The Star Online: Business
The Star Online: Business |
- Dijaya, Ivory rise on Penang property tie-up
- Asian markets on the rise
- Eurozone debt crisis likely to hit Asian growth
| Dijaya, Ivory rise on Penang property tie-up Posted: 14 Nov 2011 06:08 PM PST PETALING JAYA: Dijaya Corp Bhd and Ivory Properties Group Bhd shares were up after the companies announced a tie-up for a mixed-property project with a gross development value of RM10bil in Bayan Mutiara, Penang. Dijaya rose 3.6%, or 5 sen, to RM1.44 while its warrants advanced 6.5%, or 3 sen, to 49 sen. Ivory Properties added 7%, or 7 sen, to RM1.07. Dubbed Penang World City, the project will be undertaken by joint-venture vehicle Tropicana Ivory Sdn Bhd (TISB), which is 49% owned by Dijaya and 51% by Ivory Properties. TISB was set up on Oct 14. Penang World City will be built on a 102.56 acre site, of which 35 acres is to be reclaimed. It will comprise residential units, a shopping mall, office suites, office towers, a hotel, retail spaces and an open mall with a boulevard. The land is being bought for RM1.08bil from state-owned Penang Development Corp. Bayan Mutiara is a new development hub in the eastern part of the Tun Dr Lim Chong Eu Expressway and is in the vicinity of Sungai Nibong. Ivory Properties has proposed to finance the project via a renounceable rights issue of 186,000,000 new ordinary shares of 50 sen each as well as 186,000,000 new free detachable warrants. Dijaya, meanwhile, will extend financial assistance to TISB in the form of shareholder advances, guarantee, indemnity or collateral of up to RM525.4mil, or 49% of the total consideration of the development land. Analysts contacted by StarBiz have a positive view of the project, citing its prime location as a major plus factor. "Land in Penang is scarce and the outlook for housing in the Bayan Mutiara area is booming," an analyst said. "It is not easy to get land in Penang for that price. Property developers prefer Johor Baru because land is much cheaper there." Another local bank-backed analyst said although he liked the land, he considered it pricey. At RM240 per sq ft, it was comparably higher than IJM Land Bhd's land further north of the island that was purchased at RM50 per sq ft. IJM Land has a 150.24-acre mixed-development called Light Waterfront Penang. The analyst also said the upside for Ivory Properties' stock would be capped at around 30% as its share base would be diluted by two to three times following the rights issue. He added that the choice of office towers in the development mix was surprising as the demand for office space in Penang was tepid. Nonetheless, he said the project was still at its early stage and was subject to change. "We haven't seen a detailed breakdown of the development components yet but the residential portion is likely to be larger," he said. Penang World City is scheduled to be completed in eight years. Work on the first phase is scheduled to begin at the end of next year. Full content generated by Get Full RSS. |
| Posted: 14 Nov 2011 06:07 PM PST PETALING JAYA: Asian markets started the week higher, with penny stocks continuing their bullish run on Bursa Malaysia. These stocks and their warrants dominated the most heavily traded list, swooping in exponential gains. One counter that has continued to draw attention is SYF Resources Bhd, which was issued an Unusual Market Activity query by the stock exchange regulator yesterday. But the stock surged another 37%, or 25 sen, to close at a high of 92 sen, reaching peaks never seen since mid-July 2007, with 102.61 million shares changing hands. It had continued with its uptrend after closing at 65.5 sen on Friday, up 14% from its close of 57.5 sen the day before. In its reply to the Bursa Malaysia query, SYF said it was currently in the final stage of negotiation to develop properties on a joint venture with the landowners who were mainly related parties, of which the details would be released immediately upon conclusion of the negotiations and the execution of the agreement. Previously SYF was labelled a Practice Note 1 (PN1) company in May last year after failing to make interest payments amounting to RM2.19mil. It had said the default was due to lower demand for its products. On Oct 25, SYF said its status as a PN1 company had been lifted upon the completion of several corporate proposals. SYF's principal business activities are the planting of rubber trees for commercial harvesting, the logging of plantation wood, saw milling, treatment of timber, and the manufacture of furniture parts and components. SYF's trading pattern mirrors that of timber manufacturer Harvest Court Industries Bhd, whose share price had jumped from 8.5 sen to RM2.13 in barely four weeks. The counter is still showing no signs of slowing down, with its share price soaring another 48 sen yesterday. Both the warrants of SYF and Harvest hit its limit-up yesterday, both surging 30 sen and 42 sen to 64.5 sen and RM1.81 respectively. DPS Resources Bhd was also in hot pursuit of the bulls, surging 17.5 sen or a whopping 129% in a single day to 31 sen. "The current run-up in prices just doesn't respect the fundamentals of the company. "Investors who dip into these penny stocks should trade cautiously, as the bubble can burst any time without the strong support of a financially sound company," said a trader. Asian markets started the week higher, amid optimism that new governments in Greece and Italy would take major steps to tackle the Europe's troubles, reviving hopes that the eurozone crisis will be contained. The local bourse's benchmark FBM KLCI closed yesterday up 0.69%, or 10.12 points, with gains led by bluechip counters, namely, IOI Corporation, Tenaga Nasional Bhd and DiGi. Elsewhere in the region, Japan's Nikkei 225 Stock Average rose 1.05%, South Korea's Kospi Composite Index jumped 2.11% and Singapore's Straits Times Index added 1.4%, while Hong Kong's Hang Seng index advanced 1.94%. Full content generated by Get Full RSS. |
| Eurozone debt crisis likely to hit Asian growth Posted: 14 Nov 2011 06:02 PM PST MUMBAI: The eurozone debt crisis will hit growth in Asia's developing economies this year and next as the key trade zone cuts back export orders, a senior Asian Development Bank (ADB) official said. In September, the bank forecast developing Asia, excluding Japan, Australia and New Zealand, would grow at a rate of 7.5% in both 2011 and 2012. But that estimate may now be unrealistic given the lack of resolution to the eurozone's debt problems, said ADB managing director-general Rajat Nag. "Seven-and-a-half per cent (growth) is probably going to turn out to be on the higher side given what's happened since our forecasts and now," Nag told reporters in Mumbai. Speaking on the sidelines of the India Economic Summit, Nag said it was inevitable Europe's fiscal woes would hurt export-dependent Asia, which ships a large chunk of its orders to the eurozone. "If euro-growth is compromised," there would be a negative effect on Asia, Nag said. "How much will depend on how soon the eurozone crisis works itself out," he added. "But certainly there are very significant worries and significant clouds on the horizon on this." The Manila-based ADB's Asian Development Outlook Update 2011 in September indicated slower-than-expected growth this year and next, as key trading partners reduce orders due to worries about the global economy. The 7.5% forecast is lower than the bank's April estimate of 7.8% growth in 2011 and 7.7% next year. Major drivers China and India are expected to grow this year at a rate of 9.3% and 7.9% respectively and 9.1% and 8.3% in 2012. Nag said that while the overall rate of growth in the region was still "healthy", the bank's earlier assessment had been based on the "assumption of orderly resolution" of the eurozone debt crisis. Moves that replaced the leaders of Italy and Greece in recent days, as well as austerity measures that have been put before the parliaments of both countries, were encouraging, Nag said. But he added that the crisis reinforced how Asian economies need to be more aggressive in implementing institutional reforms as well as developing intra-regional trade. - AFP Full content generated by Get Full RSS. |
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