The Malaysian Insider :: Business

Kenanga cuts Mah Sing target price

Tue, 22 May 2012 03:16:07 GMT

KUALA LUMPUR, May 22 — Kenanga Research cut its target price for property developer Mah Sing Group to RM2.00 from RM2.18 on an outlook for higher net gearing after acquiring more landbank. Kenanga said it was neutral on Mah Sing’s recent RM333.2 million acquisition of 412.4 acres of land on the outskirts of Kuala Lumpur. “Although the 0.6x net ...

AmInvestment starts Yeo Hiap Seng with buy

Tue, 22 May 2012 03:11:19 GMT

KUALA LUMPUR, May 22 — The research arm of AmInvestment Bank started coverage on drinks manufacturer Yeo Hiap Seng Bhd with a buy call and a target price of RM3.90 a share thanks to its expansion into Indonesia, Southeast Asia’s largest economy. AmInvestment said Yeo Hiap Seng was a dominant food & beverage company, with about 80 per cent of group ...

Analyst call May 22

Tue, 22 May 2012 02:15:53 GMT

KUALA LUMPUR, May 22 — This is a selection of morning calls by local research houses for the day. HwangDBS Vickers Market Preview Wall Street staged a technical rebound last night. Its key equity indices jumped between 1.1 per cent and 2.5 per cent at the closing bell amid news that China would stimulate its economy if necessary, while European ...

Apple still dominates world’s top brands, study shows

Tue, 22 May 2012 01:40:56 GMT

NEW YORK, May 22 — Apple has maintained its place as the world’s most valuable brand over the past year, leading a group of technology-related companies that dominate the top 10, according to a study published today. The iPhone and iPad maker has boosted its brand value by 19 per cent in the past year to US$183 billion (RM572.7 billion), or 37 per ...

Asian markets shrug off risk, may regret it

Tue, 22 May 2012 01:17:05 GMT

SINGAPORE, May 22 — After a three-week selloff in financial markets, measures of risk show investors in Asia are assuming a return to stability, and with a level of confidence that could be horribly misplaced. Asset classes from commodities to equities are moving in lockstep to a degree not seen since March 2010, while currencies such as the yen ...

Australia’s Qantas to split business into two

Tue, 22 May 2012 01:06:39 GMT

SYDNEY, May 22 — Australia’s top airline, Qantas Airways, said today its international and domestic business will be managed as separate businesses with their own chief executive, with earnings to be reported separately from July 1. Qantas said in a stock exchange filing that the changes were part of a five-year turnaround plan aimed at shrinking ...

Wall Street rebounds, but investors dump Facebook

Tue, 22 May 2012 00:05:01 GMT

NEW YORK, May 22 — Stocks rose more than 1 per cent yesterday, with the S&P 500 snapping a six-day losing streak in a rebound from equities’ biggest weekly drop in almost six months, but Facebook slumped in its second session after a disappointing debut. Tech shares were among the day’s biggest gainers, with an S&P sector index surging 2.8 per ...

Facebook sinks as Nasdaq scrambles to square trades

Mon, 21 May 2012 15:46:36 GMT

NEW YORK, May 21 – Facebook shares sank today in the first day of trading without the full support of the company’s underwriters, leaving some investors down 25 per cent from where they were Friday afternoon. Facebook’s debut was beset by problems, so much so that Nasdaq said today it was changing its IPO procedures. That may comfort companies ...

Austerity snuffs out Ryanair’s profit growth run

Mon, 21 May 2012 13:40:32 GMT

DUBLIN, May 21 – Ryanair, Europe’s biggest budget airline, warned high fuel costs and a worsening economic outlook in Europe meant profit would slip by up to 20 per cent in the coming year, the first fall in four years. The Dublin-based airline, famous for its no-frills service, posted a record annual profit on higher fares for the year to March, ...

SE Asia Stocks: Most higher; Thailand falls on energy selling

Mon, 21 May 2012 11:14:49 GMT

BANGKOK, May 21 – Southeast Asian stock markets were broadly higher today on buying by investors after sell-offs in recent days, but gains were limited by worries over Europe’s debt crisis. Vietnamese stocks closed 3 per cent higher, with its 14-day relative strength index (RSI) at 41.5, bouncing from 30.7 on Friday. A level of 30 or lower ...

Taiwan export orders contract again, outlook weak

Mon, 21 May 2012 09:59:38 GMT

TAIPEI, May 21 – Orders for Taiwan’s exports contracted in April for a second month, against most forecasts for a small rise, pointing to a rocky road ahead for Asia’s exporters as Europe’s woes and a slowdown in China cut demand. Taiwan’s export orders, an indication of the strength of Asian exports and of demand for tech products globally, fell ...

Formula One to start pre-marketing US$3b Singapore IPO: Source

Mon, 21 May 2012 09:01:00 GMT

HONG KONG, May 21 – Motor racing business Formula One will start pre-marketing for its up to US$3 billion (RM9.41 billion) Singapore initial public offering on May 22 after receiving approval from the city’s stock exchange for the deal, a source with direct knowledge of the plans said today. The company is seeking to raise between US$2.5 billion ...

Markets regain ground but still edgy over Greece

Mon, 21 May 2012 06:47:36 GMT

TOKYO, May 21 — Asian markets recovered some ground today on value hunting after last week’s heavy losses, but investors remained wary over the euro zone despite world leaders calling for Greece to stay in the monetary union and for Europe to balance austerity with growth. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.5 per ...

Brent rises towards US$108 as China eyes growth stimulus

Mon, 21 May 2012 06:09:05 GMT

SINGAPORE, May 21 — Brent crude rose towards US$108 (RM338) today, recovering from a 2012 low, on hopes that China could take new steps to stimulate growth and lift fuel demand at the world’s second-largest oil user, although concerns about the euro zone crisis capped gains. China’s premier yesterday called for additional efforts to support ...

Chinese buyers default on coal shipments, say traders

Mon, 21 May 2012 05:30:53 GMT

SHANGHAI, May 21 — Chinese traders have defaulted on some thermal coal contracts following a drop in prices over the past month, traders said today, providing more evidence that a slowdown in the world’s second-largest economy is hitting the appetite for commodities. The coal defaults also come after sources at steel mills and traders said last ...

Thai Q1 GDP surges, economy bouncing back from floods

Mon, 21 May 2012 03:41:23 GMT

BANGKOK, May 21 — Thailand’s economy expanded a robust 11.0 per cent in the first quarter from the previous three months, rebounding from last year’s severe flooding, and strong full-year growth is expected due to a jump in consumption and investment after the disaster. The January-March expansion — the highest since Thailand started measuring ...

Analyst call May 21

Mon, 21 May 2012 02:12:21 GMT

KUALA LUMPUR, May 21 — This is a selection of morning calls by local research houses for the day. HwangDBS Vickers Market Preview The selling may not be over yet for Asian equities following Wall Street’s extended losses on Friday. Major US equity indices lost between 0.6 per cent and 1.2 per cent at the closing bell dragged down by continued ...

China’s towering metal stockpiles cast economic shadow

Mon, 21 May 2012 00:54:07 GMT

QINGDAO, China, May 21 — When metals warehouses in top consumer China are so full that workers start stockpiling iron ore in granaries and copper in car parks, you know the global economy could be in trouble. At Qingdao port, home to one of China’s largest iron ore terminals, hundreds of mounds of iron ore, each as tall as a three-storey building, ...

Facebook stock seen facing crucial week after modest debut

Mon, 21 May 2012 00:19:13 GMT

NEW YORK, May 21 — Newly issued shares in Facebook Inc may have a hard time this week if lead underwriter Morgan Stanley stops supporting the stock and managers lower down in the IPO book who were hoping for an early surge decide to get out before going underwater. Facebook on Friday sold 421 million shares of stock in a deal that valued the ...

Germany’s Schaeuble says up to Greece to avoid euro exit

Sun, 20 May 2012 10:18:09 GMT

BERLIN, May 20 — German Finance Minister Wolfgang Schaeuble said Greece’s exit from the euro zone could definitely be prevented but that it was up to Greece to abide by its agreements. “European solidarity isn’t a one-way street,” Schaeuble told Bild am Sonntag newspaper. “You can’t have one without the other. If anyone in Greece thinks that’s the ...

Buyers beware in London property rush

Sun, 20 May 2012 09:20:31 GMT

LONDON, May 20 — When Hong Kong businessman Mr He paid a £35,000 (RM175,000) deposit on a four-bedroom apartment in Britain, he believed it was a 40-minute walk from central London, his lawyer says. In fact it was a 40-minute journey by high-speed train. The £350,000 home was in Lincolnshire, eastern England. He sued the developer for ...

World leaders back Greece, vow to combat financial turmoil

Sun, 20 May 2012 00:48:43 GMT

CAMP DAVID, May 20 — World leaders backed keeping Greece in the euro zone on Saturday and vowed to take all steps necessary to combat financial turmoil while revitalising a global economy increasingly threatened by Europe's debt crisis. A summit of the G8 leading industrialized nations came down solidly in favour of a push to balance European ...

Global Markets Weekahead: Euro zone policy action becoming critical

Sat, 19 May 2012 14:27:56 GMT

LONDON, May 19 — The now familiar European cycle of crisis followed by political action, temporary respite, then another crisis enters that crucial second stage next week when leaders of the 27-member European Union seek solutions in Brussels. Investors will also be concerned with how hard the crisis is hitting the euro economy, with flash ...

Historic Facebook debut falls flat

Sat, 19 May 2012 10:33:14 GMT

SAN FRANCISCO, May 19 — The historic initial public offering of Facebook Inc did not go as planned yesterday, as the social networking company’s sky-high valuation combined with trading glitches left the stock languishing near its offering price at the market close. Facebook shares began trading late yesterday morning and opened 11 per cent above ...

Samsung Galaxy S3: Close to 10 million pre-ordered

Sat, 19 May 2012 02:37:35 GMT

SEOUL, May 19 — In the span of just a few days, Samsung has already received nine million pre-orders for its new smartphone, the Galaxy S3, according to an article in Korea Economic Daily published yesterday. Currently about a hundred carriers around the world, including T-Mobile and AT&T in the US and Vodafone in the UK are offering preorders for ...

Precious gold jumps, heads for biggest 2-day gain since October

Sat, 19 May 2012 01:03:03 GMT

NEW YORK, May 19 — Gold rose more than 1 per cent yesterday, on track for its largest two-day gain since October, boosted by investors’ consolidation of positions ahead of the weekend and a stronger euro. The second day of gains helped bolster confidence, which had been shaken by gold’s fall earlier this week to a four-month low at US$1,527 ...

US stocks: Wall Street falls before G8 leaders meet on euro zone

Sat, 19 May 2012 00:05:03 GMT

NEW YORK, May 19 — US stocks fell yesterday as investors turned cautious before leaders of the Group of Eight nations met about the euro zone debt crisis and after a shaky market debut by Facebook Inc. The S&P 500 dipped below the 1,300 level, seen as a key support point, for the first time since mid-January, before the meeting by the leaders of ...

World stocks fall into negative territory for year

Fri, 18 May 2012 23:47:06 GMT

NEW YORK, May 19 — World stocks erased the year’s gains yesterday as investors fled risky investments for safe-haven assets on concerns about the euro zone‘s deepening debt woes, while US stocks lost ground after the market debut of social network Facebook failed to lift optimism. Brent crude briefly slipped below US$107 (RM334.91) per barrel to ...

Historic Facebook IPO marred by trading glitches

Fri, 18 May 2012 22:56:31 GMT

SAN FRANCISCO, May 19 — For a company that is dramatically upending business strategies and social relationships around the world, Facebook Inc made a surprisingly modest debut on the Nasdaq yesterday as a sky-high valuation and trading glitches capped the stock’s rise. In late trading, Facebook shares were only a few cents above the company’s ...

Facebook shares rise 11pc in frenzied trade

Fri, 18 May 2012 16:01:29 GMT

NEW YORK, May 18 — Facebook Inc shares opened 11 per cent higher today, after the pioneering online social network raised as much as US$18.4 billion (RM57.59 billion) in one of the biggest initial public offerings in US history. After a delay in the opening print that drove up anxiety levels among traders and onlookers outside the Nasdaq, the ...

Banks’ rising bad loans add to Spanish troubles

Fri, 18 May 2012 13:27:30 GMT

MADRID, May 18 − Spanish bank bad loans rose in March to their highest in 18 years, figures from the Bank of Spain showed today, underscoring the problems facing the government as it attempts to clean up the sector and get its economy back on track. The Bank of Spain said bad loans rose to 8.37 per cent of the banks’ outstanding loans, the highest ...

US stocks: Wall Street to rise after steep decline as Facebook debuts

Fri, 18 May 2012 11:59:09 GMT

NEW YORK, May 18 − US stocks were set to open higher today but major indexes were still setting up to close their worst week of the year, while Facebook’s market debut could help lift battered investor sentiment. The S&P has fallen 6.7 per cent so far in May, and while volatility is expected to continue, some analysts were forecasting a near-term ...

Britain’s FTSE at 6-month low on fears over Europe

Fri, 18 May 2012 11:01:46 GMT

LONDON, May 18 — Britain’s top share index fell to its lowest level since late November today, as growing fears over the Greek and Spanish economies hit markets and heavyweight financial and commodities stocks. The blue-chip FTSE 100 index was down by 42.44 points, or 0.8 per cent, to 5,295.94 points by 1025 GMT. Yesterday the index closed below ...

Petronas inks deal with Itochu, PTT Global Chemicals for petchem plants

Fri, 18 May 2012 10:52:52 GMT

KUALA LUMPUR, May 18 — Petronas said today it has signed a head of agreement with Japan’s Itochu Corporation and Thailand’s PTT Global Chemical Pcl to build two separate petrochemical complexes. Petronas said in a statement it will be the major equity holder for both the proposed joint ventures that are part of the RM60 billion refinery project in ...

US firms eye Myanmar as sanctions suspended

Fri, 18 May 2012 10:09:42 GMT

WASHINGTON, May 18 — The suspension of US sanctions barring investment in Myanmar in response to political reforms in the poor southeast Asian state gives a green light to US firms queuing to scout for business in one of the last frontier markets. “Today we say to American business: invest in Burma and do it responsibly,” Secretary of State ...

Hong Kong shares lose more than 5pc for second week; HSBC tumbles

Fri, 18 May 2012 09:51:00 GMT

HONG KONG, May 18 — Hong Kong shares slid another 1.3 per cent today, inflicting a second consecutive weekly loss of more than 5 per cent as escalating Europe woes dragged down financial stocks and underwhelming US economic data increased risk aversion. The Hang Seng Index, which shed 5.3 per cent last week, lost another 5.1 per cent this one - ...

China cries foul after US sets tariffs on solar imports

Fri, 18 May 2012 08:44:35 GMT

BEIJING, May 18 — The United States imposed punitive tariffs on solar panel imports from China, the latest in a series of trade disputes between the world’s two biggest economies and sparking accusations by Beijing of protectionism. The new tariffs of 30 per cent, much bigger than had been expected, were set today by the US Commerce Department ...

Singapore inflation likely picked up in April

Fri, 18 May 2012 08:25:25 GMT

SINGAPORE, May 18 — Singapore’s inflation probably accelerated in April as a tight job market is pushing up wages in industries relying on foreign workers, adding to pressures posed by rising rents and car prices. Wage costs are rising at businesses as the government clamps down on foreign workers amid complaints from citizens about overcrowding ...

Euro zone fears spark rush for dollar, global shares fall

Fri, 18 May 2012 08:06:52 GMT

LONDON, May 18 — German government bond yields hit record lows today, the US dollar rose and shares fell as the escalating bank crisis in Spain, a ratings downgrade for Greece, and sluggish US data spurred investor demand for safe-haven assets. Across the board, riskier assets from commodities such as gold and oil and currencies — like the euro ...

RHB ups fair value of APM Automotive

Fri, 18 May 2012 06:15:58 GMT

KUALA LUMPUR, May 18 — RHB Research upped its fair value for Malaysia’s APM Automotive Holdings Bhd to RM5.00 ringgit from RM4.50, citing a brighter outlook after the automotive component manufacturer announced its first quarter earnings. “APM’s 1Q12 headline earnings were slightly ahead of our forecasts but in line with consensus estimates,” RHB ...

China government think-tank sees Q2 GDP growth at 7.5pc

Fri, 18 May 2012 06:09:27 GMT

BEIJING, May 18 — Annual economic growth could slow to 7.5 per cent in the second quarter, largely due to curbs on the property sector and headwinds from external demand, the State Information Centre, a government think tank, said in a report published today. If the GDP forecast is accurate, growth in the second three months of 2012 would be the ...

China April home prices fall for second month as downtrend takes hold

Fri, 18 May 2012 05:55:18 GMT

BEIJING, May 18 — Chinese home prices fell in April for a second month in a row compared with year ago levels, as a downtrend takes hold in the market while the government has vowed to continue its more than two years campaign to make housing more affordable. Average home prices in 70 major Chinese cities fell 1.2 per cent last month from a year ...

Analyst call May 18

Fri, 18 May 2012 03:26:54 GMT

KUALA LUMPUR, May 18 — This is a selection of morning calls by local research houses for the day. HwangDBS Vickers Market Preview After staging a mild technical rebound (of 8.2-point) yesterday, the FBM KLCI could give back all its gains and more today. On the chart, the benchmark index may be making its way to test the immediate support level of ...

Asia shares fall steeply on worries over Spain banks, growth

Fri, 18 May 2012 03:17:01 GMT

TOKYO, May 18 — Asian shares fell steeply today after more signs emerged of growing instability among Spanish banks and political turmoil in Greece, with the latest sluggish economic data from the United States adding to the list of risks for investors. MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.6 per cent, after ...

Singapore’s economy rebounds in Q1

Fri, 18 May 2012 01:21:38 GMT

SINGAPORE, May 18 — The Republic’s economy grew 1.6 per cent between January and March, compared to the same period last year, thanks to an upturn in the manufacturing sector. Compared to the previous quarter, the economy expanded 10 per cent. While Singapore avoided a technical recession - the economy shrank 2.5 per cent in the fourth quarter of ...

Facebook prices at top of range in landmark IPO

Fri, 18 May 2012 00:38:59 GMT

NEW YORK, May 18 — Facebook priced its initial public offering at US$38 a share, giving the world’s No. 1 online social network a US$104 billion (RM323.1 billion) valuation in the third largest offering in US history. The offering gives the eight-year-old company, founded in a Harvard dorm room and now with 900 million users, a valuation akin ...

British PM tells Europe to quell the turmoil

Thu, 17 May 2012 13:46:53 GMT

MANCHESTER, May 17 – Prime Minister David Cameron urged Europe’s rulers today to do more to quell the euro zone debt crisis and raised the prospect of a Greek default to argue he must stick to his unpopular attempt to cut spending and reduce debt at home. Warning that the survival of the euro was now in question, Cameron (picture) showed growing ...

Facebook can’t take Asian growth for granted

Thu, 17 May 2012 11:34:47 GMT

SINGAPORE, May 17 – Even as Facebook fever grips investors ahead of the social networking giant’s potential US$100 billion-plus (RM311.30 billion-plus) initial public offering, its breakneck growth in Asia may be slowing as it moves beyond desktop users to those who access the Internet largely or solely from a mobile phone. In March, Facebook ...

SE Asia Stocks: Philippine, Malaysia rebound; others retreat

Thu, 17 May 2012 11:23:35 GMT

BANGKOK, May 17 – Stocks in the Philippines and Malaysia rebounded from oversold territory on Thursday as investors bought shares that had been sold on worry about the European economy but late selling in the region suggested risk appetite remains weak. The Philippine index surged 3.1 per cent, pushing the index above the “oversold” mark, with its ...

HSBC turnaround on target, sees revenue boost

Thu, 17 May 2012 09:22:48 GMT

HONG KONG, May 17 – HSBC doubled the annual revenue boost expected from its turnaround plan to US$2 billion (RM6.23 billion), as Europe’s biggest bank targets emerging markets and cost cuts to lead its battle to recover from the financial crisis and cope with new regulations. Chief executive Stuart Gulliver said today that, one year into the ...