Proton models for China

By Star Biz

Proton Holdings Bhd, which is supplying Gen.2 cars to China-based Jinhua Youngman Automobile Group Ltd, is looking at exporting other models to the country in order to capture a larger market.

Head of China business Teo Aeng Kyet said Proton was negotiating with its Chinese partner to introduce different models in China.

“We have an agreement to supply 30,000 Gen.2 to Jinhua Youngman. We are also discussing with our partner to increase the order,” he told a media briefing prior to the second shipment of 348 Gen.2 to China yesterday.

“A total of 1,600 units of Gen.2 is scheduled to be shipped to China by end of next month in order to facilitate Jinhua Youngman’s sales launch programme in China,” he said.

To date, Proton has shipped 408 of the 30,000 units ordered by Jinhua Youngman. Proton will continue to ship 1,500 units of Gen.2 monthly over the next 20 months to fulfil the order.

Proton and Jinhua Youngman, a leading commercial vehicle manufacturer in China with a licence to produce passenger cars, signed an agreement on July 13 under which Proton cars would be re-badged as “Europestar” in China.

Teo said for a start, Proton was selling completely built-up units to Jinhua Youngman.

“Subsequently, we will supply engines and completely knocked-down units (CKD) of several Proton models to Jinhua Youngman for assembly,” he said.

He added that the plant for Proton CKD was expected to begin operating in mid-2008.

Jinhua Youngman quality director Ma Wei Dong said the group had appointed 40 dealers in China to support the launch in January.

He said the group expected to double its sales of Proton cars in China in two to three years. However, Ma declined to elaborate as the negotiation between Jinhua Youngman and Proton was ongoing.

He said the company was confident of Proton cars as all 348 units of Gen.2 in the second shipment had been fully booked ahead of Chinese New Year in February.

“We will consider ordering more cars from Proton in the future. We are satisfied with the quality of the car,” he said adding that currently, car ownership in China is only about 1% of the population.

With the middle-income group expanding, spurred by economic growth that is expected to be above 8% annually, the car market is forecast to expand by 20% to 30% annually in the next few years.

*Everyone is goin to China, do u think our very own national car maker will make it?? haha.. Big Question!

WHat's install for 2008

By Biz Times

INVESTORS should be prepared for unforeseen shocks that could substantially threaten the robustness of the global economy in 2008, HwangDBS Investment Management Bhd (HwangDBS IM) chief executive officer and executive director Teng Chee Wai said.

He said the stage should be set for a weak US dollar to continue into next year, although he believes the Malaysian economy will be able to withstand external shocks including a recession in the US.

In a statement, Teng said the recent financial crisis has the potential to be a blessing in disguise for Asia and may present an opportunity for the region to showcase its resilience.
A dampened US economic outlook should increase the urgency within Asia to step up efforts to shift its growth dependency away from external demand, and to steer fiscal/monetary policies towards boosting demand.

This process should be facilitated by orderly adjustments in their undervalued currencies, stronger balance of payments and improved international liquidity positions.

"With the US consumer encumbered by mortgage financing woes, the rise of the Asian consumer should attract the attention of foreign investors. At the country level, it is the countries where domestic demand has been strongest - such as Singapore and Malaysia - where there has been the largest disconnect between the earnings cycle and the US economic cycle," he said.

HwangDBS IM recently launched its first performance-based fund, the HwangDBS Ascendur RIS 1 (HARIS1).

Targeted at the mass affluent, the unique features of the fund are the lower sales charge or front-end fees of a maximum charge of two per cent as opposed to the four to six per cent characteristic of equity unit trust funds, as well as the performance attribute which allows the manager to levy a performance fee if HARIS1 exceeds the pre-determined minimum return benchmark at eight per cent per annum.

The launch of HARIS1 represents HwangDBS IM's eighth fund for 2007.

Teng said the unique features challenge market convention but are necessary in the increasingly competitive marketplace.

"Managing absolute return mandates or funds is nothing new to HwangDBS IM. When we started out in 2001, it was a surprise to the industry when we set an absolute performance benchmark and included a fee on the performance as an incentive for the manager, in the event of positive performance.

"Since then, such features have become more common but somewhat limited to the management of discretionary mandates. Our main objective in bringing such a fund to the local market is to plug the gap between the mass retail and such services by introducing a product targeted specifically at the mass affluent but with elements of a discretionary mandate.

"At the same time we aim to ensure that investors are able to potentially reap more meaningful returns because of the lower fees," Teng said.

HARIS1 will primarily invest in equity securities of developed and emerging markets globally. It may also invest in fixed income securities of developed markets or debt instruments.

HARIS1 has an approved size of 200 million units priced at RM0.50 per unit. The minimum initial investment sum is set at RM500,000 and the minimum additional investment is RM100,000.

HARIS1 is a mixed securities and growth type fund targeted at medium to long-term investors who are risk tolerant and are seeking higher capital returns on their investments.

Malaysia way ahead in Islamic finance

By The Edge

Malaysia has the capacity to retain its leadership in global Islamic finance despite the emergence of competition from centres such as Hong Kong and Dubai, CIMB Islamic chief executive officer Badlisyah Abdul Ghani said.

He said despite the stiff competition that Malaysia was facing, it was way ahead of other countries in terms of product offerings and its sophistication, having been developing the market for the last 40 years.

Britain, Singapore, Dubai have recently joined the race to offer Islamic banking and investment products to investors, each vying to become the international hub for Islamic finance. Japan recently also expressed interest in launching a government sukuk.

In October, Hong Kong chief executive Donald Tsang had said the city would emulate Malaysia and Singapore as a centre for Islamic finance, in an effort to grab a slice of the thriving market.

It is believed that Hong Kong will be the biggest beneficiary being the gateway to the sought-after market in China.

Badlisyah said, however, the rise of new Islamic markets did not signify that Malaysia would be at the losing end.

“The launch of the Malaysian International Islamic Financial Centre (MIFC) encapsulates all the competitive edge Malaysia has in the Islamic financial market into one brand entity.

“MIFC is second to none as a global hub for Islamic finance as it is still the only country in the world that has the most comprehensive regulatory, legal and Syariah framework for the business. All these other financial centres are effectively new kids on the block,” he told The Edge Financial Daily in an email interview recently.

Badlisyah said: “There is a lot of development being reported on Islamic finance in Hong Kong and Singapore. However, it is still early days for them. Providing double stamp duty exemptions, as being done in the UK, and allowing Murabahah in Singapore is very good progress, but still insufficient to facilitate a robust Islamic finance industry.”

He said Malaysia boasted some of the largest Islamic financial instruments globally, besides being the largest sukuk issuer in the world. Malaysia retains the world’s largest Islamic bond market, accounting for about US$47 billion (RM157.54 billion), representing two-thirds of total Islamic bonds outstanding worldwide.

“The Islamic banking sector in Malaysia is the largest in Asia, and remains the only one in the world that has an active and effective Islamic money market.

“Bursa Malaysia is the largest Islamic stock exchange in the world, with about 86% of shares listed being Syariah-compliant stocks,” he said, adding that Malaysia also had the largest takaful market globally, in which, the biggest Takaful operators were Malaysians.

He, however, said Malaysia needed to develop and grow its brand, to keep its competitiveness as a pioneer and leader in Islamic finance.

“Malaysia needs to continuously and effectively market itself as the hub for investment flows from the Middle East to the Far East, (as it) is the epicentre of the Old Silk Route, and now for the New Silk Route,” he said. Badlisyah added that Malaysia needed to develop MIFC as a global brand.

Additionally, Badlisyah said a lot more needed to be done as Islamic finance had much potential that was still untapped. He said: “There is room for a lot of financial centres in the global Islamic financial market, just as the conventional market has many financial centres.”

“As a global player in the Islamic financial market, we are excited with the advent of the UK, Hong Kong and Singapore as effective financial centres or platforms in undertaking Islamic banking and finance. We hope they would become as successful as Malaysia so that the market can grow globally,” he added.

*Being a leading aka role model Islamic Country, i really think that there are huge potential for Islamic Finance to grow big in Malaysia.

Confident of 6% growth??

By Star Biz

Malaysia is confident that it can achieve its projected target of economic growth of between 6% and 6.5% next year, Second Finance Minister Tan Sri Nor Mohamed Yakcop said.

He said that based on the growth momentum in the third quarter of this year, the country could achieve a growth rate of higher than 6% in 2008, while the projected inflation rate should be at 2%.

Nor Mohamed said the projected positive growth of the country's economic performance was based on the healthy developments in the investment sector and the increased dividends given to investors by several major funds such as Amanah Saham Berhad Bumiputra (ASB), Employees Provident Fund (EPF), Tabung Haji and Lembaga Tabung Angkatan Tentera (LTAT). The higher dividends and returns by the funds reflected the confidence shown in Bursa Malaysia and the economy, he told reporters at Parliament House on Wednesday.

The Bursa index gained an impressive 1385 points on Tuesday with a market value of more than one trillion ringgit, he noted.

"There will be challenges for next year, such as the sub-prime issue in the United States which had not tapered off yet.

"But we have met more serious challenges before this,” he said.

Nor Mohamed said the government is also confident of reducing the economic deficit to 3.1% in 2008 from 3.2% this year.

*Personally i think the economy wouldn't be so stable next year! But we'll c!

KL shares down for 5th straight day

By Biz Times

MALAYSIAN share prices extended their losses for the fifth consecutive day today amid an overnight slump on Wall Street and continued concerns over the US economy.

At close, the Kuala Lumpur Composite Index (KLCI) declined 6.16 points or 0.44 per cent to 1,385.45 after opening 3.79 points lower at 1,387.82.

Property, construction and finance counters led the fall in the local bourse today, which touched an intra-day day low of 1,382.44, or down 9.17 points, dealers said.

There were some eleventh hour bargain-hunting in the lower liners but not sufficient to lift the overall bearish market, said one dealer.

On Wall Street, the Dow Jones Index fell for the second consecutive day overnight by 172.65 points to 13,167.2. Last Friday, it dropped 178 points.

The latest sell-off was triggered by renewed concern on the US economic growth on the back of uncertainty over the magnitude of subprime losses, financial impact on mortgage lenders, repricing of credit risk, sky-high crude oil price and weaker consumer spending, according to SBB Securities.

“Given the high degree of uncertainty, we doubt investors would stray too far from the sidelines, at least for now. The local bourse will likely take its cue from the US and regional market,” it said in its research report.

Immediate support and resistance has been put at 1,370 and 1,400 respectively.

The industrial and technology indices bucked the market trend today.
The Industrial Index jumped 14.77 points to 2,898.35 and the Technology Index perked 0.10 of a point to 2318. The Finance Index, meanwhile, fell 59.92 points to 10,556.6.

The FBMEmas dropped 46.42 points to 9,396.3 and the FBM30 went down 45.82 points to 8,945.94.

The FBM2BRD shed 9.44 points to 6,618.24 and the FBM-MDQ was 30.25 points lower at 5,872.34. Decliners led advancers by 440 to 319 while 351 counters were unchanged, 302 untraded and 26 suspended.

Volume amounted to 779.655 million shares worth RM1.611 billion, up from 719.414 million shares worth RM1.411 billion traded yesterday.

*Wait wait and wait! Den its time to go in! hehe..

Lower sales charges on Unit Trust

By Star Biz

The investing public and unit trust agents will benefit from reduced service charges for unit trust investments funded by Employees Provident Fund (EPF) contributions.

The EPF recently announced that service charge (including commissions) by unit trust companies for investments by EPF members would be capped at 3% from 6% starting Jan 1.

Deputy Domestic Trade and Consumer Affairs Minister Datuk S. Veerasingam said that if the charges were reduced, people would invest more and this would mean an increase in sales for unit trust agents.

”By taking 6%, the investment will set back the EPF contributor by a large amount.

“For example, if the investment was RM100,000, RM6,000 would be taken by the unit trust companies, reducing the investments to RM94,000.

“But at 3%, the invested amount will be RM97,000,” he said.

Federation of Malaysian Unit Trust Managers (FMUTM) president, Tunku Datuk Yaacob Tunku Abdullah said the ruling would hurt profits.

He felt that the 3% rate would cut their income by half.

Overall, unit trust companies have performed well this year, with RM155bil in funds as at the end of September, an increase of 28% from last year’s RM121bil.

Fomca secretary-general Muhammad Shaani Abdullah said that it was a good move by EPF, adding that in line with this, Bank Negara should also reduce the service charges for individuals using their own funds to buy unit trusts.

*Good News, lower sales charge means more investment and more units/returns the investor can garner! hehe..

Economy may grow faster on rise of biodiesel sector

By Biz Times

THE Malaysian economy is expected to achieve more rapid growth with the rise of the biodiesel industry, Deputy Prime Minister Datuk Seri Najib Tun Razak said today.

He said worldwide demand for biodiesel is expected to increase significantly in the near future, providing a boost for Malaysia as the major producer of palm oil.

“Worldwide demand for biodiesel is expected to explode and this will ensure that the price (of palm oil) is at a satisfactory and stable level,” Najib said.

“So we don’t have worry about the palm oil price falling to a low level as it did before,” he told reporters after officiating the biodiesel factory of Mission Biotechnologies Sdn Bhd at Kuantan port.

Also present were Pahang Menteri Besar Datuk Seri Adnan Yaakob, Mission Biotechnologies’ chairman Tan Sri Razak Ramli and Mission Biofuels Ltd Australia’s chairman Dario Amara.

Najib said analysts have forecast that the palm oil price, now at RM2,900 per tonne, will not fall below the RM2,400 per tonne level with expansion of the industry.

On competition from other countries, he said Malaysia has a major edge, especially in the supply of palm oil.

In his speech, Najib said the government plans to increase palm oil output by another 30 per cent by 2010 to cater to export demand as well as demand from biodiesel producers.

He said Malaysia is now producing 15 million tonnes per annum and the demand for biodiesel is expected to triple to 30 million tonnes by 2010.

*The KLCI closed 0.92% or 13.16 points lower at 1,410.56. I think Growth will also be slower over the next two quarters

KL Composite Index hit another all-time high of 1,440.39 points

By Star Biz

THE benchmark KL Composite Index hit another all-time high of 1,440.39 points on Thursday.

While this means that blue-chip counters have done well, many mid-cap, small-cap and fledgling stocks are still languishing in the market, attracting little investor interest.

This lack of a broad-based rally has been attributed mainly to retail participation having dried up in the market or is still there but pretty cautious, depending on who you talk with.

The culprit for this is widely felt to be the drop in the market from 1,283.47 points on Feb 23 to 1,110.69 on March 5, and the fall from 1,392.18 points on July 24 to 1,192.55 on Aug 17, sparked by the subprime woes in the US that caught out many retail investors.

To jog the memory, February's drop was sparked by the widespread but short-lived Shanghai contagion.

Thus, retail investors have become understandably cautious. They could be “locked up” in stale bulls from the February or July market dips and did not have the funds to participate in the market.

“Too low to sell out or not high enough to cash out,” said a chartist.

The market needs to attract retail investors, which is essential to a healthy stock market and healthy rallies, but they will not be back until it is worthwhile and less risky to do so.

MIMB Investment Bank head of research Pong Teng Siew believes that apart from some losing money during the two major dips this year, retail investors are becoming more perceptive of the market than before.

“Retail investors are more perceptive now and they can see market rally is more focused, so they are investing more cautiously,” he said.

Pong said he would ideally like to see a gradual and predictable rise in prices of counters rather than them shooting up in a short time maybe past valuations and then falling suddenly.

“I hate to see investors lose money. I would like counters to have sustainable growth in a predictable way.”

He also said the stock market should not rise in a way that was out of step with economic growth and beyond what could be sustained by domestic investors.

In the current market, Pong suggested a stock picking on key counters, as the rally was at present much more focused.

A broad-based rally was always preferable to a focused rally as it benefited a wider base of investors and encouraged participation in the market, he added.

Another analyst said for there to be a broad-based rally in the market, there had to be liquidity both from foreign and domestic sources, but no one was sure when this would happen.

With the US market “climbing a wall of worry” that included subprime issues, high oil prices and worrying economic data, liquidity was unlikely to flow into global markets in the short to medium term, he said.

There is also the issue of investors everywhere finding it better not to have a position before the upcoming Dec 11 Federal Reserve committee meeting.

Malaysian plantation, oil and gas stocks shine

By Biz Times

SHARES on Bursa Malaysia ended higher yesterday as buying of plantation and oil and gas key heavyweights led the benchmark Kuala Lumpur Composite Index (KLCI) to close at an all-time high of 1,427.77, up 11.96 points or 0.84 per cent, a dealer said.

MIMB Investment Bank head of research Pong Teng Siew said the market rally was led by blue-chips like Sime Darby and IOI Corp.

"Obviously the re-listing of Sime Darby had provided a fresh impetus for the market and gave an upside to the KLCI," he noted.

He pointed out that as Malaysia is more commodity-driven, the local bourse had even outperformed some of its regional peers.

"Malaysia is also fortunate that at a time when some parts of the world are facing slower growth, government spending here has increased," said Pong.

The Finance Index surged 76.79 points to 10,913.6 and the Industrial Index rose 40 points to 2,960.77.

Of the FTSE-BM Index series, the FBMEmas rose 68.58 points to 9,633.07 and the FBM30, which comprises the top 30 companies by full market capitalisation, advanced 46.44 points to 9,156.56.

The FBM-MDQ went up by 75.31 points to 6,048.95 and FBM2BRD gained 42.53 points to 6,798.02.

SJ Securities analyst Phua Kwee Hock said the rise in crude oil prices to US$88.61 (RM255.95) yesterday had rallied the plantation stocks which in turn led the KLCI to touch a new high.

He expects the market to trade between 1,418 and 1,436 today.

Actives included Bio Osmo which fell 4.5 sen to 28.5 sen, FTEC Resources gained one sen to 37 sen, Supercomal Technologies inched up half sen to 15.5 sen and Hubline gained 1.5 sen to 62 sen. KBES went up five sen to 42 sen and Time Dotcom increased 4.5 sen to 80.5 sen.

Among blue chips, Sime Darby rose 30 sen to RM11.30, Maybank went up 10 sen to RM11.70, Tenaga Nasional was flat at RM9.90, Telekom Malaysia fell 30 sen to RM11.40 and IOI Corp increased 20 sen to RM6.85.

Meanwhile, KLCI futures contracts on Bursa Malaysia Derivatives ended higher yesterday on the back of a firmer cash market.

At the close, spot December rose 29 points to 1,445.0, January 2008 futures gained 31 points to 1,443.0, March 2008 added 29.5 points to 1,431.5 and faraway June 2008 futures climbed 28 points to 1,412.0.

Volume rose to 9,107 lots from Tuesday's 5,950 lots and open interest went up to 32,029 contracts from 31,096 previously.

*The KLCI surge again today! Its 5mins to closing! I personally think oil and gas are the shares that give good returns in the long term and short term investment, as the world is thirst for this commodity.!

Public Mutual funds

By The Edge

Public Bank’s wholly-owned subsidiary, Public Mutual declared distributions for eight of its funds. The gross distributions declared were for the financial year ended Nov 30, 2007.

Public Mutual declared a gross distribution of 10 sen per unit for Public Ittikal Fund, 5.5 sen per unit for Public Dividend Select Fund and 5 sen per unit for Public Islamic Equity Fund.

The three funds topped the gross distribution list for the total eight funds.

Public Mutual chairman Tan Sri Teh Hong Piow said Public Ittikal Fund, Public Dividend Select Fund and Public Islamic Equity Fund had generated a one-year return of 37.43%, 36.63% and 40.04% respectively for the period ended Nov 16, 2007, according to the Edge-Lipper fund table dated Nov 26, 2007.

As for Public Far-East Select Fund and Public Regional Sector Fund, both funds have generated a one-year return of 43.19% and 35.42% respectively for the same period.

Both funds have outperformed their benchmarks of 33.1% and 29.53% respectively for the same period.

Launched in Nov, 2006, Public Far-East Dividend Fund has generated a six-month return of 11.69% for the same period ended Nov 16, 2007.

Public Balanced Fund had also outperformed its benchmark of 21.11% with a one-year return of 31.71% for the same period. Meanwhile, Public Islamic Balanced Fund registered a one-year return of 23.46% for the same period.

Public Mutual currently manages 54 funds for more than 1.3 million account holders. As at Oct 31, 2007, the total net asset value of the funds managed was RM26.7 billion.

Is there anymore opportunity to invest in those 3funds? (Public Ittikal Fund, Public Dividend Select Fund and Public Islamic Equity Fund) Since there are mass media reporting how good is those funds are! If you are really interested, get a copy of personal money from any newsstand, bookstore and etc to analyse yourself.

Mobile Internet is expected to grow in Asia

By Star Biz

INTERNET company Yahoo! Inc is bullish about its mobile Internet and search services in Asia, as demand for it is expected to grow at an accelerated pace.

Yahoo! Connected Life Asia vice-president and general manager David Ko said that as mobile devices advanced technologically and carriers improved networks and data transfer rates, so would the adoption of mobile Internet and search services.

“We believe most people in Asia are likely to access the Internet through their (mobile) phones first, rather than computers,” he told StarBiz at Mobile Asia Congress in Macau recently.

Ko said Malaysia's mobile Internet access devices market, according to IDC Malaysia, was expected to grow 61% and accounted for nearly 45% of total Internet access devices this year.

“This growth will only encourage the need for relevant mobile information and Yahoo! is well positioned in this space,” he said.

When asked on the take up of Yahoo!'s mobile Internet services in Malaysia, he said, without disclosing numbers, that there was “good usage patterns for Yahoo! Go downloads” and that search usage was increasing steadily.

Yahoo! Go is an application that brings together services that includes email, search and address book, which allow people to stay connected whenever and wherever they are.

The company, Ko said had also fundamentally changed the way consumers' access and use Internet content and services on mobiles devices when it launched Yahoo! oneSearch earlier this year.

Yahoo! oneSearch is designed for mobile devices, delivering results directly on the first screen and thereby removing the need for consumers to navigate through a sea of links to other websites to find the information they want.

“Search is a service mobile operators want to provide to their customers. We currently have the ability to reach over 200 million consumers globally with oneSearch and this number is set to grow, especially in Asia Pacific, since we've just announced several more partnerships at Mobile Asia Congress,” he said.

The partnership deals unveiled last month included three Indian carriers (Aircel Ltd, BPL Mobile and BSNL) Malaysian carrier DiGi Telecommunications Sdn Bhd, Indonesian carriers Hutch 3, Indosat and Excelcom, PCCW Mobile HK Ltd of Hong Kong and Singapore's Starhub Ltd.

These deals, which build on six earlier Asian carrier partnerships announced in June, have expanded Yahoo!'s reach in Asia Pacific to 16 oneSearch operator partnerships.

With the critical mass of mobile Internet users, Ko said marketers and advertisers could extend and further strengthen their online advertising strategies by tapping mobile advertising.

“Building a compelling user experience is a pre-requisite for monetisation,” he said, adding that Yahoo!'s aim was to provide users a robust and compelling user experience regardless of network and device.

Ko also pointed out that Malaysia's online advertising growth was expected to outpace the global market.

“It is growing at a promising rate and we expect it to follow suit like the US, where it has exceeded 5% of total ad spending,” he said, citing ABI Research's forecast that global mobile marketing and advertising was expected to grow six fold to US$19bil by 2011 from an estimated US$3bil by end 2007.

So what do u guys think? There should be opportunity to expand some new gadget to the market!

*The KLCI did surge 17 points today! We shall observe until Friday.

Is KLCI going to regain next week?

By Biz Times

STRONG gains on Wall Street and the trading of the world's largest plantation group, Sime Darby Bhd, drove the Kuala Lumpur Composite Index (KLCI) sharply higher yesterday, briefly breaching its major psychological resistance of 1,400.

The KLCI gapped up in the opening trade on Monday before closing at 1,364.37, giving a day-on-day gain of 10.82 points, or 0.80 per cent.

The KLCI staged a late rebound on Tuesday to close at 1,364.99, giving a day-on-day gain of 0.62 point, or 0.05 per cent.

Sentiment was firm on Wednesday as the KLCI closed at 1,366.58 points, giving a day-on-day gain of 1.59 points, or 0.12 per cent.

The next day, share continued to rise pushing the KLCI to close at 1,374.32, giving a day-on-day gain of 7.74 points, or 0.57 per cent.

Trading of Sime Darby led the KLCI yesterday to briefly breached its major psychological resistance of 1,400. The KLCI finished the week at 1,396.98, recording a day-on-day gain of 22.66 points, or 1.65 per cent.

The KLCI rebounded to close at 1,396.98 yesterday, posting a week-on-week gain of 43.43 points, or 3.21 per cent.

The FTSE Bursa Malaysia Second Board Index fell 131.68 points, or 1.93 per cent, to 6,699.01, while the FTSE Bursa Malaysia Mesdaq Index lost 269.09 points, or 4.35 per cent, to 5,912.80 level.

Following are the readings of some of its technical indicators.

Moving Averages: The KLCI stayed above its 10-, 20-, 30-, 50-, 100- and 2000-day moving averages after the sharp technical rebound yesterday.

Momentum Index: Its short-term momentum index staged a successful re-penetration of its neutral reference line.

On Balance Volume: Its short-term OBV trend continued to stay above its 10-day exponential moving averages.

Relative Strength Index: Its 14-day RSI stood at the 59.57 per cent level yesterday.

Outlook

The KLCI touched its intra-week high of 1,408.32 yesterday, breaching this column's envisaged resistance zone (1,357 to 1,387 levels). Chartwise, the KLCI rose after the successful re-test of its immediate downside support (See KLCI's monthly chart - A3:A4).

The KLCI's rise bounced off the support of its immediate parallel trendline support (See KLCI's daily chart - B3:B4) towards its immediate overhead resistance (B5:B6).

The KLCI's daily fast Mmoving Average Convergence/Divergence (MACD) indicator staged a "golden cross" of its daily slow MACD yesterday.

Its monthly fast MACD continued to stay above its monthly slow MACD.

The KLCI's 14-day RSI stayed at 59.57 per cent level yesterday. Its 14-week and 14-month RSI stayed at 59.67 and 75.05 per cent levels respectively.

Following the gains on Wall Street and regional markets, the KLCI has managed to regain its momentum to stage another technical re-challenge of its major psychological resistance of 1,400.

The KLCI will gyrate around its major psychological resistance/support of 1,400.

Next week, the KLCI's overhead resistance hovers between 1,400 and 1,434 points, while its downside support lies between 1,359 ans 1,393 points.

The subject expressed above is based purely on technical analysis and opinions of the writer. It is not a solicitation to buy or sell.

Petrol Prices increase in Malaysia

By Star Biz

The Malaysian Institute of Economic Research (Mier) says there is a possibility of a 30 to 40 sen increase in the price of petrol after the general elections due to the rising cost of subsidising fuel.

So far this year, Petroliam Nasional Bhd had to cough up about RM35bil in petroleum and gas subsidies.

The Government last raised prices at the pump in early 2006, when it was raised by 30 sen to RM1.92 per litre, at a time when crude oil was trading at US$60 a barrel. The crude oil price surpassed US$99 per barrel in overnight electronic trading on the Nymex recently.

Mier executive director Professor Datuk Dr Mohamed Ariff Abdul Kareem said the Government should cut the subsidies sooner rather than later due to the high cost.

“The amount to be cut will be up to the Government and it will most likely happen after the elections,” he told reporters on the sidelines of the National Economic Outlook Conference 2008/2009 yesterday.

Ariff said consumers would be comfortable with a hike of up to 40 sen.

Inflation, which might reach 3% next year on the back of fuel, toll and electricity tariff increases, might be dampened by an increase in revenue and a stronger ringgit, he said.

“With higher revenue, the Government may not pass on the entire burden,” he said, adding that the US dollar was expected to hit RM3 or lower next year, partly due to the diversification of foreign exchange reserves by China and the Middle East.

Ariff said that next year would see a slower growth rate for the global economy due to residue problems from the US subprime crisis and high crude oil prices but it would pick up again in 2009.

“We’ll see a rebalancing of the global economy in 2008 while growth in 2009 will correspond to 2007,” he said, adding that the Government’s target of 6% gross domestic product (GDP) growth next year was too high given the circumstances.

Mier had estimated this year’s GDP growth at 5.7% and for 2008, 5.4%.

Ariff said the targeted growth rate of 5.8% during the Ninth Malaysia Plan implementation period was a realistic target compared with the potential growth rate of 6.5% for the country.

Is happening again and is coming to us very soon! When will inflation happen to our salary or bonus?

'Money back' if your flight is delayed

By Business Times

AIRASIA Bhd will soon start refunding passengers for delayed flights.

The airline's chief executive officer Datuk Tony Fernandes said giving refunds for delays was part of AirAsia's plan to improve the low-cost airline's service.

"If we're late and we cause you inconvenience, we'll give you your money back," Fernandes said, adding that the airline hopes to implement this within the next two months.

Fernandes said that AirAsia is currently working out the mechanics to ensure the programme is not abused.

Airline executives, however, said the plan was to refund passengers who were delayed at least three hours or more.

Once implemented, AirAsia would be the first airline in Asia to do this.

"We're showing that we put our money where our mouth is ... that we are confident about our product and are constantly innovating it," he told reporters after an event yesterday.

He said the low-cost airline is able to do this now because of its new Airbus fleet "which is making a lot of difference".

Another service enhancement in the pipeline is a web product, through which customers will be able to order a wide variety of food that they can collect at the terminal and take on board the plane, Fernandes said.

He said AirAsia is currently negotiating with airport operator Malaysia Airports Holdings Bhd (MAHB) to take over an outlet at the low-cost terminal where customers can collect their food. It also plans to start a food trolley service.

On a different matter, he said AirAsia has requested for low-cost terminals to be set up in Kuching and Penang.

"We've talked to MAHB and I think their idea is not to build a separate terminal, but to try and build an extension - a wing - from the existing terminal," he said.

AirAsia would have no objections to this as long as the charges are low and the operations are simple, he added.

Fernandes, who is eyeing new routes in China, also hopes to be able to start a second flight to Shenzen by October given the overwhelming demand.

Public Mutual is "Most Outstanding Islamic Fund Manager"

By The Edge

Public Bank Bhd's unit, Public Mutual won the Most Outstanding Islamic Fund Manager award at the recent Kuala Lumpur Islamic Finance Forum's Islamic Finance Awards 2007 ceremony.

The award was presented by Second FInance Minister Tan Sri Nor Mohamed Yakcop Public Mutual’s chairman Tan Sri Dr Teh Hong Piow during the award presentation ceremony on Nov 20, 2007 at the Nikko Hotel Kuala Lumpur.

Public Mutual said on Nov 26 the objective of the awards was to honour and appreciate efforts of the institutions and organisations that have given significant contribution in developing the industry.

"Winning this award not only reinforces our leadership position in the industry but also affirms our commitment to excellence. This achievement is a testimony of Public Mutual’s collective dedication and commitment to continuously deliver value to our investors,” Teh said.

The Kuala Lumpur Islamic Finance Forum was organised by the Centre for Research and Training together with Halal Industry Development Corporation (HDC), and in collaboration with Dow Jones Islamic Market Indexes , the International Institute of Islamic Finance and Messrs Hisham, Sobri & Kadir.

Public Mutual said the Islamic fund industry in Malaysia had grown rapidly and remained highly competitive. From 2001 to Oct 31, 2007, Public Mutual Islamic funds’ total net asset value has grown by 2500% from RM300 million in 2001 to RM7.9 billion as at end October 2007.

The industry’s Islamic funds total net asset value grew by 615% from RM2.0 billion to RM14.3 billion over the same period. Public Mutual is the leader in the private Islamic fund industry with a market share of more than 55% as at end October 2007.

Public Mutual currently manages 54 funds for more than 1.35 million accountholders. As at Oct 31, 2007, the total net asset value of the funds managed by the company was RM26.7 billion.

Been considering the Public Ittikal Fund. What about you guys? Do some research..!!

Ringgit to strengthen next week

By BERNAMA

The ringgit is likely to rise against the US dollar next week amid concerns over the US subprime crisis and volatility in global stock markets, dealers said.

One of the dealers said the ringgit is likely to appreciate, moving between 3.33 and 3.35 to the dollar next week on negative news over the US market which have caused investors to remain on the sidelines.

“Investors may want to gain more profits from the dollar’s weakness because they are still not confident about the US situation,” she said.

According to the dealer, the local currency market is expected to remain positive on the possibility that the US Federal Reserve will cut interest rates again next month.

“A further interest rate cut may save the US economy but it will also further weaken its currency as investors turn to higher yielding instruments. So, it’s good news for the ringgit,” she said.

Another dealer said the movement of the local unit will also depend on the local stock market performance as funds coming mostly from foreigners will impact the ringgit.

On a week-to-week basis, the ringgit was firmer against US dollar at 3.3580/3630 compared with 3.3770/3800 last Friday.

The local unit depreciated against the Singapore dollar at 2.3282/3333 from last Friday’s close of 2.3245/3283 and also declined against the Japanese yen at 3.1084/1136 from 3.0644/0685.

The ringgit was weaker against the British pound at 6.9326/9439 from 6.8965/9033 and also against the euro at 4.9907/9988 from 4.9297/9355 previously.

Privatisation of Magnum gets investors fired up

By the Star Biz

Multi-Purpose Holdings Bhd's (MPHB) proposal to take its 55.54% subsidiary Magnum Corp Bhd private has gotten the investing community crunching the numbers to hazard a guess on how attractive the deal will be for the diversified group.

While details on the deal are still being ironed out, analysts are especially excited about MPHB's cash position on completion of the exercise.

“It is an interesting capital repayment exercise,” an analyst told StarBiz.

Under the proposed deal, MPHB together with private equity firm CVC Asia Pacific Ltd will form a special purpose vehicle (SPV) to take Magnum private at RM3.45 per share.

MPHB and CVC will hold 51% and 49% equity interest respectively in the SPV that will own Magnum. The SPV is expected to pay out some RM4.9bil to take Magnum private - RM2.7bil to MPHB and the remaining RM2.2bil to other shareholders.

The proposed privatisation exercise, valued at RM4.9bil, will be funded by interest-free loans provided by the SPV and borrowings by Magnum.

The deal would see Magnum becoming a wholly owned subsidiary of MPHB and then be delisted from the stock exchange. Currently, of MPHB's 55.54% stake in Magnum, 6% is for shares held for MPHB's exchangeable bonds, which can be exchanged for Magnum shares at RM3.04 per share.

Analysts said since the conversion price is lower than the offer price of RM3.45, bondholders who converted the bonds into Magnum shares and accepted the offer stood to profit from the price difference.

In an interview with StarBiz, MPHB managing director Datuk Surin Upatkoon said at the current stage, the idea was to implement the selective capital reduction exercise.

“When we hold 100% in Magnum, we will sell the company to the SPV. That part of the deal is subject to final negotiations; this is as far as we can say, at this stage,” he said, adding that the company would “leave it” to minority shareholders to decide.

He said at RM3.45, the numbers forecast operator was valued at a price to earnings ratio of 21.5 times and book value of 4.2 times based on its balance sheet as of Sept 30.

“We want to do a fair deal and are doing it via two steps. First, we have to take Magnum private, then CVC will come into play.''

Upatkoon said the takeover offer provided an opportunity for investors to cash out as the gaming industry was entering a mature cycle. “If not for a partner, we would probably not privatise. It involves a lot of money,” he said.

“We have to borrow RM2.2bil to pay (to privatise) and displace the minority shareholders. It will be a combination of capital and debts but we are not ready to discuss this as we are still negotiating the terms with CVC.

“CVC will have to put in some money but it is going directly into the SPV and not to MPHB,” Upatkoon said.

“Basically, there will be money flowing into MPHB but how much will depend on the levels of equity and borrowings,” he added.

Analysts said if Magnum opted for a debt to equity ratio of 50:50, and with fresh capital from CVC, MPHB might be able to get a capital repayment of about RM1bil from Magnum.

On the valuation of MPHB after the exercise, Upatkoon said: “Everything will look much better. We will have direct cash flow. The most immediate is the RM300mil in exchangeable bonds if shareholders choose to convert those bonds.”

“Obviously, to do this deal, there must be some upside for MPHB,” he added.

Upatkoon said over the past five years, the company had been looking at ways to re-engineer and restructure operations to “further strengthen” its earnings and to ensure growth.

“This is going to be our best year yet. Just look at our results for the nine months just ended.''

For the nine months ended Sept 30, the company made a net profit of RM339mil on sales of RM2.4bil compared with a net profit of RM104.4mil on revenue of RM160.5mil for the same period last year.

Investors to take profit on Petronas Gas

BY The Edge Daily

KENANGA Investment Bank Research advises investors to take profit on Petronas Gas Bhd as all potential re-rating catalysts have been factored into the share price and investors are only exposed to downside risk.

The research house maintained its target price of RM9.70 but downgraded its recommendation from Hold to Sell.

“The 20 times price-to-earnings ratio (PER) valuations are expensive for Petronas Gas when its earnings growth is not expected to increase in the future,” it said.

It said Petronas Gas’ net profit of RM539.4 million for the first half ended Sept 30, 2007 was in line with expectations, comprising 51% of its full financial year forecast (FY ending March 31, 2008) but only 46% of consensus estimates.

Revenue and pre-tax profit grew by 6% and 22% but net profit declined by 2% due to higher effective tax rate as almost all its tax allowances were utilised in FY07.

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Shell and Citibank credit card (Malaysia)

Brand new credit cards has been launched with the partnership of Citibank and Shell just for consumers to use it for petrol purchases, but of course you can still use it for other purchases!

What's the benefits of owing this card?
Simple, it is helping consumers cut down on fuel costs and will offer rebates of up to 5% on fuel purchases at Shell stations and up to 1.5% for other purchases at Shell and selected merchant outlets such as Jusco, Giant and etc.

“To help lessen the burden of Malaysian motorists, Citibank and Shell have came up with a real way to save on fuel costs in the form of the Shell Citibank credit card” said Citibank country business manager Michellina Triwardhany at the launch of the card yesterday.

What is more to offer?
During the promotional period customers can get up to 10% rebate for each litre of Shell fuel as well as up to 3% back from all other purchases at any outlet. What are you waiting for?













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How Richard Branson

Mr.Branson has incorporated five criteria when starting up a business or enter a joint venture. A product or service cannot hope to bare the Virgin label unless it meets these conditions:

• It must have high quality
• It must be innovative
• It must provide god value for the money
• It must be challenge to existing alternatives
• It must have sense of fun

With these core value, Mr.Branson has entered one business after another in which he perceived a customer set that was being undeserved by a fat and complacent dominant player.

"There's no point going into a business unless you shake up the whole industry"

by Richard Branson

There are many gem which can be found from his interview, shall post it later.

Grand Openning Ceremony

This blog will features investment articles from various business groups and investor's experience in the stock market, Unit trust, Mutual Funds, Property and many interesting new product or services in the market! To have starter let's have some word of advise:

"Time is our most precious assets, we should invest it wisely"

by Michael Levy