Oil falls as Asia economies slow, prospect of crude output cut dims

Oil prices dropped early on Monday after China and South Korea posted surprisingly weak economic data and on worries the prospect of a coordinated production cut by leading crude exporters seemed remote.

Front-month Brent crude LCOc1 was trading at $35.54 per barrel at 0157 GMT, down 45 cents, or 1.25 percent, from the last close. U.S. West Texas Intermediate CLc1 was down 35 cents at $33.27 a barrel.

Activity in China's manufacturing sector contracted at its fastest pace in almost three-and-a-half years in January, missing market expectations.

The official Purchasing Managers' Index (PMI) stood at 49.4 in January, compared with the previous month's reading of 49.7 and below the 50-point mark that separates growth from contraction on a monthly basis. It is the weakest index reading since August 2012, and analysts polled by Reuters had predicted a reading of 49.6.

In South Korea, exports posted an 18.5 percent year-on-year drop to $36.7 billion, down to levels last seen at the height of the global financial crisis in 2009.

The data from China and South Korea are the latest indicators of an accelerating slowdown in Asia's biggest economies.

At the same time, the prospects of a coordinated cut in production by leading exporters like the Organization of the Petroleum Exporting Countries (OPEC) and Russia seem difficult to realise due to differences between these producers.

Also, OPEC-member Iran, which last month was allowed to fully return to markets after years of sanctions, is not willing to participate in any cuts.

"The lack of political will may hinder prospects for a deal," ANZ bank said.

In part because of Iran's return, OPEC oil production has jumped to 32.60 million barrels per day, its highest in years, adding to a global glut that is seeing over 1 million barrels of crude produced every day in excess of demand, pulling down prices around 70 percent since mid-2014.

Because of the oversupply, analysts at BMI Research said on Monday that it had reduced its oil price outlook: "We have downgraded our 2016 Brent forecast to $40 per barrel from $42.5 previously."

Its expectation for WTI was to average $39.50 per barrel this year.

"Counteracting oil's upside momentum in 2016 will be the weakness of the Chinese yuan, lingering concerns over global economic growth and the well-stocked inventories of crude and fuels," BMI said, adding that a gradual price rise was expected in the second half of the year.

- Reuters

China's troubles permeate US tech earnings

China is the world's biggest country, second-largest economy and top nation for smartphone sales. It's also driving tech investors crazy.

Economic growth is slowing faster than many experts expected. Add to that uncertainty surrounding when and to what degree the Chinese government will weaken its currency to boost exports.

Just as China is becoming an increasingly crucial market for U.S. tech companies, its volatility is making future earnings hard to predict. As the Nasdaq closes out its worst month since the 2008 financial crisis, down 10 percent as of Thursday's close, China is on everyone's lips.

http://www.cnbc.com/2016/01/29/chinas-troubles-permeate-us-tech-earnings.html

OWG to finish RM180 million Komtar revitalisation job by year-end

http://www.thestar.com.my/business/business-news/2016/01/20/owg-expects-to-finish-rm180mil-komtar-revitalisation-project-by-year-end/

Komtar renovation works to cost RM40 million this year

http://www.thestar.com.my/business/business-news/2016/01/29/komtar-renovation-works-to-cost-rm40mil-this-year/

Eye On Stocks - Perisai Petroleum

PERISAI Petroleum Teknologi Bhd shares were on the rise amid renewed buying momentum after forming a “double-bottom” pattern on March 17, 2009.

The boom, which lasted a good five-year witnessed prices setting records after records, but not without a sharp pullback along the way. They eventually peaked out at an all-time time of RM1.73 on Jan 13, 2014.

Based on the daily chart, Perisai tumbled to a low of 23 sen on Jan 21 but just when it looked defenceless and in great danger of slipping below the previous “double-bottom” to make a new low, a fresh bout of bargain hunting activity emerged from the sidelines to scoop up the shares.

This stock rebounded to a high of 29 sen during intra-day session yesterday, the best level in four weeks.

The prevailing trend still is bearish for now, but with global crude oil prices showing signs of stabilising, if not found a floor, we reckon it is about time investors re-look into the oil and gas sector again, especially Perisai, because it is flirting at an attractive level, with prices trading a shade above the base. After all, how low can they go?.

Elsewhere, the oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index were on the rise. It had issued a short-term buy on Tuesday.

Also on the upward thrust, the 14-day relative strength index improved significantly from a very oversold single-digit reading of five on Jan 21 to finish at the 71-point level yesterday. In addition, the daily moving average convergence/divergence histogram had climbed above the daily signal line to trigger a buy call yesterday.

Technically, the short-term indicators are painting a pretty encouraging pictogram, suggesting Perisai is poised to firm in the immediate term. Initial resistance is pegged at the 100-day simple moving average (SMA) of 31 sen. A decisive penetration of the upper strong hurdle of 38 sen, which is the 200-day SMA may see the fate of this stock turning around, enroute to the 50-sen barrier.

To the downside, the historical low of 21 sen will act as the base for healing process. —K.M. Lee

http://www.thestar.com.my/business/business-news/2016/01/30/eye-on-stock/

MIDF upbeat on Vivocom's potential
29 JANUARY 2016 @ 11:10 AM
KUALA LUMPUR: MIDF Research is upbeat that Vivocom International Holdings Bhd will be able to clinch projects related to railway construction and engineering, as well as the Refinery and Petrochemicals Integrated Development (Rapid) project in Pengerang, Johor, to add to its order book of RM2.4 billion.
“Our assessment derives from its working arrangements with China Railways Construction Corp Ltd (CRCC) and Rapid projects under Technicas Reunidas SA,” it said.
“Additionally, Vivocom has attracted institutional foreign shareholding of 5.4 per cent. The Beijing Construction Engineering Group has also expressed interest to participate in Vivocom’s equity capital structure as well as appoint the firm as its local project delivery partner (PDP).”  
MIDF Research said Vivocom, a construction player with high growth potential, was transforming into a serious player within the various segments of the construction value chain as it assumed the roles of project manager as well as that of main and sub-contractor.
“The company is seen as a beneficiary of China’s massive foreign direct investment into emerging economies under their ‘New Silk Road’ development policy,” it said.
“What is more surprising is the rate of its order book replenishment. It has grown by 33 per cent from RM1.8 billion in the third quarter of last year to RM2.4 billion to date, especially in the mixed development construction segment.
“The total construction backlog is indicative of the success of its joint venture strategy with CRCC by acting as the project manager, sub-contractor or a combination of both.
“Vivacom stands as a frontrunner for sub and main contracting jobs or as PDP in most of the projects financed by CRCC as it functions as the local construction partner,” said MIDF Research.
The analyst said Vivocom, which was formerly known as Instacom, was expected to record pre-tax margin rates of between 10 and 12 per cent, which was above the Kuala Lumpur Construction Index average of eight per cent. “Vivocom’s expected operating margin is illustrative of its business model in project management and sub-contracting.
“Its positions in the construction value chain enables the reduction for construction cost of tender, performance bonds and mobilisation fees" it said

Telcos hit by hefty bill to retain their spectrum

As reported in the Star newspaper, the government has announced that it will optimise the revenue from telecommunication spectrum through a redistribution and bidding process that will be implemented soon. This was announced under the revised Budget 2016. 

According to a CIMB report, if "the MCMC uses the same reserve price benchmark (as per the recent Thai auctions), the minimum Maxis, Celcom and DiGi would have to pay to retain their 900MHz and 1800MHz spectrum are RM2.37bn, RM2.43bn and RM1.46bn, respectively. This would shave off 4.7% of our target price for Maxis, 4.2% for Axiata and 3.8% for DiGi."

The reaction from the market was swift. All three stocks dropped substantially this morning. Both Maxis and Axiata broke their strong horizontal support at RM6.20 & RM5.60 respectively. Digi dropped less and may find support at its horizontal line at RM4.60. As the current prices are still above the revised fair prices for all three counters (as per CIMB's report), it is best to avoid these stocks for now

http://nexttrade.blogspot.my/

China shares rally, but biggest monthly drop in seven years

SHANGHAI (Reuters) - Chinese shares closed sharply higher on Friday, recovering some of the week's losses, but still recorded their biggest monthly fall in about seven years, which has knocked 12 trillion yuan ($1.8 trillion) off the value of its benchmark indexes.

The Shanghai Composite Index closed up 3.1 percent, but it lost twice that over the week and 22.6 percent since the beginning of January, its worst month since October 2008, when global financial markets were sent into a tailspin after the collapse of Lehman Brothers bank.

The CSI300 index of the largest listed companies in Shanghai and Shenzhen ended up 3.2 percent for the day, but lost 21 percent for the month, its biggest decline since August 2009.

http://mobile.reuters.com/article/businessNews/idUSKCN0V40J2

Kim Teck Cheong to pay about RM6m for Sarawak-based distributor

KUALA LUMPUR (Jan 29): Kim Teck Cheong Consolidated Bhd (KTC) ( Valuation: N/A, Fundamental: N/A) has signed a share sale agreement for the acquisition of the entire shareholding of Popular Trading (Borneo) Corp Sdn Bhd at an estimated price of RM6 million, to expand its presence in East Malaysia.

"The proposed acquisition is in line with our expansion plan to further develop our business in East Malaysia. Once we complete the acquisition, Popular Trading will provide us with an additional strong channel of resources for us to achieve our business goals and boost our financial growth," said KTC executive director Dexter Lau in a press statement today.

The estimated purchase price of RM6 million is still subject to adjustments, as it depends on a due diligence that will take into account Popular Trading's net asset value as at Dec 31, 2015 and its net profit after tax for the past three years, said KTC.

The acquisition will be funded by either internally generated funds, bank borrowings or a combination of both. KTC expects to complete the acquisition by the second quarter of 2016.

http://www.theedgemarkets.com/my/article/kim-teck-cheong-pay-about-rm6m-sarawak-based-distributor

Revised Budget 2016 sees 11 measures introduced to spur domestic demand

The 11 measures meant to boost consumption are:

1) Reducing employees' contribution to the EPF by 3% beginning March 2016 to December 2017, in order to increase private consumption expenditure by RM8 billion a year. Employers' contributions remain as they are now.

2) Providing a special tax relief of up RM2,000 to individual taxpayers with a monthly income of RM8,000 or below for the year of assessment 2015. Najib said the government will forego RM350 million in revenue, but 2 million individuals will enjoy tax savings of up to RM475 each.

3) Lightening the rakyat's cost of daily basic necessities. Some of the initiatives are to liberalise the control on import quotas or approved permits on eight agriculture produce temporarily to ensure consistent supply, establishing MyFarm Outlets with prices that are up to 20% below market prices, giving RM50 to paddy farmers for every tonne of cleaned paddy to encourage production, and supplying 20 kg of rice every month to hardcore poor households until December 2016.

4) Mandating that houses priced RM300,000 or below are for sale to first-time homebuyers only.

5) Thirty percent from the levy contribution to the Human Resources Development Fund amounting to RM200 million will be provided to enhance the competency and skills of employees, including retrenched workers.

6) Enhancing tax collection efficiency and amount. The government will double compliance and auditing efforts on tax evaders, restructuring selling channels of duty-free cigarettes and liquors to reduce leakages which resulted in revenue loss of nearly RM1 billion, and tightening free duty treatment on imported vehicles on duty-free islands.

7) Streamlining management of foreign workers system whereby the levy will be clustered into two categories only, which does not include foreign domestic maid category. Government to implement Rehiring Programme to provide opportunities for foreign workers without permits (PATI) to be given valid work permits, in a bid to fulfill industry demand as well as to enable the government to ascertain the number of PATI for security monitoring.

8) Prudent spending, particularly on supplies and services; continue efforts to rationalise provision of grants to government trust funds, federal statutory bodies and government-linked companies (GLCs); as well as rationalise and restructure entities, including companies limited by guarantee (CLBG) and statutory bodies.

9) Focusing on rakyat-centric projects and programmes, as well as projects with high multiplier effect and low import content. Affordable houses, hospitals, schools, roads, public transport and security projects to be prioritised. This will reduce up to RM5 billion in cash flow commitments, but will not affect the economy.

10) Development finance institutions and government-owned venture capital funds to increase financing funds by RM6 billion to provide financing to small and medium enterprises and start-up companies.

11) Urging GLCs to implement the initiative to narrow the income gap between higher management and employees gradually, with the rest in private sector urged to follow suit.

http://www.theedgemarkets.com/my/article/revised-budget-2016-sees-11-measures-introduced-spur-domestic-demand

Major shareholders FMR LLC bought about 34 million shares in 9 Oct 2015 at below RM2.06 per shares & they have been selling since 11 Jan 2016.

Exporters and manufacturers to gain from TPPA

Federation of Malaysian Manufacturers (FMM) says the TPP will diversify and deepen the country’s exports as it promises a degree of transparency and predictability in investment rules, tariff concessions and avenue to address non-tariff barriers. “It will provide a competitive edge over our regional competitors and build investor confidence in Malaysia.”

It lists some examples of how Malaysian exporters would benefit from the deal.

> Malaysian palm oil exports to Canada attract 11% duty. The conclusion of the TPPA will counter the impact on companies exporting to Canada.

> The textile industry is expected to increase its exports by 20% with the elimination of duties on textiles in the TPPA countries.

> In terms of glove exports, there has been a continuous increase in demand of nitrile gloves in the US. There are concerns that China will become more competitive in the exports of nitrile gloves in the near future. Malaysia’s participation in the TPPA will give our glove manufacturers an advantage over China in such exports to the US.

> Mexico has a highly protective tariff regime with some imports attracting tariff rates higher than 35%, with the highest rate for agricultural products reaching 72%. Mexico levies a much higher average tariff on processed products than on raw materials, and the most concerned industries include textiles, clothing, leather, and basic metal industry. The TPPA will provide the leverage needed by Malaysian exports to the Mexican market.

http://www.thestar.com.my/business/business-news/2015/10/10/tppa-in-the-spotlight/

QR as at 30/9/2015 - RM24.838 million was probably a one-off profit
The Group recorded a lower revenue of RM333.488 million for the current financial year compared to RM338.161 million achieved in the preceding financial year. This is mainly due to lower contribution from the property development segment. The Group recorded a higher profit before taxation (“PBT”) of RM75.415 million for the current financial year compared to RM63.182 million achieved in the preceding financial year. The PBT of RM75.415 million comprise RM50.577 million arising from operations and RM24.838 million from increase in fair value of investment properties.

QR as at 30/9/2015 - RM24.838 million was probably a one-off profit
The Group recorded a lower revenue of RM333.488 million for the current financial year compared to RM338.161 million achieved in the preceding financial year. This is mainly due to lower contribution from the property development segment. The Group recorded a higher profit before taxation (“PBT”) of RM75.415 million for the current financial year compared to RM63.182 million achieved in the preceding financial year. The PBT of RM75.415 million comprise RM50.577 million arising from operations and RM24.838 million from increase in fair value of investment properties.

Genting Malaysia
2016 will be the crucial year of execution for GENM. It needs to focus on
meeting its GITP milestones while sustaining the momentum of its existing
domestic gaming business. GENM will be aggressively targeting tourists/mass market gamers from Johor, Singapore and China, given the weaker ringgit. We
expect a recovery in mainland Chinese visitors.
We expect the expanded gaming space to open in mid-2016, together with the
new mall Sky Avenue/Plaza and the new cable car lines. We gather that
Genting Premium Outlet will be ready by end-2016, while 20th Century Fox will open in 2017.
- CIMB Research Jan 25, 2016

@Coldrisks....Georgetown's code ???

Dear Paperplane2016

My portfolio value is RM101,081.66 and should be positive 1.08 % not negative 0.40 %.

http://klse.i3investor.com/servlets/pfs/53901.jsp

Upbeat outlook for medical device exports

Revenue set to double to RM8b next year

GEORGE TOWN: The export revenue of the medical device industry is expected to increase by double-digit percentage in 2016, in tandem with the projected growth of the Asean medical device market, which is expected to double to RM8bil by 2017 from RM4bil this year.

Malaysia External Trade Development Corp (Matrade) chief executive officer Datuk Dzulkifli Mahmud said that in 2015, the export revenue growth of the medical device market was expected to be around 15%.

“From January to November 2015, the export of medical devices increased by 13.6% to RM14.1bil from RM13.5bil in 2014.

“Some 52% of the revenue came from the glove industry, while the non-glove segment contributed the remainder.

http://www.thestar.com.my/business/business-news/2016/01/22/upbeat-outlook-for-medical-device-exports/

Petronas spending cut to hit rig, OSV owners

PETALING JAYA: Asset owners in the rig and offshore support vessel (OSV) segments will be hit the hardest following a news report on Petroliam Nasional Bhd’s (Petronas) plans to cut as much as RM50 billion in spending in the next four years, said Hong Leong Investment Bank (HLIB) Research.

This is due to their heavy involvement in exploration and production (E&P) activities. The rig owners include UMW Oil & Gas Corp Bhd, Perisai Petroleum Teknologi Bhd, while OSV owners include Alam Maritime Resources Bhd, Icon Offshore Bhd, Dayang Enterprise Holdings Bhd and Coastal Contracts Bhd.

On top of that, HLIB Research said, upstream service providers like Uzma Bhd and SapuraKencana Petroleum Bhd will not be spared from the storm, albeit at a milder pace.

It is of the view that the Refinery and Petrochemical Integrated Development (Rapid) project will proceed given the improving prospects of the downstream industry.

“However, further delays can be expected with pricing adjustment and project prioritisation adapting to the lower crude oil price,” it said.

HLIB Research noted that downstream-related fabricators like KNM Group Bhd could still see project awards coming, albeit at a slower pace with thinner project margins.

“In contrast to upstream players, downstream players, especially refiners, have benefited from the crude oil price trend due to improvement in refining margin. Local refiners like Petron Malaysia Refining & Marketing Bhd and Shell Refining Co (Federation of Malaya) Bhd have already seen turnaround in their earnings due to improvement in refining margins,” it explained.

Among HLIB Research’s coverage universe, Bumi Armada Bhd and KNM are the companies given “buy” calls.

Meanwhile, AmResearch said there is a possibility that the RM108 billion Pacific NorthWest Liquefied Natural Gas (LNG) project in Canada, which is awaiting environmental approval from regulators to start construction, will be deferred, revised or aborted altogether.

“This could mean that Petronas could redirect its resources back to Malaysia given that the dynamics of the sector have been fundamentally altered by shale fracking techniques,” it noted.

Assuming the Canada project is deferred, PublicInvest Research said, this could account for the majority RM50 billion cuts target and hence would maintain status quo on domestic operations, as there were ongoing cuts between Petronas and its project partners and vendors during 2015.

AmResearch expects Petronas to prioritise on projects which could generate faster returns in the downstream division given the plunge in upstream activities, such as the RM119 billion Rapid in Pengerang, Johor, RM6.6 billion Sabah Ammonia Urea (Samur) in Sipitang and RM8.8 billion MLNG 9 in Bintulu, Sarawak.

“Beneficiaries from these downstream rollouts are largely foreign engineering groups but locals such as Malaysia Marine and Heavy Engineering Holdings Bhd, KNM and Dialog Group Bhd may be involved as subcontractors,” it said.

AmResearch prefers companies with stable and recurring earnings such as Dialog and Yinson Holdings Bhd as well as downstream players such as MISC Bhd, which benefit from the recovery in petroleum shipping charter rates and slowdown in new build vessels.

PublicInvest Research also highlighted that Petronas could be forced to cut dividends if cash flow constraints or reported losses are apparent despite its expectations to contribute a third of Malaysia’s government revenue.

“The reduction in capital expenditure (capex) and operating expenditure (opex) should see lower investments in operations, however it should not see any contract termination considering the national oil company’s priority to prolong and enhance production for the longer term and would need various service providers to serve this purpose,” it said.

PublicInvest Research is maintaining a “neutral” call on the oil and gas industry given a prolonged low oil price scenario pending oil supply woes that is generating negative newsflow to place further pressure on oil prices.

“Based on our oil supply analysis however, at these lower oil price levels, we should see some producers begin to slow down its supply from non-economic viability from its production costs,” it added.

http://www.thesundaily.my/news/1672393

BNM lowers statutory reserve requirement for banks to 3.5%

KUALA LUMPUR: Bank Negara Malaysia (BNM) is reducing the statutory reserve requirement (SRR) ratio from 4.00% to 3.50%, effective from Feb 1, to ensure sufficient liquidity in the domestic financial system.

The central bank said on Thursday the lowering of the SRR was also to support the orderly function of the domestic financial markets.

This is the first time since July 2011 that BNM had adjusted the SRR. The SRR essentially is the amount of funds that commercial banks are required to keep with the central bank, interest-free, and is an instrument to manage liquidity, while the overnight policy rate (OPR) is the rate at which banks lend to each other.

BNM pointed out that since early 2015, it had relied on its monetary operations, including the reverse repo facility, to provide liquidity to the banking system as net external outflows reduced the amount of liquidity in the system.  

As at Jan 21, 2016, this has amounted to RM40bil. 

http://www.thestar.com.my/business/business-news/2016/01/21/bnm-lowers-statutory-reserve-requirement-for-banks/

Stock With Momentum: CCK Consolidated Holdings

SARAWAK'S integrated poultry producer CCK (Fundamental: 1/3, Valuation: 0.8/3) has gained 39% to RM1.05 in less than two months since announcing its 3Q2015 results on Nov 27, 2015.

For 3Q2015, net profit surged 67% y-o-y to RM3.9 million on the back of a 10% growth in sales to RM135.7 million, driven by better economies of scale and expansion of new retail outlets which helped capture a larger market share.

Over the past four years, CCK has invested over RM90 million in its core businesses of retailing of cold storage products as well as integrated poultry farming and processing. However, return on assets dropped from 13.6% to 5.3% during the same period.

Moving forward, it plans to expand its retail network in both Malaysia and Indonesia. The stock trades at a trailing P/E of 14.4 times and 1.07 times book value. Dividends totalled 2 sen for 2014, giving a yield of 1.8%.

http://www.theedgemarkets.com/my/article/stock-momentum-cck-consolidated-holdings-0

Stock With Momentum: C.I Holdings

Shares of C.I. Holdings (CIH) rose 3.7% to close at RM3.10 on active trade yesterday, with over 2.2 million shares changing hands. In comparison, its average 200-day trading volume was just 255,431 shares.

CIH is primarily engaged in the trading, manufacturing and packaging of all types of edible oils, which accounted for 89.5% of its revenue in FYJune2015. The company also manufactures and distributes tap and sanitary ware.

For 1QFY2016, revenue grew 197.1% y-o-y to RM260.1 million while net profit surged more than 11-fold to RM10.1 million. This was due to net forex gains totaling RM4.4 million and higher contribution from the edible oil products division, which included contribution from its 60%-owned subsidiary Palmtop Vegeoil Products Sdn Bhd (Palmtop), acquired in May 2015.

Last November, Palmtop proposed to acquire the entire stake of Continental Palms Pte Ltd for S$500,000 (RM1.5 million) from Dato’ Sukumaran s/o Ramasamy, who is also a director and substantial shareholder of Palmtop, and a non-independent director of CIH.

http://www.theedgemarkets.com/my/article/stock-momentum-ci-holdings-1

Instacom's subsidiary bags RM240.42 million Sg Besi project

KUALA LUMPUR: Instacom Group Bhd, through indirect subsidiary Vivocom Enterprise Sdn Bhd, has secured a RM240.42mil contract from Coneff Corp Sdn Bhd to construct two commercial towers in Sungai Besi, Kuala Lumpur.

The telecommunication infrastructure and construction group told Bursa Malaysia that said the towers comprised service apartments, two storeys of retail units, a one-storey recreational centre and a seven-storey car park.

The project, to begin in March, will be completed within 45 months. 

Coneff is wholly owned by Bina Bersatu Sdn Bhd, which in turn is 70% owned by Zamurni Sdn Bhd. Coneff was formed in 1989 to undertake developments projects, namely the joint-development Desa Tasik Project with the Kuala Lumpur City Hall.

Instacom shares shed 1 sen to close at 28.5 sen on Wednesday, with 50.79 million shares being traded.
http://www.thestar.com.my/business/business-news/2016/01/20/instacoms-subsidiary-bags-rm240mil-sg-besi-project/

CIMB Research upgrades Supermax to Add with RM5 target price

KUALA LUMPUR: CIMB Equities Research has upgraded glove maker Supermax to Add from Hold with a higher target price (TP) of RM5 from RM2.95 previously due to improving earnings prospects.

It said on Wednesday the higher TP was based on 18.4 times CY17 price-to-earnings (P/E), a 20% discount to Hartalega’s target P/E of 23 times (30% previously). This is based on the compounded annual growth rate (CAGR) of 21% for the FY15-18 EPS.

CIMB Research was among the 15 analysts and fund managers who attended Supermax’s investor briefing on Tuesday at its headquarters in Sungai Buloh, Selangor.

The briefing was followed by a tour to its contact lens division and visit to Plants 10 & 11 in Meru, Klang which have started since 2H15

“We are encouraged that Supermax has finally resolved the much delayed Plants 10 & 11 operations. It has started commissioning with eight lines since 2H15,” it said.

To recap, the deployment of Plants 10 & 11 has been delayed for more than two years due to the lack of water and electricity issues.

As at December 2015, the combined production capacity for both plants were about 2.2 billion pieces per annum or a 17% capacity increase from December 14.

CIMB Research said apart from that, management also shared on the development of its Glove City project in Bukit Kapar, Selangor.

This project will include four plants and is expected to sustain the group expansion plan until 2021. Each plant is expected to have an installed capacity of 7.9 billion gloves per annum.

Supermax is planning to start commissioning Plant 1 in 3Q17. Impressive growth potential from contact lenses

“We are impressed with the group’s development in the contact lens division. We learned that Supermax has already started producing dry lenses for OEM businesses, albeit at a smaller quantity of three million to four million per month. Management expects to see a healthy revenue contribution of about 10% from the division in FY18.

“We are turning optimistic on its growth prospects given that it has finally resolved the utilities issues and management is confident about stronger growth, driven by the Glove City project and new drivers in contact lenses.

“We raise our FY16-18 EPS by 15%-60% as we increase our utilisation rate assumption to over 78% from sub-60% previously as we are more confident with Supermax’s ability to deliver new capacity following the resumption of its Plant 10 & 11 operations,” it said.

http://www.thestar.com.my/business/business-news/2016/01/20/cimb-research-upgrades-supermax-to-add-with-rm5-target-price/

Live: China reports 6.8% Q4 on-year GDP, 6.9% for 2015

China reported fourth-quarter on-year growth of 6.8 percent, and full-year growth of 6.9 percent, in line with a Reuters poll forecast.

http://www.cnbc.com/2016/01/18/live-news-and-analysis-on-chinas-key-q4-and-fy-gdp.html

George Town one of 2016’s top cities to visit

Lonely Planet names the Unesco world heritage site the "fourth most charismatic city to visit in 2016.”

GEORGETOWN: George Town has been ranked as one of 2016’s top 10 cities by largest travel guide publisher Lonely Planet, a fact celebrated greatly by Penang chief minister Lim Guan Eng.
“Penang is named one of the most charismatic cities in the world and in the same level as cities like Rotterdam, Dunlom and Mumbai,” said Lim Guan Eng in a report by the Malay Mail Online.
Ranked the fourth most charismatic city to visit in 2016, the Unesco world heritage site was described as “the crucible of an artsy, modern Malaysia”, and ranked above cities like Rotterdam, Mumbai and Rome.
The article listed the top 10 cities as Kotor, Quito, Dublin, George Town, Rotterdam, Mumbai, Fremantle, Manchester, Nashville and Rome.
Article writer Brett Atkinson opined that George Town’s modern and artsy scene was a “fascinating counterpoint to its historical Unesco World heritage listed streetscape”, and waxed lyrical over the Hin Bus Depot Art Centre along with the city’s regular arts and music festivals that was complemented by “hip accommodations” provided by the city’s growing number of chic boutique hotels.
Atkinson also touched on the hawker food, classic restaurant experiences like at Kebaya in Seven Terraces and even a market tour and cooking class at Nazlina Spice Station.
“Combining Indian, Malay and Chinese influences, Asia’s best street food can be found amid the heritage streets and lanes of Georgetown, Malaysia,” said Atkinson.

http://www.freemalaysiatoday.com/category/nation/2015/10/28/george-town-one-of-2016s-top-cities-to-visit/

"OWG MD Datuk Koh said the group is working on package deals for tourists visiting The Top@Komtar" - The Edge 29 Dec 2015

George Town one of 2016’s top cities to visit

Lonely Planet names the Unesco world heritage site the "fourth most charismatic city to visit in 2016.”

GEORGETOWN: George Town has been ranked as one of 2016’s top 10 cities by largest travel guide publisher Lonely Planet, a fact celebrated greatly by Penang chief minister Lim Guan Eng.
“Penang is named one of the most charismatic cities in the world and in the same level as cities like Rotterdam, Dunlom and Mumbai,” said Lim Guan Eng in a report by the Malay Mail Online.
Ranked the fourth most charismatic city to visit in 2016, the Unesco world heritage site was described as “the crucible of an artsy, modern Malaysia”, and ranked above cities like Rotterdam, Mumbai and Rome.
The article listed the top 10 cities as Kotor, Quito, Dublin, George Town, Rotterdam, Mumbai, Fremantle, Manchester, Nashville and Rome.
Article writer Brett Atkinson opined that George Town’s modern and artsy scene was a “fascinating counterpoint to its historical Unesco World heritage listed streetscape”, and waxed lyrical over the Hin Bus Depot Art Centre along with the city’s regular arts and music festivals that was complemented by “hip accommodations” provided by the city’s growing number of chic boutique hotels.
Atkinson also touched on the hawker food, classic restaurant experiences like at Kebaya in Seven Terraces and even a market tour and cooking class at Nazlina Spice Station.
“Combining Indian, Malay and Chinese influences, Asia’s best street food can be found amid the heritage streets and lanes of Georgetown, Malaysia,” said Atkinson.

http://www.freemalaysiatoday.com/category/nation/2015/10/28/george-town-one-of-2016s-top-cities-to-visit/

"OWG MD Datuk Koh said the group is working on package deals for tourists visiting The Top@Komtar" - The Edge 29 Dec 2015

Sunday, January 17, 2016

US Markets: Bearish Reversal

DJIA broke its uptrend line, SS support at 17500 in August last year. Despite a spirited rebound in October, the index failed to reclaim its uptrend line. Last week, DJIA plunged to the lows of August & September 2015. Having cracked below the "horizontal" line, AB at 16000 last Friday, DJIA must stage a convincing recovery next week. Failure to do so could see the index to retest its August intra-day low of 15400. Beyond this level, the bear market begins.

With slight variation, the same pattern appears in all the other major indices. Next week will be a critical week for the US markets - and the rest of the world markets.

Despite having a stronger technical outlook at the start of the year, our market had also succumbed to selling pressure. If FBMKLCI were to break below 1630, I believe we could revisit the August low of 1500 again.

http://nexttrade.blogspot.my/

FBM KLCI to trend lower next week

Posted on 16 January 2016 - 11:28am

KUALA LUMPUR: The key benchmark FTSE Bursa Malaysia (FBM KLCI) is expected to trend lower next week on lingering concerns over the slowdown in China and depressing crude oil prices.

Affin Hwang Investment Bank vice-president and retail research head Datuk Dr Nazri Khan Adam Khan said instability in the Chinese currency and equity market would aggravate the negative mood in the market.

"Given that the renminbi is unstable, global sentiment is likely to be fragile in the near term," he told Bernama.

On the technical front, the FBM KLCI's trend had turned bearish after the index fell 30 points or 1.7% in the first week of 2016.

Immediate support and resistance for the FBM KLCI are currently pegged at 1,650 and 1,680 respectively, and given the current challenging economic climate, the index will continue to trade on a downside-bias towards 1,600.

Malaysia's Industrial Production Index, which climbed a marginal 1.8% year-on-year, the slowest in 16 months, might suggest a breather in the local economy, therefore putting a lid on upside momentum.

Meanwhile, FXTM Research Analyst Lukman Otunuga said crude oil remained fundamentally bearish on concerns around the unrelenting oversupply in the markets, which is still at record levels.

"From a technical standpoint, the outlook for West Texas Intermediate crude oil is heavily bearish as there has been consistently lower lows and lower highs," he added.

Furthermore, he said renewed weakness for the ringgit versus the US dollar, which was down 2.5% week-on-week putting the currency pair on track for the lowest finish since November 2015, would also act as a dragging catalyst.

"Sector-wise, we see ample play on technology stocks which benefit strongly from the conclusion of Trans-Pacific Partnership Agreement, the biggest free trade agreement in Malaysian history and lay the foundation for bigger export for years to come," he added.

http://m.thesundaily.my/news/1667894#sthash.RCYqfQYA.dpuf

If u buy at 2.83 when the article 'OWG - Building Tower Of Gold' was published on 12/1/2016, the price now is 3.24 including bonus ( 2.70 X 6/5 = 3.24 )

@ johnny cash.....good....greatest supporter of owg......all the haters has gone into hiding, they will be back when owg under profit taking.

Blog: BursaKakis - All posts

Technical Ideas - 14 Jan 2016 - HOVID (7213) | BIOHLDG (0179)

ONLY WORLD GROUP (5260) - BUILDING TOWER OF GOLD
Technical Ideas - 11 Jan 2016 - HALEX (5151) | REXIT (0106)
Technical Ideas - 8 Jan 2016 - NTPM (5066)
Technical Ideas - 7 Jan 2016 - SKPRes (7155) | Dufu (7233) C.I.HOLDINGS BHD (2828) - A F&B GIANT AWAKENS !!!
Technical Ideas - 4 Jan 2016 - GUH (3247)
Technical Ideas - 31 Dec 2015 - IKHMAS (5268)
Technical Ideas - 30 Dec 2015 - CIHLDG (2828)
CCK (7035) - More Than Chicken & Egg
Technical Ideas - 29 Dec 2015 - GHL (0021) | Keinhin (7199)
My Picks - Top 10 Stocks For Year 2016
Technical Ideas - 28 Dec 2015 - Mieco (5001) | Cenbond (7171) Technical Ideas - 23 Dec 2015 - TGuan (7034)

Genting RM5 billion Integrated Tourism Plan - Thus far, the 1,300 room three-star hotel is ready. For the 2nd half 2016, the new cable car system, Sky Avenue and Sky Plaza shopping mall, and a multi-storey car park will be ready. The 20th Century Fox World theme park will likely be open in 2017.

Thank you

@nina, timing is the most difficult n nobody can predict when is the time to buy or sell. I haven't bought any, just 6c6c chart just now & posted it since it looks quite bullish.

Technical Ideas - 14 Jan 2016 - HOVID (7213) | BIOHLDG (0179)

http://klse.i3investor.com/blogs/bursakakis/89751.jsp

Technical Ideas - 14 Jan 2016 - HOVID (7213) | BIOHLDG (0179)

http://klse.i3investor.com/blogs/bursakakis/89751.jsp

Technical Ideas - 14 Jan 2016 - HOVID (7213) | BIOHLDG (0179)

http://klse.i3investor.com/blogs/bursakakis/89751.jsp

@devi, bonus shares can be sold on the first day of ex-bonus even though it has not been credited to your cds account. Just contact your remisier to do the necessary.

http://www.bursamalaysia.com/market/listed-companies/company-announcements/4968005

On Our Radar – Furniture Manufacturers Riding on the USD Bandwagon

We view the Malaysian furniture industry as a potentially undervalued sector which is poised for re-rating, driven by: (i) their high proportion of export sales, (ii) margin expansion on strengthening USD, (iii) sector-wide capacity expansion, (iv) long-term growth riding on the TPPA, and (v) healthy balance sheets. We peg the sector valuation at an average of 10.6x Fwd. PER, which is at a premium to board makers' average Fwd. PER of 9.5x as the sector shares similar positives (consistent EPS growth, steady margin expansion) but enjoys better fundamentals (higher dividend yields, stronger balance sheet positions). Our valuation is applied to annualised latest quarters' EPS, with adjustments for growth and seasonality. The resulting fair values indicate strong return potential for furniture makers averaging +15%. Among the furniture players, we see above-average return potential for: LATITUD (Fair Value: RM9.55; Total Return: 20%), LIIHEN (FV: RM4.01; TR: 55%), POHUAT (FV: RM2.54, TR: 34%) and SHH (FV: RM3.09, TR: 35%).

http://klse.i3investor.com/blogs/kenangaresearch/89699.jsp

Quote from blog :-

" Thank you for all the feedbacks. Many from Penang are sceptical on Komtar. But outsiders may see it with a different picture. Every public holidays, the journey by car to Penang from KL took about 8 hrs, double the usual time.

Penang is Malaysians number one destination besides KL. Many new places of attractions have been created. People do not just visit the old places like Gurney Drive, Batu Ferringhi, Balik Pulau, Snake Temple & Kek Lok Si. Once a dead attraction, Bukit Bendera (Penang Hill) is now bursting with tourist. Just to get on the train took more than 2 hours during public holidays of May 1 & Dec 25.

The dirty & smelly back lanes are also full of tourist appreciating those nostalgic wall murals. A visit to George Town will not be complete without queuing to treasure the 'Little Children On A Bicycle' mural in Armenian Street, painted by young Lithuania-born artist Ernest Zacharevic.

Tourist interested in local culture also lines the numerous Chinese Clanhouse Kongsi, especially the famous Khoo Kongsi, the grandest clan temple in the country.

The clean & scenic Straits Quay, Penang's first & only seafront retail marina is also not to be missed.

Many unwanted places have been turned into popular attractions. Why is it different for Komtar ? Komtar is a Penang Revitalisation Project and i belief the state government will ensure it's success. "

Thank you for all the feedbacks. Many from Penang are sceptical on Komtar. But outsiders may see it with a different picture. Every public holidays, the journey by car to Penang from KL took about 8 hrs, double the usual time.

Penang is Malaysians number one destination besides KL. Many new places of attractions have been created. People do not just visit the old places like Gurney Drive, Batu Ferringhi, Balik Pulau, Snake Temple & Kek Lok Si. Once a dead attraction, Bukit Bendera (Penang Hill) is now bursting with tourist. Just to get on the train took more than 2 hours during public holidays of May 1 & Dec 25.

The dirty & smelly back lanes are also full of tourist appreciating those nostalgic wall murals. A visit to George Town will not be complete without queuing to treasure the 'Little Children On A Bicycle' mural in Armenian Street, painted by young Lithuania-born artist Ernest Zacharevic.

Tourist interested in local culture also lines the numerous Chinese Clanhouse Kongsi, especially the famous Khoo Kongsi, the grandest clan temple in the country.

The clean & scenic Straits Quay, Penang's first & only seafront retail marina is also not to be missed.

Many unwanted places have been turned into popular attractions. Why is it different for Komtar ? Komtar is a Penang Revitalisation Project and i belief the state government will ensure it's success.

ONLY WORLD GROUP (5260) - BUILDING TOWER OF GOLD

http://klse.i3investor.com/blogs/bursakakis/89487.jsp

ONLY WORLD GROUP (5260) - BUILDING TOWER OF GOLD

http://klse.i3investor.com/blogs/bursakakis/89487.jsp

Kim Teck Cheong aims to double revenue by acquiring competitor

KUALA LUMPUR: Kim Teck Cheong Consolidated Bhd (KTC), already one of the largest consumer packaged goods distributors in Sabah and Sarawak, expects to double its revenue with the proposed acquisition of Sibu-based distributor and wholesaler Popular Trading (Borneo) Corp Sdn Bhd.

The company, which made its listing debut last November, told Bursa Malaysia that it had signed a memorandum of understanding (MoU) to acquire 100% equity interest in Popular Trading.

It said the purchase price would be a sum equal to 100% of Popular Trading’s net assets value as at Dec 31, 2015 and a sum equivalent to twice the average net after-tax profit for the financial years ended Dec 31, 2013 to 2015.

According to KTC, Popular Trading is a prominent household name in Sarawak with 48 years of experience in the line of distribution, wholesale trading and food manufacturing covering Sarawak, Sabah and Labuan.

KTC group executive director Dexter Lau said in a press statement that KTC entered the Sarawak market two years ago and the business in the state had grown by a strong double digits.

The proposed acquisition, he said, “will expand our trading business, network, infrastructure and also increase our human resource by three times our present capacity in order to meet with the huge expansion plans we have targetted and planned. We shall further leverage on their human capital and asset, bringing with them a wealth of experience and years of relationship built over the years within their highly influential network.”

KTC shares fell half a sen to close at 44.5 sen on Monday, with 12.73 million shares changing hands.

http://www.thestar.com.my/business/business-news/2016/01/11/kim-teck-cheong-aims-to-doubke-revenue-by-acquiring-competitor/

Moody's cuts Malaysia's rating outlook due to growth risks

Moody's cut Malaysia's sovereign rating outlook to stable from positive on Monday due to the negative impact of changes in the external environment on the Southeast Asian economy's growth.

The ratings agency said the change in outlook reflects a deterioration in Malaysia's growth and external credit metrics due to external pressures over the past year.

It affirmed Malaysia's issuer and senior unsecured bond ratings at A3.

Moody's said the changes in the external environment have reduced government revenues over the period.

"Those environmental changes have also undermined Malaysia's external position, with large capital outflows, a falling current account surplus, sharp exchange rate depreciation and falling reserves," the ratings house said in a report.

Alongside a worsening external environment, material domestic imbalances continue to pose a risk to growth and household debt levels remain high, it added.

Despite progress in relation to fiscal consolidation, Moody's expects Malaysia's public debt burden and debt affordability will see only limited improvement.

On Monday, Malaysia's November industrial production slowed to its weakest pace in 16 months, hurt by weaker global demand and a decline in mining production.

http://www.cnbc.com/2016/01/11/moodys-cuts-malaysias-rating-outlook-due-to-growth-risks.html

AWC gets nearly RM62m plumbing job for KL 118 Tower

KUALA LUMPUR: AWC Bhd has secured a RM61.95mil contract for the plumbing works of the KL 118 Tower Project, which will be a mixed development project.

AWC said on Monday its unit Qudotech Sdn Bhd was awarded the plumbing contract by Samsung C&T Corporation UEM Construction JV Sdn Bhd. The owner of the project is PNB Merdeka Ventures Sdn Bhd.

It said the contract would be on Nov 2, 2015 and completion date by December 2019.

According to AWC, the KL 118 Tower Project is a mixed development project comprising residential, hotel and commercial space. It would be at the existing Stadium Merdeka and Stadium Negara site and once completed, it was expected to be the tallest building in Malaysia at over 500 metres high.
- The Star Biz 11 Jan 2016

Dofico has a variety of businesses, including the manufacturing of industrial products, supplying agricultural materials and processing agricultural products, foodstuffs, exploiting natural resources,
manufacturing building materials, supplying tourism services, commercial, import and export services. Its products includes all kinds of cigarettes, agricultural materials, canned foods,cottons, meats, poultry’s eggs, pager packages, beers and beverage, livestock nutrition, building materials (soil, sand and stone), fertilizers, plant seeds, etc.

Congrat Lim HangKok :)

Technical Ideas - 11 Jan 2016 - HALEX (5151) | REXIT (0106) 

http://klse.i3investor.com/blogs/bursakakis/89471.jsp