The Star Online: Business

Plantations lead decliners on weaker CPO outlook
Malaysia's KLCI falls in early trade, MISC rebounds
M’sian firms urged to venture into Latin America, Caribbean

Plantations lead decliners on weaker CPO outlook

Posted: 22 Apr 2013 07:15 PM PDT

Published: Tuesday April 23, 2013 MYT 10:16:00 AM

KUALA LUMPUR: Shares of plantation stocks fell in early trade on Tuesday after the weaker crude palm oil (CPO) prices dampened investors' sentiment.

At 10am, the FBM KLCI was down 5.93 points to 1,700.75. Turnover was 100.57 million shares valued at RM134mil. There were 96 gainers, 198 losers and 206 counters unchanged.

KL Kepong fell the most, down 32 sen to RM21.32, Sarawak Oil Palms fell 20 sen to RM5.50 while Far East was down eight sen to RM7.80.

On Monday, CPO for third month delivery closed at RM2,255 per tonne, the lowest since mid-December 2012.

Reuters reported the volatility in commodities markets overall and losses in soybeans weighed, with investors also wary ahead of slowing export demand.

Exports of Malaysian palm oil products for April 1-20 fell 6.4% to 864,206 tonnes from 922,987 tonnes shipped during March 1-20, cargo surveyor Societe Generale de Surveillance said on Monday.

Malaysia's KLCI falls in early trade, MISC rebounds

Posted: 22 Apr 2013 06:44 PM PDT

KUALA LUMPUR: Malaysia's blue chips fell in early trade on Tuesday but managed to stay above the key 1,700 level as investors stayed on the sidelines.

At 9.26am, the FBM KLCI was down 2.39 points to 1,704.29. Turnover was 47.57 million shares valued at RM57.69mil. There were 105 gainers, 96 losers and 134 counters unchanged.

Maybank KE Research said the KLCI's resistance levels of 1,706 and 1,716 would cap market gains, whilst obvious support areas were at 1,688 and 1,702.

Reuters reported Asian shares steadied on Tuesday, supported by overnight gains in global equities, but were capped ahead of China's first economic report for the second quarter due later in the session.

News overnight of weaker-than-expected U.S. existing home sales added to worries over the growth prospects of growth in the U.S. economy, focusing even more scrutiny on the China data.

At Bursa Malaysia, BAT fell 14 sen to RM62.36, MMHE five sen to RM3.92 while RHB Cap shed three sen to RM8.40 and RHBCap-HB was down nine sen to six sen.

SOP was the top loser, sliding 25 sen to RM5.45.

Destini was the most active, with 9.21 million shares done, adding one sen to 36.5 sen after it was removed from the Practice Note 17.

MISC managed to stage a mild rebound, up six sen to RM4.63 in active trade after the selldown on Monday seemed to have eased.

Maybank rose two sen to RM9.79 in active trade while UMW gained 10 sen to RM13.50.

M’sian firms urged to venture into Latin America, Caribbean

Posted: 22 Apr 2013 06:20 PM PDT

KUALA LUMPUR: The Malaysia External Trade Development Corporation (Matrade) is urging Malaysian companies with strong business linkages with China to explore partnership options with their Chinese partners to venture into Latin American countries and the Caribbean.

In a statement yesterday, Matrade said the Inter-American Development Bank (IDB) had last month announced a China Co-financing Fund for Latin America and the Caribbean, another initiative by China to increase bilateral trade with these two regions.

It said the fund, aimed at supporting public and private sector projects that promote sustainable economic growth in the region, was the first of its kind established by China and a multilateral development bank.

"The proposed US$2bil (RM6.09bil) contribution by China would be used to co-finance a total of up to US$500mil of IDB public-sector loans and up to US$1.5bil for loans made by the bank to private-sector entities," it said.

It said prior to this fund, the IDB had approved US$153mil in loans for the establishment of a new equity investment platform for Latin America and the Caribbean in partnership with the Export-Import Bank of China (China EXIM).

"This platform is expected to mobilise as much as US$1.8bil from a diversified pool of investors, including Chinese investors, to fund equity investments that would support economic and financial integration between Latin America, the Caribbean and China," it said.

According to Malaysia's Trade Commissioner in Mexico, Remee Yaakub, China became a member of the IDB, the largest regional development bank and the main source of multilateral finance for the Latin America and Caribbean region, in January 2009. He said China was among the 22 non-borrowing members of IDB together with the United States, Canada, Japan, Israel, the Republic of Korea, the People's Republic of China and 16 European countries that included France, Germany, Italy, Spain and the United Kingdom. "Non-borrowing members benefit from the procurement standpoint in that only suppliers from member states could provide goods and services for IDB-financed projects," he said.

Trade between China and Latin America has increased at an annual average rate of 25% since 2000, reaching an estimated US$236bil in 2011. The southern Latin countries, together with Peru and Venezuela, have enjoyed booming exports to China, with Brazil, Chile and Peru registering bilateral trade surpluses. — Bernama

Kredit: www.thestar.com.my

Isnin, 22 April 2013