Monday, April 2nd, 2018


Tesla shares fall again ahead of Model 3 production numbers (VIDEO)

NEW YORK, April 2 — Shares of Tesla Inc fell 8 per cent today, ahead of the electric car maker’s announcement of quarterly production numbers for its crucial Model 3 sedan. Shares in Elon Musk’s US$50-billion (RM193.1 billion) venture have…

Amazon shares fall 4pc as Trump renews attack

NEW YORK, April 2 — Shares of Inc fell 4 per cent today after US President Donald Trump again attacked the online retailer over the pricing of its deliveries through the United States Postal Service and promised unspecified changes….

Stocks in Focus (03-04-2018)

KUALA LUMPUR (April 2): Based on corporate announcements and newsflow today, stocks in focus tomorrow (April 3) may include: WCT Holdings Bhd, Tenaga Nasional Bhd,…

Wall Street dragged down by Amazon, tech weakness

NEW YORK, April 2 — A dreadful week for technology stocks worsened today as Amazon and Tesla shares fell further, setting a grim tone for markets already worried about China’s decision to raise import tariffs on US products. Amazon dropped…

Maybulk offers to sell 21% of POSH to shareholders

PETALING JAYA: Malaysian Bulk Carriers Bhd (Maybulk) proposes to sell its entire 21.23% stake in Singapore-listed PACC Offshore Services Holdings Ltd (POSH) to its shareholders via a renounceable restricted offer for sale (ROS) exercise involving up to 386.39 million POSH shares.

On a pro-rate basis, 386 offer shares are available for sale for every 1,000 existing Maybulk shares held, according to its filing with the stock exchange.

POSH is involved in offshore marine support services. Kuok (Singapore) Ltd is its largest shareholder with a 60.3% stake.

For illustrative purposes, based on the discount range of between 15% and 30% to the five-day volume weighted average market price of POSH shares of RM1.1043 (S$0.3720), the indicative offer price range will be between 77.3 sen (S$0.2604) and 93.87 sen (S$0.3162) per offer share.

Assuming that all the offer shares are fully taken up by the entitled shareholders based on an indicative offer price of 88 sen, the estimated gain to Maybulk from the proposed disposal is RM337.2 million. To date Maybulk has invested RM1.1 billion in POSH.

Maybulk noted that the disposal is due to the need to raise funds to strengthen its future operations given the weakness in the dry bulk and offshore services sectors in the recent years, which has resulted in a cash flow constraint.

“As such, the group has decided to undertake the proposed disposal through the proposed ROS to monetise its investments in POSH and raise the cash required to finance its working capital, part finance the construction costs of new vessels and repay part of its borrowings. This will enable the group to focus on its core business activity in the dry bulk sector.”

Banking sector on track to meet 5% loan growth

PETALING JAYA: The banking sector is on track to meet the projected 5% loan growth in 2018 on the back of a 5.5% gross domestic product (GDP) growth, said AmInvestment Bank.

“February 2018 saw household loan growth rising to 5.6% year-on-year versus 5.3% year-on-year in January 2018. The improvement was contributed by a stronger pace of loans for purchase of securities, personal loans and credit cards. Mortgage loan growth continued to be stable,” it said in its report today.

Non-household loan growth climbed to 3.1% year-on-year from 2.7% year-on-year in the preceding month. Growth in working capital loans was stable at 0.7% year-on-year while that for construction purposes surged to 7.9% year-on-year.

Year-to-date, industry loan growth was 4.5% annualised, boosted by improvements in both household and non-household loans growth.

The growth of industry loan applications declined to 5.8% year-on-year compared with 25.5% in January 2018. Growth in household and non-household loan applications were slower at 4.6% year-on-year and 7.2% year-on-year respectively.

“We believe that the decline was contributed by the shorter month in February which included a festive season. By sector, the decline in growth of loan approvals was mainly contributed by slower approvals of loans to the manufacturing, utilities, wholesale and retail trade, restaurants and hotels, finance, insurance and business activities as well as the household sectors,” said AmInvestment Bank.

The banking sector deposits’ growth slipped to 4.2% year-on-year, down from 4.4% year-on-year in January 2018. Growth in individual deposits gained traction to 3.2% year-on-year but was dampened by a slower growth in business enterprise deposits of 8.9% year-on-year. Loan-to-fund ratio and loan-to-fund and equity ratio remained stable at 83.5% and 72.9% respectively while industry CASA growth continued to slow down for the second consecutive month to 6.3% year-on-year compared with 8.5% in January 2018 and 9.4% in December 2017.

Following the Overnight Policy Rate (OPR) hike of 25bps in January 2018, the banking sector’s weighted average lending rate and base rate for commercial banks continued to rise to 5.41% and 3.89% respectively in February 2018.

Solid Automotive to buy 90% of Borneo Technical

PETALING JAYA: Solid Automotive Bhd is looking to acquire a 90% stake in Borneo Technical Co (M) Sdn Bhd, a company involved in the marketing and distribution of automotive replacement parts, industrial supplies and marine products.

Solid said in a filing with the stock exchange that it had on April 2 entered into a memorandum of understanding (MoU) with Toyota Tsusho Corp, Toyota Tsusho (Malaysia) Sdn Bhd and Borneo Technical Co (M) Sdn Bhd to outline the basic principles for the negotiation in relation to the proposed shares subscription.

Solid said the MoU is to enable it to perform due diligence on Borneo and to allow the parties to negotiate the terms and conditions for the proposed subscription. A definitive shares sale agreement is expected to be signed within three months.

“Solid believes that Borneo possesses the required distribution network, product range and brand name and reputation in line with Solid’s plans for the expansion of its automotive aftermarket business.”

It will fund the acquisition through internally generated funds and/or bank borrowings.

Solid’s share price declined half a sen or 1.4% to close at 35 sen today on some 1.85 million shares done.

Foreigners sold RM301m last week

PETALING JAYA: The net amount sold by foreign investors last week amounted to RM301.3 million, the second largest weekly attrition so far this year.

MIDF Research said global funds took a breather from Malaysian stocks after two straight weeks of buying on the backdrop of global geopolitical worries.

“Foreign net selling occurred on three out of five trading days last week, from Monday to Wednesday,” the research house said in its fund flow report today.

Only RM40.3 million net of local equities were sold on Monday but selling activity gradually accelerated to RM207.7 million net on Wednesday, coinciding with the FBM KLCI’s largest daily loss during the week, of 0.25%.

It said the main trigger for the heavy selling on Wednesday is the selloff in technology stocks on Wall Street overnight sparked by increased scrutiny over the technology sector whereby Chinese investments in the sector would be capped at a certain level.

Global investors slowly returned to Malaysia on Thursday to a tune of RM39.2 million net aided by easing geopolitical tensions in the Korean peninsula after the two Koreas are set to have talks on April 27. Friday’s foreign buying on Bursa declined to RM9.30 million net with regional peers, namely the Philippines and Indonesia closed for Good Friday.

It said March 2018 recorded a net outflow of RM61.6 million net, a big difference from the RM1.12 billion sold in the previous month. Meanwhile, RM2.20 billion net of local equities were acquired by foreigners on Bursa in 1Q18, the only Southeast Asian market under its coverage with a net inflow. Still, this is less than the RM5.74 billion accumulated in 1Q17.

“We reckon that foreign flows may be muted leading up to the 14th general election which looks set to be held within the next few months,” said MIDF.

Foreign participation has started to slowdown a bit as the foreign average daily trade value (ADTV) declined below the RM1 billion mark for the first time in 12 weeks to settle at RM934 million. The retail market meanwhile was little changed with an ADTV of RM842 million.

TNB’s UK unit secures £120m loan for wind turbine venture

PETALING JAYA: Tenaga Nasional Bhd (TNB) has entered into a new £120 million (about RM650.93 million) financing facility with Bayerische Landesbank (BayernLB) in London via its wholly owned subsidiary Tenaga Wind Ventures UK Ltd.

It said in a statement today, the facility is to refinance its 80% interest in two UK-registered renewable energy companies, GVO Wind Limited and Bluemerang Capital Limited, which were acquired on Feb 28, 2018.

Tenaga Wind Ventures has become the owner of the largest Feed-in Tariff (FiT) portfolio in the UK with the combined portfolio of the two companies, comprising 53 operational onshore wind turbines with a total combined capacity of 26.1MW spread across England, Scotland and Wales.

TNB said the refinancing exercise represents the first overseas non-recourse acquisition refinancing that it has undertaken through a wholly owned subsidiary. It is also the UK’s largest financing for medium scale operational FiT on-shore wind portfolio, to date.

TNB’s share price fell 0.25% or 4 sen to close at RM16.20 today with a total of 6.16 million shares traded.

GFM bags RM51.8m contract to manage PPNS

PETALING JAYA: GFM Services Bhd’s wholly owned subsidiary Global Facilities Management Sdn Bhd, has bagged a RM51.8 million contract from Sinar Uni-Resources Sdn. Bhd, to provide integrated facilities management (FM) services for the Sabah State Administration Centre (PPNS) in Kota Kinabalu.

The group’s board of directors said in a Bursa Malaysia filing, the five-year contract which will run from January 2018 until January 2023, is expected to contribute positively to the earnings of GFM Group for the financial year ending Dec 31, 2018.

“It is a significant addition to our portfolio which will contribute positively to the group’s financial performance with a recurring revenue of RM10.4 million per annum, about 10% of GFM’s total revenue in FY2017,” said its managing director Ruslan Nordin.

“The contract will further replenishes our current orderbook to RM300 million,” he said.

GFM’s shares fell 1.02% to 48.5 sen with some 14,500 shares done.