20050930 Market Roundup JetFM-Budget 2006 day

Budget pushes the market higher
 
At 5 pm, the Kuala Lumpur Composite Index (KLCI) gained 3.31 points to 927.54. Volume expanded to 443.62 mln shares valued at RM780.04 mln. Gainers outpaced losers 362 to 305, while 352 counters were unchanged and 397 untraded. The Emas Index added 0.49 points to 211.02, while the Second Board advanced 0.21 points to 87.48. Among blue chips, Tenaga was unchanged at RM10.80, while both Malayan Banking at RM11.60 and Telekom at RM10.40 were higher by 10 sen.
 
Asian Pac Holdings was higher on a report that the property developer expects 40% higher net profit and an increase of more than 50% in revenue in the current year to March 2006. Asian Pac rose 0.5 sen to 12 sen. The New Straits Times reported, quoting Asian Pac's property division CEO Chuah Swee Guan as saying, that the forecasts are based on the company's internal projections. In the year to March 2005, the company posted a net profit of RM12.08 mln on sales of RM195.15 mln. Asian Pac at 12 sen added 0.5 sen.
 
Berjaya Sports Toto's shares will resume trading next Tuesday following the completion by the company of capital distribution of 50 sen cash a share, a stock exchange circular said. The company is proposing capital distribution of 50 sen cash per share, which will result in the face value of its shares being cut to 50 sen each from RM1.00. Trading in the stock has been suspended since September 12. The stock was last traded at RM4.50.
 
Melewar Industrial Group was lower after its net profit for the 2nd quarter to July fell 92.1% to RM1.25 mln from RM15.94 mln a year earlier, as its profit margins were squeezed by higher raw material costs and lower selling prices. However Melewar Industrial closed the day higher by 1 sen to RM1.45.
 
VS Industry firmed 3 sen to RM1.21 after the company reported that its net profit for the year to July rose sharply to RM19.8 mln from RM6.92 mln a year earlier, boosted by improved sales volume at its Malaysian operations, coupled with higher contributions from its associate with operations in China.
 
Hovid was higher after proposing a 3-for-5 bonus issue of up to 57.15 mln shares. Hovid gained 2 sen to RM1.93. Carotech also was higher after proposing a 3-for-5 bonus issue of up to 171.05 mln shares. The stock was up 7 sen at 62.5 sen. Megan Media Holdings was down 1 sen at RM1.09 after the company said its net profit for the 1st quarter to July fell 9.3% to RM12.96 mln from RM14.3 mln a year earlier due to higher financing costs. Poh Huat Resources dropped 5 sen to 55 sen after it posted a sharp fall in its net profit for the 3rd quarter to July.
 
Proton Holdings shed 10 sen to RM8.25 after the company said it has not considered making any capital repayment to shareholders. KNM Group was higher on its transfer to the Main Board of Bursa Malaysia today from the Second Board. The stock was unchanged at RM3.70. Construction-linked stocks were higher. MRCB was the most active with 18.53 mln shares done, adding 2.5 sen to 65.5 sen. UEM Builder was 1.5 sen higher at 68.5 sen and UEM World 1.5 sen at 61.5 sen.
 
The Nikkei was moving towards a new 4-year closing high on Friday but gains were curbed by the release of economic data that sent mixed signals over the country's economic recovery. The Nikkei 225-Average was up 0.32% at 13,574.30. According to data available on Friday morning, Japan's industrial production rose and unemployment fell marginally in August. But the picture of a steadily improving economy was tempered by a slight fall in household spending and continued deflation. Both the crude oil and steel sectors were among the major losers. Technology stocks were generally strong, following a 1.22% rise in the US NASDAQ Composite overnight. Regional bourses were mixed in performance, Hong Kong's Hang Seng at 15,428.52 (-0.02%); Singapore's STI at 2,305.14 (+0.25%); South Korea's KOSPI at 1,221.01 (-0.83%); Taiwan's TWSE at 6,118.61 (+1.81%); Thailand's SET at 723.11 (+0.04%); Philippines' PCOMP at 1,942.07 (-1.43%); Indonesia's JCI at 1,079.275 (+2.95%).

20050930 Hwang DBS Daily Focus

 Highlights

> Banking sector - Strong loan growth indicator - Maintain Overweight
>
> Coming in at RM18.25bn, Aug 05 loan approvals were the largest in the last
> two years. We read this as an indication that the loan growth momentum is
> unlikely to ease in the short term. The approval figures also indicate
> that hire purchase is expected to take the lead from mortgages as the key
> loan growth driver. This is in line with a slowing property market and an
> already large mortgage base. With only four month till year-end and y-o-y
> loans chugging along at >8% y-o-y for the last eight months, we foresee
> 2005 loan growth to reach 7-7.5%. We maintain our overweight call on the
> banking sector with PBB-F (PBKF MK) as our top pick with a price target of
> RM7.80, which has factored in potential for special dividends. We also
> like Maybank (MAY MK) as a dividend play RHB Capital (RHBC MK) is
> attractive for its turnaround story and M&A potential.
>
> 
>
> Megan Media - 1QFY06 results - Maintain Buy
>
> 
>
> Annualised, Megan Media's 1QFY06 results looks to be below our
> expectations. However, we expect stronger quarters ahead. In FY05, 1Q net
> profit was 21.6% of full year net profit. The gearing situation remains a
> concern and the management has indicated that they are looking into ways
> to reduce the loans but no details were given. Maintain our Trading Buy
> recommendation due to low PE of only 3.0x FY06 EPS. We also maintain our
> price target of RM1.60.
>
> 
>
> Comments
>
> 
>
> Astro - Dividend ex-date - Maintain Buy
>
> 
>
> The company announced an interim dividend of 1.5 sen per share earlier. Ex
> Date is 14 October 2005. This is in line with our expectation of a 3.5 sen
> dividend/share for FY06. While this compares favourably to the 2.5 sen
> total dividend declared for FY05, FY06 dividend yield remains low for
> Astro at 0.6%. Maintain Buy with RM7.25 price target, based on DCF
> valuation.
>
> 
>
> Ann Joo - Ann Joo to achieve higher synergies with Malayawata - Maintain
> Fully Valued on Ann Joo
>
> 
>
> Flat steel products producer, Ann Joo has announced a conditional
> voluntary offer to acquire the remaining 67.9% of shares not already owned
> in Penang-based Malayawata Steel. Recall that Ann Joo had purchased its
> initial 30.03% stake in Malayawata for a total consideration of about
> RM201 m in year 2001 (RM3.33/share). We think that the implementation of
> the corporate proposal should be positive in the long term as Malayawata
> is a major long products producer in Malaysia which should be
> complimentary to Ann Joo. Note also that one of the main reasons the
> international steel industry enjoyed bumper profits last year was due to
> the mergers of many smallish steel players which resulted in scale
> economies and higher efficiencies. A larger sized steel player is usually
> able to wield more muscle in raw materials procurement, a vital ingredient
> for successful cost containment especially in highly cyclical sectors such
> as steel.
>
> 
>
> Although we do not foresee any significant catalysts in the immediate term
> for the local steel industry, we note that international prices of steel
> have been firming up with large international players like Europe's
> Arcelor, Germany's Thyssen Krupp and India's Tata Steel increasing prices
> of steel products for November delivery, ranging from increase of 8%-15%.
> However, we remain underweight on the Malaysian steel sector with
> potential for review pending the implementation of the 9MP, due to the
> lack of other significant demand catalysts.
>
> 
>
> We are currently maintaining our Fully Valued call on Ann Joo and price
> target of RM1.50 based on 12x CY06 earnings due in large to industry-wide
> negative sentiments and pending further details on the corporate proposal.

20050930 Technical Outlook JetFM

Technical Outlook ( 30/9/2005 ) by Jupiter Research
While everyone in the country is anxiously waiting for the Budget announcement, traders too were reluctant to actively participate in the stock market; as a result, CI merely fluctuated between 927.57 and 922.72 before closed at 924.23.
 
CI is in a good position as the stock index still trending in an upward sloping manner. CI may have not closed above 930 in last 2 days; but it could if the overall stock market situation warrants such a move.
 
As it always is, traders prefer to keep their portfolio risk exposures to a minimum level in an uncertain trading environment. Nevertheless, CI must close above 930 in order to see more buying interests flowing into the stock market.
 
For Friday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 926.96 & 929.69. 1st and 2nd support levels will be 922.11 & 919.99.
 
Chart wise: While 930 is a level to watch if the CI were to go higher; however, 915 is also another important level to keep eyes on, as the new direction of CI is likely to be "determined" by how CI performs in these 2 levels.
 
Technical wise: MACD line and signal line have entered into the positive territory. Directional Movement Index showed that +DMI was still above the -DMI. On Stochastics indicator, both %K line & %D line has slipped into overbought zone with %K line cut down the %D line to emit a sell signal.
 
Our stock recommendation for today is:
Harn Len Corp (Trading Buy) at 52.5 sen with stop loss at 45 sen
Rohas Euco Ind (Trading Buy-Medium Risk) at RM1.00 with stop loss at 93 sen
Johore Tenggara Oil Palm (Trading Buy) at RM1.21 with stop loss at RM1.13

20050929 Market Roundup JetFM

Better tomorrow
 
At 5 pm, the Kuala Lumpur Composite Index (KLCI) lost 0.27 points to 924.23. Volume expanded to 378.76 mln shares valued at RM742.33 mln. Losers outpaced gainers 362 to 289, while 359 counters were unchanged and 404 untraded. The Emas Index added 0.09 points to 210.53, while the Second Board increased 0.28 points to 87.27. Share prices closed slightly lower in range bound trade, with renewed concerns over rising crude oil prices offsetting bargain hunting ahead of the federal budget announcement tomorrow. Trading continued to be sluggish in the absence of market moving news, with most investors remaining cautious. Among blue chips, Malayan Banking at RM11.50 was unchanged, while both Tenaga at RM10.80 and Telekom at RM10.30 advanced 10 sen. Time dotCom at 67 sen gained 1 sen was again the most active counter with 15.58 mln shares done.
 
Khazanah National has bought a 16.82% stake in Indonesia's cellular operator PT Excelcomindo Pratama, an official with the local company said. Telecom owns a 25% stake in Excelcomindo. Seperately, PT Excelcomindo Pratama said it expects its full-year net loss to widen to around IDR300 bln this year from IDR50 bln last year, due to foreign exchange losses. It currently holds USD350 mln bonds due 2009, plus USD70 mln in short-term loans. Excelcomindo has just raised IDR2.86 tln from the sale of 1.427 bln shares via an initial public offering last week.
 
Proton Holdings was down 15 sen at RM8.35 on concerns that its lengthy talks with Volkswagen on a strategic alliance may drain its finances. ES Ceramics Technology shed 4 sen to 55.5 sen on talk of selling by investors looking for quick gains.
 
Fotronics Corp edged up 6 sen to 65 sen after announcing that its shares would trade ex-bonus from October 13, with the entitlement date set for October 17. mTouche Technology was down 1 sen at RM1.94 as investors reacted negatively to its planned private placement of up to 7.45 mln shares.
 
KNM Group surged 24 sen to another high of RM3.70 ahead of its scheduled transfer to the Main Board tomorrow. KNM will be transferred to the Main Board under the Industrial Products sector. Its stock short name, number and ISIN Code remain the same. Zecon's announcement that it was taking a major stake in Setron, saw the latter's share price rising 19.5 sen to 76.5 sen and the warrants 11.5 sen to 40.5 sen. However, Zecon fell 2 sen to RM1.33.
 
Among highlights for today, Malakoff at RM7.80 (+15 sen); Southern Bank at RM3.50 (+2 sen); Malaysia Airline System at RM3.30 (-2 sen); AirAsia at RM1.56 (-3 sen); Malaysian Plantation at RM2.43 (+3 sen); Tanjong Plc at RM14.30 (-20 sen); Malaysia Steel Works at 70.5 sen (+2.5 sen); Subur Tiasa Holdings at RM2.76 (unchanged); Land & General at 14.5 sen (-0.5 sen); Glomac at RM1.29 (-2 sen); Gamuda at RM4.50 (unchanged); Lion Industries at 89 sen (-1 sen).
 
Tokyo shares reached fresh 4-year highs on Thursday as the release of promising retail sales data bolstered the view that Japan's economic recovery is on a steady recovery path. The benchmark Nikkei 225-Average closed up 1.35% to 13,617.24, breaking the 13,500-level barrier and closing at its highest level since May 2001. Government data released before the market open showed that retail sales in Japan rose 1.5% in August from a year ago, underlining that domestic demand has rebounded. Investors are looking ahead to Friday's release of data on industrial production and consumer price inflation, also expected to be positive. Bank shares were broadly higher after a Bank of Japan policy board member, Miyako Suda, widely seen as a policy hawk, said the central bank could abandon its ultra-easy monetary policy within the next 6 months. Banking shares rallied on the expectation that the move could pave the way for banks to impose higher lending rates. Steel maker continued their rally as investors poured more money into cyclical stocks.
 
Among the top gainers in the region were Hong Kong's Hang Seng at 15,431.25 (+1.38%), Taiwan's TWSE at 6,009.99 (+1.33%), Indonesia's JCI at 1,048.302 (+1.99%) and South Korea's KOSPI at 1,231.22 (+0.22%). The losers included Singapore's STI at 2,299.29 (-0.11%),Thailand's SET at 722.76 (-0.06%) and Philippines' PCOMP at 1,970.19 (-0.30%).

20050929 Technical Outlook JetFM

CI may have reached an intraday high of 929.52 before settled at 924.5, 0.3 point away from the low of the day.
 
It is in fact crucial to see CI not only crossing over the 930-level; but also to close above this level at least three days in a row to gauge the strength of a subsequent up move.
 
As we will all be hearing 2006 Budget on Friday, "Funds" have also decided to take the unnecessary risk by not locking in some of the profits in their stock portfolio. A realized profit is only considered a real profit in the pocket.
 
With this settlement level, CI may have some hard times going above 930-level, unless the Budget really has something tremendous to offer to the stock market. Otherwise, traders will continue to lock in their gains, once that happen, CI would be under pressures to go lower.
 
For Thursday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 927.95 & 931.39. 1st and 2nd support levels will be 922.63 & 920.75.
 
Chart wise: The closing of CI at the low level has in a certain extent given out a signal that the stock index is kind of "toppish" near 930-level.
 
Technical wise: MACD was in the positive territory. Directional Movement Index showed that +DMI was above the -DMI. On Stochastics indicator, both %K line & %D line has slipped into overbought zone with %K line has just cut down the %D line to emit a sell signal.
 
Our stock recommendation for today is:
Hing Yiap Knitting Ind (Trading Buy) at 42.5 sen with stop loss at 38 sen

20050929 Hwang DBS Daily Focus

Highlights
>
> Tanjong plc - Weaker 2H expected - Maintain Hold
>
> Tanjong's 2QFY06 NI (+20.7% y-o-y to RM117.7m) was better than expected,
> boosted by an estimated RM15m exceptional item (mainly from the property
> division which gained c.RM10m from back-dated rental billings). However,
> we estimate that core NI rose by just 2.7% as a strong performance at the
> NFO division was mostly offset by a shortfall at Tropical Island (TI).
> Looking forward, there could be some downside to our FY06 forecast
> (unchanged) in anticipation of much weaker 2H results, factoring in a
> scheduled rise in maintenance costs at Powertek and continuing losses at
> TI. Maintain our Hold call, but we may revise up our RNAV-based target
> price of RM13.60 as the company is expected to clinch a major IPP deal by
> 1Q06.
>
> Gamuda - Laos project to be delayed slightly - Maintain Trading Buy
>
> Gamuda's 4Q05 net profit declined 6% y-o-y to RM62.3m largely because of
> weaker construction earnings. The drop was cushioned by a lower tax rate
> of 21% for 4Q05 (28% for FY05) and lower minority interest. YTD net profit
> of RM265.8m (-10% y-o-y) is 3% below our estimates and 7% below consensus.
> The Group declared final gross dividends of 9 sen, bringing YTD gross
> dividend to 16 sen (FY04: 21 sen including special of 5 sen). There may be
> weakness due to the delay in the Laos power project. In the longer term,
> this may be compensated by new Middle East projects. We maintain our
> trading Buy call with a RM4.80 price target.
>
>
>
> Comments
>
> Southern Bank-F - Acquisition of Asia General - Maintain Hold
>
> The Asian Wall Street Journal (AWSJ) said that the Selangor royal family,
> who owns 10% direct stake in Southern Bank (SBB) is against the banking
> group acquiring a 40% stake in Asia General at S$919m. Citing sources,
> AWSJ said royalty is interesting in disposing SBB, and the acquisition of
> Asia General would make such disposal difficult. CIMB was also cited as a
> strategic acquirer of Southern Bank.
>
> (Recall that CIMB (CBB MK, not rated), which is part of corporate banking
> group, Commerce Asset (CAHB MK, Hold) while SBB is a small retail bank.)
>
> Additionally, the AWSJ reported that SBB made a S$50m deposit for the
> purchase of Asia General, which is at risk of being forfeited if the
> acquisition fails. However, there are circumstances permitting a refund of
> this deposit, which include failing to secure approvals from regulator of
> Malaysia and Singapore. Hence, in the worst case, the S$50m (RM111.5m) is
> forfeited. This would hurt SBB's after-tax EPS by 5.4 sen, i.e. 22.4% or
> 18.9% of either FY05 or FY06 earnings respectively, depending when the
> charge may be taken. The acquisition of Asia General is due for completion
> end-05 or early-06. If forfeited, it is likely to be treated as a one-off
> item.
>
> We have not incorporated the financials of Asia General in our model, and
> thus would maintain our forecasts, Hold rating and price target of RM3.70,
> pending further clarification from management.
>

20050928 Market Rundup JetFM

No catalyst
 
At 5 pm, the Kuala Lumpur Composite Index (KLCI) lost 3.21 points to 924.50. Volume expanded to 463.59 mln shares valued at RM724.22 mln. Losers slightly outpaced gainers 342 to 322, while 355 counters were unchanged and 396 untraded. The Emas Index dropped 0.60 points to 210.44, while the Second Board added 0.03 points to 86.99. Share prices ended lower in sluggish trade as most investors kept to the sidelines ahead of the Malaysian budget announcement on Friday. Economists polled by XFN-Asia said the budget is likely to be slightly expansionary and that the stock market is not expected to see any major catalysts. Among blue chips, Tenaga was lower by 10 sen to RM10.70, Malayan Banking closed at RM11.50 down 20 sen, while Telekom was unchanged at RM10.20. ES Ceramics Technology has made a strong debut in the early trade on the MESDAQ Market, however it closed at 59.5 sen only 4.5 sen premium over its offer price of 55 sen. The most active counter for today was Time dotCom at 66 sen gained 1.5 sen with 25.21 mln shares done.
 
British Airways (BA) has given another strong hint that it may return to the London-Kuala Lumpur route in the near future, said Malaysia Airports Holdings officials. BA officials had acknowledged that the Malaysian is the largest un-served market in the region by the carrier. They noted that huge market potential with some 345,000 passengers traveling between the UK and Malaysia last year. That was an increase of the total 316,750 total passenger traffic between the UK and Malaysia in 2003. Malaysia Airports at RM2.06 was unchanged.
 
Proton has come up with a preliminary list of 30 to 40 potential candidates, including some foreigners, to fill its vacant CEO position, said its chairman Dato' Mohamed Azlan Hashim. He also announced that Proton was recalling 2,996 units of Waja 1.6 sold from June 2004 to January 2005 due to possible crack in alloy wheels. On talks with Volkswagen (VW), Azlan said the negotiations were ongoing, with VW expressing interest in taking up a stake in Proton. He said the national interest in Proton would be intact in terms equity and management. Proton at RM8.50 improved 10 sen.
 
Fotronics Corp edged higher by 5 sen to 59 sen on a report that the company expects earnings growth for the current year to March 2006 to surpass the 25% growth achieved a year earlier, driven mainly by demand for digital optic parts for mobile phones. Hiap Teck Venture was lower in afternoon trade after reporting that its net profit for the year to July fell 8.3% to RM37.91 mln due to lower steel prices and losses incurred by its rolling mill. The stock was down 1 sen at 96.5 sen.
 
Green Packet was down 4 sen at RM1.77, shedding its earlier gains on an announcement that its subsidiary Green Packet Taiwan has won a contract from Taiwan's Chunghwa Telecom Laboratory. MEMS Technology was up 0.5 sen at 66.5 sen after reporting that its net profit for the year to July rose 67.3% to RM13.7 mln from RM8.19 mln a year earlier, driven mainly by sales of higher margin products and services, coupled with lower product development costs.
 
Among highlights for today, Ingress Corp at RM1.18 (unchanged); Malaysian Mosaics at RM1.37 (+3 sen); Hap Seng at RM2.19 (-1 sen); SP Setia at RM3.84 (unchanged); Gamuda at RM4.50 (+6 sen); Johor Port at RM2.12 (+7 sen); AirAsia at RM1.59 (+1 sen); Malaysia Steel Works at 68 sen (+6.5 sen); Scomi Group at RM1.17 (-2 sen); MMC Corp at RM2.19 (-1 sen); Hovid at RM1.90 (unchanged); George Kent at 62.5 sen (+0.5 sen); NasionCom Holdings at 19.5 sen (-1 sen).
 
Japanese shares closed at fresh 4-year highs on Wednesday, as investors continued to snap up shares of blue chips and exporters on optimism that the impending release of important economic data will underline the strength of the country's recovery. The benchmark Nikkei 225-Average was up 0.95% to 13,435.91. Investors expect the Bank of Japan's authoritative Tankan survey of business sentiment on Monday to show an increase in confidence among leading manufacturers.
 
Regional indices were in the red except for Hong Kong's Hang Seng at 15,221.46 (+0.21%) and South Korea's KOSPI at 1,228.57 (+1.57%); Singapore's STI at 2,301.84 (-0.20%); Taiwan's TWSE at 5,931.38 (-0.23%); Thailand's SET at 723.22 (-0.14%); Philippines' PCOMP at 1,976.10 (-0.42%); Indonesia's JCI at 1,027.888 (-0.94%). A survey last week says Latin America is the favoured emerging market for now. 

20050927 Market Roundup JetFM

Market Roundup ( 27/9/2005 ) by Jupiter Research
Plantation stocks in focus
 
At 5 pm, the Kuala Lumpur Composite Index (KLCI) gained 2.58 points to 927.71. Volume expanded to 454.59 mln shares valued at RM714.53 mln. Losers outpaced gainers 389 to 291, while 326 counters were unchanged and 410 untraded. The Emas Index added 0.50 points to 211.04, while the Second Board fell 0.18 points to 86.96. Share prices ended the day in quiet trade, with concerns over rising crude oil prices offsetting gains resulting from bargain-hunting, while most investors refrained from taking any heavy position ahead of the 2006 Malaysian budget presentation to parliament this Friday. Among blue chips, Tenaga was higher by 10 sen to RM10.80, Malayan Banking closed at RM11.70 up 20 sen, while Telekom dropped 20 sen to RM10.20. Cam Resources at 33 sen advanced 3 sen was the most active counter with 24.30 mln shares done.
 
Plantation stocks were higher on September 27, buoyed by higher crude palm oil prices that hit RM1,443 per tonne. PBB Oil Palms was 14 sen higher at RM4.78, IOI Corp 20 sen to RM12.00, Kuala Lumpur Kepong  5 sen to RM7.55, United Plantations 5 sen to RM6.30 and Asiatic Development 5 sen to RM2.24. IOI Corp said Tuesday that it was 1 of the 10 bidders for the bio-diesel plant. The confirmation came from group executive director Dato' Lee Yeow Chor who, however, declined to say whether its bid has been successful. The Malaysian Palm Oil Board (MPOB) had announced yesterday that it received 10 bids for 3 bio-diesel plants, with an annual capacity of 60,000 tonnes of bio-diesel each. MPOB will invest RM20 mln in each of the plant, with 2 of them to be located in Port Klang, Selangor, and 1 in Pasir Gudang, Johor. MPOB director-general Tan Sri Dr Yusof Basiron said the 3 plants would be on a 50:50 joint venture basis with 3 local partners expected to start operations within 12 months.
 
Kulim has embarked on a RM160 mln project to expand its Pasir Gudang oleochemical plant, which would more than double the annual capacity to 380,000 tonnes from 150,000 tonnes now. Kulim managing director Ahamad Mohamad said he expected demand for oleochemical products to increase, especially against the backdrop of high crude oil prices. Kulim at RM2.82 dropped 1 sen.
 
Malakoff was higher on its earnings outlook and defensive qualities, Malakoff rose 5 sen to RM7.65. KNM Group was higher ahead of its transfer to Bursa Malaysia's Main Board on Friday, supported by expectations of rating upgrade. KNM was up 2 sen at RM3.44.
 
Among highlights for today, Genting at RM21.50 (+10 sen); Resorts World at RM11.00 (+10 sen); MISC at RM18.70 (+20 sen); Malaysian Bulk Carriers at RM2.27 (+3 sen); KPJ Healthcare at RM1.56 (-1 sen); Hexagon Holdings at RM3.34 (+4 sen); Sime Engineering Services at RM1.04 (-6 sen); Ranhill at 97 sen (+4 sen); Muhibbah Engineering at 74 sen (unchanged); Malaysian Airline System at RM3.26 (-4 sen); AirAsia at RM1.58 (-1 sen); Tenggara Oil at 52 sen (+1 sen); Ya Horng Electronic at 93 sen (-0.5 sen); Zecon Engineering at RM1.35 (unch); Setron at 58 sen (-2.5 sen); Scientex Packaging at RM2.00 (unch).
 
Tokyo's Nikkei 225-Average fell 0.62% to 13,310.04 on Tuesday after investors sold shares on concern that a recent rally may have been overdone. But optimism about the strength of Japan's economy helped push steel makers and machinery makers higher. The Nikkei has gained 15.9% so far this year and 7.2% just this month. The benchmark has set 4-year closing highs in 3 of the past 5 sessions. Machinery makers gained after a government survey on Monday showed that large manufacturers' business sentiment improved for a 2nd straight quarter in July-September and looked likely to brighten further in the next 2 quarters. Insurers, many of which had made strong gains in recent sessions, fell, making the sector the biggest percentage loser among the industry sub-indexes.
 
Hong Kong's Hang Seng at 15,189.88 (-0.55%) and Singapore's STI at 2,306.50 (-0.48%) were the only losers in the region; South Korea's KOSPI at 1,209.63 (+0.27%); Taiwan's TWSE at 5,945.05 (+0.25%); Thailand's SET at 724.71 (+0.48%); Philippines' PCOMP at 1,984.49 (+1.52%); Indonesia's JCI at 1,037.634 (+0.29%).

20050927 Technical Outlook JetFM

Technical Outlook ( 27/9/2005 ) by Jupiter Research
Encouraged by the stock index futures good performance, CI went up to an intraday high of 926.88 before settled at 925.13. CI is obviously moving one step closer to 930 resistance level.
 
930 level may look so near; but, it may also look "so far" to be broken as first round of profit taking activity is expected to roll in to curb stock index advances. Of course, CI would not just give way that easily, it would do its utmost to keep its flag flying higher.
 
Nevertheless, if 930 level were to be breached convincingly, CI is likely to test 940 - 945 level. Otherwise, second round of profit taking activities are believed to come into the market in a big way, which would eventually push the CI down.
 
For Tuesday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 927.42 & 929.71; 1st and 2nd support levels will be 922.30 & 919.47.
 
Chart wise : CI has to clear the 930 level before it could rise further. 930 level is believed going to pose a strong resistance to the CI.
 
Technical wise : MACD has just barely crossed over into positive territory. Directional Movement Index shows that +DMI is above the -DMI, and +DMI is seen moving away from -DMI. On Stochastics indicator, both %K line & %D line has already stepped into the overbought zone.
 
Our stock recommendation for today is :

20050927 Hwang DBS Daily Focus

Highlights
>
> MISC-F Bhd - Only short term opportunity - Maintain Fully Valued
>
> The Baltic Dirty Tanker index has increased 41% since early-August 2004 on
> seasonal orders and higher demand resulting from the hurricanes in the US.
> MISC's petroleum division has the world's second largest fleet of Aframax
> vessels and will benefit from the upswing in tanker rates. However, the
> exact quantum will depend on the extent of the hurricane-boosted demand.
> MISC may gain on this short term exuberance, but we maintain our Fully
> Valued recommendation and RM17.20 price target as MISC's valuations have
> run ahead of its key LNG and petroleum peers.
>
> 
>
> Comments
>
> Tenaga Nasional - Tenaga awards 10MW of REPPA - Maintain Buy
>
> Tenaga Nasional has signed an agreement for the purchase of electricity
> generated by a small Renewable Energy (RE) power project developed by MHES
> Asia Sdn Bhd under the Small Renewable Energy Power Programme or widely
> known as SREP. Tenaga has agreed to purchase the electricity from MHES
> Asia for a period of 21 years and the estimated value of the agreement was
> about RM13.4m p.a.
>
> The RE power plant developed by MHES Asia, which uses oil palm waste as
> biomass fuel will be located in Serting, Negeri Sembilan and will have an
> export capacity of 10MW to Tenaga. With the signing of the agreement,
> Tenaga has to date signed six renewal energy power purchase agreements
> (REPPAs) with a total capacity of 36.2 MW. This 10MW additional capacity
> is small relative to the industry's capacity of near 18,000MW. Albeit
> small, the signing of this agreement demonstrated the continuous support
> given by Tenaga for the success of the Government's SREP Programme.
>
> We are neutral towards this development amidst high reserve margin of
> approximately 40%. At RM13.4m p.a., we estimate this REPPAs' agreement to
> be worth approximately RM0.17/Kwh - 0.19/Kwh based on 80%-90% despatch
> requirements, slightly higher than current IPP's average rate of around
> RM0.15/Kwh. But we only expect marginal impact on the bottom line of
> Tenaga.
>
> Separately, it was reported that the general manager (distribution) of
> Tenaga in Malacca has been given a 48-hour transfer order out of the state
> following negative publicity in the past few weeks over its alleged
> failure to provide supply to several factories. We view this development
> positively as it shows Tenaga's commitment and ongoing restructuring
> process to rejuvenate the company, shed its old image and be responsive to
> customers' complaints. Hence, we maintain our Buy recommendation with a
> RNAV-based RM12.00 price target.

20050926 Market Roundup JetFM

Inline with regional trend
 
At 5 pm, the Kuala Lumpur Composite Index (KLCI) gained 3.24 points to 925.13. Volume expanded to 460.07 mln shares valued at RM768.64 mln. Losers outpaced gainers 368 to 320, while 319 counters were unchanged and 408 untraded. The Emas Index added 0.64 points to 210.54, while the Second Board lost 0.12 points to 87.14. Share prices were mixed to firmer in range bound trade, with light bargain hunting in selected blue chips keeping the benchmark index in positive territory, while most investors stayed on the sidelines ahead of the Budget 2006 proposals on September 30. Among blue chips, Tenaga was unchanged at RM10.70, Malayan Banking closed at RM11.50 down 10 sen, while Telekom was higher by 10 sen to RM10.40. Telekom's subsidiary Celcom is targeting to launch its prepaid 3G services by year-end as well as increase its 3G coverage to include 4 more states as early as next year, said its Chairman Tan Sri Md Radzi Mansor.
 
The Singapore Tourism Board (STB) said it will only start seeking proposals for 2 integrated resort and casino projects at the Marina site by the end of November and in 1st quarter 2006 for the Sentosa site. STB had earlier aimed to hold the bidding for the 2 sites towards the end of Sept 2005.  STB explained that it staggered the timing for the bidding of the 2 sites to give bidders who are unsuccessful in the Marina site an opportunity to participate in the Sentosa site.  Genting at RM21.40 was higher by 60 sen.  The extension of time allows speculative accumulation of Genting shares to continue. Separately, Genting's main UK investment, Stanley Leisure said the number of patrons at its high end casinos in London fell following the July 2005 terror attacks in the city. 
 
Scicom MSC at 89.5 sen was 29.5 sen higher against its initial public offering price of 60 sen on its debut on the MESDAQ market. It was the most active counters with 38.75 mln shares done. This was followed by Time dotCom at 62 sen increased 4 sen and Camres at 30 sen added 3.5 sen. Yinson Holdings has reported a 14.6% on-year drop in 1st half group pre-tax profit to RM5.30 mln despite a 6.6% increase in revenue. It attributed the decline in pre-tax profit for the 6 months ended 31 July 2005 to a drop in profit margin and higher finance costs following an increase in borrowings to finance working capital. Yinson was not traded at RM1.27.
 
Pensonic Holdings is in talks to acquire a local electronics maker as part of a plan to quadruple its market value to USD100 mln in 3 years, Managing Director Dixon Chew said. Pensonic is trying to boost its share of the local market through acquisitions and branding activities. Pensonic was not traded at 52.5 sen. KNM Group's entire share capital will be transferred to Bursa Malaysia's Main Board under the Industrial Products sector from the Second Board Friday.  KNM at RM3.42 fell 2 sen.
 
Among highlights for today, LPI Capital was at RM8.05 (+45 sen); IJM Corp at RM4.84 (+6 sen); Kosmo Technology Industrial at RM3.28 (+6 sen); PLUS Expressway at RM3.16 (-6 sen); Pantai Holdings at RM1.86 (-2 sen); Nam Fatt Corp at 45.5 sen (+3.5 sen); QSR Brands at RM3.06 (-2 sen); AsiaEP at 20.5 sen (-1 sen); Dialog Group at 41 sen (+0.5 sen); MESB at 55.5 sen (+3.5 sen); OYL Industries at RM3.14 (+4 sen).
 
Tokyo shares closed at fresh 4-year highs on Monday, as investors flocked back to the market following a 3-day weekend. The benchmark Nikkei 225-Average closed up 1.77% to 13,392.63, its highest closing level since June 8, 2001. Data released on Monday showed that big Japanese manufacturers became more confident of business conditions in the 3 months to September, bolstering the view that Japan's economy is recovering on the back of strong exports and domestic demand. Investors treat the survey as a good indicator of what to expect from the Bank of Japan's Tankan survey of business sentiment, which will be released on Monday, October 3. Shares of Japan's leading exporters and manufacturers were broadly higher following the release of the economic data.
 
Most regional indices were in positive territory, Hong Kong's Hang Seng at 15,274.31 (+0.86%); Singapore's STI at 2,317.58 (+1.07%); South Korea's KOSPI at 1,206.41 (+2.60%); Taiwan's TWSE at 5,930.20 (+0.08%); Thailand's SET at 722.96 (-0.32%); Philippines' PCOMP at 1,954.74 (-0.24%); Indonesia's JCI at 1,034.585 (+2.15%).

20050926 Technical Outlook JetFM

Technical Outlook ( 26/9/2005 ) by Jupiter Research
It was just another same day. CI fluctuated in a very tight trading range. CI went up to an intraday high of 923.18 before settled at 921.89.
 
With Budget Day around the corner, we may begin to see some market play actions in the CI to go near 930-level in next few days; trading activities from the investment fund side are expected to pick up.
 
For Monday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 923.15 & 924.40. 1st and 2nd support levels will be 920.67 & 919.44.
 
Chart wise: CI is seen trying very hard to keep itself afloat around the present level, waiting for some leads from the market to break above 930-level.
 
Technical wise: MACD still in negative territory. Directional Movement Index shows that +DMI is above the -DMI; but both +DMI and -DMI together with ADX are pointing southward.
 
On Stochastic indicator, both %K line & %D line is already one step into the overbought zone.
 
Our stock recommendations for today are:
New Straits Times (Trading Buy) at RM3.12with stop loss at RM3.00
Astino (Trading Buy) at 61 sen with a stop loss at 54.5 sen
OilCorp (Trading Buy) at 63 sen with a stop loss at 58 sen

20050926 Hwang DBS Daily Focue

> Highlights
>
> Telco - Complex MNP needs more than 2 years
>
> Shortly into the public inquiry on MNP (mobile number portability) held by
> the MCMC (Malaysian Communication and Multimedia Commission) last week, we
> discovered the complexity in implementing MNP which will impede the
> government's hope for major changes in the Malaysian mobile telephony
> industry. More likely, we think MNP would only be available in 2008. MNP
> had resulted in 3-9% porting rate in the first two years in other prepaid
> dominant markets. While market shares could shift, cost of Malaysian
> celcos will rise under MNP as they launch more loyalty programs to retain
> subscribers and to compete for market shares. We maintain Neutral on the
> sector. Digi (DIGI MK) is our sole buy call with a DCF-based price target
> of RM7.10.
>
> Comments
> 
>
> KFC - New substantial of QSR shareholder sues the Securities Commission -
> Fully Valued
>
> 
>
> Dr. Abdul Wahid Suhaime, a politician who had contested a seat in the last
> elections with Party Keadilan Nasional, bought a 10.24% stake in QSR last
> week. He took the Securities Commission to court for allegedly not acting
> on an earlier complaint claiming that Wisdom Innovative Technology Sdn Bhd
> and other parties were acting in concert but not disclosed. It was
> gathered that a decision on the possibility of a hearing for the legal
> suit will only be made next Friday. (Business Times)
>
> New twists and corporate maneuvers are not unexpected in the tussle for
> ultimately control over KFC. Hence, we maintain our Fully Valued call
> until Kulim clearly emerges as the controlling shareholder - it would need
> to clear legal and financial hurdles. Meanwhile, maintaining our RM3.10
> target price for KFC, based on 25% discount to RNAV.
>
> MISC - Uptrend in tanker index - Maintain Fully Valued
>
> The Baltic Dirty Tanker Index for certain routes has jumped 38% from a
> week ago. However, average YTD Aframax tanker rates are still 29% lower
> compared to the average for last year. The uptrend needs to be sustained
> to have a significant impact on earnings. We expect a 10% decline in
> tanker rates this year. A 5% increase from our forecast will increase our
> net profit forecast by 5%. We maintain Fully Valued on MISC with a RM17.20
> price target, based on 11.5x CY06 EPS.
>  <<20050926.pdf>>

China Widens Yuan's Euro, Yen Band; Keeps Dollar Rate

China Widens Yuan's Euro, Yen Band; Keeps Dollar Rate
 
Sept. 23 China widened the yuan's daily trading band against the
euro and yen, stopping short of meeting calls from the U.S. that the
currency be allowed to strengthen more against the dollar.
The yuan will be allowed to move as much as 3 percent from a daily
fixed rate against the euro, yen and other currencies except the
dollar, the People's Bank of China said in a statement as finance
ministers from the Group of Seven gathered in Washington. The band
against the dollar, which accounts for almost all of yuan trading,
was kept at 0.3 percent.
``It's a political move,'' said Neil Jones, a director of foreign-
exchange sales at BNP Paribas SA in London. ``The main objective of
most of the West is to get a revaluation against the dollar, and
this obviously doesn't meet that need.''
China, which in July abandoned a decade-old peg to the dollar in the
face of criticism from trading partners, is still being pressed by
the U.S., Japan and Europe to let the yuan appreciate further.
Japanese vice-finance minister Hiroshi Watanabe said last month
China has been ``cautious'' in managing its currency after scrapping
the peg.
The yuan has gained 0.2 percent against the dollar since China
revalued it by 2.1 percent on July 21 and began managing it against
a basket of currencies. The biggest one-day change since the new
system was introduced is less than 0.1 percent.
China's currency weakened 0.04 percent today to 8.0910 per dollar.
The announcement came after the close of trading.
`Red Herring'
The yen surrendered gains made in the minutes after the People's
Bank of China announcement. Japan's currency rose to 111.46 at 8
a.m. in New York from 111.71 late yesterday. It gained to as much as
111.05 before retreating. The yen rose to 135.09 per euro from
135.79.
``It is largely a red herring in terms of relevance to the market,''
said James Malcolm, a currency strategist at Deutsche Bank AG in
Singapore. ``People saw the headline and thought China is widening
the trading band full stop.''
Daily average trading in the yuan rose to $1.8 billion last year, up
530 percent from 2001, the Bank for International Settlements
estimates. At least 95 percent of that reflects trading in the
dollar versus the yuan, said Tony Norfield, head of global currency
research at ABN Amro Holding NV in London.
Bonds Decline
Treasuries and European bonds declined on speculation that a more
flexible yuan will mean a reduced appetite by the Chinese government
for foreign debt. Chinese investors, including the central bank, are
the second-biggest foreign holders of Treasury notes. The euro fell
against the dollar.
A wider trading band means China will be ``less present in the
market buying Treasuries, and that's obviously a concern for the
market,'' said Andrew Popper, who oversees $9.2 billion in assets as
chief investment officer of SG Hambros Bank in London.
Lawmakers and manufacturers in the U.S. and European Union, China's
two biggest overseas markets, say Chinese exporters benefit from an
artificially weak currency. China's trade surplus for the first
eight months of the year was $60.2 billion, nearly double the $32
billion reported for the whole of 2004, according to the nation's
customs bureau.
``It will be a good number of years before China allows a free
floating currency,'' said Jim O'Neill, head of global markets
research at Goldman Sachs Group Inc. ``We'll see a variety of steps
like this, but we will see occasional revaluations of the yuan along
the way, which we will get more of, possibly more before the end of
the year.''
Developing Market
Since revaluing the yuan in July, China has taken a series of steps
to develop its foreign-exchange market, easing limits on how much
overseas currency banks can hold, increasing the amount of yuan
individuals can sell when traveling and letting banks trade yuan
forward contracts.
Today's ``change will allow banks more freedom to set prices and
manage foreign-currency risk,'' the central bank said in a statement
on its Web site. ``It will also improve the central bank's
management of the yuan exchange rate with reference to the basket of
currencies.''
The central bank also eased restrictions on the buy and sell rates
banks may quote to clients. The maximum bid-ask spread for overseas
wire transfers involving the U.S. dollar was widened to 1 percent,
from 0.2 percent, the statement said.
Banks may quote a bid-ask spread of as much as 4 percent for U.S.
dollar cash exchanges, from 1 percent. Restrictions on bid- ask
spreads for other currencies were scrapped.
`Very Gradual'
Forwards are agreements in which assets are bought and sold at
current prices for delivery at a later specified time and date. They
will allow local companies and investors to protect themselves from
swings in the yuan and other currencies.
``We expect in terms of the yuan spot rate, a very, very gradual
process of appreciation, which on the present trend line would take
us to about 8.05 by year-end,'' said Uwe Parpart, senior market
strategist in Hong Kong at Bank of America Corp. ``It depends on how
much pressure they're going to get from the U.S. Congress.''
The central bank said on Sept. 19 in its quarterly monetary policy
report that it will maintain the ``basic stability of the yuan at a
reasonable and balanced level.'' The central bank has been
performing open market operations to prevent ``excessive
fluctuation,'' assistant central bank governor Ma Delun said Sept.
9.
Senators Charles Schumer and Senator Lindsey Graham, co- sponsors of
legislation to impose a 27.5 percent tariff on Chinese imports, said
Sept. 4 they will renew efforts to push the bill through the Senate
unless President Hu Jintao does more to boost the currency's value.
U.S. Trade Deficit
The Manufacturers Alliance, which represents some of the largest
U.S. companies including Alcoa Inc., said Aug. 31 that China's
currency is still undervalued by more than 50 percent. The U.S.
trade deficit with China widened to $90 billion in the first half
from $68 billion a year ago, according to U.S. data.
China, whose economy grew 9.5 percent in the second quarter from a
year earlier, is now the world's biggest producer of mobile phones,
laptop computers and printers after companies including Quanta
Computer Inc. and Motorola Inc., two of the nation's four biggest
exporters last year, expanded production to take advantage of low
labor costs.
Foreign-invested companies accounted for 57 percent of the nation's
exports in the first half, the commerce ministry said Aug. 2.

20050923 Market Roundup JetFM

Market Roundup ( 23/9/2005 ) by Jupiter Research
Another dull trading day
 
At 5 pm, the Kuala Lumpur Composite Index (KLCI) fell 1.16 points to 921.89. Volume expanded to 408.45 mln shares valued at RM675.91 mln. Losers outpaced gainers 366 to 313, while 319 counters were unchanged and 417 untraded. The Emas Index dropped 0.19 points to 209.90, while the Second Board lost 0.33 points to 87.26. Share prices ended lower amid concerns over rising inflation with most investors reluctant to take any heavy positions ahead of the weekend in the absence of fresh leads. Among blue chips, Tenaga lost 10 sen to RM10.70, while both Malayan Banking and Telekom were unchanged at RM11.60 and RM10.30 respectively. GHLSYS-OR was the most active counter at 3 sen added 0.5 sen with 16.82 mln shares done.
 
Crescendo Corp has reported an interim group pre-tax profit of RM10.508 mln, an increase of 3.1% year-on-year. It attributed the marginal increase in pre-tax profit to a change in the sales mix. The proportion of sales for concrete products operation has increased significantly as compared to a drop in industrial property sales that have a higher profit margin than concrete products, it said in a filing to Bursa Malaysia on Thursday. Crescendo was not traded at 95 sen.
 
NasionCom Holdings will emerge as a formidable outfit in the takeover of a small but profitable information technology company, LeadingSide. NasionCom will pay between RM15 mln and RM20 mln in cash for a 100% stake in LeadingSide and the acquisition is expected to boost the company's profit this year. The deal will be announced as early as next week. Under the deal, LeadingSide would guarantee NasionCom of a pre-tax profit of about RM2.5 mln to RM3 mln in the 1st year and up to RM5 mln in the 2nd year. NasionCom at 19 sen added 1 sen.
 
Eden Enterprises will invest over USD2 bln in Pakistan's energy, housing, construction and tourism sectors. Tan Sri Dato Chairman and CEO of the group said the group takes Pakistan as a promising market for investment and it was joining hands with DHA Cogen, a local group, for investing in the power sector. Tan Sri said that his group has already got approval from Private Power Infrastructure Board for 2 power projects, a 200 MW Green power project in Badin, costing USD150 mln and Suki Kinari, 655 MW hydropower project in Mansehra. The project's cost may range between USD800 mln to USD1 bln. Eden at 45 sen improved 1 sen.
 
Bursa Malaysia has finally decided to step into the ring to help clear the confusion surrounding QSR Brands that is locked in a takeover battle. The regulator has asked the 2 parties to give more information on conflicting statements that were posted on Bursa Malaysia's website. Separately, Abdul Wahid Ahmad Shuhaime, who is believed to be a politician, has emerged as a substantial shareholder of QSR Brands after the acquisition of a 10.24% stake amid an ongoing tussle for control of the company. QSR at RM3.08 was unchanged.
 
Among highlights for today, Genting at RM20.80 (+30 sen); AirAsia at RM1.57 (+1 sen); KLCC Property Holdings at RM2.13 (unchanged); Sime Engineering Services at RM1.12 (+2 sen); Sime Darby at RM6.15 (unchanged); MCSB Systems at 34.5 sen (+3 sen); Tien Wah Press Holdings at RM2.29 (+20 sen); Pantai Holdings at RM1.88 (-1 sen); Hong Leong Bank at RM5.35 (unchanged); PDZ Holdings at RM1.59 (-1 sen); PLUS Expressways at RM3.22 (-6 sen); JT International at RM4.04 (unchanged); Ingress Corp at RM1.20 (-1 sen); Kuala Lumpur City Corp at 72.5 sen (-1 sen).
 
Hong Kong stocks fell a quarter of a percent in subdued trade on Friday with investors cautious after larger-than-expected local interest rate rises and ahead of a closely watched land auction next week. Worries about the potential impact of Hurricane Rita in the United States also affected sentiment. The blue chip Hang Seng Index fell 0.24% to 15,143.97. The index rose 1.07% over the course of a holiday shortened trading week. South Korea's KOSPI at 1,175.88 shed 2.01% had its biggest decline since August 29 as some investors bet recent gains more than reflected earnings prospects. The KOSPI jumped 11% this month through yesterday and is set for the biggest monthly gain since October 2003. For the year, the benchmark has jumped 33% in US Dollar terms. The Tokyo's stock market was closed today for national holidays. Singapore's STI at 2,293.04 (+0.10%) was the only gainer in the region; Taiwan's TWSE at 5,925.54 (-0.78%); Thailand's SET at 724.31 (-0.18%); Philippines' PCOMP at 1,959.51 (-0.29%); Indonesia's JCI at 1,012.851 (-0.38%).

20050923 JetFM Technical Outlook

Technical Outlook ( 23/9/2005 ) by Jupiter Research
CI may have not shown an up move; but the selling pressures were not there to sell into the market either. The sellers apparently have sensed that “funds” could be waiting for the right moment to buy into the market; therefore, instead of unloading part of stock portfolio at current price, sellers would rather wait for higher price to sell for better gains.
 
We are likely to see the force of “funds” pushing the CI higher from next week onward. CI went up to an intra-day high of 923.95 before settled at 923.05. CI is on its way up to test 930-level.
 
For Friday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 924.49 & 925.92. 1st and 2nd support levels will be 921.08 & 919.10.
 
Chart wise: CI may have closed only slightly higher; but, it did not seem to have given up yet, one still can expect some actions.
 
Technical wise: MACD still in negative territory. Directional Movement Index shows that +DMI is above the -DMI. On Stochastics indicator, both %K line & %D line is one step nearer to the overbought zone.
 
Our stock recommendations for today are:
Iris Corp (Stock Code: 0010)
Sapura Resources (Stock Code: 4596)
WTK Hldgs (Stock Code: 4243)

20050921 Market Roundup JetFM

Market Roundup ( 22/9/2005 ) by Jupiter Research
Sluggish trade on Bursa
 
At 5 pm, the Kuala Lumpur Composite Index (KLCI) added 0.48 point to 923.05. Volume expanded to 479.05 mln shares valued at RM771.89 mln. Losers outpaced gainers 383 to 289, while 313 counters were unchanged and 430 untraded. The Emas Index improved 0.07 points to 210.09, while the Second Board fell 0.23 points to 87.59. Share prices ended slightly higher in sluggish trade as most investors are keeping to the sidelines in the absence of market moving news locally, with everyone focusing on the Federal Budget next Friday. Among blue chips, Tenaga was unchanged at RM10.80, while both Malayan Banking at RM11.60 and Telekom at RM10.30 were higher by 10 sen. Pantai-WA at 95 sen gained 4 sen was the most active counter with 22.70 mln shares done, followed by Avenue-WA unchanged at 9 sen and Time dotCom at 57.5 sen fell 0.5 sen.
 
The government is worried about high crude oil prices, but inflation is under control, the country's economic planning minister Dato' Mustapa Mohamed said on Thursday. Inflation reached a 6-1/2-year high of 3.7% in August from a year earlier, but Mustapa said it was being held in check. Asked whether the currency should rise to contain inflation, Mustapa replied that the Ringgit value depends on the market, as it is unpegged and the Ringgit was at fair value. The government said this month it was confident of meeting its target of cutting the fiscal deficit to 3.8% of gross domestic product this year from 4.3% in 2004. It expects the economy to expand by 5% to 5.5% this year, although GDP growth slowed to 4.1% in the year through the 2nd quarter, its weakest pace in 3 years, as manufacturing exports cooled.
 
Sime Engineering Services was limit-up on speculation that the company may win a significant contract from a crude oil corp, or it could be linked to progress on work on the Bakun Dam project. Sime Engineering was up 29.5 sen at RM1.10. However, the session limit gain in the morning session prompted Bursa Malaysia to query the company over the unusual market activity.
 
Parkway Holdings has declined to comment on whether it is keen to raise its existing 31% stake in Pantai Holdings. A spokeswoman for Parkway declined to comment when asked whether the firm intends to buy more Pantai shares as Pantai is trading well below its acquisition price. Pantai Holdings at RM1.89 advanced 11 sen.
 
WTK Holdings was higher on talk of a share buyback.  A report from ITTO also said Malaysian timber and plywood exports to Japan have gained more than 20%YoY in the recent month.  The timber stock gained 16 sen to RM3.86.  AKN group of companies were higher following a report that boutique financial consultancy Binafikir has been given the mandate to reorient the business direction of AKN Capital's subsidiaries and investee companies. However, at 5pm AKN was lower by 0.5 sen to 92.5 sen.
 
Among highlights for today, Jaks Resources at RM1.06 (+1 sen); Cosway Corp at 62.5 sen (-0.5 sen); Avenue Capital at 66 sen (-3 sen); Johan Holdings at 13 sen (+1 sen); Green Packet at RM1.57 (+4 sen); Tanjong Plc at RM14.00 (-20 sen); SP Setia at RM3.78 (-4 sen); Star Publications at RM7.40 (+10 sen); Amalgamated Industrial Steel at 58 sen (+0.5 sen).
 
Tokyo's Nikkei 225-Average ended down 0.28% on Thursday after concerns that Hurricane Rita could drive crude oil prices higher and further dampen the US economy prompted investors to cash in recent winners. With Rita's landfall in Texas expected late on Friday or early on Saturday, and all but guaranteeing another rise in gasoline prices, investors had a hard time overlooking higher oil prices. On Wednesday, the International Monetary Fund shaved its 2005 growth forecast for the world's largest economy to 3.5% from 3.6%. It also trimmed its 2006 outlook to 3.3% from 3.6%. The Nikkei 225-Average finished down 37.21 points at 13,159.36, snapping a 2-day rally in which it gained 1.84% and topped 13,100 for the 1st time since 2001. The Tokyo market will close on Friday for a national holiday.
 
The losers in the region were Hong Kong's Hang Seng at 15,179.95 (-0.29%), Singapore's STI at 2,290.68 (-0.35%), Taiwan's TWSE at 5,972.06 (-1.57%) and Indonesia's JCI at 1,016.758 (-2.61%). While the gainers included South Korea's KOSPI at 1,199.97 (+0.28%), Thailand's SET at 722.96 (+0.25%) and Philippines' PCOMP at 1,965.27 (+0.31%) were the gainers, gaining on foreign interest.

20050922 JetFM Technical Outlook

Technical Outlook ( 22/9/2005 ) by Jupiter Research
CI again confined in a tight trading range, it is searching for a catalyst to trigger a move. CI went up to an intraday high of 922.8 before settled at 922.57; but volume recorded for the day was at 512.49 million shares. CI is on its way up to test 930-level.
 
The market behavior showed that buyers and sellers were not so willing to create much new positions in their stock portfolios. Both parties wanted to wait for more leads before new commitment.
 
For Thursday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 923.83 & 925.10; 1st and 2nd support levels will be 920.27 & 917.98.
 
Chart wise: CI may have closed only slightly higher; but, it did not seem to have given up yet, one still can expect some actions.
 
Technical wise: MACD still in negative territory. Directional Movement Index shows that +DMI is above the -DMI. On Stochastics indicator, both %K line & %D line is moving up towards the overbought zone.
 
Our stock recommendations for today are:
NasionCom Hldgs (Trading Buy) at RM0.185 with stop loss at RM0.15;
LFE Corp. (Trading Buy-Medium Risk) at RM0.405 with a stop loss at RM0.38.

20050922 Hwang DBS Daily Focus

> Highlights
>
> 
>
> TWP - New Toyo RTO viewed positively - Maintain Hold
>
> 
>
> With its latest acquisition, TWP will be enjoying positive long term
> effects, with earnings expected to be boosted by 3Q06 assuming smooth
> implementation. New Toyo will hold a controlling stake of 58% post
> acquisition. TWP remains a dividend play, with yields to remain at 6% and
> potentially higher going forward due to its generate business. For now, we
> are maintaining our target price of RM2.50, implying a PE of 8x FY06 EPS.
> Maintain Hold.
>
> 
>
> Comments
>
> 
>
> Tanjong - Moscow lottery operations to start by year-end - Maintain Hold
>
> 
>
> Tanjong PLC's associate Yuvenga JSC will start its online lottery game
> "Moscow Olympic Lottery" before end-2005. Tanjong owns 50% of Uniclic Ltd,
> which in turn holds a 49% stake in Yuvenga. Yuvenga has the licence until
> May 2013 to operate the game.
>
> 
>
> The joint venture, which was originally slated to take off in mid-year, is
> expected to be modestly profitable after initial start-up losses.
> Meanwhile, we maintain our forecasts for Tanjong, which has not imputed
> any contribution from this venture. Maintaining our Hold call and
> reviewing our RNAV-based target price of RM13.60 for an upgrade, which
> factors in the good likelihood of the company acquiring Egyptian utility
> assets from Electricite de France, thus boosting Tanjung earnings by
> c.20-30%.
>
> 
>
> Green Packet - Penetrated into Taiwan - Maintain Hold
>
> 
>
> GRPB announced that it has been chosen by Chung Hwa International
> Communication Network Co Ltd (CCNet) as a technology provider for
> Mobile-Taipei (M-Taipei) County project. The project is part of a RM427m
> exercise to link Taipei wireless, which in turn is a precursor to link the
> whole of Taiwan wirelessly.
>
> We understand that GRPB's portion of the project is valued at US$5m
> (RM18.9m) with a rollout spanning three years. This represents a 10%
> upside to our FY06 forecast earning.
>
> 
>
> We are certainly pleased to hear that GRPB has established itself in a new
> market thereby helping to diversify its customer and earnings base. We are
> also in the midst of reviewing our outlook on GRPB with an upside bias
> given the new development. Meanwhile, maintaining our Hold call and RM1.10
> price target, based on 10x FY06 earnings. 
>

Market Roundup - 21 Sep 2005

 

----- Original Message -----

From: JetFM Callcenter

To: Undisclosed-Recipient:;

Sent: Wednesday, September 21, 2005 9:04 PM

Subject: Market Roundup - 21 Sep 2005

Dear JetFM Member,

 

 

Good Evening,

 

 

Market Roundup ( 21/9/2005 ) by Jupiter Research

 

 

KLCI unchanged

 

At 5 pm, the Kuala Lumpur Composite Index (KLCI) added 0.54 points to 922.57. Volume expanded to 512.49 mln shares valued at RM948.56 mln. Gainers slightly outpaced losers 337 to 327, while 343 counters were unchanged and 409 untraded. The Emas Index increased 0.43 points to 210.02, while the Second Board fell 0.24 points to 87.82. Share prices ended the day flat after the US Federal Reserve raised interest rates and signaled more increases to come. Most investors were also sidelined ahead of the 2006 Budget next Friday. Among blue chips, Tenaga gained 10 sen to RM10.80, Malayan Banking closed at RM11.50 was unchanged, while Telekom shed 20 sen to RM10.20. Time dotCom at 88 sen added 2.5 sen was the most active counter with 20.59 mln shares done. RHB at 91.5 sen gained 5 sen was on 2^nd place, followed by Pantai-WA at 91 sen advanced 13 sen.

 

The Ringgit has been kept on a tight leash since the currency's peg against the US Dollar was abandoned, but markets are starting to bet that high inflation could tempt authorities to relax their control. Investors who have bet on Ringgit strength following July's currency reform have been disappointed by the less than 1% appreciation against the US Dollar. But the Ringgit's strength is now increasingly seen as an answer to inflation, running at a 6-1/2-year high of 3.7%. And with high crude oil prices a greater worry for manufacturers than Ringgit strength, the central bank could afford to let the currency appreciate.

 

AirAsia Wednesday said passenger traffic in August increased 28% on year, slower than July's 35% rise. As was the case in July, much of the on-year rise in passengers was due to contributions from the low-cost carrier's newly acquired Indonesian associate. AirAsia at RM1.56 improved 1 sen.

 

Teck Guan Perdana has reported an interim pre-tax profit of RM5.044 mln, a sharp turnaround from a pre-tax loss of RM749,000 for the same period last year due to improved profit margin and higher selling prices for its cocoa products. Teck Guan at RM1.91 fell 1 sen.

 

Tractors Malaysia Holdings was higher as the stock was seen providing a cheaper point of entry into parent Sime Darby. The stock was up 6 sen at RM3.50. It was reported earlier that Sime Darby will complete the privatization of 71.7% owned Tractors by the end of the year. Tractors at RM3.52 advanced 8 sen, while Sime Darby declined 5 sen to RM6.20.

 

Among highlights for today, QSR Brands at RM3.14 (unchanged); Carotech at 58.5 sen (+6 sen); Pantai Holdings at RM1.78 (+11 sen); Lion Forest Industries at RM2.35 (unchanged); Malaysia International Shipping Corp at RM18.30 (unchanged); Fotronics Corp at 54 sen (-0.5 sen); Furqan Business Organization at 19 sen (-1 sen); CB Industrial Product Holding at RM1.36 (unchanged); SMPC Corp at 42 sen (unchanged); JobStreet Corp at RM1.17 (-5 sen); Malaysian Airline System at RM3.22 (+6 sen).

 

Tokyo shares reached fresh 4 years high on Wednesday, as the Nikkei 225-Average stayed above the key 13,000-point level on continued investor optimism regarding the strength of Japan’s economic recovery. The benchmark Nikkei 225-Average closed up 0.37% to 13,196.57, its highest level since June 11, 2001. Financial institutions were broadly higher after Goldman Sachs said that Japanese banks had more upside potential if short-term interest rate rises were discounted. Shares of Japan’s leading property developers rose after the land ministry said on Tuesday that both commercial and residential real estate prices in Tokyo rose for the 1^st time in 15 years, signaling that deflation was ebbing. Shares of department stores were broadly lower after Deutsche Bank downgraded ratings on various companies to “hold” from “buy”, as it said most shares were trading at a valuation premium.

 

Regional indices were mostly in red, Hong Kong’s Hang Seng at 15,223.62 (-0.12%); Singapore’s STI at 2,298.65 (-0.38%); South Korea’s KOSPI at 1,196.67 (+0.48%); Taiwan’s TWSE at 6,067.34 (-0.62%); Thailand’s SET at 723.07 (-0.01%); Philippines’ PCOMP at 1,959.15 (+1.33%); Indonesia’s JCI at 1,044.056 (-1.09%).

 

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Disclaimer

The opinion and information contained herein are based on available data believed to be reliable. It is not to be construed as an offer, invitation to buy or sell the securities mentioned herein. Jupiter Research Sdn Bhd does not warrant the accuracy stated in any manner herein and no reliance upon such things by anyone should give rise to any claim whatsoever. The directors and staff of Jupiter Research Sdn Bhd may have an interest in the securities mentioned.

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20050920 Market Roundup JetFM

Market Roundup ( 20/9/2005 ) by Jupiter Research
KLCI lower while regionals turn bullish
 
At 5 pm, the Kuala Lumpur Composite Index (KLCI) lost 1.24 points to 922.03. Volume expanded to 430.49 mln shares valued at RM827.71 mln. Losers outpaced gainers 400 to 277, while 317 counters were unchanged and 422 untraded. The Emas Index dropped 0.34 points to 209.59, while the Second Board advanced 0.12 points to 88.06. The market was relatively lackluster as investors stayed on the sidelines due to uncertainties ahead of the Budget Day at the end of this month, coupled with rising crude oil prices. Among blue chips, Tenaga was unchanged at RM10.70, while Malayan Banking at RM11.50 and Telekom at RM11.40 were both declined 10 sen. The most active counter was Sunway Holdings Inc Warrants at 13 sen gained 2 sen with 16.62 mln shares done.
 
Poultry stocks were generally holding well with only a slight sell down. Veterinary Services Department director-general Dato' Dr Hawari Hussein was reported on September 20 as saying that the risk of the flu spreading to Malaysia was low as Malaysia did not import any poultry from Indonesia. Leong Hup Holdings fell 1 sen to RM1.17, Comsa Farms dropped 1 sen to 39 sen, Cab Cakaran was 1.5 sen lower at 76.5 sen, Farm Best eased 1.5 sen to 85 sen, while Sin Heng Chan was down 1 sen at 78 sen.
 
QSR Brands chairman Tan Sri Nik Ibrahim Kamil had on September 20 adjourned the EGM to October 11 due to certain technicalities relating to the polling slips raised by the scrutineers. The company said that due to the technicalities, Nik Ibrahim had exercised his powers under Article 74 of the Articles of Association of the Company, to adjourn the EGM to October 11. It would be held at Wisma KFC, Kuala Lumpur at 10am. QSR at RM3.14 gained 4 sen.
 
Goodway Integrated Industries expects double-digit revenue growth for the year ending December 31, 2006 after the completion of the acquisition of the tyre retreading businesses of 2 companies in Sabah, said Goodway chief executive officer Tai Boon Wee. The acquisition involved the tyre retreading business of Sierra Growth for RM7 mln cash and 100% of Big Wheel Holdings and its subsidiaries for RM24.69 mln cash. Goodway group registered a net profit of RM2.2 mln on the back of a RM54.2 mln turnover for the 6 months to June 30, 2005. Goodway at RM1.12 advanced 5 sen.
 
Bursa Malaysia has issued an unusual market activity query on the trading of the Tenco's securities. In a statement on September 20, it had queried the company over the recent sharp increase in price and high volume in its company's securities recently. Tenco at 40 sen edged up 12.5 sen.
 
Among highlights for today, Sunway Holdings Inc at 46 sen (+4 sen); Sunway City at RM1.70 (-1 sen); Mobif at RM1.09 (+2 sen); Tanjung Offshore at RM1.80 (-1 sen); Kejuruteraan Samudra Timur at RM2.01 (-14 sen); Octagon Consolidated Warrants at 17.5 sen (+15 sen); Mieco Chipboard at RM1.32 (-11 sen); Lion Forest Industries at RM2.35 (+23 sen); SapuraCreast Petroleum at 97 sen (-2 sen); KESM Industries at RM1.97 (+2 sen); Selangor Properties at RM2.37 (unchanged); Kumpulan Emas at 10.5 sen (-0.5 sen); MMC Corp at RM2.14 (+1 sen); Dialog Group at 40.5 sen (-0.5 sen).
 
Japan's benchmark Nikkei 225-Average broke the 13,000-barrier on Tuesday for the 1st time since 2001, reflecting continued optimism that its economic recovery is gaining momentum. The Nikkei 225-Average closed up 1.47% to 13,148.57. The recent stock rally reflects investors are upbeat about the economy, amid signs that deflation is ebbing and non-performing loans are being aggressively cleaned up. Others, however, say technical factors are fuelling the rally, as investors increasingly shift their asset allocations away from the US and Europe to Asia. The impact of the uncertain outcome of the German elections on European markets and rising gasoline prices in the US caused by Hurricane Katrina have encouraged investors to shift their asset allocations to Asia, and to Japan in particular. All regional indices were in bull trend except for Indonesia's JCI at 1,055.591 (-1.03%); Hong Kong's Hang Seng at 15,241.86 (+1.73%); Singapore's STI at 2,307.42 (+0.39%); South Korea's KOSPI at 1,190.93 (+1.43%); Taiwan's TWSE at 6,105.35 (+1.16%); Thailand's SET at 721.65 (+1.79%); Philippines' PCOMP at 1,933.51 (+0.28%).

Market Roundup JetFM

Market Roundup ( 16/9/2005 ) by Jupiter Research
Range-bound trade
 
At 5 pm, the Kuala Lumpur Composite Index (KLCI) added 2.34 points to 921.99. Volume expanded to 407.02 mln shares valued at RM693.69 mln. Losers outpaced gainers 381 to 315, while 335 counters were unchanged and 384 untraded. The Emas Index improved 0.40 points to 209.80, while the Second Board fell 0.50 points to 88.12. Share prices ended slightly higher as most investors were cautious amid rising inflation worries, preferring to remain on the sidelines in the absence of market-stimulating news. Among blue chips, both Tenaga and Telekom lost 10 sen to RM10.80 and RM10.40 respectively, while Malayan Banking closed at RM11.50 was unchanged. Iris Corp at 10.5 sen declined 1 sen was the most active counter with 18.85 mln shares done.
 
Manufacturing sales in July rose 11.8% year-on-year to RM38.7 bln, but were down 0.8% from June, the Statistics Department said. The total number of employees engaged in manufacturing rose 0.9% year-on-year in July to 1.023 mln, and increased 0.2% from the month earlier, it said. Total salaries and wages paid in July were up 3.1% year-on-year at RM1.74 bln, and up 0.3% from the preceding month. For the first 7 months of the year, manufacturing sales were 15.6% higher year-on-year at RM227.6 bln, while total salaries increased 4.3% to RM12.2 bln, the department said.
 
Bursa Malaysia has issued an usual market activity query to Khee San. Bursa Malaysia said in a circular on September 16 that the query was due to the sharp price increase in the price of the company's securities recently. The share price fell 5 sen to RM1.42.
 
Scomi Group was higher on expectations that the company would see an improved performance in the 2nd half of the year as new crude oil and gas discoveries boost activity in the industry. Scomi rose 4 sen to RM1.20. The New Straits Times in a report quoted Scomi chairman Asmat Kamaludin as saying that in Malaysia alone, there have been several new crude oil and gas discoveries since 2004 and the company expects these to boost drilling activities, which in turn, will positively impact Scomi's business.
 
Among highlights for the day, Genting at RM19.90 (+30 sen); QSR Brands at RM3.16 (+8 sen); Mieco Chipboard at RM1.60 (-12 sen); Tanjung Offshore at RM1.82 (unchanged); Landmarks at RM1.13 (-2 sen); KNM Group at RM3.40 (-2 sen); Lion Diversified Holdings at RM1.90 (-2 sen); Cahya Mata Sarawak at RM1.14 (-2 sen); KUB Malaysia at 48.5 sen (+1.5 sen); Naim Cendera Holdings at RM3.14 (unchanged); AirAsia at RM1.59 (-1 sen).
 
Tokyo's Nikkei average fell 0.22% to 12,958.68 on Friday after touching a new 4-year high at the open, as investors sold TDK Corp and other high tech firms due to concern about their earnings prospects. Banks, many of which spent the day in negative territory, bounced back by late trade after a credit rating agency said it was optimistic about Japan's lenders. Early in the morning session it rose as high as 12,992.99, its highest intra-day level since June 26, 2001, but failed to top the psychological barrier of 13,000. It rose 2.1% on the week and has posted a total gain of 10% in the past 6 weeks. Many techs have lagged a recent rally that has boosted the Nikkei about 13% so far this year, due to investor concern about their profit outlooks. Japan's banks, investor favorites during the Nikkei's recent rally, again climbed after being dented by a morning profit taking. Credit rating agency Moody's Investors Service said it was more optimistic about Japan's top banks on Friday, lifting its rating of UFJ Holdings and placing 3 other mega banks on review for possible upgrades. Tokyo's stock market will be closed on Monday and Friday next week for national holidays, prompting some investors to hold back from aggressive buying.
 
Regional bourses closed the week in red, Hong Kong's Hang Seng at 14,983.20 (-0.38%); Singapore's STI at 2,306.38 (-0.49%); South Korea's KOSPI at 1,174.13 (+0.39%); Taiwan's TWSE at 6,031.24 (-0.84%); Thailand's SET at 708.11 (-0.43%); Philippines' PCOMP at 1,909.80 (+0.35%); Indonesia's JCI at 1,056.726 (+0.55%).

20050916 Technical Outlook-JetFM

Technical Outlook (16/8/2005 ) by Jupiter Research
CI up 4.91 points to close near the high of the day at 919.65 on high volume, this strong settlement price pattern somehow erases the negative scenario created on 14/9/2005; thus, creating a positive scenario for CI to test 930 again.
 
The one day close below 915 on 14/9/2005 did not seem to be decisive enough to send out a “confirmed” down signal to the market as a whole. Nevertheless, 930 remains the key level to watch.
 
For Friday market, Pivot Profit methodology indicates that the 1st and 2nd resistance levels will be 921.75 & 923.85; 1st and 2nd support will be 915.77 & 911.89.
 
Chart wise: CI is now seen moving toward 930 resistance level.
 
Technical wise: MACD still in negative territory; but, MACD line has just crossed over the signal line. Directional Movement Index shows that - DMI is above the + DMI. On Stochastics indicator, %K line is above the %D line in the neutral zone.
 
Our stock recommendations for today are:
B.I.G -Warrant (Trading Buy) at RM0.645 with stop loss at RM0.49;
Tenggara Oil (Trading Buy) at RM0.51 with a stop loss at RM0.435;
Foremost Hldgs (Trading Buy) at RM0.59 with a stop loss at RM0.45;
Ngiu Kee Corp warrant (Trading Buy) at RM0.265 with a stop loss at RM0.18

20050916 HDBS Daily Review

> Highlights
>
> 
>
> Eng Teknologi - Of growth and dividend yields - Maintain Buy
>
> 
>
> Eng is expected to generate 32% earnings growth next year riding on
> recovery in the hard disk drive sector and a ramp-up at its industrial
> products division. We have fine-tuned our FY05 forecast pursuant to an
> update on Eng's latest performance. As our earlier revenue and profit
> margin assumptions were too conservative, we raised our FY06-07 earnings
> by 16%-18%. Our price target of RM2.60, which is based on 1.5x FY06 BV (c.
> 25% discount to mid-cycle average multiple) remain unchanged. Trading at
> 6.2x FY06 PE and 1.3x BV, Eng shares provide 9% and 11% gross dividend
> yields for FY05 and FY06 respectively. We reiterate our Buy call.
>
> 
>
> Comments
>
> 
>
> TNB - Minister reiterates deferment of tariff hike - Maintain Buy
>
> 
>
> Energy, Water and Communication Minister Datuk Seri Dr Lim Keng Yaik was
> again quoted as having said that the electricity tariff would not be
> increased for the time being. (Recall that the minister made a similar
> statement on 9 Sept 2005.)
>
> 
>
> Again, this comment did not come as a surprise to us given that last week
> the government announced plans to freeze fuel and toll hikes till end-05
> and end-06 respectively, and inflation figures released on Wednesday added
> more concerns as inflation rate was highest since 1998 at 3.7%. We believe
> the reason for the government's decision to defer tariff hike is mainly to
> keep a check on inflationary pressure and one that is politically
> motivated. Hence, investors should not construe the statement made by the
> minister as no tariff hike for Tenaga. Instead, we believe this is merely
> a temporary measure (till end-05).
>
> 
>
> Unfortunately, we could potentially see some weakness in Tenaga's share
> price in the near term as frequent repetition of the minister's comment in
> the press on tariff deferment will inevitably create a negative image of
> the entire situation and dampen investors' sentiment towards this stock.
> And to add more pressure to the share price, foreign shareholding of
> Tenaga at 12.5% (as of 31 August 2005) is at least three times higher than
> that of last year (at 3.4%).
>
> 
>
> Nevertheless, we maintain our earlier belief that the tariff hike will
> still come through in early 2006. Any weakness in Tenaga's share price is
> an opportunity to accumulate. And on a brighter note, investors could be
> in for a pleasant surprise with Tenaga's final quarter results scheduled
> to be released sometime end-October. We understand that Tenaga is
> under-pressure from its auditor to recognise the SESB subsidy from the
> federal government amounting to between RM250m to RM270m (or +17% to +18%
> of Tenaga's FY05F core earnings), which has not been factored into our
> earnings forecast. We believe that the market has not factored this as
> well. 
>
> 
>
> We maintain our Buy recommendation with RM12.00 price target, based on its
> RNAV. Our forecast has incorporated an 8% hike effective 1 March 2006 with
> a corresponding 56% hike in gas prices.

20050915 Market Roundup by JetFM

Market Roundup ( 15/9/2005 ) by Jupiter Research
Bursa higher against regional down trend and higher crude oil

At 5 pm, the Kuala Lumpur Composite Index (KLCI) improved 4.91 points to 919.65. Volume expanded to 584.39 mln shares valued at RM650.54 mln. Gainers outpaced losers 475 to 261, while 301 counters were unchanged and 379 untraded. The Emas Index added 1.08 points to 209.40, while the Second Board increased 1.05 points to 88.62. Mild fund buying of heavyweights lifted the benchmark KLCI higher despite concerns about a spike in crude oil prices. Among blue chips, Tenaga at RM10.90 advanced 20 sen, Malayan Banking at RM11.50 was 10 sen higher, while Telekom at RM10.50 jumped 30 sen higher. RHB-WB added 0.5 sen to 16.5 sen was the most active counter today with 41.12 mln shares done.

Malaysia's markets watchdog announced relaxed investment rules on Thursday, allowing local investors to invest in foreign listed securities and foreign companies to issue shares in the domestic market. The Securities Commission said it would also allow institutional or high-net-worth investors to trade non-Ringgit bonds in the secondary market without its prior approval. It will also make it easier for Malaysian firms to issue non-Ringgit bonds to these types of investors in Malaysia, it added.

Select speculative plays were higher on rotational interest, with following stocks seen having limited downside risks, Fountain View Development was up 2.5 sen at 43.5 sen, Big Industries rose 8.5 sen to RM1.02, Ngiu Kee Corp was up 4 sen at 50.5 sen and Golden Plus up 4 sen at 53.5 sen. Bursa Malaysia issued an unusual market activity query to eBworx on September 15 due to the sharp increase in price and high volume in the company's securities recently. Share price of eBworx fell 4.5 sen 35 sen.

Financially troubled Jin Lin Wood Industries said the Securities Commission has approved its proposed restructuring scheme. Earlier, the integrated timber company had said it is undertaking a restructuring plan involving a capital reduction, debt settlement and acquisition that will result in a reverse takeover of the company. Jin Lin at 13.5 sen dropped 2 sen. BSNC Corp has acquired a major stake in MESDAQ listed MOL Accessportal after buying 4.80 mln shares or 9.06% shareholding. Filings showed that shares were acquired via a private placement at 39.5 sen each on September 2. MOL Accessportal was not traded at 37 sen.

Among highlights for today, Malaysian Airline System at RM3.14 (-4 sen); AirAsia at RM1.60 (+2 sen); Mieco Chipboard at RM1.72 (-11 sen); Landmarks at RM1.15 (-2 sen); Southern Bank at RM3.52 (+4 sen); Pantai Holdings at RM1.70 (-7 sen); Hexagon Holdings at RM3.26 (+2 sen); iNix Technologies Holdings at 65 sen (-3 sen); Tronoh Consolidated at RM3.08 (+4 sen); My-Infotech at 54 sen (-0.5 sen); Formis Holdings at 92.5 sen (+1.5 sen); Berjaya Group at 8.5 sen (unchanged); Avenue Capital Resources at 64.5 sen (+2 sen); Pos Malaysia & Services Holdings at RM3.46 (unchanged); Titan Chemicals Corp at RM1.59 (unchanged).

Japanese stocks closed up on Thursday, boosted by strong gains in the commodities and technology sectors. The Nikkei 225-Average ended the day up 1.19% at 12,986.78. Commodities and materials producers rose particularly strongly. Iron and steel stocks rose 3.5%, with non-ferrous metals, mining and crude oil shares also showing strong increases. Crude oil stocks were boosted by higher crude oil prices. Steel makers' share prices have benefited recently from their decision to boost dividend payments. They have been rewarded in particular by Japanese retail investors looking for income, who invest in high-dividend stocks through special funds run by asset managers. Their promising prospects have kept interest high among foreign investors, too. Several technology manufacturers have shown strong rises. Some domestically focused sectors also rose strongly, as foreign investors optimistic about Japan's recovery continued to invest in stocks with heavy exposure to the domestic market. Retailers ended the day up 1.1%, with wholesalers up 1.3%. Securities houses jumped 1.6%, and insurance gained 1.7%.

20050915 by Hwang DBS Research

> Highlights
>
>
>
> Budget 2006 - Diluting the "oil" impact
>
>
>
> We expect the upcoming 2006 Budget announcement (on Sept 30) to be
> slightly contractionary and market-neutral. Fiscal consolidation will
> remain the main thrust. Just like last year, we expect this Budget to be a
> "people's" budget, focusing on mitigating the impact of runaway fuel
> costs, energy conservation, and encouraging the use of oil substitutes.
> The Budget is expected to reduce the financial burden of lower income
> groups (perhaps through lower direct and indirect taxes), but also, allow
> a moderate fuel subsidy cut possibly towards year-end and raise excise
> duties on tobacco products. Positively, more financial resources would be
> channelled to the construction sector, and the development of biotech and
> biofuel. Maintaining our 930-940 YE KLCI target and our largely defensive
> Buys comprising B-Toto, Tenaga, Public Bank, IJM and Digi.
>
>
>
> Comments
>
>
>
> RIB - To launch travel phone soon - Maintain Buy
>
>
>
> The Business Times reported that RIB is expected to launch its travel
> phone product this year. However, no figures were available at the moment.
>
>
>
>
> We view this positively as it would generate more business for the group.
> To give investors an idea of how it works, a traveler would pick up the
> travel phone from RIB's counter at an airport after putting down a deposit
> and divert all calls from this handphone to RIB. RIB would then connect
> the call to the destination country of the traveler and patch the call to
> the travel phone. Travelers would be charged a daily rental as well as
> airtime, and could save on roaming charges by up to 80% using RIB's travel
> phones.
>
>
>
> We maintain our forecasts and Buy call on REDtone with a price target of
> RM3.00, which is based on 18x FY2/06 earnings.
>
>
>
> Banking - Khazanah may issue US$500m to US$1bn worth of Islamic bonds -
> Maintain Overweight
>
>
>
> The Business Times reported sources saying that Khazanah is planning to
> issue the world's first Islamic convertible bonds in the range of
> US$500m-US$1bn. It is not clear from the article whether the bonds would
> be convertible into a single stock or a basket of stocks. Sources familiar
> with the planned issue said that stocks being considered include Plus
> (PLUS MK), MAS (MAS MK), Maxis (MAXIS MK), Tenaga (TNB MK) and Telekom (T
> MK).
>
> We view this positively as it would release more liquidity into the
> market. Back in 2003, Khazanah had issued packages of call warrants (that
> are convertible into Malaysian equities) with the aim of raising funds for
> investments. The latest news article said that Khazanah plans to use the
> funds for overseas investments