Friday, September 21st, 2018

 

S&P, Dow touch record highs as tech stocks boost

NEW YORK, Sept 21 ― he benchmark S&P 500 and the Dow Jones Industrial Average touched record highs today, their second session in a row, boosted by gains in the technology and consumer discretionary sectors. Nine of the 11 major S&P…


Apex Equity proposes merger with Mercury Securities

PETALING JAYA: Apex Equity Holdings Bhd proposes a merger with Mercury Securities to expand into the full-fledged corporate advisory business.

Apex said in a filing with the stock exchange that it had entered into a heads of agreement (HoA) with Mercury for the proposed merger via the transfer by Mercury to Apex of its stockbroking, corporate advisory and other related businesses together with the requisite business assets and business liabilities for a consideration of RM140 million.

The RM140 million sum, which will be paid by Apex to Mercury, will be satisfied via RM48 million cash and the issuance of 100 million new Apex shares at an issue price of 92 sen per share, a 0.97% premium to its five-day volume weighted average price of 91.12 sen.

Upon completion, Mercury will hold about 31% stake in Apex.

Apex will also fund part of the cash portion via a private placement of 20 million Apex shares at an issue price to be determined later.

Apex said the objective of the HOA is to set out the mutual understanding between the two parties as well as the salient terms and conditions for the proposed merger prior to entering into a business merger agreement. The exclusivity period for the HoA is three months.

“A detailed announcement will be made upon execution of the agreement for the proposed merger.”

Apex said the proposed merger will enable the group to leverage on the expertise and experience of the management team and employees in the stockbroking and corporate advisory business of Mercury Securities.

Mercury Securities, which has been in operation for 26 years, is one of the three non-bank backed players licensed by the Securities Commission Malaysia that can undertake full-fledged corporate advisory services which include initial public offerings, mergers and acquisitions, take overs and privatisations, equity fund raising, underwriting and placement of securities.

Apex shares closed unchanged at 90 sen on 25,000 shares done.


Greenyield buys remaining 70% stake in rubber planting firms for RM1.57m

PETALING JAYA: Greenyield Bhd is acquiring the remaining 70% stake in SND Teguh Enterprise Sdn Bhd and Pullah PC Dauh Sdn Bhd for RM1.57 million and assumption of liabilities of RM11.48 million.

Greenyield told Bursa Malaysia that its wholly-owned subsidiary Gim Triple Seven Sdn Bhd had on September 21 entered into an agreement with Seri Sanjung Development Sdn Bhd for the acquisition.

Both SND and Pullah are involved in rubber planting and estate management and own the rights to develop and cultivate timber latex clones on 400 hectares of land in Kelantan for a period of 50 years from 28 March 2013.

Greenyield said the proposed acquisitions will enable it to shift from being a minority shareholder in SND and Pullah to being the sole shareholder in both entities.

“This is in line with Greenyield’s long term strategy of expanding its business from supplying tools, chemicals, and fertilisers to plantations, to also include plantation ownership. With tapping of plantations under SND and Pullah which would commence from 2019, the proposed acquisitions are expected to enhance earnings for shareholders of Greenyield.”

In a separate filing, Greenyield said its is disposing of a 30% stake in rubber planting firm Melati Aman Sdn Bhd (MASB) for RM11.8 million.

“The proposed disposal enables Greenyield to exit a minority stake in MASB along with the exit by MASB’s majority shareholder, and at a price which is deemed fair and reasonable by the board. The proposed disposal would also raise proceeds for Greenyield to undertake future corporate exercises involving other viable businesses or assets.”

However, the proposed disposal is expected to result in a loss of RM2 million for the group.


KESM Industries sees lower earnings in Q4

PETALING JAYA: KESM Industries Bhd saw a 15.6% decline in net profit to RM11.32 million for the fourth quarter ended July 31, 2018 against RM13.4 million in the previous corresponding period, mainly due to lower demand for burn-in, testing and electronic manufacturing services.

Its revenue also fell 5% to RM85.27 million from RM89.77 million.

The group has proposed to declare a final dividend of 6 sen per share amounting to RM2.6 million for the quarter under review.

KESM’s full-year net profit dropped 10.6% to RM39.34 million from RM43.99 million, while revenue expanded 3.5% to RM349.78 million from RM337.99 million.

The group said while the broad indices of the semiconductor industry and global growth are positive, it could be disrupted by the escalation of trade wars between major economies and uncertainties inflicted on cross border mergers and acquisitions seen in the semiconductor industry.

“These risks may impact the steady flow of material supplies for our burn-in and test services. Nonetheless, the group is relentlessly streamlining its operations to better position itself for business volatility.”

Its shares were unchanged at RM17.10 on 41,00 shares traded.


Visdynamics Q3 profit nearly doubles

PETALING JAYA: Visdynamics Holdings Bhd’s net profit almost doubled to RM2.64 million for the third quarter ended July 31, 2018 compared with RM1.34 million in the previous corresponding period, driven by higher sales of machines.

Revenue for the quarter under review soared 47.2% to RM11.03 million from RM7.49 million.

For the first nine months of the year, Visdynamics reported a 20% rise in net profit to RM5.05 million from RM4.21 million on the back of a 24.7% increase in revenue to RM27.82 million from RM22.31 million.

In view of the improved financial performance year-to-date, the group is confident of delivering a better financial performance in the financial year 2018.

The stock slipped 1.6% to close at 60 sen with 715,100 shares changing hands.


Bursa closes higher for third straight day, Chinese markets rally

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KUALA LUMPUR: Bursa Malaysia saw third consecutive day of gains as it was lifted by a rally in global stocks following a change in sentiment over the current state of the world’s economy. Chinese shares rallied on Friday with the Shanghai Composite Index rising 2.5% to 2,797.48 and the CSI 300 gaining 3% to 3,410.49. Hong Kong’s Hang Seng followed suit with a 1.7% rise to 27,953.58. Japan’s Nikkei, meanwhile, closed up 0.8% to 23,869.93 while South Korea’s Kospi rose 0.68% to 2,339.17. At 5pm, the FBM KLCI was upRead More


Bursa closes higher as sentiment improves

KUALA LUMPUR, Sept 21 ― Bursa Malaysia ended higher today in line with regional peers as sentiment towards emerging market (EM) assets improved, with investors reassessing the impact of the US-China trade war. The benchmark FTSE Bursa…


Country Heights plans to issue own crypto called “Horse Currency”

PETALING JAYA: Country Heights Holdings Bhd (CHHB) is looking to issue its own asset-backed cryptocurrency (ABC) known as “Horse Currency” through an initial coin offering (ICO).

The group told Bursa Malaysia that it will seek the support and endorsement from the shareholders at its EGM scheduled to be held on November 8.

Citing blockchain technology as the way forward, CHHB highlighted that the main and defining difference of the “Horse Currency” and other cryptocurrencies available in the Malaysian market is that it is backed by the group’s existing assets worth of RM2 billion.

“When launched, the ‘Horse Currency’ will mainly be used as a utility token, a reward token and royalty program with the businesses, products and services under the company’s new business strategies such as stays at the Palace of the Golden Horses, restaurants, golf memberships, private jet trips, Car City Centre, medical treatments and checks at the Golden Horses Health Sanctuary and many others.”

CHHB said the group is also looking at allowing the “Horse Currency” to be used as legal tender in purchasing and leasing its unique properties scheme, especially the resort properties.

Founder and chairman Tan Sri Lee Kim Yew proposes to issue 1 billion units, of which an intial 300 million units will be made available to the public.

CHHB said its assets will be placed in a trust held by a reputable legal firm and a prominent technology partner and other external consultants (if necessary) will be appointed to give back-end support to this exercise.

“We seek the shareholders to approve the appointment of these external consultants. In the fast moving digital age, the company intends to ride this wave of popularity of blockchain technology and assetbacked cryptocurrencies, in finding new and creative means to raise capital for the expansion of the company.”

“We seek the shareholders’ support especially on this ABC, which the company will match minimum RM2 worth of assets eventually for 1 ‘Horse Currency’, across all ICO phases.”

CHHB’s share price fell 1 sen or 0.8% to close at RM1.28 on 5,000 shares done.


Bank Negara international reserves at US$103.9b

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KUALA LUMPUR: The international reserves of Bank Negara amounted to US$103.9bil as at September 14, 2018, down from two weeks ago. The international reserves stood at US$104.4bil as at August 30, 2018. In a statement, Bank Negara said the lower reserves level largely reflects portfolio outflows, as experienced in the region. It said the reserves position was sufficient to finance 8.1 months of retained imports and was 0.9 times the short-term external debt. The short-term external debt, it said, was mostly accounted by banking institutions (69.3% of short-term external debt),Read More


Britain’s Royal Bank of Scotland hit by online banking issues

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LONDON, Sept 21 ― Royal Bank of Scotland today became the latest UK lender to suffer tech problems this week, saying it was working to fix issues with its online and mobile banking services. The outage also affected NatWest, RBS’s most highly…