Malaysian Market Financial Updates 17 Sept

Share prices on Bursa Malaysia opened lower today, despite an upbeat overnight performance on Wall Street, remained mixed at mid-morning today on lack of fresh local leads.

• The Consumer Price Index, the official barometer used to measure the inflation, is expected to indicate stability in price pressures for the month of August.
• The ringgit opened higher against the US dollar today on improved demand for the local unit, it rose the most in three weeks as a report that China is stepping up economic stimulus tempered concern a slowdown in Malaysia’s second-biggest export market will deepen.
• Malaysia Institute of Chartered Secretaries and Administrators (Maicsa) is proposing that tax breaks be accorded to companies for expenses incurred for good corporate governance compliance.
• Malaysia’s overall media advertising expenditure (adex) rose 8.7% to RM9.13 billion in the first eight months this year, compared with RM8.4 billion in the same period a year ago.
• Hong Leong Investment Bank (HLIB) is upbeat on Fitters Diversified’s maiden venture into PVC-O pipes production, which would strengthen the group’s revenue model.
• The research house said that Fitters will commence with two production lines for PVC-O pipes production in October and the company hopes to capture a 10 per cent market share by end-2015. HLIB is confident that the group’s order book will receive a boost from this.
• HLIB also said the group’s property division will sustain earnings with a 20.2 hectares leasehold project in Rawang.
• HLIB also said the group’s property division will sustain earnings with a 20.2 hectares leasehold project in Rawang.
• The MOU will see the development of urea and ammonia derivatives for the Asian agriculture industry.
• The three parties will undertake a preliminary technical, economic, raw material supply, logistics, infrastructure and utilities study for the development of the petrochemical products.
• Sarawak Cable announced last Friday that it had accepted the conditional offer made by HNG Capital for the proposed acquisition of the latter’s 100 percent stakes in Universal Cable (M) and Leader Cable Industry for RM210 million.
• According to a news report earlier, Sarawak Cable may issue up to 10 percent of new shares to fund the acquisitions and may also borrow RM110 million.
• HNG Capital will guarantee a total pre-tax profit of RM21 million for the two companies for financial year ending 31 December and will pay for any shortfall.