Friday, June 28th, 2019


MMIS aims to raise RM5m from LEAP market listing

PETALING JAYA: MMIS Bhd aims to raise RM5 million from its proposed listing on the Leading Entrepreneur Accelerator Platform (LEAP) Market of Bursa Malaysia Securities Bhd.

According to its information memorandum launched today, the precision engineering parts manufacturer will be issuing up to 50 million new shares, representing an enlarged share issuance of 10% at a price of 10 sen per unit.

It plans to utilise RM2 million or 55% of the proceeds towards capital expenditure.

MMIS managing director Loh Chin Soon said its production capacity presently operates at an average utilisation rate of 73% with the production floor space fully utilised.

“The plan to construct a new facility with an estimated built-up area of 27,000 sq ft is expected to be completed by mid-2020. The plan to amalgamate both production facilities will increase the built-up area by 7,200 sq ft and the total current production space from 32,400 sq ft to 66,600 sq ft, by the end of 2020,” Loh said in a statement.

In Malaysia, the precision engineering industry has shown an increase from RM4.0 billion in 2010 to RM7.1 billion in 2018 with a compound annual growth rate of 7.4%.

Loh believed that the growth of the industry in Malaysia will be supported by demand for precision engineered parts by end user markets such as the manufacturing sector and the global market for the production of electronic products.

In the previous financial year ending June 30, 2018, MMIS recorded a profit before tax of RM5.27 million, three times higher from RM1.71 million recorded in the preceding year.

For the listing, the group has appointed Sierac Corporate Advisers Sdn Bhd as the adviser, custodian & placement agent.

Japan, US agree to accelerate trade talks from July

OSAKA, June 28 — Japan and the United States agreed today to hold working-level meetings intensively from early next month to accelerate progress towards a two-way trade agreement, Economy Minister Toshimitsu Motegi said. The agreement between…

France sinks deeper into debt

PARIS, June 28 — France has slipped further into the red, the national statistics bureau said today, only days after the country’s public auditor warned of “worrying” debt levels. Public debt rose to 99.6 per cent of gross domestic product…

Hong Kong stocks end week with a loss

HONG KONG, June 28 — Hong Kong shares ended the week with a loss Friday as investors prepared for the upcoming meeting between Donald Trump and Xi Jinping. The Hang Seng Index slipped 0.28 per cent, or 78.80 points, to 28,542.62. The benchmark…

Bank Negara: Liquidity remains ample in Malaysia’s banking system

KUALA LUMPUR, June 28 — Banks in Malaysia have maintained sufficient liquidity to support intermediation and meet urgent needs, Bank Negara Malaysia (BNM) said. The banking system’s liquidity coverage ratio (LCR) stood at 155.2 per cent in May…

Leweko receives takeover offer from Rengit Capital

PETALING JAYA: Leweko Resources Bhd has received an unconditional mandatory takeover offer from Rengit Capital Sdn Bhd to buy all the remaining shares and warrants not owned by the offeror for 18 sen per share and 1 sen per warrant after the latter acquired a 50.47% shareholding and 93.57% warrants holding in Leweko for RM30.18 million cash today.

The takeover offer on the remaining 159.42 million shares and 6.43 million warrants is triggered in accordance with Capital Markets and Services Act 2007, following the conclusion of the share sale agreement.

According to the group’s stock exchange filing, the 18 sen per offer share represents a 2.56% premium from its five-day volume weighted average price (VWAP) and a 4.41% premium on its one-year VWAP. The 1 sen per warrant offer price represents a 85.49% discount of its five-day VWAP and a 85.97% discount on its one-year VWAP.

The offer will remain open for a period of not less than 21 days or a later closing date that will be announced.

Despite the takeover offer, Rengit Capital said that it intends to maintain the listing status of Leweko on the Main Market of Bursa Securities.

However, if it fails to meet Bursa Securities’ 25% public spread requirement, Rengit Capital will explore other options and proposals within three months of the closing date.

Deutsche Bank supports European shares ahead of G20 meeting, US-China talks

BERLIN, June 28 — Germany’s top lender Deutsche Bank propped up European stocks today, but investors were generally cautious ahead of a pivotal G20 meeting where progress on US-China trade talks will be closely monitored. US President Donald…

Gold rises on trade uncertainty; on course for best month in 3 years

Gold prices rose on Friday, heading for their best month in three years, as uncertainty loomed over whether highly anticipated trade talks between China and the United States would yield any progress in ending a year-long trade dispute.

Spot gold was up 0.4% at $1,414.61 per ounce as of 0540 GMT. Gold has risen nearly 8.4% so far this month, on track for its biggest monthly percentage gain since June 2016.

With nearly 1.2% gained so far this week, bullion is also set to post its sixth consecutive weekly rise.

U.S. gold futures climbed 0.8% to $1,423.40 an ounce.

The leaders of the Group of 20 countries meet on Friday and Saturday in Osaka, Japan, with a much-anticipated meeting between U.S. President Donald Trump and Chinese President Xi Jinping scheduled for Saturday.

The Wall Street Journal on Thursday reported that Xi plans to present Trump with a set of terms the United States should meet before Beijing would be ready to settle their trade dispute.

White House economic adviser, Larry Kudlow, however, said Trump has agreed to no preconditions for his high-stakes meeting with Xi and is maintaining his threat to impose new tariffs on Chinese goods.

“On going tensions around the trade talks between the U.S. and China helped gold with some safe-haven buying prior to the G20 summit meeting on Saturday,” ANZ analyst Daniel Hynes said.

“The emergence of a list of requirements from China has just reminded the market that it’s going to be a difficult process to get the trade talks going again,” he said.

The trade tensions also weighed on equity markets on Friday, boosting appeal for safe-haven bullion.

The yellow metal also been underpinned by a softer dollar , which stood at 96.200 after hitting a near one-week high in the previous session.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.26% to 795.80 tonnes on Thursday, from 797.85 tonnes on Wednesday.

On the technical front, spot gold may retest a resistance at $1,439 per ounce, as it has found support at $1,404, according to Reuters technical analyst Wang Tao.

Among other precious metals, silver inched up 0.1% to $15.27 per ounce. The metal is set to post its first monthly gain in five months, and is headed for its best month this year.

Palladium gained 0.5% to $1,558.10 an ounce. The auto-catalyst metal has risen over 17% so far this month, its biggest monthly percentage gain since November 2016.

Platinum was up 0.4% at $814.56. – Reuters

Opec faces output balancing act over US-Iran crisis

LONDON, June 28 — Opec is on red alert over escalating US-Iran tensions that fuelled strong oil-price gains — but the cartel and other crude-producing nations are unlikely to end output cuts at a meeting Tuesday. The Organisation of the…

Sunway Construction exceeds RM1.5b job target for 2019 after RM496.8m new wins

PETALING JAYA: Sunway Construction Group Bhd (SunCon) announced that it has exceeded this year’s target of RM1.5b with three contract wins totalling RM496.8 million, via its subsidiary Sunway Construction Sdn Bhd and Sunway Engineering Sdn Bhd.

According to its Bursa Malaysia filing, the group has accepted a letter of award from Petronas Management Training Sdn Bhd for the construction of Petronas Leadership Centre in Sepang, Selangor for RM310 million.

The project is scheduled to commence on August 1, 2019 and is expected to be completed March 31, 2021.

The group has also been appointed to undertake earth work and piling work for Sunway South Quay Sdn Bhd, an indirect subsidiary of SunCon’s major shareholder, Sunway Bhd for its mixed development project in Bandar Sunway, Selangor.

The contract is valued at RM119 million and will commence on July 15, 2019 until March 14, 2021.

In addition, SunCon has been appointed by Ssangyong Engineering & Construction Co Ltd as a sub-contractor for the supply and delivery of electrical and ELV services for a mixed development project in Jalan Ampang for Oxley Rising Sdn Bhd for RM67.80 million.

The mixed development contract runs from July 1, 2019 to May 3, 2022.

“The total new projects awarded this year, including the three new projects, amount to RM1.536 billion which has exceeded SunCon’s target of RM1.5 billion for 2019,“ SunCon said.