Technical | Fundamental Analysis Discussion Stocks Listed In Bursa

Wednesday, May 27, 2009

Bursa Chat- News Highlights


Star Publications (STAR MK, Hold, TP: RM3.36) is working towards increasing revenue from online media to replace
revenue that may be reduced in its print media due to the economic downturn. The group had put in place mechanisms
so that whatever revenue was reduced in print media, it would offset with other revenue streams. The group has applied for
MSC status for its online media subsidiaries and would be implementing online operations more aggressively when this is
approved. (Starbiz)
* * * * *
MMC Corporation shareholders yesterday rejected the company’s proposal to automatically sanction the payment of
fees not exceeding RM700,000 to its non-excutive directors starting from the current financial year ending Dec 21 2009.
The other resolution rejected by the shareholders involved empowering the company to issue shares up to 10% of its paid-up
capital at anytime. (Financial Daily)
* * * * *
EON Capital is issuing warrants at total consideration of RM29.5m to Primus Pacific Partners Ltd. The exercise price of
the new warrants is RM6 per share based on a 57% premium of the 5 day VWAP of EONCap. Assuming the warrants are fully
exercised, EONCap would be getitng RM352.29m in gross proceeds, which would be used for working cap requirements to
repay borrowings. (Malaysian Reserve)
* * * * *
Kulim’s palm oil refinery in Liverpool, the UK, worth RM93.5m, will enable the company to expand its viability in the
European market and increase returns in the long run. Kulim chairman Tan Sri Muhammad Ali Hashim said the refinery can
process up to 200,000 tonnes of palm oil a year. It is expected to begin operations early next year and would only produce
sustainable palm oil. The Liverpool refinery would process palm oil sourced from its plantations in the Solomon Islands and
Papua New Guinea. (BT)
* * * * *
Demand in the manufacturing industry is slowly picking up, especially for food and pharmaceutical products,
according to the Federation of Malaysian Manufacturers. The FMM President said that although exports were still weak, the
industry has shown signs of recovery. He added that together with the improved demand, retrenchment in the manufacturing
sector was also declining. (Financial Daily)
* * * * *
The Malaysian Automotive Association (MAA) anticipates vehicle sales in the country for May to be lower than the
month before due to higher interest rates and stricter loan approvals. The MAA is nonetheless optimistic that sales will
recover by the end of the year, driven by government stimulus measures, new models and the bottoming out of the global
recession. (BT)
* * * * *
Bank Negara Malaysia (BNM) has kept borrowing costs unchanged at 2%, saying the contraction in external demand
had affected domestic conditions for the first half of the year. Bank Negara first announced a cut of 25 basis points (a
quarter of 1%) in November last year, followed by another 75 basis points cut to 2.5% in January and a 25 basis points
reduction to 2.0% in February. The central bank said in its current assessment, the monetary policy initiatives and measures to
enhance access to financing are sufficient to provide support to domestic demand. (BT)
* * * * *
Malaysia's economy may contract by more than 1% this year but is expected to return to positive growth next year,
Second Finance Minister Datuk Ahmad Husni Mohamad Hanadzlah says. The government's earlier forecast for gross domestic
product (GDP) growth in 2009 was between a 1% contraction and 1% growth. Husni said Prime Minister Datuk Seri Najib
Razak will announce the revised forecast, while Bank Negara Malaysia is scheduled to announce the first-quarter GDP
numbers later today. (BT)
* * * * *


Stocks soared Tuesday, with the Dow gaining nearly 200 points after a report showing consumer confidence hit an eightmonth
high offset dismal housing news. Stocks opened lower on concerns about North Korea, which had test-fired missiles
after conducting a nuclear test Monday, along with worries over a report that showed a record plunge in U.S. home prices. But
a much stronger than expected consumer confidence reading offset those concerns and encouraged investors to jump back
into the market after several down days. The Dow Jones industrial average gained 2.4% (+196.2 pts, close 8,473.5). The
Standard & Poor's 500 index gained 2.6% (+23.3 pts, close 910.3) and the Nasdaq composite gained 3.5% (+58.4 pts, close
1,750.4). In currency trading, the dollar was mixed against its major trading partners. The greenback rose against the euro but
fell against the pound and the yen. U.S. light crude oil for July delivery rose 68 cents to settle at US$62.45 a barrel on the New
York Mercantile Exchange. (CNNmoney)
* * * * *
Confidence among U.S. consumers jumped in May by the most in six years, fuelling speculation the economy will recover
later this year. The Conference Board’s sentiment index surged to 54.9, higher than forecast, according to figures from the
New York-based research group yesterday. Still, rising unemployment and falling real estate values underscore that it will take
time to establish a sustained rebound. The 28-point jump in confidence over April and May is the biggest two-month rally since
records began in 1967. The measure reached its lowest point ever in February, with a reading of 25.3. Consumer confidence
was projected to rise to 42.6, according to the median estimate in a Bloomberg News survey of 70 economists. Forecasts
ranged from 38.5 to 47. The Conference Board revised the April reading to 40.8, from an originally reported 39.2. (Bloomberg)
* * * * *
Home prices in 20 major metropolitan areas in the US fell more than forecast in March as foreclosures surged,
threatening to extend the housing slump. The S&P/Case-Shiller home-price index decreased 18.7% from March 2008,
matching the drop in the year ended in February. The measure declined 19% in January, the most since data began in 2001.
Record foreclosures are depressing the value of other properties, contributing to a slump in household wealth that is hurting
consumer spending and the economy. Still, falling prices and mortgage rates have made homes more affordable, helping to
stem the slide in sales, which will eventually help prices stabilize. “We see no evidence that a recovery in home prices has
begun,” David Blitzer, chairman of the index committee at S&P, said in a statement. (Bloomberg)
* * * * *
The slump in the U.S. housing market that caused the median value of homes to decline 24% since 2006 may bottom
next month without any prospect of a rebound for another year, according to estimates from chief economists at Fannie
Mae and Freddie Mac, the Mortgage Bankers Association and national realtors and homebuilder groups. Existing home sales
probably won’t reach pre-boom levels until 3Q10 and housing starts won’t surpass 1m until 2011, a barrier last broken six
decades ago, the economists said. “There are very few V-shaped recoveries in the history of real estate, and this one is likely
to be even slower because of the size of the bubble,” said Robert Shiller, the Yale University professor who, with economist
Karl Case, created home price indexes in the 1980s now used by Standard & Poor’s. The rebound will be so anaemic that
2009 building starts will total about 496,000 homes, the lowest since the end of World War II in 1945, according to the
economists’ forecasts. (Bloomberg)
* * * * *
European industrial orders declined for an eighth month in March as the worst recession in more than six decades
curtailed global demand for machines and equipment. Industrial orders in the euro region fell 26.9% y-o-y, after a revised
34.2% drop in February, the European Union’s statistics office said Monday. From the prior month, March orders fell 0.8%.
Europe’s economy contracted at the fastest pace in at least 13 years in 1Q09 as companies cut output and jobs to cope with
the worldwide slump. The slowing pace of decline in industrial orders adds to indications that the recession may be bottoming
out. (Bloomberg)
* * * * *



Record falls in exports and investment made the German economy shrink in 1Q09 at its fastest pace since reunification
in 1990, data showed yesterday, though consumer spending helped to soften the blow. Confirming preliminary estimates from
earlier this month, the Federal Statistics Office said German gross domestic product (GDP) shrank by 3.8% q-o-q and by 6.7%
y-o-y during 1Q09. Forward-looking indicators in recent weeks have suggested the pace of the downturn - which the
government has forecast will cause the economy to shrink by a record 6% this year - has eased since 1Q09. A separate report
from the GfK market research firm yesterday showed German consumer sentiment should hold steady for a fourth month
running going into June as growing worries over household finances are offset by a brighter overall outlook. Exports fell by
9.7% q-o-q, while gross capital investment tumbled by 7.9%, the figures showed. By contrast, private consumption rose by
0.5%. (Reuters)
* * * * *
Hong Kong unveiled HK$16.8bn (US$2.2bn) of tax cuts, fee waivers and spending to spur growth and cushion residents
from the deepest global slump since the Great Depression. The government may “do something further” if conditions worsen,
Financial Secretary John Tsang said yesterday. The latest measures push the government’s stimulus and relief spending since
2008 to HK$87.6bn, or about 5.2% of gross domestic product, Tsang said. Some economists say the city needs to spend
more, faster after first-quarter economic growth shrank by the most since at least 1990 on plunging exports. Hong Kong’s fiscal
reserves stood at HK$494.4bn at the end of March and the city had a HK$1.4bn budget surplus for the year ended March 31,
rather than the deficit the government had forecast. (Bloomberg)
* * * * *
Singapore’s industrial production unexpectedly declined the least in seven months in April as a slump in demand from
the island’s biggest markets eased. Manufacturing, which accounts for about a quarter of Singapore’s economy, dropped 0.5%
y-o-y following a revised 32.8% decline in March, the Economic Development Board said yesterday. That was better than the
most optimistic forecast in a Bloomberg News survey of 11 economists, where the median was a contraction of 21%. Industrial
production rose a seasonally adjusted 24.7% in April from the previous month, yesterday’s report showed. (Bloomberg)
* * * * *
South Africa’s gross domestic product contracted in 1Q09, pushing Africa’s biggest economy into recession for the first
time in 17 years as manufacturers and miners scaled back output and fired workers. GDP fell an annualized 6.4%, the most
since the third quarter of 1984, after declining 1.8% in 1Q08, Statistics South Africa said in a report released Monday.
Economists surveyed by Bloomberg had forecast a 3.9% drop in output. The recession snaps more than a decade of economic
growth, the longest period of expansion on record, putting pressure on newly installed President Jacob Zuma as he pledges to
slash poverty and unemployment. The government is unlikely to achieve its growth target of 1.2% for this year set in the
budget, the Treasury said in a statement. Still, the contraction in 2Q09 is “expected to be smaller” than the previous three
months, it added. (Bloomberg)
* * * * *
The drop in the London interbank offered rate, the benchmark for US$360trn of financial products, to a record low
masks a growing gap between the rates that the biggest banks charge each other for credit. The difference between the
highest and lowest interest rates banks say they pay for three-month dollar-denominated loans is near the widest this year,
according to data compiled by the British Bankers’ Association. The spread signals that lenders still lack confidence in each
other, even though measures ranging from the so-called Libor-OIS spread to corporate bond sales show credit markets have
recovered from the freeze caused by the Sept. 15 collapse of Lehman Brothers Holdings Inc. Libor fell to 0.66%, from 4.82%
on Oct. 10. At the same time, the gap between the highest and lowest accepted quotes reported by the 16 banks that
contribute to the London-based BBA for its calculation of Libor has averaged 7.5 basis points in May, according to Citigroup
Inc. That’s up from 4.9 basis points in April and 1.5 basis points in the six months before Lehman’s bankruptcy. It widened to 9
basis points on May 14, the most since Dec. 3. (Bloomberg)
* * * * *

What’s Happening

Company Quarter Date
Lafarge Malayan Cement 1Q 27 May
KL Kepong 2Q 27 May
Sunway City 3Q 28 May
KNM 1Q 28 May
Plus 1Q 28 May
AirAsia 1Q 29 May
MAS 1Q 29 May
Muhibbah 1Q 29 May
Companies Prospectus Date
Listing Date
Samchem Holdings Bhd 22 May 23 June

Reports Published
Company Title Target Price Rec Date
Public Bank (RM8.45) 1QFY09 Results RM9.50 Buy 15 Apr
Tenaga (RM6.50) 2QFY09 Results RM7.00 Hold 15 Apr
TSH Resources (RM1.64) Buys 7.96% unlisted plantation company RM1.80 Buy 15 Apr
Plantations Sector Weekly Review - Overweight 20 Apr
Banking Sector Weekly Review - Neutral 20 Apr
Construction Sector Weekly Review - Neutral 20 Apr
Oil & Gas Sector Weekly Review - Neutral 20 Apr
Property Sector Weekly Review - Neutral 20 Apr
Telco Sector Weekly Review - Neutral 20 Apr
Bumiputra Commerce (RM8.00) Completes Bank of Yingkou purchase RM7.70 Hold 21 Apr
SunCity (RM1.99) Still some shine to it RM2.96 Buy 22 Apr
British American Tobacco (RM45.00) 1QFY09 Results RM47.00 Hold 23 Apr
Plantations Sector Weekly Review - Overweight 27 Apr
Banking Sector Weekly Review - Neutral 27 Apr
Construction Sector Weekly Review - Neutral 27 Apr
Oil & Gas Sector Weekly Review - Neutral 27 Apr
Property Sector Weekly Review - Neutral 27 Apr
Telco Sector Weekly Review - Neutral 27 Apr
Banking Financial sector liberalization - Neutral 28 Apr
Market Strategy Khazanah's Malaysian investments: Time to
- - 28 Apr
Banking April 2009: March numbers holding steady Neutral 30 Apr
Property Strong uptick in property loan approval Neutral 30 Apr
DiGi.Com (RM22.30) 1QFY09 Results RM22.60 Hold 4 May
Plantations Sector Monthly Review - Overweight 4 May
Telco Sector Monthly Review - Neutral 4 May
Construction Sector Monthly Review - Neutral 4 May
Oil & Gas Sector Monthly Review - Neutral 4 May
Property Sector Monthly Review - Neutral 4 May
Sime Darby (RM6.70) More than doubling yard space RM6.40 Hold 5 May
IJM Corp (RM5.30) Water tunnel job flowed in RM5.10 Hold 5 May
Hong Leong Bank (RM5.70) 3QFY09 Results RM5.80 Hold 7 May
Sunrise (RM1.46) 3QFY09 Results RM2.17 Buy 8 May
Plantations Sector Weekly Review - Overweight 11 May
Banking Sector Weekly Review - Neutral 11 May
Construction Sector Weekly Review - Neutral 11 May
Oil & Gas Sector Weekly Review - Neutral 11 May
Property Sector Weekly Review - Neutral 11 May
Telco Sector Weekly Review - Neutral 11 May
Building Materials Sector Weekly Review - Neutral 11 May
Bumiputra Commerce (RM8.85) 1QFY09 Results RM8.80 Hold 15 May
Heavy Industries (RM3.26) New JV signed with DNCS Under review Hold 15 May
AMMB Holding (RM3.18) 4QFY09 Results RM4.00 Buy 18 May
IOI Corp (RM4.44) 3QFY09 Results RM4.00 Sell 18 May
Media Prima (RM1.34) 1QFY09 Results RM1.25 Hold 18 May
Boustead Heavy Ind (RM3.30) 1QFY09 Results RM3.30 Hold 18 May
Banking Sector Weekly Review - Neutral 18 May
Building Materials Sector Weekly Review - Neutral 18 May
Oil & Gas Sector Weekly Review - Neutral 18 May
Property Sector Weekly Review - Neutral 18 May
Telco Sector Weekly Review - Neutral 18 May
Plantation Sector Weekly Review - Overweight 18 May
Construction Sector Weekly Review - Neutral 18 May
Boustead Holdings (RM3.54) 1QFY09 Results RM3.60 Hold 19 May
YNH (RM1.47) 1QFY09 Results RM2.02 Buy 20 May
Axiata (RM2.32) 1QFY09 Results RM3.12 Buy 20 May
TSH Resources (RM1.74) 1QFY09 Results RM2.05 Buy 21 May
UMW Holdings (RM5.80) 1QFY09 Results RM5.65 Hold 21 May
DiGi.Com (RM22.50) Enters the MVNO market with Baraka RM22.60 Hold 22 May
Litrak (RM2.30) 4QFY09 Results RM2.22 Buy 22 May
Maybank (RM5.20) 3QFY09 Results RM6.40 Buy 22 May
Telekom (RM3.80) 1QFY09 Results RM4.90 Buy 22 May
YTL Corp (RM7.05) 3QFY09 Results RM8.00 Buy 22 May
YTL Power (RM2.09) 3QFY09 Results RM2.50 Buy 22 May
YTL Cement (RM3.36) 3QFY09 Results RM4.50 Buy 22 May
Tenaga Nasional (RM7.65) Plans to boost hydro power RM7.00) Hold 25 May
Banking Sector Weekly Review - Neutral 25 May
Building Materials Sector Weekly Review - Neutral 25 May
Oil & Gas Sector Weekly Review - Neutral 25 May
Property Sector Weekly Review - Neutral 25 May
Telco Sector Weekly Review - Neutral 25 May
Plantation Sector Weekly Review - Overweight 25 May
Sime Darby (RM6.95) 3QFY09 Results RM7.70 Buy 26 May
Puncak Niaga (RM2.85) 1QFY09 Results RM3.00 Hold 26 may
Sapura Crest (RM1.40) Nippon Steel contract for Sapura 3000 RM0.67 Sell 26 May
Macro Views May 2009 : Liquidity-driven markets - - 26 May

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