NiCorp: Raymond Chan was selling down his 12.19% stake in Nicorp to 9.63%, He disposed of 5.4 million shares on Sept 25, 2012 at 26 sen per share and 12.6 million shares on Sept 26, 2012 at 24.5 sen per unit.
But on 03 Oct 2012 he bought three million shares in Nicorp after the trimming at 20.3 sen apiece raising his holdings by about half a percentage point to 10.06%.
As at end June 2012 Nicorp’s net tangible asset was worth 10.72 sen. In second quarter to end June 2012, the company posted a net loss of rm358000 on turnover of rm21.21 million.
MUI: Its chairman Tan Sri Khoo continued to accumulate shares in the group, effectively increasing his stake in MUI to 11.8%. Speculation on Khoo’s possible comeback to the Malaysian corporate scene surfaced after he was seen at a luncheon with PM Datuk Seri Najib and other leading Chinese businessmen.
As at end June 2012 Nicorp’s net tangible asset was worth 10.72 sen. In second quarter to end June 2012, the company posted a net loss of rm358000 on turnover of rm21.21 million.
MUI: Its chairman Tan Sri Khoo continued to accumulate shares in the group, effectively increasing his stake in MUI to 11.8%. Speculation on Khoo’s possible comeback to the Malaysian corporate scene surfaced after he was seen at a luncheon with PM Datuk Seri Najib and other leading Chinese businessmen.
AZRB: PNB has awarded a rm673 million contract to AZRB to build a 50 storey hotel towers in the heart of KL. It will built on the site of the podium of the old MAS building in Jln Sultan Ismail. This contract brings AZRB’s new orders year to date (Oct 2012) to rm1.44 billion. It had earlier secured a rm765 million Klang Valley MRT viaduct construction.
Meanwhile expect the palm oil trees to begin contributing positively to the group’s earnings in FY2014. The group has currently over 5000ha of planted land with trees averaging three years’ old.
A potential upside for AZRB was the proposed 40km KLORR project, the concession agreements of which are being finalized. Should the project get the nod from the relevant authorities, this could be a major re rating catalyst for AZRB, especially if the terms of the concession favor in the long run.
KeyWest: It stand a chance to avoid being delisted from Bursa Malaysia as the company has managed to find a sponsor. It is facing the prospect of being delisted from the stock exchange mainly because the company failed to appoint a sponsor within three months since it was categorized as a GN3 company on May 31, 2012. However KeyWest announced that it had appointed M&A securities as it sponsor on 02 Oct 2012. It had also said Key West had submitted an appeal against Bursa Malaysia’s move to delist the company’s shares from the stock exchange.
Time Eng: UEM Group is looking to divest its interest in Time Eng an exercise hopes to complete by end 2012. UEM Group has a 45.03% stake in Time Eng. Following the disposal of its interest in TimeDotcom in 2011, Time Eng is a clean company and is in a net cash position.
The CPO Industry:
Why CPO Prices Fell ?
Investors fretted over rising stocks that may outpace slowing demand and the uncertain global economic outlook.
A cargo surveyor reported a dip in Malaysia’s Sept 2012 exports from a month ago, which could lead to further build up in stocks on high production and weigh on prices that have fallen by more than a fifth since the start of 2012.
Sept and Oct are the peak of the production cycle for the year so producers are willing to sell at lower prices.
We have one more month to go in terms of high production. After that prices should be able to pickup.
Palm oil’s demand supply fundamentals looked weak.
Palm oil exports in Sept 2012 were weaker than expected, slipping 0.7% compared with Aug 2012.
Malaysiahas been pushing out more crude palm oil shipments to curtail the rise in stocks that have hit a 10 month high at 2.1 million tones. Industry analyst Dorab Mistry expects stocks to hit three million tones in 2013.
Will CPO’s Price Rebound ?
Investors fretted over rising stocks that may outpace slowing demand and the uncertain global economic outlook.
A cargo surveyor reported a dip in Malaysia’s Sept 2012 exports from a month ago, which could lead to further build up in stocks on high production and weigh on prices that have fallen by more than a fifth since the start of 2012.
Sept and Oct are the peak of the production cycle for the year so producers are willing to sell at lower prices.
We have one more month to go in terms of high production. After that prices should be able to pickup.
Palm oil’s demand supply fundamentals looked weak.
Palm oil exports in Sept 2012 were weaker than expected, slipping 0.7% compared with Aug 2012.
Malaysiahas been pushing out more crude palm oil shipments to curtail the rise in stocks that have hit a 10 month high at 2.1 million tones. Industry analyst Dorab Mistry expects stocks to hit three million tones in 2013.
Will CPO’s Price Rebound ?
The plunge in CPO prices from late Sept to early Oct 2012 by speculative selling over fears of a build up of stocks. Export figures on Sept 2012 harvest suggest that stocks could rise to 2.5 million to 2.6 million tones by end Sept 2012, higher than the 2.3 million tones expected earlier.
However it is believe there is sufficient storage capacity but the concern is that buyers may defer purchases. Expect CPO price to rebound by end 2012 due to its attractive pricing relative to soybean oil and also a return of a potential El Nino.
The plunge was concerned that slowing demand will cut shipments from the biggest producers.
The plunge was concerned that slowing demand will cut shipments from the biggest producers.
Some critics that any rebound could be capped due to the prevalent view that inventory of CPO will reach an all time high in the 4QFY2012 on higher production and lower exports. The MPOB will be announced the Sept 2012 numbers on 10 Oct 2012. While potential adverse weather will be another factor to watch, the impact on harvests will be minimal.
Demand typically picks up around this time (Oct 2012) of the year due to upcoming feedstock. Also CPO is at an attractive discount to soybean oil and is attractive as a biodiesel feedstock (Brent crude oil price of US$110 per barrel).
Expect CPO price to hit bottom soon as the steep fall should have priced in most of the negatively in the market and expectations of a peak for Malaysian inventories in Oct 2012.
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