On The Platter
STRATEGY – Myanmar
Beneficiaries: Fortune Favours The Bold
While Malaysian companies are only just
jumping on the Myanmar bandwagon, we believe that opportunities abound in that country although the
risks remain. There appears to be
opportunities in the areas of
agriculture, O&G, power, tourism and telecoms. Malaysian companies such as
AirAsia, Axiata, Felda, Cypark and Tan Chong that are exploring opportunities
in Myanmar will still have to tread cautiously in the coming months before
their efforts bear fruit. Nonetheless, given the keen
interest in Myanmar, investors should keep a close eye on the efforts of these companies in the event
sanctions are lifted and the pace of reforms picks up.
QL RESOURCES (FV RM3.64– BUY) Company Update:
Mini Conglomerate in The Making
HLBANK (FV12.54 –
NEUTRAL) Corporate News Flash: Firms up Sale of MIMB
Market Review
Last minute buying
support. FBM KLCI perked up 5.89 pts on Tuesday to 1,597.17 as investors
snapped up selected heavyweights at the
last minutes of trading. Today’s key market
news are Crest Builder-Detik Utuh JV will build a tower atop the Dang Wangi LRT
station, Proton denies Datuk Seri Syed Zainal Abidin has quit as MD, Hibiscus
Petroleum to enter Norway’s O&G scene, Hong Leong Bank to sell MIMB stake
to Hong Leong Capital, Lingui’s board agrees to put forward a privatisation proposal and Seacera is to buy
138 acres in Semenyih for RM78.1m.
Overnight, US stocks rebounded from an extended
losing run after Spanish and Italian bond yields fell and aluminium maker Alcoa
Inc. reported a surprising profit. With the DJIA rising 89.46 pts, or 0.7%, to 12,805.3, we think
the local bourse may just put aside the negative sentiment from the sharp drops
in the US and EU markets on Tuesday.
MEDIA HIGHLIGHTS
Tower atop LRT
station
In what may be Syarikat Prasarana Negara’s most ambitious
project yet to unlock value from its real estate, the national public transport
operator is partnering with a developer to build a billion-ringgit tower atop
its Dang Wangi light rail transit (LRT) station. The project, won by Crest
Builder Holdings and its 49% joint-venture (JV) partner Detik Utuh SB two weeks
ago, is for the construction of a single-block mixed development fronting Jalan
Ampang with a gross development (GDV) of RM1.0bn. (StarBiz)
Syed Zainal still MD,
says Proton
Proton Holdings has said Datuk Seri Syed Zainal Abidin Syed
Mohamed Tahir is still holding the position of group managing director of the
national carmaker, and that his services are still required in the company. It
was responding to a Edge Financial Daily report on Tuesday citing sources that
Syed Zainal had resigned from the company. Proton in a statement on Tuesday
said it was not aware of the speculation. (Financial Daily)
Seacera to buy
138-acre land in Semenyih
Ceramic company Seacera
Group has proposed to buy a 138-acre plot of land in Semenyih, Selangor,
for RM78.1m from Duta Skyline SB. The deal is expected to be completed within
five years, said the company in its exchange filing on Tuesday. The land will
be used for future property development, said the company. The amount will be
settled via RM13m in borrowings, and the remainder from internal sources.
(Malaysian Reserve)
Hibiscus Petroleum to
enter Norway’s O&G scene
Lime Petroleum plc, jointly controlled by Hibiscus Petroleum, has signed a Letter of Intent
(LOI) with North Energy ASA and Rex Oil & Gas Ltd to acquire a portion of
North Energy's interest in four concessions, offshore Norway. Under the LOI,
Lime is expected to sign a framework sale and purchase agreement with North
Energy, which will detail the terms of the acquisition by 30 April. A special
sale and purchase agreement for the interest in each concession is also
expected to be signed subsequently, the company added. (BT)
Hong Leong Bank signs
deal to dispose of MIMB
Hong Leong Bank has sealed a sale and purchase agreement
with Hong Leong Capital to sell its 100% stake in MIMB Investment Bank (MIMB)
for RM157.9m. The proposed acquisition is part of an exercise to rationalise
the investment banking businesses involving
MIMB and Hong Leong Investment. The deal is expected to be completed in
the second quarter of this year, Hong Leong Bank said in a statement to Bursa
Malaysia on Tuesday. (BT). Please see
accompanying report
ECONOMIC
HIGHLIGHTS
South Korea: March
adjusted jobless rate falls to 3.4%
South Korea's seasonally adjusted unemployment rate came
down from February's 11-month high in March, falling for the first time in
three months. The seasonally adjusted jobless rate was at 3.4% in March,
compared with 3.7% in February. Unadjusted, the reading was at 3.7% last month,
down from February's 4.2%. The number of employed Koreans in March rose by
419,000 from a year earlier, to 24.3m, compared with an increase of 447,000 in
the preceding month. (MarketWatch)
Bangladesh: To get
USD987m IMF loan after reserves fell
The IMF approved a USD987m loan to Bangladesh today after
rising oil imports depleted the country’s currency reserves. Bangladesh will
immediately receive USD141m under the three-year arrangement. Conditions for
the loan include a “restrained” monetary policy, a reduction of trade barriers
and “moderate” fiscal consolidation, according to the release. (Bloomberg)
Australia: Feb home
loans down
Australian home-loan approvals fell for a second month on
the fastest exodus of first-home buyers in a decade, increasing pressure on the
central bank to cut interest rates as consumer confidence weakens. The number
of loans granted to build or buy houses and apartments fell 2.5% in February
from a month earlier, the biggest drop since March 2011. (Bloomberg)
Japan: BOJ members
asked to meet lawmakers amid pressure to loosen
The ruling Democratic Party of Japan has asked four members
of the Bank of Japan’s policy board to meet with DPJ lawmakers this month amid
pressure for the central bank to
increase monetary easing to end deflation. Kouhei Ohtsuka, a leader of
the ruling party’s official policy group on countering deflation requested that
they attend the next meeting. (Bloomberg)
Japan: Machinery
orders show surprise rise but risks loom
Japan's core machinery orders rose unexpectedly in February,
reinforcing expectations that rebuilding in the earthquake-battered northeast
will bolster corporate spending and economic recovery although risks loom from a
resurgent yen and wobbly overseas
economies. Core machinery orders, considered a leading indicator for capital
spending, rose 4.8% in February from the previous month, beating the median
forecast for a 0.8% decline. (Bloomberg)
US: Fed says economy grew at ‘modest to moderate’ pace
The Federal Reserve said the economy grew in all 12 of its
regions as manufacturing, hiring and retail sales showed signs of strength in
the face of higher fuel prices. “The economy continued to expand at a modest to
moderate pace from mid-February through late March,” the Fed said. “Hiring was
steady or showed a modest increase across many districts.” (Bloomberg)
US: Import prices
jump 1.3% in March
The prices paid for goods imported into the US jumped 1.3%
in March, mainly because of higher oil costs. That compared to a revised 0.1%
decrease in February. Import prices in February were originally reported up
0.4%. Fuel costs shot up 4.3% as the
price of oil surged. Excluding fuel, import prices rose by a much smaller 0.3% last
month. (MarketWatch)
Source: OSK188
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