Stock to watch - Sime, MRCB, Masteel,
PETALING JAYA: Mudajaya Group Bhd's earnings could be impacted by the floods in India which have affected its independent power producer (IPP) project, analysts said.
According to OSK Research, the floods have caused delays to Mudajaya's RM3.4bil IPP equipment procurement contract.
“While heavy rainfall during the monsoon season is common, the rain this year has been unusually intense.
“Earlier this year, Mudajaya announced that its IPP job had experienced delays because of protests by villagers at its project site but the issue was eventually resolved,” it said in a report.
Overall, the protests and flooding have caused Mudajaya's project to be delayed by an estimated eight to nine months, it pointed out.
It added the contract delay involved mainly civil works, which were estimated at 10% to 15% of the contract value.
The Chhattisgarh plant in India is a coal-based power plant with four 360 MW units of modular form equipment.
“Further delays to the plant may affect the group's earnings for next year, but with the plant to be completed by 2013, the group will have a stable recurring income from the project as they also co-own it,” said a local research house analyst.
It was reported that the plant, when fully operational, might provide a minimum income of between RM60mil and RM70mil to the group.
On the local front, an analyst said the group, with its expertise in power plant design and construction, has a good chance to participate in the 1,000 MW Tanjung Bin extension, which is expected to be worth RM675mil to RM900mil.
OSK Research said there was still jobs flow for Mudajaya and it was targeting some contracts from the West Coast Expressway.
thestar
PETALING JAYA: The ongoing media war between Megasteel Sdn Bhd and the Malaysian Iron and Steel Federation (MISIF) on the issue of additional duty on imported hot rolled coils (HRC) should be put to a stop.
Clarifying an earlier statement by Megasteel chairman Tan Sri William Cheng, a MISIF spokesperson said: “Nearly 85% of MISIF's members approached in a MISIF survey had indicated that their company operations would be negatively impacted if Megasteel's petition for a safeguard duty was imposed.” MISIF also said the 14 companies mentioned earlier by Cheng were mostly interested parties that would be directly affected by the safeguard petition on additional duty.
They had decided to act collectively through a joint effort, including the engagement of trade and legal experts in the investigation process and they had made submissions provided under the safeguard law and regulations.
In his statement, Cheng had highlighted that only 14 out of 138 MISIF members were complaining about the petition.
Megasteel, in its petition, has asked for an additional 35% duty imposed on imported HRC, which currently attracts an import duty of 25%.
There were other affected companies which had decided to address the matter via their own initiatives, and some through their parent companies overseas, the spokesperson told StarBiz yesterday.
Some companies wanted to remain anonymous while others, though not involved in similar flat products, had shown their support.
Cheng, in his statement, had spoken of a clear basis to confirm the surge in HRC imports, referring to MISIF president Chow Chong Long's speech at the South-East Asia Iron and Steel Institute (SEAISI) conference in May that almost one million tonnes of HRC were imported in 2010 and that local production had declined to 1.2 million tonnes in 2010 from 2.1 million tonnes in 2007.
The spokesman rebutted that the total HRC imports included grades/specifications that Megasteel was not able to produce as well as the HRC imported for manufacturing for export was granted import duty exemption from the Malaysian Industrial Development Authority.
The spokesperson also rebutted Cheng's claims that the majority of MISIF's members were not in agreement with the federation's stand on the safeguard petition, adding that it was not true that its members had resigned over this.
“As at today, none of the MISIF members has written or indicated that he is supporting the Megasteel safeguard petition,” he said.
“We trust the wisdom of the Government to decide on the negative finding and termination of the safeguard investigation,” the spokesperson said, referring to the Government's decision to extend the investigation period to Aug 28.
source: the star
KUALA LUMPUR: The FBM KLCI continued to dip, with 5.46 points or 0.35% down to 1559.60 today following weaker investor sentiment that also affected the regional market performance.
Leading gainers and losers showed conservative trading. Top gainers were COASTAL-WA, which rose 30 sen to RM0.305, KLK gained 20 sen to RM21.70 while BRDB-WA gaining 19.5 sen to RM0.98.
Top losers were DRBHCOM which slid 33 sen to RM1.95, GENTING which lost 22sen to RM10.50 and SINDORA which dipped 21 sen to RM2.39.
On the local bourse, decliners outpaced advancers by 505 to 203 while 291 other counters were traded unchanged. There were 857.4 million shares done with a total turnover of RM1361.27 million.
Regional bourses closed weaker as well. Tokyo's Nikkei 225 fell 0.81% to 10050.01 and Hong Kong's Hang Seng Index was down 0.68% to 22293.29.
Shanghai's A index was down 2.96% to 2688.75, Taiwan's Taeix Index fell 0.93% to 8683.51 while Seoul's Kospi Index dropped 0.96% to 2150.48. Singapore's Straits Times Index slid 0.40% to 3170.09.
Nymex crude oil lost 64 cents to US$99.23 per barrel. Spot gold gained US$17.58 to US$1,618.91 per ounce while silver rose US$0.79 to US$40.87. The ringgit was quoted at 2.9729 to the US dollar and 4.2719 to the euro.
source: thestar
Saturday June 11, 2011
Mutiara Goodyear to launch projects with GDV of RM1.3bil
KUALA LUMPUR: Property developer, Mutiara Goodyear Development Bhd expects to launch several mixed development projects amounting to RM1.3bil in gross development value (GDV) this year, said its executive chairman Hamidon Abdullah.
Among the upcoming launches are Nadayu 28 Sunway, Nadayu 290 Penang and Nadayu Cyberjaya, Hamidon told reporters after the company's annual general meeting here yesterday.
“We have successfully launched Nadayu 92 in Kajang with overwhelming response. We launched 286 units of link houses, four units of bungalows and 24 units of semi-detached homes,” he said.
According to Hamidon, the Nadayu 28 Sunway project meanwhile will comprise 10 units of shoplots and 411 condominium units while Nadayu 290 will have 142 units of condominiums and seven units of villas.
The company which has vast experience in commercial and residential developments currently has a land bank of 876 acres.
Asked on the proposed change in the company name to Nadayu Properties Bhd, Hamidon said it was part of its branding strategy to establish the Nadayu brand for all its property development projects.
It would be in line with the group's objective to maintain strength and value in product quality, project execution and timely delivery while it pursues its vision of becoming an innovative property developer in the local and global market, he added. Bernama
source: thestar
KUALA LUMPUR: Government investment arm, Khazanah Nasional Bhd will divest its strategic stake of 32.21% in Pos Malaysia Bhd to DRB-Hicom Bhd at RM3.60 per share or RM622.79mil.
The transaction is deemed as a landmark divestment as it is Khazanah's first divestment of its entire stake in a major government-linked company (GLC).
The decision was made after an extensive two-stage process as well as rigorous selection to ensure that the new shareholder was able to bring Pos to the next level of growth.
Khazanah managing director, Tan Sri Azman Mokhtar said DRB-HICOM was chosen based on their overall bid, which offered not only a defined strategy but also an executable business plan and an acceptable offer price.
Stage one of the divestment process saw the resolution relating to the salary of postmen and the revision of postal tariffs.
“Their proposed strategy and business plan in turn provides an effective platform for Pos' growth, if adopted by the board of Pos as a whole,” he said in a statement yesterday.
The offer price of RM3.60 per share is subject to the modification of the special rights redeemable preference share in Pos (special share) held by Minister of Finance Inc. (MoF).
This modification inter alia includes the reservation to appoint up to two board members in Pos; and the removal of rights to appoint the chairman and managing director of Pos and fix their respective remunerations.
This condition precedent is not within Khazanah's control, as it is the sole prerogative of MoF to make any modification on the special share.
The conditional offer price is also subject to the variation in the use of 16 plots of identified lands owned by the Federal Lands Commissioner and leased to Pos. The current terms of the lease only allows for postal services use, while the variation provides for the inclusion of commercial use, over and above the mandatory postal use. In the event the variation does not happen by Dec 31, DRB-HICOM will be refunded 10 sen per share or RM17.30mil.
Khazanah adopted a robust strategic divestment process which involved an open bidding process and a merit-based and transparent selection process. Conducted in two stages the first stage involved addressing key aspects of Pos' macro business and regulatory environments, while the second stage revolved around the restricted tender process.
Stage one saw the resolution of the long-running issue relating to the salary of postmen and the revision of postal tariffs. The postal rate revision took effect in July 1, last year and subsequently, Pos also resolved a long outstanding pay revision for postmen in the same month.
Stage two started with the pre-qualification phase, where Khazanah appointed CIMB Investment Bank Bhd and McKinsey & Company as advisors for the transaction. A total of 48 parties were approached to submit their respective proposals, of which 10 parties expressed their interest to participate and were pre-qualified.
Khazanah then proceeded to the indicative bid phase where all 10 parties were invited to submit their bids. Of these, five reverted with their respective bids where they were all given detailed and equal opportunities to meet Khazanah's advisors and explain their respective strategy and business plan submission.
Of the five bidders, four parties submitted their binding bids.
An independent evaluation panel comprising five senior professionals from the public and private sector with extensive postal and corporate experience had evaluated all the bidders' proposal on the basis of anonymity, where the bidders' names were coded.
The panel, with the assistance of Khazanah's advisors, evaluated the strategy and business plans first. Based on this, the bidders were shortlisted to a final two. Subsequently, the offer price envelopes were opened and evaluated compositely. Both shortlisted bidders were given the opportunity to present to the panel. The panel's evaluation was based on a composite score between strategy and pricing, whereby strategy accounted for 60% and pricing 40%. Based on the composite score, the panel unanimously recommended DRB-HICOM.
Azman said there was a fit and proper test of the new majority shareholder which includes promoting the sustainable development of the universal service obligations (USO), as well as the commitment to retain existing staff in their business plan.
“The commitment to fulfil the social obligations under the USO (as required under the Postal Services Act, 1991) is crucial as postal services have an impact on the rakyat, especially for those residing in remote or rural areas,” he said.
Khazanah's emphasis on strategy and business plans within the evaluation process does not in itself make any assumption of control or otherwise. The process required bidders having to state, in their own opinion, whether a general offer (GO) would be necessary or not.
Khazanah's executive director of investments, who was the project director for this strategic divestment, Mohammed Rashdan Mohd Yusof said it was the buyer's prerogative, and not of the seller, to determine whether a GO was necessary, as only the buyer can ascertain the extent of control they exert over Pos after they acquired the 32% stake.
“Furthermore, the divestment process did not reveal any information to the bidders beyond readily available market information” he said.
Azman concluded: “As a responsible seller to stakeholders including minorities and the rakyat, our emphasis was to ensure that the successful bidder had a robust business plan to both deliver their USO and unlock value and for them to discuss at the Pos board.
The divestment of Khazanah stake in POS was first announced in March 2010 by Prime Minister Datuk Seri Najib Razak at Invest Malaysia 2010 conference.
Since then, many prominent names were speculated to be the buyer of the stake. It was reported that besides DRB-HICOM, Nationwide Express Courier Services Bhd and Scomi Group Bhd were among the shortlisted bidders.
source:thestar
KUALA LUMPUR: BMW Group Malaysia expects the BMW brand to exceed the projected growth rate for the premium automotive segment in Malaysia this year.
Managing director Geoffrey Briscoe said based on the 2011 first-quarter results, the company had already surpassed the sales achieved in the same period last year by over 20% with 1,305 vehicles sold to date.
“I am confident, especially with the introduction of new models, we will once again achieve a record number of vehicle this year,” he said in a statement.
Meanwhile, based on Frost & Sullivan’s projections for this year, vehicle sales are expected to continue to increase, with the premium automotive segment, in particular, likely to rise by 5%. – Bernama
Briscoe said last year was another record year in terms of growth for BMW as it saw accelerated recovery from the global economic downturn across the globe and especially in Malaysia.
Last year, it managed record numbers, with a grand total of 4,509 vehicle sales in the country, comprising 4,006 BMWs, 222 Minis and 281 Motorrads.
– Bernama
Alam Maritim Daily Chart KUALA LUMPUR: The world's first halal food index, the Socially Acceptable Market Investments (SAMI) Halal Food, is anticipated to grow even faster than the Dow Jones Islamic Index (DJII) in terms of size, branding and spin-off products.
This index is championed by Thomson Reuters Global head of Islamic Finance & OIC Countries Rushdi Siddiqui in cooperation with Ideal Ratings. It is backed by Thomson Reuters and supported by the World Halal Forum (WHF).
The SAMI Halal Food index and its sister index, the SAMI Halal Participation Index, were launched during the WHF yesterday. Rushdi had also championed the DJII in 1999.
Rushdi Siddiqui says halal is not just about certification
“Looking at how the Dow Jones Islamic Index has grown, I foresee the SAMI index to become a globally recognised index even faster than the DJII. Here, its easier to connect with the investors. Halal is not just about certification. It involves the whole production chain from farm to fork. Even with a big sell-off in markets, the investor still needs to consume. The SAMI index is a consumer non-cyclical sector,” said Rushdi.
Containing over 200 stocks from six sectors with a market capitalisation of US$114bil, 95 of these stocks are from Malaysia.
The biggest Malaysian stocks on the SAMI index are Sime Darby Bhd, Nestle (M) Bhd and Genting Plantations Bhd.
To date, the SAMI index has outperformed several leading global food indexes from March 2010 to March 2011 by 20%, according to IdealRatings.
The SAMI index has initially confined the criteria to those companies from Muslim countries and it will consider including companies from OECD countries including Britain, the United States, Canada, Brazil, France, the Netherlands and others,” said IdealRatings chief executive officer Mohamed Donia.
Rushdi expected more developments to the SAMI index including getting more companies as members and more institutions issuing products as a spin-off of the index.
He said the fact that so many stocks in the SAMI index were chosen from Malaysia put another feather in the country's cap.
“It would be good if Malaysia Inc would seed a fund off this index,” said Rushdi.
source:thestar
REVIEW: Overnight Dow scaled for a third straight day, advancing 50.03 points to 12,220.59 the previous Friday amid growing confidence in the US economic strength while the Standard & Poor's 500-shares notched its best week in two months following an upbeat outlook from Oracle Corp.
In spite of the bullish ambiance in the US, Bursa Malaysia opened the week on a mixed note, with the bellwether FBM Kuala Lumpur Composite Index (FBM KLCI) easing 1.05 points to 1,514.50 in the wake of profit-taking activity.
The underlying tone was cautious, with tensions in the Middle East and Libya, as well as lingering concerns about nuclear crisis in Japan weighing on the local market. Elsewhere, a lower crude oil prices, combined with a sluggish regional performance kept many investors at bay.
Given the limited support, shares drifted sideways to lower in lacklustre trade, ending down 1.30 points to 1,514.25 on Monday, snapping a six-day winning streak.
The bulls on Wall Street finally paused for a breather, pulling the Dow 22.71 points lower to 12,197.88 owing to an apparent profit-taking selling the following day, as corporate outlook was clouded ahead of earnings season and uncertainty continued to creep from the Middle East and Japan.
Meanwhile, the black commodity sustained the downward spiral, slumping a huge US$1.42 to US$103.98 per barrel amid easing worries about supply, as Libyan rebels doubled efforts to resume oil exports after regaining key territory.
Against the negative backdrop, many investors had expected Bursa to falter on extended correction, but in a surprising move, a steadier Asian equities due to first-quarter “window dressing” buying and the expectations of a better second quarter, saved the FBM KLCI.
Despite this, trading was cautious and mirroring the offshore mood, the local market treaded within a range in the plus side throughout before ending up 5.84 points to 1,520.09 on Tuesday.
Market sentiment, especially in the Asia-Pacific region, turned better, as the resumption of a rally in overnight Wall Street somewhat encouraged investors to concentrate on adding to their winning positions as the quarter winds down, and energy shares climbed, as crude oil prices rebounded on optimism of a quick return of Libya's oil exporting capabilities.
Riding on the overseas strength, blue chips, together with the second and lower liners on the home front sustained the upward thrust, driving the FBM KLCI up 11.54 points to 1,531.63 in mid-week.
It added another 13.50 points to 1,545.13 on Thursday and an extra 10.25 points to 1,555.38 yesterday, lifted mainly by the heavyweights amid follow-through foreign nibbling, spurred by an encouraging US economic data.
Statistics: On a weekly basis, the major index chalked up 39.83 points, or 2.6% to 1,555.38 yesterday, against 1,515.55 at the close on March 25. Weekly turnover rose to 8.846 billion units valued at RM10.996bil, versus 6.126 billion shares worth RM8.214bil done a week ago.
Technical indicators: The oscillator per cent K and the oscillator per cent D of the daily slow-stochastic momentum index retained their position at the bullish extended-mode zones.
Elsewhere, the 14-day relative strength index picked up steam, firming steadily from a reading of 64 to settle at the 84 points yesterday. In addition, the daily moving average convergence/divergence (MACD) histogram continued to expand positively against the daily signal line to retain the bullish note. It triggered a buy on March 21.
Weekly indicators were seen improving, with the weekly slow-stochastic momentum index keeping the buy and the downward momentum of the weekly MACD halting.
Outlook: Bursa crept higher to the best level in almost 2-month amid continuous bargain hunting interest, giving the FBM KLCI gains for the third consecutive week.
The improvement was largely attributed to the recent macro economic data in the US suggesting the global economy was still on the recovery track, supported further by the upcoming Sarawak state election and the backdrop of the two major geopolitical developments in Japan and Middle East not changing much on a day-to-day basis.
In spite of the recent gains, Bursa remains fragile and sensitive to breaking news flow, especially from Japan and the Middle East.
Based on the daily bar chart, Bursa is expected to strengthen but on a gradual pace, with the bulls eying a re-test of the historical peak of 1,576.95 following the recent bullish breakout, of which a successful penetration would send them to unknown territory.
Apparently, a couple of short-term indicators are sending out overbought signal, implying the FBM KLCI may consolidate, but investors can consider accumulating, as the market would re-visit the all-time high eventually.
Support floors are seen resting at 1,530 points, followed by the 1,500 points psychological level and the 1,474 points.
But quantum of demand hard to determine
PETALING JAYA: Timber companies will benefit from the surge in demand from Japan as post-construction activities in the country take place following the devastating earthquake and tsunami that occurred there.
However, the quantum of demand from the surge for timber products is hard to quantify at the moment.
Malaysia is already the largest exporter of timber to Japan and imported timber products like plywood easily make up more than half of timber consumption in the country, according to analysts.
In a timber sector update yesterday, RHB Research said Malaysian companies were likely to benefit; specifically WTK Holdings Bhd and Ta Ann Holdings Bhd given their focus on the Japan market which constituted 80% to 90% of their timber product sales.
WTK and Ta Ann stocks yesterday ended the day's trading at RM1.33 and RM4.84 respectively, up 7 sen and 8 sen each. Earlier in the day, WTK had reached RM1.37 while WTK was up to RM4.96.
“The disaster in Japan has pushed the timber sector into the spotlight and put it on the radar of investors,” RHB said.
This could lead to a potential re-rating of the sector, the research house which has an overweight stance on the sector said yesterday.
Although it is still too preliminary to assess the impact of Japan's earthquake and tsunami on the timber sector, as an estimate, RHB said that for every US$10 per cu m increase in its timber product selling price assumptions, the earnings forecast for companies under its coverage would increase by 5% to 12%.
Meanwhile, AmResearch, in its update on the sector, said after contacting local timber players, they indicated that they did not expect a sudden and significant jump in timber exports towards the reconstruction process.
One timber player ruled out a “30%-40% jump in exports” to Japan, AmResearch wrote, but said the company expected a probable steady rise in demand from Japan to help in the reconstruction process.
The research house, quoting reports, said Japan imported nearly 1.15 million cu m of panel products worth RM1.7bil, representing almost half of Sarawak's total exports of 2.5 million cu m (RM3.43bil) for the 11 months until November last year.
That translated to an average selling price of RM442 per cu m.
In its report on the impact of Japan's earthquake, Credit Suisse said yesterday investors might benefit from selecting sectors such as construction materials where reconstruction demand can be expected over the near term.
In its note to clients on the impact of Japan's calamities, OSK Research said the timber and steel sectors could be winners.
Timber in particular could see heightened demand given that many Japanese houses are constructed with the use of significant hardwood timber and Malaysia is still the world's largest exporter of hardwood timber, according to OSK.
Analysts said risks to the demand would be price discounting from neighbouring countries with lower costs of production which would then result in lower exports from Malaysia.
source: thestar
PETALING JAYA: A severe earthquake and tsunami that hit Japan late yesterday afternoon was the latest shock to send tremors throughout global equity markets, a day after many of them reeled from a sell off on Thursday.
Asian markets, which were lower throughout the day on concerns of political unrest in the Middle East, reacted to Japan’s 8.9 magnitude earthquake in the last hours of trading, accelerating losses.
Meanwhile, equity markets in Europe opened in the red, as the world now waits to assess the damage Japan’s earthquake would have on the global economy and markets.
Global equity markets will remain volatile next week, as the latest incident adds to a series of incidents that will continue to spook investors, which included the political unrest in the Middle East and the resurfacing of euro-zone fiscal woes.
As at press time, a tsunami alert had been issued for New Zealand, the Philippines, Indonesia, Papua New Guinea and Hawaii.
Japan’s Nikkei 225 index closed lower by 1.72% yesterday, hitting a five-week low. Macquarie Group Ltd said in a research report issued yesterday that “inevitably there will be microeconomic disruptions” although the impact would be lower than that of the last major earthquake, Kobe, that hit Japan in 1995. Japanese stocks fell 8% in the week after that quake.
“Despite the scale of the disaster (yesterday), it is hard to find much evidence in the macroeconomic data of the effects of the Kobe earthquake. Industrial production dipped 2.6% month-on-month in January 1995 and then bounced 2.2% in February and a further 1% in March. Gross domestic product growth was 3.4% quarter-on-quarter annualised in first quarter of 1995,” the report said.
Macquarie added that the Japanese currency did not move significantly at the time, although it rose in subsequent months to a peak of just past ¥80 per US dollar in mid-April, but this did not seem to be related to the Kobe earthquake (there was significant trade tension with the US at the time).
“Significant yen repatriation that could push the currency higher and, at an extreme, disrupt global markets, looks unlikely,” it said.
The yen appreciated against all 16 of its most actively traded peers yesterday, with it trading at ¥82.23 per US dollar against its previous close of ¥82.98.
Other regional bourses also extended losses yesterday, with the South Korea’s Kopsi losing 1.31% to 1,955.54 points, Singapore’s STI down 1.04% to 3,043.49 points and Hong Kong’s Hang Seng Index shedding 1.55% to 23,249.78.
US stocks were also expected to extend their losses as US stock-index futures fell.
Crude oil futures for April traded on the New York Mercantile Exchange saw its prices fall below US$100 per barrel for the first time since early this month as the earthquake forced refiners to shutdown processing plants in Japan.
Meanwhile, the benchmark FTSE Bursa Malaysia KLCI fell 1.40% yesterday, its largest single day fall in over two weeks, driven by heavy selling in selected banking, plantation and telecommunication stocks.
The local benchmark index lost 21.29 points to end at 1,495.62 points yesterday, with losers crushing gainers at 678 to 118 and some 207 stocks remaining unchanged. Turnover was 1.02 billion shares done valued at RM1.85bil. The index hit an intraday low of 1,494.13 points.
Analysts said the sentiment on the local and regional bourses were reflective of the sell down in US equities on Thursday.
Among the banking stocks that were heavily traded yesterday include CIMB Group Holdings Bhd, which shed 6 sen to RM7.98, Malayan Banking Bhd lost 9 sen to RM8.71 and AMMB Holdings Bhd fell 10 sen to RM6.36.
IOI Corp Bhd, Sime Darby Bhd, Axiata Group Bhd, Maxis Bhd and Telekom Malaysia Bhd saw large volumes change hands yesterday. Petronas Chemicals Group Bhd, which fell 16 sen to RM6.56 with 27.2 million stocks traded, also dragged down the index.
source: thestar
KUALA LUMPUR: The Employees Provident Fund (EPF) has declared a dividend of 5.8 percent for 2010, up from 5.65 percent declared the year before, buoyed primarily by good performance in the equities market.
“The remarkable investment income achieved in 2010 was especially driven by the performance of equity investments,” said EPF Chairman Tan Sri Samsudin Osman in a statement on Sunday.
“The improved financial and economic conditions provided the market with sufficient liquidity, allowing profit taking activities throughout the year.
“The dividend amount paid out is derived after deducting net impairment allowance on financial assets, investment expenses, operating expenditures and statutory charges as well as dividend on withdrawals,” he said.
EPF will be paying out a total of RM21.61bil to members, an increase from the 2009 dividend payout of RM19.37bil.
The dividend rate of 5.8 percent underscores an impressive year in which gross investment income reached a historical high of RM24.06bil, reflecting a 39.76 percent increase over the RM17.22bil gross investment income recorded in 2009, the statement said.
For the year under review, a total of RM10.94bil was earned from equities, a significant increase from RM4.85bil earned in 2009.
Loans and bonds were the second largest investment income contributor in 2010, recording RM7.02bil in gross investment income, compared to RM6.63bil posted the previous year.
Malaysian Government Securities was the third largest income earner for the year contributing RM5.30bil compared to RM5.22bil in 2009.
The year 2010 saw about two-thirds of EPF’s total investment assets remaining in low-risk fixed income instruments with stable streams of income.
“As a retirement fund, our primary objective is the preservation of capital while at the same time adding value to members’ retirement savings. In pursuit of this objective, we will continue to adopt a prudent investment approach,” Samsudin said.
Members can check their EPF Account Statement for the crediting of the 2010 dividend, either via EPF Kiosks, counters or i-Akaun, from Monday, 21 February 2011.
source: thestar
KUALA LUMPUR: Masterskill Education Group Bhd group chief executive officer Datuk Seri Edmund Santhara is considering to up his stake in the group.
In a filing with Bursa Malaysia on Wednesday, the education-based Masterskill said Edmund, who owns some 90.6 million shares, or 22.1% stake in the company had announced his intention to deal in his securities in Masterskill.
“(I'm) looking at purchasing at this price,” Edmund said when contacted by StarBiz yesterday.
Datuk Seri Edmund Santhara ... ‘Well, I need to wait and see.’
However, he said he could only buy the shares today as per Bursa Malaysia rules.
“Well, I need to wait and see. Perhaps, anything below RM2 doesn't justify keeping the company listed,” Edmund said when asked on the amount of shares he intended to purchase.
Last December, he told StarBiz that the share price then of RM2.22 was not “justifiable” for a firm that made about RM100mil in net profit annually.
He said that the company was fundamentally sound and that its Kuching campus was already in operation.
“The current share price weakness presents a great buying opportunity for Edmund to accumulate its shares,” an analyst said, adding that Edmund's move to purchase more shares may be a practical thing to do.
The analyst said most companies undertake share buybacks if they believe their shares are undervalued, or to send a signal of confidence in the company.
Masterskill, which raised RM771.3mil from its initial public offer (IPO) in May 2010, has succumbed to selling pressure yesterday.
The counter fell to a record low since its listing after Fidelity Management and Research (FMR) LLC, the parent of Fidelity Investment, sold 280,000 shares in the former.
The counter fell 8 sen, or 4.32%, to RM1.77, its lowest since its listing on May 18, 2010.
However, Edmund remains unperturbed by the divestment by FMR.
“It's a simple portfolio investment, so it's normal. The company fundamentals remain strong,” he said.
Edmund was confident its share price would stabilise soon. “As the company is good, the price will soon stabilise after the seller is gone, mainly Fidelity Investments,” he said.
FMR, one of Masterskill's substantial shareholders, has been trimming its stake in the education group since October. Following the disposal of 280,000 shares, FMR held a direct stake of 20.6 million shares, or 5.02% in Masterskill.
Dealers attributed the price slide the stock has fallen some 30 sen from its one-month high of RM2.34 on Jan 13 mainly to the recent selling pressure. However, they believed the selling might not be done as yet.
As at Sept 30, the nursing and allied health sciences education provider has 17,613 students. It posted a net profit of RM26.2mil for the third quarter ended Sept 30 on revenue of RM80.7mil.
The education group is due to announce its fourth quarter ending Dec 31, 2010 financial performance tentatively next Wednesday. Bloomberg's consensus estimates expect Masterskill to post RM104.6mil in net profit for the full financial year ended Dec 31, 2010.
source: thestar
Guan Chong Strong Uptrend Chart
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