TA Enterprise 3Q net profit dips 26.57% to RM11.73m on higher forex loss

Larger Smaller Reset KUALA LUMPUR (Dec 23): TA ENTERPRISE BHD [] net profit for the third quarter ended Oct 31, 2011 fell 26.57% to RM11.73 million from RM15.98 million a year earlier, weighed mainly by the increase in foreign exchange translation losses recorded in TA Global Group on financing activities.

The company said on Friday that its revenue for the quarter rose 12.9% to RM173.1 million from RM153.29 million in 2010.

Earnings per share for the quarter fell to 0.69 sen from 0.93 sen, while net assets per share was 92 sen.

For the nine months ended Oct 31, TA Enterprise posted net profit RM71.69 million compared to RM49.1 million while revenue rose to RM503.82 million from RM439.19 million in 2010.

Reviewing its performance, TA Enterprise said it recorded lower contributions from both the stockbroking arm and TA Global Group in the current quarter, as compared to the previous year's corresponding period.

Although TA Global Group enjoyed higher interest income from financial receivables, and higher hotel profits in line with the increase in the number of hotels in operation subsequent to the group's hotel acquisition exercises, the group recorded lower contribution from the property development arm, and high foreign exchange translation losses, it said.

On its prospects, TA Enterprise said global economic risk continued to weigh on regional growth prospects given the slow economic recovery in the US and sovereign-debt woes in Europe.

'Our local stock market activities have slowed down in the past few months but we anticipate market sentiments to moderately improve in the last quarter.

'Contributions from the group's property divisions will continue to be positive despite growing uncertainties in the global economic landscape,' it said.

The company said domestic economy was expected to be resilient supported by accelerated government spending under the Economic Transformation Programme.

'Barring any unforeseen circumstances, the group is expected to show satisfactory performance in the current financial year,' it said.

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Yinson 3Q net profit jumps to RM8.07m

Larger Smaller Reset KUALA LUMPUR (Dec 23): YINSON HOLDINGS BHD [] net profit for the third quarter ended Oct 31, 2011 jumped to RM8.07 million from RM2.5 million a year earlier, due mainly from its marine transport business and gain on disposals of subsidiary and PROPERTIES [].

The company said on Friday that its revenue for the quarter rose to RM194.48 million from RM156.19 million in 2010.

Earnings per share for the quarter rose to 11.14 sen from 3.66 sen a year earlier, while net assets per share was RM 2.02.

For the nine months ended Oct 31, Yinson's net profit rose to RM20.69 million from RM11.72 million in 2010, on the back of revenue RM549.91 million.

Reviewing its performance, Yinson said that the increase in revenue for the quarter was due mainly to increase in sales volume from its trading and marine transport business.

On its prospects, Yinson said the outlook of the global economy for the rest of 2011 had become significantly more uncertain following heightened downside risks in the advanced economies which could undermine continued global growth.

'Barring unforeseen circumstances, the group shall strive to sustain a satisfactory performance for the rest of the current financial year,' it said.

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KLCI closes higher ahead of extended weekend

Larger Smaller Reset KUALA LUMPUR (Dec 23): The FBM KLCI closed higher on Friday, in line with the generally positive sentiment at key Asian markets spurred by signals of some strengthening in the US economy as new claims for unemployment benefit dropped to their lowest in 3-1/2 years.

The 30-stock FBM KLCI rose 4.69 points to 1,496.15.

Gainers led losers by 413 to 292, while 343 counters traded unchanged. Volume was 942.51 million shares valued at RM886.66 million.

At the regional markets, Hong Kong's Hang Seng Index rose 1.37% to 18,629.17, Taiwan's Taiex added 2.07% to 7,110.73, South Korea's Kospi gained 1.07% to 1,867.22, the Shanghai Composite Index was up 0.85% to 2,204.78 and the Singapore Straits Times Index edged up 0.44% to 2,676.47.

Meanwhile, European stocks rose in early trade on Friday, extending the week's thin-volume, pre-holiday rally after reassuring US economic data in the previous session gave a short-term fillip to a market still overshadowed by the euro zone debt crisis, according to Reuters.

On Bursa Malaysia, BAT was the top gainer and rose RM1.32 to RM49.20; Lafarge Malayan Cement added 30 sen to RM6.90, Petronas Dagangan and Batu Kawan were up 28 sen each to RM17.30 and RM17.28, KLK 20 sen to RM22.20, Advanced Packaging 17 sen to RM1.35 and IJM Corp gained 16 sen to RM5.58.

Among the decliners, PPB fell 12 sen to RM16.98, Shell 11 sen to RM9.19, Tasco, Maybank and Kretam lost 10 sen each to RM1.55, RM8.35 and RM2.40 respectively, while SCGM, HELP, Sarawak Oil Palm fell nine sen each to 45 sen, RM1.62 and RM5.36 respectively, while JobStreet was down eight sen to RM2.22.

The actives included Sanichi, UEM Land, Perisai, Utopia, Astral Supreme and Envair.

Ingress Corp gets Proton contract worth RM84.8m over 5 years

Larger Smaller Reset KUALA LUMPUR (Dec 23): INGRESS CORPORATION BHD [] has received a letter of acceptance from Perusahaan Otomobil Nasional Sdn Bhd (Proton) with a total value of RM84.8 million over a period of five years to supply parts for new Proton models.

The company said on Friday its 90%-owned subsidiary Ingress Precision Sdn Bhd had been contracted to supply door sash.

Meanwhile, its wholly owned unit Ingress Engineering Sdn Bhd (IESB) would supply roof drip moulding and beltline moulding, it said.

Ingress said the supply door sash would start by the end of second quarter financial year (FY) ending Jan 31, 2014 with project duration of five years.

'The project is forecasted to generate total revenue for IPSB of approximately RM70.9 million whilst the total investment in tooling and equipment is expected to cost RM13.8 million,' it said.

It said the supply for the roof moulding project would commence by the beginning of the first quarter of the FY ending Jan 31, 2014, and was expected to generate total revenue for IESB of RM2.3 million.

Total investment for the project was estimated to be RM100,000 in tooling, it said.

Meanwhile, supply for beltline job would start by the end of first quarter of FY ending Jan 31, 2014.

'The project is forecasted to generate total revenue for IESB of approximately RM11.6 million whilst the total investment in tooling and equipment is expected to cost RM800,000,' it said.

Ingress said the projects were expected to contribute positively to its earnings.

Sunway unit gets RM27.57m job from Hap Seng Land

Larger Smaller Reset KUALA LUMPUR (Dec 23): SUNWAY HOLDINGS BHD []'s unit has secured a contract worth RM27.57 million from Hap Seng Land Development (JTR) Sdn Bhd for the CONSTRUCTION [] of pilings, basement and ground floor for one block of 43-storey service apartment at Jalan Tun Razak, KL.

Sunway said on Friday that its wholly-owned subsidiary Sunway Construction Sdn Bhd's unit Sunway Geotechnics (M) Sdn Bhd had been awarded the contract.

The company said the project was targeted for completion by Dec 12, 2012, and was expected to contribute positively to its earnings for the financial year ending Dec 31, 2012 onwards.

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European shares extend rally ahead of holiday break

Larger Smaller Reset PARIS (Dec 23) - European stocks rose in early trade on Friday, extending the week's thin-volume, pre-holiday rally after reassuring U.S. economic data in the previous session gave a short-term fillip to a market still overshadowed by the euro zone debt crisis.

At 0807 GMT, the FTSEurofirst 300 index of top European shares was up 0.7 percent at 989.19 points.

"The macro data from the U.S. is helping us forget about the debt crisis, but that shouldn't last very long, and there's still a big risk of getting a few credit downgrades in Europe before the end of the year," a Paris-based trader said.

Banks gained ground, extending their timid Christmas rally after a dismal year, with Deutsche Bank up 1.7 percent and BNP Paribas up 1.4 percent.

RAM Ratings reaffirms Maybank IB's AAA/P1 ratings

Larger Smaller Reset KUALA LUMPUR (Dec 23): RAM Ratings has reaffirmed Maybank Investment Bank Bhd's (Maybank IB) respective long- and short-term financial institution ratings at AAA and P1.

It said on Friday that the long-term rating had a stable outlook.

Maybank IB is the main investment-banking arm of the MALAYAN BANKING BHD [] universal-banking group (Maybank).

RSM Ratings said Maybank IB's ratings mirrored its parent's AAA/Stable/P1 ratings from RAM Ratings.

Maybank is Malaysia's largest financial-services group that commands the lion's share of loans and deposits in the domestic banking system, it said.

The rating agency said Maybank IB was expected to gradually derive synergistic benefits from Maybank's recent acquisition of Kim Eng Holdings Limited (Kim Eng) - a Singapore-based regional securities and investment-banking group.

'Given Kim Eng's established presence in several markets in ASEAN, Maybank IB stands to gain access to a wider distribution network, along with a regional platform to expand its investment-banking services.

'Maybank IB is a key component of the Group's Global Wholesale Banking strategy that targets the cross-selling of innovative products and services among its corporate/commercial clients,' it said.

RAM Ratings said Maybank would readily extend its support to Maybank IB should the need arise.

It also said Maybank IB's position in the domestic investment-banking arena strengthened year-on-year in the first 8 months of 2011.

The bank came in second in the league table for the domestic debt-capital market, with 26.1% of total deals by value; this represents an improvement over its fourth position last year, it said.

Lifted by higher corporate-advisory fees, the bank achieved respective pre-tax profits of RM153.8 million and RM85.1 million for FYE 30 June 2011 and the 3 months ended 30 September 2011, it said.

'As an investment bank, however, Maybank IB's financial performance is susceptible to the vagaries of the capital markets.

'On a separate note, the Bank is entirely supported by tier-1 capital, which provides the strongest loss-absorption capacity; its tier-1 risk-weighted capital-adequacy ratio stood at a strong 22.6% as at end-September 2011,' it said.

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Shanghai remains world's busiest container port -gov't

Larger Smaller Reset SHANGHAI (Dec 23): China's financial hub, Shanghai, has remained the world's busiest container port for a second year, the city government said on Friday.

The port saw its container throughput hit a record of 30 million standard 20-foot units this year, after it become the No.1 container port and handled 29.07 million units last year, boosted by international trade, the government said in a statement on its website.

The city aims to become an influential financing and shipping hub by 2020 and has rolled out a number of financial products to help exporters and shipping companies manage growing volatility in freight rates.

The Shanghai Shipping Exchange plans to expand its shipping derivatives market over the next few years after it launched derivatives based on container freight this year. - Reuters

Greenyield posts net profit RM2.19m in 1Q

Larger Smaller Reset KUALA LUMPUR (Dec 23): GREENYIELD BHD [] net profit for the first quarter ended Oct 31, 2011 rose to RM2.19 million from RM786,000 a year earlier, due'' mainly to higher revenue.

It said on Friday that its revenue for the quarter rose to RM13.58 million from RM8.02 million in 2010.

Earnings per share rose to 1.32 sen from 0.48 sen, while net assets per share was 29.17 sen.

Reviewing its performance, Greenyield said the increase in revenue was due mainly to strong demand of PLANTATION [] related products and services from overseas market.

On its outlook, Greenyield described its financial prospects as challenging.

'The group will source and implement logical and available measures to minimise the impact of all known factors affecting the profit margin,' it said.

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KLCI extends gains at mid-day as Asian markets rise

Larger Smaller Reset KUALA LUMPUR (Dec 23): The FBM KLCI extended its gains at the mid-day break on Friday, in line with its regional peers ahead of more economic data coming out from the US later today, as most global markets head for an extended weekend with the Christmas break.

At 12.30pm, the FBM KLCI was up 3.30 points to 1,494.76.

Gainers led losers by 304 to 279, while 320 counters traded unchanged. Volume was 451.74 million shares valued at RM363.87 million.

The ringgit strengthened 0.30% to 3.1565 versus the US dollar; crude palm oil futures for the third month delivery rose RM32 per tonne to RM3,129, crude oil was up 20 cents per barrel to US$99.73 and gold added US$4.75 an ounce to US$1,610.30.

At the regional markets, Hong Kong's Hang Seng Index rose 1.08% to 18.576.06, the Shanghai Composite Index gained 1.45% to 2,218.01, Taiwan's Taiex added 2.14% to 7,115.13, South Korea's Kospi rose 1.19% to 1,869.45 and Singapore's Straits Times Index edged up 0.35% to 2,674.11.

On Bursa Malaysia, Nestle and BAT rose 30 sen each to RM56.90 and RM48.18, AIC was up 15 sen to RM1.30, MAHB 13 sen to RM5.59, while KLK, UMW, Esso, Genting and IJM rose 10 sen each to RM22.10, RM6.55, RM3.51, RM10.86 and RM5.52 respectively.

Among the decliners, Tasco, Shell and PPB fell 10 sen each to RM1.55, RM9.20 and RM17 respectively; HELP and Public Bank lost six sen each to RM1.65 and RM13.20, Huat Lai and WCT fell five sen each to RM2.30 and RM2.25, while Bina Goodyear was down 4.5 sen to 60 sen.

The actives included Perisai, Astral Supreme, Sanichi, UEM Land, Envair, KNM and Utopia.

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France leads world as gloomiest over economy -poll

Larger Smaller Reset PARIS (Dec 23): France leads the world as the "most pessimistic" country in terms of the economic outlook, with the lowest recorded score in more than 30 years, according to a global poll published on Friday.

The "End of Year" survey by Gallup International of 51 countries found that France beat second placed Ireland and third placed Austria for the dubious recognition as most pessimistic, economically-speaking.

Its score of negative 79, a drop of 20 points from last year, was the lowest the poll has recorded since 1978.

"Even in 1978, after the second oil crisis that called into question an entire economic system, the French have never shown themselves as pessimistic as today," said the poll.

"Europe leads in despair, followed by North America," it said. "The rest of the world, lead by Africa, remains mostly optimistic."

With an April presidential election on the horizon and a euro zone crisis threatening havoc at home and on the continent, French voters are increasingly gloomy.

Concerns are pervasive over high unemployment, dwindling purchasing power and the fear that France's traditionally strong social support system is unraveling, even though France has mostly been spared the austerity measures taken in countries such as Greece and Spain.

"After the Second World War, there was reCONSTRUCTION [] and our country was one of the pioneers of Europe. Today the French 'Saviour State' model, praised by both Left and Right for decades, is basically considered obsolete," said the poll. "What can the French be proud of tomorrow?"

Among a list of 51 countries, Nigeria was found to be the most optimistic country, when considering economic prosperity, followed by Vietnam and Ghana.

Between 500 and 2,700 people were interviewed in each country either by phone, via the Internet or in person between Oct. 26 and Dec. 13.

The survey in France, conducted by BVA, took place between Dec. 2 and 4. - Reuters

Chin Well expects to sustain overseas revenue stream, says MD

Larger Smaller Reset KUALA LUMPUR (Dec 23): CHIN WELL HOLDINGS BHD [] expects to sustain overseas revenue contribution going forward, and focus on expanding its market share in Europe as well as emerging Asia and North America, said its managing director Tsai Yung Chuan.

He said whilst the company would take advantage of the European Union's (EU) listing of Chin Well as one of the 8 Malaysian companies exempted from import duty, it will not ignore markets in emerging Asia as well as North America.

The manufacturer of carbon steel fasteners exports its screws, bolts, and nuts to 39 countries in 5 continents.

Tsai said that over the years, the company had exported to an increasing number of countries in Europe, Asia, and North America, and more than doubled its overseas revenues to about RM400 million in just 5 years.

'Our market development strategy has indeed solidified the group's position as the leading player in Malaysia and South East Asia,' he said in a statement Friday.

Tsai said Chin Well's export revenues contributed about 78% to the Group's revenue of RM502.6 million in FY2011, versus 56% in FY2006.

He said the company intended to increase our man-hour capacity, in addition to improving our cost efficiency to maintain price competitive as part of developing its new markets.

Chin Well's total workforce currently stands at 1,080 in both facilities in Bukit Mertajam, Penang, and Nhon Trach District, Vietnam.

Tsai said the company plans to increase the workforce by 10% in the current financial year in order to cope with the increased demand for fasteners.

He said the company did not expect heavy investment in capital expenditure in the near term, since it had ample production capacity in both facilities in Penang and Vietnam, both of which were operating at about 60% utilisation rates.

In July 2011, the EU listed Chin Well as one of eight Malaysian fastener manufacturers exempt from the 85% anti-dumping duty for exports to Europe, in an attempt to circumvent transhipment of China-made fasteners through Malaysia-based fastener producers.

The EU had earlier in January 2009 imposed a five-year tariff of up to 87.5% on imports of China-made fasteners to Europe, in an attempt to reinstate fair competition in global market.

RHB Research downgrades construction sector to Neutral from Overweight

Larger Smaller Reset KUALA LUMPUR (Dec 23): RHB Research Institute Sdn Bhd has downgraded its recommendation for the CONSTRUCTION [] sector to Neutral from Overweight.

In a note Friday, the research house said investors' confidence and comfort level that the Klang Valley MRT project would start work soon was being chipped away by further delays in the roll-out of certain already long-overdue large-scale projects.

Even if the Klang Valley MRT project is to start work as scheduled, initial progress is likely to be painfully slow due to bureaucratic hurdles, it said.

There is generally a lack of credible new large-scale projects in the pipeline, it said.

'Gamuda and Fajarbaru are downgraded to Market Perform from Outperform.

'No changes in Outperform for TRC, HSL and Eversendai, Trading Buy for MRCB, Market Perform for WCT and Underperform for IJM,' said RHB Research.

FBM KLCI up at mid-morning, but stays shy of 1,500-level

Larger Smaller Reset KUALA LUMPUR (Dec 23): The FBM KLCI rose on Friday and stayed in positive territory in line with regional markets and the overnight gains at Wall Street, but stayed shy of the crucial 1,500-level in thin trade.

The FBM KLCI was up 2.77 points to 1,494.23 at 10am, lifted by gains at select blue chips.

Gainers led losers by 223 to 126, while 213 counters traded unchanged. Volume was 198.4 million shares valued at RM105.92 million.

Asian stocks edged up on Friday, as signs of a strengthening economy in the United States encouraged a modest year-end rally in riskier assets, according to Reuters.

Wall Street stocks had risen for a third straight day on Thursday, leaving the S&P 500 index virtually flat for the year, after data showed new claims for unemployment benefit dropped to their lowest in 3-1/2 years, it said.

At the regional markets, Hong Kong's Hang Seng Index rose 1.11% to 18,582.37, Taiwan's Taiex gained 1.62% to 7,079.36, South Korea's Kospi added 1.15% to 1,868.69, Singapore's Straits Times Index was up 0.38% to 2,674.83 and the Shanghai Composite Index edged up 0.14% to 2,189.33.

Meanwhile, Japan's stock markets were closed for a national holiday.

BIMB Securities Research in a note Dec 22 said better than expected job data in the US and higher than expected injection of funds by the ECB had positive cumulative impact on the equity markets all round.

Consequently European bourses registered an all round gain of around 1% whilst the Dow Jones Industrial Average climbed 62 points to remain above the 12,000 mark, it said.

The research house said it looked like focus on the Eurozone had been diverted temporarily in light of the tension in the middle-east where crude prices were again pushed nearer to the US$100/barrel again.

In Asia, regional markets closed on a mixed note from the lack of fresh leads, it said.

'As for Malaysia, the FBM KLCI is inching ever closer to the psychological 1,500 mark with a 6.5 point gain. Although we believe selective buying on blue chips to continue, the extended weekend may thwart any aggressive push on the upside.

'Nonetheless, we remain sanguine that the index to breach the 1,500 level,' it said.

Among the gainers, Nestle was up 30 sen to RM56.90, BAT added 26 sen to RM48.14, AIC 15 sen to RM1.30, Dutch Lady and CIMB 10 sen each to RM23.40 and RM7.10, KLK and Hai-O up eight sen each to RM22.08 and RM1.90, while CCM and Muhibbah rose seven sen each to RM1.49 and RM1.15.

Perisai was the most actively traded counter with 9.53 million shares done. The stock added 4.5 sen to 73 sen.

Other actives included Astral Supreme, Sanichi, Envair, Utopia, UEM Land, LFE Corp and KNM.

Decliners included Y&G, Bina Goodyear, HELP, Kretam, Scomi Engineering, MESB, WCT and Bernas.

Perisai advances on better 2012 outlook

KUALA LUMPUR (Dec 23): PERISAI PETROLEUM TEKNOLOGI [] Bhd share rose in active trade on Friday after the company said it expects contribution from its mobile offshore production unit (MOPU), which it acquired through Garuda Energy (L) Ltd to be realised by FY12.

At 9.08am, Perisai was up 4.5 sen to 73 sen with 4.4 million shares done.

Its managing director Zainol Izzet Ishak said on Thursday that the acquisition would be finalised by the end of this year and will start contributing to the group's bottom line from the first day of its operation as the group's asset.

KLCI rises in tandem with regional markets

KUALA LUMPUR (Dec 23): The FBM KLCI rose in early trade on Friday, in line with the gains at regional markets and the firmer overnight close at Wall Street.

At 9.10am, the FBM KLCFI was up 3.84 points to 1,495.30.

Gainers led losers 111 by 44, while 126 counters traded unchanged. Volume was 49.64 million shares valued at RM29.61 million.

Among the early gainers were BAT, CCM, KLK,'' CIMB, Muhibbah, Genting, IGB, PacificMas, Perisai and Supermax.

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HELP retreats on weaker 4Q earnings

KUALA LUMPUR (Dec 23): HELP INTERNATIONAL CORPORATION [] Bhd shares retreated in early trade on Friday after its net profit for the fourth quarter ended Oct 31, 2011 fell 44.6% to RM3.59 million from RM6.47 million a year earlier, due to new student recruitment affected by delays in obtaining licences and approvals for operations.

At 9.20am, HELP fell five sen to RM1.66 with 2,000 shares traded.

Revenue for the quarter rose to RM28.44 million from RM27.33 million in 2010.

HELP had proposed a final gross dividend of two sen per share of 50 sen each, amounting to RM2.13 million for the financial year ending Oct 31, 2011.

MRCB shares rise on Sabah EPF building upgrade contract

KUALA LUMPUR (Dec 23): MALAYSIAN RESOURCES CORP []oration Bhd shares edged up on Friday after its unit MRCB Engineering Sdn Bhd has been awarded a RM13.93 million contract to upgrade the Sabah Employees Provident Fund (EPF) building.

At 9.26am, MRCB gained two sen to RM2.09 with 191,300 shares done.

MRCB said on Thursday that the project involved renovating and upgrading the EPF Building in Kota Kinabalu, Sabah of approximately 400,000 square feet.

MRCB said the project would be financed via internally generated funds and/or borrowings, and completed within 18 months from Jan 16, 2012.

JCY International up after upgrade by OSK Research

KUALA LUMPUR (Dec 23): JCY International Bhd shares rose on Friday after OSK Investment Research raised its recommendation on JCY Trading Buy from Sell.

At 9.35am, JCY added half a sen'' to 91.5 sen with 844,400 shares traded.

OSK Research on Thursday upgraded the TECHNOLOGY [] sector to Neutral and said that better HDD pricing could help mitigate losses from the Thailand flood.

It said that against the backdrop of the massive works in progress to restore operations following Thailand's crippling floods, the worst could well be over.

The research said it had become less bearish on the hard-hit HDD components sector given the ongoing accelerated restoration as well as potential price hike over the immediate term, which could mitigate the earnings pressure from forgone capacity in the short term.

'As for JCY, we are raising our earnings forecast by more than 100% as their equipment was unscathed. Valuation switched from 0.9x PBV to 8x FY12 PER.

'Call upgraded to Trading Buy with Fair Value of RM1.30. Understand that there are rumours of a strong price push over the next 1 month,' it said.

Seoul shares up; shipbuilders lead early gains

Larger Smaller Reset SEOUL (Dec 23): Seoul shares opened up 0.74 percent on Friday, boosted as positive U.S. jobless data fostered hopes of an economic recovery.

Gains were led by shipmakers, with STX Offshore & Shipbuilding Co climbing 2.12 percent, while shares in Hyundai Heavy Industries, the world's largest shipbuilding company, rose 1.12 percent.

The Korea Composite Stock Price Index (KOSPI) was up 0.88 percent at 1,863.69 points as of 0001 GMT. - Reuters

GLOBAL MARKETS-Asian shares up as U.S. data drives year-end gains

Larger Smaller Reset SINGAPORE (Dec 23): Asian stocks edged up on Friday, as signs of a strengthening economy in the United States encouraged a modest year-end rally in riskier assets.

Wall Street stocks had risen for a third straight day on Thursday, leaving the S&P 500 index virtually flat for the year, after data showed new claims for unemployment benefit dropped to their lowest in 3-1/2 years.

The euro crept fractionally higher, but remained subdued amid doubts over how effective this week's European Central Bank tender of cheap loans will be in easing the financial strain on troubled euro zone economies.

MSCI's broadest index of Asia Pacific shares outside Japan rose 0.5 percent, with Australian shares rising more than 1 percent. Tokyo's financial markets were closed for a holiday.

Asian equity markets, both developed and emerging, have sharply underperformed U.S. stocks in 2011, with the MSCI Asia ex-Japan and the Nikkei share average both down about 18 percent, while Australia's benchmark has lost about 13 percent.

The euro crawled up to around $1.3055 in thin trade.

The ECB's first ever tender of ultra-cheap three-year loans on Wednesday, which saw 523 banks gorge on a total of 489 billion euros, has failed to win the single currency much support.

But despite the long-running debt crisis the euro is only down around 2.5 percent for the year, having found support from higher ECB interest rates in the first half of 2011 that pushed it to a year high near $1.50 in May. - Reuters

GLOBAL MARKETS-Banks lead equities higher; euro pressured

Larger Smaller Reset NEW YORK (Dec 22): World stocks advanced on Thursday, boosted by a rosier U.S. economic outlook and rising European bank shares, while the euro struggled versus the U.S. dollar on concerns that the euro zone debt crisis will only continue to intensify.

The benchmark U.S. stock index rose for a third straight day after government data showed new claims for unemployment benefits dropped to their lowest in more than 3-1/2 years, and stronger business investment pointed to a pick-up in output in the current quarter.

U.S. consumer sentiment improved in December to its highest level in six months.

"This is supportive of the fact that the economy is gaining momentum and that the fourth quarter will be much better than people were expecting even just a month ago," said Jim McDonald, chief investment strategist at Chicago-based Northern Trust Global Investments.

Banks were among the top performers in European and U.S. equity markets. Traders said the European Central Bank's cheap loans to lenders would help ease their funding strains.

The STOXX Europe 600 Banks index closed up 2.0 percent and the benchmark FTSEurofirst 300 added 1 percent.

The S&P financial sector added 2.05 percent.

After the closing bell in New York, the Dow Jones industrial average gained 61.91 points, or 0.51 percent, to 12,169.65. The S&P 500 Index added 10.28 points, or 0.83 percent, to 1,254. The Nasdaq Composite rose 21.48 points, or 0.83 percent, to 2,599.45.

Global stocks as measured by MSCI rose 0.7 percent, still on track for a fall of about 10 percent in 2011.

EURO PRESSURED

Analysts said the European Central Bank's first-ever tender of ultra-cheap three-year loans on Wednesday was not giving much support to the euro. Doubts remained over how much of the funds will be lent to boost the ailing euro zone economy or used to buy sovereign debt of struggling economies as banks deleverage and cut back exposure to government bonds.

"European leaders are not fixing the crisis and they are not doing the things necessary to fix it," said Paul Dietrich, chairman and chief investment officer at Foxhall Capital Management in Orange, Connecticut.

"They talk, but they're not backing up the talk with anything like what we did in the United States. And it's not the sovereigns that is causing this crisis, but the banks themselves."

The euro edged up less than 0.1 percent to $1.3050, off the session peak of $1.3119, according to Reuters data. It remains within a cent of a 1-month low hit last week.

The looming threat of euro zone sovereign credit rating downgrades was also keeping investors on edge through the year-end season and into 2012.

In debt markets, Italian 10-year bond yields ticked up 12 basis points to 6.933 percent after the ECB was forced to step back into the secondary market on Wednesday as yields jumped higher in the wake of the ECB's loan tender.

Yields on equivalent Spanish paper were up 12 basis points at 5.431 percent.

Euro zone debt markets are expected to come under fresh pressure with some 230 billion euros of bank bonds, up to 300 billion in government bonds and more than 200 billion euros in collateralized debt all maturing in the first quarter of 2012.

U.S. Treasuries prices advanced in thin trade, benefiting from Federal Reserve purchases and concerns about the euro zone's debt problems.

Thirty-year bonds rose 10/32, their yields falling to 2.9883 percent from just over 3 percent on Wednesday.

Benchmark 10-year notes also rose 4/32 in price, with yields falling to 1.9546 percent, from 1.97 percent on Wednesday.

U.S. crude futures settled up 0.9 percent at 99.53 per barrel, rising for a fourth straight session as violence in Iraq and upcoming Iranian navy exercises raised fears of potential supply disruptions. Supportive economic data also provided a boost for oil.

Copper prices rose 1.1 percent. - Reuters

U.S. jobless claims drop signals economic momentum

Larger Smaller Reset WASHINGTON (Dec 22): The number of Americans filing new claims for jobless benefits hit a 3-1/2 year low last week, bolstering views the economy was gaining momentum, even though third-quarter growth was revised down.

Other data Thursday underscored the firming tone in the economy, with consumer sentiment scaling a six-month high in December and a barometer of future activity rising for a seventh straight month in November.

While the economy is wrapping up 2011 with a spring in its step, bickering over budget policy in Washington and the debt crisis in Europe have cast a cloud over its prospects next year.

A payroll tax cut and benefits for the long-term unemployed, both of which are due to expire at year end, have become tangled in partisan politics and it is unclear whether they will be renewed.

There were signs Thursday the impasse had been broken, with House Speaker John Boehner informing Senate Majority Leader Harry Reid he will set a vote on a Senate-passed two-month extension of the payroll tax cut, according to a Democratic leadership aide.

"The economy is carrying some clear momentum into 2012," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. "If Congress doesn't kill that by failing to extend the tax breaks, we can look forward to a better year ahead."

Initial claims for state unemployment benefits dropped 4,000 to 364,000, the Labor Department said. That was the lowest level since April 2008 and just a month after the collapse of Bear Stearns.

The claims data, which covered the survey period for the December nonfarm payrolls report, helped to take the sting out of a separate report showing the economy expanded at only a 1.8 percent annual rate in the third quarter.

Growth, which had previously been reported to have expanded at a 2 percent pace, was held back by a sharp drop in healthcare spending, the Commerce Department said. A month ago, it had said healthcare spending had risen.

The revision to healthcare spending estimates reflected new source data, which showed losses at nonprofit hospitals.

However, spending on long-lasting goods was stronger than previously estimated, indicating consumer demand remained healthy.

Prospects for spending were boosted by the rise in consumer confidence. The Thomson Reuters/University of Michigan's sentiment index rose to 69.9 from 64.1 in November as measures of both current conditions and future expectations increased.

LABOR MARKET IMPROVING

The data helped stocks on Wall Street to post their third straight day of gains. The U.S. government bond market largely ignored the data, while the dollar was flat against a basket of currencies.

Even as much of the rest of the world is slowing down, with a mild recession forecast for Europe next year, the U.S. economy remains resilient.

The labor market is improving, households are spending, home building is picking up and factory output is expanding, putting the economy on course for at least a 3 percent growth pace in the fourth quarter. That would be the fastest pace in 18 months.

An index from the private sector Conference Board that seeks to predict the strength of future economic activity rose for a seven straight month in November, suggesting the economy could pick up even more speed by spring.

While claims for first-time unemployment benefits tend to be volatile this time of the year, they have dropped for three straight weeks. A four-week moving average, a better measure of trends, is now at its lowest level since June 2008.

"One unexpectedly low number can easily be a fluke; two are interesting; three are telling us something real is happening in the labor market," said Ian Shepherdson, chief U.S. economist at High Frequency Economics in Valhalla, New York.

"The drop in claims in recent weeks, if sustained, is consistent with private payrolls growth ramping up to about 200,000 per month."

Nonfarm employment growth has grown by an average of 131,636 jobs per month so far this year, but not enough to significantly lower the jobless rate which is currently at 8.6 percent.

GROWTH GAINING STEAM

Last quarter's growth was still a step up from the April-June period's 1.3 percent pace. Part of the pick-up in output reflected a reversal of factors that held back growth earlier in the year.

The drop in healthcare consumption caused consumer spending growth to fall to a 1.7 percent rate from 2.3 percent. Consumer spending accounts for about 70 percent of economic activity.

Business inventories fell, but not as sharply as previously reported. Restocking by businesses is expected to support growth in the fourth quarter, helping to keep factories busy.

In addition, businesses showed little signs of cutting back on spending and profits continued to grow at a healthy clip.

Excluding inventories, the economy grew at a 3.2 percent rate, revised down from a 3.6 percent pace. - Reuters

US STOCKS-Rally brings S&P closer to break-even for 2011

Larger Smaller Reset NEW YORK (Dec 22): U.S. stocks rose on Thursday, putting the S&P 500 on the cusp of finishing out the year higher as another decline in jobless claims pointed to further improvement in the labor market.

The S&P rose for a third day in seasonally light volume that has contributed to sharp swings recently. With the benchmark index near break-even year-to-date and the Dow already higher for 2011, U.S. stocks appeared on track to outperform such major overseas markets as China, Brazil and Europe, all of which are down more than 10 percent year-to-date.

The latest bit of optimism on Wall Street came from a drop in weekly claims for jobless benefits to a 3-1/2-year low. Also helping equities, U.S. consumer sentiment improved in December, hitting its highest level in six months as Americans felt better about the economy's prospects.

"This is supportive of the fact that the economy is gaining momentum and that the fourth quarter will be much better than people were expecting even just a month ago," said Jim McDonald, chief investment strategist at Chicago-based Northern Trust Global Investments.

Cyclicals, which have come under pressure recent from uncertainties over global growth, were the day's top gainers, with financials gaining 2.1 percent, followed by energy up 1.1 percent and materials, up 0.9 percent.

Consumer staples, considered a defensive play, were the weakest sector, falling 0.2 percent.

The Dow Jones industrial average was up 61.84 points, or 0.51 percent, at 12,169.58. The Standard & Poor's 500 Index was up 10.29 points, or 0.83 percent, at 1,254.01. The Nasdaq Composite Index was up 21.48 points, or 0.83 percent, at 2,599.45.

The CBOE Volatility index, a gauge of investor fear, fell 1.4 percent and is down about 13 percent so far this week, putting it on track for four weeks of declines.

Recent gains have lifted the S&P 500 above its 50-day moving average, though the index has run into trouble when it sought to move above its 200-day moving average, currently around 1,260.

The levels have been key for the market this year.

Lower volume ahead of the Christmas and New Year's Day holidays has left the market susceptible to the heightened volatility this week.

Investors warned that a year-end rally would not necessarily translate into elevated expectations for 2012 because many of the issues that hit the market this year, such as slow growth and Europe's debt crisis, remained unresolved.

"Next year will be a tug of war between better economic data here and the prospects for emerging market growth to pick up on one hand, with the European debt crisis on the other side of the rope," said McDonald, who helps oversee about $650 billion in assets.

A downward revision of the U.S. Commerce Department's figures on third-quarter economic growth had little impact on stocks, with investors focused on the economy's performance in the fourth quarter.

The Commerce Department said the economy grew at a 1.8 percent annual pace in the third quarter, down from its prior estimate of 2 percent.

Micron TECHNOLOGY [] Inc jumped 15.7 percent to $6.41 as investors looked past limp quarterly results announced late Wednesday and focused on a potential 2012 rebound in long-stagnant memory chip demand and prices.

Tibco Software Inc climbed 8 percent to $23.76 after the business software maker forecast first-quarter revenue above estimates and said fourth-quarter profit and revenues soared.

American Greetings Corp slumped 21.1 percent to $13.39 after third-quarter profit dropped nearly 40 percent and warned 2012 cash flow would be hurt by higher expenses.

Almost three-fourths of stocks traded on the New York Stock Exchange closed higher while 63 percent of Nasdaq-listed shares ended in positive territory.

Volume was light, with about 5.88 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year's daily average of 8.47 billion. ' Reuters

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HELP 4Q net profit falls 44.6% to RM3.59m

Larger Smaller Reset KUALA LUMPUR (Dec 22): HELP INTERNATIONAL CORPORATION [] Bhd net profit for the fourth quarter ended Oct 31, 2011 fell 44.6% to RM3.59 million from RM6.47 million a year earlier, due to new student recruitment affected by delays in obtaining licences and approvals for operations.

Revenue for the quarter rose to RM28.44 million from RM27.33 million in 2010.

Earnings per share for the quarter fell to 2.50 sen from 4.60 sen in 2010, while net assets per share was 88 sen.

HELP proposed a final gross dividend of two sen per share of 50 sen each, amounting to RM2.13 million for the financial year ending Oct 31, 2011.

For the financial year ended Oct 31, HELP's net profit fell 31.6% to RM13.06 million from RM19.1 million in 2010, on the back of increased revenue of RM108.06 million from RM105.2 million a year earlier.

Bank Negara international reserves up US$200m to US$135b

Larger Smaller Reset KUALA LUMPUR (Dec 22): The international reserves of Bank Negara Malaysia rose to US$135 billion (RM429.8 billion) as at Dec 15 this year from US$134.8 billion as at Nov 30.

In a statement Dec 22, Bank Negara said the reserves position was sufficient to finance 9.8 months of retained imports and is 4.1 times the short-term external debt.

KLCI edges up to close higher, but broader market stays weak

Larger Smaller Reset KUALA LUMPUR (Dec 22): The FBM KLCI inched up to close higher on Thursday and bucked the trend among regional markets that appeared to be weighed by eurozone debt crisis jitters.

Meanwhile, European stocks rose in early trade on Thursday, reversing all of the previous session's losses, but nagging worries over the euro zone debt crisis after the European Central Bank's 3-year tender were seen capping the rebound ahead of the holiday break, according to Reuters.

The FBM KLCI rose 6.48 points to close at 1,491.46, lifted by gains at select blue chips.

But the broader market remained weak with losers beating gainers by 455 to 290, while 287 counters traded unchanged. Volume was 1.2 billion shares valued at RM1.02 billion.

At the regional markets, Japan's Nikkei 225 fell 0.77% to 8,395.16, the Shanghai Composite Index lost 0.22% to 2,186.30, Hong Kong's Hang Seng Index was down 0.21% 18,378.23, South Korea's Kospi fell 0.05% to 1,847.49, Taiwan's Taiex was flat at 6,966.35 and Singapore's Straits Times Index shed 0.32% to 2,664.80.

On Bursa Malaysia, Nestle was the top gainer and added 42 sen to RM56.60; Hong Leong Bank rose 32 sen to RM10.86, United PLANTATION []s 30 sen to RM18.60, PPB 24 sen to RM17.10, Supermax 20 sen to RM3.68, Top Glove 19 sen to RM4.65, Shell 15 sen to RM9.30, Genting 14 sen to RM10.76 and Hartalega 13 sen to RM5.68.

Jaya Tiasa was the top loser and fell 18 sen to RM6.81; Widetech lost 14 sen to 52 sen, Petrol One 13 sen to 84 sen, Dutch Lady and KAF down 12 sen each to RM23.30 and RM1.60, while Sungei Bagan lost nine sen to RM2.78.

The actives included TMC Life, Sanichi, Hibiscus, Utopia, Flonic, UEM Land, Envair and IRCB.

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Muhibbah's Australian JV gets RM1.05b job in Queensland

Larger Smaller Reset KUALA LUMPUR (Dec 22): Muhibbah Engineering Bhd and its Australian joint venture partner Monadelphous Group Limited have landed a RM1.05 billion (AUD330 million) job to build an approach jetty and ship berth in Queensland.

Muhibbah said on Thursday that Monadelphous Muhibbah Marine JV (MMM) had secured the contract to build the jetty and ship berth associated with the Wiggins Island Coal Export Terminal Pty Ltd's (WICET) Project at Gladstone in Queensland.

MMM is a 50:50 joint venture between Muhibbah CONSTRUCTION [] Pty Ltd, a wholly owned subsidiary of Muhibbah in Australia and Monadelphous Engineering Pty Ltd, a wholly owned subsidiary of Monadelphous Group Ltd.

Muhibbah said the contract included the construction of offshore plant and infrastructure including a 1.8km approach jetty and transfer tower platform, wharf, wharf conveyor including the drive and take up tower, berthing and mooring dolphins, ship access platforms, jetty conveyor (including the section onshore) and transfer tower.

It said the work, which is part of stage one of the project, was scheduled to commence immediately and be completed by the first quarter of the 2014 calendar year.

Muhibbah said the contract was expected to contribute positively to its earnings for the current and future financial year.

Monadelphous Group Limited (Monadelphous) is an Australian firm listed on the Australian Securities Exchange, an engineering group providing construction, maintenance and industrial services to the resources, energy and infrastructure industry sectors.

MRCB gets RM13.93m job to upgrade Sabah EPF building

Larger Smaller Reset KUALA LUMPUR (Dec 22): MALAYSIAN RESOURCES CORP []oration Bhd unit MRCB Engineering Sdn Bhd has been awarded a RM13.93 million contract to upgrade the Sabah Employees Provident Fund (EPF) building.

MRCB said on Thursday that the project involved renovating and upgrading the EPF Building in Kota Kinabalu, Sabah of approximately 400,000 square feet.

MRCB said the project would be financed via internally generated funds and/or borrowings, and completed within 18 months from Jan 16, 2012.

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S&P affirms 'A-' long-term issuer credit ratings on Sarawak

Larger Smaller Reset KUALA LUMPUR (Dec 22): Standard & Poor's Ratings Services (S&P) has affirmed its 'A-' long-term issuer credit ratings on Sarawak with a stable outlook.

The rating agency also affirmed the 'axAA' ASEAN scale rating on Malaysia.

At the same time, S&P affirmed the 'A-' issue ratings on the US$800 million notes (due August 2015) of Sarawak International Inc. (SII) and the US$800 million notes (due June 2026) of Equisar International Inc. (EII).

In a statement Thursday, S&P credit analyst Phua Yee Farn said the ratings on Sarawak were affirmed to reflect the state's strong operating balance, robust liquid reserves, and its supportive relationship with the federal government of Malaysia (foreign currency A-/Stable/A-2; local currency A/Stable/A-1; axAA+/axA-1+).

"These factors are weighed against a hefty debt burden, sizable contingent liabilities, which are potentially growing, and, to a lesser extent, an economy concentrated in commodities."

'In with our expectations so far, volatility in the states balances after capital expenditure has subsided since 2007 with the divestment of 1st Silicon, a state-owned wafer fab manufacturer. Sarawak has since recorded four consecutive years of surpluses after capital accounts,' said Phua.

S&P said a key supporting factor for Sarawak was the state's extremely strong liquidity position.

Its large holdings of free cash and liquid assets provide ample coverage for debt servicing, and comfortably offer Sarawak the capacity to face potential fiscal shocks, it said.

The robust liquidity position also acts as a buffer against the state's large un-hedged U.S. dollar debts, and mitigates short-term exposure risks, it said.

'The state government has a supportive relationship with the ruling coalition, Barisan Nasional (BN).

'But this could affect the state should the political composition at the central or state level change drastically,' it said.

S&P said Sarawak's very high direct and tax-supported debt constrains the ratings on the state.

'We estimate that Sarawak's gross tax-supported debt burden reached 238% of revenues in 2011, much higher than for similarly rated peers.

'Nevertheless, the state remains in a strong overall net creditor position,' it said.

S&P said the other risks included the emergence of contingent liabilities stemming from the renationalisation of Sarawak Energy Bhd. (SEB). In our opinion, should SEB no longer be financially self-supporting, the contingent liability would translate into added tax-supported debt for the state.

Another credit constraint is the state economy's concentration in the resource sector, it said.

The sector accounts for about half of Sarawak's GDP, and this concentration could negatively affect the state should there be a prolonged downturn in commodities prices.

Phua said the stable outlook reflected S&P's expectation that the state will continue its strong budgetary performance and maintain its robust liquidity position over the next two to three years.

'Downward pressure on the ratings could occur if Sarawak state breaches the 270% tax-supported debt to operating revenue benchmark, if the state ceases to be in a net cash position, or if there is a material increase in leverage associated with major state-owned-enterprises.

'On the other hand, upside potential to the ratings on Sarawak is limited by Malaysia's sovereign creditworthiness,' said Phua.

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OSK Research upgrades Technology sector to Neutral

Larger Smaller Reset KUALA LUMPUR (Dec 22): OSK Investment Research has upgraded the TECHNOLOGY [] sector to Neutral and said that better HDD pricing could help mitigate losses from the Thailand flood.

It said that against the backdrop of the massive works in progress to restore operations following Thailand's crippling floods, the worst could well be over.

The research said it had become less bearish on the hard-hit HDD components sector given the ongoing accelerated restoration as well as potential price hike over the immediate term, which could mitigate the earnings pressure from forgone capacity in the short term.

"Hence, we are upgrading our call on the sector to Neutral as the downside risks subside and the supply chain moves towards full restoration, possibly by 3QCY12," it said on Dec 22.

The research house upgraded Eng Teknologi and Notion Vtec from Sell to Neutral, and upped its recommendation on JCY International to Trading Buy from Sell.

Envair Holdings active, down in afternoon session

Larger Smaller Reset KUALA LUMPUR (Dec 22): ENVAIR HOLDING BHD [] shares were actively traded and fell on Thursday after Carpet Raya Sdn Bhd director Deepak Jaikishan ceased to be a substantial shareholder in the loss-making company.

At 2.50pm, Envair fell four sen to 28 sen with 13.96 million shares done.

A filing with Bursa Malaysia on Dec 21 showed that Deepak had disposed six million Envair shares in the open market on Dec 14.

Deepak had emerged as a substantial shareholder in Envair after he acquired a 5.06% equity interest or six million shares in Envair in a direct deal on Dec 2.

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KLCI edges up marginally at mid-day, but sentiment remains jittery

Larger Smaller Reset KUALA LUMPUR (Dec 22): The FBM KLCI edged up marginally at the mid-day break on Thursday, while key regional markets slipped as lingering concerns over the eurozone debt crisis kept investor sentiment jittery.

Asian shares and the euro eased on Thursday as doubts remained over how much of the funds banks raised from an inaugural long-term European Central Bank tender will actually flow into struggling euro zone economies and help restore confidence, according to Reuters.

The FBM KLCI edged up 0.79 point to 1,485.77 at the mid-day break, lifted by select blue chips.

Gainers trailed losers by 212 to 380, while 274 counters traded unchanged. Volume was 629.41 million shares valued at RM397.79 million.

The ringgit weakened 0.53% to 3.1778; crude palm oil futures for the third month delivery rose RM13 per tonne to RM3,085; crude oil added 18 cents per barrel to US$98.85 while gold fell US$4.78 an ounce to US$1,610.45.

At the regional markets, Japan's Nikkei 225 fell 0.58% to 8,411.33, Hong Kong's Hang Seng Index lost 0.53% to 18,318.39, the Shanghai Composite Index was down 0.44% to 2,181.52, Singapore's Straits Times Index lost 0.39% to 2,662.79, South Korea's Kospi fell 0.23% to 1,844.20 and Taiwan's Taeix shed 0.07% to 6,961.34.

On Bursa Malaysia, Boustead added 14 sen to RM5.80, Nestle and Top Glove added 12 sen each to RM56.30 and RM4.58, Supermax gained 11 sen to RM3.59, while PPB, Hartalega and Petronas Dagangan gained 10 sen each to RM16.96, RM5.65 and RM17.06 respectively.

Among banking stocks, Hong Leong Bank gained six sen to RM10.60, CIMB four sen to RM6.99 and Maybank one sen to RM8.38.

BAT was the top loser this morning and fell 28 sen to RM47.68; Petrol One down 13 sen to 84 sen, KAF 10 sen to RM1.62, Sungei Bagan seven sen to RM2.80, Mahajaya down 6.5 sen to 61 sen, while Utusan, Uzma, Batu Kawan, Quality Concrete and Kluang lost six sen each to 72 sen, RM1.56, RM17, RM1.24 and RM2.60 respectively.

Meanwhile, the actively traded stocks included TMC Life, Hibiscus, Sanichi, Flonic, IRCB, Envair and Rimbunan Sawit.

Korea's POSCO Engineering bidding for Ampang LRT Line extension job

Larger Smaller Reset KUALA LUMPUR (Dec 22): Korean group, POSCO Engineering and CONSTRUCTION [] Co. Ltd has submitted a bid for the extension of the Ampang LRT line.

Vice President of the group, Woo-Young Min, said at a media briefing this morning that the group was looking to build inroads into the Malaysian market with a successful bid.

No investment figures were provided, though as he said his group was waiting on the outcome of the bid.

Posco E & C is affiliated with Posco Group in Korea.

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Perisai Petroleum: Contribution from MOPU to be realised starting FY12

Larger Smaller Reset KUALA LUMPUR (Dec 22): PERISAI PETROLEUM TEKNOLOGI [] Bhd (Perisai) expects contribution from its mobile offshore production unit (MOPU), which it acquired through Garuda Energy (L) Ltd to be realised by FY12.

The company's managing director Zainol Izzet Ishak said on Thursday that the acquisition would be finalised by the end of this year and will start contributing to the group's bottom line from the first day of its operation as the group's asset.

"In the circular to shareholders we stated that there is a profit after tax guarantee of approximately US$16.67 million, so we expect to see the full impact from this acquisition by FY2012," Zainol said after its extraordinary general meeting (EGM) today.

Perisai bought the asset via the acquisition of Garuda Energy at USD70 million of which US$50 million is payable by cash while the remaining US$20 million would be satisfied by the issuance of 97 million shares of Perisai at a valuation of 65 sen each.

The MOPU os currently contracted by Garuda to work off the coast of Terengganu. The contracted work is for a fixed duration of two years at a charter rate of US$70,800 per day.

Over the duration of the fixed two years of the deployment, the MOPU is expected to contribute approximately USD50 million to Perisai's turnover.

In addition, the group stated that there is an option to extend the deployment of the MOPU for two further extensions of one year each.

Fajarbaru edges up on getting RM61.99m sewage treatment plant job

Larger Smaller Reset KUALA LUMPUR (Dec 22): Fajarbaru Builder Group Bhd shares edged up on Thursday after it secured a RM61.99 million contract to build a sewage treatment plant on Klang, Selangor.

At 11am, Fajarbaru gained half a sen to 92.5 sen with 30,000 shares traded.

It said on Wednesday that its wholly-owned unit Fajarbaru Builder Sdn Bhd had received a letter of acceptance dated Dec 20, 2011 from the Ministry of Energy, Green TECHNOLOGY [] and Water for Package of the sewage treatment plant.

Fajarbaru said the CONSTRUCTION [] period was 30 months commencing from the date of possession on Jan 11, 2012.

RHB Research Institute Sdn Bhd maintained its Market Perform call on Fajarbaru with a fair value of 91 sen.

The research house said this was the second key contract Fajarbaru had secured in FY06/12, boosting its year-to-date new contracts secured to RM228 million and outstanding construction orderbook by 11% from RM580 million to RM642 million.

'Assuming an EBIT margin of 8-10%, the contract will fetch RM5 million- RM6.2 million EBIT over the construction period of 30 months commencing Jan 2012.

'Forecasts are maintained as we have assumed Fajarbaru to secure RM250 million worth of new jobs in FY06/12,' it said.

RAM Ratings reaffirms Road Builder's A1/P1 ratings

Larger Smaller Reset KUALA LUMPUR (Dec 22): RAM Ratings has reaffirmed the A1/P1 ratings of Road Builder (M) Sdn Bhd's RM400 million Commercial Papers/Medium-Term Notes Programme (2006/2013) (CP/MTN) with a stable outlook.

RBM is principally engaged in CONSTRUCTION [] and is wholly owned by IJM CORPORATION BHD [].

In a statement Thursday, RAM Ratings said the ratings of RBM's CP/MTN reflected the high likelihood of support from its parent, IJM, given the close connection between the 2 entities.

It said the Company was expected to be able to count on ready support (business and financial) from IJM, if needed.

'The group's strong credit profile is underscored by its diversified earnings base as well as its established position in the construction and property sectors, in addition to its healthy financial profile,' it said.

The rating agency said that on a stand-alone basis, RBM had established a sound track record in the local construction industry via its involvement in various civil-engineering and building projects, including tolled roads, dams, water-treatment plants, airports and PROPERTIES [].

It said that at present, the company's healthy RM600 million order book was underpinned by the ongoing apportionment of construction projects from IJM, given that the former's operations and human resources had been fully integrated with the IJM Group's construction division since 2007.

RAM Ratings said as at end-March 2011, RBM's gearing level and funds from operations debt coverage ratio stood at a comfortable 0.42 times and 0.24 times, respectively.

The Company has sufficient liquidity to cover its short-term debt obligations, it said.

Its cash balances of RM115.60 million as at end-September 2011 amply cover the last principal repayment of RM40 million on its CP/MTN in March 2012, it said.

On the other hand, RBM is exposed to the cyclical and competitive construction industry, similar to all construction companies, it said.

'Nonetheless, we maintain a positive outlook on the construction sector, underscored by the implementation of projects under Budget 2012, the 10th Malaysia Plan and the Economic Transformation Programme.

'This, in addition to IJM's strong branding and track record, augurs well for the Group (and, in turn, RBM) in terms of order-book replenishment. We note that the Group has submitted bids for myriad contracts and had pre-qualified for various large-scale projects,' it said.

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Aeon's land buy positive for organic growth, says Maybank IB Research

Larger Smaller Reset KUALA LUMPUR (Dec 22): Aeon Co (M) Bhd's land acquisition in Kulai, Johor near the newly opened Johor Premium Outlet (JPO), is positive for its provides an organic growth to the group which already has a good reach in the Klang Valley, said Maybank IB Research.

'We maintain our forecasts and PER based RM7.90 target price (14x 2012) as earnings contribution will be beyond 2013.

'Aeon Co. is our top pick for consumer sector. Maintain Buy,' the research house said on Dec 22.

Aeon on Wednesday said it was acquiring two pieces of freehold land in Kulai for RM22.22 million as part of its strategy to expand its retail business.

The company entered into a sale and purchase agreement with Genting Property Sdn Bhd to acquire the freehold lands measuring a total 7.37ha for the purpose of operating a business of shopping centre with car parks and departmental stores cum supermarket.

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Sentoria Group gets SC nod to list on Main Market

Larger Smaller Reset KUALA LUMPUR (Dec 22): Sentoria Group Bhd, the developer and operator of the Bukit Gambang Resort City (BGRC) in Kuantan, Pahang, has received the approval from the Securities Commission to list on the Main Market of Bursa Malaysia Securities Bhd.

In a statement Thursday, Sentoria said it was aiming to be listed in the first quarter of 2012.

Its head of public and investor relations Nasiruddin Nasrun said the company had a unique business model through its synergistic business segments.

'The listing milestone is a culmination of the group's past 10 years of enterprise building, and delivering PROPERTIES [] and hospitality services that enrich the lives of our end-customers.

'We believe that our upcoming listing exercise would not only raise our profile nationwide, but also raise the funds necessary to bring the group to the next lap of growth,' said Nasiruddin.

Sentoria was established in 1998 and has built its expertise in the leisure and hospitality as well as the property development sectors.

BGRC is o0ne of the largest integrated resort cities in Malaysia with 547-acre land area and features multiple attractions including the Bukit Gambang Water Park and Active Academy, as well as MICE[1] facilities and 998-room accommodation for families and corporate groups.

Sentoria also develops affordable housing primarily in Kuantan. Among its completed projects are Bay Resort and Desa Hijauan within BGRC, and Taman Indera Sempurna 1 and 2.

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KLCI slips at mid-morning as excitement at Asian markets fizzles out

Larger Smaller Reset KUALA LUMPUR (Dec 22): The FBM KLCI slipped at mid-morning on Thursday in line with the key regional markets and the lackluster close at Wall Street as the initial excitement over the inaugural long-term European Central Bank tender fizzled out, and concerns over the eurozone debt crisis re-surfaced.

At 10am, the FBM KLCI shed 0.26 point to 1.484.72.

Losers edged gainers by 248 to 153, while 204 counters traded unchanged. Volume was 298.13 million shares valued at RM128.88 million.

Asian shares and the euro eased on Thursday as doubts remained over how much of the funds banks raised from an inaugural long-term European Central Bank tender will actually flow into struggling euro zone economies and help restore confidence, according to Reuters.

At the regional markets, Japan's Nikkei 225 was down 0.50% to 8,417.78, Hong Kong's Hang Seng Index shed 0.30% to 18,360.63, the Shanghai Composite Index fell 0.60% to 2,177.90, Taiwan's Taiex was down 0.11% to 6,958.53, South Korea's Kospi was shed 0.16% to 1,845.46 and Singapore's Straits Times Index fell 0.13% to 2,669.97.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients on Thursday said the FBM KLCI's resistance areas of 1,487 and 1,510 could cap market gains, whilst the obvious support areas may be located at 1,466 and 1,484.

'Due to the US markets' mixed tone last night, we may have a quiet and benign day today,' he said.

On Bursa Malaysia, Jaya Tiasa fell nine sen to RM6.90, Uzma lost seven sen to RM1.55, Mahajaya down 6.5 sen to 61 sen, Batu Kawan and Public Bank fell six sen each to RM17 and RM13.14. while YHS, RHB Capital and MISC fell five sen each to RM1.69, RM6.96 and RM5.50 respectively.

Among the gainers, KLK added 20 sen to RM22.20, F&N and Malayan Flour Mills 18 sen each to RM18.08 and RM7.48, Top Glove 14 sen to RM4.60, while PPB, Nestle and Supermax added 12 sen each to RM16.98, RM56.30 and RM3.60.

The actives included Sanichi, IRCB, TMS, Rimbunan Sawit, Envair and Utopia.

Seoul shares edge down; tech issues slide

Larger Smaller Reset SEOUL (Dec 22): Seoul shares opened down 0.39 percent on Thursday, as positive U.S. housing data was outweighed by a lackluster earnings report from TECHNOLOGY [] giant Oracle Corp that painted a gloomy picture for the sector.

Large-cap technology shares led early losses, with Samsung Electronics falling 1.23 percent and LG Electronics retreating 1.18 percent.

The Korea Composite Stock Price Index (KOSPI) was down 0.57 percent at 1,837.80 as of 0005 GMT. - Reuters

RBS chairman expects "small country" to quit euro zone

Larger Smaller Reset LONDON (Dec 22): British lender Royal Bank of Scotland's chairman expects a "small country" to leave the euro zone, telling Sky News this scenario would put more strain on the world's banking system.

"I think it is likely that one country, a small country, will drop out," Philip Hampton said in a prerecorded programme scheduled to be broadcast on Thursday.

"It could be any of them because I think that some of these things will be driven by political events as much as by economic circumstances and social unrest, and all of those sorts of things. But I think there is a very good chance that one country will fall out," he said.

On Wednesday, banks took 489 billion euros ($641 billion) of loans at the European Central Bank's first offering of three-year funding.

The move raised hopes among investors that a credit crunch could be avoided and the money may be used to buy Italian and Spanish debt, although many investors remain concerned that countries such as Greece may have to leave the euro zone.

Hampton said the British banking system had been fixed yet, although the sector was "very much on the mend". - Reuters

Asia-Pac stock sales at 3-yr low in 2011, UBS loses crown to Goldman

Larger Smaller Reset HONG KONG (Dec 22): Stock sales in Asia Pacific plunged to a three-year low in 2011 and the downturn is expected to last well into 2012 as weak performance by most of the IPOs in the region makes it harder to attract investors to new deals.

Nearly 75 percent of initial public offerings in Asia ex-Japan, larger than $250 million, are trading below their offer price, and fee revenues for banks have plunged in the second half.

With a spike in volatility unseen since the 2008 global financial crisis, 2011 also marked the first time in seven years when UBS lost the top spot in equity underwriting in the region to rival Goldman Sachs.

After a busy first half that saw massive offerings from commodities giant Glencore , Hutchison Port Holdings Trust and fashion house Prada SpA, demand evaporated in the second half, with dozens of deals pulled or slashed.

Fund managers remain wary of taking on the risk of buying into public offerings on concerns over Europe's debt crisis and slower growth in China. Investment bankers say risk appetite is not expected to return soon to the market.

"Investors had difficulty finding ways to make money in the equity capital markets in 2011. They are going to be more cautious in 2012 as a consequence," said Steven Barg, co-head of Asia ex-Japan equity capital markets at Goldman Sachs.

"Next year, and specifically the first half, is going to be very difficult structurally."

Equity issuance in the region excluding Japan tumbled 42 percent in 2011 from a year earlier to $195 billion, the lowest since the $111.4 billion recorded in 2008, according to Thomson Reuters data.

IPO deals faced a worse setback, down 51.5 percent to $80.3 billion, the smallest amount raised since 2009, data showed.

Goldman, which worked on four of the five biggest IPOs of the year in Asia Pacific, underwrote $14.9 billion worth of deals. UBS, which scored $12.03 billion this year, had been in the top post since 2005.

Chinese firms Ping An Securities and Guosen Securities raked in more in underwriting fees than any of the international giants in the region, with $231.7 million and $217.8 million respectively, according to estimates from Thomson Reuters/Freeman Consulting.

UBS, despite losing out to Goldman in dealmaking, came third with $215.6 million in estimated fees, followed by the New York-based firm's $207.9 million.

IPO WINNERS

Hong Kong has been in the limelight recently with the biggest IPOs in the world and public offerings of famous luxury brands. When it comes to performance, however, investors would have earned much more buying into South Korean and Malaysian offerings in 2011.

South Korea was home to three of the 10 best-performing offerings in 2011, Thomson Reuters data showed. Malaysia boasted two top gainers.

"In Korea there is a lot of risk taking still, there's plenty of domestic money looking for investment opportunities. Obviously that's driven by a very strong performance of the Korean economy," said Josef Schuster, founder of Chicago-based IPO investment firm IPOX Schuster LLC.

Korea Aerospace Industries Ltd led the pack among IPOs in the region. The company, which develops fighter jets and produces parts for companies including Boeing, surged about 148 percent since going public in June in a $520 million deal.

Autoparts maker Hyundai WIA is up about 114 percent since its $466 million IPO in January, while electronics retailer Himart climbed 35.4 percent after a $384 million offer in June.

"Historically, the Korean IPOs are priced at a huge discount. They are cheap and they are priced to go," said Kester Ng, head of equity capital for Asia-Pacific at J.P. Morgan in Hong Kong.

Other big gainers in Asia this year included sugar refiner MSM Malaysia Holdings, which raised $270 million in June, and Malaysian offshore oil and gas service provider Bumi Armada. MSM is up 37.4 percent, while Bumi Armada gained 35 percent.

BIGGEST LOSERS

Companies listed in Hong Kong, Shanghai and Shenzhen accounted for all but one of the 10 worst performing medium-to-large IPOs.

Stock offerings in Hong Kong sank 56.7 percent in 2011 from 2010, partly due to the weak performance of companies that have gone public. The slump in shares has been widespread in the region.

Out of the 63 IPOs above $250 million in Asia Pacific, only 16 are trading above their offer price. The downturn is reflected in the broader market, with the MSCI's index for Asia ex-Japan down about 20 percent this year as concerns over Europe's debt troubles worsened.

Pangda Automobile Trade Co Ltd had the worst-performing IPO of the year, down 86 percent since the company listed in Shanghai in April, while turbine maker Sinovel Wind Group sank 81 percent since its January debut.

UBS managed the Pangda offering, while Sinovel's deal was handled by Deutsche Bank's Zhong De Securities and Chinese firms Essence Securities and Citic Securities .

"It's more a matter of uncertainties needing to be resolved or partly resolved so that investors have more confidence putting money to work again," said Michael Kurtz, chief Asia equity strategist at Nomura International in Hong Kong.

For companies looking to raise funds in Seoul, Singapore or Shenzhen, the broad tumble could mean lower valuations in upcoming IPOs and potentially a longer time to listing than expected.

It would also limit their options for new capital as global credit conditions worsen.

The weak performance across the region could also reinforce caution among retail and institutional investors already unwilling to buy into new listings.

"Due to uncertainty over European debt issues, some of the IPOs' performance is not very good. A lot of the IPOs that listed are under the water, so the momentum for IPOs is not very good," said Patrick Yiu, a director at Cash Asset Management in Hong Kong. - Reuters

KLCI edges up in early trade, gains seen limited

Larger Smaller Reset KUALA LUMPUR (Dec 22): The FBM KLCI edged up marginally in early trade on Thursday, in line with the flat overnight close at Wall Street as global concerns over the impact of the eurozone debt crisis persists.

At 9.05am, the FBM KLCI was up 1.61 points to 1,486.59.

Gainers led losers by 90 to 62, while 100 counters traded unchanged. Volume was 61.92 million shares valued at RM20.88 million.

Among the early gainers were KLK, F&N, CBIP, BAT, PPB, Sarawak Oil Palm and Petronas Gas.

Boustead edges up in early trade after denying BHIC privatisation report

Larger Smaller Reset KUALA LUMPUR (Dec 22): BOUSTEAD HOLDINGS BHD [] shares advanced in early trade on Thursday after the conglomerate denied a news report that it was considering taking BOUSTEAD HEAVY INDUSTRIES CORP []oration Bhd (BHIC) private.

At 9.25am, Boustead was up 15 sen to RM5.81, while BHIC was unchanged at RM3.39.

'We would like to clarify that Boustead is currently not considering any proposal to privatise Boustead Heavy Industries Corporation Bhd,' the conglomerate told Bursa Malaysia Securities Bhd in a one-paragraph statement on Wednesday.

Citing unnamed sources, it was reported by a local newspaper that Boustead was planning to take BHIC private 'driven largely by the latter's seemingly cheap valuations especially in light of the recent RM9 billion vessel contract it has been awarded'.

BHIC's associate Boustead Naval Shipyard Sdn Bhd was last week awarded a contract with a ceiling of RM9 billion by the Defence Ministry to design, build and deliver six second-generation patrol vessels or Littoral combat ships.

OSK Research maintains Neutral on Lion Industries, FV RM1.50

Larger Smaller Reset KUALA LUMPUR (Dec 22): OSK Investment Research has maintained its Neutral call on Lion Industries Corp Bhd with a fair value of RM1.50 and said it welcomed that the group was ''actively seeking mining assets, although the details were scarce.

The research house however added that the steel market was still fraught with challenges considering the slow execution of domestic projects and the impending consolidation of China's steel industry, which may hurt global sentiment.

'Talks with potential investors on the sale of its steel units are still ongoing but we see an indefinite delay in the outcome.

'Thus, we keep our NEUTRAL call with a Fair Value of RM1.50 in the absence of immediate catalysts,' it said on Thursday.

GLOBAL MARKETS-Oracle drags tech shares; euro off after ECB boost

Larger Smaller Reset NEW YORK (Dec 21): The euro fell Wednesday as doubts set in over whether fresh lending by the European Central Bank would be used to buy struggling euro-zone debt, while Oracle's weak earnings weighed on TECHNOLOGY [] stocks and kept Wall Street mostly flat.

Global shares edged higher, adding to the previous day's strong gains, though volumes were thin as the year-end holidays approach.

Italian and Spanish government bond yields rose, snapping an eight-session down trend, while prices of German Bunds edged up.

Initial optimism about ECB lending to euro-zone banks gave way to concerns that the flood of liquidity only highlighted the scale of the pressure European banks are under.

The ECB lent 489 billion euros ($641.08 billion) to banks to ease the inter-bank credit crunch and tempt banks to buy higher-yielding Italian and Spanish debt, but optimism that the funding would ease Europe's two-year-old debt crisis quickly faded.

An Italian industry group said banks would not increase their exposure to sovereign debt even after the ECB offering because European Bank Authority rules discourage it.

"The key question remains what the banks will do with the newly acquired funds," said Marc Chandler, global head of currency strategy at Brown Brothers Harriman.

"We suspect that to the extent banks buy sovereign bonds, they will purchase their own sovereign's bonds rather than their neighbors'."

Shares of Oracle Corp, the world's No. 3 software maker, fell 11.7 percent after it missed Wall Street's forecasts for the first time in a decade.

Stock in its German peer SAP fell 6.1 percent, making it the worst-performing blue chip in Europe. Microsoft Corp fell 1 percent. The S&P technology sector lost 2 percent.

"It is certainly a concern, Oracle is a bellwether in the sector, but some of the other stocks in the group may be overreacting," said Brian Lazorishak, portfolio manager at Chase Investment Counsel in Charlottesville, Virginia.

The Dow Jones industrial average edged up 4.16 points, or 0.03 percent, to 12,107.74 and the S&P 500 Index gained 2.42 points, or 0.19 percent, to 1,243.72.

But the technology-heavy Nasdaq Composite dropped 25.76 points, or 0.99 percent, to 2,577.97.

Global stocks as measured by MSCI rose 0.23 percent a day after posting their largest gains since Nov. 30, while the European benchmark FTSEurofirst 300 closed 0.47 percent lower. U.S. dollar-denominated Nikkei futures fell less than 0.1 percent.

Global equity markets and the euro have traded off European headlines for months as Europe's escalating sovereign debt crisis threatens to take down the region's economy.

EURO GIVES UP RALLY

The euro fell against the U.S. dollar after the larger-than-expected bank demand for ECB loans failed to convince investors the move would ease Europe's deep-seated debt problems.

The euro initially rose nearly 1 percent on the day to a one-week high near $1.32 before giving up gains to trade around $1.3040, down 0.3 percent.

"While the ECB had hoped that banks borrowing at low rates would buy sovereign debt, it appears they are using the perceived bullish opportunity to jettison risk," said Christopher Vecchio, currency analyst at DailyFX.com.

The benchmark 10-year U.S. Treasury note was down 14/32 to yield 1.9737 percent, up from 1.927 percent on Tuesday.

Italian bond yields were 18 basis points higher at 6.817 percent, with Spanish yields 19 basis points higher at 5.313 percent. Both had fallen almost 100 basis points in the last week and a half.

Italian data showed the economy contracted by 0.2 percent in the third quarter, compared with the previous three months, while British consumer morale hit an almost three-year low in December.

U.S. crude futures settled at $98.67 per barrel, up $1.43, or 1.5 percent, after government data showed inventories fell to their lowest level since the late 2008. - Reuters

US STOCKS-Oracle sinks Nasdaq; Dow, S&P hold firm

Larger Smaller Reset NEW YORK (Dec 21): TECHNOLOGY [] shares slumped on Wednesday and pushed the Nasdaq down 1 percent after Oracle reported results that cast doubts on the sector's health, even as broader markets closed mostly flat in a thinly traded day.

Outside the Nasdaq, the market recovered from early losses as some recent fears over Europe faded. Traders tried to build momentum for a year-end rally and possibly erase the S&P 500's 1.1 percent losses so far in 2011.

After Tuesday's close, Oracle Corp reported earnings and sales that missed expectations for the first time in a decade. The software giant joins a growing list of companies, including some of technology's biggest and oldest names, whose results and outlooks have raised alarm bells about business conditions.

The stock plunged 12 percent to $25.77 on heavy volume and was the top decliner in the Nasdaq 100. Shares of other tech companies also fell. IBM was the biggest drag on the Dow, down 3.1 percent at $181.47. Cisco Systems Inc lost 2.6 percent to $17.92 at the close. The Philadelphia semiconductor index fell 1.2 percent.

"Oracle is a tech story, but there's concern it could be a broader economic story," said Brad Sorensen, director of market and sector analysis at Charles Schwab in Denver. "We're not ready to go that far yet, but it does show that businesses are unsure about the economic situation, especially with all the uncertainty about Europe."

''

Despite that, Sorensen said the light volume ahead of the Christmas and New Year's holidays would exacerbate market volatility, making the moves "a little more dramatic than normal."

The Dow Jones industrial average rose 4.16 points, or 0.03 percent, to 12,107.74. The Standard & Poor's 500 Index gained 2.42 points, or 0.19 percent, to 1,243.72. The Nasdaq Composite Index slid 25.76 points, or 0.99 percent, to 2,577.97.

For the year, the Dow is up 4.6 percent while the Nasdaq is down 2.8 percent.

In Europe, investors worried that cut-rate loans from the European Central Bank's recent funding operation would not be used to buy Italian and Spanish debt, which would help lower elevated yields and reduce the pressure on refinancing for the debt-stricken countries.

European banks took nearly 490 billion euros in three-year cut-price loans from the European Central Bank on Wednesday. While a widening of the yield spread between German and Italian debt initially suggested that money was not flowing where it is most needed, those concerns faded toward the end of the day.

"As investors digest what the ECB is doing, there's some recognition of the fact that European banks are better off having more money on their balance sheets even if it isn't being lent out," said Mike Shea, a managing partner and trader at Direct Access Partners LLC in New York.

An Italian banking group said banks would not increase their exposure to sovereign debt even after the ECB offering because European Bank Authority rules discourage it.

Ryan Larson, head of equity trading at RBC Global Asset Management in Chicago, said unconfirmed talk was circulating in the market that banks would use ECB loans to buy German bonds and not to support the debt of Spain and Italy.

"That kind of spooked the market," he said. "While it is a positive development in terms of the lending facility, there are still a lot of problems out there."

He said he was not able to confirm any of the market speculation.

Tuesday's rally had lifted the S&P 500 above its 50-day moving average. Many investors and traders are looking for a seasonal "Santa rally" through the end of the year and are keen to jump on any signs of momentum.

U.S.-listed shares of Research in Motion Ltd jumped 10.1 percent to $13.78 and ranked as the Nasdaq 100's top gainer after Reuters reported that Amazon ''and other potential bidders had been looking at making an offer for the BlackBerry maker, although interest had cooled somewhat.

The latest economic data showed sales of previously owned U.S. homes surged in November, but revisions to data for the last four years gave proof that the housing market's recession was deeper than previously thought.

Contract electronics manufacturer Jabil Circuit Inc posted first-quarter revenue below estimates and said it sees lower revenue in the second quarter. Shares fell 2.8 percent to $19.40.

Volume was light, with about 6.52 billion shares traded on the New York Stock Exchange, the American Stock Exchange and Nasdaq, below last year's daily average of 8.47 billion.

About 59 percent of companies traded on the New York Stock Exchange closed in positive territory while about 48 percent of the Nasdaq ended lower. ' Reuters

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Yahoo to weigh deals for Asian assets -sources

Larger Smaller Reset (Dec 21): Yahoo Inc is discussing a plan to slash its stakes in China's Alibaba Group and its Japanese affiliate as part of a complicated share transaction valued at roughly $17 billion, sources familiar with the matter said on Wednesday.

The deal is expected to be considered by Yahoo's board on Thursday, one of the sources said, adding that the board was not interested in entertaining offers for the entire company at this point.

In the deal under contemplation, Yahoo would effectively transfer most of its 40 percent slice of Alibaba back to the Chinese company and all of its stake in Yahoo Japan to Softbank Corp in return for cash and assets, one of the sources said.

The exact value of the deal would depend on how the assets are valued, one source said.

Shares of Yahoo, which had languished in the red along with much of the TECHNOLOGY [] sector on Wednesday, reversed course and ended the session almost 6 percent higher at $15.99.

Yahoo was not immediately available for comment. The possible deals were first reported in The New York Times. - Reuters

#Stocks to watch* Muhibbah, Perisai Petroleum, MRCB, HELP, technology-related stocks

Larger Smaller Reset KUALA LUMPUR (Dec 22): Trading on Bursa Malaysia on Friday ahead of the extended weekend is likely to be cautious, given the muted reaction of regional markets on Thursday following the take-up of nearly 490 billion euros from the European Central Bank at its first-ever offer of three-year loans on Wednesday.

Although the FBM KLCI closed higher on Thursday, the broader market remained weaker with losers edging gainers, a trend that will likely be repeated on Friday.

Among the stocks that could be in focus today are Muhibbah Engineering Bhd, PERISAI PETROLEUM TEKNOLOGI [] Bhd, MALAYSIAN RESOURCES CORP []oration Bhd, HELP INTERNATIONAL CORPORATION [] Bhd and TECHNOLOGY []-related stocks.

Muhibbah Engineering Bhd and its Australian joint venture partner Monadelphous Group Limited have landed a RM1.05 billion (AUD330 million) job to build an approach jetty and ship berth in Queensland.

Muhibbah said on Thursday that Monadelphous Muhibbah Marine JV (MMM) had secured the contract to build the jetty and ship berth associated with the Wiggins Island Coal Export Terminal Pty Ltd's (WICET) Project at Gladstone in Queensland.

MMM is a 50:50 joint venture between Muhibbah CONSTRUCTION [] Pty Ltd, a wholly owned subsidiary of Muhibbah in Australia and Monadelphous Engineering Pty Ltd, a wholly owned subsidiary of Monadelphous Group Ltd.

Perisai expects contribution from its mobile offshore production unit (MOPU), which it acquired through Garuda Energy (L) Ltd to be realised by FY12.

Its managing director Zainol Izzet Ishak said on Thursday that the acquisition would be finalised by the end of this year and will start contributing to the group's bottom line from the first day of its operation as the group's asset.

MRCB's unit MRCB Engineering Sdn Bhd was awarded a RM13.93 million contract to upgrade the Sabah Employees Provident Fund (EPF) building in Kota Kinabalu.

HELP's net profit for the fourth quarter ended Oct 31, 2011 fell 44.6% to RM3.59 million from RM6.47 million a year earlier, due to new student recruitment affected by delays in obtaining licences and approvals for operations.

Revenue for the quarter rose to RM28.44 million from RM27.33 million in 2010.

HELP proposed a final gross dividend of two sen per share of 50 sen each, amounting to RM2.13 million for the financial year ending Oct 31, 2011.

For the financial year ended Oct 31, HELP's net profit fell 31.6% to RM13.06 million from RM19.1 million in 2010, on the back of increased revenue of RM108.06 million from RM105.2 million a year earlier.

Meanwhile, OSK Investment Research on Thursday upgraded the technology sector to Neutral and said that better HDD pricing could help mitigate losses from the Thailand flood.

It said that against the backdrop of the massive works in progress to restore operations following Thailand's crippling floods, the worst could well be over.

The research said it had become less bearish on the hard-hit HDD components sector given the ongoing accelerated restoration as well as potential price hike over the immediate term, which could mitigate the earnings pressure from forgone capacity in the short term.

The research house upgraded Eng Teknologi and Notion Vtec from Sell to Neutral, and upped its recommendation on JCY International to Trading Buy from Sell.

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DRB-Hicom plans high-end boutique luxury mixed developments in Langkawi

Larger Smaller Reset KUALA LUMPUR (Dec 21): DRB-HICOM BHD []'s unit has entered into a swap agreement to convert the status of its land in Langkawi from Malay reserve (MR) to non-Malay reserve with a view to undertake high-end boutique luxury mixed developments there.

It said on Wednesday that its unit Rebak Island Marina Bhd (Rebak) had entered into the agreement with Northern Gateway Free Zone Sdn Bhd (NGFZ) to change the designation of 333 acres of land owned by Rebak from MR to non-MR status of 350 acres freehold land in Bandar Kota Perdana, Kubang Pasu, Kedah for RM76 million cash.

DRB-Hicom said Rebak owned 379.78 acres leasehold land on Pulau Rebak Besar, Langkawi as well as 4.70 acres of freehold land.

The conglomerate said the swapping of the land status was an allowed exercise to convert the status of MR land to non-MR land subject to the relevant conditions imposed by the Kedah state government.

On the rationale for the land status conversion, DRB-Hicom said that there was a recent surge in the exodus of high net worth individuals to the Asean region which had contributed to the success of boutique luxury concept projects undertaken in the region, including Phuket, Koh Samui and Bali.

It said Malaysia was the only country in the region that does not have the boutique luxury concept developments, adding that concept projects in Langkawi would amplify the 5-year Langkawi Tourism Blueprint announced by the government to attract high net worth individuals to reside in Langkawi.

'Acknowledging the said potential of high-end boutique luxury mixed developments, DRB-Hicom via Rebak plans to develop villas and waterfront bungalow lots, commercial retail outlets and other required amenities on the undeveloped portion of Rebak Land,' it said.

DRB-Hicom said its future earnings were expected to improve taking into consideration the enhanced future development potential of Rebak Land, after the conversion, which would benefit the group in the long-term.

Fajarbaru to build RM61.99m sewage treatment plant

Larger Smaller Reset KUALA LUMPUR (Dec 21): Fajarbaru Builder Group Bhd has secured a RM61.99 million contract to build a sewage treatment plant on Klang, Selangor.

It said on Wednesday that its wholly-owned unit Fajarbaru Builder Sdn Bhd had received a letter of acceptance dated Dec 20, 2011 from the Ministry of Energy, Green TECHNOLOGY [] and Water for Package of the sewage treatment plant.

Fajarbaru said the CONSTRUCTION [] period was 30 months commencing from the date of possession on Jan 11, 2012.

The company said the Contract was expected to contribute positively to its earnings for the financial years ending June 30, 2012 to June 30, 2015.

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Aeon buys 7.37ha lands in Kulai for RM22.22m for shopping centre

Larger Smaller Reset KUALA LUMPUR (Dec 21): Aeon Co (M) Bhd is acquiring two pieces of freehold land in Kulai for RM22.22 million as part of its strategy to expand its retail business.

It said on Wednesday that it had entered into a sale and purchase agreement with Genting Property Sdn Bhd to acquire the freehold lands measuring a total 7.37ha for the purpose of operating a business of shopping centre with car parks and departmental stores cum supermarket.

'The acquisition is in line with Aeon's corporate strategy of accelerating the expansion of its retail business through opening of new shopping centres and outlets.

'The acquisition is expected to contribute positively to Aeon's business in future,' it said.

Banks hoover up 489 bln euros in 3-yr ECB loans

Larger Smaller Reset FRANKFURT (Dec 21): Banks took a huge 489 billion euros at the European Central Bank's first ever offering of three-year funding on Wednesday, raising hope a credit crunch can be avoided and that the money may be used to buy Italian and Spanish bonds.

A total of 523 banks borrowed money at the tender with demand way above the 310 billion euros expected by traders polled by Reuters in the run-up to the operation.

The banks' lunge for funding pushed the euro to a one-week high versus the dollar and sparked a rally in stocks.

The three-year loans are the ECB's latest bold attempt to ease the euro zone's troubles. It is the most the bank has ever pumped into the financial system, topping the near 450 billion it injected with its first one-year loans back in 2009.

Its hope is that the ultra-cheap and ultra-long funding will have a range of beneficial effects, including bolstering trust in banks, easing the threat of a credit crunch and tempting banks to buy Italian and Spanish bonds, thereby calming markets and easing the currency bloc's sovereign debt crisis.

"The take-up was massive ... much higher than the expected 300 billion euros. Liquidity on the banking system has now increased considerably." said Annalisa Piazza at Newedge Strategy, adding that the take-up probably came largely from banks in the euro zone's debt-laden states.

"In a nutshell, the three-year auction can been considered as successful in terms of adding liquidity to the banking sector," she said.

HELP FOR ITALY AND SPAIN?

While an interbank lending crunch may have been avoided, it is much less certain banks will use the money to buy Italian and Spanish government debt, as French President Nicolas Sarkozy has urged, given the competing pressures on them to cut risk, rebuild capital and lend to business.

"While this might help to address recent signs of renewed tensions in credit markets and support bank lending, we remain sceptical of the idea that the operation will ease the sovereign debt crisis too as banks use the funds to purchase large volumes of peripheral government bonds," said Jonathan Loynes, Chief European Economist at Capital Economics.

Given those doubts, most market experts say only more aggressive and direct buying of government bonds by the ECB will help ameliorate the crisis, something it is reluctant to do.

Banks switched 45.7 billion euros out of one-year loans taken from the ECB back in October. The impact on overall liquidity levels was also softened after banks scaled down their three-month borrowing from the ECB to 30 billion euros from 140 billion and almost halved their intake of one-week loans this week.

Rather than a simple flat rate, the 3-year funds were offered at an interest rate which will be the average of ECB's main interest rate over the next three years. That benchmark rate is, after a rate cut earlier this month, at a record low of 1.0 percent.

For some banks the money could be more than 3 percentage points cheaper than they can get on the open market. As part of the deal, as well as being able to convert their one-year money to the new three-year loans, they will also be able to pay it back after just a year if they so wish.

One of the key factors boosting demand is that banks are now more reliant than ever on central bank funds. The ECB on Monday said, in its semi-annual Financial Stability Review, that this dependency could be difficult to cure.

French banks have almost quadrupled their intake of ECB money since June to 150 billion euros, while banks in Italy and Spain are each taking more than 100 billion euros.

ECB President Mario Draghi has been pressing banks to take the money since announcing the plans earlier this month. He warned of a chance of a credit crunch on Monday and said that euro zone bond market pressure could rise to unprecedented levels early next year. - Reuters