#Stocks to watch:* Plantations, TRC, RHB, OSK, SP Setia

KUALA LUMPUR: PLANTATION []s could continue to be in focus in the week ahead, starting Monday, Oct 17, as sentiment would be underpinned by a positive export outlook which saw CPO futures closing at a two-week high on Friday.

The CPO for December delivery closed RM62 higher at RM2,906 a tonne. Reuters reported a positive export outlook and expectations of Chinese soy re-stocking, offset economic uncertainty.

'Supporting prices this week has been strong export data, which came at a time of positive demand expectations ahead of re-stocking efforts in Pakistan and Indian buying ahead of Diwali at the end of the month,' it said.

UOB Kay Hian Malaysia Research upgraded the plantation sectors to market weight as the production peak is over and it expects better CPO price support once the supply risk eases.

'We also see value emerging in selected stocks after the recent sell-down,' it said, maintaining its CPO assumption for 2012 and 2013 at RM2.700 per tonne. 'But we think CPO prices for 2012 could be higher because of lower supply, depending on the severity of the coming La Nina and potential return of El Nino is late 2012 or 2013,' it said.

UOB Kay Hian Research said it preferred upstream players with younger age profit and larger immature areas coming on stream as they would benefit the most in a rising trend,' it said.

Hence, it preferred Singapore and Indonesia-listed plantations which had relatively cheaper valuations than their Malaysian-listed peers.

Other stocks to watch would be TRC SYNERGY BHD [], RHB CAPITAL BHD [], OSK HOLDINGS BHD [], S P Setia Bhd and BOON KOON GROUP BHD [].

TRC and its partner have clinched a RM318.90-million contract from the Brunei authorities to modernise the Brunei International Airport terminal.

TRC's unit Trans Resources Corporation Sdn Bhd had received the letter of acceptance from the Brunei Economic Development Board for the project. The project was tendered by the unit and partner Swee Sdn Bhd.

RHB Capital and OSK are expected to see strong continued interest, with more upside after both financial institutions received the central bank's approval for them to start talks for a possible merger.

As for S P Setia, the Securities Commission has approved Permodalan Nasional Bhd's (PNB) takeover offer for S P Setia.

The property developer said on Friday it had received the notice that'' the SC 'has approved the offer under the equity requirement for public companies vide its letter dated Oct 13'.

PNB had on Sept 28 served a takeover notice on S P Setia after its shareholding reached 33.16% or 590.502 million shares..

Most importantly, UOB Kay Hian Malaysia Research said the market was awaiting S P Setia's Tan Sri Liew Kee Sin's decision on PNB's general offer proposal.

'The upcoming two weeks are crucial as the decision could be made anytime from now till Oct 28 when SP Setia's independent adviser (IA) is expected to release its recommendation to shareholders on whether they should accept PNB's GO,' it said.

S P Setia and PNB had recently issued a joint statement that it was PNB's desire to retain Liew and S P Setia's management, while PNB's involvement would only be through board representation.

'We explore two outcomes: a) Liew stays on and does not sell any shares, and b) he stays on but sells part/all of his entire 11.3% stake. We reckon the market would be pricing a steeper discount to the share price if the second outcome materialises,' it said.

Meanwhile, RAM Rating Services had said should PNB continue to leave the strategic planning and daily operations in the capable hands of SP Setia's present management, the group's strategic lineage may pave the way for additional business opportunities through PNB's vast land bank, or put it in the running for more attractive government projects.

However, the ratings services said S P Setia's longer term business profile may face negative implications if Liew decides to sell his entire stake or if PNB's involvement and control over the group extends beyond board representation, thus inhibiting the agility of the management team.

Meanwhile, Boon Koon resumes trading on Monday after selling selling a 75% stake in its hire purchase financing unit First Peninsula Credit Sdn Bhd to Japan's Hitachi Capital Corp for RM9 million cash.

Boon Koon said the price tag was equivalent to RM4 per sale share and it was a premium of RM1.84 or 85.18% above the audited net asset per share of RM2.16 as at March 31, 2011 and a net price earnings multiple of 36.8 times .

More importantly for Boon Koon, the partnership will enable it to leverage on the partnership to expand the existing market and venture into new markets.

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Wall Street racks up second week of gains

NEW YORK: Stocks scored their first back-to-back weekly gains since early July on Friday, Oct 14 on strong Google (GOOG.O) earnings and as investors kept riding the optimism for a solution to the euro zone's debt crisis.

The gains put the Dow industrials and the Nasdaq back into positive territory for the year, marking a dramatic reversal from two weeks ago, when the threat of a Greek default and sour U.S. data had buyers running from the market.

"There are these positive catalysts that may be in place -- earnings being one and a more formalized policy action out of Europe," said Natalie Trunow, chief investment officer of equities at Calvert Investment Management in Bethesda, Maryland, which manages about $14.8 billion.

The benchmark S&P index has climbed 14 percent from the October 4th intraday low of 1,074.77, which had temporarily tipped it into bear market territory. Now investors are looking to see if stocks can sustain a move above the 1,215-1,220 area that has been upper end of the market's range since early August.

For the week, the Dow rose 4.9 percent, while the S&P 500 jumped 6 percent and the Nasdaq climbed 7.6 percent.

Google Inc (GOOG.O) led the Nasdaq higher on Friday as shares jumped 5.9 percent to $591.68, a day after its results sailed past Wall Street's expectations, helped by strong advertising sales and cost controls.

"To the extent earnings come through as expected or better than expected, which we think is more likely to be the case, then that will provide sufficient support for the equity markets," Trunow said.

Next week third-quarter earnings kick into high gear, with reports coming from Goldman Sachs (GS.N), Bank of America (BAC.N), Apple Inc (AAPL.O) and other prominent companies.

The Dow Jones industrial average .DJI was up 166.36 points, or 1.45 percent, at 11,644.49. The Standard & Poor's 500 Index .SPX was up 20.92 points, or 1.74 percent, at 1,224.58. The Nasdaq Composite Index .IXIC was up 47.61 points, or 1.82 percent, at 2,667.85.

Apple rose 3.3 percent to $422, just below its intraday lifetime high of $422.86 set on September 20, as the newest version of its iPhone went on sale across the country.

The CBOE Volatility Index, or VIX.VIX, fell 8 percent to end at 28.24, and closed lower for the ninth day in a row, a pattern suggesting more gains could be in store as investors find less need for protection against losses.

"This has only happened four other times in the last 15 years and each time following this decline, the market over the next two months went up or stayed flat," wrote Jay Pestrichelli, co-founder and principal of Zega Financial LLC, an investment advisory firm specializing in option strategies.

French and German officials are trying to put flesh on the bones of a crisis resolution plan in time for a European Union summit on October 23, overshadowing Standard and Poor's cut of Spain's credit rating, a move that underlined the challenges facing Europe's finance ministers.

Stronger-than-expected retail sales data added to the upbeat mood Friday.

U.S. retail sales rose 1.1 percent in September from a month earlier, a report showed, beating the median forecast in a Reuters poll of a 0.7 percent rise. Sales growth during August was revised upward to 0.3 percent.

About 6.6 billion shares were traded on the New York Stock Exchange, NYSE Amex and Nasdaq for the day, well below the year's daily average so far of about 8 billion.

Advancing stocks outnumbered declining ones on the NYSE by a ratio of about 5 to 1, and on the Nasdaq, advancers outpaced decliners by 3 to 1. - Reuters

SEC warns staff their stocks data was exposed

WASHINGTON: The Securities and Exchange Commission is warning staffers that their personal brokerage account information may have been compromised, after it uncovered security flaws with an ethics compliance program, Reuters reported on Friday, Oct 14.

The SEC put the program in place after its internal watchdog raised concerns about possible insider trading among SEC staffers.

In an October 7 letter to SEC employees, Chief Information Officer Thomas Bayer said that the contractor hired to operate a computer program that tracks trades had violated its agreement with the SEC by providing names and account numbers to a subcontractor without permission.

"We are not aware of any actual misuse of the data," Bayer wrote. "Nevertheless, it is the SEC's policy to provide notification of any incident that presents the potential for unauthorized access to personal information."

The SEC said employees should consider placing a fraud alert on their credit files. The agency also said it will offer employees a free year of credit monitoring.

The contractor, Financial Tracking Technologies LLC, was selected by the SEC in the second quarter of 2009 to set up the new ethics system.

The changes came after the agency's inspector general, David Kotz, issued a March 2009 report alleging that two agency employees possibly engaged in insider trading.

Although no civil or criminal actions have resulted from that report, it prompted a major shake-up in how the SEC tracks the trades of its employees.

In a May 2009 announcement, SEC Chairman Mary Schapiro called for the SEC to have a "world class compliance program" to help prevent "not only an actual impropriety, but the appearance of one as well."

In addition to developing the computer system now the subject of the security breach, the agency also issued new internal rules requiring the preclearance of all trades and prohibiting the trading in securities of any company under investigation.

According to the SEC's letter to employees, the Office of Information TECHNOLOGY [] initiated on September 16 a security review that discovered FTT had failed to comply with contractual obligations.

Bayer said the SEC had directed FTT to "immediately terminate all access to SEC systems" by the unauthorized parties.

Anthony Turner, the principal at Financial Tracking Technologies, could not be immediately reached for comment.

SEC TIPPED OFF

SEC spokesman John Nester said the agency first learned of the possible breach after a former FTT employee came forward with concerns about how the data was being handled.

The SEC's IT office found that since June 2009, FTT had engaged one or more consultants and subcontracted with a global technology and business services firm.

The SEC said FTT had given those firms access to personal data without notifying or seeking approval from the market regulator. As a result, none of those third parties had been properly vetted.

Since September, the system has been offline and employees have been getting preclearance for their trades by sending emails to the SEC's ethics office.

Nester said no decision has been made yet on whether or not the SEC will keep its contract with FTT.

The letter to staff did not identify the third parties and the SEC declined to identify them for Reuters. - Reuters

World stocks, euro rally on crisis hopes, U.S. data

NEW YORK: Global stocks and the euro rallied on Friday, Oct 14, over growing optimism that Europe is on track to resolve its festering sovereign debt crisis and after data showed a surprising surge in U.S. retail sales.

The benchmark S&P 500 posted back-to-back weekly gains for the first time since early July while the euro headed for its best week in nine months against the U.S. dollar and gold marked its biggest weekly rise in six weeks.

Group of 20 finance ministers and central bank chiefs began two days of talks in Paris on Friday, which investors hope will provide a basis for a draft plan in time for a European Union summit on October 23.

"Right now we are trading on hopes of a decisive policy response," said Jens Nordvig, head of G10 FX strategy at Nomura Securities in New York.

The euro rose 0.8 percent to $1.3881.

While investors do not expect a comprehensive strategy to Europe's debt crisis to come out of the meeting, there was growing optimism that the meeting would put Europe on track for a solution. In addition, data that U.S. retail sales grew by 1.1 percent in September, the fastest pace in seven months, boosted investor sentiment on the economy's prospects.

The data, coupled with earnings from Google (GOOG.O) late Thursday that trounced analysts' expectations, led investors to shrug off a rating downgrade on Spain by Standard & Poor's and an unexpected slump in U.S. consumer confidence in October.

The sales data also was expected to help lift forecasts for growth in gross domestic product even though a resolution to Europe's debt crisis was the real focus for investors.

"The data hasn't mattered for a couple of months. It matters here and there, but most of what today is, is Europe," said John Canally, investment strategist for LPL Financial in Boston.

"Just getting the details of this plan out there and making the details work is the most important thing," Canally said.

For the week, the Dow gained 4.9 percent, the S&P 500 jumped 6 percent and the Nasdaq shot up 7.6 percent.

The Dow Jones industrial average .DJI closed up 166.36 points, or 1.45 percent, at 11,644.49. The Standard & Poor's 500 Index .SPX gained 20.92 points, or 1.74 percent, at 1,224.58. The Nasdaq Composite Index .IXIC added 47.61 points, or 1.82 percent, at 2,667.85.

Google shares jumped 5.9 percent to $591.68 after the Internet search company said growth at its mobile business and a strong emerging market lifted its third quarter, allaying worries that a slowing Europe was hurting business.

In Europe, the FTSEurofirst 300 .FTEU3 index of top regional shares closed up 0.95 percent at 975.52 points, while MSCI's all-country world equity index .MIWD00000PUS gained 1.4 percent.

The increased appetite for risk also lifted the price of crude oil more than 3 percent and pushed down the U.S. dollar and government debt, usually beneficiaries of bearish news.

"The outlook is good and getting better by the day. Risk is back on," said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York.

Crude prices were propelled by the hopes that European leaders would soon agree on how to curtail the euro zone debt crisis.

Early hints that China may loosen credit as inflation cools also boosted gains while investors mostly ignored a preliminary reading of U.S. consumer sentiment that sagged to 57.5 from 59.4 in September, a Thomson Reuters/University of Michigan survey showed.

November Brent crude settled up $3.57 at $114.68 a barrel on the day of its expiry. Brent crude for December delivery rose $3.26 to $112.46 a barrel.

U.S. crude settled up $2.57 at $86.80 a barrel.

U.S. Treasury debt prices fell, with 30-year yields posting their largest weekly gain in a year after the retail sales data cut the safe-haven allure of U.S. government debt.

Benchmark 10-year note yields, meanwhile, rose for a third straight week, their best three-week advance since late December.

The benchmark 10-year U.S. Treasury note was down 20/32 in price to yield 2.25 percent.

Spot gold prices rose $12.89 to $1,679.00 an ounce.

U.S. gold futures for December delivery settled up $14.50 at $1,683 an ounce. - Reuters

SC approves PNB's offer for S P Setia

KUALA LUMPUR: The Securities Commission has approved Permodalan Nasional Bhd's (PNB) takeover offer for S P Setia Bhd.

The property developer said on Friday, Oct 14, it had received the notice from Maybank Investment Bank Bhd, which is acting on behalf of PNB, that the SC 'has approved the offer under the equity requirement for public companies vide its letter dated Oct 13'.

TO recap, PNB had on Sept 28 served a takeover notice on S P Setia after its shareholding reached 33.16% or 590.502 million shares.

PNB offered RM3.90 per share, which based on the last traded price of RM3.50, was a 40 sen premium. PNB also offered to acquire the remaining warrants at 91 sen per warrant. This is 45 sen or 97.8% above the last closing price of 46 sen.

However, this offer was rejected by S P Setia which said: "Based on external valuations of the company by investment analysts published before receipt of the offer, that the shares offer and warrants Offer fundamentally undervalues the company".

Instead, the board decided to seek a competing offer from other interested parties to make an offer to purchase the company's shares.

The latest development was on Wednesday when S P Setia said there were no competing offers for the stake in the company.

Overwhelming response for Pembinaan BLT RM1.16b Sukuk

KUALA LUMPUR: Pembinaan BLT Sdn Bhd's (PBLT) second Sukuk issuance of RM1.165 billion received overwhelming response from investors during its book building.

PBLT, a unit of the Minister of Finance Incorporated, said on Friday, Oct 14 total orders received from investors reached RM8.0 billion -- a bid-to-cover ratio of 7.0 times -- as investors were comfortable with the credit of PBLT.

The book-building progress was concluded on Thursday evening, a day earlier than planned.

This fund raising exercise was part of PBLT's 25-year Islamic medium term notes programme of up to RM10 billion to be raised by its unit, Aman Sukuk Bhd.

The funds would be used for the nationwide CONSTRUCTION [] of police quarters and facilities under the 'build, lease and transfer' model.

The second series of Sukuk will have a semi-annual profit rate of 3.60% per annum for the three-year tranche, 3.75% per annum for the five-year tranche, 3.95% per annum for the seven-year tranche, 4.10% per annum for the 10-year tranche, 4.25% per annum for the 12-year tranche and 4.45% per annum for the 15-year tranche.

PBLT managing director and chief executive officer Mohammed Redza Mohd Yusof said demand for the IMTNs came from a wide array of investors, including government agencies, financial institutions, fund managers and insurance companies.

'The overwhelming response indicates a strong demand for our Sukuk and brings PBLT closer to achieving its financial plan.

'We are happy with the success of the second IMTN issuance where we have also managed to successfully take advantage of the current low interest rate environment with the assistance from our consultant, Prokhas Sdn Bhd, the joint bookrunners, and all other parties involved in the transaction and issuance,' he said.

The IMTN programme is the long term financing facility matching the expected sub-lease rental payments from the government.

PBLT will use the sub-lease rental payments to redeem the Aman Sukuk IMTN. Based on the superior credit strength of the sub-lease rental payments, the IMTN Programme is rated AAAIS by Malaysian Rating Corporation Bhd (MARC).

'PBLT is also recording high delivery rates with 37 projects completed and another 19 projects to be completed on a sectional basis. Investors can look forward to our next issuance in the coming months,' he added. 'We have crossed the 50% mark as far as project delivery and values are concerned,' he said.

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Sunway REIT get SC nod for RM3b debt note issuance

KUALA LUMPUR: Sunway Real Estate Investment Trust (Sunway REIT) has received the Securities Commission's approval for the proposed medium term note programme of RM3.0 billion in nominal value.

It said on Friday, Oct 14 HSBC Bank Malaysia Bhd, Maybank Investment Bank Bhd and RHB Investment Bank Bhd are the joint principal advisers and joint lead arrangers for the establishment of the MTN programme.

SunREIT Capital is a special purpose vehicle incorporated specifically for the issuance of the MTNs, whose shares are held by OSK Trustees Bhd on behalf of Sunway REIT.

It said issue one of the MTN programme shall entail the issuance of RM1.56 billion MTNs in nominal value.

PNB CEO gets "Businessman of the Year 2011" award

PENANG: The Asian Academy of Management (AAM) and Universiti Sains Malaysia (USM) on Friday, Oct 14 presented the "Businessman of the Year 2011" award to Permodalan Nasional Bhd (PNB) president and group chief executive officer Tan Sri Hamad Kama Piah Che Othman.

The award was presented by AAM president Zamri Ahmad and USM vice-chancellor Datuk Omar Osman after Hamad Kama Piah had delivered a keynote address on "Transforming Asian Business through Innovation for a Sustainable Tomorrow".

Omar told reporters the choice of Hamad Kama Piah was based on his leadership qualities and integrity which raised PNB to be on par with other
government-linked companies, such as Petronas and Khazanah Nasional.

He named previous award winners as the late Tan Sri Bek-Nielsen of United PLANTATION []s, Tan Sri Fumihiko Konishi (Texchem Corporation), Datuk Jamaluddin
Ibrahim (Maxis), Datuk Seri Ahmad Farid Ridzuan (Media Prima) and Datuk Seri Eleena Azlan Shah (GAMUDA BHD []).

AAM also the awarded life membership to four individuals who had exhibited characteristics of charismatic leadership and integrity in the academic field
and industry.

They are Omar, Albukhary International University vice-chancellor Tan Sri Dzulkifli Abdul Razak, Texchem Corporation managing director Brian Tan and
Selectra Industries managing director Tahiruddin Tun Hamdan.

AAM is a non-governmental organisation based at USM since 1994. - Bernama

MRCB gets RM46.5 million job in Pahang

KUALA LUMPUR: MALAYSIAN RESOURCES CORP []oration Bhd has secured a contract worth RM46.5 million from the Department of Irrigation and Drainage for a project in Pahang.

MRCB said on Friday, Oct 14 that it had received a letter of award to carry out 'Projek Fasa 2 Bagi Pembinaan Pemecah Ombak di Kuala Sungai Pahang'.

It said the contract was for a period of 17 months, and that the CONSTRUCTION [] was to be completed by March 2013.

It said the project was an extension of the RM258.17 million contract upgrade the Sungai Pahang river and estuary (Phase 1) that was awarded to the company in October 2008.

The main component of the Project is to extend an additional 200m in length to the breakwater constructed during the Phase 1.

MRCB said the project was expected to contribute positively to its future earnings.

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September vehicle sales slump 24% on-month

KUALA LUMPUR: Sales of vehicles in Malaysia totalled 44,407 units in September, which was a 24% decline from August but the Malaysian Automotive Association (MAA) expects sales to pick up in October.

It said on Friday, Oct 14 the lower September sales were due to the cooling-off period after the rush for deliveries in August during the Hari Raya and Merdeka celebrations. Another factor for the slower sales was the shorter working month due the festivities.

As for the outlook for October, MAA expected the sales to be higher than September due to the 'longer working month, market conditions returning to normalcy'.

For September, the MAA said 39,628 passenger vehicles were sold (versus 38,761 units in September 2010) and 4,779 commercial vehicles (4,682 units in September 2010).

Year-to-date, passenger vehicle sales were 402,676 units (408,450 units from January-September 2010) and commercial vehicles at 47,568 units (44,799 units from January-September 2010).

TRC Synergy, partner clinch RM318m Brunei airport project

KUALA LUMPUR: TRC SYNERGY BHD [] and its partner have clinched a RM318.90-million contract from the Brunei authorities to modernise the Brunei International Airport terminal.

TRC said on Friday, Oct 14 its unit Trans Resources Corporation Sdn Bhd had received the letter of acceptance from the Brunei Economic Development Board for the project. The project was tendered by the unit and partner Swee Sdn Bhd.

'The commencement date of the project shall be the date of the signing of the contract agreement and the project shall be completed within 36 months of the commencement date,' it said.

TRC said the project would contribute positively to the earnings and earnings per share of the TRC Group in the future.

KLCI snaps winning streak, but pares down losses

KUALA LUMPUR: The FBM KLCI snapped its three-day winning streak on Friday, Oct 14 in line with the weaker regional sentiment but pared down its losses toward close of the afternoon session.

The 30-stock index closed 0.17% or 2.44 points lower at 1,442.43,.

Gainers edged losers by 368 to 365, while 260 counters traded unchanged. Volume was 1.07 billion shares valued at RM1.22 billion.

At the regional markets, Hong Kong's Hang Seng Index fell 1.36% to 18,501.79, the Shanghai Composite Index shed 0.30% to 2,431.37, Japan's Nikkei 225 lost 0.85% to 8,747.96, Taiwan's Taiex fell 0.95% to 7,358.08 while South Korea's Kospi added 0.67% to 1,835.40 and Singapore's Straits Times Index edged up 0.37% to 2,744.17.

On Bursa Malaysia, Eng Teknologi was the top loser and fell 20 sen to RM1.80 with 4.69 million shares done after the company said the Thailand floods would impact it negatively.

Other losers included Far East that fell 15 sen to RM6.80, Subur Tiasa 14 sen to RM2.13, Genting Malaysia down 13 sen to RM3.65, Genting 12 sen to RM9.90, while MPI, IOI Corp, Gamuda and CIMB lost 10 sen each to RM3.18, RM5.03, RM3.03 and RM7.30 respectively.

OSK and RHB Capital advanced after both received Bank Negara's approval in principle to start possible merger negotiations.

OSK rose nine sen to RM1.77 with 49.2 million shares done, while RHB Capital added four sen to RM7.48 with 2.55 million shares traded.

Other actives included KUB, Timecom, Zelan, MAA, UOA Development, Malton, Harvest and YTL Land.

Among the gainers, Digi jumped RM1.12 to RM32, HLFG 48 sen to RM11.58, Malayan Flour Mills 40 sen to RM7.40, Tahps and Atlan 20 sen each to RM4.10 and RM3.20, BLD PLANTATION []s 19 sen to RM6.19, Petronas Gas and BAT 16 sen each to RM13.22 and RM44.66, while KFCH added 15 sen to RM3.46.

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RAM Ratings monitoring CBI probe of Maxis Comm

KUALA LUMPUR: RAM Rating Services Bhd is monitoring the developments arising from India's Central Bureau of Investigations (CBI) probe into Maxis Communications Bhd's (MCB) purchase of Aircel Ltd.

RAM Ratings said on Friday, Oct 14 that a formal investigation had commenced after the CBI registered a First Information Report on MCB's purchase of Aircel.

The ratings agency also noted MCB had issued a press release denying any wrongdoing on its part, while a separate announcement by Maxis Bhd to Bursa Malaysia stated that the FIR is not expected to have any impact on the company.

RAM Ratings said Binariang GSM Sdn Bhd (BGSM) was the parent of MCB. It also said the group's credit profile was anchored by the profitability and cashflow-generating capabilities of its key operating entities, Maxis Berhad and Aircel.

BGSM's Senior Sukuk and Junior Sukuk (collectively referred to as 'the Islamic securities') currently carry respective AA3/Stable/P1 and A2/Stable/- ratings from RAM Ratings.

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RAM Ratings is undertaking the annual rating review on BGSM's Islamic securities, which is expected to be concluded within the next two months.

'We will be monitoring developments on the CBI probe; any material development that could affect the operational or financial profiles of the group will be taken into account in our rating review,' it said.

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DiGi jumps on positive upside, TP RM33.90

KUALA LUMPUR: Shares of DIGI.COM BHD [] jumped on Friday, Oct 14 on after a research house said it maintained a Buy at RM30.88 and target price of RM33.90.

At 4.12pm, the telco was up RM1.02 to RM31.90. There were 310,600 shares done.

The FBM KLCI fell 3.65 points to 1,441.22. Turnover was 859.19 million shares valued at RM931.89 million. There were 276 gainers, 423 losers and 242 stocks unchanged.

UOB Kay Hian Malaysia research said it expected DiGi to recognise about RM145 million in accelerated depreciation of its network in 3Q11, similar to 2Q11's. The company is upgrading its infrastructure to be LTE-ready.

'Hence, net profit could fall 17% on-year to RM240 million in 3Q11 (+2% on-quarter). Core net profit, however, is expected to improve 2% on-quarter to RM365 million (+26% on-year), driven by the festive Hari Raya season.

'Dividend for 3Q11 could drop 40% yoy to 30 sen/share (1% net yield), premised on a 100% payout vs 134% a year ago. A larger payout is expected in mid-2012 when DiGi completes a proposed capital management exercise.

'DiGi is our sole BUY in the cellular space for its 10% capital upside to our DCF-based target price of RM33.90 with a 7% gross yield,' it said.

Boon Koon sells 75% stake of credit unit to Hitachi

KUALA LUMPUR: BOON KOON GROUP BHD [] is selling a 75% stake in its hire purchase financing unit First Peninsula Credit Sdn Bhd to Japan's Hitachi Capital Corp for RM9 million cash.

Boon Koon said on Friday, Oct 14 the price tag was equivalent to RM4 per sale share and it was a premium of RM1.84 or 85.18% above the audited net asset per share of RM2.16 as at March 31, 2011 and a net price earnings multiple of 36.8 times .

Boon Koon said Hitachi Capital, as a manufacturer affiliated financial services company, had financed its products from household appliances to automobiles and housing.

'Hence, the proposed disposal would enable Boon Koon to form a strategic alliance with a leading leasing and consumer credit company and thereby capitalise on Hitachi Capital's extensive experience and knowledge of such areas and products to provide seamless services that range from leases, loans and other financial services to function-oriented services,' it said.

Kulim's takeover offer for Sindora turns unconditional

KUALA LUMPUR: KULIM (M) BHD []'s takeover of SINDORA BHD [] has become unconditional and the offer will remain open for acceptances until Wednesday, Oct 18.

Sindora said on Friday, Oct 14 the joint advisers, on behalf of Kulim, had on Thursday informed the board that Kulim had obtained the Ministry of International Trade and Industry's approval for the offer.

'Following the above, the joint advisers have informed Sindora that the offer has become wholly unconditional. The offer will remain open for acceptances until 5pm on Oct 18,' it said.

Kulim does not intend to maintain Sindora's listing status and intends to invoke Section 222 of the Capital Markets and Services Act 2007 to compulsorily acquire any outstanding offer shares for which valid acceptances have not received.

As at Oct 3, Kulim held 92.47 million shares or 96.33% of the issued and paid-up share capital of Sindora.

RHB Cap, OSK up on BNM nod for talks

KUALA LUMPUR: Shares of RHB CAPITAL BHD [] and OSK HOLDINGS BHD [] rose in active trade on Friday, Oct 14 after both financial institutions received the central bank's approval for them to start talks for a possible merger.

At 2.50pm, OSK was up 11 sen to RM1.79 with 37.57 million shares done. RHB Cap advanced 15 sen to RM7.59 with 1.64 million units done.

RHB Cap and OSK announced they had received Bank Negara Malaysia's approval to commence negotiations for a possible merger of businesses between the RHB banking group and OSK investment banking group.

OSK said the approval to commence negotiations was valid for three months from the date of Bank Negara's letter.

MARC affirms ratings of Kesturi highway's RM870m debt notes

KUALA LUMPUR: Malaysian Rating Corp Bhd (MARC) has affirmed the ratings on highway concessionaire Konsortium Lebuhraya Utara ' Timur (KL) Sdn Bhd's (Kesturi) debt notes totaling RM870 million.

MARC said on Friday, Oct 14 it affirmed the AA-IS rating on Kesturi's RM820 million sukuk musyarakah medium term notes programme (senior sukuk) and the A- rating on its RM50 million redeemable junior bonds (junior bonds.

'The ratings reflect adequate growth in vehicle traffic on the strategically located Duta ' Ulu Kelang (DUKE) highway which links the east and west parts of the Klang Valley, strong coverage of the company's debt obligations and the favourable terms of the issue structure which alleviate liquidity risks in the early years,' it said.

However, MARC said the ratings were moderated by the divergence between actual and forecast revenue and cash flow and increasing congestion along the highway's Mont Kiara exit ramp which may limit traffic growth.

The rating agency said the stable outlook reflected MARC's expectations that the project's credit metrics would remain adequate for the current ratings over the next 12 to 18 months.

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KLCI extends losses at mid-day as Asian markets turn negative

KUALA LUMPUR: The FBM KLCI fell 0.38% at the mid-day break on Friday, Oct 14 as Asian markets mostly turned negative as weaker data from China raised worries on the global economic prospects.

Lingering concerns about Europe's debt woes and the latest credit rating downgrade of Spain underpinned the safety of government bonds, slightly boosting the price of U.S. Treasuries in Asia on Friday while easing Asian credit markets, according to Reuters.

At 12.30pm, the FBM KLCI lost 5.50 points to 1,439.37.

Gainers trailed losers by 221 to 371, while 227 counters traded unchanged. Volume was 539.58 million shares valued at RM522.91 million.

The ringgit strengthened 0.10% to 3.1355 versus the US dollar; crude palm oil futures for the third month delivery rose RM28 per tonne to RM2,874, crude oil gained 13 cents per barrel to US$84.36 while gold fell US$1.64 an ounce to US$1,666.49.

At the regional markets, Hong Kong's Hang Seng Index lost 1.39% to 18,496.17, the Shanghai Composite Index fell 1.10% to 2,412.03, Japan's Nikkei 225 was down 0.71% to 8,760.43, Taiwan's Taiex lost 0.78% to 7,370.42 and Singapore's Straits Times Index shed 0.24% to 2,727.38, while South Korea's Kospi edged up 0.12% to 1,825.29.

On Bursa Malaysia, Eng Teknologi continued to be plagued by the impact of the Thailand floods and fell 21 sen to RM1.79 with 3.38 million shares done.

Timber-related stocks fell as well on profit taking, with Subur Tiasa down 17 sen to RM2.10 and Jaya Tiasa down 16 sen to RM5.25.

Meanwhile, Far East lost 15 sen to RM6.80, Sunchirin, MISC and Genting Malaysia down 13 sen each to RM1.32, RM6.28 and RM3.65, while TDM, Allianz and Tenaga fell 10 sen each to RM2.85, RM4.50 and RM5.18 respectively.

Among the gainers, Malayan Flour Mills added 30 sen to RM7.30, RHB Capital 26 sen to RM7.70, Atlan and Tahps 20 sen each to RM3.20 and RM4.10, HLFG 18 sen to RM11.28, Eupe 17 sen to 57 sen, OSK 16 sen to RM1.84. Petronas Dagangan 14 sen to RM16.32, KFC 13 sen to RM3.44 and Lysaght 10 sen to RM1.75.

The actives included YTL Land shares and warrants, OSK, Timecom, Zelan, UOA Development, KUB, Harvest and Malton.

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RHB Capital, OSK get Bank Negara nod to start merger talks

KUALA LUMPUR: RHB CAPITAL BHD [] and OSK HOLDINGS BHD [] have received Bank Negara Malaysia's approval to commence negotiations for a possible merger.

In separate filings to Bursa Malaysia Securities on Friday, Oct 14, RHB Capital and OSK said they had received Bank Negara's approval in principle via letters dated Oct 13 that the central bank had no objection for the parties to commence negotiations for a possible merger of businesses between the RHB banking group and OSK investment banking group.

OSK said the approval to commence negotiations was valid for a period of 3 months from the date of Bank Negara's letter.

'Further details on the possible merger will be announced in due course,' it said.

RAM Ratings: PNB's conditional offer has no immediate rating impact on SP Setia

KUALA LUMPUR: RAM Ratings said that there was no immediate rating impact from Permodalan Nasional Bhd's (PNB) recent conditional offer for the remaining shares of SP SETIA BHD [] (SP Setia) that it does not already own.

SP Setia's RM500 million Redeemable Serial Bonds are currently rated AA3/P1 by RAM Ratings with a stable outlook.

In a statement Friday, Oct 14, RAM Ratings' head of real estate and CONSTRUCTION [] ratings Shahina Azura Halip said any rating action at this juncture would be premature.

'Should PNB continue to leave the strategic planning and daily operations in the capable hands of SP Setia's present management, the Group's strategic lineage may pave the way for additional business opportunities through PNB's vast land bank, or put it in the running for more attractive government projects.

'This would be a positive for the group,' she said.

However, Shahina cautioned that nn the other hand, SP Setia's longer term business profile may face negative implications if Tan Sri Liew Kee Sin decides to sell his entire stake or if PNB's involvement and control over the Group extends beyond board representation, thus inhibiting the agility of the management team.

A strong management team was a major factor supporting SP Setia's AA3 rating, she said.

On Sept 28, 2011, PNB offered to pay cash for the SP Setia's shares at RM3.90 apiece and warrants at 91 sen per unit.

This had followed PNB's (and parties acting in concert with it) earlier acquisition of 3.07 million shares from the open market, thereby raising their collective stake to 33.2% and triggering the general offer.

On Oct 10, 2011, PNB and SP Setia made a joint announcement whereby the former stated that it intended to maintain SP Setia's listing and would restrict its involvement in the Group to only board representation.

PNB's offer document and SP Setia's independent advice circular to its shareholders are expected to be released next week.

RAM Ratings said it had initiated the annual rating review on the group, and would make the appropriate rating announcement in due course.

KLCI slips after 3 days of gains, Eng Tek slumps on Thai woes

KUALA LUMPUR: The FBM KLCI slipped on Friday, Oct 14 after three continuous days of gains, as external factors began to weigh on investor sentiment.

Meanwhile, Eng Teknologi'' Holdings Bhd shares continued to slide after company said its FY11 revenue would be negatively impacted by the floods in Thailand.

Asian shares inched down on Friday, tracking New York and European shares lower as weak Chinese trade data raised concerns about the global economy, while the euro eased after another sovereign debt ratings downgrade, according to Reuters.

The FBM KLCI slipped 2.61 points to 1,442.26 at 10am.

Losers beat gainers by 257 to 146, while 170 counters traded unchanged. Volume was 259.77 million shares valued at RM215.35 million.

At the regional markets, Japan's Nikkei 225 fell 0.53% to 8,776.25, Hong Kong's Hang Seng Index lost 0.86% to 18,597.01, Taiwan's Taiex fell 0.55% to 7,387.68, South Korea's Kospi was down 0.31% to 1,817.48 and the Shanghai Composite Index shed 0.26% to 2,432.44 while Singapore's Straits Times Index edged up 0.53% to 2,748.58.

BIMB Securities Research in a note Oct 14 said despite an all round decline in major bourses around the globe, recent chaotic sentiments may have finally eased.

It said yesterday's easing of most equity markets were nothing more than bouts of profit taking after an impressive run-up.

The DJI Average was off a mere 40 points more from a lacklustre earnings report by JP Morgan, it said.

Regionally, Asian bourses were mostly up buoyed by China's more proactive move to buy up its banking shares, said the research house.

'The cumulative effects especially a clearer picture from the Euro zone had also propped up the local bourse by an impressive 16 points edging ever closer to the 1,450 level.

'Today, we would expect the market to consolidate with the immediate support at the 1,440 mark,' it said.

On Bursa Malaysia, Eng Teknologi slumped 17 sen to RM1.83 after the company said its revenue for FY11 would be negatively impacted by the Thailand floods that have caused it to halt operations there.

Other losers included GAB and MISC that fell 14 sen each to RM10.40 and RM6.27, Sunchirin 13 sen to RM1.32, Parkson 11 sen to RM5.49, CIMB 10 sen to RM7.30, Genting Malaysia nine sen to RM3.69, Carlsberg eight sen to RM6.80 and Kretam down six sen to RM1.95.

Gainers included KLK, Panasonic, F&N, Petronas Dagangan, HLFG, BAT, Hong Leong Bank, Jerneh and YTL Land.

The actives included YTL Land, OSK, UOA Development, RedTone, Green Packet, Takaso and KUB.

Jerneh Asia rises on capital distribution plan

KUALA LUMPUR: Shares of cash-rich JERNEH ASIA BHD [] rose on resuming trade Friday, Oct 14 after the company said it intended to undertake a capital distribution to shareholders following its planned acquisition of Sabah-based developer Sagajuta (Sabah) Sdn Bhd coming to naught.

At 10.30am, Jerneh Asia gained seven sen to RM1.36 with 1.15 million shares done.

Jerneh Asia on Friday said its plan to buy Sagajuta had been called off, as the parties could not reach a consensus on the terms of the proposed acquisition.

The announcement by Jerneh Asia on Friday, Oct 14 confirmed a report by The Edge Financial Daily today that there was a possibility of a capital repayment to shareholders.

Jerneh Asia said it and Generasi Cipta Sdn Bhd had mutually agreed the memorandum of understanding the two had signed on April 21 this year in relation to the planned acquisition of Sagajuta.

The company said that as it had announced on May 24 and in a circular to shareholders, the company did not intend to regularise its PN16 and PN17 condition if the planned acquisition did not materialise.

'Consequently, the company intends to dispose its major assets, undertake a capital distribution to its shareholders and subsequently, wind up the company.

'The proposed asset disposals, capital distribution and winding-up are subject to shareholders' approval,' it said.

Eng Tek falls on impact of Thai floods

KUALA LUMPUR: ENG TEKNOLOGI HOLDINGS BHD [] shares continued to fall on Friday, Oct 14 after the company said the floods in Thailand that had forced the temporary shutdown of its operations in that country would negatively impact its revenue for the financial year ending Dec 31, 2011.

At 9am, the shares were down 12 sen to RM1.88 with 44,500 shares traded.

It said on Thursday that for the financial year ended Dec 31, 2010, the Thai operations contributed approximately 40% to its revenue. 'Nevertheless the quantum of the impact cannot be determined at this juncture,' it said.

On Oct 11, Eng Tek said that the floods in Ayuththaya had resulted in the shutdown since Oct 8 of Engtek (Thailand) Co Ltd and that the Thai authorities had issued an evacuation order for the industrial zone in which Altum Precision Co Ltd. was located although the area has yet to be affected by the flood waters.

Eng Tek said it was aware that several of the group's key customers and suppliers had also been affected by the floods and this has resulted in significant disruption to the supply chain of key hard disk drive components.

The company said it was currently unable to ascertain the amount of damage and loss to property, plant and equipment or to quantify the exact financial impact because the water level has not subsided and there was very limited access to these facilities.

OSK Research has Trading Buy on CSC Steel, FV RM1.78

KUALA LUMPUR: OSK Research has a trading buy call on CSC Steel with a fair value of RM1.78, which is 43 sen above the last closing price of RM1.35.

It said on Friday, Oct 14 CSC is experiencing a narrowing price spread between hot-rolled coils (HRC) and cold-rolled coils (CRC) which has tapered further to below US$100 a tonne.

Other than that, a prolonged inconsistent supply of HRC by a sole local producer also poses a challenge to its production planning.

The demand for and margin of galvanised iron (GI) and pre-painted GI held up better than CRC and the intensifying competition from new CRC lines entering the local market in past few years has prompt management decided to increase its exports of CRC to 20% recently from 5% in 2010 to optimise plant utilisation although the margin for exports is low.

'We maintain our Trading BUY recommendation with a fair value of RM1.78 on the back of its solid balance sheet, decent dividend yield and the possibility of CSC becoming a privatisation candidate,' it said.

CIMB Research has technical sell on Dialog

KUALA LUMPUR: CIMB Equities Research has a technical sell on DIALOG GROUP BHD [] at RM2.39 at which it is trading at a FY 12 price-to-earnings of 15.9 times and price-to-book value of 8.0 times.

It said on Friday, Oct 14 the stock was now very close to its targeted RM2.42 levels and it believes that it is a good time to lock in profits.

'This strong resistance would likely be tough for the bulls to break without any pullback,' it said.

CIMB Research said the MACD and RSI are both testing their respective resistances, making a reversal around current levels more probable.

'Take profits now as the 50-day SMA would also keep the bulls at bay. Expect a pullback towards RM2.17 again while a fall beneath RM2.00 would mean that prices are heading back towards RM1.79 again,' it said.

Jerneh Asia calls off Sabah deal

KUALA LUMPUR: Cash-rich JERNEH ASIA BHD [] has said its proposal to buy Sabah-based developer Sagajuta (Sabah) Sdn Bhd has been called off, as the parties could not reach a consensus on the terms of the proposed acquisition.

The announcement by Jerneh Asia on Friday, Oct 14 confirms a report by The Edge Financial Daily today that there was a possibility of a capital repayment to shareholders.

Jerneh Asia said it and Generasi Cipta Sdn Bhd had mutually agreed the memorandum of understanding the two had signed on April 21 this year in relation to the planned acquisition of Sagajuta.

The company said that as it had announced on May 24 and in a circular to shareholders, the company did not intend to regularise its PN16 and PN17 condition if the planned acquisition did not materialise.

'Consequently, the company intends to dispose its major assets, undertake a capital distribution to its shareholders and subsequently, wind up the company.

'The proposed asset disposals, capital distribution and winding-up are subject to shareholders' approval,' it said.

Trading in the securities of Jerneh Asia were halted from 9am today and would resume at 10am.

CIMB Research has technical sell on Genting Bhd

KUALA LUMPUR: CIMB Equities Research has a technical sell on GENTING BHD [] at RM10.02 at which it is trading at a FY 12 price-to-earnings of 11.8 times and price-to-book value of 2.2 times.

It said on Friday, Oct 14 that Genting broke below its double top neckline back in August and hit a low of RM8.37. The current rebound from the low has taken prices back up to retest this neckline support turned resistance band.

'Technical landscape is improving but both its MACD and RSI are now testing their own respective resistances. We would not be surprise if the indicators reverse from current levels,' it said.

CIMB Research said the odds favour a pullback from current levels. The RM10.00-RM10.20 resistance band would likely provide stiff resistance in the days ahead.

'A pullback towards RM9.40 is likely. However, a drop below would likely send prices falling towards RM8.37 again,' it said.

Nikkei falls after JPMorgan results, Google supports

TOKYO: The Nikkei stock average dropped on Friday, after weak results from JPMorgan Chase & Co pushed U.S. stocks lower, although Google's strong results provided some support.

The Nikkei shed 0.5 percent to 8,778.81, while the broader Topix index declined 0.8 percent to 753.07. ' Reuters

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Eng Tek: Thai floods to have negative impact

KUALA LUMPUR: ENG TEKNOLOGI HOLDINGS BHD [] has said that the floods in Thailand that have forced the temporary shutdown of its operations in that country will have a negative impact on its revenue for the financial year ending Dec 31, 2011.

It said on Thursday, Oct 13 that for the financial year ended Dec 31, 2010, the Thai operations contributed approximately 40% to its revenue.

'Nevertheless the quantum of the impact cannot be determined at this juncture,' it said.

On Oct 11, Eng Tek said that the floods in Ayuththaya had resulted in the shutdown since Oct 8 of Engtek (Thailand) Co Ltd and that the Thai authorities had issued an evacuation order for the industrial zone in which Altum Precision Co Ltd. was located although the area has yet to be affected by the flood waters.

Eng Tek said it was aware that several of the group's key customers and suppliers had also been affected by the floods and this has resulted in significant disruption to the supply chain of key hard disk drive components.

The company said it was currently unable to ascertain the amount of damage and loss to property, plant and equipment or to quantify the exact financial impact because the water level has not subsided and there was very limited access to these facilities.

'While management believes there is adequate insurance to cover losses arising from the replacement of affected assets, it is also trying to assess the floods' impact on the group's working capital requirements and any resultant losses.

'The company will provide further updates when there is more clarity on the flood situation in Thailand,' it said.

S&P downgrades Spain by one notch on weak growth outlook

Ratings agency Standard and Poor's downgraded the long-term credit rating of Spain by one notch on Friday, knocking the euro down by a third of U.S. cent as it followed hard on the heels of a similar downgrade by Fitch last week.

S&P cited Spain's high unemployment, tightening credit and high level of private-sector debt among the reasons for the downgrade of the nation's creditworthiness to AA- from AA.

S&P and Fitch now rate Spain as AA- and both also have signalled further possible downgrades.

"Despite signs of resilience in economic performance during 2011, we see heightened risks to Spain's growth prospects due to high unemployment, tighter financial conditions, the still high level of private sector debt, and the likely economic slowdown in Spain's main trading partners," S&P said in a statement.

It also noted the "incomplete state" of labour market reform and said Spain's banking system would continue to weaken with "problematic assets" rising further.

The euro edged lower in Asian trade after S&P's move, though it still remained on track for its biggest weekly rally since January. It last traded at $1.3741 , having shed around a third of cent.

"We could lower the ratings again if, consistent with our downside scenario, the economy contracts in 2012, Spain's fiscal position significantly deviates from the government's budgetary targets, or additional labor market and other growth-enhancing reforms are delayed," S&P added.

Earlier, Fitch cut credit ratings or signalled possible downgrades for several major European banks. It downgraded UBS. ' Reuters

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AIA growth jumps in Q3 as insurance demand rises

HONG KONG: AIA Group Ltd , Asia's No.3 insurer, said growth accelerated in the third quarter, with its value of new business rising 53 percent as strong performance in markets such as Malaysia helped boost earnings.

The insurer's value of new business (VONB) rose 53 percent to $245 million in the three months ending August, it said in a filing to the Hong Kong bourse on Friday, Oct 14. VONB, a key indicator that measures profitability of new business, rose 32 percent in its fiscal first half.

"It is an impressive set of numbers," said Stanley Tsai, an analyst at Keefe, Bruyette & Woods in Hong Kong. "While part of it is because of a lower base in Q3 last year, continued repricing and a move away from lower margin products are all helping to boost earnings."

Underlying group VONB margins rose 4.5 percentage points to 36 percent from a year ago, but remained largely flat from the first half, the insurer said. It also said its number of agents had increased, but did not give further details.

With its relatively young population and high savings rate, Asia has increasingly become the next battleground for insurance companies such as AIA and rivals Prudential and China's Ping An .

AIA is the Asian life insurance unit spun off by American International Group Inc , which still owns about a third of the company. It raised more than $20 billion in a Hong Kong offering last year.

"Rising affluence is profoundly important in extending the scope for long term savings and, with accelerating health care costs further increasing demand for medical protection across the region, consumers are seeking greater security and stability which will also benefit AIA," it said in the statement.

AIA shares have risen about 24 percent since its IPO in October last year, versus a 19 percent decline in the benchmark Hang Seng index . - Reuters

Extension in Eng Tek's privatisation raises eyebrows

KUALA LUMPUR: The delay sought by ENG TEKNOLOGI HOLDINGS BHD []'s major shareholder TYK Capital Bhd in the takeover exercise is raising concerns among analysts.

On Thursday, Oct 13, Eng Tek said TYK Capital had sought to extend both the due diligence period and funding confirmation period by 45 days.

The extension was agreed by Eng Tek on Oct 7 as the 'extension of time is to provide TYK Capital's financiers more time to complete the due diligence,' it said.

Eng Tek also said''the floods in Ayutthaya, Thailand has resulted in the temporary shut down of the group's Thai operations on Oct 8.

'As the Thai operations contribute approximately 40% to the Eng Tek group's revenue for the financial year ended Dec 31, 2010, the company and TYK Capital are working together to assess the flood situation, the impact on the financial position and prospects of the Eng Tek Group (once there is clarity on the flood situation) and how this may affect the terms and conditions and/or the viability of the proposals,' it said.

An analyst said Eng Tek's decision was made separately and independently of the floods in Thailand (which have impacted 40% of their revenue).

However, he expressed some concern that there might have been some linkage.

Another question raised was why had Eng Tek's shares trading at such a large discount to the privatisation offer price of RM2.50. The analyst said the concern was the market's concern whether the privatisation could go through.

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Google's Q3 eases fears over ad market, costs

SAN FRANCISCO: Google Inc's results trounced Wall Street expectations with the help of strong advertising sales and deft cost controls, driving its shares nearly 7 percent higher on Thursday, Oct 13.

The Internet search and advertising leader, benefiting from an expanding online ad market and sharper focus in research, increased its profit by 26 percent and revenue by 37 percent in the third quarter.

A darkening economic outlook -- particularly in Europe, had stoked worries about advertising growth. But Google's revenue and paid-clicks performance boded well for the fourth quarter, analysts said.

Shares of Google rose to $597.93 in extended trade after closing 1.91 percent higher on Nasdaq.

"The real interesting thing here is the expenses that weren't as high as the Street was anticipating. R&D was less than we were expecting," said UBS analyst Brian Pitz. "This is the fourth quarter in a row the company has accelerated their revenue on top line."

Chief Executive Larry Page -- who assumed the top job this year and had to contend with fears on Wall Street he would let costs spiral out of control -- has begun whittling down Google's sprawling portfolio of initiatives and projects.

On a conference call with analysts, he said the company would instead divert resources to projects with higher potential returns.

"We have to make tough decisions about what to focus on, or we end up doing things that don't have the impact that we strive for," Page said. "Since we last spoke we've begun the process of shutting over 20 different products."

The company is plowing money into its fast-growing mobile business and increasingly competing with Apple Inc. Google's Android mobile software, already the world's most-used smartphone platform, is gaining momentum. It powers 190 million devices, up from 135 million in mid-July.

GOING MOBILE -- IN A BIG WAY?

Page said the revenue run rate for Google's mobile business is more than $2.5 billion, a significant leap from $1 billion just a year ago.

In August, Google announced plans to acquire Motorola Mobility Holdings for $12.5 billion. The deal, which Google expects to close this year or early 2012, will give it one of the wireless industry's largest patent libraries, as well as hardware manufacturing operations that will allow Google to develop its own line of smartphones.

But analysts and investors worry that Google is entering a low-margin business in which it has no experience. A move to build its own phones could also jeopardize support for Google's free Android mobile software from other phone manufacturers such as Samsung Electronics and HTC Corp.

Google said its net income in the three months ended September 30 grew to $2.73 billion from $2.17 billion in the year-ago period.

Excluding certain items, Google said it earned $9.72 per share in the third quarter. Analysts polled by Thomson Reuters I/B/E/S were expecting adjusted EPS of $8.74.

"A lot of people were expecting spending to be out of control, but they had good control," said Herman Leung, an analyst with Susquehanna Financial Group.

Google's recently launched social networking service, Google+, is also on investor radars. Its effort to challenge Facebook's dominance in the red-hot social networking market got off to a fast start in June, collecting 10 million users in the first two weeks.

On Thursday, it said it had signed up more than 40 million users for its recently launched Google+ social network.

Its third-quarter net revenue, which excludes fees that the company shares with partner websites, increased 37 percent year-on-year to $7.51 billion. Analysts were looking for $7.22 billion in net revenue. - Reuters

#Stocks to watch:* Jerneh Asia, TM, timber stocks, HDD

KUALA LUMPUR: After three straight days of gains on Bursa Malaysia, investors may set to take profit on Friday, Oct 14, taking their cue from the softer overnight closing on Wall Street.

The Dow and S&P 500 slipped on Thursday after JPMorgan's earnings and China's soft trade data revived worries about the impact of slower growth on profits, Reuters reported.

The declines put an end to three straight days of gains that capped off a 12 percent increase in the S&P 500 since hitting a low on Oct. 4. The Nasdaq stayed in positive territory, helped by semiconductor shares, Reuters said.

The Dow Jones industrial average fell 40.72 points, or 0.35 percent, to end at 11,478.13. The Standard & Poor's 500 Index shed 3.59 points, or 0.30 percent, to 1,203.66. But the Nasdaq Composite Index gained 15.51 points, or 0.60 percent, to close at 2,620.24.

At Bursa Malaysia on Thursday, the FBM KLCI extended its gains and closed higher for the third day running on Thursday, while key regional markets eased off a little, as concerns from Europe's debt crisis as well as weaker Chinese trade data weighed on investor sentiment.

While the KLCI jumped 1.15% or 16.37 points to 1,444.87 with a stronger broader market, volume also surged to the highest in recent months with trading hitting 1.51 billion shares valued at RM1.96 billion.

Stocks to watch on Friday include cash-rich JERNEH ASIA BHD [], Telekom Malaysia and, timber stocks Jaya Tiasa and TA ANN HOLDINGS BHD [], and hard disk drive companies.

The Edge FinancialDaily reported on Friday that Jerneh Asia's proposal to buy a Sabah-based developer is said to be out the window as definitive terms could not be agreed upon despite extensive discussions, a source said, opening up the possibility of a capital repayment to shareholders, if necessary approvals are granted.

Foreigners held about 17% of Telekom Malaysia's shares, an increase from less than 10% previously. The increase in the foreign shareholdings reflected the investors' confidence in TM's business and also the good take-up rate for its UniFi internet services.

TM's move to work with Green Packet was expected to increase its revenue also.

Meanwhile, GREEN PACKET BHD []'s wireless broadband arm, Packet One Networks (M) Sdn Bhd (P1), will begin offering fibreoptic cable-powered high speed broadband (HSBB) and possibly IPTV services by 1Q12, having sealed a 10-year wholesale agreement with TELEKOM MALAYSIA BHD [] (TM).

Jaya Tiasa and Ta Ann rose in line with the firmer recovery on Bursa Malaysia and underpinned by expected demand from Japan. Investors will be watching if these stocks can extend their gains amid some profit taking expected on Friday.

Hard-disk drive component manufacturers' Thai operation continued to be affected by the floods in Thailand.

Among the latest was MQ TECHNOLOGY [] BHD []'s unit in Thailand has temporarily suspended the operations since Wednesday, Oct 12 due to the severe flooding.

The company said the floods had affected the operations of its unit MPT Solution Co., Ltd in Pathumthani. The unit makes plate moulds, tooling, jig and fixtures for data storage and semiconductors.

Global HDD leader Seagate Technology plc expects hard drive supply to be affected in the current quarter following a disruption in the supply chain due to the severe floods in Thailand.

The hard disk drive manufacturer said it expected certain components in the supply chain will be constrained.

GLOBAL MARKETS-China data weighs on stocks, copper

NEW YORK: Global stocks fell and oil and copper declined on Thursday, Oct 13 after soft Chinese data drove worries about the strength of world economy.

The euro slipped against the dollar a day after hitting an almost one-month high. European Central Bank policy makers warned the euro zone could fall back into recession.

The ECB also warned that forcing private bondholders to accept losses on euro zone sovereign debt could damage the euro and hurt banks.

An index of U.S. bank shares slid 2.9 percent and an index of European lenders lost 3.7 percent.

Shares of JPMorgan Chase & Co., the second largest U.S. bank, slid 4.8 percent to $31.60. after it reported a drop in quarterly earnings. JPMorgan was the first major U.S. bank to post results this season.

Prices of U.S. Treasury debt rose as investors sought relative safety. Major stock markets and the euro had recently jumped sharply on hopes the debt crisis was close to being resolved.

"Over the last week we have seen a major short squeeze in a number of risk-sensitive assets," said Jens Nordvig, head of G10 currency strategy at Nomura in New York.

"But the fundamental picture remains clearly negative," he said. "We remain very skeptical that European policy makers will bring out a convincing policy response in coming weeks."

U.S. shares fell from three-week highs after China reported its trade surplus narrowed for a second straight month in September. Both imports and exports were lower than expected.

The Dow Jones industrial average fell 40.72 points, or 0.35 percent, to 11,478.13. The S&P Poor's 500 dipped 3.59 points, or 0.30 percent, to 1,203.66. The Nasdaq Composite gained 15.51 points, or 0.60 percent, to 2,620.24.

A spike in shares of chip makers helped drive the tech-heavy Nasdaq higher.

The S&P 500 has run up more than 10 percent from a 2011 low hit on Oct. 4; on Wednesday it notched the largest seven-day rally since March 2009 on growing optimism European leaders were making progress in tackling the region's debt problems.

World stocks as measured by MSCI were down 0.2 percent after six days of gains.

Crude oil imports into China, one of the largest engines of demand growth, dropped 12 percent in September from last year's record high. Brent crude fell 0.2 percent on the day, snapping a six-day winning streak. U.S. light crude futures dropped 1.2 percent, further hurt by a rise in stockpiles.

The soft data from China also pressured copper prices. The industrial metal, often taken as a proxy for economic growth expectations, fell 2.5 percent. China is the world's largest copper consumer, accounting for nearly 40 percent of global demand.

The euro slipped against the U.S. dollar, pulling back from a one-month high, after the ECB warned about the impact on the currency and the region's banks of involving bondholders in euro zone bailouts.

Slovakia's parliament backed a plan to bolster the euro zone's rescue fund after political parties agreed to hold an early election, concluding the ratification process in all euro zone countries.

But even with a revamped rescue fund, European banks remain vulnerable to a Greek default and to sovereign downgrades. That increases the urgency for them to raise more capital to remain financially sound, analysts said.

The single currency hit a New York session low of $1.3685 on trading platform EBS. It last traded at $1.3786, down less than 0.1 percent on the day. The euro on Wednesday touched its highest level versus the greenback since Sept. 16.

Italy sold 6.2 billion euros of debt, split across four bonds. But yields remained under pressure, and the European Central Bank stepped into the secondary market after the auction, buying Italian debt to cap rising yields.

The benchmark 10-year U.S. Treasury note was up 9/32, with the yield at 2.1798 percent.

Thirty-year bonds gained as much as two points after a $30 billion auction that saw yields fall below market forecasts. They last traded up 30/32 in price to yield 3.149 percent. - Reuters

US STOCKS-JPMorgan drags blue chips down; Google up late

NEW YORK: The Dow and S&P 500 slipped on Thursday, Oct 13 after JPMorgan's earnings and China's soft trade data revived worries about the impact of slower growth on profits.

The declines put an end to three straight days of gains that capped off a 12 percent increase in the S&P 500 since hitting a low on Oct. 4. The Nasdaq stayed in positive territory, helped by semiconductor shares.

Some analysts said a pause was in store for the market, given the S&P 500's recent advance. The benchmark S&P 500 has had its largest seven-day rise since March 2009 on growing optimism that European leaders will find a way to contain the region's debt problems.

JPMorgan Chase & Co, the second-largest U.S. bank, slid 4.8 percent to $31.60 and was the biggest drag on the Dow after reporting a drop in its third-quarter net profit. The news followed disappointing results from Alcoa on Tuesday.

"It's early, but it seems like after having a series of great corporate earnings in the face of not-such-great macro numbers, now maybe we're seeing a little bit less robust corporate earnings," said Eric Kuby, chief investment officer of North Star Investment Management Corp. in Chicago.

Healthy U.S. profits have been among the biggest drivers for stocks since their March 2009 lows.

The Dow Jones industrial average fell 40.72 points, or 0.35 percent, to end at 11,478.13. The Standard & Poor's 500 Index shed 3.59 points, or 0.30 percent, to 1,203.66. But the Nasdaq Composite Index gained 15.51 points, or 0.60 percent, to close at 2,620.24.

GOOGLE FLIES

After the bell, shares of Google rose 6 percent to $592.43 after it reported revenue that exceeded Wall Street's expectations.

"Christmas came early for Google shareholders," said Colin Gillis, an analyst at BGC Partners. "The digital economy is still strong. Google is capturing all the economics from this, and we are moving into the sweet spot when investors want to own Google."

China's trade surplus narrowed for a second straight month in September as both imports and exports were lower than expected, pointing to cooling domestic and global economic demand.

In U.S. economic data, new claims for jobless benefits were little changed last week and the trade deficit narrowed marginally in August, indicating a modest improvement in the economy.

According to a Reuters poll, analysts have reined in their expectations for U.S. economic growth, though it is still expected to pick up a notch by year-end.

JPMorgan, the first major U.S. bank to report earnings, said profits were hurt as the European debt crisis pushed investment banking clients to the sidelines. The KBW Bank index shed 2.9 percent while Bank of America Corp lost 5.5 percent to $6.22.

Boosting the Nasdaq, Vertex Pharmaceuticals Inc climbed 9.1 percent to $43.88 after IMS Health said it was revising estimates of the number of prescriptions written in late September for Vertex's hepatitis C drug.

An index of semiconductors rose 2 percent.

About 7 billion shares were traded on the New York Stock Exchange, NYSE Amex and Nasdaq for the day, below the year's daily average so far of about 8 billion.

Declining stocks outnumbered advancing ones on the NYSE by a ratio of about 3 to 2, and on the Nasdaq, decliners slightly outpaced advancers. - Reuters

JPMorgan reports lower Q3 net income

JPMorgan Chase & Co reported lower third-quarter profit as investment banking fees fell with a slowdown in corporate dealmaking.

The first major U.S. bank to announce results for the period, JPMorgan said earnings were $4.3 billion, or $1.02 a share, compared with $4.4 billion, or $1.01 a share, a year earlier.

The company's share count declined 3 percent from a year ago as it bought back stock. ' Reuters

''

TM says foreign shareholding up at 17%

KUALA LUMPUR: Foreigners held about 17% of TELEKOM MALAYSIA BHD []'s shares, an increase from less than 10% previously, said TM managing director and group CEO Datuk Zamzamzairani Mohd Isa.

He said on Thursday, Oct 13 the increase in the foreign shareholdings reflected the investors' confidence in TM's business and also the good take-up rate for its UniFi internet services.

Meanwhile, P1 Networks (M) Sdn Bhd will roll out the high-speed broadband services via fibre optics to its customers by the first quarter of next year.

Its chief executive officer Michael Lai said P1 would leverage on TM's high speed broadband network. The services could include iPTV and video-on-demand.

Envair in talks for O&G services venture

KUALA LUMPUR: Loss-making ENVAIR HOLDING BHD [] is in talks for a possible collaboration to venture into the oil and gas services sector.

The company said on Thursday, Oct 13 the board of directors and key management were deliberating on the viability of the current business of air filtration system and manufacturing.

'We are considering options available to improve its long term and sustainable future growth. As such, the company is currently in talks with few potential partners for joint collaboration to venture into the oil and gas services sector,' it said.

Envair posted net losses of RM290,000 in the second quarter ended June 30, 2011 mainly due to its manufacturing operations while for the first half, the net losses were RM816,000.

It had then said the losses were due to the absence of any contracts in the second quarter. It had accumulated losses of RM13.92 million as at June 30.

MQ Technology's Thai unit suspends operations due to floods

KUALA LUMPUR: MQ TECHNOLOGY [] BHD []'s unit in Thailand has temporarily suspended the operations since Wednesday, Oct 12 due to the severe flooding.

The company said on Thursday, the floods had affected the operations of its unit MPT Solution Co., Ltd in Pathumthani. The unit makes plate moulds, tooling, jig and fixtures for data storage and semiconductors.

'Currently, the company and its local team are in the process of monitoring the events leading to this and taking precautionary measures including the protection of assets and working on recovery plan,' it said.

MQ Technology said the impact of the flooding on its net assets and earnings for the financial year ending Dec 31, 2011 would depend on the damages and extent of its recovery which could not be ascertained as yet.

KLCI jumps 1.15%, but Asian markets pare down gains

KUALA LUMPUR: The FBM KLCI extended its gains and closed higher for the third day running on Thursday, Oct 13, while key regional markets eased off a little, as concerns from Europe's debt crisis as well as weaker Chinese trade data weighed on investor sentiment.

European shares were flat after recent gains and following data showing China's trade surplus narrowed for a second straight month in September, with both imports and exports lower than expected, according to Reuters.

It reflected global economic weakness, which along with the euro zone debt crisis has kept investors avoiding aggressive risk taking over the past months, it said.

The benchmark index jumped 1.15% or 16.37 points to 1,444.87, lifted by

Gainers thumped losers by 677 to 174, while 233 counters traded unchanged. Volume was 1.51 billion shares valued at RM1.96 billion.

At the regional markets, Hong Kong's Hang Seng Index rose 2.34% to 18,757.81, Japan's Nikkei 225 gained 0.97% to 8,823.25, the Shanghai Composite Index added 0.78% to 2,438.79, South Korea's Kospi was up 0.75% to 1,823.10, Taiwan's Taiex up 0.62% to 7,428.33 while Singapore's Straits Times Index slipped 0.14% to 2,733.97.

Among the gainers on Bursa Malaysia, BAT rose 90 sen to RM44.50, PPB up 56 sen to RM16.86, MISC 41 sen to RM6.41, DiGi 40 sen to RM30.88, Chin Teck 35 sen to RM8.25, CI Holdings and Ta Ann 25 sen each to RM4.77 and RM4.70, Jaya Tiasa 23 sen to RM5.41, while UOA Development and Genting were up 22 sen each to RM1.50 and RM10.02.

Among the decliners, Asia File fell 24 sen to RM3.55, Glenealy 10 sen to RM5.55, Top Glove and Affin down eight sen each to RM4.12 and RM2.91, while Quality Concrete, Rapid, RHB Capital and Brahims fell six sen each to RM1.34, RM2.02, RM7.44 and 42 sen respectively.

The actives included UOA Development, Timecom, Malton, GPRO, Karambunai, Zelan and Dutaland.

Timber stocks climb on Japan rebuilding demand

KUALA LUMPUR: Timber stocks Jaya Tiasa and TA ANN HOLDINGS BHD [] and JAYA TIASA HOLDINGS BHD [] rose in line with the firmer recovery on Bursa Malaysia on Thursday, Oct 13 and underpinned by expected demand from Japan.

At 3.27pm, Jaya Tiasa was up 24 sen to RM5.42 with 30,900 shares done. Ta Ann added 23 sen to RM4.68 with 683,500 units transacted.

The FBM KLCI rose 12.99 points to 1,441.49. Turnover was 1.13 billion shares valued at RM1.32 billion. There were 609 gainers, 167 stocks down and 238 unchanged.

Amresearch maintained a Buy on Ta Ann, with a lower fair value of RM6.50/share (versus RM6.96 previously) based on a downward revised PE of 14 times (vs 15 times previously) against an unchanged FY11F EPS of 46.4 sen. It said the lower PE was more in line with current market valuations.

'We recently also revised downwards Jaya Tiasa's PE by one notch to 14 times for the same reason. Ta Ann is primed to benefit from the impending passing of an estimated 12 trillion yen (US$156 billion) budget that is expected to be tabled at the Diet,' it said in a report on the sector last Friday, Oct 7.

Amresearch said Ta Ann's timber prices have held up rather well, in spite of the easing of demand from Japan due to high inventory and delayed reCONSTRUCTION [] efforts.

Annualised housing starts of 841,401 units for 2011 translate into a 3.5% growth from the previous year's 813,126 units.

Mydin plans RM350m debt notes, rated AAA by RAM

KUALA LUMPUR: Mydin Mohamed Holdings Bhd has proposed a RM350 million Danajamin-guaranteed Islamic debt notes which RAM Rating Services Bhd has assigned a preliminary enhanced rating of AAA(fg).

The ratings agency said on Thursday, Oct 13 the long-term rating of the medium-term notes programme (2011/2024) has a stable outlook.

'The enhanced rating reflects the irrevocable and unconditional financial guarantee from Danajamin Nasional Bhd (rated AAA/stable/P1), which enhances the credit profile of the proposed IMTN beyond Mydin's stand-alone credit risk,' it said.

Mydin's core business is the operation of hypermarkets, emporiums, bazaars, mini markets and convenience stores.

RAM Ratings said excluding the financial guarantee, Mydin's stand-alone credit profile is underpinned by its widespread presence throughout Peninsular Malaysia via its 88 outlets as at July 2011.

The outlets comprise of five hypermarkets/malls, 17 emporiums, two bazaars, 48 mini markets, eight convenience stores and eight franchise outlets.

RAM Ratings cautioned that while Mydin's current financial profile was healthy, its balance sheet and credit metrics were expected to deteriorate.

To finance its ambitious expansion plan, the group's debt burden was projected to balloon from RM87.10 million as at end-March 2011 to RM471.60 million in FYE 31 March 2012 and rising to about RM550 million to RM650 million in the next two years.

Mydin's gearing ratio is envisaged to stay above 1.0 times over the next three years while its operating profit before depreciation, interest and tax debt coverage ratio and operating cashflow debt coverage ratio are expected to be somewhat weak at around 0.1 times.

The ratings agency cautioned on the group's plan to open 13 hypermarkets over the medium term, which would mean two to three new hypermarkets a year between FY March 2013 and FY March 2017.

'This contrasts against its track record of only four hypermarkets in five years, and entails considerable execution risk and also makes demands on its management resources,' it pointed out.

RAM Ratings also noted that Mydin was exposed to intense competition within the local mass grocery retail sector, due to the large foreign-owned hypermarkets which can capitalise on the experience and networks of their established parents.

'Moreover, Mydin also has to contend with its local and more established peers. The keenly competitive environment and increasing contributions from the hypermarket segment to the group's performance have been compressing its OPBDIT margin, from 7.38% in FY March 2007 to just 3.10% in FY March 2011.

'Amid this challenging landscape, the group's mini markets and convenience stores have been incurring losses while its emporiums' sales and profits have been declining in the last few years. Going forward, the operating environment for hypermarkets is envisaged to remain competitive as key players implement their expansion strategies in a tussle for market share,' it said.

Real estate sector to grow 6.8% this yr, says Husni

KUALA LUMPUR: Malaysia's real estate sector is expected to expand by 6.8 per cent this year and 5.7 per cent next year, despite a challenging external economic environment.

Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said on Thursday, Oct 13 the domestic property sector is expected to maintain its growth momentum as the 2012 Budget is sufficiently accommodative to mitigate any systematic disruption to the economy.

"Our property sector has also seen an impressive turnaround from a decline of 8.3 per cent from 2008 to 2009 to a year-on-year growth of 32.6 per cent in 2010," he said at the FIABCI Asia Pacific Real Estate Congress 2011 here.

Ahmad Husni also said that the business services sector will experience similar growth of 6.8 per cent this year and 5.7 per cent next year.

"Since Malaysia's economic recovery from external shocks brought about by the 2009 global economic crisis, confidence in the future growth of the domestic economy has returned," he said.

He said the future of real estate development in the country is bright as the government plans to build a public transportation system and establish feeder services in the next 10 years.

Other projects include revitalising the Klang River to serve as the focal point for new riverside commercial and recreational areas, he said, adding that the government will encourage the building of iconic urban developments.

Ahmad Husni also said Asia Pacific will contribute the highest percentage of property developments worldwide.

"As per capita income grows, Asia's real estate industry will see a growing demand for increasingly sophisticated products," he said. - Bernama

What would S P Setia's Liew do next?

KUALA LUMPUR: Shares of S P Setia Bhd were marginally lower at midday on Thursday, Oct 13, as investors mulled over the next move by S P Setia chief executive officer Tan Sri Liew Kee Sin.

At midday, S P Setia was down one sen to RM3.86 while the warrants were unchanged at 87.5 sen which were lower that Permodalan Nasional Bhd's offer of RM3.90 for the shares and 91 sen offer for the warrants.

The latest development was on Wednesday when S P Setia said there were no competing offers for the stake in the company after the Sept 28 move by Permodalan Nasional Bhd to acquire the property developer.

UOB Kay Hian Malaysia Research said the market was awaiting Liew's decision on PNB's general offer proposal.

'The upcoming two weeks are crucial as the decision could be made anytime from now till Oct 28 when SP Setia's independent adviser (IA) is expected to release its recommendation to shareholders on whether they should accept PNB's GO,' it said.

S P Setia and PNB had recently issued a joint statement that it PNB's desire to retain Liew and S P Setia's management, while PNB's involvement would only be through board representation.

'We explore two outcomes: a) Tan Sri Liew stays on and does not sell any shares, and b) he stays on but sells part/all of his entire 11.3% stake. We reckon the market would be pricing a steeper discount to the share price if the second outcome materialises,' it said.

UOB Kay Hian Research said according to the Malaysian Code of Takeovers and Acquisitions, the offer price of a GO should be at the highest price paid in the six-month period prior to the GO. Bursa filings showed that in Apr 11, a separate fund under PNB's purview, had in fact acquired shares in S P Setia at a higher price which ranged between RM4.10 to RM4.20.

'While PNB's basis for offering the GO of RM3.90 is based on the highest price at which the triggering fund had acquired SP Setia's shares, it could potentially be argued that the highest price at which PNB, as the ultimate beneficial owner of the shares and as the offerer of the GO, acquired its collective stake in S P Setia, is in fact higher than RM3.90.

'After all, it appears that without counting the separate fund's stake in S P Setia, PNB may not have even triggered the GO ownership threshold,' it said.

UOB Kay Hian Research said it was maintaining a HOLD call on S P Setia with an interim target price of RM3.90 (takeover offer price).

'However, we believe the share price would probably retrace to our pre takeover target price of RM3.30 once the verdict is announced,' it said.

Honda Malaysia cuts back on output in Melaka

KUALA LUMPUR: Honda Malaysia Sdn Bhd has reduced its output at its Melaka plant since Monday due to the disruption in parts supply from Thailand due to the severe floods there.

Honda Malaysia managing director and CEO Yoichiro Ueno said on Thursday, Oct 13 Honda Automobile (Thailand) Co. Ltd. (HATC, Ayutthaya plant) had been forced to halt production.

He said the suspension of HATC's plant production in Ayutthaya area had impacted Honda Malaysia's production.

Yoichiro said HATC and its suppliers in the same region -- whose operations had been lso suspended -- provides considerable number of parts for the Malaysian CKD (complete knocked down) models namely City, Civic, Accord and CR-V.

He added that Honda Malaysia had reduced its output in Melaka to prolong the production using on-hand stock.

'We regret that there will be delay in product delivery as the production in our plant slows down due to the suspension of parts supply. Currently, the delivery timing for all our CBU (complete built-up) units are not affected,' Yoichiro added.

Plantations, Genting group lift FBM KLCI at mid-day

KUALA LUMPUR: Gains at select blue chip stocks and the overall positive sentiment at key regional markets gave the FBM KLCI a boost, as the benchmark index extended its positive run for the third day.

Asian shares rose on Thursday on growing hopes that Europe is taking concrete steps to contain the region's debt woes and head off a systemic banking crisis, according to Reuters.

Strengthening investor confidence in the euro zone underpinned the single currency, while receding concerns about the banks' problems threatening the wider financial system sharply tightened Asian credit markets, it said.

The FBM KLCI rose 11.06 points to 1,439.56 at mid-morning.

The broader market sentiment was positive with 395 gainers and 87 losers, while 182 counters traded unchanged. Volume was 401.4 million shares valued at RM413.81 million.

BIMB Securities Research in a note Oct 13 said that a swing in sentiments to the positive on equities was rather apparent in line with a clearer picture on the Euro zone.

The stronger closing on major European bourses and Wall Street which ended 105 points higher had pointed a more sanguine outlook for equities going forward, it said.

The research house said barring any nasty surprises, it expects that investors would trickle back to the stock markets after what was a confidence trashing 3 months.

Most Asian bourses also fared better hence a more improved performance by the FBM KLCI, it said.

'The benchmark index jumped almost 17 points to close at almost 1,430 with the next resistance seen at the 1,450 mark.

'With most of the negative news already discounted, seems like the equities markets are now waiting for further positive news before more investors flock back. A false dawn, let's hope not!' it said.

On Bursa Malaysia, ''DiGi led the gainers and rose 36 sen to RM30.84, CI Holdings and Amway 22 sen each to RM4.74 and RM8.80, Pasdec 19 sen to 55 sen, Ta Ann and Genting 16 sen each to RM4.61 and RM9.96, UOA Development 15 sen to RM1.43, while Batu Kawan, Petronas Chemicals and Sime Darby added 14 sen each to RM15, RM5.94 and RM8.69 respectively.

Among the decliners were RHB Capital, Notion Vtec, Kheesan, Tenaga, Tradewinds PLANTATION []s, MBMR, Padini and Top Glove.

Meanwhile, the actives included Sanichi, Timecom, UOA Development, Dutaland, CIMB and MBSB.

Plantations, Genting group lift FBM KLCI at mid-day

KUALA LUMPUR: The FBM KLCI extended its gains at the mid-day break on Thursday, Oct 13, lifted by gains at index-linked plantation counters and the Genting stable of companies.

Asia stocks also rose today on growing hopes that Europe is taking concrete steps to contain the region's debt woes and head off a systemic banking crisis.

The FBM KLCI rose 0.98% or 14.01 points to 1,442.51 at 12.30pm.

Gainers led losers by 589 to 149, while 225 counters traded unchanged. Volume was 914.58 million shares valued at RM1.01 billion.

The ringgit strengthened 0.13% to 3.1285 versus the US dollar; crude palm oil futures for the third month delivery fell RM4 per tonne to RM2,874, crude oil shed 52 cents per barrel to US$85.05 while gold rose US$4.33 an ounce to US$1,680.35.

At the regional markets, Hong Kong's Hang Seng Index rose 1.91% to 18,680.08, Japan's Nikkei 225 added 1.11% to 8,836.33, South Korea's Kospi Index gained 1.13% to 1,829.86, the Shanghai Composite Index was up 0.50% to 2,432.19, Taiwan's Taiex up 0.61% to 7,427.25 and Singapore's Straits Times Index edged up 0.50% to 2,751.35.

Among the gainers on Bursa Malaysia, PPB added 44 sen to RM16.74, Chin Teck 35 sen to RM8.25, IOI Corp 15 sen to RM5.15, KLK 14 sen to RM20.72, Sime Darby nine sen to RM8.64 and Genting Plantations eight sen to RM7.19.

Other gainers included BAT that rose 84 sen to RM44.44, DiGi and Ta Ann 28 sen each to RM30.76 and RM4.73, CI Holdings 24 sen to RM4.76, Jaya Tiasa 22 sen to RM5.40, MSM 21 sen to RM4.94, HLFG 20 sen to RM11.12, Genting 18 sen to RM9.98 and Genting Malaysia 13 sen to RM3.73.

UOA Development was the most actively traded counter with 28.4 million shares done. The stock rose 17 sen to RM1.45.

Other actives included Malton, Timecom, Dutaland, Sanichi, GPRO and Karambunai.

Meanwhile, decliners included Asia File, Glenealy, Tenaga, Brahims, Top Glove, Kheesan, CHHB and TSM.

CPO futures dip, but value emerging in sold down plantations

KUALA LUMPUR: Crude palm oil (CPO) futures for December dipped RM7 to RM2,871 per tonne at the midday break on Thursday, Oct 13, snapping a short-term rally.

However, UOB Kay Hian Research Malaysia said it saw value emerging in selected PLANTATION []s after recent selldown, though it maintained its CPO price assumption of RM2,900 per tonne for 2011 and RM2,700 for 2012.

At 12.30pm, IOI Corp was up 15 sen to RM5.15, while KLK added 14 sen to RM20.72 and Sime Darby nine sen higher at RM8.64.

UOB Kay Hian Research said the CPO price was likely to start trending up as supply risks ease in 2012.

'We upgrade the regional plantation sector to Market Weight from Underweight. CPO price corrected 29% due to an inventory build-up on the back of higher supply growth. However, we believe the inventory drawdown will start in 1Q12 as production growth tapers,' it said.

For big-cap plays, the research house said it preferred Sime Darby (Target: RM9.80) for the turnaround of its plantation operation which will deliver higher yield performance and also potential support coming from its motor and industrial divisions.

YTL Power rises in active trade as price attractive

KUALA LUMPUR: YTL POWER INTERNATIONAL BHD []'s share price rose in active trade in late morning on Thursday, Oct 13 as analysts viewed the current share price as undervalued.

At 11.08am, it was up four sen to RM1.73 with 4.30 million shares done.

Maybank Investment Bank Research said YTLP's share price has slipped to attractive levels implying net dividend yields of 5.5% or more than 10% above the historical average and only 1.3 times one-year forward price-to-book value which is an 8'' year low and even below the Global Financial Crisis (GFC) trough of 1.6 times in October 2008.

'This devaluation is despite its relatively resilient earnings base. Therefore, we maintain our DCF based TP of RM2.02 but upgrade our call from Hold to Buy,' it said.

Maybank IB Research said deep value is emerging with little downside risk.

'We will not be surprised should YTLP's shareholders embark on corporate exercises to capitalise on its currently attractive valuations. Also, we understand that it is studying the possibility of acquiring distressed utility assets in Europe, providing another re-rating catalyst,' it said.

Genting nears deal to secure Miami site for US$3.8b project

KUALA LUMPUR: The Genting Group has moved closer to its plan for the US$3.8 billion Resorts World Miami project in Florida after reaching a deal with a property owner.

The Miami Herald said on Wednesday, Oct 12 said the Genting Group had reached an agreement with the owner of the Omni Center to move forward on a friendly foreclosure on the property.

The centre was set to be auctioned on Oct. 27. If all goes according to plan, Genting should have title to the property by Nov. 7, the report quoted Resorts World Genting general counsel Jessica Hoppe as saying.

To recap, Genting had in September gained control over the entire US$206 million mortgage on the Omni despite earlier protests from the owner of the Omni, Argent Ventures.

The Miami Herald said the Omni purchase would be used by Genting to leverage in its quest to gain approval from state legislators for a gaming licence by providing an immediate source of new revenue and jobs.

The news report said Genting's strategy was to turn the Omni into the first stage of the US$3.8 billion Resorts World Miami with the ability to open a casino with restaurants, bars and entertainment facilities as soon as fall 2012 ' within months of receiving potential approval from state legislators for a gambling license.

The next step was a casino would go into the currently unused retail portion of the Omni Center. The Omni project is expected to create 1,500 CONSTRUCTION [] jobs and 5,000 permanent jobs.

'Genting plans to spend nearly $700 million on structural and cosmetic improvements to the Omni, Hoppe said. These would include renovating the Omni's existing Hilton hotel and refurbishing the exterior of the entire facility,' the Miami Herald said.

Blue chips boost KLCI, as Asian markets rise

KUALA LUMPUR: Gains at select blue chip stocks and the overall positive sentiment at key regional markets gave the FBM KLCI a boost, as the benchmark index extended its positive run for the third day.

Asian shares rose on Thursday on growing hopes that Europe is taking concrete steps to contain the region's debt woes and head off a systemic banking crisis, according to Reuters.

Strengthening investor confidence in the euro zone underpinned the single currency, while receding concerns about the banks' problems threatening the wider financial system sharply tightened Asian credit markets, it said.

The FBM KLCI rose 11.06 points to 1,439.56 at mid-morning.

The broader market sentiment was positive with 395 gainers and 87 losers, while 182 counters traded unchanged. Volume was 401.4 million shares valued at RM413.81 million.

BIMB Securities Research in a note Oct 13 said that a swing in sentiments to the positive on equities was rather apparent in line with a clearer picture on the Euro zone.

The stronger closing on major European bourses and Wall Street which ended 105 points higher had pointed a more sanguine outlook for equities going forward, it said.

The research house said barring any nasty surprises, it expects that investors would trickle back to the stock markets after what was a confidence trashing 3 months.

Most Asian bourses also fared better hence a more improved performance by the FBM KLCI, it said.

'The benchmark index jumped almost 17 points to close at almost 1,430 with the next resistance seen at the 1,450 mark.

'With most of the negative news already discounted, seems like the equities markets are now waiting for further positive news before more investors flock back. A false dawn, let's hope not!' it said.

On Bursa Malaysia, ''DiGi led the gainers and rose 36 sen to RM30.84, CI Holdings and Amway 22 sen each to RM4.74 and RM8.80, Pasdec 19 sen to 55 sen, Ta Ann and Genting 16 sen each to RM4.61 and RM9.96, UOA Development 15 sen to RM1.43, while Batu Kawan, Petronas Chemicals and Sime Darby added 14 sen each to RM15, RM5.94 and RM8.69 respectively.

Among the decliners were RHB Capital, Notion Vtec, Kheesan, Tenaga, Tradewinds PLANTATION []s, MBMR, Padini and Top Glove.

Meanwhile, the actives included Sanichi, Timecom, UOA Development, Dutaland, CIMB and MBSB.