Tuesday, September 19th, 2017

 

Broadcom to become largest E&E exporter

NIBONG TEBAL: Leading global supplier of diverse analog and digital semiconductor connectivity solutions, Broadcom Limited, will be the biggest electrical and electronic (E&E) exporter in Malaysia next year.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed said Broadcom’s export value is expected to hit about RM65 billion, which is roughly 8% of the country’s total export, next year.

“Up to this moment, Western Digital is the largest exporter with RM20 billion of its products, which are hard disk drives,” he told reporters at a press conference after the launch of Broadcom Limited’s Global Distribution Warehouse at Persiaran Cassia Selatan 4, Batu Kawan today.

Mustapa and Chief Minister Lim Guan Eng officiated the opening ceremony of the distribution warehouse.

Also present were Malaysian Investment Development Authority deputy chief executive officer Datuk Phang Ah Tong and Broadcom Limited senior vice-president (Global Operations) Datuk BC Ooi.

“Broadcom also has plans to invest about RM4.1 billion in expanding its supply chain operations based in Malaysia for global production planning, quality management, strategic procurement, and logistics management over the next 10 years.”

On the new warehouse in Batu Kawan, Mustapa said it would store Broadcom’s products that were manufactured in the US, Taiwan, South Korea, Thailand, and Malaysia for worldwide distribution. It had previously shipped its products from Singapore.

“The new facility is undeniably a welcome boost to Malaysia’s logistics industry.

“Given that 90% of its products will be exported via airfreight, there would be increased usage of Malaysia’s airport facilities with approximately 300 million to 500 million units of products being shipped per week,” he said.

Mustapa added that Malaysia had been ranked as the world’s seventh largest exporter of electrical and electronic products with a total of RM287 billion last year.

He said the industry had seen an upward trend in export over the past three years, contributing 36.6% of total exports and 44.6% to the total manufacturing exports in 2016.


Two Indian renewable power producers plan to sell US$750m in domestic bonds, say sources

MUMBAI, Sept 19 — Two of India’s biggest renewable energy companies, Greenko Group PLC and ReNew Power Ventures Pte Ltd, plan to sell a combined US$750 million (RM3.1 billion) worth of rupee-denominated bonds in the domestic market, three…


Nor Mohamed tenders resignation as Khazanah’s deputy chairman

KUALA LUMPUR, Sept 19 — Tan Sri Nor Mohamed Yakcop, Deputy Chairman of Khazanah Nasional Bhd, has submitted his resignation from the board of directors, effective Sept 30, 2017. In a statement today, the government investment fund said the…


Nor Mohamed Yakcop leaves Khazanah, KRI

PETALING JAYA: Khazanah Nasional Bhd deputy chairman Tan Sri Nor Mohamed Yakcop has resigned from the strategic investment fund’s board of directors effective Sept 30, 2017.

He will also be vacating his post as Khazanah Research Institute (KRI) chairman on the same date.

Khazanah said in a statement today that he submitted his resignation at the Khazanah board of directors' 84th meeting held today and the board has accepted his decision.

Nor Mohamed, 70, served on the board of directors for 15 years, making him the longest serving board member. He is also the only deputy chairman in Khazanah’s 23-year history.

The former Bank Negara Malaysia adviser is currently being investigated for forex losses that happened under his watch. The Royal Commission of Inquiry is looking into the forex trading losses of RM31 billion which happened in the early 1990s.


Adventa registers net profit in Q3

PETALING JAYA: Adventa Bhd has registered a net profit of RM34,000 in the third quarter (Q3) ended July 31, 2017, compared with a net loss of RM456,000 in the previous corresponding quarter.

Revenue jumped 37% to RM10.52 million, from RM7.68 million in the same period last year.

Adventa said in Bursa Malaysia filing, the higher revenue was mainly due to bigger contribution from the group's distribution segment.

For the nine months period, its net profit declined almost 30% to RM371,000, against RM529,000 a year ago, while revenue increased 9.2% to RM32.08 million, compared with RM29.36 million previously.

On prospects, the group said it expects the current trends of growth will continue into the fourth quarter, driven by its distribution and sterilization segments. It noted that both segments see signs of improving sales from the past quarters of slow growth revenue.

To capitalize on the changing landscape in healthcare, Adventa said it has put in place new strategies to increase range of products and services.
“These initiatives shall see returns next year,” it said.

As the ringgit recovers, Adventa said purchase cost from overseas shall be reduce and thus improving its margins.

“The company is optimistic that the year will be profitable and improving,” it added.

Adventa gained 1.47%, to close at 69 sen with 22,500 shares traded. Its market capitalisation stood at RM105.42 million.


Bank Negara to issue guidelines on bitcoin, other cryptocurrencies by year end

KUALA LUMPUR, Sept 19 — Bank Negara Malaysia (BNM) is planning to issue guidelines on cryptocurrency by year-end, said Governor, Tan Sri Muhammad Ibrahim.  He said cryptocurrency, or digital currency, had attracted a lot of attention from…


Malaysia needs to enhance transparency, professionalism to draw foreign institutional investors

KUALA LUMPUR, Sept 19 — Malaysia needs to enhance the transparency of government policymaking, market professionalism and data information in order to attract foreign institutional investors to its property sector. International Real Estate…


Bursa Malaysia ends lower amid lacklustre trading

KUALA LUMPUR: Bursa Malaysia closed lower today amid a lacklustre trading day following subdued sentiment as the US Federal Open Market Committee begins its two-day meeting, dealers said.

At the close, the key FTSE Bursa Malaysia KLCI (FBM KLCI) fell seven points to end at 1,776.66 against yesterday's close of 1,783.66.

Earlier, the benchmark index opened 0.02 of-a-point higher at 1,783.66.

A dealer said the US central bank was expected to leave interest rates unchanged when it announced the outcome of the meeting on Wednesday.

However, he said investors were awaiting the details on the central bank's reduction of US$3.7 trillion (US$1=RM4.18) in treasuries and mortgage-backed securities bought during the financial crisis.

On the scoreboard, the FBM Emas Index was 44.24 points lower at 12,654.52, the FBMT 100 Index went down 44.97 points to 12,314.23 and the FBM Ace erased 38.14 points to 6,661.16.

The FBM Emas Syariah Index retreated 26.07 points to 12,860 and the FBM 70 fell 41.79 points to 15,131.22.

Sector-wise, the Plantation Index decreased 24.44 points to 7,953.82, the Finance Index fell 72.42 points to 16,762.25 and the Industrial Index went down 1.16 points to 3,235.42.

Market breadth was negative as losers led gainers by 517 to 337 with 393 counters unchanged, 590 untraded and 23 others suspended.

Volume rose to 2.01 billion units worth RM1.92 billion from 1.99 billion units worth RM1.6 billion yesterday.

For heavyweights, Maybank added one sen to RM9.81 and Public Bank gained two sen to RM20.60.

TNB lost two sen to RM14.56, Sime Darby eased one sen to RM9.18 and CIMB shed 23 sen to RM6.46.

Among active counters, Hubline perked half-a-sen to 6.5 sen and Scomi garnered 2.5 sen to 18.5 sen.

MQ Tech eased one sen to 6.5 sen, Sino Hua-An lost two sen to 23.5 sen and Vizione slipped half-a-sen to 15 sen.

The Main Market volume increased to 1.49 billion shares worth RM1.83 billion from Monday's 1.23 billion shares worth RM1.48 billion.

Volume on the ACE Market shrank to 379.7 million shares valued at RM73.41 million from 610.23 million shares valued at RM100.76 million previously.

Warrants decreased to 125.24 million units worth RM15.76 million from yesterday's 142.79 million units worth RM20.61 million.

Consumer products accounted for 75.95 million shares traded on the Main Market, industrial products (293.23 million), construction (123.37 million), trade and services (768.65 million), technology (62.84 million), infrastructure (5.2 million), SPAC (8.15 million), finance (54.87 million), hotels (3.81 million), properties (74.22 million), plantations (17.9 million), mining (11,500), REITs (7.11 million), and closed/fund (53,900).

The physical price of gold as at 5pm stood at RM170.63 per gramme, down 73 sen from RM171.36 at 5pm yesterday. — Bernama


CCM buys remaining 20% stake in CCM Chemicals for RM40m

PETALING JAYA: Chemical Company of Malaysia Bhd (CCM) is acquiring the remaining 20% stake in CCM Chemicals Sdn Bhd for RM40 million cash, in a bid to further consolidate its existing chemicals division and strengthen its position in the chemical industry.

Upon completion, CCM Chemicals will be the wholly owned subsidiary of CCM.

The group told Bursa Malaysia that it had entered into sale of shares agreements with Lanjut Setia Sdn Bhd and Permodalan Nasional Bhd for the acquisition of a 10% stake for RM20 million each.

CCM noted that over the years, it has sought to continuously review its portfolio and strengthen its balance sheet. As part of the growth strategy, it is continuing to pare down its borrowings and improve its gearing.

At market close, CCM shares rose two sen to RM1.45, with some 614,200 shares changing hands.


AWC bags RM24m facilities management contract

PETALING JAYA: AWC Bhd's wholly-owned subsidiary Ambang Wira Sdn Bhd has been awarded a RM24.38 million contract from the Public Works Department for the facilities management of Palace of Justice in Precinct 3, Putrajaya.

The contract is effective for five years from Oct 1, 2017 until Sept 30, 2022.

The Palace of Justice building houses the Malaysian Court of Appeal and Federal Court. This award further enhances the facilities division and the group's overall existing order book and is expected to contribute positively to the group's earnings.

Ambang Wira, a part of the group's facilities division, has accepted and returned the government's letter for acceptance of tender dated Sept 14, 2017.

The group's facilities division has a concession from the federal government for the maintenance of federal government buildings and facilities located in the southern states of Peninsular Malaysia (Negeri Sembilan, Malacca and Johor) and the state of Sarawak. In addition, this division also provides building facilities maintenance works for the commercial and healthcare segments.

AWC managing director & group CEO Datuk Ahmad Kabeer said it is pleased to have been awarded the facilities management contract for the Palace of Justice, which is an impressive and majestic building.

“This addition to our portfolio is testament to the quality of our work and we will do our best to exceed expectations,” he said in a statement.

AWC closed 6% higher at RM1.06, with 2.84 million shares traded.