The Star Online: Business

Malaysia's blue chips recover after early fall
RHB Research cuts TRC Synergy fair value to 52 sen
Mittal: High labour, energy costs hurt France

Malaysia's blue chips recover after early fall

Posted: 21 Apr 2013 07:02 PM PDT

KUALA LUMPUR: Malaysia's FBM KLCI rebounded after falling into the red in early trade on Monday, as investors' sentiment was given a boost by the firmer key regional markets led by Japan.

At 9.12am, the KLCI was up 2.45 points to 1,708.73. Turnover was 47.44 million shares valued at RM44.19mil. There were 94 gainers, 80 losers and 117 counters unchanged.

JF Apex Research expects the KLCI to be mildly positive given the optimism in the US but remain below its resistance of 1,717.

Among the blue chips, BAT gained 18 sen to RM62.68, Hong Leong Bank and KL Kepong rose 10 sen to RM14.50 and RM21.76.

Dayang was the top gainer, up 19 sen to RM3.72 with 110,500 shares done. Gas Malaysia rose seven sen to RM2.99 and I-Bhd six sen higher to RM2.26.

However MISC fell 66 sen to RM4.64 with 4.34 million shares done after Petronas failed in its takeover. MISC-CQ lost 13 sen to 21.5 sen.

Public Bank foreign, Genting and UMW fell six sen each to RM16.20, RM16.20 and RM13.26 respectively.

RHB Research cuts TRC Synergy fair value to 52 sen

Posted: 21 Apr 2013 06:32 PM PDT

Published: Monday April 22, 2013 MYT 9:32:00 AM

KUALA LUMPUR: RHB Research Institute is reducing TRC Synergy Bhd's financial year 2013 (FY13) ending Dec 31 earnings forecast by 21% to 52 sen from 65 sen.

It said on Monday the lower earnings were to reflect lower progress and margins from the LRT line extension project on the back of temporary work restrictions following a mishap last month.

"We are downgrading FY13 net profit forecast by 21% largely to reflect lower progress and margins from the RM950mil Package A' main contract of the Kelana Jaya LRT Line extension project," it said.

To recap, construction equipment hoisted by a crane at an LRT extension site at Jalan Lapangan Terbang Subang fell and crushed two cars, killing one person and wounding another.

Mittal: High labour, energy costs hurt France

Posted: 21 Apr 2013 06:29 PM PDT

PARIS: ArcelorMittal chief executive officer Lakshmi Mittal said he regretted the steel giant was having to permanently close two French blast furnaces but high labour and energy costs kept France at a competitive disadvantage.

Mittal, who has drawn fury in France over the closure of the decades-old furnaces, said that ArcelorMittal had every intention of remaining in the country for the long term, but its export potential was limited by constraints on competitiveness.

"To increase the productivity of our sites in France, we need energy costs to come down, like in the United States and Germany," Mittal said in an interview with the weekly Journal du Dimanche. "In France, labour costs are 20% higher than in Spain and labour laws are still too rigid."

A long battle by trade unions to save the furnaces, which employed 629 people, has turned Florange, the last survivor in a once vibrant steel region in northeast France, into a symbol of industrial decline.

Mittal's comments came as President Francois Hollande is close to passing a reform to loosen labour laws, a first step towards curbing industrial layoffs. But his flagship scheme of using corporate tax rebates to kick-start investment is proving slow to take off.

The furnaces at Florange, built to be near a now-defunct mining industry in the region, now make little economic sense compared with others on the north coast fed by imported steel ore.

Even using that slab for Florange's mills, demand has slumped from carmakers in the region hit by flagging sales.

ArcelorMittal is investing 180 million euros (US$235.47mil) in its remaining hot strip and cold-rolling operations at Florange as it develops high-end products for the auto and packaging industries. It is betting on steel demand rising 3% in 2014 as it recovers from a 9% slump in 2012. - Reuters

Kredit: www.thestar.com.my

Ahad, 21 April 2013