GLOMAC - stock code 5020

Chart wise : Buying volume expanded  ……………

Glomac had on 30/12/2009 crossed over the immediate high of RM1.33 (13/11/2009) to a day high of RM1.37 before settled at RM1.36. 

Next Potential Upside Target : With the upside violation of RM1.33 level, Glomac would thus be likely to trade upward with next upside target at RM1.43 – RM1.46. 

Entry Level  : Risk taking traders may establish buying position at RM1.34.

Stop Loss Level : Once a buying position is being established, a stop loss level at  RM1.26 level  must be placed for risk capital protection purpose followed by trailing stop loss strategy.
source : Mercury Securities

Read More

KNM - waiting for the right time

KNM (stock code 7164)

Chart wise : Waiting for the right time ……………
KNM had on 29/12/2009 crossed over
the immediate high of RM0.755 (17/12/2009) to reach a
day high of RM0.76 before settled at day high. 

Next Potential Upside Target : An upside violation of
RM0.76 level would likely see KNM to trade upward with
next upside target at RM0.80 – RM0.82. 

Entry Level  : Risk taking traders may establish buying
position at RM0.75.

Stop Loss Level : Once a buying position is being
established, a stop loss level at  RM0.71 level  must be
placed for risk capital protection purpose followed by
trailing stop loss strategy.

Read More

KLCI breakout - sell on rally?

Bursa Malaysia shares brokeout from consolidation on Monday, helped by regional and window-dressing gains led by IOI Corp, CIMB, Maybank and Genting which lifted the index to close at a two-week high.  The FBM KLCI rose from opening low of 1,263.34 to close at the day's high of 1,272.73, gaining 8.79 points or 0.7% as 396 gainers led 215 losers on total trading volume of 459mn shares worth RM595.6mn.

Read More

Sapura Crest - stock code 8575

Stock name: Sapcres       Stock Code: 8575

Chart wise : Highest high since 3/8/2007……………
Sapura Crest had on 28/12/2009
gapped up to cross over the immediate high of  RM2.37
(23/12/2009) to reach the highest high of  RM2.42 since
3/8/2007 before settled at RM2.41. 

Next Potential Upside Target : With the upside
violation of  RM2.37 level,  Sapura Crest would thus be
likely to trade upward with next upside target at RM2.60. 

Entry Level  : Risk taking traders may establish buying
position at RM2.40.

Stop Loss Level : Once a buying position is being
established, a stop loss level at  RM2.23 level  must be
placed for risk capital protection purpose followed by
trailing stop loss strategy.

source : Mercury Securities

Read More

Foreign fund return to Malaysia Bursa 2010 - OSK

Foreign interests are expected to go for key blue-chip government-linked companies and blue-chips with regional aspirations

REIGN interests are expected to return to Malaysia's equity market next year due to the announcement of the country's revitalisation and further liberalisation measures.

OSK Research, in its Investment Strategy for 2010, said foreign interests are expected to go for key blue-chip government-linked companies (GLCs) and blue-chips with regional aspirations.

Read More

FBM KLCI - window dressing over?

SHARE prices on Bursa Malaysia consolidated within the confines of range-bound activities ahead of the Christmas holidays. The FTSE Bursa Malaysia Composite Index (FBM KLCI) continued to stay above its critical support of 1,250, closing at 1,263.94 points yesterday.

The FBM KLCI opened marginally higher at 1,267.73 points before slipping to the day's low of 1,255.66 on Monday, giving a day-on-day loss of 11.31 points, or 0.89 per cent.

Share prices opened higher at 1,258.85 points before rebounding to close at 1,260.42 on Tuesday, giving a day-on-day gain of 4.76 points, or 0.38 per cent.

Shares moved sideways in line with the range-bound activities on the regional stock markets on Wednesday. The FBM KLCI closed at 1,260.53 points, with a day-on-day gain of 0.11 point, or 0.01 per cent.

Rebound on regional markets helped lift prices marginally on Bursa Malaysia on the eve of the Christmas holidays. The FBM KLCI closed slightly higher at 1,263.94 points, with a day-on-day gain of 3.41 points, or 0.27 per cent.

Read More

Stock to Watch - Hai-O

…….
Hai-O (stock code 7668 : Bursa Malaysia MainBoard) had on 23/12/2009 broken above the immediate  high of RM8.05  (12/11/2009) to reach a record high of RM8.19 before settled at day low of RM7.85.

Chart wise : Record high 

Price Direction ….. 
In view of  an increase  in market participation, the stock
could be expected to trade sideways in coming day(s) with
support at RM7.50 level. 

What to watch for …. 
A turnaround of prices to close below RM7.20 level would
likely see a reversing direction in the stock.

Read More

ECMLIBRA affirm overweight on call on property

Prime Minister Datuk  Seri Najib  Tun Razak  presented  the  perfect
Christmas gift  to  the Malaysian property market when he  revealed
yesterday  that  the  real  property  gain  tax  (RPGT)  of  5%  will  only apply  to property sold within 5 years of  the date of purchase. This will provide a much needed relief  to the property sector as it sends an  affirmative  signal  that  the  government  will  adopt  an
accommodative  stance  to  support  growth  in  the  property  sector.
With  the relaxation of  the RPGT regime, we believe buying interest
to pick up pace especially among upgraders who have  to sell  their
existing  properties  first. As  such, we  affirm  our  overweight  call  on  the property sector. Top picks are Sunway City and SP Setia.

Maintain OVERWEIGHT
We have upgraded  the property sector earlier  this month  from neutral  to overweight due to the convergence of sustained property demand, despite the RPGT, and recent price correction affecting property stocks which led us  to  believe  that  the  property  sector will be an outperformer going  into 2010. 

We  believe  developers  with  residential  properties  catering  to middle  to upper-middle  class  such  as Sunway City  and SP Setia  to  benefit  from strong demand and hence, rate these two as our top picks for the sector.

Among non-rated property stocks, we also like IJM Land and Mah Sing.

source : ecmlibra

Read More

HIAP TECK VENTURES

HIAP TECK VENTURES :
Stock code 5072

Chart wise : Buying volume expanded………
Hiap Teck Ventures had on  23/12/2009 traded higher to a day high of RM1.54 before settled at RM1.53. 

Next Potential Upside Target : An upside violation of
RM1.57 level would likely see  Hiap Teck Ventures to
trade upward with next upside target at RM1.75. 

Entry Level  : Risk taking traders may establish buying
position at RM1.50.

Stop Loss Level : Once a buying position is being
established, a stop loss level at  RM1.39 level  must be
placed for risk capital protection purpose followed by
trailing stop loss strategy.  

source: Mercury securities

Read More

KLCI CONSOLIDATES : BUY ON DIPS BANKING STOCKS AND TELCO

As the FBM KLCI failed to close above the  50-day moving average, now at 1,262, the technical picture has turned weaker. The probability for a drawn out profit-taking correction has increased. In  the meantime, immediate support remains at 1,254, the 61.8% Fibonacci Retracement (FR) of the upswing from the 1,233 low of 2 November to the 17 November high of 1,288, with the 30 November pivot low of 1,248 acting as critical support preventing further downside risk toward 1,233.  Immediate resistance will be at 1,267, the 38.2%FR, with 1,275, the  23.6%FR level, and then 1,280 and the 17 November pivot high of 1,288 as subsequent tougher hurdles.

Buy on Dips on Banking/Telco Stocks
Maintain call to Buy on Dips banking stocks AMMB, CIMB, Maybank and Public Bank for recovery toward their immediate upside targets, while telco counters Axiata and TM are more attractive to bargain hunt towards RM2.90 for technical rebound gains.

Read More

Zhulian

Zhulian:  stock code:  5131 Main Board

Chart wise  :  Curving up; but, watchful eyes
needed.

Zhulian (5131-MainBoard) had on 22/12/2009 crossed
over the immediate high of RM1.63 (17/11/2009) to reach
a day high of RM1.68 before settled at RM1.67. 

Next Potential Upside Target : With the upside
violation of RM1.63 level, Zhulian would thus be likely to
trade upward with next upside target at RM1.70 – RM1.75.

Entry Level  : Risk taking traders may establish buying
position at RM1.63.

Stop Loss Level : Once a buying position is being
established, a stop loss level at  RM1.52 level  must be
placed for risk capital protection purpose followed by
trailing stop loss strategy.

source: Mercury securities

Read More

BANKING SECTOR OUTLOOK WEEK 21-24 DEC09

Malaysia banking sector call remains OVERWEIGHT

Recent 3QCY09 results further highlighted the resilience of domestic banks in these trying times, with some even reporting record quarterly earnings. The sustained growth of non-interest income and slide in credit costs will drive earnings growth in 4QCY09 and into 2010. We like CIMB  Group Holdings for its regional as well as its strong non-interest income growth going forward. Public Bank continues to be an investment for its superior earnings, ROE and asset quality, while we believe Maybank will finally allay sceptics’ concerns when it continues reporting strong quarterly profits going forward. AMMB Holdings’  forward valuations remain one of the most inexpensive amongst the mid-cap banks and will benefit from strong upward market movements given its higher beta.  

BANKING SECTOR STOCKS UNDER COVERAGE

Company          Call   TP (RM)
CIMB Grp          Buy    15.00
Public Bank       Buy    12.80
AMMB Hdlgs      Buy     5.24
Maybank MAY    Buy     8.10
Hong Leong      hold    8.71

source: Mercury Research

Read More

Bursa Malaysia Banks and Gaming Stocks May Out-Perform

KLSE Banks and Gaming Stocks May Out-Perform
Blue chips on the local stock market staged a mild rebound last week, encouraged by Abu Dhabi’s agreement to provide funds to prevent government owned Dubai World’s property arm from default, but lower liners stayed weak as market breadth remained negative due to weak retail participation.

For the week, the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) rose 6.97 points, or 0.55% to close at 1,266.97, with gains on IOI Corp (+14sen), CIMB (+18sen), Genting Bhd (+19sen) and KLK (+52sen) representing almost all of the index’s rise.  Daily average traded volume and value mildly slowed to 597.1mn shares worth RM863.9mn, compared with the 607mn shares and RM828.3mn average the previous week. (see the attached KLCI chart)

Read More

Malaysia stocks to watch

Stocks to watch: HL Bank, EON Cap, MNRB, PA Resources

While the overall market breadth is expected to be lacklustre in the new trading week ahead on Monday, Dec 21, in the absence of strong external leads including Wall Street, focus will be on Hong Leong Bank and EON CAPITAL BHD

On Wall Street, stocks closed higher on Friday in choppy trade as quarterly results from Oracle and Research In Motion lifted the Nasdaq more than 1%, but the US dollar's climb curbed gains in both the Dow and the S&P 500.

Read More

Bursa Malaysia FBM KLCI to remain at current

SHARE prices on Bursa Malaysia consolidated within the confines of rangebound activities. The FTSE Bursa Malaysia Composite Index (FBM KLCI) continued to stay above its critical support of 1,250 points when it closed at 1,266.97 on Thursday.

The FBM KLCI was relatively unchanged at 1,259.96 before rebounding to close at the day's high of 1,265.45 on Monday, giving a day-on-day gain of 5.45 points, or 0.43 per cent.

The benchmark index opened marginally lower at 1,263.98 before rebounding to close at the day's high of 1,270.81 on Tuesday, giving a day-on-day gain of 5.36 points, or 0.42 per cent.

Read More

Zelan (stock code 2283)- technical oversold?

TA Research Maintain call to
- Take Profit on key banking stocks and
- buy on dips gaming counters Genting Bhd and Genting Malaysia for defensive strategy. 

Meanwhile, the sell-down on Zelan shares the past two days appear overdone, with the low reading on 14-day RSI signaling oversold momentum.  Retailers may look to Buy on Sharp Dip towards the 60sen to 55sen support for technical rebound gains, but place stop-loss below 50sen to limit downside risk.

Read More

HUAAN - Technical pick

HUAAN - RM0.49

Support IS RM0.48             Upside Target  IT RM0.55
             S1 RM0.45                                     T1 RM0.59
             SL RM0.40                                     T2 RM0.64

TRADING VIEW: BUY ON DIP for rebound towards: RM0.55/0.59

Stop Loss:  Below RM0.40 (SL)

click for larger image view:

 

source: TA securities

Bursa Malaysia KLSE technical stock picks

Read More

KLSE stocks ahead : liquidate advised

• 
  
  Banking stocks looking a bit high
  
  
  
• 
  
  FBM KLCI may fall below 1,200 pt
  
  
  
• 
  
  FBM KLCI may have peaked at 1,288.42 pt
  
  
  
• 
  
  Lee urged investors to liquidate their stocks in view of the “steep correction” round the corner
  
  
  

14 Dec: Defensive stocks may not be spared the brunt of an expected “steep correction” in the market ahead, said a technical analyst.

Maybank Investment Bank’s head of retail research, equity markets, Lee Cheng Hooi, who last Friday advised investors to liquidate their stocks, said some key FBM KL Composite Index stock constituents may lead declines in the market.

Among stocks which Lee expects will undergo a correction are YTL CORPORATION BHD, GENTING BHD, BAT Malaysia Bhd and PETRONAS DAGANGAN BHD.

Read More

Stocks to watch: LCL, United Malacca, Milux n SAAG

Asian equity markets could take further cue from US and European stock exchanges that opened higher as Abu Dhabi bailed out troubled Dubai.

Asian markets including Bursa Malaysia on Dec 14 gained after the Abu Dhabi government committed US$10 billion (RM34.1 billion) to the Dubai Financial Support Fund.

The news came as a relief for investors rattled by events in the past month with the Dubai World crisis, especially those exposed to Dubai-based projects.

On the Bursa Malaysia, stocks that could be in focus on Dec 15 include LCL CORPORATION BHD, UNITED MALACCA BHD, MILUX CORPORATION BHD and SAAG CONSOLIDATED (M) BHD.

Read More

LCL Corporation recent

 

Full Name LCL CORPORATION BHD 

Stock Code No 7177

Sector TRADSERV

Latest (delayed) price and chart at LCL Yahoo Finance 

LCL Default in payment

LCL Corp Bhd’s subsidiary has defaulted RM72m of bank  loans  following  the collapse of property prices  in Dubai,making  it  the  first casualty on  the  local stock exchange  in  the aftermath of  the Dubai debacle. LCL said yesterday  it received notice of demand from Affin Bank Bhd for RM22.76m owed in general lines and RM46.66m owed in blanket contract financing.

Its subsidiary LCL Furniture Sdn Bhd has also defaulted RM2.63m of murabahah working capital financing provided
by Bank Islam Malaysia Bhd. “LCL has been severely impacted by the recent financial turnmoil in Dubai, where property prices
have plunged resulting in delay and non payment of its receivables. Hence, LCL and its subsidiaries have been unable to meet its  repayment  obligations,”  the  company  said.  LCL  added  that  prior  to  the  notices  of  demand,  it  has  been  in  regular negotiations with the banks to reschedule its loan payment. However, the defaulted bank borrowings will have a consequence on  the on-going bank borrowings of  the LCL, which will also be declared default by 12 other banks under  the cross default  clause. (Malaysian Reserve dec 11)

 

CIMB Equities Research is maintaining its underperform recommendation on LCL

CIMB Equities Research is maintaining its underperform recommendation on LCL Corp Bhd after the latter's unit defaulted in payment of RM72 million to two banks.

"Our target price remains 25 sen as we continue to tag to the stock an unchanged 75% discount to our 1.8 times target price/book value for the CONSTRUCTION [ ] sector. We reiterate our Underperform recommendation," it said in a research note on Friday, Dec 11.

CIMB Research said the latest news was a major de-rating catalyst, along with worsening newsflow and continuing collection problems in Dubai.

The research house said it expected more loan default announcements by LCL in the coming months unless Dubai's financial position turns around for the better soon.

"We believe this is a less likely scenario. Over the next few months, newsflow for LCL is expected to get worse before it gets better," it said.

The research house said it was unfortunate that LCL had reached this stage. The company offered so much potential two to three years back but its operations and balance sheet were hit hard after working conditions in Dubai deteriorated rapidly in the aftermath of the 4Q08 property crash.

It added the challenges were not just hitting LCL but also hitting hard the main contractors in Dubai, including the Korean and Japanese contractors.  (source: theedge dec 11)

Read More

Stock to watch 11 Nov 09

SP Setia (RM3.59; Buy; Price Target: RM4.80 (prev RM4.45); SPSB MK) 
Staying ahead of The Curve
•  4QFY09 result within our and consensus expectations
•  FY10 sales target to match FY09’s RM1.6b. Key launch
to watch: RM6b KL Eco City in Oct 10
•  Maintain Buy, upgrade TP to RM4.80 (20% discount to revised RNAV of RM5.95). 

Parkson Holdings (RM5.19; Buy; Price Target: RM6.30; PKS MK)
Will be replaced as a FBM KLCI constituent Bursa Malaysia announced that Parkson Holdings will be excluded as a component stock of the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) effective 21 Dec 09 following a semi-annual review. Replacing it on the member list will be Nestle. With the impending changes, there could be some portfolio adjustments by index-tracking funds although we reckon any reallocation would be minimal given their marginal relative weights in the index calculations. Parkson Holdings’ existing relative weight stands at 0.69%. Parkson Holdings remain a Buy from our fundamental perspective, with a RNAV-derived target price of RM6.30.

Berjaya Sports Toto (RM4.20; Hold; Price Target: RM4.40; BST MK) 
Revenue fell, no dividends!
•  Results within our and market’s expectations,
•  No interim dividend declared (2QFY09: 7sen) •  Lower prize payout helped cushion revenue decline
with slower Mega 6/52 sales •  Maintain Hold and TP of RM4.40 (based on dividend discount model)

Plantation sector
Start of low season
•  MPOB Nov palm oil data showed 19.6% m-o-m drop in Stock Picks – Large Cap  Price (RM) 10/12 Target Price Public Bank 10.90 12.20 MISC 8.60 9.60 IJM Corp 4.55 6.00 Gamuda 2.70 4.25 Tanjong 16.42 19.25 production and 1.4%

•  Inventory declined faster than expected to 1.9m MT
•  Low season has kicked in; CPO shipments to India and
China may pick up on soybean oil price premium
•  Reiterate our buy calls on Sampoerna Agro, Wilmar and
First Resources

Comments
DiGi.Com (RM21.24; Hold; Price Target: RM21.00; DIGI MK) 
Signs domestic roaming with U Mobile Digi announced that it has signed a Domestic Roaming (DR) agreement with U Mobile, the only celco with a 3G spectrum, but not a GSM spectrum. The agreement allows U Mobile to handover calls from its 3G network to Digi’s 2G network. Lasting 3 years, the agreement has an option for a 2-year extension.

Based on the industry report by Frost & Sullivan (in Maxis
Bhd’s IPO prospectus), U Mobile has <200k subscribers as at Jun09. In comparison, the celco industry has 28.5m subscribers at that time.  Hence, we see negligible impact on Digi’s earnings. Consequently, U Mobile would end its DR arrangement with Celcom (100%-owned subsidiary of Axiata), which similarly would have negligible impact on Axiata. 
We retain our HOLD call on Digi with a DCF-based price target of RM21.00 and FULLY VALUED call on Axiata with a sum-of-parts price target of RM3.00.

source : HWangDBS Research

Read More

Bursa Malaysia Today's Market Preview

 
It is going to be another dry and slow trading day on the Malaysian stock exchange given the dearth of material news flows on the corporate scene. Still, the benchmark FBM KLCI may seize the opportunity to inch up a bit more ahead after posting a marginal rise of 4.1-point yesterday.  This comes as the latest quarterly financial results for SP Setia and Berjaya Sports Toto – announced last evening – were within expectations. Separately, with the impending inclusion of Nestle and omission of Parkson as a FBM KLCI constituent effective 21 Dec, there could be some portfolio adjustments by index-tracking funds although we reckon any reallocation would be minimal given their relatively small weight in the index calculations. 

Meanwhile, Wall Street extended its rebound last night as major U.S. equity indices increased between 0.3% and 0.7% at the closing bell following a drop in jobless claims.    Malaysia Research Team – 603-2711 2222   Refer to important disclosures at the end of this report. 
source HWangDBS Research

Read More

Malaysia RM61.7 billion infrastucture projects

About RM61.7 billion worth of infrastructure projects could be awarded over the next six to 12 months, AmResearch Sdn Bhd said.

The research house said yesterday that the largest chunk of the projects would be the RM30 billion light rail transit (LRT) extension in the Klang Valley.

They are for the extension of the Ampang/Kelana Jaya line and new Cheras-Kota Damansara line. The companies expected to be in the running for the civil works are the UEM Group, MMC CORPORATION BHD, GAMUDA BHD, IJM Corp Bhd, WCT BHD and MRCB.

The second largest project will be the RM14 billion undersea transmission cable from Bakun dam in Sarawak to the peninsula. The project will be awarded by the federal government and the potential contractors are MRCB and foreign entities.

AmResearch said another project expected to be awarded in the period is the RM5 billion Gemas-Johor Bahru double-tracking project initiated by the federal government. The potential contractor would be Global Rail Sdn Bhd and China Infraglobe Consortium.

The other projects are the tunnelling works for the RM1.3 billion Pahang-Selangor raw water transfer, which are likely to be undertaken by members of the Shimizu-Nishimatsu-UEM-IJM consortium.

Also in the pipeline is the RM4.5 billion Langat 2 Water Supply Scheme, where the water transfer project is expected to be undertaken by Gamuda Bhd and Loh & Loh Bhd. The piping is likely to be undertaken by JAKS Resources Bhd.

“We continue to remain overweight on the steel sector as an anchor reflationary theme. Unlike cement, prices of steel are at the early stages of a cyclical upswing.

“Furthermore, earnings of local steel companies should gain traction as domestic steel demand supplants exports moving into 2010. Within the sector, we continue to like ANN JOO RESOURCES BHD [ ] for leverage to rising steel prices,” it said.

AmResearch cited a news report that BHP Billiton had inked an agreement with Rio Tinto to set up a US$116 billion (RM394.4 billion) joint venture that will combine their Western Australian iron ore operations.

“We understand that a BHP-Rio Tinto marriage in Australia will result in savings on capital and operational costs worth at least US$10 billion a year,” said the research house.

The mining giants each operate extensive rail and port facilities in Western Australia, particularly in the resource-rich Pilbara region.

Both parties expect the deal to be consummated within the second half of next year. Such a move will likely solidify the bargaining leverage of two of the world’s top three global iron ore producers.

By merging their resources in Australia, both BHP and Rio Tinto would have a combined iron ore production of 350 million tonnes. If BHP’s expansion plans remain on track, this would rise to 375 million tonnes next year.

AmResearch said this could have a significant impact on the bargaining leverage of steel millers all around the world, including Malaysia.

Select local players that purchase iron ore as part of their feedstock include Perwaja Holdings — the steel-making arm of the Kinsteel Group — and the Lion Group.

Meanwhile, the research house gathered that Ann Joo Resources Bhd was looking to secure future supply of iron ore ahead of the rollout of its new blast furnace by July 2010.

source The Edge Financial Daily, December 8, 2009.

Read More

SAAG shall jump with the RM406m job awarded

Letter of Award from Garisan Etika Bangladesh (Pvt.) Ltd. to the Company

---

SAAG Consolidated (M) Bhd ("SAAG" or "the Company")
- Letter of Award from Garisan Etika Bangladesh (Pvt.) Ltd. to the Company

The Board of Directors of SAAG is pleased to announce that the Company has on even date accepted a Letter of Award dated 3 December 2009 (the LOA") from Garisan Etika Bangladesh (Pvt.) Ltd. (GEB) whereby GEB has selected the Company as the engineering, procurement and construction contractor for the design, supply, construction, installation, testing, commissioning and completion of 6 X 6 MW DG Power Plant (the 36 MW Plant) and the 2 X 34 MW Combined Cycle Power Plant (the 68MW Plant) [collectively, the Power Plants] at the Adamjee Export.

SAAG Consolidated (M) Bhd has accepted a letter of award from Garisan Etika Bangladesh (Pvt) Ltd (GEB) for power plant projects worth US$120mil (RM406mil)

GEB selected SAAG as the engineering, procurement and construction contractor for the design, supply, construction, installation, testing, commissioning and completion of a 6x6-megawatt (MW) DG Power Plant and the 2x34-MW combined cycle power plant at the Adamjee Export Processing Zone, Bangladesh, it told Bursa Malaysia yesterday.

The agreed execution period was 15 months from commencement of the project works, the company told Bursa Malaysia yesterday, adding that payment would be paid progressively over the project period.

The projects would be funded through bank borrowings, internally generated funds and/or corporate exercises, SAAG said.

They were not expected to have any material effect on the earnings per share of the company for the financial year ending Dec 31, SAAG said

source: thestar biz

Read More

Green Packet, Ranhill, Sime Darby

Stocks to watch: Green Packet, Ranhill, plantation sector stocks, Sime Darby

GREEN PACKET BHD  garnered three separate contracts with companies from Georgia, Armenia and Ukraine to provide its modems. It did not reveal the value of the contracts.

Meanwhile, REDTONE INTERNATIONAL BHD said it would increase the number of locations of its free Wi-Fi hotspots.
Ranhill president and CEO, Tan Sri Hamdan Mohamad has said its second 190MW combined cycle gas turbine power plant in Sabah is expected to be completed by end-2010.

Meanwhile, Standard & Poor's Ratings Services revised the outlook on Ranhill to stable from negative and affirmed the 'B' long-term corporate credit rating on the company.
It also affirmed the 'B-' issue rating on the US$220 million five-year senior unsecured notes due in October 2011.

"We revised the outlook and affirmed the ratings to reflect the improvement in Ranhill's financial risk profile due to lower debt following the transfer of its water assets to the Malaysian government," said Standard & Poor's credit analyst Andrew Wong.
S&P also said Ranhill was moving away from risky ventures by exiting oil exploration projects and focusing on the stable utilities businesses. This alleviated the downward pressure on the rating.

However, it did caution Ranhill's near-term liquidity is weak. The company had unrestricted cash of  RM355 million as at June 30, 2009 was not enough to cover the RM506 million of debt facilities that are due for repayment over the next 12 months. However, most of these maturities are performance guarantees, which will naturally end as projects get completed.

Top plantation analyst, Dorab Mistry, who heads vegetable oils trading at Godrej International said Malaysian palm oil stocks would peak at 2.1 million tonnes in December before declining next year. Yields would be affected by the El Nino.

Separately, Affin Research upgraded the domestic plantations sector to overweight on the back of trading opportunities in the next six months.

Sime Darby said its 75%-owned Sime Darby Water Resources (Perak) Sdn Bhd had executed a groundwater resource development agreement with the Perak government.

Written by Ellina Badri
Friday, 04 December 2009 07:50
theedge malaysia

Read More