Attention To MBF Corp Shareholders (1228)

There is an opportunity to those MBF Corp shareholder who still having it (CAUGHT) but cannot trade it thru Bursa Malaysia (been DELISTED) and have an intention to dispose it. A group of minority shareholders/representatives is negotiating with interested buyers... They had advertise this in local newspaper such as ChinaPress and SinChew Daily on 18th October 2007 and The Star on 20th October 2007 respectively, with contents as following:-

MBF CORP SHAREHOLDERS

MBF Corp Berhad, Trading Code 1228, Delisted from Bursa since 6th August 2007.

We, are group of minority shareholders/representative, intend to sell our stakes of MBF CORP, we are negotiating with interested buyers, our initial conditional offer price is between the price range of RM0.15 - RM0.25 (Willing Buyer Willing Seller Basis).
We invite all interested shareholders to contact us and join us in obtaining our righteous benefits, Please contact :- Leslie Lim 012-3118048
Mason Lim 012-2348632
Mr Hoo 012-6718362....

Hap Seng Plantations Holding Bhd - New Listing

Hap Seng Plantations Holdings Bhd, en route to a main board listing, aims to increase its land bank by 50% in “the next couple of years”, said managing director Edward Lee.
“In line with this, the company is in talks with a few parties to purchase plantation land in Sabah and Sarawak,” Lee said at the company's prospectus launch yesterday.
The company's plantation land bank at present is predominantly in Sabah.
Hap Seng Plantations, via wholly-owned subsidiaries Jeroco Plantations Sdn Bhd and Hap Seng Plantations (River Estates) Sdn Bhd, has a total of 37,630ha plantation land in Sabah.
It would look towards a 100% increase in land band after achieving 50% growth, Lee said, adding that he did not rule out the possibility of buying land in Indonesia.
Hap Seng Plantations is the listing vehicle for the plantation assets of main board-listed Hap Seng Consolidated Bhd as part of a restructuring exercise.
Lee said the new company's core competency was its efficiency due to its plantation land, consisting of one contiguous block, “which enhances management, cost efficiency and operational effectiveness.”
Of its total land bank, 32,695ha are planted with oil palm.
“When it comes to managing our plantation assets, what matters to us most is efficiency,” Lee said.
For the financial year ended Jan 31, 2007 (FY07) Hap Seng Plantations' crude palm oil yield was 5.55 tonnes per ha compared with the Malaysian average of 3.93 tonnes per ha for calendar year 2006.
The company hoped to increase this yield to six tonnes per ha in two to three years to be comparable with the highest in the industry, Lee said.
In terms of fresh fruit bunches, Hap Seng Plantations was able to produce yield per mature area of 25.37 tonnes for FY07, which was one of the highest in the country, he added.
The initial public offering (IPO) consists of 300 million shares, comprising an offer for sale of up to 250 million shares by Hap Seng Consolidated and a public issue of 50 million new shares in Hap Seng Plantations.
The IPO price is RM2.65 per share.
The public issue is expected to raise gross proceeds of RM132.5mil, of which RM123.5mil would be used for part repayment of bank borrowings.
This is expected to reduce gearing ratio to 0.1 time from 0.19 time.
Hap Seng Plantations aims for a listing by mid-November

Do They????

US, Europe funds upbeat on M’sia

Fund managers in the US and Europe are more upbeat about Malaysia than a year ago but there was genuine surprise that earnings growth of KLCI stocks in 2007 has been so strong, said CIMB Research.
The research house said it was upbeat that 2008 was likely to be another strong year and this provided the most important fundamental support for the bullish undertone for 2008.
“We maintain our Overweight stance on Malaysia with Kuala Lumpur Composite Index (KLCI) targets of 1,440 for end-07 and 1,700 for end-08,” said CIMB Research, which had just completed a two-week roadshow in Europe and the US and meeting more than 40 fund management firms.
CIMB Research said although Malaysia’s recent underperformance drew some negative comments, investors in general were positive about the country’s prospects and were looking for good stock ideas with great fundamentals.
It said European and US investors remained keen to hear about Malaysia and were seeking good stocks to buy and companies with strong fundamentals, good management, attractive valuations and robust earnings growth.
On its meeting with 22 investors in Europe including those in London, Amsterdam and Edinburgh, it said they were roughly overweight, neutral and underweight in equal numbers.
However, they were significantly more bullish than last year but they were disappointed with Malaysia’s performance in the last six months after its sterling performance at end-2006 and early 2007.
CIMB Research said the fund managers’ biggest source of discontent was Tenaga Nasional Bhd’s poor share price performance and gas price worries.
Overall, investors did not appear overly concerned about the US subprime issue and none raised any questions whether Malaysian companies had any exposure.
CIMB Research said among the key stocks it recommended were Malaysian Resources Corporation Bhd (MRCB) due to election rally, Gamuda Bhd (Ninth Malaysia Plan and pump priming), SP Setia Bhd (property boom), Tenaga Nasional Bhd (government-linked companies revamp) and LCL Corp Bhd (small cap pick).
European investors appeared to be most enthusiastic about MRCB, Gamuda and LCL Corp, it said.
Although many European funds are buy-and-hold and longer-term investors, there are several hedge funds looking for trading ideas.
The research house said it had recommended MK Land Holdings Bhd (Trading Buy) since the proposed private placement has to be undertaken at no less than the RM1 par value and at that time, the stock was trading at only 80 sen to 85 sen. It also introduced Silver Bird Group Bhd (Trading Buy) as a possible takeover target.
“Several funds were looking for very long-term investments in physical assets or REITs (real estate investment trusts),” it said.
CIMB Research said during its roadshow in the US, fund managers familiar with Malaysia were mostly neutral to overweight on the market while newer funds and those less familiar with Malaysia had zero exposure but appeared keen to add positions.
However, some US investors were frustrated at Malaysia’s underperformance relative to the region. It said there was some unease over Malaysia’s underperformance in recent months and that it had yet to set new highs after the July-August global market rout.
“Several investors very familiar with Malaysia voiced their unhappiness with the country’s pace of political development and GLC revamp,” it said.
There were also hedge funds with very aggressive trading strategies looking for short-term trades and stocks which attracted interest were Gamuda, Hunza Properties Bhd and LCL Corp.
“Somewhat to our surprise, many US investors had visited Malaysia in the past year and those who were unfamiliar with the country were interested to visit, especially the Iskandar Development Region,” it said.
On Malaysia’s economic outlook, the research house said the fund managers were positive about the domestic economy.
CIMB Research had recently raised its 2007 GDP growth estimate from 5.6% to 5.8% and expected continued robust growth of 6.3% in 2008.
Growth catalysts would be strong domestic demand, higher government spending under the 9MP and a gradual recovery of exports in 2008.
However, there was concern among some fund managers over the impact of exports’ slowdown on GDP growth. CIMB Research said continued strong domestic demand, which made up 86.3% of total GDP, should mitigate the impact of lower exports on overall GDP growth.
“With private consumption accounting for 50.5% of GDP and total fixed capital formation making up another 23.2% of GDP, these two main components of total aggregate domestic demand should help to compensate for the slower growth in exports,” it said.
The research house said for every one percentage point decline in US GDP growth, it could cut Malaysia’s export growth by 0.8 percentage point, potentially shaving one percentage point off Malaysia’s GDP growth. Malaysia’s total exports make up 122% of total GDP.
“But the net impact is lower after adjusting for imports. Given our belief that domestic demand should remain strong and offset the slower external demand, the real impact on domestic growth should remain manageable,” it said.

source EdgeDaily

INSIDER ACTIVITIES LATELY

Notable filings

Among the more active counters on Bursa Malaysia for the week of Oct 1 to Oct 5 was LKT Industrial Bhd, whose mainstay is designing and assembling automation equipment. Singaporean juggernaut Temasek Holdings (Private) Ltd, via its unit Accuron Technologies Ltd, acquired some 3.9 million shares or some 5.7% equity in LKT Industrial on the open market, nudging its shareholding up to 39.5%.

Mesdaq Market-listed REDtone International Bhd meanwhile saw its substantial shareholders collectively hive off 22.8 million shares. The sellers include the Kuok group, orginial shareholder Lee Eng Sia and current CEO Wei Chuan Beng. Warisan Jutamas Sdn Bhd emerged as a shareholder with some 25.2 million shares or almost 10% equity in the company. Warisan Jutamas, news reports state, is a vehicle of Mohamed Shah Kadir and Abdul Karim Kadir. REDtone has been having problems issuing its latest financial results due to difficulties in tabulating its accounts in Pakistan.

Construction outfit PECD Bhd's CEO Rosman Abdullah sold off some 10 million shares in the company on the open market, ceasing to be a substantial shareholder. Since late August this year, PECD's stock has shed some 25% of its value.

Silver Bird Group Bhd continued to hog the limelight in the week. For the week in review, Berjaya Group Bhd acquired 18. 7 million shares in the bread maker, pushing its stake up to 14.1%. Pilgrim fund Lembaga Tabung Haji bought an additional 2.1 million shares in Silver Bird, bringing its equity to 23.7%.

UK-based Utilico Emerging Markets Ltd emerged as a substantial shareholder in MY E.G. Services Bhd, buying 6.3 million shares or 5% equity in the company from Edisi Firma Sdn Bhd. Utilico also owns 7.22% of water treatment and supply concession company Puncak Niaga Holdings and 5.07% of Pos Malaysia & Services Holdings Bhd.

Phoenix Spectrum Sdn Bhd, a unit of gaming company Genting Bhd, increased its stake in Landmarks Bhd to 28% after acquiring close to five million shares on the open market. Phoenix Spectrum paid between RM2.77 and RM2.89 for the shares in Landmarks. The property and hotel operator's shares traded between RM2.90 and RM3 over the week.

US-based Mercury Real Estate Advisors LLC acquired some 5.2 million shares in property player Mulpha International Bhd, increasing its shareholding to 68.6 million shares or about 5.5%.

Evermaster Group Bhd also saw some changes in shareholding. Mohammad Hairul Ibiniameen emerged as a substantial shareholder in Evermaster after he acquired almost 3.6 million shares or about 5% in the company.

Over the week, Magnecomp Precision Technology Public Co Ltd emerged as a 10.5% stakeholder in Mesdaq-listed MQ Technology Bhd. The 24.2 million shares in MQ Technology came under Magnecomp Precision Technology's control via the disposal of assets to MQ Technology.
Notable movements

Green Packet Bhd's shares seem to be cooling off after a long spell as a favourite among market watchers and punters. Year to date, the company's shares have shed close to 30% of their value. Despite the current trends, Green Packet has been continuously looking at broadening its horizons, and launched an intelligent software platform, SONbuddy Connect, which enables online and offline peer-to-peer application, via its integrated communications and connectivity framework. For its six months ended June this year, Green Packet posted a net profit of RM23.3 million on the back of RM67 million in sales.

Since its requotation on Bursa Malaysia, Boustead Heavy Industries Corp Bhd (BHIC) has created quite a stir. On its maiden trading day, the company's stock surged to a high of RM3.04 from its reference price of RM1. Since then, interest has been gaining steadily and the share price recently breached the RM5 barrier. BHIC, formerly known as PSC Industries Bhd, underwent a restructuring, and emerged with a healthier balance sheet thanks to a rights issue, which provided RM70 million in working capital. The company has said it may pay out as much as half of its earnings as dividends. BHIC is 65% controlled by Boustead Holdings Bhd, which is the publicly traded arm of the armed forces fund, Lembaga Tabung Angkatan Tentera.

source edgedaily

KLCI set to stage breakout rally

BLUE chips on Bursa Malaysia surged for a third straight week, boosted by a bullish breakout in the US Dow Jones Industrial Average to a new high, which spilled over to lift Asian markets to record levels, and shored up the benchmark Kuala Lumpur Composite Index (KLCI) as well. For the week, the KLCI rose 36.09 points, or 2.7 per cent, to close at 1,372.39, with average daily trading volume ballooning to 1.55 billion shares from 1.1 billion shares in the previous week.
The index gain last week was driven mainly by Bumiputra-Commerce, Maybank, MAS, Tenaga, Astro, Genting and the three plantation heavyweights, Golden Hope Plantations, Guthrie and Sime Darby which are involved in the Synergy Drive deal.
The release of US employment data for September brought cheers to the US market last Friday as the S&P 500 index hit an all-time high. Employment accelerated to 110,000 in the month after an increase of 89,000 in August, which was revised upward from -4,000 previously. The slightly better than expected September payroll numbers eased worries of a recession in the US. The employment numbers strengthen my view two weeks ago that contrary to market expectations, the Fed will maintain its key hurdle rate at 4.75 per cent until December.
The KLCI is expected to react positively to the US markets' performance last Friday when it reopens today and it could even see new highs this week if the buying momentum is sustainable. The strong volume of 2.1 billion shares last week after a long gestation period of nine weeks indicates the return of interest in the market but the momentum could wane out as we approach the tail end of the week ahead of the Hari Raya holidays.
The higher US employment numbers may also have a positive impact on the local market as the subsequent growth in consumption spending could lead to better demand for our exports which grew at a paltry rate of 0.3 per cent in the month of August. The main culprit for the subdued performance was the lower demand for computers and parts, particularly from the US, and falling global prices of semiconductors, which led to a fall in the export earnings of electronic products by 4.8 per cent year-on-year.
Also expect the second and lower liners to catch up with the bigger boys this week due to the apparent widening in price-to-earnings gap. We witnessed the interest in blue chips in the last three weeks that was not mirrored on the broader market. The return of foreign interest, judging from the ringgit strengthening and the RM4.1 billion increase in end-September foreign reserves, and selective nibbling of local funds could have contributed to that.
Investors are advised to go long on the market and view any weakening in price as an opportunity to buy-on-dip for a year-end rally. Based on the KLCI's month-on-month gain in the last 30 years, three best months for the index were October, January and February, with the latter being the best period. There is still ample liquidity in the system to drive a rally in the next two quarters as the excess liquidity mopped up by Bank Negara Malaysia remains substantial at RM224.8 billion as of end-September.
Technical outlook
The KLCI began trading last week on a bullish note, rising from the opening low of 1,337.65 to close with a double-digit gain on Monday, shored up by renewed buying interest in blue chips. A gap-up registered the next day, fuelled by resurgent buying momentum due to spillover bullish sentiment from an overnight rally on the US Dow Jones average to a new all-time high. The blue-chip index surged to close more than 20 points up at just below the 1,370 immediate chart resistance on Tuesday.
A further rally mid-week was checked at the intra-week high of 1,380.29 in late morning trade on Wednesday, which was the highest level seen since July 26, before profit-taking dragged down the benchmark for a negative close. Follow-through profit-taking and selling softened the index to slightly cover the 1,353 to 1,359 gap-up on the next day, before buyers returned to lift it significantly off lows. The market then staged a profit-taking consolidation Friday as traders squared off most positions ahead of the weekend.
Lower liners rose in concert, with buying interest still focused on the construction, plantation, property and oil & gas sectors. The Second Board Index added 1.6 points, or 1.5 per cent, week-on-week to close at 107.39, while the Mesdaq Composite Index advanced 1.89 points, or 1.5 per cent to end at 124.81 last Friday.
On the technical indicators, the daily slow stochastics indicator for KLCI has eased lower from an extreme overbought reading, but the weekly indicator extended higher to sustain the bullish medium-term reading. The 14-day Relative Strength Index (RSI) is now in the overbought zone with a reading above 70 last Friday, while the 14-week RSI has a reading just above 60. The daily Moving Average Convergence Divergence (MACD) trend indicator continued its upward expansion, while the weekly MACD trigger line hooked up further, closing in for an impending buy signal on further strength.
Conclusion
As expected, the KLCI extended its rally towards the rising 38.2 per cent Fibonacci Fan Line (FFL) from the March 5 low, helped by breakout rallies on the US Dow Jones average and more Asian stock markets hitting record highs. The much stronger buying momentum, which peaked last Friday with trading volume crossing above the two billion shares mark, was the catalyst that sustained bullish momentum last week.
For this week, strong buying momentum should follow-through to re-challenge the revised higher immediate resistance of 1,380 (IR), which was last week's high, before meeting more formidable resistance from the 1,392 (R1) record high on July 24. The strong US jobs data last Friday should fuel further upside momentum on Asian markets and hence spill over to eventually trigger a breakout rally on the local market. On the flip side, immediate support is adjusted higher to 1,350 (IS), with stronger up-trend support coming from the 38.2 per cent FFL, which is rising towards 1,350 by month-end.

source : Business Times

KLCI futures likely to see mixed trading

THE October Kuala Lumpur Composite Index futures contract on Bursa Malaysia Derivatives closed at 1,372 last Friday with an open interest and average volume of 32,146 and 7,566 contracts respectively.
The October contract rallied to the high of 1,389 last Thursday after a stronger than expected performance. The cracking of the 1,350 resistance level opened the floodgates which unleashed a strong bullish momentum, pushing the spot closer to the 1,400 level. By the end of the week, with the recovery intact the momentum indicators such as the Relative Strength Index (RSI) and the Commodity Channel Index (CCI) have both penetrated the overbought territory signalling the strong uptrend last week.

On a week-to-week basis, the KLCI futures spot contract closed at par to the underlying index, reflecting the absence of domineering "shortists" in the market.

What lies ahead for the futures contract now that it is trapped between its historical high and its support at 1,350?

Clearly a new set of resistance lines have to be established. Besides the psychological 1,400 resistance point, the October contract will likely find new challenges as its momentum indicators suggest that there is still potential for the uptrend to continue.

There is likely to be an absence of downside pressure on the local stock market as it is still driven by technical expectation that the index will retest the 1,400 psychological barrier.

On the technical front, the Moving Average Convergence Divergence (MACD) indicator on the futures is still showing favourable development since its positive crossover seven weeks ago. This is likely to sustain the positive primary and secondary trend on the market despite some toppish signs found on the technical oscillators.

As for this week, trading is likely to be a mix of corrections and rebounds as not all of the daily oscillators are coherent. Consolidation pressure is likely to persist as momentum is still improving albeit at a milder pace.

Tactically for this week, a weak positive extension is likely to take place. Judging from the fact that there are more affirmative indicators than negative ones, it would not be surprising for buying interest to emerge should the market weaken.


Technical reports

The MACD is positive with the faster above the signal line. Both lines remain at the positive region.

The daily RSI closed at the neutral territory.

The daily CCI finished at the neutral level.

Resistance levels are at 1,392, 1,413 and 1,459. Support levels are at 1,347, 1,322 and 1,277.

source : Bernard (Business Times)
The subject expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.

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