Axiata slips on spectrum renewal fee concerns

KUALA LUMPUR: Shares of Axiata Group Bhd fell in active trade in late afternoon on Monday, April 18 on worries about the issue of spectrum renewal fee for Robi Axiata Ltd in Bangladesh.

At 3.27pm, it was down four sen to RM3.27 with 11 million shares done.

The FBM KLCI rose 6.84 points to 1,528. Turnover was 740.73 million shares valued at RM966.88 million. There were 450 gainers, 233 losers and 254 stocks unchanged.

RHB Research said the issue of spectrum renewal fee for Robi and the rest of the mobile operators continued to overhang. The exact amounts for the fees have not yet been determined, though at present it could be about US$400 million.

Hence, it said that Axiata did not rule out a cash call from Robi. 'Nonetheless, management hopes to see a resolution in June, given that the licences expire in November,' it said.

On Axiata's operations, RHB Research said it expected Celcom's revenue growth to moderate towards mid-single digit in FY11.

'So far, we gather from management that competition has been rational despite YTL Communications' aggressive marketing,' it said.

RHB Research said it still liked Axiata, which offers growth prospects albeit moderating this year.

'We see highest regulatory risks in Bangladesh, which could shave off 16 sen from our fair value. Maintain our SOP fair value of RM5.75, but upgrade to Outperform due to recent share price weakness,' it said.

IOI Corp falls to lowest since Sept last year

KUALA LUMPUR: Shares of IOI Corp fell to a low of RM5.28 in late afternoon trade on Monday, April 18, which was the lowest since Sept 1, 2010.

At 3.50pm, it was down 13 sen to RM5.28 with 8.40 million shares done.

The FBM KLCI rose 5.62 points to 1,527.56. Turnover was 809.16 million shares valued at RM1.07 billion. There were 414 gainers, 266 losers and 272 stocks unchanged.

The most recent development involving IOI was its acquisition of a 49.9% interest in the South Beach project in Singapore through a restructuring exercise.

To recap, recently IOI bought a 33.3% stake in the project from Elad Group Singapore Pte Ltd for S$174 million (RM417 million).

Subsequently, IOI had injected the 33.3% stake into Scottsdale PROPERTIES [] Pte Ltd. Scottsdale Properties now owns 100% of South Beach. IOI then paid S$115 million (RM276 million) for a 49.9% stake in Scottsdale and will advance S$28 million as a shareholder's loan. The other 50.1% shareholder of South Beach is City Developments Ltd (CDL).

AmResearch said:'' 'In total, we estimate that IOI paid S$317 million (RM761 million) for a 49.9% stake in the South Beach project. Previous reports had speculated that IOI would pay between S$170 million and S$175 million for a 33.3% stake in South Beach."

The research report said IOI and CDL may be required to further contribute equity of S$500million each to redeem existing mezzanine notes of the project, working capital and part-finance the CONSTRUCTION [] of South Beach. IOI's investment in the South Beach project has so far cost S$817 million (RM2 billion).

'We believe that IOI would be raising funds to finance its investment in South Beach. The group's net gearing stood at 8% as at end-June 2010. Net debt amounted RM876million while gross cash and short-term investments totalled RM3.9 billion,' AmResearch said.

Public Bank up on strong 1Q earnings

KUALA LUMPUR: Shares of PUBLIC BANK BHD [] were traded higher in the afternoon session on Monday, April 18 after it announced that earnings rose 21% to RM828 million in the first quarter ended March 31, 2011 from RM685 million a year ago.

At 3.07pm, it was up six sen to RM13.10.

There were 1.06 million shares done at prices ranging from RM3.08 to RM13.14.

Public Bank's stronger earnings were underpinned by strong growth in net interest and finance income, higher non-interest income whilst loan impairment allowance charges remained stable.

The group's quarterly pre-tax profit was RM1.10 billion, up 19% from a year ago.

The Public Bank group achieved earnings per share of 23.6 sen for the first quarter of 2011 and an annualised net return on equity of 26.4%.

Celcom Axiata inks RM168m 'fiberisartion' leasing deal with Sacofa

KUALA LUMPUR: Celcom Axiata Bhd has inked a 'fiberisatrion' leasing agreement with Sacofa Sdn Bhd which will include the fiberisation of all Celcom's 400 Node-B and bas station in Sarawak.

The agreement, which was signed on Monday, April 18, would include the provision of trunk capacity in Sarawak plus the provision of cross ocean submarine capacity by Sacofa.

Celcom chief executive officer Datuk Seri Shazalli Ramly said under the agreement with Sacofa sould provide an optimum environment for its users especially those using smartphones and tablets.

Sacofa is'' a communication towers and fibre-optic infrastructure provider in Sarawak.

This 1- year project is expected to be completed in two years and will cost RM168 million, which is part of its operating costs.

#Flash* Public Bank 1Q earnings up 21pct to RM828m from RM685m yr ago

KUALA LUMPUR: PUBLIC BANK BHD [] posted a strong set of earnings in the first quarter ended March 31, 2011, with net profit at RM828 million, up a strong 21% from RM685 million a year ago.

It said on Monday, April 18 the group's quarterly pre-tax profit continued to surpass the RM1 billion mark, with pre-tax profit of RM1.10 billion, up 19% from a year ago.

'The Public Bank Group achieved earnings per share of 23.6 sen for the first quarter of 2011 and an annualised net return on equity of 26.4%,' it said.

Its domestic loan base grew healthily by 3.6% in the first quarter of 2011 as compared to the domestic banking industry's loan growth of 1.7% in the first two months of 2011.

Sarawak-based stocks in focus, FBM KLCI up at mid-day break

KUALA LUMPUR: ''The FBM KLCI rose at the mid-day break on Monday, April 18, with Sarawak-based stocks advancing on Bursa Malaysia after Barisan Nasional retained its two-thirds majority in the state legislative assembly.

At 12.30pm, the FBM KLCI was up 0.53% or 8.02 points to 1,529.96, lifted by banking stocks and key blue chips. Gainers led losers by 452 to 186, while 222 counters traded unchanged. Volume was 533.88 million shares valued at RM638.41 million.

The ringgit weakened 0.01% to 3.0232 versus the US dollar; crude palm oil rose RM1 per tonne to RM3,234, crude oil fell 60 cents per barrel to US$109.06 while gold shed five cents an ounce to US$1,486.65.

Meanwhile, Asian stocks rose on Monday as investors bet that China's latest round of policy tightening won't dent prospects of a global economic recovery while the euro weakened on a broad wave of profit-taking, according to Reuters.

China on Sunday raised banks' reserve requirements for the fourth time this year. The move was not a surprise as market players had predicted more tightening after last week's data showed acceleration in inflation, it said.

At the regional markets, Japan's Nikkei 225 edged up 0.06% to 9,597.50, Hong Kong's Hang Seng Index added 0.16% to 24,045.35, the Shanghai Composite Index gained 0.27% to 3,058.83, Singapore's Straits Times Index rose 0.20% to 3,159.76 and Taiwan's Taiex edged up 0.02% to 8,720.12.

Meanwhile, South Korea's Kospi slipped 0.18% to 2,136.63.

On Bursa Malaysia, major gainers included Genting that rose 28 sen to RM11.08, Tenaga seven sen to RM6.08, Petronas Chemicals six sen to RM7.26, YTL Corp 22 sen to RM7.94, Gamuda 10 sen to RM3.79 and F&N 62 sen to RM16.90.

CIMB added seven sen to RM8.30, Public Bank and RHB Capital six sen each to RM13.10 and RM8.63, Hong Leong Bank 20 sen to RM10.50 and AMMB five sen to RM6.40.

The results of the weekend elections also gave a boost to Sarawak-based stocks, with Ta Ann up 28 sen to RM6.39, Jaya Tiasa 21 sen to RM6.50, HSL 13 sen to RM1.76, CMSB 11 sen to RM2.37, Subur Tiasa 10 sen to RM3.23, Naim Holdings nine sen to RM3.01 and Encorp 4.5 sen to 86.5 sen.

Radio frequency identification (RFID) solutions provider Smartag Solutions Bhd, which made its debut on Bursa Malaysia, was the most actively traded counter this morning. The stock rose 6.5 sen to 37.5 sen with 90.3 million shares done.

Decliners this morning included Panasonic, BAT, Aeon, Shell, Atlan, LPI Capital and EON Capital.

Smartag Solutions eyes Mekong region, south China for RFID solutions

KUALA LUMPUR: Smartag Solution Bhd, which provides total radio frequency identification-based (RFID) track and trace solutions, is eyeing the Mekong delta countries and southern China as its new markets.

Its chief executive officer PK Lim said on Monday, April 18 the company had established its expertise and track record in Malaysia and Indonesia since 2004 and these factors should provide it with the groundwork to expand into these countries.

He said Smartag was one of the only two companies in the world which had received full certification for compliance with international standards such as the electronic product code information services (EPCIS) standard.

Lim added that Smartrack - its back-end repository software engine which was developed in-house - was the only such solution in Asia Pacific certified by Global Standards One (GS1) of EPCglobal.

'The certification would open numerous opportunities for Smartag to expand its operation in the region,' he said.

FBM KLCI rebounds after BN retains Sarawak

KUALA LUMPUR:'' The FBM KLCI rebounded on Monday, April 18 following Barisan Nasional's victory at the Sarawak state elections over the weekend that saw the ruling coalition retain its two-thirds majority in the state legislative assembly.

At 10am, the benchmark FBM KLCI was up 6.89 points to 1,528.83.

Gainers led losers by 367 to 83, while 119 counters traded unchanged. Volume was 254.71 million shares valued at RM192.62 million.

At the regional markets, Japan's Nikkei 225 and the Shanghai Composite Index fell 0.19% each to 9,573.04 and 3,044.71 respectively, while Hong Kong's Hang Seng Index slipped 0.13% to 23,976.06.

Meanwhile, Taiwan's Taiex Index added 0.42% to 8,754.58, Singapore's Straits Times Index gained 0.24% to 3,160.85 and South Korea's Kospi edged up 0.07% to 2,141.98.

OSK Research's Shin Kao Jack in a note April 18 said it was still hard to tell which direction the market would take this week, adding that the bulls would like to see the index start to create a new base at above the recent low of 1,517 points.

The market had at least been trading at above this level over the last three trading days, he said.

However, the odds were still high that the index could fall further and even possibly re-test the essential 1,474 point-level again as the short-term uptrend line had been violated, he said.

'We will see whether the index can recover yesterday's (Friday) losses soon or retrace further from here. If the index can start recovering the losses immediately, it means that it might be building a new base at above Wednesday's low.

'Anyhow, the market's near-term technical outlook has been straightforward enough for us to continue to maintain our bullish view as long as the benchmark it is trading at above the 1,474 point-level,' he said.

Shin said the immediate support was still seen at last Wednesday's low of 1,517 points while the 1,500 psychological mark would be the next support.

'To the upside, there is immediate resistance at the 1,565 point-level while the next hurdle is situated at the historic high of 1,577 points,' Shin said.

Among the early gainers on Bursa Malaysia, F&N rose 32 sen to RM16.60, Tahps 30 sen to RM4.80, YTL Corp 24 sen to RM7.96, Tan Chong 21 sen to RM4.72, Hong Leong Bank 20 sen to RM10.50, Ta Ann 19 sen to RM6.30, Tong Herr and Coastal Contracts 18 sen each to RM2.59 and RM3.43, while GAB added 14 sen to RM10.14.

Radio frequency identification (RFID) solutions provider Smartag Solutions Bhd, which maded its debut on Bursa Malaysia today, was the most actively traded counter at mid-morning.

The stock rose six sen to 37 sen with 75.2 million shares done.

Other actives included Viztel, Gula Perak, KUB, Focus Point, Perisai, HWGB and Time.

Decliners included V.S Industry, EON Capital, Wah Seong, Top Glove, Latitude, IOI Corp and Jerneh.

Timber stocks rise in early trade

KUALA LUMPUR: Timber-related stocks advanced on Monday, April 18, led by Sarawak-based companies following the state elections over the weekend that saw Barisan Nasional retain its two-thirds majority to govern the state.

At 10.45am, Ta Ann jumped 32 sen to RM6.43, Jaya Tiasa 21 sen to RM6.50, Subur Tiasa 13 sen to RM3.26, WTK up 11 sen to RM1.85, Lingui eight sen to RM1.87 and Leweko 1.5 sen to 23 sen.

''

China March new home prices up 4.9% in Beijing over year ago

BEIJING: New home prices in Beijing rose 4.9 percent in March from a year earlier, slowing from an annual increase of 6.8 percent in February, the National Bureau of Statistics said on Monday.

In Shanghai, the prices were up 1.7 percent in March, compared with a rise of 2.3 percent in February.

Chinese new home prices rose 5.2 percent nationwide in March from a year earlier, down from a 5.7 percent increase in February, according to a weighted average calculated by Reuters.

In month-on-month terms, new home prices stood flat in Beijing and rose 0.2 percent in Shanghai, the NBS said.

It added that new home prices rose in 68 of the 70 cities tracked by the agency in March from a year earlier. ' Reuters