Tullow Oil Plc, a British oil and gas explorer, has told Heritage Oil Plc it will pre-empt Heritage’s sale of its Uganda assets, Tullow spokesman George Cazenove said by telephone today.
To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net
Sunday, January 17, 2010
Dubai Has Longest Losing Streak Since March on Debt Concern
Dubai Has Longest Losing Streak Since March on Debt Concern
Share Business ExchangeTwitterFacebook| Email | Print | A A A By Zahra Hankir
Jan. 17 (Bloomberg) -- Dubai’s index dropped for a sixth day, the longest losing streak since March, on concern that Dubai World may have trouble restructuring its debt and in anticipation of fourth-quarter earnings.
Emaar Properties PJSC, the United Arab Emirates’ biggest developer, and Dubai Financial Market, the only Gulf Arab stock market to sell shares to the public, slid to their lowest levels in more than a month. Al-Rajhi Bank, Saudi Arabia’s largest lender, dropped for the first time in three days after fourth- quarter earnings fell short of analysts’ expectations. The DFM General Index retreated 1.3 percent to 1,685.30 at 12:31 p.m. in Dubai. Abu Dhabi’s gauge lost 0.8 percent and Qatar DSM 20 Index declined 2.1 percent to 6,707.75, the lowest level since Dec. 2.
“The U.A.E. should remain rangebound until fourth-quarter earnings at which point we should begin to differentiate between stocks,” said Ali Khan, head of cash-equity trading at Dubai- based Arqaam Capital Ltd. “Possible headline risk from Dubai World restructuring continues to weigh on the market.”
Dubai World, which on Dec. 1 said it’s seeking to restructure $26 billion of debt, plans to meet with creditor banks this week to complete a standstill agreement, a banker participating in the talks said Jan. 14. A company spokeswoman declined to comment on the negotiations.
The Dubai government said on Nov. 25 the state-run holding company is seeking a “standstill” accord on its debt and that of its Nakheel PJSC unit. Dubai World failed to present a standstill offer in a Dec. 21 meeting with more than 90 lenders because it hadn’t reached an agreement on the terms of government support.
Al Rajhi Profit
Emaar Properties declined 2.3 percent to 3.44 dirhams and Dubai Financial Market dropped 3.6 percent to 1.63 dirhams. Both stocks are at their lowest intraday levels since Dec. 13.
Al Rajhi Bank slid as much as 1.4 percent to 73.25 riyals, the most since Jan. 12. It last traded unchanged at 74.25 riyals. The bank posted a quarterly profit that missed analysts’ estimates as lending slowed in the Arab world’s biggest economy. Net income rose 3.2 percent to 1.47 billion riyals ($392 million).
The fourth-quarter earnings season in Saudi Arabia is in full swing and will start later this month in the U.A.E. Oil tumbled 1.8 percent to close at $78 a barrel on Jan. 15, bringing its five-day loss to 5.7 percent. The six countries that make up the Gulf Cooperation Council supply about 20 percent of the world’s oil.
Oman’s MSM30 Index slipped 0.2 percent. The Kuwait Stock Exchange Index added 0.5 percent and Bahrain’s index gained 0.1 percent. Saudi Arabia’s Tadawul All Share Index lost 0.2 percent.
To contact the reporters on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net
Share Business ExchangeTwitterFacebook| Email | Print | A A A By Zahra Hankir
Jan. 17 (Bloomberg) -- Dubai’s index dropped for a sixth day, the longest losing streak since March, on concern that Dubai World may have trouble restructuring its debt and in anticipation of fourth-quarter earnings.
Emaar Properties PJSC, the United Arab Emirates’ biggest developer, and Dubai Financial Market, the only Gulf Arab stock market to sell shares to the public, slid to their lowest levels in more than a month. Al-Rajhi Bank, Saudi Arabia’s largest lender, dropped for the first time in three days after fourth- quarter earnings fell short of analysts’ expectations. The DFM General Index retreated 1.3 percent to 1,685.30 at 12:31 p.m. in Dubai. Abu Dhabi’s gauge lost 0.8 percent and Qatar DSM 20 Index declined 2.1 percent to 6,707.75, the lowest level since Dec. 2.
“The U.A.E. should remain rangebound until fourth-quarter earnings at which point we should begin to differentiate between stocks,” said Ali Khan, head of cash-equity trading at Dubai- based Arqaam Capital Ltd. “Possible headline risk from Dubai World restructuring continues to weigh on the market.”
Dubai World, which on Dec. 1 said it’s seeking to restructure $26 billion of debt, plans to meet with creditor banks this week to complete a standstill agreement, a banker participating in the talks said Jan. 14. A company spokeswoman declined to comment on the negotiations.
The Dubai government said on Nov. 25 the state-run holding company is seeking a “standstill” accord on its debt and that of its Nakheel PJSC unit. Dubai World failed to present a standstill offer in a Dec. 21 meeting with more than 90 lenders because it hadn’t reached an agreement on the terms of government support.
Al Rajhi Profit
Emaar Properties declined 2.3 percent to 3.44 dirhams and Dubai Financial Market dropped 3.6 percent to 1.63 dirhams. Both stocks are at their lowest intraday levels since Dec. 13.
Al Rajhi Bank slid as much as 1.4 percent to 73.25 riyals, the most since Jan. 12. It last traded unchanged at 74.25 riyals. The bank posted a quarterly profit that missed analysts’ estimates as lending slowed in the Arab world’s biggest economy. Net income rose 3.2 percent to 1.47 billion riyals ($392 million).
The fourth-quarter earnings season in Saudi Arabia is in full swing and will start later this month in the U.A.E. Oil tumbled 1.8 percent to close at $78 a barrel on Jan. 15, bringing its five-day loss to 5.7 percent. The six countries that make up the Gulf Cooperation Council supply about 20 percent of the world’s oil.
Oman’s MSM30 Index slipped 0.2 percent. The Kuwait Stock Exchange Index added 0.5 percent and Bahrain’s index gained 0.1 percent. Saudi Arabia’s Tadawul All Share Index lost 0.2 percent.
To contact the reporters on this story: Zahra Hankir in Dubai at zhankir@bloomberg.net
Leading Index Probably Rose in December: U.S. Economy Preview
The index of leading indicators probably rose in December for a ninth month, while home construction was little changed, indicating housing’s role in the U.S. expansion is waning, economists said before reports this week.
The Conference Board’s measure of the outlook for the next three to six months probably climbed 0.7 percent last month, according to the median forecast of 41 economists surveyed by Bloomberg News before the research group’s report Jan 21. The Commerce Department may report builders broke ground on 575,000 houses at an annual pace, up from 574,000 in November.
“The economy will stay on its recovery track, but it’s not going to be an easy or painless process,” said Julia Coronado, a senior economist at BNP Paribas in New York. “Demand for new construction is very limited.”
Fewer firings, rising stock prices and Federal Reserve efforts to keep short-term interest rates low propelled the advance in the leading index and make it more likely consumers will keep spending. Housing starts, which jumped 24 percent from April to July as builders rushed to satisfy buyers taking advantage of a government credit, will probably cool in coming months until demand reemerges.
The Standard & Poor’s 500 Index rose 1.8 percent last month, capping a 65 percent gain from a 12-year low on March 9 through December. The index is up 1.9 percent so far this month.
The rebound is helping repair the damage from the record $17.5 trillion plunge in household net worth since the recession started at the end of 2007 through last year’s first quarter.
Fewer Firings
Job losses are slowing. First-time claims for unemployment benefits averaged 460,000 a week in December, down from 481,000 the previous month. Claims peaked at 674,000 in late March 2009. The economy lost 85,000 jobs last month after adding 4,000 in November, according to Labor Department data.
Some companies are beginning to hire again. Starwood Hotels & Resorts Worldwide Inc., based in White Plains, New York, said Jan. 12 it plans to add about 6,000 jobs in the U.S. this year.
“After a year of hunkering down and cutting costs, companies are driving their top line again,” Frits van Paasschen, Starwood’s president and chief executive officer, said in a statement.
Americans will spend more in 2010 than previously estimated, economists surveyed this month by Bloomberg said. Purchases will grow 2 percent this year, the first gain since 2007 and up from a December estimate of 1.8 percent, according to the median forecast of 60 economists polled. The U.S. economy, the world’s largest, will expand 2.7 percent, the best performance in four years, the survey showed.
Housing Slows
Housing may be one area where Americans will be more circumspect. Sales of new houses dropped 11 percent in November, the month the government’s $8,000 tax credit for first-time buyers was due to expire.
President Barack Obama on Nov. 6 extended the incentive and expanded it to include current homeowners in a bid to boost demand. The extension allows closings to occur by the end of June as long as contracts are signed by the end of April. Still, the measure may have pulled sales forward and could result in fewer purchases in coming months.
Building permits, a sign of future activity, may have dropped 1.5 percent to a 580,000 annual pace in December, the Commerce Department’s Jan. 20 report on housing starts may show, according to the survey median.
Slump from Record
At a 574,000 pace in November, housing starts were down 75 percent from the record 2.27 million reached in January 2006.
A report on Jan. 19 may show builders were less pessimistic this month. The National Association of Home Builders/Wells Fargo confidence index probably climbed to 17 from a six-month low of 16 in December, economists surveyed said. It would be the first gain in four months. Readings less than 50 signal that most respondents view conditions as poor.
A measure of wholesale prices will show the economy is improving without igniting inflation. Producer prices in December were unchanged after a 1.8 percent gain the prior month, according to the survey median before a Jan. 20 report from the Labor Department. Excluding food and energy, prices rose 0.1 percent, economists forecast.
Finally, a Fed survey may show manufacturing in the Philadelphia region grew at a slower pace in January after expanding by the most in more than four years the prior month, economists estimated before that Jan. 21 release.
Bloomberg Survey
================================================================
Release Period Prior Median
Indicator Date Value Forecast
================================================================
Net Long Term TICS $ Blns 1/19 Nov. 20.7 27.5
Total TICS $ Blns 1/19 Nov. -13.9 40.0
NAHB Housing Index 1/19 Jan. 16 17
PPI MOM% 1/20 Dec. 1.8% 0.0%
Core PPI MOM% 1/20 Dec. 0.5% 0.1%
PPI YOY% 1/20 Dec. 2.4% 4.5%
Core PPI YOY% 1/20 Dec. 1.2% 1.0%
Housing Starts ,000’s 1/20 Dec. 574 575
Building Permits ,000’s 1/20 Dec. 589 580
Initial Claims ,000’s 1/21 9-Jan 444 440
Cont. Claims ,000’s 1/21 2-Jan 4596 4600
LEI MOM% 1/21 Dec. 0.9% 0.7%
Philly Fed Index 1/21 Jan. 22.5 19.4
================================================================
To contact the reporter on this story: Bob Willis in Washington bwillis@bloomberg.net
The Conference Board’s measure of the outlook for the next three to six months probably climbed 0.7 percent last month, according to the median forecast of 41 economists surveyed by Bloomberg News before the research group’s report Jan 21. The Commerce Department may report builders broke ground on 575,000 houses at an annual pace, up from 574,000 in November.
“The economy will stay on its recovery track, but it’s not going to be an easy or painless process,” said Julia Coronado, a senior economist at BNP Paribas in New York. “Demand for new construction is very limited.”
Fewer firings, rising stock prices and Federal Reserve efforts to keep short-term interest rates low propelled the advance in the leading index and make it more likely consumers will keep spending. Housing starts, which jumped 24 percent from April to July as builders rushed to satisfy buyers taking advantage of a government credit, will probably cool in coming months until demand reemerges.
The Standard & Poor’s 500 Index rose 1.8 percent last month, capping a 65 percent gain from a 12-year low on March 9 through December. The index is up 1.9 percent so far this month.
The rebound is helping repair the damage from the record $17.5 trillion plunge in household net worth since the recession started at the end of 2007 through last year’s first quarter.
Fewer Firings
Job losses are slowing. First-time claims for unemployment benefits averaged 460,000 a week in December, down from 481,000 the previous month. Claims peaked at 674,000 in late March 2009. The economy lost 85,000 jobs last month after adding 4,000 in November, according to Labor Department data.
Some companies are beginning to hire again. Starwood Hotels & Resorts Worldwide Inc., based in White Plains, New York, said Jan. 12 it plans to add about 6,000 jobs in the U.S. this year.
“After a year of hunkering down and cutting costs, companies are driving their top line again,” Frits van Paasschen, Starwood’s president and chief executive officer, said in a statement.
Americans will spend more in 2010 than previously estimated, economists surveyed this month by Bloomberg said. Purchases will grow 2 percent this year, the first gain since 2007 and up from a December estimate of 1.8 percent, according to the median forecast of 60 economists polled. The U.S. economy, the world’s largest, will expand 2.7 percent, the best performance in four years, the survey showed.
Housing Slows
Housing may be one area where Americans will be more circumspect. Sales of new houses dropped 11 percent in November, the month the government’s $8,000 tax credit for first-time buyers was due to expire.
President Barack Obama on Nov. 6 extended the incentive and expanded it to include current homeowners in a bid to boost demand. The extension allows closings to occur by the end of June as long as contracts are signed by the end of April. Still, the measure may have pulled sales forward and could result in fewer purchases in coming months.
Building permits, a sign of future activity, may have dropped 1.5 percent to a 580,000 annual pace in December, the Commerce Department’s Jan. 20 report on housing starts may show, according to the survey median.
Slump from Record
At a 574,000 pace in November, housing starts were down 75 percent from the record 2.27 million reached in January 2006.
A report on Jan. 19 may show builders were less pessimistic this month. The National Association of Home Builders/Wells Fargo confidence index probably climbed to 17 from a six-month low of 16 in December, economists surveyed said. It would be the first gain in four months. Readings less than 50 signal that most respondents view conditions as poor.
A measure of wholesale prices will show the economy is improving without igniting inflation. Producer prices in December were unchanged after a 1.8 percent gain the prior month, according to the survey median before a Jan. 20 report from the Labor Department. Excluding food and energy, prices rose 0.1 percent, economists forecast.
Finally, a Fed survey may show manufacturing in the Philadelphia region grew at a slower pace in January after expanding by the most in more than four years the prior month, economists estimated before that Jan. 21 release.
Bloomberg Survey
================================================================
Release Period Prior Median
Indicator Date Value Forecast
================================================================
Net Long Term TICS $ Blns 1/19 Nov. 20.7 27.5
Total TICS $ Blns 1/19 Nov. -13.9 40.0
NAHB Housing Index 1/19 Jan. 16 17
PPI MOM% 1/20 Dec. 1.8% 0.0%
Core PPI MOM% 1/20 Dec. 0.5% 0.1%
PPI YOY% 1/20 Dec. 2.4% 4.5%
Core PPI YOY% 1/20 Dec. 1.2% 1.0%
Housing Starts ,000’s 1/20 Dec. 574 575
Building Permits ,000’s 1/20 Dec. 589 580
Initial Claims ,000’s 1/21 9-Jan 444 440
Cont. Claims ,000’s 1/21 2-Jan 4596 4600
LEI MOM% 1/21 Dec. 0.9% 0.7%
Philly Fed Index 1/21 Jan. 22.5 19.4
================================================================
To contact the reporter on this story: Bob Willis in Washington bwillis@bloomberg.net
Australia ‘Carefully’ Withdraws Stimulus on Recovery, Swan Says
Australia’s government will “carefully” withdraw its stimulus measures as private demand recovers, subtracting from the nation’s growth through 2010, Treasurer Wayne Swansaid.
Australia is one of the few nations to have skirted the global recession, with the statistics bureau saying Jan. 14 that employers added jobs for a fourth straight month in December at three times the pace economists had estimated. Central bank Governor Glenn Stevens has led central bankers worldwide in announcing an unprecedented three straight months of interest rate increases beginning in October.
“Our fiscal stimulus will continue to carefully wind down as private demand recovers, subtracting from growth throughout 2010,” Swan said in a statement today. “Our stimulus program was specifically designed to have its maximum impact in the June quarter of last year and then gradually phase down.”
The Kevin Rudd government’s investments in highways, rails, ports and schools supported jobs and will also ensure sustainable growth with low inflation in the future, Swan said.
Upside Risks
Australia is seeing the biggest hiring boom in more than three years, stoked by companies including Chevron Corp., which is expanding liquefied natural gas ventures in Western Australia to meet rising global demand for energy. That will help drive economic growth, adding to pressure on the central bank to raise the overnight cash rate target in February by 25 basis points to 4 percent.
“His comments would be consistent with greater confidence regarding the economic outlook and an acknowledgement that the risks are shifting from the downside to the upside,” said Shane Oliver, head of investment strategy at Sydney-based AMP Capital Investors. “The government is starting to move into line behind the Reserve Bank, but the big test will come in the May budget.”
Higher wage demands threaten to fuel core inflation, which has held above the central bank’s target range of between 2 percent and 3 percent since the second quarter of 2007. The bank’s so-called weighted-median gauge of inflation rose an annual 3.8 percent in the third quarter. Fourth-quarter figures are due on Jan. 27.
The government has already withdrawn some spending measures including grants to first-home buyers and tax concessions to small businesses, Swan said. Home-loan approvals fell in November by the most in 18 months amid increasing borrowing costs and a reduction in government grants.
Treasurer Swan signaled in his comments that an “overnight” withdrawal of stimulus would hurt confidence, small business and job creation.
To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net
Australia is one of the few nations to have skirted the global recession, with the statistics bureau saying Jan. 14 that employers added jobs for a fourth straight month in December at three times the pace economists had estimated. Central bank Governor Glenn Stevens has led central bankers worldwide in announcing an unprecedented three straight months of interest rate increases beginning in October.
“Our fiscal stimulus will continue to carefully wind down as private demand recovers, subtracting from growth throughout 2010,” Swan said in a statement today. “Our stimulus program was specifically designed to have its maximum impact in the June quarter of last year and then gradually phase down.”
The Kevin Rudd government’s investments in highways, rails, ports and schools supported jobs and will also ensure sustainable growth with low inflation in the future, Swan said.
Upside Risks
Australia is seeing the biggest hiring boom in more than three years, stoked by companies including Chevron Corp., which is expanding liquefied natural gas ventures in Western Australia to meet rising global demand for energy. That will help drive economic growth, adding to pressure on the central bank to raise the overnight cash rate target in February by 25 basis points to 4 percent.
“His comments would be consistent with greater confidence regarding the economic outlook and an acknowledgement that the risks are shifting from the downside to the upside,” said Shane Oliver, head of investment strategy at Sydney-based AMP Capital Investors. “The government is starting to move into line behind the Reserve Bank, but the big test will come in the May budget.”
Higher wage demands threaten to fuel core inflation, which has held above the central bank’s target range of between 2 percent and 3 percent since the second quarter of 2007. The bank’s so-called weighted-median gauge of inflation rose an annual 3.8 percent in the third quarter. Fourth-quarter figures are due on Jan. 27.
The government has already withdrawn some spending measures including grants to first-home buyers and tax concessions to small businesses, Swan said. Home-loan approvals fell in November by the most in 18 months amid increasing borrowing costs and a reduction in government grants.
Treasurer Swan signaled in his comments that an “overnight” withdrawal of stimulus would hurt confidence, small business and job creation.
To contact the reporter on this story: Candice Zachariahs in Sydney at czachariahs2@bloomberg.net
Dyson to expand facility in Malaysia
LONDON: Dyson Limited, the world's largest vacuum
cleaner manufacturer, plans to expand its production facility in Malaysia, said its International and Commercial Director Sir Richard Needham.
Describing Malaysia as a good place to do business, he said the quality of Malaysian engineers working at its production facility "is excellent and is at the highest order."
On top of that, he said, the availability of engineers from the various racial group in the country presented a good cultural mix.
Needham, who was British Trade Minister from 1992 to 1995, said Dyson had invested about RM500 million in its facility in Malaysia.
The company had just closed its manufacturing facility in China, and was taking steps to move them to Malaysia, particularly for its new products, he told reporters here.
The company also planned to move its engineering and design engineering to Malaysia, he said, adding that he would be travelling to Malaysia next week to to prepare for expansion plan.
He said the company had been manufacturing vacuum cleaners in Malaysia over the past 10 years through local sub-contractors.
Dyson controls 35 per cent of the world's vacuum cleaner market by value and is the number one seller in United States, Europe, Australasia and Russia and number two in Japan.
Besides vacuum cleaner, he said, Dyson also produced hand dryers which dry hands in just 10 seconds and its Malaysian facility in Johor also produced bladeless fan which had sold out its three month production in Australia in merely one week.
Needham said Britain and Malaysia had very long cultural, political and "family" ties.
Malaysia was a good place to do business with the availability of infrastructure and easy-to-talk-to MIDA (Malaysian Industrial Development Authority) and decision makers, he said.
He would like to see the government remove the remaining controls on foreign exchange and felt that the court system in Malaysia which had about 60,000 outstanding cases, made it difficult to get judgement on certain issues.
He also suggested Malaysia, especially the southern states, and Singapore to lessen competition with each other and instead to cooperate with each other to attract investors. -- Bernama
cleaner manufacturer, plans to expand its production facility in Malaysia, said its International and Commercial Director Sir Richard Needham.
Describing Malaysia as a good place to do business, he said the quality of Malaysian engineers working at its production facility "is excellent and is at the highest order."
On top of that, he said, the availability of engineers from the various racial group in the country presented a good cultural mix.
Needham, who was British Trade Minister from 1992 to 1995, said Dyson had invested about RM500 million in its facility in Malaysia.
The company had just closed its manufacturing facility in China, and was taking steps to move them to Malaysia, particularly for its new products, he told reporters here.
The company also planned to move its engineering and design engineering to Malaysia, he said, adding that he would be travelling to Malaysia next week to to prepare for expansion plan.
He said the company had been manufacturing vacuum cleaners in Malaysia over the past 10 years through local sub-contractors.
Dyson controls 35 per cent of the world's vacuum cleaner market by value and is the number one seller in United States, Europe, Australasia and Russia and number two in Japan.
Besides vacuum cleaner, he said, Dyson also produced hand dryers which dry hands in just 10 seconds and its Malaysian facility in Johor also produced bladeless fan which had sold out its three month production in Australia in merely one week.
Needham said Britain and Malaysia had very long cultural, political and "family" ties.
Malaysia was a good place to do business with the availability of infrastructure and easy-to-talk-to MIDA (Malaysian Industrial Development Authority) and decision makers, he said.
He would like to see the government remove the remaining controls on foreign exchange and felt that the court system in Malaysia which had about 60,000 outstanding cases, made it difficult to get judgement on certain issues.
He also suggested Malaysia, especially the southern states, and Singapore to lessen competition with each other and instead to cooperate with each other to attract investors. -- Bernama
KL share uptrend set to continue
Malaysian shares are set to move higher in a pre-Chinese New Year rally, analysts said.
Maybank Investment Bank Head of Retail Research Lee Cheng Hooi said the market rotational play would continue for the next two to three weeks across all sectors in small and big-cap stocks.
The strong buying momentum, he said, would push the FBM Kuala Lumpur Composite Index (FBM KLCI) to the 1,305-resistance level in the near term after the 1,300-level was breached on Friday.
"However, profit-taking will cap the index's upside," he added.
MIMB Investment Bank Technical Analyst Mohd Nazri Khan said the market sentiment would remain upbeat in the first half of 2010 as government stimulus packages began to make presence felt in the country's economy.
He said the huge economic stimulus packages by all countries to fight the effects of global slowdown also boosted local and foreign investors' interest in stock markets.
"Stimulus packages will aid market sentiment not only in FBM KLCI but global markets as well," he said.
Jupiter Securities Sdn Bhd Head of Research Pong Teng Siew said the index would continue to be on the uptrend but in a slow climb until February.
He said investors believed the market sentiment would remain bullish and most of them were eagerly awaiting Public Bank's earnings result and the unveiling of the new economic model -- the basis and direction of the country's economy in the future.
"FBM KLCI would trade with an upward bias as ample liquidity would keep the market buoyant," he said.
For the week just ended, the FBM KLCI added 5.6 points to end the week at 1,298.58.
The Finance Index rose 90.55 to 11,330.05, the Plantation Index fell 24.62 points to 6,515.04 and the Industrial Index was 24.27 points higher at 2,716.73.
The FBM Emas Index added 75.92 points to 8,771.56, the FBM Top 100 Index rose 46.74 points to 8,512.7, the FBM70 Index jumped 86.85 points to 8,612.86 and the FBM ACE Index ended the week higher by 140.63 points at 4,588.94.
Total turnover increased to 8.014 billion shares worth RM9.018 billion from 6.161 billion shares valued at RM7.966 billion.
Volume on the main market rose to 6.964 billion units valued at RM8.733 billion from 5.945 billion units worth RM7.706 billion.
Turnover for call warrants declined to 151.238 million units worth RM27.737 million from 283.166 million units valued at RM52.822 million.
The ACE Market volume advanced to 781.886 million units valued at RM213.769 million from 736.040 million units worth RM171.304 million. -- Bernama
Maybank Investment Bank Head of Retail Research Lee Cheng Hooi said the market rotational play would continue for the next two to three weeks across all sectors in small and big-cap stocks.
The strong buying momentum, he said, would push the FBM Kuala Lumpur Composite Index (FBM KLCI) to the 1,305-resistance level in the near term after the 1,300-level was breached on Friday.
"However, profit-taking will cap the index's upside," he added.
MIMB Investment Bank Technical Analyst Mohd Nazri Khan said the market sentiment would remain upbeat in the first half of 2010 as government stimulus packages began to make presence felt in the country's economy.
He said the huge economic stimulus packages by all countries to fight the effects of global slowdown also boosted local and foreign investors' interest in stock markets.
"Stimulus packages will aid market sentiment not only in FBM KLCI but global markets as well," he said.
Jupiter Securities Sdn Bhd Head of Research Pong Teng Siew said the index would continue to be on the uptrend but in a slow climb until February.
He said investors believed the market sentiment would remain bullish and most of them were eagerly awaiting Public Bank's earnings result and the unveiling of the new economic model -- the basis and direction of the country's economy in the future.
"FBM KLCI would trade with an upward bias as ample liquidity would keep the market buoyant," he said.
For the week just ended, the FBM KLCI added 5.6 points to end the week at 1,298.58.
The Finance Index rose 90.55 to 11,330.05, the Plantation Index fell 24.62 points to 6,515.04 and the Industrial Index was 24.27 points higher at 2,716.73.
The FBM Emas Index added 75.92 points to 8,771.56, the FBM Top 100 Index rose 46.74 points to 8,512.7, the FBM70 Index jumped 86.85 points to 8,612.86 and the FBM ACE Index ended the week higher by 140.63 points at 4,588.94.
Total turnover increased to 8.014 billion shares worth RM9.018 billion from 6.161 billion shares valued at RM7.966 billion.
Volume on the main market rose to 6.964 billion units valued at RM8.733 billion from 5.945 billion units worth RM7.706 billion.
Turnover for call warrants declined to 151.238 million units worth RM27.737 million from 283.166 million units valued at RM52.822 million.
The ACE Market volume advanced to 781.886 million units valued at RM213.769 million from 736.040 million units worth RM171.304 million. -- Bernama
Ringgit likely to be rangebound
The ringgit is expected to trade between 3.33 and 3.35 to the US dollar next week amid investors' concern over the US interest rate policy, dealers said.
They said the uncertain situation in the global economy would encourage investors to seek safe-haven assets and lower-yielding currencies.
"Investors will remain cautious ahead of new US economic data as well as concerns on China's move to raise banks' reserve requirements," one of them said.
Investors would also look to the US Federal Reserve's next meeting though it was likely to keep rates unchanged near zero, they said.
Another dealer said the ringgit could rise further next week due to growth of the Malaysian economy, led by commodity and agriculture exports.
This week, the ringgit jumped to 3.3380/3410 against the US dollar from 3.3740/3780 a week earlier.
It also rose against the Singapore dollar to 2.4032/4057 from 2.4129/4182 and the euro to 4.8091/8144 from 4.8349/8420.
However, the local unit eased against the yen to 3.6786/6828 from 3.6241/6287 and the British pound to 5.4500/4562 from 5.4041/4112. -- Bernama
They said the uncertain situation in the global economy would encourage investors to seek safe-haven assets and lower-yielding currencies.
"Investors will remain cautious ahead of new US economic data as well as concerns on China's move to raise banks' reserve requirements," one of them said.
Investors would also look to the US Federal Reserve's next meeting though it was likely to keep rates unchanged near zero, they said.
Another dealer said the ringgit could rise further next week due to growth of the Malaysian economy, led by commodity and agriculture exports.
This week, the ringgit jumped to 3.3380/3410 against the US dollar from 3.3740/3780 a week earlier.
It also rose against the Singapore dollar to 2.4032/4057 from 2.4129/4182 and the euro to 4.8091/8144 from 4.8349/8420.
However, the local unit eased against the yen to 3.6786/6828 from 3.6241/6287 and the British pound to 5.4500/4562 from 5.4041/4112. -- Bernama
Growing stocks to pressure CPO prices
Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade in ranges next week amid concerns over growing stockpiles this month, dealers said.
"The stock level is very high and the output is expected to grow by about 5-10 per cent this year. This would put pressure on prices," one of the dealers said.
Inventory has increased to 2.239 million tonnes in December 2009 -- the second highest on record. The highest was 2.266 million tonnes in November 2008.
"A key factor for the rise in stockpile was the sharp decline in shipment, suggesting that prices have reached levels high enough to douse demand, bearing in mind that December's average price was RM2,456 per tonne, which was more than RM100 per tonne lower than the current level.
"Unless prices ease sufficiently, the inventory level may keep rising, given the normalisation in both Malaysia and Indonesia after last year's poor crop," he said.
CPO prices could move downward during the high production season, the dealer said, adding that prices were expected to hover around RM2,200 and RM2,300 per tonne next week after being traded above RM2,400 per tonne throughout the week.
The local CPO market would also track closely other vegetable markets as well as crude oil prices for direction, he said.
On a Friday-to-Friday basis, the CPO futures contract for January 2010 dropped RM90 to RM2,480 per tonne while February 2010 went down RM125 to RM2,467 per tonne.
March 2010 lost RM136 to RM2,490 per tonne and April 2010 dived RM141 to RM2,495 per tonne.
The week's turnover broadened to 111,844 lots compared with last week''s 71,052 lots.
Open position, however, fell to 75,701 contracts on Friday from 80,208 contracts at the end of last week.
On the physical market, January South traded lower at RM2,490 per tonne compared to RM2,590 per tonne previously. -- Bernama
"The stock level is very high and the output is expected to grow by about 5-10 per cent this year. This would put pressure on prices," one of the dealers said.
Inventory has increased to 2.239 million tonnes in December 2009 -- the second highest on record. The highest was 2.266 million tonnes in November 2008.
"A key factor for the rise in stockpile was the sharp decline in shipment, suggesting that prices have reached levels high enough to douse demand, bearing in mind that December's average price was RM2,456 per tonne, which was more than RM100 per tonne lower than the current level.
"Unless prices ease sufficiently, the inventory level may keep rising, given the normalisation in both Malaysia and Indonesia after last year's poor crop," he said.
CPO prices could move downward during the high production season, the dealer said, adding that prices were expected to hover around RM2,200 and RM2,300 per tonne next week after being traded above RM2,400 per tonne throughout the week.
The local CPO market would also track closely other vegetable markets as well as crude oil prices for direction, he said.
On a Friday-to-Friday basis, the CPO futures contract for January 2010 dropped RM90 to RM2,480 per tonne while February 2010 went down RM125 to RM2,467 per tonne.
March 2010 lost RM136 to RM2,490 per tonne and April 2010 dived RM141 to RM2,495 per tonne.
The week's turnover broadened to 111,844 lots compared with last week''s 71,052 lots.
Open position, however, fell to 75,701 contracts on Friday from 80,208 contracts at the end of last week.
On the physical market, January South traded lower at RM2,490 per tonne compared to RM2,590 per tonne previously. -- Bernama
Rubber prices set to rise further
Malaysian rubber prices are expected to rise further next week amid concern over tight supply of the commodity, dealers said.
"Supply shortages are still a major issue and this would continue to push prices up," said one of them.
According to a report by the Association of Natural Rubber Producing Countries, the eight largest producers -- Thailand, Indonesia, Malaysia, India, Vietnam, China, Sri Lanka and Cambodia -- saw supply declining by 5.1 per cent in aggregate last year through October.
The biggest drop in output came from Malaysia, which produced 879,000 metric tonnes, a 20.6 per cent drop compared with 1.07 million tonnes in 2008.
Supply was expected to decrease again during the wintering dry season, starting late February to mid-April.
Another dealer said there was still room for local rubber prices to move further up as they were still considered cheap compared with those in some regional markets like Thailand, Indonesia and Singapore that had already surpassed 1,200 sen per kg.
The SMR 20 price had exceeded 1,000 sen per kg this week. The highest level seen was in July 2008 when the price touched 1,051 sen per kg due to tight supply and uncertain weather conditions.
According to reports, Malaysia, Thailand and Indonesia are scheduled to hold a ministerial meeting on Jan 17-19 to seek ways to stabilise prices.
The top three producers had cut exports to balance prices before, namely after it hit a 56-year peak of US$3.25 a kg in July 2008 but then dropped to US$1.10 a kg five months later.
As prices recovered in 2009, little was done to restrict exports.
"Just wait and see what will be the outcome from the meeting," said a dealer.
On a Friday-to-Friday basis, the Malaysian Rubber Board official physical price for tyre-grade SMR 20 jumped 20.5 sen to 1,011.50 sen per kg from 992.00 sen per kg.
Latex in bulk climbed 23 sen to 660.50 sen per kg from 637.50 sen per kg previously.
The unofficial sellers' 5pm price for SMR 20 shored up 19 sen to 1,011.50 sen per kg from 992.50 sen per kg while latex in bulk surged 28 sen to 666.50 sen per kg from 638.50 sen per kg previously. -- Bernama
"Supply shortages are still a major issue and this would continue to push prices up," said one of them.
According to a report by the Association of Natural Rubber Producing Countries, the eight largest producers -- Thailand, Indonesia, Malaysia, India, Vietnam, China, Sri Lanka and Cambodia -- saw supply declining by 5.1 per cent in aggregate last year through October.
The biggest drop in output came from Malaysia, which produced 879,000 metric tonnes, a 20.6 per cent drop compared with 1.07 million tonnes in 2008.
Supply was expected to decrease again during the wintering dry season, starting late February to mid-April.
Another dealer said there was still room for local rubber prices to move further up as they were still considered cheap compared with those in some regional markets like Thailand, Indonesia and Singapore that had already surpassed 1,200 sen per kg.
The SMR 20 price had exceeded 1,000 sen per kg this week. The highest level seen was in July 2008 when the price touched 1,051 sen per kg due to tight supply and uncertain weather conditions.
According to reports, Malaysia, Thailand and Indonesia are scheduled to hold a ministerial meeting on Jan 17-19 to seek ways to stabilise prices.
The top three producers had cut exports to balance prices before, namely after it hit a 56-year peak of US$3.25 a kg in July 2008 but then dropped to US$1.10 a kg five months later.
As prices recovered in 2009, little was done to restrict exports.
"Just wait and see what will be the outcome from the meeting," said a dealer.
On a Friday-to-Friday basis, the Malaysian Rubber Board official physical price for tyre-grade SMR 20 jumped 20.5 sen to 1,011.50 sen per kg from 992.00 sen per kg.
Latex in bulk climbed 23 sen to 660.50 sen per kg from 637.50 sen per kg previously.
The unofficial sellers' 5pm price for SMR 20 shored up 19 sen to 1,011.50 sen per kg from 992.50 sen per kg while latex in bulk surged 28 sen to 666.50 sen per kg from 638.50 sen per kg previously. -- Bernama
KL tin market may consolidate
The Kuala Lumpur Tin Market (KLTM) is likely to consolidate next week with steady demand expected from foreign buyers, after hitting a 15-month high on Friday, dealers said.
The price had surged to S$18,200 per tonne, the highest since September 2008, following sharp gains on the London Metal Exchange (LME) amid positive signs of a global economic recovery.
"We expect demand for the metal to continue strong as investors digest China's move to tighten its monetary policy to achieve a solid growth," one of the dealers said.
China, the world's largest scrap metal importer, has raised its bank reserves requirement ratio to curb inflation threats.
The price of industrial metals including tin came under pressure early this week due to a knee-jerk reaction to the reserve ratio announcement, but it later rebounded.
"China is the biggest growing economy in world. The country has it own strong momentum and this would indirectly help boost demand for metals," the dealer said.
He said the tin price could hover between US$18,200 and US$19,250 per tonne next week with Japanese and European continuing to support the market.
On a Friday-to-Friday basis, the KLTM tin price jumped US$700 to US$18,200 per tonne from US$17,500 per tonne.
The metal's price on LME also surged by US$950 to US$18,450 per tonne from US$17,500 per tonne.
The weekly turnover on KLTM was lower at 268 tonnes compared with 303 tonnes a week earlier.
The price differential between KLTM and LME, based on a formula that includes freight, insurance and other financial costs, stood at a US$75 premium per tonne against US$325 per tonne previously. -- Bernama
The price had surged to S$18,200 per tonne, the highest since September 2008, following sharp gains on the London Metal Exchange (LME) amid positive signs of a global economic recovery.
"We expect demand for the metal to continue strong as investors digest China's move to tighten its monetary policy to achieve a solid growth," one of the dealers said.
China, the world's largest scrap metal importer, has raised its bank reserves requirement ratio to curb inflation threats.
The price of industrial metals including tin came under pressure early this week due to a knee-jerk reaction to the reserve ratio announcement, but it later rebounded.
"China is the biggest growing economy in world. The country has it own strong momentum and this would indirectly help boost demand for metals," the dealer said.
He said the tin price could hover between US$18,200 and US$19,250 per tonne next week with Japanese and European continuing to support the market.
On a Friday-to-Friday basis, the KLTM tin price jumped US$700 to US$18,200 per tonne from US$17,500 per tonne.
The metal's price on LME also surged by US$950 to US$18,450 per tonne from US$17,500 per tonne.
The weekly turnover on KLTM was lower at 268 tonnes compared with 303 tonnes a week earlier.
The price differential between KLTM and LME, based on a formula that includes freight, insurance and other financial costs, stood at a US$75 premium per tonne against US$325 per tonne previously. -- Bernama
Enigma keen to open facility in Penang
LONDON:Enigma Diagnostics Limited, manufacturer of a new H1N1 flu diagnostic system, is interested to open a production facility at the Penang Technology Park, possibly in September this year.
Chief operating officer Darren Hall said he would be going back to Malaysia next month and to have further discussions with the Malaysian Industrial Development Authority (MIDA).
On the H1N1 flu diagnostic system, he said, it was expected to be launched out of United Kingdom in September and with a high volume capacity the company planned to build, "we would have a similar product for global launch in 2011".
Enigma had entered into a commercial partnership with Glaxo to launch the system with the Glaxo brand, he told reporters here.
Hall said his main concern about building the facility in Penang was the availability of talents because as a company involved in the production of medical devices and technologies, it needed talents such as laboratory technicians, scientists, production engineers, process engineers and manufacturing managers.
In the quest for the right talent, he said, he was happy to hear that there were about 11,000 Malaysian students studying in United Kingdom.
"It would be nice to have access to the students and start some kind of early engagement like industrial placement for some of the business the company are looking for," he said. -- Bernama
Chief operating officer Darren Hall said he would be going back to Malaysia next month and to have further discussions with the Malaysian Industrial Development Authority (MIDA).
On the H1N1 flu diagnostic system, he said, it was expected to be launched out of United Kingdom in September and with a high volume capacity the company planned to build, "we would have a similar product for global launch in 2011".
Enigma had entered into a commercial partnership with Glaxo to launch the system with the Glaxo brand, he told reporters here.
Hall said his main concern about building the facility in Penang was the availability of talents because as a company involved in the production of medical devices and technologies, it needed talents such as laboratory technicians, scientists, production engineers, process engineers and manufacturing managers.
In the quest for the right talent, he said, he was happy to hear that there were about 11,000 Malaysian students studying in United Kingdom.
"It would be nice to have access to the students and start some kind of early engagement like industrial placement for some of the business the company are looking for," he said. -- Bernama
Renault to Keep Jobs at Flins as France Pledges Aid (Update1)
Renault SA Chief Executive Officer Carlos Ghosn promised to maintain jobs at the company’s Flins plant after meeting with President Nicolas Sarkozy and obtaining state aid to develop electric cars.
Renault will continue to produce its current Clio models at the site northwest of Paris and will add some production of its new Clio IV, Sarkozy said in a statement today. The French government will provide loans of 170 million euros ($244 million) to develop electric cars and batteries, he said.
Ghosn was summoned to meet Sarkozy after France’s second- largest carmaker floated the idea of shifting production of the next Clio compact car to its plant in Bursa, Turkey. The suggestion came after France spent about 600 million euros to boost car sales and provided Renault with 3 billion euros of aid in the face of the worst recession since World War II.
“We haven’t invested all this money supporting our carmakers just to see all the factories moved overseas,” Sarkozy told lawmakers in the National Assembly Jan. 13. The French state is also Renault’s biggest shareholder with a 15 percent stake.
Today’s agreement suggests Renault will barely change its plans for Clio production, while allowing Sarkozy to say jobs will be kept in France. It also sidesteps concern raised by the European Commission, which cleared car incentive programs last year on the condition that governments avoid attaching strings that would favor the French auto industry over those of other countries.
European Union Competition Commissioner Neelie Kroes said yesterday that she’ll ensure that France abides by the agreement under which the EU approved aid to Renault.
“I obtained a clear commitment from the French authorities that subsidized loans to national car producers would not affect the freedom of manufacturers to develop their economic activities in the internal market,” Kroes said.
Renault was already planning to use the Flins factory to build its Zoe electric car starting in 2012, Renault spokeswoman Axelle de Ladonchamps said yesterday in a telephone interview. Renault officials were not immediately available for comment after Sarkozy’s statement today.
To contact the reporters responsible for this story: Gregory Viscusi in Paris at gviscusi@bloomberg.net; Mark Deen at markdeen@bloomberg.net
Renault will continue to produce its current Clio models at the site northwest of Paris and will add some production of its new Clio IV, Sarkozy said in a statement today. The French government will provide loans of 170 million euros ($244 million) to develop electric cars and batteries, he said.
Ghosn was summoned to meet Sarkozy after France’s second- largest carmaker floated the idea of shifting production of the next Clio compact car to its plant in Bursa, Turkey. The suggestion came after France spent about 600 million euros to boost car sales and provided Renault with 3 billion euros of aid in the face of the worst recession since World War II.
“We haven’t invested all this money supporting our carmakers just to see all the factories moved overseas,” Sarkozy told lawmakers in the National Assembly Jan. 13. The French state is also Renault’s biggest shareholder with a 15 percent stake.
Today’s agreement suggests Renault will barely change its plans for Clio production, while allowing Sarkozy to say jobs will be kept in France. It also sidesteps concern raised by the European Commission, which cleared car incentive programs last year on the condition that governments avoid attaching strings that would favor the French auto industry over those of other countries.
European Union Competition Commissioner Neelie Kroes said yesterday that she’ll ensure that France abides by the agreement under which the EU approved aid to Renault.
“I obtained a clear commitment from the French authorities that subsidized loans to national car producers would not affect the freedom of manufacturers to develop their economic activities in the internal market,” Kroes said.
Renault was already planning to use the Flins factory to build its Zoe electric car starting in 2012, Renault spokeswoman Axelle de Ladonchamps said yesterday in a telephone interview. Renault officials were not immediately available for comment after Sarkozy’s statement today.
To contact the reporters responsible for this story: Gregory Viscusi in Paris at gviscusi@bloomberg.net; Mark Deen at markdeen@bloomberg.net
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