KUALA LUMPUR: Utusan Melayu (Malaysia) Bhd posted lower losses of RM473,000 in the second quarter ended June 30 compared with losses of RM5.07 million a year ago due to higher revenue from advertising.

It said on Thursday, Aug 11 revenue was 10.7% higher at RM88.79 million compared with RM80.19 million while loss per share was 0.43 sen versus 4.58 sen.

When compared with the first quarter, it said the revenue increased by RM3 million from the RM85.80 million. Consequently, the group recorded a lower loss before tax of RM3 million as compared with a loss before tax of RM6.9 million.

For the first half, its net loss was RM7.56 million compared with RM11.11 million in the previous corresponding period. Revenue increased by 12.6% to RM174.62 million from RM155.02 million.

On the outlook, it said the intense competition for the market share of advertising expenditure (Adex) continued in 2011. But it expected positive growth in the Gross Domestic Product and the overall adex for 2011 would provide an opportunity for the group to increase its advertising revenue.

'The group's compact newspaper, Kosmo which grew by 21% in terms of circulation revenue in the first half of this year is expected to increase its contribution to the Group's revenue and profitability in 2011,' it said.

Alam Maritim unit gets jobs worth RM20.16m

KUALA LUMPUR: ALAM MARITIM RESOURCES BHD [] has secured separate contracts worth a total RM20.16 million from Petronas Carigali Sdn Bhd to supply an accommodation vessel, and a workboat to a local oil and services company.

It said on Thursday, Aug 11 that its unit Alam Maritim (M) Sdn Bhd had received the letter of awards from Carigali and the local company for the contracts.

Alam Maritim said the contract with Carigali, which has a period of 138 days, will have a maximum daily extension option of 30 days.

Meanwhile, the contract for the work boat was only for 30 days with no specific extension option.

The contracts commenced in July 2011, it said.

The company said the contracts would contribute positively to its earnings for the financial year ending Dec 31, 2011.

KKB subsidiary gets RM19.4m water pipes projects

KUALA LUMPUR: KKB ENGINEERING BHD []'s subsidiary Harum Bidang Sdn. Bhd has secured a project to supply water pipes and pipe fittings.

KKB said on Thursday, Aug 11 Harum Bidang had accepted a local purchase order from Kumpulan Bina Emas Sdn Bhd for a rural water supply project.

'The duration of the supply contract shall be approximately nine months commencing from the fourth quarter of 2011 with a contract sum of approximately RM19.4 Million,' it said.

Top Glove slumps 11.2% to end-June low

KUALA LUMPUR: Shares of Top Glove Corp Bhd fell about 11% to RM5.22 in late afternoon trade on Thursday, Aug 11 and were trading at the lowest since June 29.

At 3.14pm, it was down 65 sen to RM5.23 with 523,200 shares done. It was off its earlier low of RM5.10.

The FBM KLCI fell 2.25 points to 1,478.27. Turnover was 760.02 million shares valued at RM1.44 billion. There were 266 gainers, 492 losers and 230 stocks unchanged.

In a report on July 14, Citigroup Research had Top Glove as its top pick, with the latex price drop the main rerating catalyst.

However, sentiment in the world's largest glove maker could be affected by the cautious overall market and the recent selling by Kumpulan Wang Persaraan (Diperbadankan) or KWAP.

Filings with Bursa Malaysia also showed KWAP had ceased to be a substantial shareholder as at Aug 4. It disposed of 347,400 shares in the open market on that day, reducing its shareholding to 30.67 million shares, or below the 5% level.

Boustead Sissons Paints in tie-up with Royalthon

KUALA LUMPUR: BOUSTEAD HOLDINGS BHD []'s subsidiary Boustead Sissons Paints Sdn Bhd plans to collaborate with Royalton Holdings Sdn Bhd to pursue business opportunities, specifically in the paint manufacturing industry.

Boustead had on Thursday, Aug 11 signed a memorandum of understanding with Royalton, which owns Berger International Sdn Bhd, which is the brand, trademark and formulation owners of several marine and protective coatings in the market.

'The parties, because of their diverse capabilities, have determined that they would benefit from this MoU which serves as an interim measure and commitment by them in furthering their discussions on possible business opportunities, specifically in the paint manufacturing industry,' said Boustead.

The duration of the MoU is three months, with an option to extend it for another three months.

Bumi Armada associate inks FPSO deal

KUALA LUMPUR: Bumi Armada Bhd expects earnings to pick up after its 49.99% owned Forbes Bumi Armada Offshore Ltd (FBAOL) sealed a floating production, storage and offloading (FPSO) contract.

It said on Thursday, Aug 11 that FBAOL had on Wednesday signed the contract with Oil and Natural Gas Corporation Ltd (ONGC) following the letter of award on June 25.

FBAOL is a 49.99:50.01 joint venture between Bumi Armada and Forbes & Co Ltd which is listed on the Bombay Stock Exchange.

'The contract is for an FPSO''to be operated by FBAOL on the ONGC D1 field located 200km off the west coast of Mumbai, India and it is for a seven-year fixed term time charter with a further six year annual extension period at ONGC's discretion,' it said.

Bumi Armade expected the contract -- which is ONGC's first ever FPSO contract award -- to contribute positively towards Bumi Armada group's future earnings.

Astral Supreme's 39.8m shares to list Friday

KUALA LUMPUR: ASTRAL SUPREME BHD []'s additional 39.85 million new shares issued under its corporate exercise involving a rights issue with warrants, will be listed and quoted on Friday, Aug 12.

A listing circular said on Thursday that 39.85 million warrants issued pursuant to the rights shares and 120 million 10-year 3% irredeemable convertible unsecured loan stocks would be listed also.

KLCI pares down losses at mid-day break

KUALA LUMPUR: The FBM KLCI narrowed its losses at the mid-day break on Thursday, Aug 11 in line with most key regional markets that clawed back to reduce losses as investors went bargain hunting for battered stocks.

Also, US stock futures rose 1.5% on Thursday after a sharp drop in the cash index overnight, limiting Asian share losses, though focus will shift quickly to how European markets hold up to a sovereign debt crisis that has spread to its banking system, according to Reuters.

The FBM KLCI clawed back to pare down its losses to just 7.30 points to 1,473.22 at 12.30pm. The index had opened 22.62 points lower at 1,458.26 this morning.

However, the broader market remained weaker with 561 losers, 165 gainers while 196 counters traded unchanged. Volume was 576.53 million shares valued at RM1.09 billion.

The ringgit weakened 0.15% against the US dollar to 3.0116; crude palm oil futures for the third month delivery rose RM20 per tonne to RM2.927, crude oil slipped 27 cents per barrel to US$82.62 while gold fell USD$2 an ounce to US$1,791.05.

At the regional markets, Japan's Nikkei 225 was down 0.92% to 8,955.81, Hong Kong's Hang Seng Index fell 1.45% to 19,496.70, Singapore's Straits Times Index down 1.57% to 2,776.71 and Taiwan's Taiex shed 0.54% to 7,694.43.

Meanwhile, South Korea's Kospi gained 0.68% to 1,818.47 and the Shanghai Composite Index added 0.43% to 2,560.12.

Top Glove was the top loser this morning and fell 66 sen to RM5.22; Nestle lost 48 sen to RM47, F&N 32 sen to RM18.14, Batu Kawan 28 sen to RM15.14, Glenealy 25 sen to RM5.27, Dutch Lady 22 sen to RM17.86, United PLANTATION []s 20 sen to RM18.60 and Panasonic 18 sen to RM23.30.

Among the gainers, BAT added 56 sen to RM44.16, DiGi 36 sen to RM29.96, MSC 31 sen to RM4.45, Harrisons and YTL Cement 16 sen each to RM3.49 and RM4.60, while HS Plantation, Pacific Mas and Far East added 10 sen each to RM2.60, RM3.48 and RM7.10 respectively.

AirAsia managed to pare down its losses, but was the most actively traded stock this morning. It was down eight sen to RM3.46 with 36.96 million shares traded.

The stock was sold down since Wednesday as investors appeared to view its tie-up with MALAYSIAN AIRLINE SYSTEM BHD [] negatively.

Other actives included Axiata, MAS, Petronas Chemicals, E&O and UEM Land.