The Star Online: Business

TRC Synergy climbs to highest in 2 months
UOA Development crosses RM2, highest since August 2011
China iron ore demand to rise 50 million tonnes

TRC Synergy climbs to highest in 2 months

Posted: 25 Mar 2013 06:55 PM PDT

Published: Tuesday March 26, 2013 MYT 9:56:00 AM

KUALA LUMPUR: Shares of TRC Synergy Bhd rose to 57 sen in early trade on Tuesday, the highest since Jan 29 as trading interest picked up after its proposed property joint venture with Syarikat Prasarana Negara Bhd (SPNB).

At 9.38am, it was up 2.5 sen to 56.5 sen. There were 196,200 shares done at prices ranging from 56 sen to 57 sen.

The FBM KLCI rose 5.55 points to 1,649.44. Turnover was 99.58 million shares valued at RM124.32mil. There were 142 gainers, 83 losers and 156 counters unchanged.

PublicInvest Research maintained its outperform recommendation on TRC with a 67 sen target price, pegged at 10 times of FY13 EPS.

"We still like TRC given that it is a good proxy to the Klang Valley MRT project, exposure in SCORE projects and strong balance sheet," it said.

On Monday, TRC Synergy teamed up with SPNB to develop 49,776 sq metres of land in Subang for a commercial-residential project with a gross development value (GDV) of RM687.59mil.

The company said the proposed joint land development would comprise of a mixed development on the land which comprises of basement parking, retail podium with car parks, LRT users car parks, office units, hotel, residential apartments, retail and food court and SOHO.

UOA Development crosses RM2, highest since August 2011

Posted: 25 Mar 2013 06:36 PM PDT

Published: Tuesday March 26, 2013 MYT 9:37:00 AM

KUALA LUMPUR: Shares of property developer UOA Development crossed the RM2 level in early trade on Tuesday, the first time since August 2011.

At 9.20am, it was up one sen to RM2. There were 131,600 shares traded at prices ranging from RM1.97 to RM2.

The FBM KLCI was up 5.67 points to 1,649.56. Turnover was 67.63 million shares valued at RM64.81mil. There were 115 gainers, 52 losers and 136 counters unchanged.

CIMB Equities Research, had in its February report on the FY2012 results of UOA Development, said they were very close to its forecast and 4% above consensus.

It said the group chalked up RM1.71bil in new sales, beating its target by a hefty 71%. We believe it is on track to repeat this performance in 2013.

"We tweak our EPS forecasts while raising RNAV from RM2.81 to RM2.88 for housekeeping purposes. This raises our target price which is based on a 30% discount to RNAV," said the research house.

China iron ore demand to rise 50 million tonnes

Posted: 25 Mar 2013 06:36 PM PDT

BEIJING: China's iron ore demand is expected to rise by 50 million tonnes in 2013, but it will not be enough to soak up a supply glut on the world market, the country's top economic planning agency said.

China's own iron ore supply will rise by 20 million tonnes and the world's top three miners are expected to raise capacity by a combined 100 million tonnes this year, the National Development and Reform Commission said on its website (www.ndrc.gov.cn).

The excess supply is likely to pressure iron ore prices that have already fallen 15% from this year's peak amid slower steel demand in China, the world's biggest consumer and producer of the construction material.

Global miners Vale of Brazil, as well as Australia's BHP Billiton and Rio Tinto, have banked on sustained increases in iron ore demand from China to justify massive expansion plans.

China imported a record 743.55 million tonnes of iron ore in 2012, up 8.4% on the year, but total steel output rose just 3.1% to 716.5 million tonnes, in step with a slower economy.

The influential planning agency forecasts a 30-million tonne increase in China's crude steel production this year, but said the increase in steel demand from China and elsewhere was not likely to be enough to absorb the big increases in iron ore supplies at home and abroad over 2013.

"Looking at the trends, oversupply in iron ore is unavoidable," it said.

The industry forecasts total global supplies to rise around 300 million tonnes from this year through 2015, the agency added.

Rio Tinto and BHP Billiton last week warned of volatile markets and softer iron ore prices as they stick to expansion plans while China's steel production growth slows.

Investment bank Goldman Sachs cut its iron ore price forecasts because of the supply surplus and slower Chinese steel output, expecting iron ore to average US$80 a tonne by 2015.

Iron ore stood at US$135.30 per tonne on Friday, having peaked at US$158.90 last month.

Iron ore demand was also likely to be dragged down by low economic growth in developed countries, and there was little room for big steel production increases in developing countries such as India, the planning agency said.

However, it said the "concentration" in the iron ore market would allow the big global miners to delay projects and suppress output to regulate supplies, and it would take some time before the glut was fully reflected in the market. - Reuters

Kredit: www.thestar.com.my

Isnin, 25 Mac 2013