Market Outlook as at May 12, 2015

Today is not a good day for our market. FBMKLCI broke below the previously overcame downtrend line, RR as well as the psychological 1800 support. With these double whammy, FBMKLCI is poised to go lower, possibly testing the 1770-1780 level in the next few days. To avoid this downside trajectory, FBMKLCI must recover above the 1800 mark soon.

http://nexttrade.blogspot.com/

Oil prices dipped on Tuesday as Saudi Arabia reported strong crude production figures and U.S. investment bank Goldman Sachs warned of further oil price declines.

Oil prices drop on high Saudi output, Goldman expects more falls
Tuesday's falls continued price declines on Monday and the previous week, and they came after Brent climbed 40 percent from its January lows, with many analysts saying upward momentum looks to have come to an end as production around the world continues to outpace demand.

Top oil exporter Saudi Arabia pumped 10.308 million barrels of oil per day in April, slightly less than in March but still close to record highs.

Goldman Sachs said in a note that the recent price rally itself prevented a reduction of oversupply and would therefore lead to lower prices going forward.

"While low prices precipitated the market rebalancing, we view the recent rally as premature with crude oil prices expensive relative to current and forecast fundamentals," the investment bank said.

"As a result, we believe that the recent price rally is premature (and) that prices need to sequentially weaken, to resume the oil market rebalancing as well as help correct the still intact imbalance of too much capital looking for opportunities in the energy space," it added.
http://www.theedgemarkets.com/my/article/oil-prices-drop-high-saudi-output-goldman-expects-more-falls

Johor property glut prompts Singapore to warn buyers of risks

In Johor alone, there are around 336,000 new private residential units in the pipeline – more than the total number of private homes in Singapore.

And this does not include the 1,400ha of reclaimed land near the Tuas Second Link, which will be developed from 2020 onwards.

In the light of rising concerns about this oversupply of private properties across the Causeway, the Singapore government will ramp up efforts to raise awareness of the risks involved in buying overseas property.

“Given these indications, buyers are becoming more cautious, as shown by many reports,” Singapore minister for culture, community and youth Lawrence Wong said in the Singapore parliament yesterday, in his capacity as a member of the Monetary Authority of Singapore’s (MAS) board of directors.

“Official Malaysian data suggest the Johor housing market is already slowing down ... Singaporean buyers, too, are becoming wary.”

According to a survey of real estate agencies, the number of Malaysian properties bought through these agencies dropped from 2,609 in 2013 to 838 last year, said Mr Wong, who was replying a query by Singapore MP Dr Lee Bee Wah (of the Nee Soon group constituency).

Her question on how many Singaporeans are individual owners of properties in Iskandar Malaysia comes after a recent Maybank report cautioned investors that the glut of homes in Iskandar will be aggravated by a huge incoming supply this year and next.

The report pointed the finger at aggressive land-banking activities by Chinese developers, which could worsen the glut and lead to price wars in the high-rise mixed-development segment.

Data from Malaysia’s National Property Information Centre, which Wong had cited, also show that the number of upcoming planned properties in Johor is the highest in the country.
http://www.themalaysianinsider.com/malaysia/article/johor-property-glut-prompts-singapore-to-warn-buyers-of-risks

MMSV @ 0.83 TP 0.95 by Kenanga
http://klse.i3investor.com/blogs/kenangaresearch/76373.jsp

Watchful of foreign fund selling on Bursa

Foreign funds were net sellers on Bursa Malaysia on Monday with net selling at –RM165.70mil but the selling was well-absorbed by local institutions.

BIMB Securities Research said on Tuesday local institutions were net buyers at +RM158.5mil and retailer also net buyers at +RM7.2mil.

Overnight on Wall Street, key indices fell as a renewed bonds selloff hit share market sentiment. The DJIA and S&P500 fell by 0.47% and 0.51% respectively to end at 18,105.17 and 2,105.33 respectively.

European stocks ended lower as Greece’s nagging debt troubles weighed on Europe’s broader stock markets.

On earlier trading, key Asian stock markets advanced following China's decision to implement its third interest rate cut since November.

At Bursa Malaysia, the KLCI ended lower in thin trading, down 2.16 points or 0.12% to 1,805.49 weighed down mainly by plantation and power stocks.

“Trading participation saw net selling by foreign institutions while local institutions and retail were net buyers.
“We expect the index to trend lower due to lack of fresh catalysts with immediate support at 1,800 while immediate resistance at 1,811,” it said.
http://www.thestar.com.my/Business/Business-News/2015/05/12/Watchful-of-foreign-fund-selling-on-Bursa/?style=biz

Ecoworld @ 1.78 TP2.45 by CIBM

Eco World climbs after corporate revamp completed

Shares of Eco World Development rose in early Monday trade after it completed its corporate exercise which included a 20% private placement.

At 9.36am, it was up two sen to RM1.78. There were 83,800 shares done at prices ranging from RM1.76 to RM1.79.

The FBM KLCI was up 5.28 points or 0.29% to 1,812.93. Turnover was 266.23 million shares valued at RM134.56mil. There were 258 gainers, 146 losers and 213 counters unchanged.

CIMB Equities Research is retaining Eco World as an Add and one of the top picks in the property sector.

The research house said the potential re-rating catalysts include strong sales and earnings growth. It has a target price of RM2.45, which is 38.2% above the last traded price of RM1.77.

“With the completion of the 20% private placement, Eco World's major restructuring exercise is now complete. The enlarged group has over 5,000 acres of landbank with gross development value (GDV) of RM65bil and a post-placement gearing of around 0.5 times for FY15,” it said.
Last Friday, Eco World announced it had undertaken the placement of 20% new shares or 394.044 mil units at RM1.62 each. The placement was oversubscribed by 1.41 times. The RM638.4mil proceeds will be used for landbanking and investments. The new shares will be listed on May 19.
http://www.thestar.com.my/Business/Business-News/2015/05/11/Eco-World-climbs-after-corporate-revamp-completed/?style=biz

China cuts interest rates for third time since November as economy sputters 

China's central bank cut its benchmark lending rate by 25 basis points to 5.1 percent on Sunday, its third reduction since November, as economic growth cools to levels not seen since the global financial crisis. 

The People's Bank of China (PBOC) also reduced one-year benchmark deposit rates by 25 basis points to 2.25 percent, it said in a statement on its website, adding that the reductions would be effective on May 11. 

The central bank said the move would support the healthy development of the economy. 

Economists had said it was not a matter of if, but when China eased policy again after economic growth in the first quarter cooled to 7 percent, the slowest pace since 2009. 

http://mobile.reuters.com/article/businessNews/idUSKBN0NV0A320150510?irpc=932

China cuts interest rates for third time since November as economy sputters

China's central bank cut its benchmark lending rate by 25 basis points to 5.1 percent on Sunday, its third reduction since November, as economic growth cools to levels not seen since the global financial crisis.

The People's Bank of China (PBOC) also reduced one-year benchmark deposit rates by 25 basis points to 2.25 percent, it said in a statement on its website, adding that the reductions would be effective on May 11.

The central bank said the move would support the healthy development of the economy.

Economists had said it was not a matter of if, but when China eased policy again after economic growth in the first quarter cooled to 7 percent, the slowest pace since 2009.

http://mobile.reuters.com/article/businessNews/idUSKBN0NV0A320150510?irpc=932

Upgrade to BUY with a revised TP of MYR1.18. Following our earnings revision and after rolling over our base year to 2016 from FY16, we upgrade our recommendation to BUY (from Neutral) with a revised TP of MYR1.18 (from MYR0.85), based on a higher P/E of 12x (from 11x), compared to its closest peer VS Industry’s (VSI MK, NEUTRAL, TP: MYR4.10) target P/E of 10x. The premium is deserved,due to its higher earnings growth and net cash position. With a minimum payout policy of 50%, it also offers decent dividend yields of 4.5-6% for FY16-17 (on a fully-diluted basis) - RHB
http://klse.i3investor.com/blogs/rhb/76224.jsp

Sb against financial year 2014.

Turnover & profits has been improving through the years & almost double in financial year ending jan 2015 vs financial year 2015.

http://www.malaysiastock.biz/Corporate-Infomation.aspx?type=A&value=B&source=M&securityCode=7036

@ameera.....you will be rewarded after the rights issue of 6 : 1 @ 0.10 with 3 free warrants. 3 gold mining licences are of great value & gold has already been proven & mined. I belief Bornoil will be able to obtain more licences in future.

Just imagine what will happened to the share price if they hit the jacpot. That's why Hap Seng is willing to pump in so much money into this company.

A proxy of VS Industry @ 25% the price ( 0.945 v 3.89 )

Eye on stock

Pentamaster Corp @ 0.67

By: K.M. LEE 

A CONSTRUCTIVE upward momentum, lasting for almost a year, witnessed Pentamaster Corp Bhd (Penta) shares rallying to as high as high of 74.5 sen on April 21, the best level since November 2007.

Thereafter, they succumbed to an apparent profit-taking selling pressure to slip into correction mode, pulling prices back to the 57.5-sen line on April 28 before a fresh bout of bargain hunting activity emerged unexpected to aid the bulls.

In the wake of renewed buying, Penta rode on the strength to stage a rebound, lifting its shares to an intra-day high of 68 sen yesterday.

Based on the daily chart, it is quite clear that this stock is making an attempt to resume the upward thrust after undergoing a brief correction process.

A breach of the recent peak of 74.5 sen, accompanied by bigger volumes would give investors the confirmation, enroute to the 90-sen mark.

The next upper strong hurdle is resting at the RM1-RM1.08 range. Perhaps, investors can consider taking up a position at current levels, if one is optimistic of the trend ahead.

Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum were on the rise. It had issued a short-term buy at the bottom late last month and now resting at the 82% and 61% level respectively. In addition, the 14-day relative strength index climbed from 31 on April 28 to settle at the 60-point level yesterday.

Though the daily moving average convergence/divergence histogram retained the sell call, trending below the daily trigger line, it had indicated a pretty encouraging convergence pictogram.

Technically, the landscape of this counter still is decisively bullish. With indicators improving, Penta is poised to firm in the short term. As for the downside, Initial support is resting at the 57.5 sen-60 sen band, followed by the 100-day simple moving average of 50 sen. 

http://www.thestar.com.my/Business/Business-News/2015/05/09/Eye-on-stock/?style=biz

Ho Hup Construction on a roll

Its Aurora Place @ Bukit Jalil project fully sold

A YEAR after its exit from PN17 status, small-cap construction and property developer Ho Hup Construction Co Bhd is on a roll.

The company, which dates back to the 1960s, is among the top five of RHB Research’s Top Malaysia Small Cap Companies 2015. PN17 denotes a company in financial distress.

“We are delighted,” says chief executive officer Derek Wong Kit-Leong (pic) in his office in Bukit Jalil, Selangor.

Wong has several other reasons to smile. Mixed commercial development Aurora Place @ Bukit Jalil has sold out and earnings are visible.

This project has been a “huge success”. It occupies about 5 acres and comprises shop offices, retail floors and small offices, versatile offices. The project is fully sold and Wong will be keeping an 18-storey office block, the only office block in that development so far for recurring income.

The entire 10-acre plot, with a GDV of about RM1.1bil, is part of the 60 acres held by its subsidiary Bukit Jalil Development Sdn Bhd (BJD). The other 50 acres would be developed under a joint development agreement between BJD and Pioneer Haven Sdn Bhd, a subsidiary of Malton Bhd, which will be developing Pavilion Bukit Jalil there.

Having completed sales for his first parcel, Wong is targeting to build two blocks of serviced apartments on the remaining three acres after making allowance for infrastructure and amenities like roads and drainage system.

He will be leveraging on the success of Malton’s 50-acre development, which, according to RHB Research, will be launched soon as Bukit Jalil City this year.

Under an agreement hammered out some years ago, Ho Hup will be entitled to 18% of the GDV ranging from RM4bil to RM4.5bil for the 50-acre project.
http://www.thestar.com.my/Business/Business-News/2015/05/09/Ho-Hup-Construction-on-a-roll/?style=biz

SKPRes TP 1.20 by UOBKayHian & TP 1.25 by TA Securities

Stock To Watch
SKPRes @ 0.945 TP 1.22 by UOBKayHian

http://klse.i3investor.com/blogs/ss2020_SKPRES/76219.jsp

hidden GST counter.....finally broke the strong resistance of 0.30 ......hehehe

Eco World completes corporate exercise

Eco World Development Group (EcoWorld) Bhd has completed the last leg of its corporate exercise following a 20 per cent placement of shares to institutional investors which has raised proceeds of RM638.35 million.
In a statement today, the property developer said the order book was subscribed 1.41 times with significant orders from long-term institutional investors.
The exercise has attracted a strong demand from local and foreign investors, it added.

Pursuant to the book-build exercise, EcoWorld said it would be issuing 394.04 million new shares, representing about 20 per cent, of its issued and paid-up capital.

President and Chief Executive Officer Datuk Chang Khim Wah said with the completion of the corporate exercise, the group is well-placed to forge ahead with its growth and expansion plans to achieve its RM7 billion sales target for its financial year 2015 and 2016.

"The group has accumulated 2,122.57 hectares of landbank with a total remaining gross development value of RM61.2 billion to be developed," he added.

With the 20 per cent placement, EcoWorld had raised a total proceeds of about RM2.8 billion from its entire corporate exercise.

Its earlier subscription of shares and rights issues with warrants, were completed in February and March 2015, respectively.

As at 10.18 am, EcoWorld's share prices was flat at RM1.77 with 492,400 shares transacted.-Bernama
http://www.thestar.com.my/Business/Business-News/2015/05/08/Eco-World-completes-corporate-exercise/?style=biz

Bank Negara keeps OPR unchanged at 3.25%

Bank Negara Malaysia’s (BNM) monetary policy committee kept the Overnight Policy Rate (OPR) unchanged at 3.25% as the policy remains accommodative and supportive of economic activity.

It said on Thursday that latest indicators suggested domestic demand has continued to support growth in the first quarter. 

“Looking ahead, the prospects are for the Malaysian economy to remain on a steady growth path, with domestic demand remaining as the key driver of growth,” it said. 

BNM said it expected private consumption to moderate as households adjust to the Goods and Services Tax (GST), which came into effect on April 1.

However, it expected consumption expenditure to be supported by the steady rise in incomes and employment. 

BNM forecast investment activity to be led by capital spending in the export-oriented industries, the services sector and for infrastructure projects. 

“These investments will cushion the impact of the lower oil and gas-related investment activity,” it said. 

On the external front, while export growth will be affected by lower commodity prices, manufactured exports will continue to benefit from the improvement in economic activity in several advanced economies and the sustained growth in Asia.

On Thursday, the International Trade and Industry Ministry (MITI) announced Malaysia’s March exports rebounded with a 2.3% growth to RM66.47bil from a year ago. The growth in exports exceeded economists forecast of a 4.2% decline.

Leading the exports growth were manufactured goods valued at RM52.67bil or 79.2% of total exports in March. This was an increase of 5.7% or RM2.83bil from March 2014.

http://www.thestar.com.my/Business/Business-News/2015/05/07/Bank-Negara-keeps-OPR-unchanged/?style=biz

Sixteen M'sian firms on Forbes ranking of world's biggest public companies

Sixteen Malaysian firms made it to Forbes’ latest annual Global 2000 ranking of the world’s biggest, most powerful and most valuable public companies.

They are Malayan Banking Bhd (ranked 371), Tenaga Nasional (408), CIMB Group (574), Public Bank (578), Sime Darby (709), Axiata Group (932), Genting (1122), RHB Capital (1185), Hong Leong Financial Group (1287), MISC (1318), AmBank Group (1331), Petronas Chemicals (1339), Maxis (1441), Petronas Gas (1485), IOI Group (1559) and YTL (1589).

Criteria for the ranking include sales, profits, assets and market value.

http://www.thestar.com.my/Business/Business-News/2015/05/07/Sixteen-Malaysian-firms-on-Forbes-Global-2000-ranking/?style=biz

KLCI down 15.87pts on bond sell-off, ringgit weakens

The FBM KLCI fell sharply minutes before closing to settle 15.87 points or 0.9% lower as a global sell-off in government bonds hit share market sentiment. The ringgit weakened.

Reuters reported that world financial markets were unsettled again on Thursday as a week-long sell-off in benchmark government bonds, stocks and the dollar, and a race up in oil prices, was compounded by UK election uncertainty.

http://www.theedgemarkets.com/my/article/klci-down-1587pts-bond-sell-ringgit-weakens

Support Line

Boilermech

BOILERMECH Holdings bounced to a high of RM1.58 during intra-day session. A successful penetration of the RM1.60 barrier would signal a new leg of uptrend, targeting a re-test of the historical peak of RM1.80 in the near-term. Initial support is pegged at the 100-day simple moving average of RM1.49.

Perisai

PERISAI Petroleum recovered from a near five-year low of 38 sen in mid-December last year to trade range-bound, attempting to build a base for recovery. A push above the 72.5 sen hurdle followed by a postive breakout of the 86 sen mark would signal a bullish turnaround while the immediate support is resting at the 50 sen-52 sen band.

Press Metal

PRESS Metal shares retraced back to the RM2.80 level on April 28, the worst in near 2½ months before turning range-bound, undergoing consolidation. The trend ahead is pretty straight forward. A decisive breach of the RM3.02 line may see the bulls rallying towards the RM3.22 mark. On the opposite, a clear breakdown from the recent lows will signal the resumption of a downward correction.
http://www.thestar.com.my/Business/Business-News/2015/05/07/Support-Line/?style=biz

AllianceDBS Research 7/5/2015

Technical Buy - SGB 0.60
TP 0.66 -0.70
Cut-Loss - 0.585

SapKen poised to win RM5.35bil global jobs

SapuraKencana Petroleum Bhd (SapKen) is poised to land two international jobs in India and Mexico respectively totalling about US$1.5bil (RM5.35bil), according to a source close to the deals.

This development comes when the crude oil price has crossed US$60 per barrel two days ago, the first time in nearly five months.

The stock has been seeing some buying interest, topping the active list. It closed seven sen or 2.55% higher to RM2.81 against a lacklustre FTSE Bursa Malaysia KL Composite Index performance yesterday.

For the India job, SapKen may even edge out local-based Larsen & Toubro Ltd, as it has put in the lowest bid among the four contenders interested in a portion of the Oil & Natural Gas Corp’s Mumbai High South (MHS) phase three redevelopment project to the tune of US$200mil-US$300mil.

A source revealed that SapKen’s bid – between US$273mil and US$291mil – would have an added advantage, especially with the recent oil and gas (O&G) industry recovery.

SapKen’s bid for the Indian contract was done via its wholly owned offshore construction and subsea services arm, TL Offshore Sdn Bhd.

Larsen & Toubro, Abu Dhabi-based National ­Petroleum & Construction Co and US company McDermott have put in higher bids of US$390mil, US$471mil and US$406mil, respectively.

Besides likely frontrunner Larsen & Toubro, SapKen may face stiff competition if Singapore’s Swiber Holdings Ltd is successful in resubmitting its bid after it had failed to do so earlier due to technical issues, according to reports by an Indian news agency.

The MHS project is speculated to require a new 12-slot well-head platform and two nine-slot platforms with clamped-on structures to be installed.

The job also entails the laying of a total of 115.9km of subsea pipelines in 15 segments.

This is only part of the overall third-phase redevelopment of MHS, valued at US$982.4mil, predicted by some industry experts.

SapKen is not really foreign to the Indian market, as TL Offshore had previously clinched a subcontract for transportation and installation works for the British Gas Exploration & Production India Ltd Mukta B platform and pipeline project by Larsen & Toubro through L&T Sapura Offshore Ptd Ltd, which is an Indian joint-venture company between L&T and Nautical Power Pte Ltd.

The latter is a wholly owned unit of SapKen.

The source only has some sketchy details on the Mexico contract, but the deepwater and shallow structure contracts are expected to be more lucrative at around US$400mil.

Nevertheless, the Americas is SapKen’s new growth target area currently commanding about half of its order book in excess of RM28bil.

The country’s biggest O&G player by market value emerged as the world’s largest operator of tender rigs last year after buying part of Seadrill Ltd’s business for US$2.9bil. In February, it completed the purchase of Newfield Malaysia Holdings Inc for US$895.9mil.
http://www.thestar.com.my/Business/Business-News/2015/05/07/SapKen-poised-to-win-RM535bil-global-jobs/?style=biz

Africa is the next big emerging market

For William Heinecke, chairman and CEO of Minor International, the game plan for business expansion has always been straightforward: find a market gap and fill it.

This time the 66-year old hospitality tycoon is turning his focus on Africa.

"I look at Africa as the emerging Asia, it's like what Asia was 30 years ago. So if an entrepreneur were to ask me where should he go now, frankly Bangkok is so competitive, unless you've got huge capital resources, and you're very good, you better be careful, because you can get burnt badly in Thailand. But in Africa, where many of the brands are not present, at least in our fields, there's limited competition," he told Martin Soong, during CNBC's Entrepreneur Asia: Power Players interview.
http://www.cnbc.com/id/102616590

Oil prices hit fresh 2015 high on weaker dollar, Libya supply woes

Oil prices rose more than $1 to fresh 2015 highs on Wednesday, continuing a month-long rally that has been supported by a weaker dollar and a disruption to crude exports from Libya.

Oil bulls have pushed prices higher this week, after a rally of 20 percent for Brent and 25 percent for U.S. crude prices in April, despite indications that the Organization of the Petroleum Exporting Countries (OPEC) may keep production unchanged at current high levels at a meeting next month.

Brent crude jumped $1.45 to $68.97 a barrel by 8:35 a.m. EDT (1235 GMT), after earlier hitting a 2015 peak of $69.15. U.S. crude traded $1.39 higher at $61.79 a barrel, near an intraday top of $62.08.

"We haven't seen hedge funds and money managers to be as optimistic and bullish as they are currently. They are at their most bullish since July last year, when the oil market fundamentals haven't really changed that much," said Vyanne Lai, oil analyst with National Australia Bank

http://www.cnbc.com/id/102652027

Oil & Gas: Let the Recovery Begins...

WTIC broke above USD60 yesterday. This signaled the beginning of the recovery for crude oil prices. 

I have appended below the 5 stocks that have been recommended as a BUY by both CIMB and Maybank. Out of these 5 stocks, my picks are listed below with their respective entry levels:

1) Perdana (RM1.30)
2) Armada (RM1.20)
3) Dialog (RM1.55)
4) SKPetro (RM2.70)

http://nexttrade.blogspot.com/

Grand-Flo to quietly reap GST benefits

Grand-Flo is a clear beneficiary of GST, It's sales force automation (SFA) solution enables its clients to capture all the output tax at one go. This solution will come handy when businesses start filling their tax claims with the Custom Department.

Grand-Flo's SFA solution, dubbed ManageSales , will allow the speedy consolidation of the businesses' input tax, thus enabling them to submit their claims at the earliest possible date. It will also allow mobile workers, especially those in van sales operations, to perform route sales, direct store deliveries, market & distribution checks.

Consumer good companies, including those in confectionery and tobacco, are using Grand-flo solution to avoid GST claim hassle. Gardenia, Massimo, Mighty White & Fuji Bakery are among Grand-Flo clients.
- The Edge dated May 4, 2015

Grand-Flo to quietly reap GST benefits

Grand-Flo is a clear beneficiary of GST, It's sales force automation (SFA) solution enables its clients to capture all the output tax at one go. This solution will come handy when businesses start filling their tax claims with the Custom Department.

Grand-Flo's SFA solution, dubbed ManageSales , will allow the speedy consolidation of the businesses' input tax, thus enabling them to submit their claims at the earliest possible date. It will also allow mobile workers, especially those in van sales operations, to perform route sales, direct store deliveries, market & distribution checks.

Consumer good companies, including those in confectionery and tobacco, are using Grand-flo solution to avoid GST claim hassle. Gardenia, Massimo, Mighty White & Fuji Bakery are among Grand-Flo clients.
- The Edge dated May 4, 2015

Global semicon sales up 6% y-o-y in 1Q2015 to US$83.1b

Global sales of semiconductors rose 6% year-on-year (y-o-y) in the first quarter of 2015 to US$83.1 billion, according to the US-based Semiconductor Industry Association (SIA).

In a statement on its website on May 4, the SIA said worldwide sales for the month of March 2015 were US$27.7 billion, 6.0% higher than the March 2014 total of US$26.1 billion and 0.1% lower than last month's total.

SIA president and chief executive officer John Neuffer said despite macroeconomic challenges, first quarter global semiconductor sales are higher than they were last year, which was a record year for semiconductor revenue.

"The Americas region posted its sixth straight month of double-digit, year-to-year growth to lead all regional markets, and DRAM and analog products continue to be key drivers of global sales growth," he said.

Meanwhile, MIDF Research maintained its "Positive" rating on the semiconductor sector and said March 2015 marked the 23rd consecutive month of y-o-y growth in semiconductor sales.

It said that sales from the Americas and Asia-Pacific regions have been the main drivers in 2015.
http://www.theedgemarkets.com/my/article/global-semicon-sales-6-y-o-y-1q2015-us831b

yes Tessa, will let John know of Newman's sent regards.

Kawan Food plant on track

Frozen food manufacturer Kawan Food Bhd’s bigger and better factory in Pulau Indah is on track to commence operations by year-end.

“Things are proceeding as planned and we should be able to progressively move in,” chief executive officer Jon Fang told StarBiz.

He added that a lot of preparations were currently under way for the new factory.

Kawan Food is consolidating its operations from its existing facilities in Section 15 and Section 16 in Shah Alam to move to the new 15-acre factory in Pulau Indah.

The new factory will have a production capacity that is five times its two existing factories in Shah Alam.

The new plant comprises a two-storey frozen food factory and a three-storey office, which will enable it to centralise its Malaysian manufacturing operations.

“In addition, the new plant will help Kawan Food cater for future expansion plans, such as introducing products in new categories in the near future that could have a huge potential in Malaysia and other countries, increasing the production capacity for its existing products, and reducing its overall food manufacturing cost. Barring any unforeseen circumstances, it is expected to be completed by March 2016,” said BIMB Securities Research in a recent note.

The research house added that Kawan Food is expected to register net earnings of RM25mil and RM29.7mil for the financial years ending Dec 31, 2015 and 2016, respectively.

“With a steady cash pile, solid cashflows and benefits from the weak ringgit, we believe the company would be able to support its regular dividend payments and capital expenditure moving forward,” said BIMB Research.

With the new factory, Fang said earnings could grow four to five times. “Ideally, it will be as soon as possible, but we have to be realistic. We have to have sustainable growth,” he said.

Kawan Food also has a factory in Nantong, China, which exports a majority of its production to other markets, as well as serving the local market.

The company currently derives 60% of its sales from overseas markets. BIMB Research expects this to improve further once its capacity is enhanced.

Fang added that some new initiatives were being put in place to lay the path for future growth.

“We are looking at some different channels of distribution, and different types of products besides our traditional South-East Asia.

“We are also looking at some new product categories, with the focus still very much on higher convenience products,” said Fang.

Shares in the company had risen 31.43% year-to-date to RM1.84 as at April 30
http://www.thestar.com.my/Business/Business-News/2015/05/05/Kawan-Food-plant-on-track/?style=biz

Five ways to hedge against ringgit volatility

The rising affluence of Malaysians and the ringgit’s gyrations have forced people to look into ways to hedge against the US dollar

Stocks that benefit from the ringgit volatility

Another way to mitigate the ringgit volatility is to invest in stocks that can benefit from a higher US dollar, or even low commodity prices.

“These would include companies whose exports have high local ringgit-denominated content and robust external demand,” says an analyst from a local bank-backed brokerage.

He says the rubber, semiconductor and technology, as well as timber-based sectors, are more resilient in times when the ringgit is weak. He cited the World Semiconductor Trade Statistics, which revealed that global semiconductor sales are expected to remain stable.

Based on the latest forecast, sales are expected to reach 3.4% and 3.1% for 2015 and 2016, respectively, from an estimated 9% growth for 2014, he says.

“The good growth is mainly due to higher demand from the automotive and telecommunications sectors,” he says.

Another analyst concurs that rubber product manufacturers such as Top Glove Corp Bhd, Supermax Corp Bhd and even condom manufacturer Karex Bhd are beneficiaries of the weaker ringgit.

“In the rubber glove segment, this is generally because their US dollar-denominated income will translate into better earnings once it’s converted into the ringgit.”

Other segments are industries such as furniture producers such as Latitude Tree Holdings Bhd and poultry producers that have gained from the currency volatility. The furniture makers gain because their sales are in US dollars, while the poultry players benefit from cheaper raw materials due to the depressed prices of feed stock such as corn that have come down due to the stronger dollar.
http://www.thestar.com.my/Business/Business-News/2015/05/02/Five-ways-to-hedge-against-ringgit-volatility/?style=biz

Wall St ends up sharply as investors buy beaten-down shares

U.S. stocks bounced back sharply on Friday as investors snapped up beaten-down shares in the healthcare and technology sectors, and as data gave further signs of a pickup in the economy.

Apple provided the biggest boost to the major indexes, jumping 3 percent to $128.95 in its biggest daily percentage gain since January. The stock lost 2.7 percent on Thursday.

The Nasdaq snapped a four-day losing streak while the S&P tech sector gained 1.5 percent, among the day's best-performing sectors.

Biotech shares also rebounded, ending a five-day losing streak. The Nasdaq Biotech Index was up 2.9 percent for the day, but lost 5.5 percent for the week, its worst such decline since March 2014.

Shares of Gilead rose 4.5 percent to $105.01, helping to lift both the Nasdaq and S&P 500, after its quarterly profit nearly doubled. The S&P healthcare index was up 1.3 percent.

Investors were also buoyed by an encouraging batch of data for April that suggested the U.S. economy was pulling out of a first-quarter soft patch.
http://www.theedgemarkets.com/my/article/wall-st-ends-sharply-investors-buy-beaten-down-shares

HeveaBoard proposes 1-to-4 share split

Particleboard maker HeveaBoard Bhd ( Financial Dashboard) has proposed a 1-to-4 share split of every one of its existing ordinary share of RM1, held on an entitlement date to be determined later, into four shares of 25 sen each.

HeveaBoard (fundamental: 1.3, valuation: 1.4) said the proposed share split, to be made within the next one month, is expected to “enhance the marketability and trading liquidity” of the shares of the company.

It further noted that the proposed corporate exercise will result in an adjustment to the market price of the ordinary shares of HeveaBoard, making the shares more affordable to appeal to a wider group of public shareholders and/or investors to participate in the company’s growth.

The company’s issued and paid-up share capital currently stands at RM99.45 million, comprising 99.45 million shares. The company has 42.66 million outstanding warrants prior now.

Assuming the full exercise of the warrants prior to the entitlement date, the enlarged issued and paid-up share capital of the company shall be RM142.11 million, comprising 568.43 subdivided shares, upon completion of the proposed share split.
http://www.theedgemarkets.com/my/article/heveaboard-proposes-1-4-share-split

tq bro duit.....huat ah!!!!!

abang duit...awak recommend banyak counter kat chrissycon....bagi satu atau dua baik baik punya di sini.....hehehe

happy holiday to you too abang duit.....hari ini kita buat duit banyak banyak......hehehe

morning bro tj....today so early....hehehe

Consumption’s ‘sleeping giants’ about to wake up

Consumers in Southeast Asia are "sleeping giants" who will wake up to their full potential over the next 5-10 years, recent reports show.

Robust consumption fueled by rising income levels and urbanization are expected to generate an additional $770 billion as 60 million people join the region's consuming class or move into more affluent consumer segments by 2020, according to a study this month by Accenture involving more than 1,800 people in the region.

The formation of the Asean Economic Community (AEC), scheduled to take effect this year, will also enhance the attractiveness of Southeast Asia's consumer markets by making it easier for companies to do business across borders. By 2020, the region could become a $3 trillion economy, making its mark as the world's sixth biggest, Accenture noted.

"The spectacular growth of the Southeast Asian economy represents one of the biggest opportunities for consumer goods companies today," said Dwight Hutchins, managing director in Accenture Strategy, Asia-Pacific.
http://www.cnbc.com/id/102629370

Fed's downgrade of economic outlook signals longer rate hike wait

The Federal Reserve downgraded its view of the U.S. labor market and economy on Wednesday in a policy statement that suggested the central bank may have to wait until at least the third quarter to begin raising interest rates.

The Fed's statement put in place a meeting-by-meeting approach on the timing of its first rate hike since June 2006, making such a decision solely dependent on incoming economic data.

The data, however, have been getting worse. Just hours before the Fed's statement, the U.S. government reported that first-quarter gross domestic product came in much weaker than expected.

The central bank acknowledged that growth had slowed in the winter months, a dimmer assessment of the economy than its view in March. And while it said the poor performance was in part due to transitory factors, it pointed to soft patches across the economy, in a sign it may have to hold off hiking rates until at least September.
http://www.reuters.com/article/2015/04/29/us-usa-fed-idUSKBN0NK09F20150429

Highlights / Stock Picks of the Day - Frontken Corporation Berhad (FRONTKN) – Not Rated

FRONTKN saw some heavy profit-taking activities after it rose to its all-time high level a few days ago. Key indicators are suggesting that the technical correction could be prolonged further to neutralize it overbought situation. MACD indicator is poised for a bearish crossover which will end its one-month bullish outlook. Meanwhile, both Stochastic and RSI indicator are also trending down south from their respective overbought region to imply that selling momentum is pilling up. All in, we advocate investors to wait for the share price to retrace towards its immediate support level of RM0.23 (S1) and look for a reversal signal before entering the stock.

http://klse.i3investor.com/blogs/kenangaresearch/75804.jsp

hi tessa....need to tie those itchy hands until market direction is clearer.....in case more corrections on the way....goodnite ;)

Market Outlook as at April 28, 2015

A few days ago, I wrote about the strengthening of our Ringgit vis-a-vis the USD, which we can clearly see from the chart (link attached)

I failed to follow through and to call a TAKE PROFIT on many stocks that had benefited from the strengthening of USD-MYR in the past 8-9 months. In a mere few days, we saw sharp drop in the prices of exporters, such as E&E players or furniture makers. This correction has now spread out to second & third liners stocks in general. Since many of these stocks had run up substantially over the past 3-4 months, their correction will be very severe.

Be careful!

http://nexttrade.blogspot.com/

Frontken - Earnings Momentum to Sustain into FY15
http://klse.i3investor.com/blogs/hleresearch/75747.jsp

Borneo Oil's Ravishing Proposal - Salvador Dali

http://klse.i3investor.com/blogs/kianweiaritcles/75731.jsp

On behalf of the Board of Directors of Bornoil, RHB Investment Bank Berhad wishes to announce that the Company proposes to undertake a renounceable rights issue of up to 2,373,841,596 new ordinary shares of RM0.10 each in Bornoil ("Bornoil Share(s)") ("Rights Share(s)") at an indicative issue price of RM0.10 per Rights Share on the basis of six (6) Rights Shares for every one (1) existing Bornoil Share held, together with up to 1,186,920,798 free detachable warrants in Bornoil ("Warrant(s) C") on the basis of one (1) free Warrant C for every two (2) Rights Shares subscribed for, on an entitlement date to be determined later ("Proposed Rights Issue with Warrants").

Based on your example above, free warrants should be 30,000 units instead of 20,000 units.

Support Line (Click link to view charts)

D'nonce

SHARES in D’nonce Technology trimmed early gains to close a tick higher at 43 sen. Despite that, prices are expected to firm in the short term, with technical indicators improving. A clear penetration of the stiff barrier of 50 sen may see buyers becoming more aggressive, targeting the 60 sen mark. Crucial support is pegged at the 200-day simple moving average of 37 sen.

Greenyield

GREENYIELD shares were generally rangebound on consolidation since finding a shelter at an eight-month low of 26.5 sen on Feb 18. A successful clearance of the 32 sen mark, followed by a decisive breakout of the 34.5 sen hurdle, would signal a new uptrend. Conversely, a crack of the recent ebb would see the lower floor of 20 sen becoming vulnerable.


JF Technology

JF Technology has been in consolidation mode since late last year following a rally which sent prices up to within striking distance of the all-time high. A break above the 74 sen resistance would open the doors for the bulls to explore new territory. If the 66 sen line is violated, look for the 59 sen line as the next lower support floor.

http://www.thestar.com.my/Business/Business-News/2015/04/28/Support-Line/?style=biz

KKB Engineering Q1 profit soars

Civil engineering firm KKB Engineering Bhd’s net profit for the first quarter ended March 31, 2015 rose more than six-fold to RM26.7mil compared to the same period last year. According to a filing with Bursa Malaysia, the higher profit margin was due to the engineering and manufacturing sectors, especially from steel fabrication and steel pipes manufacturing divisions.
http://www.thestar.com.my/Business/Business-News/2015/04/28/KKB-Engineering-Q1-profit-soars/?style=biz