As of 3 December 2007, DJIA closed the day with:

13,314.57 -57.15 -0.43%

Record close for KL Composite Index

PETALING JAYA: The KL Composite Index (KLCI) leapt to a new high yesterday, with sustained interest in newly-listed Sime Darby Bhd and a potential re-rating on blue chip laggard Tenaga Nasional Bhd (TNB) providing the market with a major boost.

The benchmark index was also bolstered by Telekom Malaysia Bhd's sharp gain to its highest level in almost three years. Top banking stocks Malayan Banking Bhd and Public Bank Bhd also contributed to the index rise.

The 100-strong KLCI gained 22.36 points, or 1.6%, to 1,419.34 yesterday - its highest closing level ever. The index hit an intra-day record of 1,423.81 on Nov 1 this year.

However, the broader market was in a sombre mood, with the lack of fresh leads to spur buying interest from retail investors.

Rising stocks edged decliners 416 to 406 with 279 counters unchanged. Total market volume stood at 858 million shares valued at RM1.8bil.

The FTSE Bursa Malaysia Small Cap Index, which tracks the performance of main board stocks outside the top 100 companies, slipped 0.04% to 11,788 points.

"The focus is on quality counters, as investors are getting cautious about their outlook on equities with so many uncertainties around,'' a dealer at a local brokerage said.

Sime Darby, the enlarged conglomerate listed last Friday, gained 50 sen to RM11.50. The group, which is the most valuable company on Bursa Malaysia, is a "must have" for portfolio managers tracking the performance of the KLCI.

Rising stock prices - yesterday's gain added to the KLCI's six-day winning streak - also strengthened the ringgit by 0.2% to 3.355 yesterday against the US dollar.

Meanwhile, shares in TNB received a boost yesterday on positive comments by the Second Finance Minister, and the perception that the utility firm was undervalued at current prices.

Despite TNB's 45 sen advance yesterday to RM9.70, the stock remained 11% lower for the year. To compare, the KLCI had risen 29% over the past 11 months.

According to Bloomberg's data, 90% of 30 analysts who tracked TNB rated the stock a "buy", with 20% to 30% upside potential from yesterday's closing price.

TNB had also proposed to lift the 25% voting cap for foreign shareholders, and this could boost the stock's appeal in the longer run.

Elsewhere, investors' sentiment remained fragile despite the country's economy growing at a faster rate than expected and strong quarterly earnings reported by local companies in the recently-concluded third-quarter results reporting season.

The recent spike in share prices are also likely to attract some profit taking in the coming days.

Elsewhere in the region, the equity markets were mixed yesterday with main barometers rising in Hong Kong, Australia, India, Singapore and Indonesia but were lower in Japan, Taiwan, South Korea and Thailand.

Crude oil price stayed below US$89 per barrel ahead of the US trading session yesterday. With crude oil on the retreat from near US$100 per barrel, traders expect price of crude palm oil (CPO) to fall in tandem.

The benchmark CPO futures contract traded on Bursa Derivatives narrowed earlier sharp losses to close at RM2,926 per tonne, down RM4 yesterday.

URL: http://biz.thestar.com.my/news/story.asp?f...22&sec=business

Asian markets are making strong rally in the second half.

European markets open the day in GREEN.

Stocks Tilt to Higher Open Ahead of Data

Stocks Head to Higher Open Ahead of Data on Service Sector, Productivity and Factory Orders

URL: http://biz.yahoo.com/ap/071205/wall_street.html

DJIA starts the day with:

13,244.09 -4.64 -0.04%

DJIA closed the day with:

13,619.89 +174.93 +1.30%

Anybody is interested with TASCO (TRANS-ASIA SHIPPING CORPORATION BERHAD) IPO?


This post has been edited by David83: Dec 7 2007, 09:07 PM

How come it slides like hell in the 2nd half?

The first half was still great! What happened?

This post has been edited by David83: Dec 7 2007, 09:08 PM

Guide to investing in call warrants

A key feature of Bursa Malaysia's online game for young investors - Bursa Pursuit is providing education on adopting informed investment strategies. This third of a four-part series focuses on a key investment tool to participate in the growth of an active stock.

IN our previous articles, we talked about how companies initiated corporate actions like "share splits" and "bonus issues" that help transform a listed company's share structure and potentially affect the returns to shareholders.

Now, let's talk about a specific instrument that is not created or initiated by the listed company, but rather by an investment bank. Called a call warrant (or "option" outside Malaysia), this tool gives investors the right to own stocks in a company at a fraction of the share's cost for a fixed period of time.

A call warrant is a derivative-based product that has a fixed tenure (maturity) and, if not exercised, is worthless after its expiry date. Therefore, it is essential to select a call warrant that has sufficient time before it expires to match investment targets.

While a call warrant is traded like a stock, it is not based on the company's performance but the attractiveness of the company's stock that is being traded on the stock market. It derives its value from the value of an underlying security stock.

A holder of a call warrant does not have any voting, shareholding or dividend rights. The investor therefore has no say in the management of the company, even though he is affected by any decisions made by the company that impacts the share price of the warrants.

As call warrants are somewhat volatile investment vehicle, it pays to understand some of the terms used.


"Mother share": The share on which the call warrant is based. It is also known as the underlying security.
·Expiry date or ex-date: This is a very important date to know, because if you do not redeem your call warrant before or on the expiry date, it ceases to exist.

·Exercise or strike price: It's the stated price per share for which the mother share may be purchased or sold by the call warrant holder upon exercise of the call warrant contract.


Settlement types: This means the type of settlement to warrant holders upon maturity i.e. physical-settled or cash-settled.

Settlement price: This means a reference price determined by the market in which a Call Warrant is converted into cash value.
The call warrant is classified by its exercise style:

·American warrant: This call warrant can be exercised anytime before or on the stated expiry date

·European warrant: Exercise of this call warrant can be carried out only on the day of expiration.

Before investing in call warrants, there are three things you should know and watch out for:

1. Volatility of the mother share because a highly dynamic stock can make the call warrant even more volatile due to the leverage.

2. Determine the leverage based on the formula given below. This determines how much you get paid at the end and the amount you gain or lose when the price goes up or down.

3. Determine the settlement amount based on the formula given below. This determines how much you get paid upon expiry or exercise of a cash-settled call warrant

Cash Settlement formula:

(Settlement Price - Exercise price) / Entitlement Ratio} x Number of CW exercised - Exercise Expenses

4. Expiry Date: The date the call warrant closes and ceases to exist. This means that when the expiry date is due, the value of the call warrant follows the payout formula described in cash settlement formula. However, if the settlement price is less than the exercise price, the cash settlement amount is zero.

Let's say company XYZ shares are currently priced at RM10 per share. To purchase 1,000 shares which is equivalent to 10 lots, an investor would need RM10,000. However, if the investor opted to buy a call warrant (representing one share) that was going for 50 sen per call warrant, the investor could enjoy the right to own 20,000 shares with the same RM10,000, and be highly rewarded if there is a rise in price!

Because the prices of call warrants are low, the leverage they offer is high so there is a potential for large capital gains, but also losses. While it is common for a share price and a call warrant price to move in parallel, the percentage gain (or loss) will be varied because of the formula used to determine the final payout.

To illustrate this, let's say that share XYZ gains RM1 per share from RM10 to close at RM11. The percentage gain would be 9%.

However, with a RM1 gain in the call warrant, from 50 sen to RM1.50, the percentage gain would be 66%.

As mentioned above, the leverage call warrants offer can be high. But when the gains are big, the losses can be big too!

If the price drops by RM1, the percentage loss for the share price would be 10%, while the loss on the call warrant could drive the value close to zero. The large drop could bring the settlement price lower than the exercise price, resulting in a zero payout.

Yes, call warrants can offer a smart addition to an investor's portfolio, but due to their risky nature, call investors need to be attentive to market movements and informed before making their investment decisions.

Happy investing!

URL: http://biz.thestar.com.my/news/story.asp?f...01&sec=business

The European markets are still doing great now. In GREEN zone.

DJIA starts the day with:

13,635.50 +15.61 +0.11%

Nestle denies it's being taken private

PETALING JAYA: Nestle (M) Bhd has refuted market talk that it would be taken private.

Chief financial officer Stephane Alby said there was no intention for Nestle to go private in the foreseeable future.

"The rumour is without any fundamentals. Nestle is happy to be a public-listed company that delivers values to its shareholders," Alby told StarBiz yesterday.

The speculation of privatisation had swung Nestle's share price in the past two trading days.

The foodstuff maker, which is hardly traded, saw its share price soar RM6.50, or 25.5%, to an historic high of RM32 on Thursday.

The stock however opened lower at RM28 yesterday and closed at RM26.25. It is down RM5.75, or 18%, against Thursday's closing.

Switzerland-based Nestle S.A is the largest shareholder of Nestle Malaysia, with a 72% stake, followed by the Employees Provident Fund with 7.5% and Valuecap Sdn Bhd, 1.6%.

Given the slew of privatisation deals this year, dealers said there was ongoing speculation over the next company that was ripe for such a corporate exercise.

Many private equity funds are seeking investment opportunities to park their money in companies that have solid track records.

Furthermore, there are more alternatives in the capital market for companies that have grown to a certain scale to raise funds, besides equity.

This made privatisation more tempting than before, merchant bankers said.

Stocks that are undervalued and inactive are normally seen as suitable targets, much as cash-rich companies.

Dealers noted that the sharp rise in Nestle's share price on Thursday was mainly due to trading in the final five minutes.

Only 100 shares were traded at RM32 and another 100 at RM31.50.

Dealers did not rule out the possibility of year-end window-dressing activities for institutional investors to close their investment book at high closing prices.

URL: http://biz.thestar.com.my/news/story.asp?f...41&sec=business

Nobody has interest over this IPO?

Tasco sees 16% rise in net profit on expansion plan

KUALA LUMPUR: Trans-Asia Shipping Corp Bhd (Tasco) expects 16% rise in net profit for its financial year ending Dec 31, 2008 (FY08).

This is following the expansion of its facilities in a new logistics centre and the acquisition of a warehouse.

Managing director Lee Check Poh said the company would build a logistics complex in Bangi and acquire a warehouse in Port Klang as part of its expansion plan.

"The logistics complex would cost RM10mil and the warehouse about RM8.5mil," he said at the launch of the company's prospectus yesterday.

He said the acquisition of the warehouse, expected to complete by March, would reduce the group's rental expenditure by RM2mil per year.

Tasco, scheduled to list on Bursa Malaysia main board on Dec 28, expects its expansion plan to reduce storage constraints and lower operation costs.

This is in line with its strategy to strengthen its market position in Bangi and Port Klang.

Tasco will make an offer for sale of 25.2 million shares at RM1.10 each.

Of these, five million will be offered to the public, 5.2 million to eligible directors, employees and business associates and subsidiaries, and another 15 million by way of private placement.

The flotation is expected to raise RM27.72mil, of which RM18.5mil will be used to expand its facilities, RM1mil to upgrade computer systems, RM5.82mil for working capital and RM2.4mil for listing expenses.

Tasco expects an increase of 3% in net profit to RM12.78mil for FY07 following higher demand for its air cargo services.

Tasco registered a net profit of RM12.41mil on revenue of RM354.86mil for FY06.

URL: http://biz.thestar.com.my/news/story.asp?f...85&sec=business

Good day for DJIA:

13,727.03 +101.45 +0.74%

You have no interest doesn't mean that others will have the same thought and feeling as you. Some people like great risk and excitement.

European markets are still in RED zone now ...

FTSE 100 6,532.20 -33.20 -0.51%
DAX 7,998.78 -34.58 -0.43%
CAC 40 5,722.70 -28.22 -0.49%

Dow Jones starts the day with:

13,735.73 +8.70 +0.06%

TM to pay RM1.6bil as special dividend

KUALA LUMPUR: Telekom Malaysia Bhd ™ intends to return RM1.63bil to shareholders as part of its de-merger programme.

The company will pay a special cash dividend of 65 sen for the financial year ending Dec 31.

After the de-merger of its fixed-line operations, tentatively called FixedCo, TM plans to adopt a dividend policy of a minimum RM700mil or up to 90% of normalised net profit, whichever is higher.

The group currently pays out between 40% and 60% of its profit after tax and minority interest as dividend.

TM chairman Tan Sri Md Radzi Mansor told a press briefing yesterday that the board had approved the final terms of the de-merger, paving the way for the exercise to be completed in the second quarter 2008.

"We are closer now to capturing de-merger benefits which will enable us to accelerate operational improvements and growth and further unlock shareholder value.

"In addition, with a commitment to actively manage capital requirements and shareholder returns, the board has approved to return RM1.63bil to shareholders via a special cash dividend,'' he said.

The de-merger is aimed at spinning off TM's its faster growing mobile-phone services business as a separate listed entity.

The final terms involve an internal restructuring that will see a transfer of RM7.8bil in assets at book value within the group that will split TM International from Telekom Malaysia Bhd.

The transactions are:

·Fibrecomm Sdn Bhd, which is 51% owned by Celcom (M) Bhd, will be sold to TM for RM33mil;

· Celcom will be transferred from Telekom Enterprise Sdn Bhd to TM International for RM4.68bil;

· Redeemable preference shares in SunShare Investments Ltd, the investment vehicle for holdings in MobileOne Ltd of Singapore, will be sold to TM International for RM141mil;

· TM will transfer its 3G licence to Celcom for RM40mil cash to be paid by for Celcom; and

· TM International will settle net inter-company balances of about RM3bil owed to TM.

In addition to the capital repayment, TM confirmed a one-for-one distribution of shares from TM International to TM's current shareholders.

TM group chief executive officer Datuk Seri Abdul Wahid Omar said the group also planned to seek shareholders' mandate for TM International to issue up to 10% of its enlarged share capital after the de-merger to facilitate fund-raising opportunities.

An analyst said the RM1.63bil special cash dividend to shareholders and the more aggressive dividend payout policy for the fixed line business would be positive for the counter. "The share price will rise on the news, that's a given," he said.

URL: http://biz.thestar.com.my/news/story.asp?f...32&sec=business

DJIA is starting to lose its momentum:

13,710.21 -16.82 -0.12%

Uncle Bernanke better makes it to be a good news, DJIA cannot substain anymore and keeps on sliding down:

13,702.32 -24.71 -0.18%