Friday, April 28th, 2017

 

US stocks flat as North Korea fears weigh on sentiment

NEW YORK, April 28 — Wall Street stocks were little changed early today as nervousness over North Korea and a weak US growth report offset strong earnings reports from Amazon, ExxonMobil and others. About 10 minutes into trading, the Dow Jones…


ExxonMobil profits more than double on higher oil prices

NEW YORK, April 28 — ExxonMobil reported today that first-quarter earnings more than doubled as increased oil prices translated into higher profits after a lengthy slump. Net income for the quarter ending March 31 surged to US$4.0 billion…


Ringgit to trade firmer against US dollar next week on buying support

KUALA LUMPUR: The ringgit is likely to trade firmer on improved buying support against the US dollar next week, moreso, if the greenback loses steam over US President Donald Trump's policies.

Oanda Senior Trader Stephen Innes said the positioning of investors for the ringgit is light amid the oil market's balancing act of striving to remain at front and centre.

He said the risk of weaker oil prices remains during the course of the year due to constant supply from shale oil producers.

“Next week could also offer some challenges with the US Federal Open Market Committee meeting. With so much priced out of US Federal Reserve (Fed) policy this year, the only real surprise in my view would be a more hawkish lean from it than what the market expects.

“But, with the likelihood of only two US rate increases this year, I do not think this will pose too much of concern to local sentiment and in particular, the Malaysian capital market, which is arguably undervalued compared to its Asean counterparts,” said Innes.

For the week just-ended, the ringgit traded higher and moved between 4.3690 and 4.3390 against the US dollar.

On a Friday-to-Friday basis, the ringgit was also traded higher at 4.3390/3430 against the greenback from 4.3980/4000 last week. It ended mostly higher against other major currencies.

The local note improved against the Singapore dollar at 3.1088/1121 from 3.1466/1485 last week and advanced against the yen to 3.8911/8958 from 4.0286/0315.

It rose against the British pound to 5.6129/6198 from 5.6259/6298 last Friday, but declined against the euro at 4.7456/7508 from 4.7076/7111. — Bernama


Cabnet to raise RM11.76m through IPO

PETALING JAYA: Cabnet Holdings Bhd aims to raise RM11.76 million from its initial public offering (IPO) in conjunction with its listing on the ACE Market of Bursa Malaysia on May 22.

The company's independent non-executive chairman Datuk Tan Kok Hong said with the IPO, the company is aiming to increase its market presence in Johor while pursuing more opportunities for more projects beyond the state.

Of the total proceeds, 44.7% or RM5.26 million will be used for working capital and the purchase of equipment components and parts for projects in its extra-low voltage (ELV) systems, structured cabling and IT services divisions.

The company will be allotting 25.5% to foot its listing expenses while another 25.5% equivalent to RM3 million will be used to repay bank borrowings of the group, which stands at RM6.29 million. About 4.3% or RM500,000 will be used for research and development (R&D).

“The R&D we are embarking on is more on the Cabnet Integrated Security Solution (CISS) which is an integrated software. What we see today is that in the market, there is a lot of request from customers to have a better secured facility. We know that this market is a growing trend,” COO Yong Thiam Yuen told reporters at a briefing today.

“From the customers' perspective, they want more flexibility in having different types of closed circuit television (CCTV) system, access control system, different brands and today there are certain limitations. So, we see this as an opportunity for us to offer this value proposition to our customers,” he added.

The company said it will be looking for new contracts while also maintaining existing contracts.

“For contracts we have already completed, that’s when we enter into the after sales service for a maintenance contract period. Maintenance bring us sustainability. Existing key customers bring us sustainability as well,” Yong said, adding that the IPO will strengthen the company’s recognition and stature in the market.

The Johor-based group, which is mainly involved in building management solutions provision, is offering 21 million new ordinary shares at an issue price of 56 sen, representing 16.15% stake.

Cabnet will be offering seven million shares to the Malaysian public, 10 million for identified investors through private placement and the remaining four million is allotted for eligible directors, key management personnel and employees as well as those who have contributed to the group's success.

Post-IPO, both majority shareholders namely Tay Hong Sing, who serves as Cabnet's CEO and his deputy Tan Boon Siang, will have their stakes diluted to 25.08% each. Tay and Tan currently hold 29.91% stake each in Cabnet.

Net Posa China's subsidiary Net Posa Hong Kong Ltd, which has a pre-IPO stake of 23.85%, will have its stake diluted to 20%. NetPosa is also Cabnet’s strategic partner in providing video monitoring solutions.

The company has an orderbook of RM33.7 million, which will keep them busy from 2017 till 2019. TA Securities Holdings Bhd is the principal adviser, sponsor, underwriter and placement agent for the listing activity.


4 hot stocks on AmInvest analyst radar

Analyst are observing Paramount Corp Bhd, TSR Capital Bhd, HSS Engineers Bhd (HSSE) and Chemical Company of Malaysia Bhd (CCM) – the four stocks on radar. AmInvestment Bank (AmInvest) Research said the share price on the uptrend for Paramount Corp, that has a Buy call, inching above the RM1.78 level however the stock may consolidate further if it cannot sustain above the RM1.78 level in the near term. TSR Capital, that also has a Buy call, may trend higher after jumping above the 74 sen level in its latest sessionRead More


Khazanah announces changes to its senior leadership team

PETALING JAYA: Khazanah Nasional Bhd has announced several new appointments and changes to its senior leadership team as part of its periodic refresh and strengthening of the team.

The changes include two promotions namely Nik Rizal Kamil and Serena Tan Mei Shwen, both of whom have been promoted from director of investments to executive director of investments since April 1, 2017.

Roni Lihawa Abdul Wahab will rejoin Khazanah as executive director on May 1, 2017. He is currently the managing director and head of global banking at HSBC Bank Malaysia Bhd.

Executive director of finance and CFO Datuk Mohd Izani Ghani will be appointed as executive director of investments effective June 1, 2017. His responsibilities will include overseeing the operations of Khazanah Turkey regional office.

Director of finance Faridah Bakar Ali will be appointed as CFO effective June 1, 2017 while Suhana Dewi Selamat was appointed director in the managing director's office and chief risk officer since Feb 1, 2017.

Suhana assumed the role from Ati Othman, who left Khazanah on Jan 31, 2017, after serving for eight years.

Meanwhile, executive director of investments and head of investments Datuk Dominic Silva will be leaving Khazanah on July 31, 2017 after serving Khazanah for nine years. He will continue to represent Khazanah as a nominee non-executive director on the board of Avicennia Capital Sdn Bhd, the 100%-owned insurance holding company of Khazanah.

Executive director of investments Ahmad Farouk Mohammed will be leaving Khazanah on April 30, 2017 after serving Khazanah for 11 years.

He will assume the role of chief strategy officer at Avicennia Capital and will also continue to represent Khazanah as a nominee non-executive director on the board of Cenviro Sdn Bhd.

As a transition from Dominic's departure and to facilitate longer-term succession planning, executive director of investments Datuk Noorazman Abdul Aziz and Khazanah Nasional Consulting (Beijing) Company Limited executive director Datuk Ben Chan will jointly lead the investments division, for an interim period from June 1, 2017 till Dec 31, 2017.

Noorazman and Chan will be appointed executive director, co-head of investments (Divisional Management) and executive director, co-head of investments (Transactions), respectively.

Khazanah said the new appointments and changes to the team supplements its ongoing institutionalisation efforts, which are a key focus for the organisation.

With these changes, Khazanah's senior leadership team led by managing director Tan Sri Azman Mokhtar will have 21 members.


Bursa ends higher on profit-taking among heavyweights

KUALA LUMPUR, April 28 — Bursa Malaysia finished the week marginally higher as mild profit-taking emerged among selective heavyweight with traders reportedly squared some positions ahead of the long weekend break. The benchmark FTSE Bursa…


CIMB upbeat on another record year

KUALA LUMPUR: CIMB Group Holdings Bhd, which has achieved a year of record revenue and net profit last year, is bullish on an even better year ahead in 2017, driven by improving regional economy, declining provisions with improved asset quality, as well as continued cost discipline.

“The economic prospects for Malaysia and the rest of the region is actually improving. In the last three months we are seeing pick up in terms of business confidence,” the group's chairman Datuk Seri Nazir Razak said at a press conference after its AGM here today.

“In terms of loan growth, we are quite positive that this year's momentum will be sustainable. Therefore we hope to record another record year this year and to see growth in our top line,” he added.

Meanwhile, the group's chief executive Tengku Datuk Seri Zafrul Aziz said the group's outlook for 2017 should be better than last year, given the measures that the group has taken since last year, including to improve its loan book in Indonesia and Thailand.

“We recorded a record revenue last year where we passed the RM16 billion mark. However it didn't really translated into profit given the challenges (we had) in terms of asset quality in both Indonesia as well as Thailand,” Zafrul said.


Companies can improve internal communications with workplace by Facebook

KUALA LUMPUR: Companies in Malaysia can improve their inter-department internal communications by using 'Workplace by Facebook', a collaborative platform which allows employees to communicate using its social network features in a corporate environment.

Facebook Asia-Pacific Head of Workplace Ramesh Gopalkrishna said the platform had a clear advantage over other communication systems, as its features were similar to the user-friendly Facebook.

“We are looking forward to seeing more local businesses incorporate Workplace in their organisations, and transform their internal culture and communications that will drive greater efficiency and productivity among employees,” he told a media briefing on the new platform here today.

The platform would allow companies to eliminate or drastically reduce their reliance on internal collaboration tools such as intranet, telephony systems, video conferencing and distribution lists, as these features would be integrated onto one platform and accessible via smartphones.

Since its launch in October last year, Workplace by Facebook has been adopted by more than 14,000 businesses in every continent, including Antarctica.

In Malaysia, it has been used by Axiata Group Bhd, AirAsia Bhd, Gamuda Bhd and Mydin Mohamed Holdings Bhd, among others.

The platform comes in two versions – Workplace Standard, which is free, and Workplace Premium, which charges a monthly fee of US$3 (RM13) per user for the first 1,000 active users, US$2 (RM8.70) per user for the next 9,000 active users and US$1 (RM4.30) for each additional active user.

“However, companies can use the Workplace Premium for free from now until Sept 30,” Ramesh added. — Bernama


Bank Negara’s dollar borrowing in swaps market hits record high

KUALA LUMPUR, April 28 — The Malaysian central bank’s short-term dollar borrowings on its currency reserves book hit an all-time high of nearly US$18 billion (RM78 billion) in March, data today showed, reflecting what the bank said were its…