News Highlights - Malaysia Building Society, MISC, Automotive Sector

Malaysia Building Society Bhd (RM2.46/share)

Selling Gadini to Ken for RM56m

Malaysia Building Society Bhd (MBSB) is selling its 100% stake in its property development unit, Gadini Sdn Bhd, to Ken Holdings Bhd for RM56.2mil. MBSB said the proposed disposal was in line with its objective to sell non-income generating assets, foreclosed properties and properties previously acquired. The company said the exercise is expected to be completed in the fourth quarter of this year and proceeds from the disposal would be utilised for the expansion of its financing business. – Business Times

MISC Bhd (RM4.78/share)

Sees profit after exiting liner business

MISC Bhd is confident of returning to the black in the second quarter ended June 30 after making a total provision of RM1.7bil from exiting its liner business. This provision was the main factor dragging down the shipping giant one of the world’s leading owner-operator of liquefied natural gas (LNG) vessels into the red in the previous two quarters. President and chief executive officer Datuk Nasarudin Md Idris said he hoped to put the liner chapter behind and that it (the company) would unlikely be providing further provisions. The liner exit also marked the company’s renewed focus towards its energy transportation and logistics businesses, which include its stable income segments such as LNG shipping, offshore and tank terminal. Other segments of the company are petroleum and chemical shipping as well as the heavy engineering business. – StarBiz

Automotive Sector

Malaysia’s new car sales up 2pc in first half

Malaysia’s new car sales reached 303,100 units in the first half of this year, up almost 2% from 297,200 units sold in the same period last year. Perusahaan Otomobil Kedua Sdn Bhd (Perodua) managing director Datuk Aminar Rashid Salleh estimates the total industry volume to hit between 612,000 units to 615,000 units this year.  The Malaysian Automotive Association had forecast car sales of 615,000 units this year over the 599,877 units recorded last year. – Business Times

Source: AmeSecurities