FBM KLCI falls as Asian, Europe markets slump

KUALA LUMPUR: ''The FBM KLCI closed lower on Monday, June 6 in line with the dip at key regional markets as well the weaker opening at European indices, on concerns that the economic recovery in the US was running out of steam.

The FBM KLCI fell 7.71 points to 1,552.14, weighed by losses including at Genting, Tenaga, KLK and BAT.

Losers beat gainers by 454 to 261, while 316 counters traded unchanged. Volume was 635.33 million shares valued at RM972.53 million.

At the regional markets, Japan's Nikkei 225 fell 1.18% to 9,380.35, Singapore's Straits Times Index lost 1% to 3,113.73 while Australia's S&P/ASX 200 Index shed 0.31% to 4,569.10.

The stock markets in Hong Kong, China, Taiwan and South Korea were closed today for public holidays, and would resume trade tomorrow.

European markets mostly opened in the red, tracking the weak employment data released in the US last week.

Wall Street closed out a fifth week of losses with more selling last Friday after an anaemic jobs report strengthened the case that the economy was slowing.

On Bursa Malaysia, the top loser today was BAT that fell 90 sen to RM47.02; Pharmaniaga lost 30 sen to RM5.60, Genting 22 sen to RM10.98, KLK 16 sen to RM21.92, Guan Chong and Lafarge Malayan Cement 15 sen each to RM2.70 and RM7.35, Malaysia Smelting Corp 12 sen to RM5.10 and Tenaga fell four sen to RM6.95.

Tejari was the most actively traded counter with 31.1 million shares done. The stock was unchanged at 7 sen.

Other actives included KNM, Scomi, HWGB, Karambunai, Asia Media, Maybank and Tenaga.

Among the gainers, BLD PLANTATION []s added 87 sen to RM7.25, Tradewinds 79 sen to RM10.28, Hap Seng 38 sen to RM5.56, Delloyd 23 sen to RM3.83, Mitrajaya 16 sen to RM2.16, Glenealy 15 sen to RM5.43, while Bernas and Ekovest added 13 sen each to RM2.95 and RM2.68.

Petronas to intensify efforts to search for new sources for supply

KUALA LUMPUR: Petroliam Nasional Bhd will intensify its efforts to search for new sources of supply, as existing fields deplete, said its president and CEO Datuk Shamsul Azhar Abas.

He also said that that exploration activity to detect Asia's undiscovered resources, 50 billion barrels estimated from the Asian region alone, would assist suppliers with the growing demand.

Speaking at the opening of the 16th Asia Oil and Gas Conference on Monday, June 6, Shamsul said that by 2030, it has been estimated that production capacity would increase to 112 million barrels per day by 2030, with oil demand reaching 107 million barrels per day.

'The resource potential that can be unleashed through a combination of initiatives including Enhanced Oil Recovery (EOR), accelerated small and marginal development and a renewed focus on new plays including basement reservoirs is significant.

'Aggressively intensifying activities on these fronts is a key priority for Petronas, complementing our existing international exploration and production (E&P) strategies. Through contributions from these initiatives, we believe that a potential resource addition of up to 1.7 billion barrels of oil equivalent can be achieved,' he said.

Shamsul added that global demand for oil rose by 2.7 million barrels per day last year, the second largest annual increase in over 30 years.

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#Flash* Time Engineering to continue focus on ICT

KUALA LUMPUR: T ime Engineering Bhd will focus on the information communication TECHNOLOGY [] (ICT) segment as its core business following the disposal of the company's entire 24.74% stake in TIME DOTCOM BHD [].

Time Engineering Non executive director Datuk Mohd Izzadin Idris said the disposal proceeds will be used to repay the company's debts.

"We are still focused on ICT based the on current plan," Izzadin told reporters after Time Engineering's AGM and EGM in KL this morning.

All the resolutions tabled were passed by shareholders. ''UEM Group owns 45% of Time Engineering. Khazanah Nasional in turn owns 100% of UEM.

FBM KLCI remains in the red at mid-day break

KUALA LUMPUR: The FBM KLCI remained in negative territory at the mid-day break on Monday, June 6 in line with the tepid global market sentiment following the less-than-encouraging economic data released in the US last week.

The weakest U.S. jobs growth in eight months in May reflected a global business cycle shifting to slower growth and confirmed what many investors had been already anticipating by taking a defensive stance in their portfolios, according to Reuters.

The two outstanding questions for them are if the synchronised slowdown reflected in industrial indicators around the globe is a warning of something worse on the horizon and whether monetary policy can again come to the rescue of major economies this time, it said.

On Bursa Malaysia, the FBM KLCI fell 0.28% or 4.40 points to 1,555.45 at 12.30pm, weighed by losses including at banking stocks and select blue chips.

Losers beat gainers by 372 to 199, while 287 counters traded unchanged. Volume was 306.56 million shares valued at RM364.73 million.

At the regional markets, Japan's Nikkei 225 fell 0.71% to 9,425.17, Singapore's Straits Times Index lost 0.53% to 3,129.04 and Australia's S&P/ASX 200 Index was down 0.37% to 4,566.10.

The stock markets in Hong Kong, China, Taiwan and South Korea are closed today for public holidays.

Nestle was the top loser at mid-day and fell 46 sen to RM47.50; Pharmaniaga lost 30 sen to RM5.60, Tahps 15 sen to RM4.65, KLK and Genting lost 14 sen each to RM21.94 and RM11.06, Inno 10 sen sen to RM1.24 and Panasonic fell eight sen to RM23.92.

Among banks, Hong Leong Bank fell four sen to RM12.52, RHB Capital five sen to RM9.93, CIMB three sen to RM8.31 and AMMB two sen to RM6.45.

Tejari was the most actively traded counter with 26.9 million shares done. The stock was unchanged at 7 sen.

Other actives included Scomi, HWGB, Asia Media, SAAG, KNM, Focus and Maybank.

Tradewinds was the top gainer and added 73 sen to RM10.22; Delloyd rose 17 sen to RM5.35, Bernas 13 sen to RM2.95, BLD PLANTATION []s 12 sen to RM6.50, Shell and HLFG 10 sen each to RM10.80 and RM12.12 while Latexx rose nine sen to RM2.23.

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IATA halves airline industry profit forecast

SINGAPORE: Global airlines body IATA more than halved its forecast for 2011 industry profits on the back of high oil prices and turmoil in Japan, North Africa and the Middle East.

IATA, whose airlines claim to carry 93 percent of global passenger traffic, said it expected industry profits of $4 billion in 2011, down from a previous forecast of $8.6 billion.

Economists say the industry's outlook is a guide to the strength of cyclical recovery in developed markets and growth in emerging economies, which rely heavily on air transport.

The 230-member International Air Transport Association also revised up its estimate for profits in 2010, to $18 billion from $16 billion.

Airlines rebounded faster than expected from recession last year, helped by higher traffic and a drive to keep a lid on spare capacity. But a series of external shocks and higher oil prices have hit the industry hard this year.

Airlines had been bracing for lower forecasts at this week's major conference as fears grow over the global economy. ' Reuters

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FBM KLCI dips amidst lacklustre trade

KUALA LUMPUR: The FBM KLCI opened in the red on Monday, June 6 following the weaker close at Wall Street last Friday, as well as lack of fresh leads from regional markets that were mostly closed.

At 10am, the FBM KLCI slipped 4.90 points to 1,554.95 weighed by losses including at Genting, Hong Leong Bank, KLK and DiGi.

Losers edged gainers by 210 to 118, while 178 counters traded unchanged. Volume was 128.19 million shares valued at RM78.37 million.

At the regional markets, Japan's Nikkei 225 fell 0.94% to 9,403.06, Singapore's Straits Times Index shed 0.40% to 3,133.19 and Australia's S&P/ASX 200 Index lost 0.48% to 4,561.30.

The stock markets in Hong Kong, China and South Korea are closed today for public holidays.

Maybank Investment Bank Bhd head of retail research and chief chartist Lee Cheng Hooi in a note to clients June 6 said the FBM KLCI was expected to remain volatile today.

He said investors should trade the local market with a short-to-medium term time frame.

'Despite the recent global volatility, the FBM KLCI has gone up in a small way. The question investors will ask is that how long can the index do this is in the face of global adversity.

'Also, the volume traded on the local exchange will be very low and investors will question the validity and wisdom of the local funds pushing the index up on miniscule volumes,' he said.

Pharmaniaga was the top loser at mid-morning and fell 30 sen to RM5.60; Hong Leong Bank and KLK fell 16 sen each to RM12.40 and RM21.92, Dutch Lady lost 14 sen to RM18.04, DiGi and Genting fell eight sen each to RM28.82 and RM11.12, KPJ seven sen to RM4.23, while Panasonic fell six sen to RM23.94.

Tejari was the most actively traded counter at mid-morning. The stock gained half a sen to 7.5 sen with 19.53 million shares done.

Other actives included Scomi, HWGB, SAAG, Asia Media, KNM and Century Software.

Among the gainers, Tradewinds added 33 sen to RM9.82, HLFG 24 sen to RM12.26, Hap Seng 18 sen to RM5.36, MMSV and Mudajaya 10 sen each to 21 sen and RM4.70, Esso nine sen to RM5.17, Glenealy, Paramount and Scomi Engineering seven sen each to RM5.35, RM5.72 and 90 sen respectively while KYM added six sen to RM2.38.

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Malaysia Airlines to join oneworld alliance

KUALA LUMPUR: Malaysia Airlines is to join oneworld alliance soon and expects to start flying as part of the alliance late next year.

In a statement Monday, June 6, MAS said it was unanimously elected a oneworld member designate by the Chief Executives of the alliance's member airlines, at a meeting on the sidelines of IATA's 2011 World Air Transport Summit, which opened in Singapore today.

'A formal alliance membership agreement will be completed soon,' it said.

The national carrier said it plans to to develop bilateral links with a number of oneworld's established partners, who include some of the biggest and best names in the airline industry.

It already code-shares with oneworld partners Cathay Pacific and Royal Jordanian.

MAS said that it becomes part of oneworld, its customers would gain access to the alliance's global network.

'It will expand oneworld's global coverage to almost 950 destinations in 150 countries, served by a combined fleet of more than 2,600 aircraft operating some 10,000 flights a day and carrying 358 million passengers a year,' said MAS.

The airline also said that opportunities for expanding the alliance's coverage of the country would be explored as Malaysia Airlines prepares to join.

'When it becomes part of oneworld, members of Malaysia Airlines' Enrich frequent flyer programme will be able to earn and redeem rewards on any of oneworld's 14 other top-class carriers, with top tier members able to use any of the group's 550 plus airport lounges, and its network will be covered by oneworld's range of alliance fares.

'At the same time, frequent flyer cardholders of oneworld's established airlines will be able to earn and redeem rewards when flying on Malaysia Airlines,' it said.

Qantas is serving as sponsor of Malaysia Airlines' entry into oneworld.

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Mudajaya rises on RM720m sub-con job

KUALA LUMPUR: MUDAJAYA GROUP BHD [] share rose in early trade on Monday, June 6 after its ''unit Mudajaya Corporation Bhd been given a letter of intent to design and build a component of the Manjung power plant for a sub-contract valued at RM720 million.

At 9.10am, Mudajaya gained 13 sen to RM4.73 with 131,500 shares traded.

Mudajaya Corp was the given the letter on June 2 by CMC Machipex Sdn Bhd to build the balance of plant component of Manjung No. 4 Power Plant Project.

Scomi active, up on Brazil monorail job

KUALA LUMPUR: SCOMI GROUP BHD [] and SCOMI ENGINEERING BHD [] shares were actively traded on Monday, June 6 after Scomi Engineering and its consortium partners were awarded the RM2.6 billion Line 17 monorail project in Sao Paulo, Brazil.

At 9.20am, Scomi was up two sen to 30.5 sen with 10.2 million shares done and Scomi Engineering added 9.5 sen to 92.5 sen with 830,800 shares traded.

The monorail project awarded to the consortium which consists of Scomi, Andrade Gutierrez S.A. (AG Group), CR Almeida S.A. Engenharia de Obras and Montagens e Projetos Especiais SA (MPE) will cover the design works, manufacture, supply and implementation of the monorail system for the 18-km monorail Line 17, or the Gold Metro of S''o Paulo.

Scomi said the project was expected start in July this year and be completed in 42 months.

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Nikkei falls 0.3% after weak U.S. jobs data

TOKYO: The Nikkei benchmark fell on Monday after soft U.S. jobs data added to evidence that the world's biggest economy was slowing, but losses may be limited as valuations for Japanese stocks are seen as attractive.

The Nikkei fell 0.3 percent to 9,460.14. The broader Topix fell 0.3 percent to 814.42. ' Reuters

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