The Sun

25/06/2019

Bursa malaysia ends mixed, CI marginally higher

KUALA LUMPUR: Bursa Malaysia ended mixed today, with the benchmark index settling in positive territory, after fluctuating between gains and losses throughout the day, as late buying provided support for selected heavyweights led by Tenaga, CIMB and IOI Corp.

At the close, the FTSE Bursa Malaysia KLCI (FBM KLCI) increased 0.48 of-a-point to end at 1,676.61 compared with Monday’s close of 1,676.13.

The index, which opened 0.31 of-a-point lower at 1,675.82, move between a low of 1,672.41 and a high of 1,677.76 throughout the session.

Losers led gainers 413 to 364, while 394 counters were unchanged, 746 untraded and 42 others suspended.

Turnover fell slightly to 1.78 billion units valued at RM1.75 billion from 1.81 billion units valued at RM1.68 billion recorded yesterday.

Inter-Pacific Securities head of research Pong Teng Siew said the market struggled to surpass the present resistance level of 1,675, which was broken last week.

“Many sectors were up today such as plantation, construction, telecommunications and technology but financial, healthcare, energy, and consumer products were down.

“Finance sector is experiencing a weak loan growth, despite the fact that housing loans is doing well,” he told Bernama today.

In addition, he said the market also expected to experience mid-year window-dressing activities soon.

“Fund managers may dress up their books by pushing (stocks) to a good close.

“However, it depends very much on how the global market performs over the next few days. Some may attempt to close their books on a better note,” he added.

Among the heavyweights, Tenaga was 20 sen higher at RM14.00, while both CIMB and IOI Corp added six sen each to RM5.34 and RM4.26 respectively.

However, Maybank dropped three sen to RM8.93 while Public was flat at RM23.02.

As for active stocks, Bumi Armada and Sumatec both remained unchanged at 21 sen and one sen respectively while Focus Dynamics rose 1.5 sen to 16 sen.

The FBM Emas Index climbed 14.28 points to 11,807.22, the FBMT 100 Index increased 15.09 points to 11,662.20 and the FBM Emas Shariah Index rose 37.53 points to 12,163.57.

The FBM 70 jumped 66.59 points to 14,635.43 and the FBM Ace went up 26.51 points to 4,392.01.

Sector-wise, the Financial Services Index slid 54.03 points to 16,706.93, the Industrial Products and Services Index edged down 0.41 of-a-point to 161.03 while the Plantation Index was 24.12 points better at 6,976.26.

Main Market volume declined to 1.03 billion shares worth RM1.55 billion from 1.21 billion shares worth RM1.53 billion on Monday.

Warrants turnover however swelled to 471.8 million units valued at RM128.97 million from 360.02 million units valued at RM73.64 million.

Volume on the ACE Market also increased to 283.54 million shares worth RM68.55 million from 219.40 million shares worth RM71.0 million.

Consumer products and services accounted for 199.82 million shares traded on the Main Market, industrial products and services (138.39 million), construction (120.14 million), technology (66.20 million), SPAC (nil), financial services (58.40 million), property (79.32 million), plantation (12.53 million), REITs (13.26 million), closed/fund (2,600), energy (260.16 million), healthcare (11.56 million), telecommunications and media (42.66 million), transportation and logistics (15.95 million), and utilities (10 million).

The physical price of gold as at 5.00pm stood at RM184.22 per gramme, up RM3.26 from RM180.96 at 5.00pm yesterday. — Bernama

25/06/2019

Sri Lankan PM inaugurates Malaysian-owned lubricant plant

COLOMBO: It was a big day both for Malaysia and Sri Lanka amidst a strong presence of Sri Lankan dignitaries led by Prime Minister Ranil Wickremesinghe who inaugurated a Malaysian-owned US$30 million (RM124.2 million) lubricant blending plant near here on Monday.

The gala opening ceremony of the plant at Muthurajawela was a timely morale-boosting event that somewhat lifted the gloom two months after the Easter Sunday suicide bomb attacks in several places on this island nation that left 258 people dead.

The plant, owned by Hyrax Oil Sdn Bhd and financed by loans from Malaysia’s Exim Bank Bhd, marks the resumption of investments in Sri Lanka by Malaysians after a long spell of inactivity and is the first foreign investment from Malaysia during the current government that came to power four years ago under President Maithripala Sirisena and Wickremesinghe.

In his speech at the ceremony, Wickremesinghe spoke fondly of Hyrax Oil founder and group managing director Datuk Hazimah Zainuddin, whose grandfather happened to be a Sri Lankan from the Gall Province.

Hazimah is also the chairman of Perbadanan Usahawan Nasional Bhd, the key entity that gives out loans to finance small and medium enterprises.

“Her grandfather came from Gall and now the grand-daughter has come back to invest in Sri Lanka that will boost trade and cultural relations between our two countries,“ said the prime minister to the cheers of a large gathering of guests who included ministers, deputy ministers, provincial governors and members of Parliament.

Wickremesinghe said after the recent Easter terrorist attacks, he had met with many trade delegations from Hong Kong, Taiwan and Malaysia and this showed their continued confidence in Sri Lanka’s potentials for investment.

“In the past, many countries such as Malaysia and Singapore were behind Sri Lanka on development, but with the war we fought for 35 years, these countries developed ahead of us. Therefore, we have many responsibilities to ensure that correct leadership is given for the development of the country,“ he said, referring the civil war waged by the Liberation Tigers of Tamil Eelam for a separate homeland in the North East that finally ended 10 years ago.

Wickremesinghe also pointed out that when his government came to power, the Sri Lankan economy was in a bad state due to too many loans taken by the previous government that were due for repayments.

“We didn’t have the money to pay the loans but due to the great effort put in by the government, we were able to service the due repayments with the greatest difficulty. We had to go through a difficult time and the people of the country faced many hardships during this time,“ said Wickremesinghe.

But he said plans were in place to ensure Sri Lankans would have a good future ahead.

He also disclosed that the government had changed many laws to boost further investor confidence following feedback received from many investors in many countries about the existence of laws that were not investor-friendly.

25/06/2019

Sri Lankan PM inaugurates Malaysian-owned lubricant plant

COLOMBO: It was a big day both for Malaysia and Sri Lanka amidst a strong presence of Sri Lankan dignitaries led by Prime Minister Ranil Wickremesinghe who inaugurated a Malaysian-owned US$30 million (RM124.2 million) lubricant blending plant near here on Monday.

The gala opening ceremony of the plant at Muthurajawela was a timely morale-boosting event that somewhat lifted the gloom two months after the Easter Sunday suicide bomb attacks in several places on this island nation that left 258 people dead.

The plant, owned by Hyrax Oil Sdn Bhd and financed by loans from Malaysia’s Exim Bank Bhd, marks the resumption of investments in Sri Lanka by Malaysians after a long spell of inactivity and is the first foreign investment from Malaysia during the current government that came to power four years ago under President Maithripala Sirisena and Wickremesinghe.

In his speech at the ceremony, Wickremesinghe spoke fondly of Hyrax Oil founder and group managing director Datuk Hazimah Zainuddin, whose grandfather happened to be a Sri Lankan from the Gall Province.

Hazimah is also the chairman of Perbadanan Usahawan Nasional Bhd, the key entity that gives out loans to finance small and medium enterprises.

“Her grandfather came from Gall and now the grand-daughter has come back to invest in Sri Lanka that will boost trade and cultural relations between our two countries,“ said the prime minister to the cheers of a large gathering of guests who included ministers, deputy ministers, provincial governors and members of Parliament.

Wickremesinghe said after the recent Easter terrorist attacks, he had met with many trade delegations from Hong Kong, Taiwan and Malaysia and this showed their continued confidence in Sri Lanka’s potentials for investment.

“In the past, many countries such as Malaysia and Singapore were behind Sri Lanka on development, but with the war we fought for 35 years, these countries developed ahead of us. Therefore, we have many responsibilities to ensure that correct leadership is given for the development of the country,“ he said, referring the civil war waged by the Liberation Tigers of Tamil Eelam for a separate homeland in the North East that finally ended 10 years ago.

Wickremesinghe also pointed out that when his government came to power, the Sri Lankan economy was in a bad state due to too many loans taken by the previous government that were due for repayments.

“We didn’t have the money to pay the loans but due to the great effort put in by the government, we were able to service the due repayments with the greatest difficulty. We had to go through a difficult time and the people of the country faced many hardships during this time,“ said Wickremesinghe.

But he said plans were in place to ensure Sri Lankans would have a good future ahead.

He also disclosed that the government had changed many laws to boost further investor confidence following feedback received from many investors in many countries about the existence of laws that were not investor-friendly.

25/06/2019

MMC kept at ‘market perform’ despite disposal loss

PETALING JAYA: Kenanga Reseach is maintaining its “market perform” call on MMC Corp Bhd despite an expected loss on disposal of RM20 million from the government’s take over of SMART Tunnel.

However, with the RM184.5 million disposal proceeds or an effective equity value of RM30 million, there could be a special dividend in the cards.

“Assuming a 50% payout from cash proceeds of RM184.5 million, this would possibly translate into a special dividend per share of 3 sen.”

The Finance Ministry has offered to acquire the SMART tunnel, which is a 50:50 JV between Gamuda Bhd and MMC, for a total cash consideration of RM369 million.

“With the MoF’s implied valuation of RM30 million for SMART tunnel standing at a 40% discount to an estimated book value of RM50 million, we reckon that the deal will translate into a loss on disposal of RM20 million for MMC.”

Despite that, Kenanga deems the takeover price to be fair and it is positive for the group.

“This is pinning on the fact that SMART tunnel has been loss-making for the past three financial years, with after-tax loss of RM5 million registered in FY18, which was dampened by low traffic volumes. Hence, we believe that this poses as a great opportunity for the group to exit its loss-making asset.”

The research house expects the disposal to contribute roughly 2-3% positive earnings impact towards MMC’s Y20 numbers.

Meanwhile, the balance sheet impact is also expected to be minimal, with net gearing of 0.9 times remaining intact.

Kenanga does not make changes to its FY19-20 numbers given the minimal impact from the disposal.

“We also believe our target price (RM1.10) is fair at this juncture, pending more earnings stability and margin improvement in the coming quarters, which is yet to be seen.”

25/06/2019

MMC kept at ‘market perform’ despite disposal loss

PETALING JAYA: Kenanga Reseach is maintaining its “market perform” call on MMC Corp Bhd despite an expected loss on disposal of RM20 million from the government’s take over of SMART Tunnel.

However, with the RM184.5 million disposal proceeds or an effective equity value of RM30 million, there could be a special dividend in the cards.

“Assuming a 50% payout from cash proceeds of RM184.5 million, this would possibly translate into a special dividend per share of 3 sen.”

The Finance Ministry has offered to acquire the SMART tunnel, which is a 50:50 JV between Gamuda Bhd and MMC, for a total cash consideration of RM369 million.

“With the MoF’s implied valuation of RM30 million for SMART tunnel standing at a 40% discount to an estimated book value of RM50 million, we reckon that the deal will translate into a loss on disposal of RM20 million for MMC.”

Despite that, Kenanga deems the takeover price to be fair and it is positive for the group.

“This is pinning on the fact that SMART tunnel has been loss-making for the past three financial years, with after-tax loss of RM5 million registered in FY18, which was dampened by low traffic volumes. Hence, we believe that this poses as a great opportunity for the group to exit its loss-making asset.”

The research house expects the disposal to contribute roughly 2-3% positive earnings impact towards MMC’s Y20 numbers.

Meanwhile, the balance sheet impact is also expected to be minimal, with net gearing of 0.9 times remaining intact.

Kenanga does not make changes to its FY19-20 numbers given the minimal impact from the disposal.

“We also believe our target price (RM1.10) is fair at this juncture, pending more earnings stability and margin improvement in the coming quarters, which is yet to be seen.”