Bursa KL: Alliance Financial Group Bhd is set to distribute a dividend record for FY12 to March 31 due to its strong performance year-to-date

“In view of the strong Alliance Bank group performance. year to date, the board had recently announced a second interim dividend of 7.7 sen per share, is payable on February 28. This makes the total dividend to 13.3 sen, which is a significant improvement compared to the dividend last year of seven sen, “said CEO Sng Seow Wah in a statement.

The company yesterday announced its results for 3QFY12 ended Dec. 31.

profits net rose 9% to RM121.3 million from RM111.3 million a year earlier, while revenue rose 9.3% to RM311.4 million from RM284.9 million . Net assets per share stood at RM2.39 compared to RM2.17 a year ago.

For the nine months, net profit rose 14.7% to RM371.8 million from RM324.3 million in the previous corresponding period, with earnings per share increased from 21.2 sen to 24.4 sen.

Revenue rose 9% to RM935.8 million from RM858.2 million. The improvement was attributed to strong growth in noninterest income, Islamic banking and lower impairment charges.

The banking group said that the contribution of noninterest income grew to 26.1% for the nine months of 21% a year earlier, and its medium-term objective is to raise this to 30 %.

Interest income rose 11% due to a 11.5% expansion in gross lending, which was supported by growth in consumer loans and small and medium enterprises (SMEs) .

Consumer loans, which represents 53% of its total loans, grew by 4.9% in the back of higher disbursements of loans for housing. SME loans expanded by 14.7% due to growth in working capital and trade finance. In addition, customer deposits grew by 9.2% yoy to RM30.6 billion at end of December. Your loan-deposit stood at 78.9%, which the company claims is the lowest in the industry.

“The group cost-to-income ratio remains at 46.5% in late December 2011, which is a reflection of current strategic initiatives cost management,” said SNG.

“Although we continue to focus on existing business opportunities in consumer banking and business banking, we are also strengthening our treasury, transaction banking and asset management capabilities. We are confident business strategies being implemented will allow the Alliance to build a successful banking franchise and generate a sustainable financial performance in the long term and provide value added services to our customers, “he said.

banking group last year posted a record net profit of RM409 million, with earnings per share increased to 26.7 sen from 19.7 sen last year. Alliance

ended four sen lower at RM3.75 yesterday, with 3.23 million shares traded.

XML Posted Bursa Malaysia News, February 22, 2012.

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games Keep /> overweight: Three main topics are expected to account for the prominence of the game in 2012: (i) Genting companies outside the group, (ii) the ongoing battle the two integrated resorts in Singapore ‘for market share and the implications for Genting Resorts World, and (iii) the political risk of the general elections in Malaysia.

easing concerns about the debt crisis Eurozone and the return of risk appetite bode well for cyclical stocks, such as games. We continue to “overweight” in the industry, but change our selection top Genting Bhd (Genting) as Genting Bhd of Malaysia downgrade to “neutral” because their ratings are not binding. The actions of the game in Malaysia under our coverage, only Genting, our top pick in 2011, surpassed as they basked in the glow of the revenues of defense and global expansion. Berjaya Sports Toto Bhd (BToto) and Genting failed to impress with their stock prices largely tracking the KLCI.

game Malaysian companies are becoming more diversified geographically. The Genting Group has a strong position in Malaysia, Singapore and the United Kingdom, and is expanding in the U.S.. In the letters is to build Genting U.S. $ 4 billion (RM12.2 billion) in Malaysia mixed-use development in New York and a complex of EUR 120 million (RM578 million) as part of Solihull in the UK.

Talks on its joint venture in Vietnam could be revived. But with the recent regulatory checkpoint in Miami, Florida, we see few catalysts income in the short term could lead to a share price re-rating over 2011 after its outperformance. While there may be new developments on the New York World Resorts and its planned project in Solihull, the significant contributions of earnings is unlikely to come into play until 2014. We recommend a change to Genting.

Genting is a cheaper play the game indirect regional and tourism center in Singapore. Genting Malaysia has great appeal defense gains in volatile times. Your investment proposal is in its gradual transformation into a formidable global player game. BToto provides robust gross dividend yields of 7% to 8%. The release of their 4D + Jackpot game puts you in a more level playing field with multi-purpose Holdings Bhd Magnum. – CIMB Research, February 17

Posted XML Bursa Malaysia News, February 20, 2012.

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Bursa KL: (BNM) Bank Negara Malaysia responsible lending guidelines have come at a time when the automotive industry is experiencing a softening market. Buyers of low-income and low-end manufacturers are expected to be the most affected.

Keat Hin Lim, vice president of Bursa KL and Selangor Car Dealers and Credit Companies Association, told Bursa Malaysia News “I think that Bank Negara is trying to do good but the policy should be phased to allow time for the market to react and absorb change. The recent policy change is a great shock to a market that has declined in the last six months. ”

A banker from a local bank told Bursa Malaysia News, “We expect the new car loans by 2012 to reduce by 10% of the industry, with a 5% slowdown in the high-end market and 20% for domestic manufacturers. ”

“The cheaper brands such as Proton and Perodua and the second hand market will be hit harder than a larger proportion of buyers in this market are no longer eligible for loans,” said Lim.

“The market segment of high-end will be less affected than most of the buyers are able to afford cars anyway. The mid-range market will feel only a slight effect on the Most buyers in this segment are the middle income group and are usually very cautious with their spending, “he added.

Lim said the automotive industry may lose access to most buyers in the public service sector. Government officials may be eligible for loans based on their gross income, but many do not eligibility requirements that the new BNM has implemented to limit their terms of debt service by 60%.

“While on paper it may appear that public officials who are in the low income group may have trouble financing their auto loans, have historically been very good borrowers. This is because have often stated secondary income to supplement the funding of loans. also have a very stable job so this demographic group creates very few non-performing loans (NPL), “said Lim.

There are over 1.2 million workers in the public sector. Lim said buying affordable cars in low-end markets and second hand.

Maghfur Ahmad, an analyst at OSK Research is bearish in the automotive sector. “Proton and Perodua will be most exposed to the new regulations of NMB. On the basis of recent statements Perodua, we expect sales of the two local automakers to be pretty flat,” he said.

According to Ahmad, PERUSAHAAN Otomobil Kedua Sdn Bhd (Perodua) and Proton Holdings Bhd, respectively, 30% and 26.4% of the automotive market ahead of UMW Toyota Motor with 15 , 2%. New car sales are expected to increase 1.1% to 606,000 units by 2012 compared with a decrease of 0.9% from 605,000 to 599,800 units from 2010 to 2011.

Dealers are cautious. Manufacturers often tend to increase their stocks during the Chinese New Year celebration but this year was 20% less and the minimum in some cases, “said Lim.

He added that this will a negative impact on new car sales as 70% of the sales in question affects trade-ins.

“If distributors are more cautious, they will offer lower prices for trade automobiles. This means that new car buyers may have to pay more money to finance a new car. This may cause some of them to delay the marketing of their current models, “said Lim.

According to the banker, the slowdown in new auto loans is not simply to borrowers no longer be eligible for loans, but new guidelines requiring more documentation of customers which slows down the application process.

“For example, BNM has insisted that applicants provide an entry document. Previously, banks sometimes borrow looking at the type of car and regardless of the loan, “said the banker.

” BNM does not specify a ratio of debt service (RSD). We have adjusted our DSR, so that the cash requirement is the same as the loans are based on gross income, “he said.

In this sense, the general director Datuk Rashid Salleh Perodua aminating the last week showed that new car registrations in January fell 15% to 20%, while new orders fell 5% due to tighter credit conditions. aminating had asked BNM to ease loan requirements more stringent.

Lim BNM is expected to review the policy sometime this year and spread the changes over several years to prevent a fall in the sector.

Ahmad said BNM may reverse its policy, saying: “There is no speculative buying in the automotive sector as opposed to the property, so that there is an urgent need to increase lending.”

BNM said in a statement that the responsible lending guidelines intended to ensure prudent business practices, accountable and transparent funding rather than having a negative impact on demand.

“The guidelines will ensure that loans are only offered to customers who can pay their fees over the loan tenure to prevent people from becoming over-indebted, “said BNM.

The same banker said defaults on car loans was on the downward trend to 1.2% in 2011 and it expects delinquencies to remain flat in 2012.

“I do not feel that the guidelines are excessive . Of course, those affected to express their grievances, as developers and manufacturers of automobiles. However, I believe that the guidelines are necessary, “said the banker.

Posted XML Bursa Malaysia News, February 20, 2012.

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Bursa KL: Some companies hard hit by monsoon rains and floods that inundated some 1,500 industrial facilities throughout Thailand from October to December last year will be here next month to the source to find suitable sites to relocate their facilities
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Tharmalingam Kumar, director general of Malaysia Property Inc (MPI), revealed that at least 25 companies whose factories and manufacturing operations in Thailand has been severely affected by recent flooding will be visiting Malaysia to look at potential industrial sites for their operations.

Kumar was speaking at a seminar organized jointly by the Real Estate and Housing Developers Association Malaysia (Rehda) and MPI entitled “How to sell real estate in Malaysia at the international level.”

“Most of Thailand is only two meters above sea level. Understanding that, the management of these companies do not plan to run the risk of more flooding. come in the next month to discuss suitable sites for their factories, “said Kumar, adding that his focus is on the northern regions of Peninsular Malaysia, as Kedah and Penang.

The flood, reported the worst in the land of smiles had experienced in the past 70 years, resulting in nearly 700 deaths and caused around 1.3 trillion baht (RM127.8 million ) in losses to the economy, said Thai Prime Minister Shinawatra Yingluck in early December.

Kumar shared that there are still many untapped opportunities in the region. “We are located in the heart of Southeast Asia and we are safe from natural disasters. True to compete with Singapore to persuade multinational companies to establish their headquarters here is a shot time, instead we can focus on marketing of ourselves as an ideal place for companies to establish their back-end operations and logistics center. ”

MPI is also in talks with several Japanese developers who are interested in having joint ventures with local developers to build houses of Japanese style in Malaysia for Japanese buyers. “Ideally, this group is looking at areas within Klang Valley and Iskandar Malaysia,” says Kumar.

While investors from Korea, Japan, Singapore, UAE and Qatar have remained strong interest in local properties, Kumar said investors from emerging economies like China, India and Indonesia have also been putting huge amounts of money in homes in the region, whether for investment, retirement or vacation home.

Another speaker at the seminar Kho Gerard, president of Reapfield Properties Sdn Bhd, said that external factors, such as issuing eurozone sovereign debt, disruptions in global supply chain as a result Japan’s direct earthquake and tsunami, rising global inflation, together with internal factors such as bank credit tightening, will result in a property market generally weaker this year.

“Domestic demand will be the engine for economic growth in Malaysia because of policies such as the Economic Transformation Program,” he said, adding that other factors such as RM6 billion stimulus package special through the Private Finance Initiative will boost construction while tax incentives offered to tenants who agree to locate in the International Financial Centre Kuala Lumpur (DTZ) will help drive the market.

This article was published on the Property, Bursa Malaysia News, February 17, 2012.

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Hartalega Holdings Bhd /> (Feb 15, RM7.92)
Keep buying the review RM8.26 target price of RM9.60 (RM7.33 from): the price of the shares of Hartalega has increased by 41% year to date (YTD), after a performance share price largely flat in 2011. We have long advocated Hartalega by its solid fundamentals, higher income before operating profit (EBIT) interest and tax margin of about 30%, and its operation and efficiency of high technology. We believe that the re-rating has been driven by several factors. First, the natural rubber price has plummeted by up to 42% from its peak of RM10.93 per kg in April 2011, the revival of investor interest in the sector. The sharp fall was due to: (i) the end of the wintering period in May 2011, and (ii) a significantly weaker growth in car sales in China (2011 passenger car sales growth of 3% compared with 32 % in 2010). Along with a sequential revenue growth visibly stronger and margin expansion in the November 2011 round of results, the stock prices of rubber glove manufacturers have increased by 28% to 81% from its lows – Hartalega increased by 59%

Since reaching a low of RM6.30 per kg on January 10, the natural rubber price has rebounded by 23% to RM7.76 per kg today due to: (i) initiation of the wintering period (a seasonal factor), and (ii) the recent U.S. plan $ 477 million (RM1.5 billion) government intervention to support Thai rubber prices (the impact of what we believe to be temporary given the continued weakness in global demand for rubber). Meanwhile, the price of latex, nitrile has moderated to around U.S. $ 1,400 U.S. $ 1,500 per ton, up 35% from its peak in August 2011. Hartalega Management also indicated that the nitrile demand remains strong. Therefore, we believe investors have changed Hartalega to maintain exposure to the sector of rubber gloves, while reducing vulnerability to volatile prices of natural latex.

Despite the rise in share price, we think there is still more upside. Since late 2011, 2012 Hartalega of price-earnings (PER) has re-evaluated four times (nine times to 13 times), but is still trading at a discount of 31% at three years of Top Glove Corporation Bhd The average PER feed 19 times. This is regardless of: (i) is higher Hartalega average EBIT margin of around 30% versus 11% for the glove up, and (ii) the increasing share of net profit sector (27% in 2010 compared to 24% in 2008). In addition, provision is absolute Hartalega 2011 a net profit of RM201.1 million not only exceeding the net benefits of Top Glove (RM123.2 million), but also the Rubber Industries Bhd and Supermax Kossan Corp Bhd factor in his return much higher in equity (36% to 45% against 10% to 20% of their peers), and we believe that the current gap of 2012 PER of seven times above the glove is not justified. We reduce our discount to the average PER Top Glove from 37% to 20% (taking into account Top Glove is increased annual production capacity of 37 million dollars against nine billion pieces Hartalega). Our goal for 2012 is raised to 15 times (above 12 times) and with that, our target price rises to RM9.60 (previously RM7.33). We maintain our ‘buy’ calls. The main risks to our view are: (i) an increase in the price of latex, nitrile, (ii) slower than expected demand for nitrile gloves, and (iii) significant margin erosion increased competition. – IB Affin Research, February 15

Posted XML Bursa Malaysia News, February 16, 2012.

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Kencana Petroleum Bhd /> (14 February, RM3.16)
Maintain buy with a price target of 0.66 RM3 revised RM3.65: Kencana remains our conviction of the top “buy” in the oil and gas sector by 2012.

On a standalone basis, Kencana is an action with the visibility of corporate profits and provides the best exposure to Petroliam Nasional Bhd internal capital expenditure program in the field of manufacturing, drilling and marginal / enhanced oil recovery (EOR) projects.

We Sapura Crest Petroleum Kencana (Newco) is likely to be presented at the FBM KLCI 30 come the next review in June 2012, a positive result in our opinion, the development of an interest and higher grades.

Our revised price target of RM3.66 marginally offers up 15% from current levels.

We Kencana could be a big winner at the Petronas jobs, ahead of its domestic law, between pairs of Malaysia Marine and Heavy Engineering Holdings Bhd (“hold”, target price [TP]: RM5.70), and has the advantage of having a large yard space to take more jobs. It is in the enviable position of being able to seize most of Petronas Bhd Carigali, Hess, Nippon Oil and Murphy projects the platform. We estimate that the total domestic orders worth up to RM5 billion this year.

ensure project Kencana RM2 million in earnings from work (+100% year-on-year) in 2012.

The construction of two new platforms assisted bidding – total estimated cost of U.S. $ 400 million (RM1.2 billion) – is underway with targeted delivery in 1Q14 and 4Q13.

This is in anticipation of strong domestic drilling requirements in 2013/14. With a rise in the marginal fields program or EOR, the demand for floating solutions (mobile unit offshore production) is equally strong.

Kencana could benefit from this as it has got two old jack-up for conversion. The probability of fixing contracts is high.

We have raised FY14 forecast of 8%, taking into account the partial contribution of the KM-2 platform. The greatest growth is visible from FY15 onwards, as Kencana fully recognize the contributions of two new platforms (KM-2, KM-3) and, potentially, two Mopus well.

Meanwhile, the plan of Newco to the list is on track to meet the deadline of April. Shareholders will receive 1.26 shares of Newco Kencana plus 48.6 sen per share in cash. Based on our TP Newco RM2.52 (20 times 2013 earnings per share), derives a TP of RM3.66 of Kencana. – Maybank IB Research, February 14

Posted XML Bursa Malaysia News, February 15, 2012.

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Low Ngee Tong

, CEO of ASX-listed OM Holdings, food dishes for your guests during lunch at a restaurant in China Swim Club, and talks about his plans for a Lunar New Year dinner at home. “We’ll have steamboat” he says. “I need the chicken bones and six packages of ribs to make the soup base. I want to cut the abalone myself.”

On the first day of Lunar New Year, the market learned she had cooked under more than a sumptuous meal at home. OM Holdings, which produces manganese, announced the placement of 75 million new shares, 50 million of them listed on SGX for Boustead Singapore to raise about $ 26 million (RM84.5 million) to be used to fund a ferroalloy smelter in Sarawak. Boustead will own 8.6% of OM Holdings enlargement. And, as the development of OM Holdings casting gets underway, people familiar with the company say they are seeking a secondary listing in Malaysia or Singapore.

A mechanical engineer educated in Chinese with a gap-toothed smile, Bass, 56, started in the business of manganese, a trader in the 1980s, working for Intraco, where he worked mainly Chinese customers. Later he worked in Hong Kong for C Itoh, now known as Itochu. In 1992, Eastern Minerals established in Hong Kong with a former colleague of C Itoh. Two years later, the partners separated. Minor says this was because he wanted to go up in production and mining, while his partner wanted to focus on trade.

In fact, Eastern Minerals came to possess the manganese castings for the first time in northern China and then in Qinzhou, a port in the province of Guangxi. In 1998, OM Holdings became listed on ASX and as trade and manganese smelter. Then it expanded at an earlier stage in the exploration and mining. In 2001, he discovered the Bootu Creek mine in the Northern Territory of Australia, 100 km from the nearest human settlement. Bootu Creek Mine is now the third largest manganese mine in Australia. In 2010, OM Holdings expanded its exploration business, acquiring an indirect stake of 13% in Borwa Tshipi mine in South Africa, scheduled to begin production in 2HFY12.

Manganese is used in the production of iron and steel as well as an aluminum alloy agent and batteries. “This is a fundamental good business because the steel can be recycled, but not ferroalloys,” says Low. “Applications of manganese are widening. Today is used in stainless steel as well.”

Now, Baja is making a bold bid for a bigger slice of the sector ahead of manganese construction of a large smelter in Sarawak manganese, taking advantage of cheap and abundant electricity in the eastern state of Malaysia has been possible thanks to the proposed controversial Bakun hydroelectricity. Ferroalloys usually come from countries where mineral resources are found or where the energy is subsidized, as South Africa, China, Russia and Ukraine, under, he says, but rates are increasing energy in these countries, increasing intermediate costs of production. Electricity represents 40% to 60% of the cost of production of ferroalloys. With a highly competitive smelter cost in Sarawak, low esteem OM Holdings will be able to steal a march on its competitors.

“Sarawak is the best place in the world of a foundry, in terms of power and location. Bootu Creek is near, so that synergy is enormous,” he said under the edge of Singapore. Moreover, 65% of world steel production is concentrated in Asia, and many steelmakers are increasingly uncomfortable dependence on China for the supply of ferroalloys, he adds. That puts OM Holdings well positioned to emerge as a major supplier of ferroalloys to regional steel producers such as South Korea’s Posco and JFE Steel Corp. of Japan, who are already customers.

OM holdings is among the first six or seven integrated producers of manganese in the world. By 2014, when Sarawak smelter is scheduled to begin production, and Borwa Tshipi mine is in full swing, OM Holdings will rise to about third or fourth floor, he says.

However, achieving this is easier said than done. On the one hand, the foundry floor wants to build in Sarawak calls for an investment of U.S. $ 502 million (RM1.5 billion), almost 2 ½ times OM Holdings market capitalization of U.S. $ 191 million. Worse, the market value of OM Holdings has been declining over the past three years by the more cautious tone of the market, prices weakened manganese as well as operational hiccups Bootu Creek Mine. OM Holdings intends to report a loss of U.S. $ 12 million in 2011 as a result of falling prices of manganese ore and the strong Australian dollar.

is low to attempt a leap too far? How will you meet massive funding for the project from melting of the earth? Does the risk of paying?

Lure of Sarawak
OM Holdings is building the smelter in Sarawak, a 80:20 joint venture with industry Samalaju, a unit of Bursa Malaysia, which is listed in Cahya Mata Sarawak, a company linked to the family of long ago Chief Minister Taib Mahmud Tan Sri Abdul. The project is expected to be 70% financed with debt. Therefore, the rate of OM Holdings of capital investment approaching U.S. $ 120.5 million. Even after raising $ 26 million placing of new shares, holdings of OM still have to find a more than A $ 87 million.

OM Holdings says it is targeting the completion of its current fundraising for the Sarawak project by the end of April, with a focus on minimizing dilution to existing shareholders. People familiar with the company say that options are a rights issue or a convertible bond issue.

Meanwhile, Low has been working to reduce project risk. Last month, JFE Steel signed a binding term sheet to make up to 100,000 tons of ferrosilicon produced by one of the three plants that make up the smelter in Sarawak. Through its unit JFE Shoji Trade Corp, the Japanese steel maker will invest between U.S. $ 30 million and $ U.S. 40 million for a 30% to 40% in the plant, which will be its exclusive supplier. The entire project will produce 600,000 tonnes of ferro-silicon and silico-manganese. OM holdings currently produces 70,000 tons of high carbon ferro-manganese.

On February 02, OM Holdings also locked in a long-term energy agreement to supply the smelter, by signing a purchase agreement for 500MW power for 20 years with Sarawak Energy . OM Holdings officials refused to disclose fees paid by the Company under the agreement, but is believed to be half of what you pay for electricity in China. Malaysian Prime Minister Datuk Seri Najib Razak said last year that in Sarawak Hydro, the project developer and manager of Bakun hydroelectric power, which sells power at 6.25 sen per kWh, an increase of 1.25 % annually, Sarawak Energy, which in turn distributes it to consumers.

Todd Scott, an analyst at RBS, said in a research note on Nov. 10 that the management of OM Holdings is the estimated rate of return on investment of 30%, with a net present value (NPV) of the U.S. $ 667 million based on a project cost of U.S. $ 502 million. Even so, obtaining financing for such a large project can be a difficult task for OM Holdings adds. “In light of the current availability of credit tightness in international markets, we believe that the achievement of a 70:30 debt-equity split to be a challenge.”

OM Holdings will have the burden to finance investment in the face of tougher credit conditions? Or, will eventually become the company a takeover target amid the ongoing consolidation in the commodity sector?

Hostile Takeover
Low has received more than one bid for OM Holdings in recent years. At the height of the commodity craze, before the global credit crisis, he was approached by Australia’s BHP Billiton mining giant, but rejected suggestions. Then in 2008, he faced the possibility of a hostile takeover by Consolidated Minerals Consmin), which acquired 11.35% of the holdings of OM, leading the population to a record high of $ 2.81 in July of that year. “We had no idea what was happening,” says Low. “Suddenly, in November, we received a letter from Consmin saying:” We are a 11.35% shareholder. ” “

Consmin, which is the second largest manganese mine in Australia, had fallen under the grip billionaire Gennadiy Bogolyubov Ukrainian in January 2008. A co-founder of Grupo Infra, one of the empires most powerful business in Ukraine, Bogolyubov was trying to consolidate its position in the global supply of manganese, the acquisition of ferroalloy plants at their own Privat before going after mining assets in Africa and Australia. His plan was to join guarding Consmin OM, low, he says, that would have given significant control over the production of manganese in Australia.

As it happened, things started to crumble Bogolyubov little later, when the financial crisis hit and prices product was in a tailspin, pulling down shares in OM holdings. While Bogolyubov plans to merge the two companies were aborted, it has been a thorn in the low side since. On the one hand, blocked the plans of the OM holdings of a dual listing in Hong Kong last year, seeing it as an attempt to dilute its stake in the company. In April, Consmin took several half-page ads in newspapers in Singapore to seek shareholder support for its action . This was followed in August with an attempt to eliminate the low and independent director Tan Peng Chin.

Meanwhile, Low said he wanted the dual listing in order to access a capital market closer to customers OM Holdings in China, Japan and South Korea. Consmin not respond to the request by Singapore to Edge for comment.

In any case, the attempt to dislodge OM Bogolyubov holdings not lower, with 74% of the votes cast in favor of the latter. Minor and his wife collectively own 19% of the company. This good result could deter Bogolyubov to intervene again, some people familiar with OM Holdings said. In fact, during a trip to Australia last September, Ukrainian low profile, living in London, reportedly said it would sell its holdings in OM, if the company has improved its corporate governance .

hard sell to investors
So far, no objections have come from Consmin on the placement of OM Boustead Holdings of shares to Singapore and other investors. The sale of new shares to Boustead Singapore is technically an interested party transaction needs the approval of the shareholders of OM Holdings. That’s because Boustead Singapore’s President and Chief Fong Wong I was a member of the Board of OM Holdings to December.

also remains to be seen how he reacts if Consmin OM Holdings is a rights issue to raise more money for investment in Sarawak smelter. Will you take your right to rights actions ? Or, allow your participation is diluted? And, do you try to block any move by the possession of OM to seek a dual listing in Malaysia or Singapore, which market watchers say it is in the works? “OM Holdings is investing U.S. $ 502 million in the region. It makes sense to try to find a dual listing in Singapore or Malaysia to reach investors here, “a source familiar with the company.

Low says he is more focused on ensuring that performs well enough OM Holdings to attract investors to worry about what could Consmin and Bogolyubov in the case of a financial capital funds or dual listing plan that has not even been officially discussed. “The next six months, I will focus on project financing and bringing the production Tshipi “he says.

could face an uphill battle in making investors back into action, however. Scott, says RBS a research note on Jan. 19 that the OM holdings faces headwinds on multiple fronts. Bootu Creek Mine production fell for the second consecutive quarter recently a court case pending regarding damage to a sacred Aboriginal and manganese prices for January delivery fell.

The way Scott sees it, the revised strategy of mining OM Holdings in 2012 to focus solely on high degree of pre-peeled areas only offer a temporary relief to their profitability. Ultimately, operating costs will rise again, and the company’s margins are squeezed, unless manganese prices recover. “We maintain our” sell “recommendation on the basis of a revised target price based VPN 36 cents Australia, “says Scott in his report. Shares of OM Holdings were reduced by 75% last year to 38 cents in Australia today.

Low insists that OM Holdings is the right way, though. In your opinion, is just a matter of time before prices recover manganese, as electricity costs are rising in China. And, he has been in business long enough manganese to have confidence in their strategy. “I tell people not to enjoy a dish best served well,” says Low, who intends to make the best prawn mee in Singapore. “I like doing things myself. I like being the chef “-. From Edge Singapore

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Bursa KL:. Shares in Bursa Malaysia may extend gains this week with analysts saying the act is still in the early stages, while no negative surprises waiting for October to December 2011, financial results

However, Greece will have a key determinant of the extent of the run as investors await the outcome of the agreement of the country’s debt.

The package must also identify additional € 325 million (RM1.3 billion) in spending reductions by Wednesday and a strong commitment from all parties to implement reforms. All this is necessary if the EU and the IMF are to launch a € 130 billion rescue.

Analysts said foreign funds have been the positioning of the release of funds could boost regional markets higher. They hope that some of the rescue fund to trickle down to the equity markets.

EPFR Global said the risk appetite for emerging funds accelerated in the first week of February, as investors stepped up their search for higher returns.

He said the Emerging Markets Bond funds pulled in an impressive U.S. $ 2140 million (RM6.5 billion), while Emerging Markets Equity Funds absorb a high of 68 weeks of the U.S. $ 5.8 billion.

“which had its year to date amounts to U.S. $ 3.8 billion and U.S. $ 17 billion, respectively, compared with inflows of U.S. . States. $ 2.7 billion and outflows of U.S. $ 11.4 billion for the comparable period last year, “she said.

As for Malaysia, they expect the market to continue the upward trend and strong volume to expand.

“There is no reason to pull back. People are warming and the rally is still in its early phase. As 4Q results, do not expect any negative surprises,” said a analyst.

Affin Investment Bank head of retail research Dr Nazri Khan forecast that any break above the 1565 mark (the peak in late July 2011) that would pave the way for the continuation of rising to a record high of 1,597 FBM KLCI level.

“We believe that the current strength as healthy as the support of three offensive cyclical sectors exceeding the local landmark (technology, construction and plantations increased from 22%, 11% and 9 % respectively, compared to 3% increase KLCI year-to-date).

“strongest offensive sectors that usually suggests the bulls have the upper hand with markets that include an increased risk appetite . In general, we see that the local stock market remains in a strong uptrend supported by lower volatility found in the lowest since July 2011 (as reflected in the 20-day average true range), which reaffirms our review of a significant increase in the flow of funds and the purchase of pressure, “he said.

However, Nazri advised investors to keep an eye on the gap of the previous week (1.526 to 1.521 level of support) and any break below this gap would be a sign of increased selling pressure and possibly the beginning of a period of correction.

Today is day 3 of solution T as the increase in trading volume on Wednesday to 4.39 million shares, the second highest on record after the 4.78 million units traded in the February 22, 2007.

actions to watch include Naim Indah Corp Bhd, Tebrau Teguh BHD, BHD GAMUDA, MMC Corp Bhd, CSC Steel Holdings Bhd and London Biscuits Bhd (Lonbisco).

Naim Indah proposal to acquire 60% in Sagajuta Bhd. (Sabah) Sdn by an indicative price of RM240 million Generasi Cipta Sdn Bhd

intends to acquire the remaining 40% stake in Sagajuta that is not owned by Generasi Cipta in same conditions as agreed between Nicorp and Generasi Cipta.

Naim Indah carry out a proposed par value reduction of 20 sensors each ordinary share of 10 sensors in which the credit of RM70.2 million from the nominal value reduction will be offset by the unaudited accumulated losses of RM64.6 million the company to 30 September 2011.

also proposed in the inalienable rights issue on the basis of action rights for 10 sen a piece with a share of entitlement for each existing share with two free orders after the proposed par value reduction.

Naim Indah proposed a private placement of 300 million Naim Indah new shares of 10 sen each to investors to be identified, with two free warrants for every share placement after the proposed par value reduction.

Tebrau Teguh increased by 8, 5 sen sen to 89 in active trade, which is 13 sensors above the offer price of 76 sen Holdings Bhd made by Iskandar Waterfront (IWH) when it acquired 33.15% stake in Johor government investment, the Kumpulan Prasarana Rakykat arm Johor in Tebrau Teguh.

steel CSC reported losses of RM2.06 million in the fourth quarter ended December 31, 2011, compared with a net profit of RM8.56 million a year ago due to lower sales volume of its steel products.

Its revenue rose 7% to RM276.9 million RM258.7 million a year ago. Loss per share was 0 , 55 sen compared to earnings per share of 2.29 sen.

Lonbisco has proposed placing 29.37 million new shares at an issue price of RM1 per share indicative to raise up to RM29.37 million , of which approximately 50% would be used to repay loans.

Lonbisco said the actions of placement could represent up to 24.35% of its paid-up share capital and placed to investors be identified later.

Hubline Bhd has set the issue price for private placement of 20 million new shares, along with 30 million warrants at 20 sen for further action.

The issue price was a premium of 100% five-day volume weighted average market price of the shares of Hubline up to and including Thursday, 10 sensors per share Hubline.

Posted XML Bursa Malaysia News, February 13, 2012.

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Bursa KL:. The Supreme Court has established here May 30 for the lawyer Karpal Singh to enter his defense to a charge of seditious utter words against Sultan Azlan Shah of Perak in 2009

The judge set the date Azman Abdullah when the case came to the mention that yesterday after the Court of Appeals on Jan. 20 reversed the decision of the Supreme Court to absolve and dismiss the charge without calling for his defense.

Earlier, Karpal Singh, who was represented by Gobind Singh Deo attorney had requested a postponement of the hearing pending a Federal Court decision in his appeal of the court’s decision Appeals ordered him to enter his defense in the case.

Gobind told the court that the appeal was filed on January 26. He added that if the trial proceeded, Karpal to testify under oath.

On 20 January, a three-man bench of the Court of Appeals unanimously ordered Karpal to enter his defense to a charge of utter words against seditious Sultan Azlan during a press conference in 2009 .

The panel headed by Justice Datuk Ahmad Ma’arop with judges Datuk Clement Allan Skinner and Datuk Seri Mohamed Ali Apandi that make up a quorum, had set aside the decision of the Bursa Court Kuala Lumpur on June 11, 2010 to acquit and discharge the load Karpal without calling for his defense.

Karpal was charged with uttering seditious words against the Sultan of Perak in his law firm in Jalan Pudu Lama here between noon and 24:30 on February 6, 2009.

He was accused of removing said Mohammad Nizar Jamaluddin Datuk Seri as Perak Menteri kissed by the Sultan could be questioned in a court of law.

The charge under section 4 (1) (b) of the Sedition Act 1948 carries a maximum jail of 000 RM5, fine or three years imprisonment, or both, if convicted .

Deputy Public Prosecutor Noorin Badaruddin told the court the prosecution of 02 February had filed a motion to quash the appeal Karpal before the Federal Court, and that this would most likely be heard before the hearing May, Bernama reported.

In a statement after the ruling, DAP secretary general Lim Guan Eng urged the government to repeal the Sedition Act of 1948 to reform program of Prime Minister to make sense.

Description of the Sedition Act of 1948 as a draconian legislation passed by the British at the beginning of the communist insurgency of the Malayan Emergency (1948-1960), Lim said Prime Minister Datuk Seri Najib Razak must demonstrate its commitment to opening a new chapter of political and civil liberties for the Malays, repealing the law.

“The Sedition Act is maintained, Malaysians will never be able to enjoy the fundamental human right to freedom of expression enshrined in the Universal Declaration of Human Rights,” he said.

Under the English common law, a person can be guilty of sedition, if you pronounce the words that are likely to incite violence, riot or public disorder. However, under the Sedition Act, a person may be guilty of sedition even though there is no likelihood that the incitement of this kind, said Lim.

also noted that under the Sedition Act of 1948, a person may be guilty of sedition for saying things that are true and factual. According to the Court of Appeal, no matter what the words do not cause any adverse reaction or violence.

Posted XML Bursa Malaysia News, February 10, 2012.

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Bursa KL:. December 2011 The Industrial Production Index (IPI) surprised with a rise, increasing by 3% year on year (yoy) underpinned by a strong manufacturing sector and electricity production

Market consensus had expected in early December 2011, the IPI at 1.7% year on year, said MIDF Research chief economist Anthony Dass.

The Statistics Department attributed the strong IPI to increased manufacturing and electricity production of 4.5% and 3.1% yoy, respectively, despite mining output by 0.8% less than a year ago. Thus, the full-year 2011, the IPI rose 1.4% over the previous year.

“These figures are above expectations and we demonstrate that targeted domestic sector activity remains well despite what is happening in the world economy economy,” said Dass.

includes domestic activities led by consumer spending, construction and related primary exports, he added.

Dass believes that this would bring for the year 2011 the GDP to between 5% and 5.3%, adding that MIDF still maintains its forecast of 2012 GDP of between 4.8% and 5.5%.

Despite these positive developments, along with the slight improvement of 8.7% in the foreign trade of Malaysia, Dass said there is still a risk of a sharp slowdown in the global economy that can affect the growth of Malaysia.

The Ministry of International Trade and Industry yesterday, the foreign trade projected to grow between 5% and 6% due to slowing world trade from 6.9% in 2011 to 3.8 % in 2012.

Dass said that while the electronics and electrical sector remains weak demand for electronics can return and contribute to growth in the second half of 2012, if the U.S. economy continues to perform well.

The second half will also see a spike in the profits of raw materials such as MIDF has priced in a soft landing for China.

“Even On the external front, we believe that new orders are increasing, as reflected in a strong inventory restocking by a big jump in intermediate imports (which account for 65% of total import), “said Rahul Bajoria at Barclays Capital in a research note yesterday.

As Malaysia is the only major net exporter of raw materials in the region, the outlook for exports remains strong, Rahul said, adding that commodities account for over 30% of exports Malaysia.

Posted XML Bursa Malaysia News, February 10, 2012.

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Bursa KL: DRB-HICOM Bhd managing director Datuk Seri Mohd Group Khamil Jamil aborted speculation that a new CEO has been approved to lead Proton Holdings Bhd

“I have in my mind the formation of the new administration [proton], but for now I can not reveal [it], “he said.

Khamil said he was surprised when the media raised a certain name as the person to be appointed CEO and had been approved by DRB-HICOM.

“I’m not supporting anyone as CEO, however,” he told reporters at the signing of an international agreement of collaboration between Liverpool John Moores University and the University International Auto Show yesterday.

Last month, DRB-Hicom said the proposed acquisition of 42.74% shareholding in Khazanah Nasional Bhd Proton from RM1.3 million in cash and a mandatory general offer for shares of protons remaining RM5.50 a

Khamil said he had not yet seen the official Proton management to discuss the future of the national carmaker.

must complete the acquisition process before entering into the details regarding the future direction of Proton.

Asked whether shareholders respond positively to the offer, said Khamil have been complacent.

“They have expressed their support for our decision to take over Proton and I hope also that supports and agrees with our decision at the next EGM” he said.

As if DRB-Hicom to be rid of loss-making unit protons Lotus Group, said the company must have access and have to look at Lotus because it is an important part of protons.

without “We have to do calculations and make a decision evaluated,” he said, adding that he can not move the Lotus Group details of what Lotus is all about and how it can fit into the future plans of DRB-Hicom of.

DRB-Hicom’s plans underutilized proton Tanjung Malim plant, Khamil said there must be a rationalization rather than maximization.

“It’s easy to maximize capacity as we did in our car plant in Pekan, Pahang. But as a car manufacturer, not only have to look at maximizing the capacity, but also the production and manufacturing cars to suit Proton DNA, “he said.

Posted XML Bursa Malaysia News, February 10, 2012.

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Perwaja Holdings Bhd /> (08 February, 78.5 SEN)
Maintain fair value purchase RM1. 65: The Edge Weekly reported over the weekend that Malaysia Bhd. Rating Corp (MARC) has downgraded RM400 million Perwaja Steel Sdn Bhd of Murabahah medium-term notes (MMTN) program of AID to A -ID. The rating action affects RM160 million in bonds outstanding under the program, while the rating outlook is negative.

MARC said the rating action was due to the prolonged decrease of the steel in its operation. Given the Perwaja losses for two consecutive years, in addition to the poor results to date 9MFY11, the reduction was not a surprise.

We highlighted in our most recent updates to the basic fundamentals that underlie the steel mills in Malaysia are still weak, but several mega projects under the Economic Transformation Program (ETP) may stimulate demand for long steel despite the risks of implementation.

While the dim prospects for the industry will continue, Perwaja is building an iron pellet plant that is expected to increase the profitability of the direct reduction plant.

This would address their own needs for iron ore pellets, which are currently contracted with a substantial premium for iron ore fines.

We see the iron processing plant new production of 400,000 tons of iron ore pellets in FY12 and achieving a total savings of U.S. $ 50 (RM150) a tonne from the acquisition of local iron ore, benefits, logistics, home value-added activities and the use of tax credits relating to accumulated losses.

Undoubtedly, the iron mining industry in Malaysia is lucrative as the cost of production is likely to be below U.S. $ 50 per tonne compared with the international selling price above U.S. $ 140.

The news about the government’s request Perwaja Terengganu meeting to mine iron ore in Bukit Besi is not entirely unexpected, since it first announced its mentri kiss during the groundbreaking ceremony Perwaja delivery in July 2011, construction began pelletizing and concentration plant.

In addition, the MB reiterated last December that the state government “has given a space in Bukit Besi,” which represents a stronger commitment by you to assign a portion of the mining area Perwaja, as the MB previously only indicated that the state government was “willing to consent” to request the company to mine iron ore in Bukit Besi. The tone of the statements of MB suggests that the “official” award is imminent and the deal could be sealed in the short term.

In addition to the ongoing transformation, Perwaja is in the process of completing their proposed actions redeemable convertible unsecured loan (RCULS) with free detachable warrants, both on the basis of one to two.

After some delay, the next key date is the ex-date for the law, to establish in the coming weeks, as orders are scheduled to start operating later this month. We like the deal as RCULS not used by the minority shareholders shall be signed by its principal shareholder, KINSTEEL Bhd. In addition, the detachable nature of the warrants will allow all minority shareholders to enjoy the free orders.

We remain optimistic on Perwaja despite the downgrade by MARC. We believe that equity investors should keep a close eye on the ongoing transformation efforts undertaken by the administration as: (i) the implementation of the pellet and the concentration plant in 2012 is likely to result a significant cost savings to the U.S. $ 50 per tonne for the upstream material, and (ii) the award of the mining concession in Terengganu can also result in a blue sky valuation of cash flows of RM2.65 per share.

Other than that, we also like the company of the impending business proposal to raise funds by issuing RCULS as they come with free detachable warrants on the basis of one to two, which fixed to reward minority shareholders.

We maintain our ‘buy’ recommendation on Perwaja and its fair value at RM1.65. -. OSK Research , February 08

Posted XML Bursa Malaysia News, February 09, 2012

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/> (08 February, RM7.11)
Maintain performance below fair value RM6. 20: Management said the main goal is to find investors to complete the project of oil in Asia Hub in Johor. Until then, CIMB not put more money into it.

Most of the provisions made in 2010 and does not provide required at this juncture. Although the loan has not been fully established, the administration said that the necessary balance is not much, while the positive side of recovery could be pretty decent.

Return on equity (ROE) for 2011 will end in 16% to 17%, missing the target of 17%. Loan growth in 2011 was decent, while non-interest income (NII) was better than expected, especially considering that 2010 noninterest income was helped by mixed elements.

However, the administration also said the cost of credit was higher in 4QFY11 as the Group strengthened its limited liability company (LLC) (80% at the end of 3QFY11) by increasing individual assignments, But the credibility of the whole year would cost even below 40 basis points (9MFY11: 12 bps).

This helps support the observation of banking statistics December 2011 when he noted that the individual allocations of the system increased by 2.6% quarter over quarter, while it increased 338 basis points LLC quarterly. Full-year dividend payment will be within the range of 40% to 60% guided

For more details about 2012 prospects were given during the 4QFY11 results conference, but includes the lines: (i) loan growth should be decent.

There have been some pockets of activity in the Economic Transformation Program, while the space of domestic small and medium enterprises is an area of ​​CIMB is trying to return to a stabilization of economic conditions (ii) The net interest margin (NIM) for the year 2012 was largely stable at the level of 4QFY11, (iii) the channeling of non-interest income seems decent with the capital market debt would a good start (more bonds) and foreign exchange rates and are doing well, (iv) continued focus on cost control measures, especially the elimination of duplication. CIMB Goal is to reduce the entry cost (CIR) to 50% in 2013 (9MFY11: 56.2%), and (v) no major problems of asset quality in Malaysia and Indonesia, but delinquencies in Thailand could increase once the moratorium for borrowers affected by flooding over. This is unlikely to be too important at the group level.

We do not make changes to our earnings forecasts for the moment. The fair value of RM6.20 remains unchanged and is based on the mean values ​​of 10.5 times 2012 earnings per share and 1.7 times 2012 book value per share.

We remain cautious about global economic conditions ahead, and as banks are seen as indicators for the economy, we believe that banks will not be saved from a slowdown.

We see a higher risk of earnings that might result from CIMB allowances higher than expected loan impairment and the weaker than expected capital market activities. Therefore, it preserves our “underperform” call to action. – RHB Research Institute, February 08

Posted XML Bursa Malaysia News, February 09, 2012

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Bursa KL: Lembaga Tabung Angkatan Tentera (LTAT) posted a record profit of RM862.7 million for FY11 ended December 31. This results in an increase of 14.8% of the income of RM751.5 million FY10.

The Fund for the Armed Forces of Malaysia, said yesterday eligible members receive dividends and total premiums of 15% amounting to $ 14 million against RM680.4% in 2010.

“The payment includes the 7% dividend, 1% 7% bonus and special bonus in the form of mutual funds reflects a 10% increase in total payment compared to last year RM616.3 million, “she said.

The pension fund said on Dec. 31, total assets increased 5.3% to RM8 billion to RM7.6 billion in late 2010. Members of the contribution amounted to RM7.1 billion from RM6.7 billion in FY10.

Posted XML Bursa Malaysia News, February 9, 2012.

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Bursa KL: Bank Negara Malaysia (BNM) and Bank of China (PBOC) has renewed its currency swap agreement yesterday for an additional period of three years

central banks , said in a joint. the statement of the size was increased to 180 million yuan, or RM90 million.

The original agreement was sealed on February 8, 2009, with an initial size of 80 billion yuan, or RM40 billion.

“This agreement renewed currency trading further strengthen financial cooperation between the two economies and facilitate greater bilateral trade and investment,” he said.

Posted XML Bursa Malaysia News, February 09, 2012.

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Bursa KL: Genting Bhd of Malaysia, the AM stock fell nearly 5% yesterday after news that the Florida Legislature had postponed a vote on a bill to expand casino gambling in the state. However, analysts remain optimistic about the company, the prospects for OSA.

Genting Malaysia fell 4.99%, or sen, 20 to RM3.81 on a volume of 24.04 million shares, while his father, Genting Bhd, lost 4.55% or 50 sensors to close at RM10.50 with 12.48 million shares traded yesterday.

The postponement of the vote in the House of Florida, the AM of Representatives committee has stalled in Genting Malaysia, the PM plan to build a U.S. $ 3.8 billion (RM11.4 billion) 5200-room casino resort overlooking Miami’s Biscayne Bay AM.

But RHB Research and CIMB Research retains its Äúoutperform, Au and recommendations on actions, with target prices of RM4.20 and RM4.80 respectively.

Both RHB Research and CIMB Research said yesterday that the postponement of the vote does not mean that casino gambling in Florida is completely ruled out.

RHB Research said there are still other ways to explore the company to which the bill passed by lawmakers.

The local research house said he did not expect any financial impact of the postponement of the law as Genting Malaysia, administrative officers had told management research firm that the U.S. $ 3.8 billion for the casino resort not be spent unless the casino law was approved.

CIMB Investment in a report yesterday, said that even if the project goes through the Landbank buildings could still be used for purposes other than gaming and tourism is a major business in Florida. If this were the case, the project, the development period AOs should be considerably higher at about 10 to 15 years, he added.

Genting, Malaysia has already purchased about $ 450 U.S. million dollars of the property for its project in Florida.

RHB Research said there is little chance that lawmakers approve the bill this year sensitive, being an election year, while CIMB Research said he hopes a casino bill with new tools to make a comeback in the 2013 legislative session.

RHB Research said, according to state records, the Genting Group contributed U.S. $ 629,529 in the last seven months of 2011 to Florida legislators, parties and political committees, including U.S. $ 385,000 for the state Republican Party, which controls the Legislature and the governor, the office of administrative officers.

Posted XML Bursa Malaysia News, February 9, 2012.

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PETALING JAYA: The movements of recent consolidation of several large coal mining companies, including the proposed merger of Glencore International plc and Xstrata plc, will not create an oligopoly in the industry of the world’s coal mining , analysts said.

This is because even though the merged entities, such as Glencore International, Xstrata plc and renewed Bumi will become some of the largest coal mining companies in the world, with no majority of the coal supply worldwide. There are many smaller players, independent of industry, said a research analyst with investment bank-backed.

“The international price of coal is highly dependent on supply and demand of goods and do not expect the consolidation of the oligopolistic industry, since (merging institutions) do not impose most of the coal supply.

“We expect coal prices to remain stable this year around the U.S. $ 110 (RM330) to U.S. $ 115 per ton, at least in the first half of 2012, when the economy of China and India are expected to decline this year compared to last year. This in turn cools the demand for thermal coal, “said Bursa Malaysia News analyst.

This is good news for Tenaga Nasional Bhd (TNB) as it has been paying U.S. $ 110. States. per tonne for coal suppliers in Indonesia, its main source of thermal coal, according to a source close to the company. A stable price in that range over the next six to 12 months would be best to manage TNB costs, according to one industry observer.

In the three months to November 30, TNB fuel costs was RM1. 83 billion in coal, RM1.41 million dollars in natural gas, RM593.3 million in crude oil and distillates RM413.8 million.

The cost of crude oil and distillates, as a portion of fuel costs TNB, increased by over 100% during the period of one year ago, due to shortage of gas supply as a result of Petronas stop “re-gasification plant.

However, the price of coal could affect in any way. While further development of shale gas in North America could provide alternative fuels to coal and reduce its price, prolonged flooding in Queensland, Australia could reduce the supply and prop up the price of coal, according to a market trader .

“The development of shale gas in North America has been tremendous. The U.S. has begun exporting gas from shale, rather than being a net importer before. The increased supply shale gas could depress the price of natural gas and coal, which reduces the cost of TNB and other independent power producers (IPP), “said the merchant.

His view was, however, refuted by an analyst from a local bank. According to this analyst, there are no gas pipelines in North America related to this part of the world. The development of shale gas is limited to North America and will not affect the price of natural gas in Asia.

“The price of natural gas worldwide has begun to separate (North America), since the price is definitely lower in North America because the region has a wide range natural gas, but demand a bit low.

“But in Asia, the price is high because the economy is growing rapidly and changing nuclear power plants to natural gas Japan will continue to support the price, “the analyst told Bursa Malaysia News.

In a research note published yesterday, HwangDBS Vickers Research said the offer of independent power producers could second-generation create greater competition among existing, such as YTL Power International Bhd, Malakoff Bhd, Sime Darby Bhd and Tanjong plc.The analyst said TNB will benefit from most of the lower prices and greater affordability of supply.

“The current players can take advantage of being the first in its plants allow them to offer a lower average price of the new offerings. They also have between 15 and 20 years of technical and strategic locations of the plant.

“Any existing IPP winning a bid may see the profit potential is not reflected in current valuations,” he added.

TNB closed 4 sen or 0.67% lower than RM5.95 yesterday. Its stock price has been reduced by up to 16.5% since reaching a maximum of 52 weeks of RM7.11 on May 31, 2011.

However, there has been an increasing trend since reaching its lowest point in a year on September 26, 2011 at RM4.99.

Posted XML Bursa Malaysia News, February 9, 2012.

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Bursa KL: Brahim Holdings Bhd Sdn Bhd and Admuda entered into a memorandum of understanding (MoU) with Thailand roung Ruang Sugar Group (TRR) yesterday for the supply of raw sugar and refined sugar extraction
In a statement to Bursa Malaysia yesterday, the company said the deal would TRR supply 110,000 tons of raw sugar to Brahim / Admuda for 15 years and offered to buy 100,000 tons of refined sugar from both parties to the same period.

would be using in New York or London market price or negotiate a price every 12 months before delivery, the company said.

Posted XML Bursa Malaysia News, February 9, 2012.

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KL Bursa: The joint venture between MMC Corp Bhd and GAMUDA Bhd (MMC-GAMUDA JV) has confirmed the details with MRT Cooperation in the field of work and the fees for his role as partner in the delivery of the project (PDP ) for billions of ringgit Klang Valley mass rapid transit project.

According to sources, the PDP will have rates of 6% of total project cost, excluding the portion of the tunnel and 5% reimbursement for costs incurred to date in obtaining all approvals, preparation of designs and technical specifications and Environmental Impact Analysis (EIA) for the approval of Kajang-Sungai Buloh MRT (SBK MRT) line.

The PDP is expected to earn about RM480 ​​million, assuming the project cost is RM8 million (excluding cost of land and no portion of the tunnel that estimated at about RM7 billion) for the duration of the project that is expected to be completed by mid 2017. Any project cost savings back to the government.

should be noted that the JV-GAMUDA MMC also is watching the work of the tunnel for the MRT line SBK.

“If the JV-MMC GAMUDA not receive the portion of tunnel, then the rate of PDP also include the cost of a tunnel. However, if the joint venture contractor becomes the tunnel, then they are not paid in that part, “the source said.

The scope of work will include acting as PDP turnkey contractor, as it is responsible for engineering designs and specifications that meet government requirements.

“We also have to deliver the SBK MRT line within cost and time. The PDP must also ensure compliance with all other contractors in terms of quality, safety and punctuality. The government is protected of all disputes and claims, “the source said.

He explained that the PPD has obtained the approval date railway scheme which includes network planning studies and planning of land use, conducted traffic forecasts for the government, cost analysis benefit and the approval of the EIA.

“There are over 30 consultants involved so that the PDP would have to interface and coordinate with them. At the same time, the PDP must assume all risks with respect to matters such as orders amendment, delays and claims, “the source said.

The source also told Bursa Malaysia News that 90 packets of construction have been provided to ensure wider participation.

“But the last word is with the government. The PDP will have to ensure the successful implementation of the project based on government procurement decisions. There must be a wide interface between the PDP and the contractors participating in the 90 packages to ensure quality and timely delivery, “he said.

The source said that the PPD is in the interface and coordination of work on the system is divided into 11 packages.

“This is the first time you cut and cut into 11 packages, again to allow wider participation. The PDP will have to coordinate and manage any controversy,” the source said.

SBK MRT project is expected to last seven years (18 months have passed) with completion in July 2017. The PDP also expected to employ about 456 staff during this time.

The SBT MRT project was launched on July 8 last year by Prime Minister Datuk Seri Najib Razak, but since then the problems they face, such as the acquisition of land in Jalan Bukit Bintang and Sultan Jalan in the city center and the total cost of the project.

SBK MRT line extends from Kajang Sungai Buloh to cut through the center of the city of Bursa KL covering 51 km and 31 stations.

Posted XML Bursa Malaysia News, February 9, 2012.

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Productivity is central to growth driven by innovation
In the most basic level, output growth is driven by labor productivity, while a more comprehensive manner, which is the total factor-productivity (TFP). We believe that TFP represents the ability of an economy to produce more without changing any of the inputs of production and where innovation will make its greatest contribution.

Therefore, we believe that productivity growth is the linchpin of the economy. It is also where Malaysia has taken place relatively weak. After the Asian crisis, growth in labor productivity declined at a rate of only 2.9% compared to almost 5.5% before the crisis. We attribute this to: (1) slowdown in investment, (2) the shortage of skilled workers and (3) the lack of significant innovation, as measured by TFP growth

In addition, we believe the growth through innovation. must be supported by a healthy level of high quality, private investment, which will promote learning and technological change. We found that the participation of private investment in GDP fell sharply following the Asian financial crisis. The reasons why private investment share is not fully recover to pre-crisis levels are: (1) some high-level pre-crisis investment and in the construction sector was likely over the optimal level to start, (2) the economy is increasingly dependent on services that require lower levels of investment in fixed capital and (3) pursuing opportunities abroad is not without merit, as investment in the Malaysia region allows the repatriation of investment and financial benefits, together with other countries allows more trade in the region.

However, these labels do not put the economy at ease in the current level of underinvestment in relation to the needs of a dynamic economy efficiently. There are other issues putting a lid on the growth of investment as: (1) institutional and structural factors may have probably dampened the appetite for domestic investments, (2) the shortage of skilled labor, (3) the tax regulations and / or high taxes, (4) the lack of business support services, (5) red tape and (6) anti-competitive practices. We believe that addressing these limitations investment can lead to a good return on domestic investment and attract foreign capital.

But Malaysia can not be well positioned to grow through innovation yet.

performance of the innovation economy is considered to be in line with other middle income countries, but shows a significant difference from high income countries. Although we have seen some improvements in areas such as patents, which was due to a relatively low base. International comparisons also suggest that the relative position of Malaysia in other middle income countries has not improved significantly and therefore could face increasing challenges to innovation.

Following the Asian financial crisis, the economy was a significant decline in labor productivity growth compared to the period before the crisis. Meanwhile, gains in TFP remained virtually unchanged. The 2.6 percentage point fall in the growth of labor productivity was accompanied by a slowdown in employment growth and a significant drop in the rate of accumulation of physical capital. TFP growth saw a slight decline of 0.1%.

As for the performance of sectoral TFP with respect to general measures of innovation, which suggests that the economy is experiencing a weakening momentum in key economic sectors. We found that TFP growth in services and manufacturing industry have shown a weakening momentum.

With productivity performance data 2010, Malaysia registered productivity growth at 5.8% compared to OECD countries such as South Korea (4.9%), Japan (4 , 1%), Sweden (4.4%), Germany (3.5%), the U.S. (2.7%) and Finland (2.7%) in 2010. This is because economic growth and dynamism. However, when compared with the levels of productivity, developed economies recorded high productivity compared to Malaysia, about four to six times higher due to its economy matures.

The economy has been very successful in obtaining growth from export-led industrialization. Since the establishment of a free trade area in Penang in 1971, the economy has successfully attracted multinational companies) in Japan, USA and Europe. The export-led industrialization transformed the economy in a third business in Asia in the most open economy.

In particular, we found that export-led industrialization was facilitated by the electric power and electronics (E & E) sector, which now represents about 38% of total exports. This was accompanied by a parallel decline in importance of manufactured exports, which initially represented about 95% of total exports, but 30% now. Given the national growth depends heavily on E & E, the sophistication of the export mix as measured by the proportion of high technology goods in total exports placed the economy as the highest international level.

While the economy enjoyed the highest share of high technology exports to total exports and manufactured exports in total exports, value added remained low. This implies that the economy remains heavily dependent on low and semi-skill-intensive assembly type manufacturing. This is reflected in the national value added to total output. The share of value added has stagnated or declined for most industrial sectors in the period 1981-2002 for which a consistent set of data is available.

demarcated the progress of the growth of E & E sector in three phases. Phase 1 was in the 1970s driven by cheap labor with all multinational companies to establish and manufacturing plants and enjoyed the status as a pioneer in the FTA. Then transfer the test operations and raised with the capabilities and responsibilities in manufacturing operations. Phase 2 was in the 1980s with more responsibilities in engineering and manufacturing operations of E & E moved up the value chain. SMEs focused on productivity, while the multinationals focused on “outsourcing”, which saw demand growing contract manufacturing. Phase 3 was in the 1990′s, whereby the integration of disk drives and printed circuit board assembly and system emerged. It also marked the transition from “manufacturing” to “manufacturing + design and development.”

The semiconductor industry follows Moore’s Law since 1970. For Moore’s Law, the density of transistors on a device doubles every two years and offers higher performance and improve the cost of final products. The main engine of a virtuous cycle of growth is through the transistor level by obtaining a better cost-performance ratio products induces the exponential growth of semiconductors with the innovation of new products and new applications enabled by the Rapid advances in technology.

However, in the current scenario, the semiconductor industry faces the growing importance of a new trend, ie “More than Moore”. “More than Moore” provide opportunities and diversity of multidisciplinary research programs. Such multidisciplinary research programs will pave the way to sustain the pace of innovation is, new technology trends. This is where we believe will provide greater opportunities for universities, organizations and companies to innovate new products and raise final local players to a new level.

As for the manufacture of ecosystems and E & E value chain that includes the entire chain of design, manufacture, assembly and system integration testing, we found that Malaysia has many assembly plants and manufacturing test and is strong in this area. What you need to do is to focus on the areas of design and development (D & D), manufacturing materials, and the establishment of regional or global headquarters. While politicians are focusing on areas such as semiconductors, LEDs, solar energy, and industrial products, we believe that there is a need to focus and innovate in the areas of design and development of the sectors that have been identified through concerted efforts.

current state of innovation in the E & E can be defined at three levels:
1 multinationals. Innovation is carried out at two levels. First is to increase productivity as the objective is to reduce costs and be able to compete globally. An aim of at least 10% reduction in cost is a norm. Second is to focus on D & D, ranging from the design of microelectronics, systems design, development, packaging, testing the software development platform development without the development of products for the end user. We believe that companies with a strong center of D & D would be able to attract customers. For now, customers do not favor the designs to be carried out in Malaysia because their customers are customers of D & D centers in China and therefore prefer to set their D & D centers close to their customers of D & D centers. 2 large local companies: We found the D & D prosperous. Companies are investing mainly in automated assembly and test equipment, test systems, equipment and other visual inspection. These companies are doing well selling to customers around the world including the MNCs.
3. Local SMEs: There were many SMEs still struggling to move up the value chain. A key issue is the “funding” to purchase equipment that can help them in D & D. Moreover, SMEs are facing difficulties in recruiting human resources experience in the design. SMEs that perform some of D & D with their own funds take the time to complete the designs.

Innovation does not necessarily lead to overall growth. In our view, the innovation-led growth will result in a more narrowly specialized. It is based on the idea that middle-income economies are more diversified than low-income economies, while rich economies have a much less diversified economic structure. Therefore, the growth process since the mid-high income will focus on greater specialization of production and focus on higher value added. You can request to reallocate labor between firms and industries. And not all companies or industries are likely to benefit equally from innovation.

only limited improvement of innovation
We found that indicators of innovation narrow focus on technological forms of innovation confirms that the performance of the economy innovation has been maintained at levels comparable to but not exceeding their income the same. These indicators are the indicators that focus on innovation input such as R & D, researchers and technicians and the output of innovation as a national and international patenting.

As input indicators of R & D, which remained at low levels. We found the most innovative economies are also the fastest growing economies, like South Korea, India and China. Since the R & D is determined by the volume of research, the limited supply of researchers indicates weak demand for R & D spending. We believe there is a causality in both directions. Expenditure on R & D in Malaysia has been low compared with 0.7% worldwide in 2006. Although R & D innovation reflects a narrow margin, this low level is a cause for concern if we intend to improve our own technological capabilities.

Public sector R & D exceeds the private sector to R & D from 2006, an uncomfortable trend: Interestingly, the public sector R & D has been driving the overall R & D from 2006, a trend that is somewhat uncomfortable. We believe that this trend must be reversed if we are to encourage private investment. For private sector funds for R & D, we can create a more healthy competition, enhance productivity and innovative business environment. It is through this way that allows us to address the “root” problems rather than focus on “symptom”.

Need to flesh-the number of researchers as opposed to simply injecting funds into R & D: To increase productivity and innovation is essential to increase the proportion of researchers. At the moment, Malaysia is sitting on a weak note on the number of researchers.

We believe this will be a challenge to increase the number of researchers, because it requires skills and capabilities, and can take much more time than expected. In this regard, our main concern would be that by injecting funds into R & D without adequate number of R & D researchers, can result in ineffective spending, low-value product development.

patenting activity has recovered, but remains low, which results in innovation of the poor. Patenting activity in Malaysia is relatively low compared to Taiwan, South Korea and China. This is in contrast to Hong Kong, China and Singapore, which was initially registered good growth, but are now experiencing a decline.

In Malaysia, most patents were granted to foreigners. However, there has been a growing involvement of locals, reaching 9.4% in 2010 from 6.0% in 2000. Patents issued in the country are mainly for chemistry and metallurgy, human needs, operational technology, electricity and physics.

Patents U.S. Patent Trademark Office to residents of Malaysia is of multinationals located in Malaysia.

With the exception of patents owned by individuals, only four organizations in Malaysia, ie Silterra, MPOB, Marketing Harn and UPM were awarded five or more patents each between 2003 and 2007. Most patents are extended within the classes of related technology sector E & E. Malaysia most patented technology asset class is the solid state devices such as transistors and diodes solid state.

XML Posted Bursa Malaysia News, February 8, 2012.

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