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KLCI shrugs off early losses, MMHE, UMW in focus
RHB downgrades KNM to Sell, lower fair value of 42 sen
RHB Research maintains Buy on Alam Maritim, FV RM1.65

KLCI shrugs off early losses, MMHE, UMW in focus

Posted: 04 Jun 2013 06:49 PM PDT

KUALA LUMPUR: Malaysia's blue chips extended their gains on Wednesday, underpinned by some buying of MMHE and UMW, which lifted the FBM KLCI out of its early losses.

At 9.25am, the KLCI was up 0.07 of a point to 1,776.81, after rising 10.41 points on Tuesday. Turnover was 329.39 million shares valued at RM204.14mil. There were 177 gainers, 139 losers and 186 counters unchanged.

Reuters reported Asian res were steady on Wednesday as investors marked time before key U.S. jobs data later this week amid speculation over when the US Federal Reserve's would begin scaling down its massive stimulus programme.

US stocks ended lower on Tuesday, resuming their recent decline as investors sold growth-oriented sectors on worries over a shift in the Fed's current policy, while the dollar was underpinned by the potential for less monetary stimulus.

Hwang DBS Vickers Research said the overnight fall on Wall Street, where the key indices fell between 0.5% and 0.6% at the closing bell, could temper buying interest in Malaysian equities.

It cited that apart from worries of the Fed slowing its bond-purchasing programme, the widened trade deficit for the US in April 2013, there was continued uncertainty in the world economy.

"The local bourse (Malaysian equities) could see challenges with its immediate resistance level standing at 1,785," HDBSVR said.

KLCC was the top gainer, adding 20 sen to RM7.25, MMHE 17 sen to RM3.63 while UMW added 16 sen to RM14.68. Petronas Gas advanced 14 sen to RM21.34.

Leong Fuat, which made its debut on the Main Market, rose 3.5 sen to 63.5 sen. It was the second most active counter with 34.95 million shares done.

MAS was the most active with 123.66 million shares done. It fell two sen to 32.5 sen.

RHB downgrades KNM to Sell, lower fair value of 42 sen

Posted: 04 Jun 2013 06:57 PM PDT

Published: Wednesday June 5, 2013 MYT 9:32:00 AM
Updated: Wednesday June 5, 2013 MYT 9:57:43 AM

KUALA LUMPUR: RHB Research is downgrading KNM Group Bhd (KNM) to "Sell" from "Neutral" with a reduced fair value of 42 sen from 69 sen in line with its lower earnings projection and uncertainties in KNM's prospects.

RHB Research said on Wednesday its unit KNM Project Services had sold its entire 80% stake in Energy Park Investments for 800 pound sterling (RM3,790) to explore an alternative corporate structure and to finance its 80MW waste-to-energy plant in Peterborough, England.

"While the announcement does not mean that KNM will abort the Peterborough project, we believe there could be potential delays as funding would likely be an issue. KNM's balance sheet will be stretched if it was to undertake the project," it said.

RHB Research lowered its estimates due to KNM's weak prospects for its order book replenishment and weak operational capabilities to execute its projects.

"We lower our financial year (FY) 2013 and 2014 revenue forecasts by 15.4% and 15.5% respectively. Consequently, we reduce our earnings projections by 24.8% for FY2013 and 20.1% for FY2014," it said.

RHB Research maintains Buy on Alam Maritim, FV RM1.65

Posted: 04 Jun 2013 06:59 PM PDT

KUALA LUMPUR: RHB Research is maintaining its "Buy" call for Alam Maritim Resources Bhd with an unchanged fair value at RM1.65 due to its success in securing contract awards.

"The stock's key re-rating catalysts are more contract awards for its subsea division, and success in its bid for contracts in the Pan-Malaysia transportation and installation project which is under its offshore installation and construction division," it said on Wednesday.

RHB Research said its unit received a RM71.5mil contract to provide one anchor handling tug supply vessel.

"With the win, we estimate that some 80% of Alam Maritim's vessels are currently on long term charters, which will boost to the company's earnings visibility for the next four years," it said.

The research house said Alam Maritim's earning are expected to be supported by its dominanti offshore support vessel divisions, underpinned by steadier utilisation and charter rates.

"Also, the company's subsea division is no longer a liability, having secured a three-year contract from Talisman earlier this year.

"We also see further upside in its subsea division, as we understand that other production-sharing contractors such as Shell, ExxonMobil and Murphy are likely to award their inspection, repair and maintenance jobs very soon," it said.

Kredit: www.thestar.com.my

Selasa, 4 Jun 2013