Market News 6/5/06
Boustead Holdings Bhd said it received a contract from the Armed Forces Fund Board to design, construct, equip, commission and maintain an army hospital for RM119.5m (US$33m).
BP Plastics Holdings Bhd said net income rose 8.6% to RM5.3m in the 1Q ended March 31 from a year earlier. Sales gained 25% to RM48.1m. Trading in BP Plastics has been suspended, a stock exchange filing showed today.
JobStreet Corp. Bhd said it agreed to form a joint venture with Daffodil Computers Ltd. to offer its services in Bangladesh. JobStreet will merge Daffodil's JobsBD Web site with its own system and operate JobStreet Bangladesh, it said in an e-mailed statement. Jobstreet operates recruitment Web sites for India, Malaysia, Singapore, the Philippines and Indonesia.
Kwantas Corp said it received regulatory approval to sell as much as RM220m in Islamic securities to repay existing debt and for working capital.
Lion Forest Industries Bhd said there is ``no basis'' for a Sun newspaper report that Lion group Chairman William Cheng may take the company private. It was responding to a stock exchange query.
Tenaga Nasional Bhd: A final draft recommendation on Tenaga's power rate increase will be presented to the Malaysian Cabinet for approval in 2-weeks time, Bernama reported, citing Energy, Water and Communications Minister Lim Keng Yaik.
Domestic banks are bracing themselves for greater pressure on margins and loan growth as foreign banks move to strengthen their market presence, including increasing their branches, this year. Analysts said the intensified competition would speed up the next round of mergers among local banks as foreign banks attempt to take a bigger share of the domestic banking market. OCBC Bank (M) Bhd announced on Wednesday that it would be setting up four branches this year, with two in the Klang Valley, one in Sarawak and one in Penang. HSBC Bank Malaysia Bhd and Standard Chartered Bank Malaysia had also earlier announced that
they would be increasing the number of their branches. The foreign banks’ move follows Bank Negara’s decision in December to allow locally incorporated foreign banks to set up four additional branches each. The move will allow the foreign banks to draw in more retail deposits, which are seen as a major feature of pulling in loans as well.
The Court of Appeal yesterday ruled that the removal of 9 directors of QSR Brands Bhd at an EGM last Sept 20 was valid. It also ruled that the adjournment by Tan Sri Nik Ibrahim Kamil Nik Ahmad Kamil of the EGM was invalid, but the continuation of it under the chairmanship of Johari was. With Johari chairing the meeting at the EGM, shareholders voted in favour of the resolutions for the removal of the nine directors. The nine were Nik Ibrahim, Sarbjit Singh Sarban Singh, Yoong Nim Chor, Choong Show Tong, Mohd Harris Pardi, Nurolamin Abas, Umar Abdul Hamid, Datuk Izhar Sulaiman and Datuk Seri Diraja Syed Razlan Tuanku Syed Putra Jamalullail. The EGM was requisitioned by OSK Nominees (Tempatan) Sdn Bhd and AmSec Nominees (Tempatan) Sdn Bhd. OSK Nominees was acting as nominee for Wisdom Innovative Technology Sdn Bhd, which is linked to Datuk Ishak Ismail’s family. Johari initiated the court action against QSR
after the directors rejected the outcome of the vote. In a statement, Johari said as a result of the court decisions, the directors of QSR currently consisted of himself, Datuk Dr Ridzuan Akil, Datuk Karim Marzuki, Datuk Hilmi Abdul Rashid, Datuk Seri Syed Amir Abidin Tuanku Syed Putra Jamalullail and Toh Chun Wah. Johari said all subsequent acts by the directors who were removed at the EGM may be invalid, including the appointment of new directors and removal of four directors.
Sumatec Resources Bhd's subsidiary, Semua Shipping Sdn Bhd, has entered into a Memorandum of Agreement with Thai Original Tankers Co Ltd to sell its 2,183 deadweight tonne oil tanker for US$1.22m (about RM4.4m) cash. It said the disposal, which was expected to be complete this month-end, was expected to result in a capital gain of about RM1.08m. “The disposal is part of Sumatec's plan to phase out old single hull oil tanker in accordance with the International Maritime Organisation requirements,” the company said on May 4.
Linkaran Trans Kota Holdings Bhd (Litrak) has set its entitlement date on May 25 for its cash distribution of up 25 sen per share or up to RM124.1m to its shareholders. In a statement to Bursa Malaysia on May 4, Litrak said entitled shareholders would be paid on May 31. On April 28, the High Court of Malaya confirmed the special resolution of Litrak for the reduction of RM124.1m of its paid-up capital by cancelling out 124.1m shares.
Rexit Bhd's share price closed 10.6% or 19 sen higher to RM1.98 on May 4 in active trade despite a query from Bursa Securities Malaysia Bhd. There were 2.66m shares done at prices ranging from RM1.79 to RM1.99. Bursa Securities had issued a statement at 10.33am to query the company over the sharp increase in price in its securities recently. Rexit, in its reply after market close, said it was in preliminary negotiations with a number of multinational corporations keen to form strategic alliances to jointly market Rexit's proprietary software to the regional market.
“Due to the confidentiality of the current negotiations and as the terms have yet to be finalised, Rexit is not in a position to disclose any additional information on the ongoing negotiations,” it said. Rexit also said other factors announced previously which contributed to the positive performance in price of Rexit shares were its unaudited net profit of RM 4.80 million for the nine-month financial period ended March 31, 2006. It had also proposed a bonus issue of 47.33m new 10 sen shares on a 1-for-3 basis. It had also recently announced a proposed joint venture to set up PT Rexit Indonesia to market Rexit's proprietary software and related IT services to the insurance and financial sectors in Indonesia.
Poly Tower Ventures Bhd, which was queried by Bursa Malaysia Securities Bhd on May 4 over the high volume of trading in its securities recently, closed marginally lower. In its reply, Poly Towers said there was no material or recent development in its business and affairs that had not been previously disclosed.
Green Packet Bhd and DiGi Telecommunications Sdn Bhd have teamed up on a joint enterprise mobility solution that provides mobile professionals with easy access to enterprise applications and communications capabilities. The solution, which integrates Green Packet’s SONaccess Mobile Enterprise Solution with DiGi’s high-speed data packages, was ideal for enterprises with highly mobile workforces.