The Star Online: Business

Pos Malaysia at 18-month high on dividend hopes
Malaysia Airlines buying 36 new turboprop aircraft
In new "cliff" bid, Obama seeks $1.2 trillion in revenue: source

Pos Malaysia at 18-month high on dividend hopes

Posted: 17 Dec 2012 07:19 PM PST

KUALA LUMPUR: Shares of Pos Malaysia Bhd rose as much as 13 sen to RM3.38 on Tuesday, the highest since June 2011, extending its gains from the previous day as buying interest was underpinned by expectations of special dividends.

At 11.04am, it was up 10 sen to RM3.35. There were 587,700 shares done at prices ranging from RM3.31 to RM3.38.

The FBM KLCI rose 8.58 points to 1,657.16. Turnover was 261.75 million shares valued at RM346.60mil. There were 242 gainers, 169 losers and 257 counters unchanged.

Hwang DBS Vickers Research (HDBSVR) had on Monday said it was maintaining a Buy on Pos Malaysia with a target price of RM4.60 based on sum-of-parts metric.

The research house said as at March 31, 2012, Pos had Section 108 tax credits of RM317mil (expiring end-2013) which can be paid as dividends (59 sen a share).

"We feel it may just do that, as its major shareholder, DRB-HICOM, is on a strategic expansion/restructuring which requires stronger cashflows and its net gearing has risen to 0.65 times after acquiring Proton.

"And Pos is a cash cow, supported by RM1.24 a share net cash by end FY14F. The timing could be sooner rather than later as Proton's ongoing restructuring plans will require additional capital expenditure," said HDBSVR.

Malaysia Airlines buying 36 new turboprop aircraft

Posted: 17 Dec 2012 06:57 PM PST

Published: Tuesday December 18, 2012 MYT 10:58:00 AM

KUALA LUMPUR: Malaysia Airlines (MAS) is expanding its fleet of turboprop aircraft with the purchase of 36 new planes.

MAS said on Tuesday that of the 36 planes, 16 would be for MASwings and 20 would be allocated to Firefly. MASwings, which is Malaysia's first commuter airline, focuses on Sarawak and Sabah and provides connections within the two states.

Firefly operates out of the Penang and Subang hubs and flies to various points within Malaysia, Southern Thailand, Singapore and Sumatera.

In new "cliff" bid, Obama seeks $1.2 trillion in revenue: source

Posted: 17 Dec 2012 06:03 PM PST

WASHINGTON: In a major counteroffer that moves the White House and congressional Republicans closer to resolving the "fiscal cliff" standoff, President Barack Obama is seeking $1.2 trillion from higher tax revenues, including increased rates on those earning more than $400,000 a year, a source familiar with the negotiations said on Monday.

In exchange, the president is willing to agree to $1.22 trillion in spending reductions, including some cuts achieved by changing the way cost of living adjustments are made to Social Security retirement benefits and other programs.

"We view this as a good offer that shows we have met the Republicans more than halfway on spending and halfway on revenues," the source said.

The offer asks for Congress to increase the national borrowing ceiling for two years using a parliamentary procedure proposed by Senate Republican leader Mitch McConnell.

The offer comes as the president and House of Representatives Speaker John Boehner seek to iron out differences in an effort to stop automatic tax increases and spending cuts from going into effect early next year. Analysts have warned that that abrupt shock could knock the economy back into recession.

The president's latest offer shows him willing to give on an item that some of his supporters had sought to protect -- linking Social Security benefit increases to the chained consumer price index, a step that would lead to lower payments.

However, the president's proposal would seek to protect those on whom that change would fall hardest, the source said.

The president's offer also would seek to provide the sluggish economy a boost by extending unemployment benefits and increasing infrastructure spending. - Reuters

Kredit: www.thestar.com.my

Isnin, 17 Disember 2012