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DJ MARKET TALK: Petronas Gas May Fall; 4Q Profit Down 23%
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0040 GMT [Dow Jones] Petronas Gas (6033.KU) may fall to MYR9.84 vs yesterday's unchanged close at MYR9.88, says dealer; this after company says fiscal 4Q net profit falls 23% on year due to lower throughput revenue, weaker utilities sales. Unit of national oil company Petroliam Nasional says net profit at MYR201.4 million vs MYR261.8 million a year earlier after revenue drops to MYR802.2 million from MYR935.9 million. Expects "satisfactory" fiscal 2011 with cost reduction efforts in place, while prospects for utilities business will depend on pace of Malaysia's economic recovery. Net profit for full year at MYR940.9 million vs MYR928.7 million previously. Dealer says stock may face some selling pressure due to weaker 4Q results, but losses likely contained; "the full year numbers are roughly within expectations, while a recovering economy will boost throughput, revenue and profits going forward."

DJ MARKET TALK: USD/MYR Tad Lower; 3.1900-3.2300 Range Eyed
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0051 GMT [Dow Jones] USD/MYR tad lower at 3.2000 vs 3.2035 late yesterday, local dealer says volume thin, some MYR buying on hopes of policy rate hike by Bank Negara tomorrow, expectations of strong 1Q GDP growth numbers. Dow Jones poll of 18 economists expect 1Q GDP up 9.6% vs 4.5% growth in 4Q. Trading also "appears to be less volatile than the past few days." Tips 3.1900-3.2300 band rest of day. (


DJ MARKET TALK: Hartalega May Rise On Bonus Issue, 4Q Net Pft
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0003 GMT [Dow Jones] Hartalega Holdings (5168.KU) may rise to test MYR8.00 (yesterday's intraday high) vs yesterday's close at MYR7.85 (+0.8%), says trader; this after latex glovemaker says planning a 1-for-2 bonus share issue. Company also announces higher fiscal 4Q net profit of MYR46.4 milion vs MYR31.0 million year earlier; revenue rises to MYR163.4 million vs MYR124.8 million previously. For full year, company posts net profit of MYR143.1 million vs MYR84.5 million. Hartalega says demand remains strong for its key products of synthetic, natural latex gloves, optimistic of continued growth, better financial results in FY11. "Investors will be thrilled...they had been hoping for bonus shares after other glovemakers like Supermax and Top Glove made bonus issues earlier this year. The results are also very encouraging," trader says


DJ MARKET TALK: Kencana May Rise; Unit Wins MYR91.9M Contract
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2338 GMT [Dow Jones] Kencana Petroleum (5122.KU) may rise to MYR1.60, then MYR1.68 (Apr. 6 high) vs yesterday's close at MYR1.57 (+0.6%) says dealer; this after company says unit Kencana HL secured MYR91.9 million contract from the Energy, Green Technology and Water Ministry to install subsea pipeline in Malaysia's Labuan island. Says project includes pipeline installation works between water treatment plant in Beaufort and Labuan, other related external works; expected to be delivered in 4Q 2010, will contribute positively to group earnings for financial years ending July 31, 2010, 2011. Dealer says margins on specialist job likely to be generous; "there seems to have been a flow of jobs won by Kencana recently... this latest good-sized project will boost the shares today."

DJ Berjaya Corp May Acquire Sports Gaming Outfit - Report
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KUALA LUMPUR (Dow Jones)--Berjaya Corp. (3395.KU), controlled by Malaysian tycooon Vincent Tan, may be acquiring sports-gaming-license holder Ascot Sports Sdn. Bhd., The Star reported Wednesday, quoting unnamed sources.

Ascot Sports, which is also owned by Tan, will be allowed to operate in 200 of the 680 number-forecasting outlets run by unit Berjaya Sports Toto Bhd. (1562.KU), a source said.

The country's first sports-betting operation will likely start operations in August or September, the source added.

Berjaya Corp. Tuesday had requested that trading in its shares be suspended Wednesday pending "an announcement of an acquisition from a related party of the company and a capital raising exercise."

The company wasn't immediately available for comment.

Berjaya Corp shares ended flat Tuesday at MYR1.54.

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DJ MARKET TALK: KLCI Likely Stuck In Range; 1334-1344 Tipped
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0024 GMT [Dow Jones] KLCI likely to open flat, taking lead from U.S. stocks' flat finish overnight, says dealer with local brokerage; thinks index likely trapped in 1334-1344 range in absence of fresh catalysts. "Blue chips should continue to be well-supported due to the positive growth outlook on the domestic and global front, while lower liners remain in consolidation with slight downward bias," says TA Research; tips KLCI's immediate support at 1329, followed by 1320 (50% Fibonacci Retracement of the 12-day rally from 1292 low of March 22 to April 7's peak of 1347), while resistance remains at 1344 (the previous two week's high), then 1347, (April 7's pivot high). KLCI ended +0.2% at 1340.07 yesterday. Allianz Malaysia (1163.KU) may fall after insurer announced plans to raise MYR611 million through rights issue of convertible preference shares.


DJ MARKET TALK: USD/MYR Higher; 3.1700-3.1900 Range Tipped
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0032 GMT [Dow Jones] USD/MYR higher at 3.1810 vs 3.1725 late Monday, tracking USD/Asians, says dealer with local bank. "The ringgit is weakening more than the other Asian currencies because it was one of the best performers in the year-to-date, rising more than 6%," says dealer; adds, market participants also keeping on eye on developments in Greece for near-term direction. Tips pair to move in 3.1700-3.1900 range with upside bias.



DJ MARKET TALK: Allianz May Fall To MYR5.30 On Rights Issue Plan
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0014 GMT [Dow Jones] Allianz Malaysia (1163.KU) may fall to MYR5.30 (April low) after insurer announced plans to raise MYR611 million through rights issue of convertible preference shares; issurance ratio, pricing yet to be determined, rights issue aimed at raising funds to repay existing debt, to meet Bank Negara's capital requirements. Company says immediate earnings dilution would be minimal since convertible shares can be converted into ordinary shares only 12 months after issuance completed; pricing and ratio for share issuance to be determined later. "There will still be some impact on sentiment, though the fact that any dilution will only happen later should help prevent any steep drop in the share price," dealer says. Allianz ends +4.3% at MYR5.56 yesterday.



DJ MARKET TALK: Tejari May Rise To 35.5 Sen On Profit Hopes
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0003 GMT [Dow Jones] Tejari (0140.KU) may rise to 35.5 sen (January 2009 high) after signing to buy 51% stake in two computer products dealers for total of MYR9.3 million; company says acquisition of PC3 Technology Sdn Bhd, which sells Acer and Canon products, comes with profit guarantee of MYR2.4 million over 32-month period while acquisition of Essential Action Sdn Bhd, which sells Lenovo products, comes with MYR1.5 million guarantee over same period; dealers say acquisitions significant for Tejari, which posted loss of MYR2.4 million in FY09. "The company could return to profitability by as early as this fiscal year because of the contribution from the new companies," dealer says. Tejari ended +61% at 25 sen yesterday.

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DJ MARKET TALK:RHB Capital +1.9%; M&A Talk Fuels Interest
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0739 GMT [Dow Jones] RHB Capital (1066.KU) +1.9% at MYR6.00 (vs flat finance sub-sector), dealer says, on M&A hopes after banking group's MD Tajuddin Atan says may consider such opportunities if they arise. "The bank will not close the door if the strategic fit comes into the picture," Tajudin says. "From a strategic perspective, it is possible" a deal could happen this year, he says, but doesn't provide details. Dealer says following Hong Leong Bank's (5819.KU) plans to acquire EON Capital's (5266.KU) assets, liabilities to create country's fourth largest lender by assets, "any talk of merger among banks will excite the market...even though there's nothing concrete." Resistance at MYR6.03 (intraday high).

DJ MARKET TALK:Tan Chong +12.2%, 3-Year EPS CAGR Likely +47%-CIMB
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0756 GMT [Dow Jones] Tan Chong Motor (4405.KU) +12.2% at fresh 12-year high of MYR4.50 on strong earnings outlook, says dealer with local brokerage; thinks stock may test psychological MYR5.00 in the next few weeks given expectation of stronger economic recovery. CIMB Research analyst Loke Wei Wern projects Tan Chong to post impressive EPS CAGR of 47% for FY10-12 after raising earnings forecasts; cites model mix expansion, and regional ambitions and Indochina strategy as reasons for earnings upgrade. Also predicts Malaysia's Nissan car distributor to post strong 1Q earnings, supported by stronger margins, higher sales volume. Didn't provide 1Q forecast figures. Keeps Outperform call on Tan Chong, raises target to MYR7.00 from MYR4.55.

DJ MARKET TALK: AmResearch Downgrades Top Glove To Hold From Buy
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0810 GMT [Dow Jones] AmResearch downgrades Top Glove (7113.KU) to Hold from Buy, cuts target to MYR12.50 from MYR15.70, based on lower P/E of 13X FY11F earnings on concerns over margin compression. Broker says demand growth for latex gloves has possibly peaked, "should decelerate going forward," with pricing power likely shifting from glove makers to customers; "there could be increased resistance from consumers in accepting higher average selling price going forward." Notes headwinds in higher latex costs, weaker USD vs MYR, both pose risk to margins; house cuts FY11F, FY12F earnings forecast by 8%-10%. "We believe the stock has run its course since 2009, and the lack of earnings upside surprise renders the stock fully valued," AmResearch says. Stock last +0.9% at MYR13.70.

DJ MARKET TALK: Emerging Market Stock Inflows Hit 6-Mo High -EPFR
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0843 GMT [Dow Jones] Investor interest in emerging markets is red hot with flows into emerging funds hitting six month high, according to fund flow tracker EPFR Global. Emerging market bond funds have been seeing inflows for 22 straight weeks now while emerging market funds took in US$3.27 billion in week ended April 7, bringing total YTD inflows to US$10.8 billion. Flows to Asia equity funds hit 17-week high. Asia ex-Japan stock funds were helped by renewed appetite for China, which has seen slacking interest thanks to increased tensions with the U.S. as well as uncertainty about the impact of tighter domestic monetary policy,

DJ MARKET TALK: USD/MYR Lower Late; 3.1650 Support Eyed
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0843 GMT [Dow Jones] USD/MYR lower late at 3.1885 vs late yesterday 3.2200; local dealer says pair continues to fall, on talk of possible CNY appreciation, in line with USD/Asians. "The pair broke another key support level at 3.1950 based on charts...and the trend is still downwards at the moment," says dealer; notes no central bank intervention seen. Says next support at 3.1650, then 3.1440; still, there's "likelihood of intervention" as pair trends toward April 23, 2008 low of 3.1310. "It's coming to a point where exporters could be hurt by an overly strong ringgit."

DJ MARKET TALK:OSK Raises LPI Capital Target To MYR15.9;Keeps Buy
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0846 GMT [Dow Jones] STOCK CALL: OSK Research keeps LPI Capital (8621.KU) at Buy, ups target to MYR15.90 from MYR15.50 after insurance underwriter's 1Q FY10 net profit +8% on-year, +6.9% above house estimate. Better numbers due to higher underwriting surplus (doubles vs year earlier), but investment income down 49.4% on-year due to lower dividend from Public Bank (1295.KU). Analyst Lim Mei Ching says gross premium will likely grow further in coming quarters as firm continues to expand agency force, bancassurance, branch network; "we are increasing our gross premium forecast by a marginal 4.7% on-year, which bumps up our net profit forecast by a marginal 3.2% for FY10," says Lim. Stock +0.1% at MYR13.82.


DJ MARKET TALK: Malaysia Shares End +0.1%;1330-1340 Range Eyed
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0910 GMT [Dow Jones] Malaysia shares end higher, benchmark KLCI +0.1% at 1333.98, but off intraday high of 1338.63, led by tech (+2.2%), property (+1.7%) plays; market rising in line with generally positive Asian bourses. Dealer with local bank-backed brokerage says index stays in tight 1332-1338 band, some early gains erased by profit taking late; "the market is in a consolidation phase and will likely continue to drift in the near term," says dealer, tips 1330-1340 range Monday in absence of fresh leads. Market breadth ends positive with 430 advancers vs 243 decliners; advancers are Tan Chong (4405.KU) +13% at MYR4.53 on strong earnings outlook, MISC (3816.KU) +3.9% at MYR8.49 on IPO plans for engineering unit, Unisem (5005.KU) +4.9% at MYR3.00, UEM Land (5148.KU) +5.6% at MYR1.50. Decliners are Petronas Dagangan (5681.KU) 0.8% at MYR9.03, AirAsia (5099.KU) down 2.2% at MYR1.32.


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DJ MARKET TALK: KLCI May Fall, Snapping 11-Day Winning Streak
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0043 GMT [Dow Jones] KLCI may fall amid absence of fresh leads, bringing an end to a winning streak that lasted 11 days, longest in 16 years. KLCI ended +0.2% at 1344.37 yesterday. "We need some bullish developments to sustain the market's run-up, but newsflow has been rather thin this week. Investors may decide to take some profit at this point," dealer says; pegs immediate support at 1338, with resistance at 1350. Oil and gas-related stocks may continue to be in focus amid strong crude oil prices. "Bullish breakouts on oil and gas stocks such as Dialog (7277.KU) and Scomi Group (7158.KU) should accelerate further gains," TA Research says.

DJ MARKET TALK: USD/MYR Lower; Strong Support At 3.1950 - Dealer
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0035 GMT [Dow Jones] USD/MYR lower at 3.2040 vs 3.2100 late yesterday, extending recent downtrend to hit lowest level since May 2008 amid positive outlook for local economy, expectations of rising interest rates, improved risk appetite. But dealers say pair appears poised for rebound; "the pair has been moving downwards almost without stopping and is starting to look overdone. We expect strong support at the 3.1950 level, which should be a bottom for now," one says. Pegs resistance at 3.2200.

DJ MARKET TALK: DRB-Hicom May Rise To MYR1.25 On Potenza Pact
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0024 GMT [Dow Jones] DRB-Hicom (1619.KU) may rise to MYR1.25 (yesterday's high) after signing MOU with UK-based sports car maker Potenza for possible collaboration; DRB-Hicom says both parties will carry out feasilibility study on granting DRB-Hicom exclusive rights to manufacture, distribute Potenza cars for Asia-Pacific markets; collaboration may also include DRB-Hicom being made a development partner on new car models. "This will be a boost to DRB's reputation, but the immediate impact on DRB's bottomline will be rather limited as sports cars are a rather niche market. The market is still waiting for news on Volkswagen," dealer says, referring to recent market speculation Volkswagen, which plans to set up assembly operations in Malaysia to serve regional market, may select DRB-Hicom as a partner. Stock ends 3.2% lower at MYR1.20 yesterday


DJ MARKET TALK: Iris May Rise; Unit Awarded MYR115M LRT Contract
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0009 GMT [Dow Jones] Iris Corp. (0010.KU) may rise to test MYR0.18 (January 18 high), then MYR0.225 (1-year high) vs yesterday's close at MYR0.15 (down 3.2%) says dealer; this after company says unit Iris Information Technology Systems awarded MYR115.2 million contract by state-owned Syarikat Prasarana Negara to design, make, install automatic fare collection system for Prasarana's light rail transit (LRT) Kelana Jaya, Ampang lines in central Klang Valley. Adds, letter of award appoints Indra-Iris AFC Consortium as contractor for project, works to be completed within 15 months. Dealer says contract to raise Iris' top line, while generous margins will likely "significantly boost" its bottom line for 2010, 2011; "this one single contract is equivalent to a third of the company's entire 2009 revenue," dealer says. Iris posted 4Q net profit of MYR3.1 million on revenue of MYR132.5 million.


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