YTL Comms, Intel sign collaboration pact

KUALA LUMPUR: YTL Communications Sdn Bhd (YTL Comms) and Intel Malaysia have signed a collaboration agreement to deliver superior fourth generation (4G) experience on its network.'' ''

In a statement here on Monday, Aug 2, YTL Comms said working with Intel to offer WiMAX-ready devices was an integral part of the strategy to unveil the company's 4G network, which was expected to be launched in the fourth quarter of this year.

Its chief executive officer Wing Lee said the collaboration would include interoperability test on its 4G network by Intel to enable compatibility with its WiMAX/WiFi wireless chipset.

"Intel will also provide WiMAX-embedded laptops which will be certified and ready for use on our 4G network," he said.

He said the company would continue to expand its ecosystem of 4G devices and services to make it easier for the customers to enjoy the benefits of its network and play a role in propelling the country into an innovation-led economy.

Meanwhile, Intel Malaysia's country manager Ryaz Perez said the collaboration would boost WiMAX subscription and help Malaysia's National Broadband Plan achieve 50% penetration rate by the end-2010. ' Bernama

SIG Gases public offer oversubscribed 24.1 times

KUALA LUMPUR: Industrial gases manufacturer SIG Gases Bhd's public offer of 7.5 million new shares of 58 sen each under its listing exercise was oversubscribed by 24.1 times.

It said on Monday, Aug 2 that it received 8,508 applications for 187.9 million shares with a total value of RM109.0 million, for the 7.5 million shares.

SIG's listing exercise involved a public issue of 49.2 million new ordinary shares, and an offer-to-sale of 3.0 million shares at 58 sen each. This exercise would raise RM28.54 million.

Of the 49.2 million shares offered, 7.5 million were offered to the Malaysian public, 17.7 million shares for private placement to selected investors, 9.0 million shares for eligible directors, employees and business associates of the Group, and 15.0 million shares for Bumiputera investors.

"Of the total proceeds, RM14.74 million from the proceeds would be allocated for purchase of land and building new facilities, RM6.4 million would be used for purchase of plant, machinery and equipment, RM4.2 million for the repayment of term loan and the balance RM3.2 million to defray listing expenses," it said.

AmInvestment Bank Berhad is the adviser, sole underwriter and sole placement agent for SIG's IPO.

AmInvestment Bank issues CWs over Unisem, Gamuda, TM, Mudajaya

KUALA LUMPUR: AmInvestment Bank Bhd is issuing four new European-style cash-settled call warrants on Unisem, Gamuda, Telekom Malaysia and Mudajaya which will be listed on Wednesday, Aug 4.

"The launch of the 100 million each, eight-month CWs are in line with the objective of AmInvesment's warrant programme to provide affordable and leveraged investment alternatives in light of renewed interest in the Malaysian equities," said AmInvestment Bank.

It said the CW programme was to "provide something for everyone,'' to suit different investor profiles - in this tranche we have a blue-chip (Telekom Malaysia), a CONSTRUCTION [] play (Gamuda), a small cap/semi-conductor industry play (Unisem) and an event-driven trading play (Mudajaya)".

The offer price for the CWs over Unisem is 15 sen, Gamuda (15 sen), TM (15 sen) and Mudajaya (17.5 sen).

Koean won, ringgit lead Asian currencies higher

SINGAPORE: The South Korean won and Malaysian ringgit led Asian currencies higher on Monday as
investors bid up riskier assets, prompting several central banks in the region to intervene to temper local currency gains.

Asian stocks rose on strong corporate earnings and shrugged off news that Chinese manufacturing shrank in July amid investor hopes that the world's fastest growing major economy will continue to expand strongly.

Chinese manufacturing shrank in July for the first time since the global downturn in March 2009 as government moves to rein in credit growth and fight property speculation, but analysts played down the risk of a serious slowdown.

The U.S. dollar hit a three-month low against a basket of currencies, hurt by persistent worries that the U.S. economic recovery is losing steam.

The South Korean won gained 1 percent to a six-week high of 1,171.3 per dollar, but failed to break chart resistance at 1,170 as authorities were spotted intervening to curb won strength.

Exporters and offshore players bought the won as dollar was broadly weak.

"Market players are expecting the won's further rise but the authorities hold the key," says a foreign bank dealer.

Seoul shares <.KS11> rise 1.21 percent as foreign investors buy a net 68.4 billion won worth of stocks on the main exchange.

RINGGIT

The Malaysian ringgit gained as much as 0.8 percent to 3.1570 per dollar, its highest since May 2008, on broad dollar weakness and as investors bought risky assets after China's official Purchasing Managers' Index for July was not as weak as feared.

"The ringgit gained in response to lower dollar/Asian in general," said a trader in Kuala Lumpur.
Investors expected further ringgit gains as the dollar faltered against the euro and other major currencies.

"I think we may be at the begining of a move lower in dollar/Asia," said a second trader.

Meanwhile, one-month dollar/ringgit NDFs fell to 3.1535 from 3.1895 late on Friday.

RUPIAH

The Indonesian rupiah pulled back to 8,952 per dollar from an intraday high of 8,940 after data showed Indonesia's July inflation accelerated to its highest level since April 2009, fuelling market expectations the central bank may raise interest rates later this year.

"Bad inflation could push bond and equity investors to get out of Indonesia," said a Jakarta-based trader.

Earlier, traders spotted dollar-buying intervention by state banks to cap the rupiah as it tries to break 8,940.

Investors have flocked to Indonesia's stock and bond markets to cash in on the country's solid economic growth and expectations of further currency gains.

PESO

The Philippine peso gained half a percent to 45.335 per dollar, a six-week high, as Asian currencies rode on sustained positive sentiment for emerging market assets.

"The peso's strength reflects a weak dollar and good prospects on the local economic front," a Manila-based trader said.

Philippine Finance Secretary Cesar Purisima said on Monday the government "will be opportunistic" on its planned global peso bond issue, and hoped to issue the bonds this year.

Dollar/peso NDFs fell across the curve, with the most liquid one-month NDFs falling to a near-six-week low of 45.44 from 45.55 late on Friday.

BAHT
The Thai baht gained half of a percent to 32.08 per dollar, with some traders detecting sporadic moves by the Bank of Thailand (BOT) to slow baht gains.

"Asian currencies are benefiting from market relief that China's slower output growth reflects government tightening measures rather than a domestic demand fall. Sentiment on emerging Asia is quite upbeat," a Bangkok-based trader said.

Another dealer said BOT was suspected of bidding for dollars at 32.20 in the morning.

"It's an attempt to slow baht gains. If it slips below 32.20, it could slide further to 32.15 this week," said the dealer. - Reuters

China's key stock index up 1.3%

SHANGHAI: China's key stock index ended up 1.3 percent on Monday, Aug 2 the highest level in two-and-a-half months, as funds, private equity and insurance companies increased their holdings in anticipation of a further rally, analysts said.

With so many investors rushing into buying stocks, the market was flushed with money, which offset weaker manufacturing output in China in July, they said.

The index was also boosted by wine companies, as markets expected these wine brewers to publish optimistic earnings results in the second quarter.

The Shanghai Composite Index ended at 2,672.5 points, up from Friday's 0.6-percent fall.

"The market expects second half earnings results will be good. This will guide the index higher for a while," said Zhang Qi, an analyst at Haitong Securities.

Turnover in Shanghai A shares increased to 110 billion yuan ($16.24 billion) by midday from 94 billion yuan on Friday.

In Tokyo, Japan's Nikkei average rose 0.4 percent on Monday as investors snapped up shares of firms with robust earnings, while a pull-back in the yen after last week's rise also helped the market to shrug off dull U.S. economic data.

Honda Motor Co climbed 4 percent after posting its best quarterly operating profit in 2-'' years after the market's close on Friday, while raising its forecasts despite a strong yen.

Although the yen's slight retracement sparked short-covering in Japanese stocks early on Monday, currency moves remained a concern and kept market gains in check after the yen surged to an eight-month high of 86 to the dollar on Friday.

"U.S. GDP fell a bit but it was basically within expectations, and while there's still concern about the pace of the U.S. economic recovery, the moves today basically are just a reflection of strong Japanese earnings," said Noritsugu Hirakawa, a strategist at Okasan Securities.

"But the current dollar/yen level isn't one that invites really strong buying."

In the latest in a string of weak U.S. data, U.S. gross domestic product expanded at a 2.4 percent annual rate in the second quarter, less than the 2.5 percent pace analysts polled by Reuters had expected.

But a jump in the Chicago Purchasing Managers Index to 62.3 in July took the edge off the GDP figures, market players said. Analysts had expected a reading of 56.5.

The benchmark Nikkei rose 33.01 points to 9,570.31, while the broader Topix inched up 0.1 percent to 850.69.

Market players warned that the Nikkei faces stiff resistance around 9,800 points, a mid-July peak it has several times tried and failed to break.

Support for the Nikkei was solid, however, at its 25-day moving average, now near 9,470 points, market players said, but they added that trade was likely to remain rangebound ahead of a string of U.S. economic indicators due out later this week, including jobs data on Friday.

"If the jobs figures aren't bad shares may well be able to stage a bit of a rebound, but at this stage investors appear to be neither notably long nor short on the Nikkei," said Nagayuki Yamagishi, a strategist at Mitsubishi UFJ Morgan Stanley Securities.

The rush of Japanese quarterly earnings reports is past its peak but several key companies are set to announce later this week, including Toyota Motor Corp on Wednesday. - Reuters

Bursa Securities rejects MMM's application for more time

KUALA LUMPUR: Bursa Malaysia Securities has rejects MALAYSIAN MERCHANT MARINE BHD []'s application for more time to submit the audited accounts for the year ended March 31, 2010.

MMM said on Monday, Aug 2 the application was submitted less than 15 days prior to the due date for the submission of the annual audited accounts for the year ended March 31, 2010.

"The company has again provided the reasons for the short notice and has appealed the Bursa's decision. The outcome of this appeal will be announced when received," it said.

Asian markets trend higher

KUALA LUMPUR: Asian markets traded higher on Monday, Aug 2 on expectations of robust corporate earnings despite China's official purchasing managers' index (PMI) falling to a 17-month low in July of 51.2 from 52.1 in June.

The PMI is designed to provide a timely snapshot of business conditions and a figure above 50 indicates expansion.

On Monday, an index based on a nationwide survey of business executives conducted for HSBC showed Chinese manufacturing shrank in July for the first time since the global downturn in March 2009 on government steps to slow bank lending and fight property speculation.

The index dropped to 49.4 from 50.4 in June.

Although the index pointed to a month-on-month contraction in manufacturing, it was still consistent with annual growth in Chinese industrial production of 11%-13%, HSBC was quoted by Reuters as saying.

Asian stocks rose on Monday as investors snapped up shares of firms with robust corporate earnings, helping the market shrug off the lacklustre US and Chinese economic data, said Reuters.

At the regional markets, Hong Kong's Hang Seng Index rose 1.29% to 21,300.14, the Shanghai Composite Index up 1.16% to 2,668.03, Taiwan's Taiex added 1.77% to 7,898.37, the South Korean Kospi added 1.22% to 1,780.83, Singapore's Straits Times Index rose 0.84% to 3,012.72 while Japan's Nikkei 225 rose 0.64% to 9,598.07.

At Bursa Malaysia, the FBM KLCI rose 1.33 points to 1,362.25 at the mid-day break, lifted by gains including at Tanjong, CIMB, Public Bank and BAT.

Gainers led losers by 386 to 231, while 261 counters traded unchanged. Volume was 498.8 million shares valued at RM537.15 million.

Commodities also rose on the upbeat investor sentiment, with crude palm oil for the third month delivery jumping RM38 per tonne to RM2,550, while gold rose US$2.60 per ounce to US$1,183.60 (RM3,740.18).

Oil rose towards 12-week highs above US$79 on Monday, driven by investor appetite for commodities and energy risk, with macroeconomic indicators in top consumers the United States and China showing slower but sustained growth, said Reuters.

At 1pm, crude oil was up 16 US cents per barrel to US$79.11.

On Bursa Malaysia, Tanjong jumped RM3.56 to RM21.14 with 1.71 million shares done after it resumed trade following a conditional takeover offer from Tanjong Capital Sdn Bhd at RM21.80.

Tanjong Capital is a special purpose vehicle established by Usaha Tegas Sdn Bhd and its concert parties to acquire all the ordinary shares in Tanjong with a cash offer price of RM21.80 per share. This valuesTanjong at RM8.8 billion, with minority shares valued at up to RM4.7 billion.

Currently, Usaha Tegas and parties acting in concert own 46.9% of Tanjong and do not intend to maintain Tanjong's listing status.

CIMB rose five sen to RM7.45, Public Bank four sen to RM12.20, BAT 48 sen to RM45.38, PPB eight sen to RM17.42 while IOI Corp added one sen to RM5.13. Other gainers included Nestle, Batu Kawan, Chin Teck and Guan Chong.

Among the decliners, Sime Darby fell 10 sen to RM7.70, Petronas Dagangan eight sen to RM10.20, Genting seven sen to RM7.92, Hong Leong Bank 11 sen to RM8.90 while Axiata fell three sen to RM4.23.

Notion Vtec fell 19 sen to RM2.43, Tasek eight sen to RM6.53, while Naim and QSR lost seven sen each to RM3.30 and RM4.25.

Talam was the most actively traded counter with 41.2 million shares done. The stock added one sen to 12.5 sen.

Other actives included KNM, Sinotop, E&O, Malton, Equine, Ivory PROPERTIES [] and MPHB. Pacific & Orient was actively traded on news reports that Prudential could be keen to acquire a stake in the insurance company.

The counter rose 12.5 sen to RM1.05 with 12.82 million shares traded at the mid-day break.

A wire report said Prudential could be targeting stake in the local insurer.

P&O posted net profit of RM3.247 million in its second quarter ended March 31, 2010 versus RM2.51 million a year ago. Its revenue was RM134.83 million versus RM111.63 million a year ago.

AirAsia X adds Seoul to destinations

KUALA LUMPUR: AirAsia X announced its latest international route from Kuala Lumpur to Seoul, Korea, the eleventh destination for the airline after Australia, India, Taiwan, China and Europe.

The long-haul, low-fare AirAsia X will commence services and fly direct to Incheon International Airport, Seoul on Nov 1, 2010 with direct daily flights between Seoul and Kuala Lumpur.

To mark the opening for sale of the new route, AirAsia X is offering a promotional all-in fare from as low as RM99 (Base fare: RM74 + Airport tax: RM25) from Kuala Lumpur to Seoul for the booking period from August 4 to 8, 2010 for the travel period from Nov 1,'' 2010 to Aug 11, 2011.

The airline said promotional seats were limited and available on first-come, first-served basis and made exclusively available online via www.airasia.com and mobile.airasia.com.

In a statement on Monday, Aug 2, AirAsia X chief executive officer Azran Osman-Rani said the airline's commencement of daily services to Seoul could not have come at the most opportune timing in November to coincide with major school holidays and year end festive season where travel demand is peak and fares are super high.

"This is what AirAsia X is about ' providing affordable international travel for everyone. Our daily services between Seoul and Kuala Lumpur during the peak period at Christmas will open up the skies at a time when many people have holidays and are seeking cost effective and exciting vacations in new locations.

"We estimate that more than 60% of AirAsia X passengers to and from Seoul will be first time visitors, which will contribute significantly to tourism growth, allowing AirAsia X the opportunity to open up new market segments from Malaysia and Korea with its low fares," said Azran.

Dijaya unit's JV to buy land in Danga Bay for RM308.46m, expected to generate GDV of RM3.8b

KUALA LUMPUR: DIJAYA CORPORATION BHD [] unit Nagasari Cerdas Sdn Bhd has entered into a shareholders' agreement with Global Corporate Development Sdn Bhd to manage a newly incorporated joint venture (JV) company, namely Goldhill Quest Sdn Bhd (GQSB).

In a filing to Bursa Malaysia Securities, Dijaya said the JV was to develop PROPERTIES [] in Johor that were expected to generate a gross development value (GDV) of about RM3.8 billion.

Dijaya said GQSB had entered into two separate conditional sale and purchase agreements with Danga Bay Sdn Bhd to acquire two parcels of freehold land. Under the first agreement, it is acquiring land measuring 126,550 square metres equivalent to 1,362,171 square feet for a cash consideration of RM258.81 million or RM190 per square foot.

The second agreement is to buy a land measuring 24,280 square metres equivalent to 261,347 square feet for a cash consideration of RM49.65 million cash, or RM190 per square foot.

The acquisitions will be funded internally and/or bank borrowings, said the company. Dijaya said the proposed acquisitions were in line with its overall objective of increasing its land bank at strategic locations, especially in the Southern Region of Malaysia, for its future property development activities in the region.

The proposals are also the stepping stone for the Group to kick start its first property development project in the Southern Region and to further establish itself as one of the most prominent and premium property developers in the country, the company said.

"The Properties are expected to generate a gross development value of approximately RM3.8 billion.

"This is also consistent with the Group's business strategy of improving the group's profitability which will translates into increase in shareholder's value in the long term," it said.

Dijaya said the properties form part of the Danga Bay Integrated Waterfront City in the Iskandar Malaysia Region which it said was slated to be a prestigious commercial, residential and leisure areas in the Southern Region of Malaysia.

FBM KLCI above 1,360 level at mid-morning

KUALA LUMPUR: The FBM KLCI stayed above the 1,360-point level at mid-morning on Monday, Aug 2, lifted by gains at key blue chips including Tanjong, CIMB, Public Bank, RHB Capital and IOI Corp.

At 10am, the index was up 4.41 points to 1,365.33. Gainers led losers by 300 to 127, while 171 counters traded unchanged. Volume was 201.24 million shares valued at RM211.15 million.

At the regional markets, Japan's Nikkei 225 was up 1.24% to 9,655.79, the South Korean Kospi Index up 1.26% to 1,781.49, Taiwan's Taiex Index up 1.48% to 7,875.10, Singapore's Straits Times Index 0.91% to 3,014.96 and the Shanghai Composite Index up 0.37% to 2,647.24.

Meanwhile, Hong Kong's Hang Seng Index opened 1.1% higher at 21,268.71.

RHB Research Institute Sdn Bhd said the FBM KLCI's current run-up appeared more resilient than expected in the wake of broad-based selldown in the overseas markets late last week.

It said given the strong rotational plays on blue chips and lower liners, the research house continues to stay bullish on the market direction for short-, medium- and long-term period.

The research also said the constant profit-taking pressure was well absorbed in recent sessions, as what it had expected earlier, should the index sustain at above the 1,350 resistance-turn-support level.

'This has strongly portrayed the strength on the current upswing, and suggested more upside potential on the back of growing buying support.

'And as long as the daily turnover remains firm at between 800m and 1.0bn shares mark, and the market goes without any external negative shock, we believe the FBM KLCI will rechallenge the next upside target at 1,390 soon, it said.

For a support, the solid resistance-turn-support level at 1,350 will cap any surprise downside potential, it said.

Among the major gainers on Bursa Malaysia, Tanjong jumped RM3.58 to RM21.16, CIMB rose seven sen to RM7.47, Public Bank and RHB Capital added four sen each to RM12.20 and RM6.53, while IOI Corp gained one sen to RM5.13.

Nestle was up 70 sen to RM39.50, KFCH 20 sen to RM11, APM Automotive 17 sen to RM4.80, Aeon 15 sen to RM5.25 while Shell rose 14 sen to RM10.80.

DFZ Capital was the top loser at mid-morning and fell 28 sen to RM3.34; Lay Hong and Hong Leong Bank fell 13 sen each to RM1.03 and RM8.88, Nylex down eight sen to 85 sen while Hai-O fell seven sen to RM3.57.

Sinotop was the most actively traded stock with 14.1 million shares done. The counter added 2.5 sen to 26.5 sen. Other actives included Jadi, E&O, Malton, P&O, Ivory PROPERTIES [] and KNM.