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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 May Fall, Led By Property Stks; 1313 Support
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0044 GMT [Dow Jones] KLCI may fall, tracking declines in U.S. stocks overnight, while profit-taking expected following 7-session winning streak; "The index has tried but failed over the the past three days to crack the 1325 barrier. With the weaker U.S. performance, investors will probably want to take some money off the table," dealer says; adds profit-taking likely to be on property stocks like UEM Land (5148.KU), which were among the biggest gainers this week. TA Research pegs immediate support at Monday's low of 1313, with resistance at 1325. KLCI +0.1% at 1320.57 yesterday

DJ MARKET TALK: General Corp May Rise On 4Q Turnaround
0039 GMT [Dow Jones] Property and construction firm General Corp (3166.KU) may rise to test recent high of MYR1.42, says dealer with local brokerage; this after company posts 4Q profit of MYR25.4 million vs loss of MYR10.2 million a year earlier; takes FY10 (ended Jan. 31)'s net profit to MYR85.4 million vs MYR14.9 million in FY09. Company attributes improved earnings to construction projects such as Hard Rock Hotel at Sentosa, Meritus Mandarin Hotel at Orchard Road, commencement of new project at Serangoon Central Mall in Singapore; expects to focus on cost cutting strategies and operational efficiency to sustain earnings. "The earnings are better than expected and will give a boost to the stock price," says dealer; adds higher final dividend of 3 sen/share vs 2 sen/share a year earlier likely to support interest. Stock closed down 2.9% at MYR1.34.

DJ MARKET TALK: Berjaya Corp May Fall On 3Q Loss Of MYR155.1m

0034 GMT [Dow Jones] Berjaya Corp (3395.KU) may fall to MYR1.63 (Tuesday's intraday low) vs yesterday's close at MYR1.75 (+1.7%) says dealer; this after conglomerate posts fiscal 3Q (to January 31) loss of MYR155.1 million vs net profit of MYR17.9 million year ago; 9-month loss of MYR61.4 million vs net profit of MYR61.5 million previously. Company says poor results mainly due to one-off loss arising from dilution of interest in subsidiary companies. Also, weaker operational profits due to seasonal factors (timing of Lunar New Year in Feb this year vs January in 2009) affecting gaming sector, weaker earnings from hotels, resorts. Dealer says although most of the 3Q loss arising from non-cash items, some investors will likely sell stock on news; still, says losses may be contained as "there's a silver lining with property, hotels and direct selling businesses likely to show better results going forward."

DJ MARKET TALK: Oversea May Rise 10-20% On ACE Market Debut

0009 GMT [Dow Jones] NEW LISTING: Oversea Enterprise (0153.KU) may rise 10-20% vs IPO price of MYR0.23 on debut on Bursa's ACE Market, says dealer with local brokerage. "The restaurant operator's public tranche of 12 million IPO shares was oversubscribed by 10.3 times, suggesting that there is interest in the stock," says dealer. But OSK Research's analyst Law Mei Chi says Oversea's offer price of MYR0.23, which values the company at 7.8X FY10 EPS, is fair given that its earnings are relatively less vs peers which are trading in the range of 9-11X P/E. Oversea has a well established presence with over 30 years of culinary expertise; has consistent track record with revenue registering a stable growth at a 3-year CAGR of 3.4%, while pretax profit up 20.1% over the same period, largely driven by better cost management via centralized procurement over the years. Projects company to post net profit of MYR7.2 million in FY10, MYR8.7 million in FY11.

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