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Axiata Group Bhd (formerly known as TM International Bhd) has paid RM2bn or half of the amount owing to Telekom Malaysia Bhd (T MK, Hold, TP: RM2.74) ahead of schedule. Axiata said the remaining RM2bn would be repaid by end-April. The amount due to Telekom is to be repaid by April 25, being 1 year from the completion of the demerger between the 2 companies. Axiata group chief financial officer Datuk Yusof Annuar Yaacob had said the company intended to pay Telekom ahead of April 25, given that the amount owing carried a 6.5% interest rate per annum, higher than its average borrowing cost of 4.67%. (Financial Daily)
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AirAsia Bhd (AIRA MK, Buy, TP: RM1.90) plans to borrow RM3bn next year to help pay for 24 new planes. The money is on top of the estimated RM2.1bn already lined up for 14 planes this year. AirAsia plans to expand its fleet as the region’s economic growth fuels travel demand. According to Boeing Co, air travel in the Asia-Pacific region, excluding within China, may
grow 6.2% a year on average until 2027. (Financial Daily)
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IOI Corp (IOI MK, Hold, TP: RM3.90) announced yesterday that the close of its VGO was 31 March and it held 91.33% of IOI Prop. However, all is not lost for minorities according to the MSGW and there are several options. MSGW said that minorities th could sell their shares in the market before 5pm on April 6 , write to IOI Corp and offer their shares, or remain in the unlisted entity of IOI Prop. Should they choose the latter, shareholders would have their investment locked in unlisted IOI Prop with limited exit strategy. On a positive note, minorities would be entitled to dividend payments but this would be at the Board’s discretion. Moreover, substantial property transactions by directors or substantial shareholders of IOI Corp would requite minority shareholders approval in general meetings. (Starbiz)
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Construction work on the Canal City project in Kuala Langat, Selangor, is going ahead as scheduled, except for the canal component which is being renegotiated with the state government, said IJM Land, the equity partner in the project. There is still around 2,700 acres left to be developed in the projects, IJM Land managing director Datuk Soam Heng Choon clarified after the launch of IJM Land’s “My Space Plan” homeownership promotion yesterday. IJM Land and Kumpulan Europlus are jointly developing the Canal City project. IJM Land’s parent company IJM Corporation (IJM MK, Buy, TP: RM5.10) also holds a 25% stake in Kumpulan Europlus. (Financial Daily)
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WCT Bhd aims to secure RM1bn worth of new projects in Malaysia and the Middle East this year. WCT regional general manager for the Middle East, Elina Abdul Aziz said the group was tendering for projects in Abu Dhabi and Oman. The group, with RM2.6bn order book as at December 31 2008, is now positioning itself in 3 major markets which is Malaysia, Vietnam and
he Middle East. (The Malaysian Reserve)
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Celcom will spend RM700m in capital expenditure this year of which RM300m will be for upgrading its wireless broadband infrastructure. Celcom CEO said there was a dire need to expand the infrastructure as demand was fast outstripping supply. He said that demand was coming not just from the Klang Valley but also from other states including Terengganu, Perak, Kelantan and even Sarawak. Just for March, Celcom had a record 30,000 new subscribers and just 2% of consumers are hogging 80% of network capacity. (Starbiz)
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After 30 years, Datuk Seri Abdul Hamidy Abdul Hafiz has called it a day at Affin Bank Berhad. He retired effective Tuesday, paving the way for Zulkiflee Abbas Abdul Hamid to helm the bank. (Starbiz)
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CIMB Group appointed Kenny Kim group CFO and head of group strategy and finance division and Lim Tiang Siew group chief internal auditor. (Starbiz)
*****
INVESTMENT RESEARCH
Global
Stocks recharged their advance Wednesday, with investors starting off the new quarter on the right foot, following better- than-expected readings on housing and manufacturing. The Dow Jones industrial average gained 2.0% (+152.7 pts, close 7,761.6). The Standard & Poor's 500 index gained 1.7% (+13.2 pts, close 811.1) and the Nasdaq composite gained 1.5% (+23.0 pts, close 1,551.6). In currency trading, the dollar gained against the euro and fell against the yen. U.S. light crude oil for May delivery settled down US$1.27 to US$48.39 a barrel on the New York Mercantile Exchange. (CNNmoney)
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The recession racking the U.S. may be turning less severe as reports yesterday showed improvements in manufacturing. The Institute for Supply Management’s factory index climbed to 36.3 in March, a third consecutive increase that brought it closer to the breakeven point of 50. The number of contracts to buy existing homes in February rose 2.1%, according to the National Association of Realtors. The smallest drop in orders in seven months propelled the advance in manufacturing, even as the industry now faces the spectre of the bankruptcy of General Motors Corp. (Bloomberg)
*****
Companies in the U.S. cut an estimated 742,000 workers in March, pointing to no relief in sight for the labour market amid the longest recession in seven decades, a private report based on payroll data showed yesterday. The drop in the ADP Employer Services gauge was larger than economists forecast and the most since records began in 2001. February’s reading was revised to show cut of 706,000 workers, up from a previous estimate of 697,000. The Labour Department may report tomorrow that employers cut payrolls in March for a 15th consecutive month, putting jobs losses in the current downturn at more than 5 million, according to a Bloomberg survey. (Bloomberg)
*****
European unemployment increased more than economists expected in February to the highest in almost three years as the recession forced companies across the continent to cut output. The jobless rate in the euro zone rose to 8.5% from a revised 8.3% in January, the European Union’s statistics office said yesterday. The February reading is the highest since May 2006 and exceeded the 8.3% economists forecast, according to the median of 23 estimates in a Bloomberg News survey. The January figure was revised higher from 8.2% reported on Feb. 27. (Bloomberg)
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Job prospects for Japanese workers just got worse. The Bank of Japan’s Tankan survey yesterday showed plunging demand has saddled companies with too many employees, signalling more people may lose their jobs. Rising unemployment threatens consumer spending, the strongest part of an economy that shrank an annualized 12.1% in 4Q08. The quarterly Tankan index of labour supply at Japan’s biggest companies rose to 20, the highest level since March 2003. A positive number indicates an excess of workers. Japan’s unemployment rate climbed to a three-year high of 4.4% in February and economists surveyed last month said it will reach 5.5% in 1Q10, matching a postwar high set in April 2003. (Bloomberg)
*****
Singapore's home prices plunged 14% in the first quarter, the most in at least 16 years, as the global financial crisis and a recession deterred buyers. The price index of private residential property fell to 140.3 points in the three months ended March 31 from 162.8 in the previous quarter, the Urban Redevelopment Authority said in an e-mailed statement yesterday. That's the largest drop since the first quarter of 1993, according to the earliest data provided by the government agency. Residential prices have retreated for three straight quarters, ending a four-year rally. (BT)
*****
*****
AirAsia Bhd (AIRA MK, Buy, TP: RM1.90) plans to borrow RM3bn next year to help pay for 24 new planes. The money is on top of the estimated RM2.1bn already lined up for 14 planes this year. AirAsia plans to expand its fleet as the region’s economic growth fuels travel demand. According to Boeing Co, air travel in the Asia-Pacific region, excluding within China, may
grow 6.2% a year on average until 2027. (Financial Daily)
*****
IOI Corp (IOI MK, Hold, TP: RM3.90) announced yesterday that the close of its VGO was 31 March and it held 91.33% of IOI Prop. However, all is not lost for minorities according to the MSGW and there are several options. MSGW said that minorities th could sell their shares in the market before 5pm on April 6 , write to IOI Corp and offer their shares, or remain in the unlisted entity of IOI Prop. Should they choose the latter, shareholders would have their investment locked in unlisted IOI Prop with limited exit strategy. On a positive note, minorities would be entitled to dividend payments but this would be at the Board’s discretion. Moreover, substantial property transactions by directors or substantial shareholders of IOI Corp would requite minority shareholders approval in general meetings. (Starbiz)
*****
Construction work on the Canal City project in Kuala Langat, Selangor, is going ahead as scheduled, except for the canal component which is being renegotiated with the state government, said IJM Land, the equity partner in the project. There is still around 2,700 acres left to be developed in the projects, IJM Land managing director Datuk Soam Heng Choon clarified after the launch of IJM Land’s “My Space Plan” homeownership promotion yesterday. IJM Land and Kumpulan Europlus are jointly developing the Canal City project. IJM Land’s parent company IJM Corporation (IJM MK, Buy, TP: RM5.10) also holds a 25% stake in Kumpulan Europlus. (Financial Daily)
*****
WCT Bhd aims to secure RM1bn worth of new projects in Malaysia and the Middle East this year. WCT regional general manager for the Middle East, Elina Abdul Aziz said the group was tendering for projects in Abu Dhabi and Oman. The group, with RM2.6bn order book as at December 31 2008, is now positioning itself in 3 major markets which is Malaysia, Vietnam and
he Middle East. (The Malaysian Reserve)
*****
Celcom will spend RM700m in capital expenditure this year of which RM300m will be for upgrading its wireless broadband infrastructure. Celcom CEO said there was a dire need to expand the infrastructure as demand was fast outstripping supply. He said that demand was coming not just from the Klang Valley but also from other states including Terengganu, Perak, Kelantan and even Sarawak. Just for March, Celcom had a record 30,000 new subscribers and just 2% of consumers are hogging 80% of network capacity. (Starbiz)
*****
After 30 years, Datuk Seri Abdul Hamidy Abdul Hafiz has called it a day at Affin Bank Berhad. He retired effective Tuesday, paving the way for Zulkiflee Abbas Abdul Hamid to helm the bank. (Starbiz)
*****
CIMB Group appointed Kenny Kim group CFO and head of group strategy and finance division and Lim Tiang Siew group chief internal auditor. (Starbiz)
*****
INVESTMENT RESEARCH
Global
Stocks recharged their advance Wednesday, with investors starting off the new quarter on the right foot, following better- than-expected readings on housing and manufacturing. The Dow Jones industrial average gained 2.0% (+152.7 pts, close 7,761.6). The Standard & Poor's 500 index gained 1.7% (+13.2 pts, close 811.1) and the Nasdaq composite gained 1.5% (+23.0 pts, close 1,551.6). In currency trading, the dollar gained against the euro and fell against the yen. U.S. light crude oil for May delivery settled down US$1.27 to US$48.39 a barrel on the New York Mercantile Exchange. (CNNmoney)
*****
The recession racking the U.S. may be turning less severe as reports yesterday showed improvements in manufacturing. The Institute for Supply Management’s factory index climbed to 36.3 in March, a third consecutive increase that brought it closer to the breakeven point of 50. The number of contracts to buy existing homes in February rose 2.1%, according to the National Association of Realtors. The smallest drop in orders in seven months propelled the advance in manufacturing, even as the industry now faces the spectre of the bankruptcy of General Motors Corp. (Bloomberg)
*****
Companies in the U.S. cut an estimated 742,000 workers in March, pointing to no relief in sight for the labour market amid the longest recession in seven decades, a private report based on payroll data showed yesterday. The drop in the ADP Employer Services gauge was larger than economists forecast and the most since records began in 2001. February’s reading was revised to show cut of 706,000 workers, up from a previous estimate of 697,000. The Labour Department may report tomorrow that employers cut payrolls in March for a 15th consecutive month, putting jobs losses in the current downturn at more than 5 million, according to a Bloomberg survey. (Bloomberg)
*****
European unemployment increased more than economists expected in February to the highest in almost three years as the recession forced companies across the continent to cut output. The jobless rate in the euro zone rose to 8.5% from a revised 8.3% in January, the European Union’s statistics office said yesterday. The February reading is the highest since May 2006 and exceeded the 8.3% economists forecast, according to the median of 23 estimates in a Bloomberg News survey. The January figure was revised higher from 8.2% reported on Feb. 27. (Bloomberg)
*****
Job prospects for Japanese workers just got worse. The Bank of Japan’s Tankan survey yesterday showed plunging demand has saddled companies with too many employees, signalling more people may lose their jobs. Rising unemployment threatens consumer spending, the strongest part of an economy that shrank an annualized 12.1% in 4Q08. The quarterly Tankan index of labour supply at Japan’s biggest companies rose to 20, the highest level since March 2003. A positive number indicates an excess of workers. Japan’s unemployment rate climbed to a three-year high of 4.4% in February and economists surveyed last month said it will reach 5.5% in 1Q10, matching a postwar high set in April 2003. (Bloomberg)
*****
Singapore's home prices plunged 14% in the first quarter, the most in at least 16 years, as the global financial crisis and a recession deterred buyers. The price index of private residential property fell to 140.3 points in the three months ended March 31 from 162.8 in the previous quarter, the Urban Redevelopment Authority said in an e-mailed statement yesterday. That's the largest drop since the first quarter of 1993, according to the earliest data provided by the government agency. Residential prices have retreated for three straight quarters, ending a four-year rally. (BT)
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