Bursa Saham Kuala Lumpur (FBMKLCi)

[lampor_2003]

21st December 2018

Dow Jones : ⬇464.06‼
Nasdaq : ⬇108.42‼

Dow sinks another 464 points as slowdown fears worsen

GOLD PRICE : 1,260.31
⬆8.21 / 0.65

WTI CRUDE OIL : 46.20
⬇1.97 / 4.09%‼

BRENT OIL : 54.77
⬇2.47 / 4.32‼

USD/MYR : 4.19


CORPORATE NEWS

• The opening date of Genting Malaysia Bhd’s most anticipated new outdoor theme park is still up in the air, as the group is still considering various options for it.*

• Tenaga Nasional Bhd is targeting to increase the number of customers next year through the implementation of the Net Energy Metering (NEM) and the Supply Agreement for Renewable Energy (SARE) schemes via its wholly-owned subsidiaries TNBX Sdn Bhd and G-Sparx Sdn Bhd.*

• E.A. Technique (M) Bhd has bagged two contracts for the supply and operation of vessels, worth a collective RM94.5 million.*

• KKB Engineering Bhd's unit Harum Bidang Sdn Bhd has secured a supplementary contract for the supply and delivery of concrete-lined mild steel pipes and mechanical couplings worth an estimated RM46.7 million.*

• The contract, which was awarded by CMS Infra Trading Sdn Bhd, a unit of Cahya Mata Sarawak Bhd, entails the supply and delivery of the pipes to JKR Central Unallocated Stores in Tanah Puteh, Kuching.*

• Practice Note 17 company YFG Bhd said Atta Group Global Bhd has terminated a RM30 million construction contract that was offered to the group, due to corporate and personal guarantee issues.

• Dagang Nexchange Bhd (Dnex) has proposed to dispose of its 51% stake in Forward Energy Sdn Bhd (FESB) to FESB managing director Datuk Azmi Abdullah for a nominal sum of RM1.

• Aeon Credit Service (M) Bhd's net profit rose 23.5% to RM87.14 million in the third financial quarter ended Nov 30, 2018, from RM70.55 million a year ago, as revenue improved on stronger interest income, profit revenue, finance charges and fee income. Earnings per share rose to 33.35 sen from 28.74 sen.*

Disclaimer:This message is for information purposes only. Reproduction or dissemination to third party is prohibited. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information nor shall it be construed as an offer/solicitation or recommendation to buy/sell any stocks . Investors should make their own informed decisions by consulting your own independent adviser(s) before investing. We accept no responsibility or liability for loss or damage that may arise from the reliance of this message. For the full information regarding the stocks mentioned herein please refer to the relevant websites.

 

[lampor_2003]

QL buys five land plots for RM48.7m for business expansion

theedgemarkets.com

December 20, 2018 23:18 pm +08

KUALA LUMPUR (Dec 20): QL Resources Bhd is buying five plots of land from four parties related to its major shareholders to expand its farming and food processing businesses for RM48.7 million.

The lands, measuring 41.401 acres in total, are located in Sabah, Selangor and Perak. The deals are transacted via its subsidiaries.

In the first land deal, its wholly-owned QL Agroventures Sdn Bhd (QLAV) is buying a 17.15-acre plot in Sabah from MB Agriculture (Sabah) Sdn Bhd for RM2.09 million. The land, adjacent to the group's current boiler farm, is to be used for QLAV's farming expansion.

"The new broiler farm is expected to increase the total farms' production capacity by 50%," QL said.

In the second deal, it's subsidiary QL Kitchen Sdn Bhd (QLK) is buying a 4.046-acre freehold vacant industrial plot in Shah Alam, Selangor, from Sizeable Properties Sdn Bhd for RM19 million. "The land acquired will be used for QLK's food processing operation," QL said.

In the third land deal, its subsidiary KS Galah Sdn Bhd is buying a portion of a leasehold vacant industrial land measuring 9.605 acres in Klang, Selangor, from Inspirasi Delima Sdn Bhd for RM23 million, to build a feed mill plant. "This is in line with the group's strategic plan in establishing its broiler integration project," QL said.

In the final transaction, its unit QL Foods Sdn Bhd is buying two plots of freehold agriculture land measuring a collective 10.6 acres from Credential Development Sdn Bhd for RM4.6 million, to expand its food manufacturing business.

"The said land is adjacent to the existing water treatment plant and the acquisition will facilitate the urgent need to expand its [QLF's] water treatment facilities to cater for the increasing production capacity of the new production plant," QL said.

The four vendors are companies linked to CBG (L) Pte Ltd and Farsathy Holdings Sdn Bhd, both major shareholders of QL.

QL said the acquisitions, to be funded by internal funds and/or borrowings, are expected to be completed within six months.

 

[lampor_2003]

Highlight
Falling share price a challenge to Sapura Energy’s cash call

theedgemarkets.com

December 21, 2018 09:09 am +08

This article first appeared in The Edge Financial Daily, on December 21, 2018.


KUALA LUMPUR: Sapura Energy Bhd’s share price fell below its rights issue price of 30 sen for two consecutive trading days. The weak share price implies the heightening of underwriting risks among the three underwriters, namely Maybank Investment Bank Bhd (Maybank IB), CIMB Investment Bank Bhd and RHB Investment Bank Bhd.

The three investment banks have entered into an agreement to underwrite 2.5 billion rights shares that may cost up to RM750 million.

Given that the market price has fallen below the rights issue price, investors may be reluctant to subscribe for the group’s five-for-three rights issue of shares. Sapura Energy shares closed at 29 sen yesterday, down half a sen or 1.7%, with a market capitalisation of RM1.74 billion.

No thanks to the reverse of the upward trend on crude oil prices, Sapura Energy’s share price drifted to an all-time low of 28 sen shortly after the opening bell yesterday.

When contacted, Phillip Capital Management Sdn Bhd chief investment officer Ang Kok Heng told The Edge Financial Daily that since it is cheaper to obtain Sapura Energy shares on the open market, investors will have to reconsider subscribing for the rights issue, for which the acceptance and payment date is less than a month away on Jan 16, 2019.

“Investors, portfolio managers and underwriters are not like the company’s owner; they have a different level of loyalty. The owner may be convinced on the long-term prospects and doesn’t mind paying a premium, but for investors like portfolio managers, they will start to be pressured if their investments are not making money for one or two years.

“There is still some time from now until the deadline for the subscription, so there is still uncertainties there,” said Ang.

According to Ang, there is intraday short selling of Sapura Energy shares, which has added pressure to its share price.

The group’s cash call is made up of the five-for-three rights issue, which is to raise nearly RM3 billion, and a rights issue of Islamic redeemable convertible preference shares (RCPS-i) at 41 sen, to raise RM983 million.

So far, Permodalan Nasional Bhd (PNB), the group’s second largest substantial shareholder, has been supportive of the cash call.

In total, PNB will fork out RM2.68 billion for the rights issue of shares and RCPS-i as it has given the undertaking to subscribe for some of the unsubscribed shares and RCPS-i. PNB will become the single largest shareholder of Sapura Energy, holding 40% upon completion of the rights issue.

Sapura Energy president and chief executive officer Tan Sri Shahril Shamsuddin, the single largest shareholder currently, and his privately owned vehicle have raised their commitment to RM400 million from RM300 million initially.

The cash call is an important part of the group’s recapitalisation exercise to pare down its huge borrowings of RM14 billion, of which RM4.59 billion are borrowings from Malayan Banking Bhd, the parent of Maybank IB.

Sapura Energy’s other senior executives have also given their undertaking in writing for at least RM15.6 million subscription of the rights issue.

JF Apex Securities senior analyst Lee Cherng Wee noted that Sapura Energy’s long-term prospects are positive given the slew of contracts that it has recently secured.

In view of that, investors may tend to wait until the group shows concrete profit figures instead of diving into the stock now.

“Sapura Energy’s long-term prospects are better; their earnings are expected to recover maybe by the end of next year. So investors do not feel the need or urgency to buy shares now. They can wait for more clarity and buy later, instead of bearing the premium to subscribe for the rights issue, and currently the oil price is not so good as well,” he said.

That said, Lee has a “buy” call on Sapura Energy, with a target price of 50 sen.

Hong Leong Investment Bank research analyst Sean Lim also said Sapura Energy’s long-term prospects remain intact, provided the group manages to deleverage its balance sheet.

“So far, Sapura Energy’s job prospects remain intact, and things may get better in the long term after they deleverage,” he said. Lim also has a “buy” call on the group with a target price of 41 sen.

Apart from the rights issue and RCPS-i, Sapura Energy is also selling 50% of its upstream business, Sapura Upstream Sdn Bhd, to Austria-based OMV Aktiengesellschaft, raising US$890 million (RM3.72 billion) cash and contingency funds of up to US$30 million in relation to Sapura Energy’s Block 30 exploration asset in Mexico.

Sapura Energy plans to utilise US$720 million to partly repay its debt. Another US$160 million will be used as working capital after setting aside about US$10 million for the exercise.

If all pans out as planned, including the cash call, Sapura Energy will have the chance to reap the fruits. Will minority shareholders lend a helping hand?

 

[Teck Liang]

Hello why no more post? Want to learn more

 

[Lee_85]

More post more info!!

 

[casper_90]

Hey thanks 4 sharing

 

[lampor_2003]

Market Preview
KLCI likely to kick-start 2019 on a cautious note
Surin Murugiah
/
theedgemarkets.com

January 02, 2019 05:37 am +08
-A+A
KUALA LUMPUR (Jan 2): The FBM KLCI, which ended 2018 with a whimper and dropped 5.9% year-to-date, is likely to commence trade for 2019 on a cautious note, despite the higher close at most global markets on Dec 31.

Equities around the world rose on Monday as possible progress in resolving the trade dispute between the United States and China engendered some investor optimism in what has been a punishing end of year for markets, according to Reuters.

The U.S. benchmark S&P 500 stock index advanced in light trading volume after U.S. President Donald Trump said he held a "very good call" with China's President Xi Jinping on Saturday to discuss trade and said "big progress" was being made, it said.

On Monday, the Dow Jones Industrial Average rose 265.06 points, or 1.15 percent, to 23,327.46, the S&P 500 gained 21.11 points, or 0.85 percent, to 2,506.85 and the Nasdaq Composite added 50.76 points, or 0.77 percent, to 6,635.28, said Reuters.

Inter-Pacific Research Sdn Bhd in a strategy note Dec 31 said the downswing in the KLCI exhibits all the hallmarks of a bear market at this point.

The research house explained that 1) Liquidity has been progressively drained out of the market by a drawn-out foreign fund selloff that has drawn in local funds as well as retail participants. 2) Stock valuations remain at elevated levels despite eye-watering drawdowns from peak levels due to a dismal earnings report card for several reporting seasons already. 3) Poor personal income growth following an inflationary bout beginning 2015 that extended into 2017 did no favours for already waning animal spirits among domestic investors.

“Across the rural heartlands and the myriad little towns that serve them, falling agricultural commodity prices weighed heavily on incomes.

“"If corporate earnings continue their disappointing trajectory and turn in flat for the year, our expectation (is) that the KLCI may fall to as low as 1,538 some time in 1H2019. This is still a developing scenario,” it said.

Based on corporate announcements and news flow on Monday, stocks in focus today may include Petronas Gas Bhd, Public Bank Bhd, AMMB Holdings Bhd, Genting Bhd, Genting Malaysia Bhd, Genting Plantations Bhd, Vizione Holdings Bhd, Pintaras Jaya Bhd, Handal Resources Bhd, Ornapaper Bhd, FGV Holdings Bhd, Kronologi Asia Bhd, Yinson Holdings Bhd, Merge Energy Bhd, Malaysia Airports Holdings Bhd, Binasat Communications Bhd and Theta Edge Bhd.

 

[lampor_2003]

2nd January 2019

Dow Jones : ⬆265.06
Nasdaq : ⬆50.76

US stocks end dismal, volatile year on a bright note

GOLD PRICE : 1,***.85
⬆4.55 / 0.36%

WTI CRUDE OIL : 45.41
⬆0.08 / 0.18%

BRENT OIL : 53.80
⬆0.59 / 1.11%

USD/MYR : 4.14


CORPORATE NEWS

• Petronas Gas Bhd (PetGas) said it has entered into the second term of the gas processing agreement (GPA) with its parent Petroliam Nasional Bhd (Petronas), with revised remuneration terms. The second term will commence tomorrow (Jan 1, 2019) until Dec 31, 2023.

• Public Bank Bhd said Tan Sri Teh Hong Piow retires as chairman today but he will remain on the board as non-independent non-executive director effective tomorrow (Jan 1, 2019).

• AMMB Holdings Bhd said today Voon Seng Chuan will be appointed as the new chairman of AmBank (M) Bhd with effect from tomorrow (Jan 1, 2019) as part of the financial-services group's directorship and chairmanship transition plan.

• Lim Keong Hui, the son of Tan Sri Lim Kok Thay chairman and chief executive officer (CEO) of Genting Group has been appointed as deputy CEO of Genting Bhd, Genting Malaysia Bhd*(GENM) and Genting Plantations Bhd*(GENP) effective tomorrow (Jan 1).

• Vizione Holdings Bhd has bagged a RM377.6 million contract from Permata Rebana Sdn Bhd to supply materials, labour and project management services relating to road works in Kota Kinabalu, Sabah.

• Pintaras Jaya Bhd's unit has been awarded three new piling contracts worth a combined RM103 million.

• Integrated crane services provider Handal Resources Bhd announced that its founder and non-executive chairman Datuk Mohsin Abdul Halim has tendered his resignation as he intends to retire from the position.

• Ornapaper Bhd executive director Sai Han Siong has been redesignated as chief executive director of the group, replacing See Wan Seng who has retired.

• FGV Holdings Bhd has aborted its plan to collaborate with the Sabah Forestry Department to explore the rehabilitation of riparian and forest buffer zone which lies between the forest reserve and the FGV estate in Sahabat, Sabah.

• Geoffrey Ng Ching Fung has been appointed the non-executive chairman of Kronologi Asia Bhd effective tomorrow (Jan 1), following the resignation of Gerard Tan Wee Seng.

• Yinson Holdings Bhd said its Vietnam associate PTSC Asia Pacific Pte Ltd (PTSC AP) has entered into an addendum to the bareboat charter interim contract with Petrovietnam Technical Services Corp (PTSC) to extend the tenure for a further six months commencing Jan 1 till June 30, 2019.

• Malaysia Airports Holdings Bhd (MAHB) will be embarking on upgrading works of the Kuala Lumpur International Airport's (KLIA) communication infrastructure starting from Jan 1.

• Binasat Communications Bhd chief financial officer (CFO) Ng Kok Meng has resigned to pursue other career opportunity. The group has yet to announce a replacement for Ng.

• Theta Edge Bhd said Othman Omar retires as chief operating officer today but will continue to serve the ICT company in a senior advisory capacity to ensure continuity on several large key projects and initiatives.

• PUC Bhd is buying the rest of Pictureworks Holdings Sdn Bhd it does not already own from its group managing director and chief executive officer Cheong Chia Chou and two other companies for RM167.5 million.

Disclaimer:This message is for information purposes only. Reproduction or dissemination to third party is prohibited. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information nor shall it be construed as an offer/solicitation or recommendation to buy/sell any stocks . Investors should make their own informed decisions by consulting your own independent adviser(s) before investing. We accept no responsibility or liability for loss or damage that may arise from the reliance of this message. For the full information regarding the stocks mentioned herein please refer to the relevant websites.

 

[lampor_2003]

Market Preview
KLCI to trend lower, immediate support at 1,658
Surin Murugiah
/
theedgemarkets.com

January 04, 2019 06:26 am +08
-A+A
KUALA LUMPUR (Jan 4): The FBM KLCI is expected to trend lower today, in line with the overnight slump at most global markets, with immediate support at 1,658.

A revenue warning from Apple Inc rocked equity markets around the globe on Thursday as concerns over the damaging China-U.S. trade battle and its impact on world economic growth boosted assets considered safer investments, such as bonds and the Japanese yen, according to Reuters.

Technology stocks led a selloff in equities after Apple, blaming weaker iPhone sales in China, late on Wednesday cut its revenue forecast for the first time in nearly 12 years. Apple's U.S.-listed shares closed down 10 percent, it said.

In the U.S. equity market, the Dow Jones Industrial Average fell 660.02 points, or 2.83 percent, to 22,686.22, the S&P 500 lost 62.14 points, or 2.48 percent, to 2,447.89 and the Nasdaq Composite dropped 202.43 points, or 3.04 percent, to 6,463.50, said Reuters.

AllianceDBS Research in its evening edition yesterday said the FBMKLCI had on Jan 3 formed an inside day bar as market participants decided not to stage a follow through selling pressure.

It said in the absence of stronger selling interest, the benchmark index was in the green throughout most of the trading sessions before settling at 1,675.83 (up 7.72 points or 0.46%).

“In the broader market, losers outnumbered gainers with 367 stocks ending lower and 366 stocks finishing higher. That gave a market breadth of 0.99 indicating the bears were in better control with the bulls closely matched,” it said.

AllianceDBS Research said the inside day bar indicated a pause in the game play.

“It was indeed a surprise not seeing a lower low on Jan 3 given the down close on Jan 2.

“In the hope to pull the benchmark index away from the immediate risk of triggering a snow ball rolling effect, a buying attempt with an opening level of 7.05 points higher than previous day’s close was initiated.

“This uplifting move had helped to alleviate the urgency on the part of the market participants to sell aggressively. The higher low may be encouraging, but it remained premature to confirm anything at this juncture as market participants was generally still looking to minimize distractions,” it said.

The research house said following the off day’s high up close on Jan 3, there should be selling attempt with immediate support at 1,658.

A fall below 1,658 would see a test of next support at 1,642, it said.

“The analysis of overall market action on Jan 3 revealed that buying power was weaker than selling pressure.

“As such, the FBMKLCI would likely trade below the 1,666.22 level on Jan 4,” said AllianceDBS Research.

Based on corporate announcements and news flow yesterday, stocks in focus today may include the following: UMW Holdings Bhd, Star Media Group Bhd, Ecobuilt Holdings Bhd, Unisem (M) Bhd, Kejuruteraan Asastera Bhd, Ahmad Zaki Resources Bhd, AMMB Holdings Bhd, S P Setia Bhd and United Malacca Bhd.

 

[lampor_2003]

MRCB, FGV Holdings, Sapura Energy, AirAsia Group, S P Setia, Tex Cycle and Eduspec
Supriya Surendran
/
theedgemarkets.com

January 28, 2019 23:30 pm +08


-A+A
KUALA LUMPUR (Jan 28): Based on corporate announcements and news flow today, companies in focus on Tuesday (Jan 29) may include: Malaysian Resources Corp Bhd, FGV Holdings Bhd, Sapura Energy Bhd, AirAsia Group Bhd, S P Setia Bhd, Tex Cycle (M) Bhd and Eduspec Holdings Bhd.

Malaysian Resources Corp Bhd (MRCB) said it has received a letter of acceptance from Projek Lintasan Kota Holdings Sdn Bhd for its offer to undertake Package CA2 of the Sungai Besi-Ulu Kelang Elevated Expressway (SUKE) project for RM323 million.

The letter of acceptance was received by MRCB Builders Sdn Bhd, a wholly-owned subsidiary of MRCB.

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The completion date of the project is April 3, 2020, 14 months from the date of site possession on Feb 4.

"The project is expected to contribute positively to the earnings of MRCB for the financial years 2019 and 2020," the group added.

FGV Holdings Bhd has teamed up with South Korea-listed Samyang Foods Co Ltd to establish a halal ramen manufacturing facility in Malaysia for local and global markets.

The collaboration is part of the group's strategic direction to expand its downstream business via wholly-owned subsidiary Delima Oil Products Sdn Bhd, by diversifying its product offerings and penetrating into new markets.

FGV said it has signed a Memorandum of Understanding with Samyang Foods to explore the opportunity for both parties to establish the halal ramen and instant noodle manufacturing plant in Malaysia.

Sapura Energy Bhd’s shareholders have approved the group’s joint venture with OMV Aktiengesellschaft, which will see OMV purchasing a 50% stake in Sapura Upstream Sdn Bhd for total proceeds of US$975 million (RM4 billion).

Met by reporters at the extraordinary general meeting, Sapura Energy president and group chief executive officer Tan Sri Shahril Shamsuddin also said that the under-subscription of its rights issue exercise was due to the cloudy conditions in the market at the time, which had affected investors' sentiment.

Despite the under-subscription, he said the group still managed to secure the money which will go towards paring down its debt level.

AirAsia Group Bhd said its Malaysian, Indonesian and Philippine operations carried 16% more passengers at 12.11 million in the fourth quarter ended Dec 31, 2018 (4Q18) from 10.44 million a year ago.

AirAsia said available seat per kilometre (ASK) in 4Q18 rose 14% year-on-year (y-o-y). However, passenger load factor fell 4 percentage points (ppts) to 84% as a result of a significant increase in capacity by 21% y-o-y.

For 2018 as a whole, total passengers handled by AirAsia's Malaysian, Indonesian and Philippine operations increased 14% to 66.26 million passengers from 58.31 million in 2017. ASK rose 14%, while load factor fell 3 ppts to 85%.

S P Setia Bhd has completed the issuance of RM358.1 million worth of Islamic medium-term notes to part finance the purchase of a project land in Semenyih, Selangor.

The notes were issued under an unrated sukuk programme by its wholly-owned subsidiary KL East Sdn Bhd

Tex Cycle (M) Bhd said the commencement of feed-in-tariff for its renewable electrical energy power plant in Selangor has been delayed once again.

This is because the group is still waiting for the initial operation date (IOD) from the relevant authorities.

To recap, Tex Cycle had received the greenlight from the Sustainable Energy Development Authority Malaysia (SEDA) to build and operate the power plant, which will have a capacity to supply two megawatt per hour of electricity to Tenaga Nasional Bhd.

The IOD was initially set for Dec 7, 2017, with the commencement of the feed-in tariff on Jan 28, 2018. Subsequently the IOD was pushed to Dec 7, 2018, and the commencement of the feed-in tariff to Jan 21, 2019.

Eduspec Holdings Bhd has fixed the issue price of its proposed private placement shares at two sen apiece.

The placement’s underwriter Kenanga Investment Bank said the price of two sen per share constitutes a discount of 8.26% to its five-day volume weighted average price of 2.18 sen as at Jan 25.

The private placement, proposed on Sept 6 last year, comprises 138.45 million shares, constituting 10% of the group’s total share capital of one billion shares.