Jakarta plunges 8.9%, biggest fall since Oct 2008

SINGAPORE: Indonesia stocks plunged 8.9 percent on Thursday, Sept 22 their worst drop since the 2008 financial crisis, as concerns over the struggling rupiah currency and fears over the global economy battered a market that had been the region's best performer.

Jakarta's stock index shed 328.35 points to its lowest close since Jan. 24, its biggest single-day percentage loss since Oct. 8, 2008, at the height of the financial crisis.

The region's best performer last year, which attracted $1.6 billion of inflows to August on top of $2.4 billion in 2010, suffered outflows of $94.3 million on Thursday as worries over the weaker rupiah prompted panic selling.

"It's mainly because of internal currency issues with the rupiah seen weakening above 9,000," said Pardomuan Sihombing, head of research at Jakarta-based Recapital Securities.

"There is panic selling in stocks both from local and foreigners due to the weakening of rupiah and that will cause capital outflows. Firms with dollar exposure, especially importers including Indofood and Astra, will be affected," he said.

Indofood and Astra closed down 13 percent and 9.5 percent respectively.

Exchange authorities dismissed suggestions panic had taken hold.

"We're monitoring conditions. If there is one side that is panic selling, we will stop [trading]. But, for now, there's no panic selling," said Eddy Sugito, listing director at the Indonesia Stock Exchange.

"We will suspend trading if it falls 10 percent or more."

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REGIONAL CURRENCIES, STOCKS UNDER PRESSURE

The dollar rose to a seven-month high against major currencies as a broad sense of aversion to risk swept through financial markets. The U.S. Federal Reserve set the ball rolling on Wednesday when it launched "Operation Twist", a plan to lower borrowing costs by selling or not renewing short-term debt in

favour of longer bonds.

Emerging Asian currencies are expected to weaken further after the Fed's move, although moves by regional authorities are seen as slowing down the pace of their falls, dealers and analysts said.

Despite the worries, the Indonesian currency edged up on Thursday as the central bank intervened through buying government bonds in "large amounts" to stabilize the rupiah.

Other Southeast Asian markets also lost ground as a gloomy outlook for the U.S. economy by the Federal Reserve put a spotlight on risky emerging-market investments.

Thailand fell 3.8 percent to its lowest close since March 3, Singapore was off 2.6 percent to its 15-month closing low, the Philippines hit a near six-month low with a 2.6 percent fall, while Malaysia shed 2.2 percent to end at a more-than one-year low.

Thailand suffered foreign outflows of $87.9 million and Malaysia saw a net offshore selling of $48 million on Thursday.

The gloomy economic outlook after the Federal Reserves comments a day earlier drove World stocks to a more than one-year low. World stocks measured by MSCI fell as much as 2.4 percent to a new one-year low, while the more

volatile emerging-markets stock index was down 4.7 percent for by 0952 GMT.

The MSCI Asia Pacific ex-Japan index was trading 5.4 percent weaker at its lowest level since July 2010 by 0956 GMT.

Financial stocks led falls in the region with Indonesia's largest lender, Bank Mandiri , the biggest micro lender Bank Rakyat Indonesia , and fourth biggest lender by assets Negara Indonesia slumped more than 13 percent each.

Bangkok's Siam Commercial Bank was off 3.4 percent and Singapore's DBS was down 2.1 percent.

Shares of Singapore property stocks tumbled on fears that developers may soon start cutting prices in the face of slowing sales. CapitaLand fell 4.2 percent and City Developments lost 2.9 percent. - Reuters

SapuraCrest awards US$227m contract to Cosco for 2 ships

KUALA LUMPUR: SAPURACREST PETROLEUM BHD []'s unit TL Offshore Sdn Bhd has issued two letters of awards to Cosco'' Nantong Shipyard Co. Ltd to build two ships costing a total of US$227 million.

SapuraCrest said on Thursday, Sept 22, Cosco was to build two pipe-lay cum heavylift offshore CONSTRUCTION [] vessels.

It said the contract price for the first ship was US$116.75 million and the second was for US$110.25 million. The delivery date was 28 months and 26 months.

'The acquisition will enable TLO to capitalise on the positive outlook in the installation of pipelines and facilities (IPF) segment in the oil and gas industry,' it said.

SapuraCrest said with the deployment of these vessels, TLO would be able to boost its market share by growing the revenue stream within its existing core business. After delivery, the ships would deployed for marine construction contracts for major oil companies.

MAA Holdings gets shareholders's nod to sell insurer

KUALA LUMPUR : MAA HOLDINGS BHD [] has obtained its shareholders' approval to dispose its core business Malaysian Assurance Alliance Bhd (MAAB) for RM344 million to Zurich Insurance Co Ltd, which values MAAB at 1.36 times book value.

MAA Holdings'' chairman Tunku Datuk Yaacob Tunku Abdullah'' said on Thursday, Sept 22 although the price tag for MAAB wass considered very low, due to the high capital adequacy requirement sets out by Bank Negara for insurance business, the group's shareholders decided that it is better to dispose MAAB.

He said going forward, MAA Holdings would focus on its takaful business under MAA Takaful Bhd and its asset management business under MAAKL Mutual Bhd.

However, the profit margin for asset management business is considered low, but the group intends to grow its asset value under management which currently stands at RM1 billion to grow its profit.

At the EGM, shareholders approved MAA Holdings name change to MAA Group.'' It will be structured to become an asset management holding company, to acquire stakes in other companies at reasonable price, and later sell it at a rather expensive price.

Tunku Yaacob liken the group's business going forward as more 'like a trader'.

He did not discount any corporate activities to acquire another business to boost the group's profitability going forward, as the current profits derived from its 70% owned MAA Takaful and 75% owned MAAKL Mutual were relatively small compared to profit derived from MAAB prior to the disposal.

ECM Libra 2Q earnings up 189% to RM14.62m

KUALA LUMPUR: ECM Libra Financial Group Bhd's earnings soared 189% to RM14.62 million in the second quarter ended July 31,2011 from RM5.06 million a year ago, contributed by brokerage income, fee income and gains from trading and investment securities.

It said on Thursday, Sept 22, revenue rose 38.64% to RM45.86 million from RM33.08 million. Earnings per share were 1.79 sen compared with 0.62 sen.

The group achieved profit before tax of RM19.7 million compared to RM19.1 million for the preceeding quarter.

'For the current quarter, the group reported a writeback of impairment allowance for bad and doubtful debts of RM5.0 million as compared to RM1.8 million in the last quarter. This increase was partially offset by a lower net interest income of RM8.4 million in the current quarter compared to RM9.7 million in the previous quarter,' it said.

For the first six months ended July 31, 2011, its profit increased by 135.14% to RM28.94 million from RM12.31 million a year ago. Revenue rose 36.25% to RM92.45 million from RM67.86 million.

MAHB privatises RM530m KLIA2 complex to WCT JV

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) is privatising the CONSTRUCTION [] and financing of the integrated complex at KLIA2 under a 25-year concession period to Segi Astana Sdn Bhd ' joint venture between WCT BHD [] and MAHB. The construction cost is RM530.3 million.

WCT said on Thursday, Sept 22 it had signed a concession agreement with MAHB and Segi Astana for the privatisation of the construction, development and financing of the complex on a build-operate-transfer model.

WCT said Segi Astana was currently a unit of WCT Land Bhd, which in turn was a wholly-owned subsidiary of WCT.

Segi Astana's authorised share capital will be increased to RM150 million from RM100,000 while its paid up would be RM106.06 million from RM2 when the commercial operation of the complex starts.

Under the agreement, WCT Land will hold 70% or RM74.24 million of Segi Astana's paid-up and MAHB 30% or RM31.818 million.

MAHB granted WCT the sole and exclusive right and authority during the concession period to build and manage the complex and also arrange for any necessary financing.

The complex comprises of a transportation hub for the Express Rail Link, buses, taxis, car rental services and private transport. It would have''a commercial complex consisting of a shopping mall with net lettable area of approximately 350,000 sq ft; and car parks with 6,000 parking bays.

The construction cost of the project is about RM530.3 million to be funded through external borrowings by Segi Astana and the balance by shareholders equity.

'The concession shall be for a period of up to 25 years and may be extended for a further period of 10 years at the option of the concession company.'' The commencement date of the concession is Aug 1,'' 2011.

'Upon the expiry of the concession period, Segi Astana shall transfer the integrated complex including the building, fittings and relevant documents at no cost to MAHB,' WCT said.

WCT said in consideration of MAHB granting the concession to WCT, Segi Astana would pay MAHB a lease rental of RM31.818 million.

The lease rental shall be net off against the subscription price payable by MAHB in respect''of their''30% equity holding in Segi Astana.'' MAHB may also be entitled to royalty payments.

'As KLIA2 will be a dedicated international terminal for low-cost carriers and in view of the expected increase in demand for low cost air travel, the prospects of the concession company are expected to be positive. The revenue from the project will further broaden and strengthen WCT group's future recurring income base,' it said.

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KYM ventures into iron ore mining in Aceh

KUALA LUMPUR: KYM HOLDINGS BHD [] is venturing into iron ore mining'' in Aceh with the mining concession holder with PT Samana Citra Agung.

KYM said on Thursday, Sept 22 that Samana Citra Agung granted its unit KYM Mineral Sdn Bhd the rights to mine, process and sell the products from the concession in the Aceh province, Sumatra covering 158 ha.

It said for a period of three months from the date of the memorandum of agreement, KYM Mineral would have the rights to conduct and complete a due diligence on the project.

However, if the due diligence was been completed after three months, and/or if the outcome of the study was not satisfactory in KYM Mineral's opinion, either party could terminate this agreement.

If KYM Mineral was satisfied with the due diligence, it would have the rights to set up a processing plant at or near the concession within six months.

Bursa introduces corporate disclosure guide, effective Jan 3

KUALA LUMPUR: BURSA MALAYSIA BHD [] is introducing a corporate disclosure guide to improve the quality of information for financial reporting which will take effect from Jan 3, 2012.

It said on Thursday, Sept 22 that to promote high standards of corporate disclosure, it has amended its Listing Requirements (LR) and introduced a Corporate Disclosure Guide (CD Guide) to help listed issuers raise their standards of disclosure.

'High standards of disclosure is a value proposition that can enhance a listed issuer's investability,' it said.

Bursa Malaysia's chief executive officer Datuk Tajuddin Atan said Bursa Malaysia's regulatory framework was to 'primarily to maintain market integrity and investor protection'.

He pointed out reliable, informative and timely disclosures were crucial to build a corporate community that was disclosure based and transparent.

'The amendments made are part of the Exchange's continuous review given the ever-changing capital market environment. In this dynamic environment, investors demand for timely, adequate and relevant information to make informed decisions,' he said.

The amendments were:

(a) improving the quality of information for financial reporting;

(b) improving disclosure by listed issuers in areas of related party transactions, poll voting, corporate proposals, boardroom/senior management/external audit announcements;

(c) according greater flexibility to listed issuers in structuring share scheme for employees;

(d) promoting greater transparency in respect of share schemes for employees which do not involve issuance of new shares;

(e) facilitating listed issuers to pay dividends in shares to their shareholders through a 'Dividend Reinvestment Scheme'; and

(f) promoting greater efficiency in the market by allowing listed issuers to buy back odd lot shares through direct business transactions.

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KLCI falls to lowest level since Aug 2010

KUALA LUMPUR: The FBM KLCI fell 2.2% on Thursday, Sept 22 to its lowest level since August 19, 2010 in line with global markets spooked by the grim economic outlook for the US economy and slowing manufacturing output in China.

The FBM KLCI lost 31.23 points to 1,387.81 as the broader market turned negative with losers pummeling gainers by 802 to 85, while 162 counters traded unchanged.

Volume was 874.11 million shares valued at RM1.71 billion.

Among the major decliners, Dutch Lady and Hong Leong Bank fell 62 sen each to RM18.88 and RM9.98, Petronas Dagangan 52 sen to RM16.40, Nestle and Genting 50 sen each to RM49 and RM8.80, MSM 43 sen to RM4.54, Parkson 40 sen to RM5.10, Aeon 38 sen to RM6.90 and Shell 33 sen to RM9.45.

Petronas Chemicals was the most actively traded counter with 28 million shares done. The stock fell 27 sen to RM5.54.

Other actives included Axiata, AirAsia, MRCB, UEM Land, Dialog, Genting and Timecom.

Among the gainers, Proton added 26 sen to RM2.88, Aeon Credit 15 sen to RM4.70, Kawan Food 11.5 sen to 99.5 sen, Maypak 10 sen to 32 sen, UMS nine sen to RM1.64, while Ewein and Lafarge Malayan Cement added seven sen each to 88 sen and RM6.80.

At the regional markets, Hong Kong's Hang Seng tumbled 4.85% to 17,911.95, Taiwan's Taiex lost 3.06% to 7,305.50, South Korea's Kospi fell 2.90% to 1,800.55, the Shanghai Composite Index down 2.78% to 2,443.06, Singapore's Straits Times Index lost 2.55% to 2,750.53 and Japan's Nikkei 225 shed 2.07% to 8,560.26.

Mudajaya MD resigns effective Sept 30

KUALA LUMPUR: MUDAJAYA GROUP BHD []'s managing director Ng Ying Loong tendered his resignation citing family commitments as the main reason but he would continue to be an adviser to the board.

Mudajaya said the resignation will take effect on Sept 30. His role will be taken over by the current joint managing director Anto Joseph, a veteran with the company for the past 18 years.

It said Ng would continue playing a key role in the group as advisor to the board.

'We are also confident that Anto who has co-helmed the group as joint managing director since April 2011 is the ideal leader to add value to the business and opportunities of Mudajaya,' it said.

Ng said: 'This change is a good move for the Group and it is with great faith that I pass on my responsibilities to Anto who will undoubtedly embrace this role with great ease and propel us forward in meeting our financial targets.'

He said Mudajaya's current order book was RM4.8 billion which he described as 'clearly a strong figure and coupled with our stable management and the prospect of the Indian power project providing steady quality earnings once it is completed, indeed the Group is in a solid position with great opportunities ahead'.

Anto, 59, is a professional engineer who has been with the Group since 1993 holding various posts including executive director since 1996.

He holds a Bachelor of TECHNOLOGY [], Civil (First Class) from the Indian Institute of Technology and is a member of the Board of Engineers, Malaysia and Chartered Engineer, UK.

The board also said the chairman Asgari Mohd Fuad Stephens would pass the baton to Datuk Yusli Mohamed Yusoff. However, Asgari will remain as a member of the board.

Yusli, 52, helmed Bursa Malaysia for seven years, he served as chief executive at CIMB Securities and held senior positions with METACORP BHD [], Shapadu Corporation and Renong Bhd.

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#Flash* KLCI falls further, dn 27 pts

KUALA LUMPUR: Blue chips fell sharply in late trade on Thursday, Sept 22, falling more than 27 points, the most in several weeks, in line with the selldown in regional and European markets.

At 4.15pm, the FBM KLCI fell 27.54 points to 1,391.5. Turnover was 703.37 million shares valued at 1.32 billion.'' Losers hammered gainers 798 to 59.

Technical chartists said the next strong support level for the KLCI was 1,360.

In Hong Kong, shares tumbled, dragged lower by mainland energy and property counters as investors reacted to different policy signals from Beijing and as turnover surged to the highest in more than three weeks.

The Hang Seng Index closed down 4.85% at 17,911.95, while the China Enterprises Index closed down 6.31% at 9,202.7.

The Shanghai Composite Index slumped 2.78% to 2,443.06, weighed by large-cap energy issues as A-share turnover declined from Wednesday's high but hit the second-highest in a month.

At Bursa Malaysia, Nestle was the top loser, down RM1 to RM48.50 and Dutch Lady'' 50 sen to RM19.

HL Bank lost 61 sen to RM9.99, HLBank-OR shed 58 sen to RM1.37, Genting 48 sen to RM8.82 and Aeon 38 sen to RM6.90.