Wall St bounces back after Chicago PMI

NEW YORK: US stocks turned positive after a weak open and added to gains on Wednesday after Midwest business activity grew more than expected. The Dow Jones industrial average gained 21.17 points, or 0.21 per cent, to 9,891.47.

The Standard & Poor's 500 Index rose 4.60 points, or 0.44 per cent, to 1,045.84. The Nasdaq Composite Index added 16.80 points, or 0.79 per cent, to 2,151.98. The Institute for Supply Management-Chicago business barometer fell to 59.1 in June from 59.7 in May, and economists had forecast a June reading of 59.0.

But the employment component of the index rose to 54.2 from 49.2 in May, slightly offsetting the negative sentiment brought by a much lower than expected number of jobs created in the private sector, as showed in a separate reading.

Hai-O: MLM division slows down MP (Under Review)

4QFY10 Results

- FY10 core net profit of RM70.3m (+34.4% yoy) was in line with our but below consensus. Proposed final dividend of 10 sen (less tax) and single tier dividend of 4.5 sen, bringing FY10 gross dividend to 21.7 sen, below our expectations of 24.2 sen. This translates to net payout of 46.6%, below the company’s guidance of 50%.

- 4Q10 MLM division results came in below management’s internal target, due to the company’s more stringent rules on new membership recruitment coupled with hike in interest rates, which affected the growth of new membership recruitment. (Highlighted in our report dated 21 May 10).

- The more stringent MLM ruling, could affect membership recruitment drive for another 3-6 months, which could lower member’s productivity and even result to memberships being revoked. Following this, we have cut our MLM division’s net membership growth to 0/mth (from 1,500) for FY11 and 1,000/mth (from 1,500) for FY11. We have also reduced our revenue/distributor growth to -5% (from flat) in FY11 but maintained it at 1% for FY12.

- Following the above changes, adjusting for FY10 results and reducing our net dividend payout to 45% (from 50%) following the lower payout in FY10, our earnings forecasts are reduced by 13-23% for FY11-12.

- We roll forward our valuation target to CY11 (from FY11). As such, our fair value has now been reduced to RM4.06 (from RM4.30) based on unchanged 10x CY11 EPS. Our recommendation for the stock is currently under review pending a company briefing later today.

Berjaya Sports Toto (RM4.33; Buy; Price Target: RM4.80; BST MK)

Bumper dividends may mitigate sports betting
disappointment
The government has retracted the approval for the issuance
of a sports betting licence to Ascot Sports (supposed to be
injected into Berjaya Corp).
Impact to Berjaya Sports Toto (BST) should be minimal (1-
2% of earnings), given their agency role.
Maintain Buy on BST and TP of RM4.80, based on dividend
discount model. Although there could be some negative
knee-jerk reaction, share price may be supported by
expectation of bumper dividends. BST will be embarking on
a RM800m medium-term note programme, which could be
used to part-finance parent Berjaya Land’s

Stocks to watch: EON Cap, SapuraCrest, Gamuda, SEGi

KUALA LUMPUR: The weaker overnight close on Wall Street due to the uncertain economic prospects is expected to see investors retreating to the sidelines and taking profit on Friday, June 25.

In New York, the broader S&P 500 fell for the fourth straight day on Thursday, as fresh signs of consumer weakness and worries about stringent financial regulation provoked investors to unload positions.

The S&P 500 has lost 3.8% in four days. The Dow Jones industrial average dropped 145.64 points, or 1.41%, to 10,152.80. The Standard & Poor's 500 Index fell 18.35 points, or 1.68%, to 1,073.70. The Nasdaq Composite Index lost 36.81 points, or 1.63 percent, to 2,217.42.

At Bursa Malaysia, stocks to watch include EON CAPITAL BHD [], SAPURACREST PETROLEUM BHD [], GAMUDA BHD [], SEG INTERNATIONAL BHD [], BERJAYA LAND BHD [] and TOP GLOVE CORPORATION BHD [].

The Edge FinancialDaily reports on Friday that an independent financial adviser appointed by the board of EON Capital Bhd (EONCap) recommended a "fair and reasonable" takeover offer price of RM6.18 billion, or RM8.91 per share.

This based on details in a law suit filed by Primus (M) Sdn Bhd on Monday.

SapuraCrest Petroleum's net profit for the first quarter ended April 30, 2010 (1QFY11) almost doubled to RM50.69 million from RM25.66 million a year ago, mainly due to higher contribution from activities in the installation of pipeline and facilities and the drilling division.

Revenue dropped 6.4% to RM670.35 million from RM716.18 million previously as a result of lower activities in the drilling and marine services divisions.

Earnings per share for 1QFY11 stood at 3.97 sen versus 2.03 sen in the same quarter last year.

Gamuda posted a net profit of RM73 million or 3.62 sen per share in the third quarter ended April 30, 2010 (Q3FY10), 57.7% higher than RM46.3 million in the corresponding period last year.

The higher earning was due to better contributions from all business divisions. Revenue, however, dropped 11.8% to RM511.2 million from RM579.4 million. Gamuda declared a second interim dividend of six sen per share less 25% tax payable on Aug 18.

For the nine-month period, net profit jumped 35% to RM204 million, or 10.12 sen per share, versus RM150.4 million previously while revenue came in at RM1.74 billion, down a marginal 2% from RM1.78 billion in 2009.

SEG International's share price surged to a 5 1/2 year high of RM4.75 prompting a query from Bursa Malaysia Securities Bhd over the share price movement.

It opened at RM4.49 and ended the day at RM4.59, up 10 sen on some profit taking after the recent price surge.

Bursa Securities had queried the company over the sharp rise in price in the shares recently. On Wednesday, the share price surged 42 sen to RM4.49.

Berjaya Land's share price surged to a two-year high of RM4.45 yesterday after it reported a strong set of earnings and announced a corporate exercise.

It rose 38 sen to RM4.45 with 684,100 shares done. The share price was the highest since Aug 6, 2008.

Top Glove, the world’s largest rubber glove manufacturer, foresees its net profit for the financial year ending Aug 31, 2010 (FY2010) growing 70% to 80% from FY2009, said its chairman, Tan Sri Lim Wee-Chai.

Stocks Soros Is Holding

George Soros had been an extremely successful hedge fund manager for over 20 years before gaining fame (or infamy, depending on your taste in brandy) for taking a $10 billion short position against the British pound in 1992. He is said to have "broken the Bank of England", and is believed to be the first person to earn a billion dollars in a single day. (Find out more about this epic trade in The Greatest Currency Trades Ever Made.)

In recent years, Soros has evolved into more of a philanthropist/activist/philosopher, but he remains the Chairman of Soros Fund Management, which is active in stocks, bonds, commodities and derivatives trading. And thanks to the mandatory 13F filing requirements of the SEC, investors can get a quarterly peek into where Soros & Co. are positioning their funds. Today we'll look at the most recent filing to see what positions have been beefed up and which have been whittled down.

The Investing Philosophy
Soros has been outspoken on his long-term economic views for decades. He feels that financial markets are unstable by nature, and that the main goal of public policy should be to stabilize markets rather than promote over-leverage and facilitate bubbles. Soros likes to scan wide, using macro analysis to find trends, and then invest hard and heavy when he feels conviction. He is a keen student of geopolitical affairs, globalization, and currency fluctuations, but has also admitted to using "animal instincts" when placing his bets. (For related reading, check out Top-Down Analysis: Finding The Right Stocks And Sectors.)

Soros had been prophesying the bursting of a global "super bubble" as early as 1987, discussing it at length in several publications, most notably in his May 2008 book The New Paradigm for Financial Markets. In his words, "I have a record of crying wolf ... [After] the boy cried wolf three times... the wolf really came".

Recent Additions & Largest Positions
According to his fund's latest filings with the SEC (as of March 31), Soros has been adding to his already large overweight positions in the oil & gas sector. His largest stock holding remains Brazilian oil giant Petrobras, which trades in the U.S. via an American Depositary Receipt (ADR) with the ticker symbol PBR. Petrobras is a vertically integrated oil company, participating in exploration, production, refining and retailing of crude oil and gas.

Soros' funds also added to positions in Canadian energy producer Suncor Energy (NYSE:SU), and Houston-based oil & natural gas producer Petrohawk Energy (NYSE:HK). All told, Soros has about 30% of his long investments the oil & gas space - more than twice the weighting of the S&P 500 index.

Smaller positions that saw buying during the first quarter include Apple Inc. (Nasdaq:AAPL), Goodyear Tire & Rubber (NYSE:GT), Lawson Software (Nasdaq:LWSN), CVS Caremark (NYSE:CVS) and DirecTV (Nasdaq:DTV).

Gold Remains on Top
Precious metal remains the number-one overall holding, as Soros has nearly 10% of his assets invested the SPDR Gold Trust ETF (GLD). He also owns call options which could increase his ownership stake in the coming months.

Even though Soros has stated publicly that gold could fall prey to bubble mania, he remains invested because of his general lack of faith in the global economic recovery and efforts undertaken by the world's largest economies to support currencies like the dollar and euro. The large gold position is further evidence of Soros' willingness to take a large bet in what could be a risky trade. He feels he will know when to get out, so why not make some profit on the mania before the bubble bursts? (Looking for a hedge? Check out A Beginner's Guide To Precious Metals.)

Financial Stock Rotation, Dipping into Consumer Waters
While Soros sold out of his large Citigroup holding during the first quarter - dumping over 94 million shares of the megabank - positions were built up in JPMorgan Chase & Co. (NYSE:JPM), U.S. Bancorp (NYSE:USB) and PNC Financial Services (NYSE:PNC).

And while consumer stocks remain the lowest weighted sector in Soros' holdings, there are some proverbial toes dipping back into the water, with recent additions to stocks such as Wal-Mart (NYSE:WMT), Best Buy Co. (NYSE:BBY), Amazon (Nasdaq:AMZN) and True Religion Apparel (Nasdaq:TRLG).

The Bottom Line
Keep in mind that not every bet George Soros makes - or any other hedge fund manager for that matter - is made public to the SEC. Only "long" investments need to be reported, so we can't be sure how much hedging and shorting might be going on behind the scenes. But the overall trend that Soros seems to be following is one of weaker currencies, higher inflation and higher energy prices. It's not the cheeriest of outlooks, but the beauty of investing is that you can profit from any outcome if you have conviction behind your vision - and the stomach to see it through. (Find out more in George Soros: The Philosophy Of An Elite Investor.)

Stocks to watch: Shin Yang, BLand, Axiata, EON Cap

KUALA LUMPUR: Key regional markets are expected to see another day of cautious trade on Wednesday, June 23 after Wall Street fell overnight in yet another late-day selloff.

US stocks fell more than 1% as unexpectedly poor housing figures and the puncture of a key technical level sapped buying interest, according to Reuters.

Stocks marked time in a thinly traded session until the S&P 500 fell through its 200-day moving average, which had been a basis of support in the last few days.

The Dow Jones industrial average dropped 148.96 points, or 1.43 percent, to 10,293.45. The Standard & Poor's 500 Index fell 17.86 points, or 1.60 percent, to 1,095.34. The Nasdaq Composite Index lost 27.29 points, or 1.19 percent, to 2,261.80. TheS&P 500 ended below 1111.33, the 200-day moving average.

At Bursa Malaysia, stocks to watch include Shin Yang Shipping Corporation, which will be listed on the Main Market, BERJAYA LAND BHD [], Axiata Group Bhd, Ingress Corporation and EON CAPITAL BHD [].

Miri-based Shin Yang Shipping’s offer price is RM1.28. Of the RM176 million raised in its initial public offering, the proceeds will be used to part fund the building of seven new vessels, expand existing shipyard and build another shipyard in Tanjung Manis, Sibu.

The 24.0 million shares allocated for public subscription was oversubscribed by 1.35 times. There were 3,919 applications for 56.5 million shares.

Berjaya Land Bhd and South Korea's Jeju Free International City Development Center (JDC) had decided not to go ahead with the proposed US$200 million theme village after nearly two years.

BLand had allowed the conditional memorandum of agreement dated Aug 20, 2008 on the themed village project, to lapse and was no longer effective.

Instead, both parties decided to focus their efforts on the development of its current joint venture development project in Jeju with JDC. This project is a resort type residential and commercial complex development project at Yerae-dong, Seogwipo-si, Jeju Island undertaken by Berjaya Jeju Resort Ltd.

Axiata Group is firming up the details to issue sukuk bonds worth RM4.2 billon to refinance its current debts due to expire and hopes to announce details by end-July. The group aims to term out its loans by five to seven years.

The sukuk tenures will be five, seven and 10 years respectively. The group was in the midst of drawing up a new dividend policy, which it expects to announce at the end of this third quarter.

Ingress said in the first quarter ended April 30, net profit jumped to RM10.47 million from only RM587,000 a year ago. Revenue was RM180.41 million versus RM151.67 million.

The better performance was underpinned by the automotive division which recorded revenue of RM161.7 million and profit before tax of RM11.0 million compared with revenue of RM126.3 million and pre-tax profit of RM2.4 million a year ago.

When compared with the previous quarter, the group recorded a 10% increase in revenue with a profit before tax of RM15.3 million against the immediate preceeding quarter profit before tax of RM4.5 million.



However, investors should note the company has borrowings of RM310 million. It is also in the process of obtaining consent from other existing lenders and various authorities to refinance its sukuk.

Meanwhile, the board of directors of TRADEWINDS (M) BHD [] seemed unfazed by the high debt and corporate governance issues brought up by minority shareholders at the AGM on Tuesday.

Issues raised were the releasing of the RM10 million donation to Syed Mokhtar-linked Albukhary University before prior approval from shareholders.

Minority shareholders were said to be discontented with the lack of transparency at board level and lamented that the board was not serious about corporate governance. There were also concerns about Tradewinds' highdebt and recoverability of its receivables.

Tradewinds' total debt as at end March 2010 stood at RM2.9 billion with gearing ratio of about 1.8 times. Of the total, some 53% or RM1.6 billion are short term borrowings. According to its annual report, for FY09 ended Dec 31, some RM1.6 billion of its borrowings will mature in less than a year.



In EON Cap, the company said it is unlikely the petition sought by its 20% stakeholder, Primus Pacific Partners Ltd, would have any material impact on the operations, business and financial position of the EON Cap and its subsidiaries.

EON Cap said it was only named as a nominal respondent in the petition filed by Primus (Malaysia) Sdn Bhd on behalf of Primus Pacific

Top Story : Shifting Trends – Six months on, focus is back on risk

Market Update

- We are nearly six months into 2010, and the focus is clearly back on risk. We believe investors’ confidence especially for exporters has been shaken by economic concerns in Europe and China, while incidents such as BP’s deepwater drilling accident in the Gulf of Mexico and Australia’s proposed resources tax will not help the outlook for resources sectors.

- On a sectoral basis, we note that the timber sector has been one of the hardest hit in the 2Q10 so far. Building materials, oil & gas stocks and glove manufacturers generally also posted double-digit declines for the 2Q. We note that these sectors are heavily driven by external factors.

- Among the companies under our coverage, we note that Sino Hua An, ILB, Parkson, Unisem and MPI have the highest earnings exposure to China, while YTL Power, KNM and MPI have the highest earnings exposure to Europe. For now, we do not anticipate any significant downgrades to our earnings forecasts for these companies.

- We reiterate our view that domestic plays with little or no exposure to overseas markets are likely to be more resilient in the current market environment. In our view, these stocks include Maxis, TNB, PLUS, Allianz, AEON, KFC, KPJ and B-Toto.

- In the absence of major catalysts, risk premiums will likely continue to drift in the near term. We downgraded our sector call on oil & gas today, and the plantation stocks are also under review. With shortened investment horizons, and expected volatile markets over the next 3-4 months, the key would be to re-balance portfolios during market pullbacks. We have highlighted the more risky sectors where we see potential earnings disappointment, and we continue to advocate a bottom-up investment strategy in the near term.

China signals plans for stronger yuan

China said it will allow a more flexible yuan, signaling an end to the currency's two-year-old peg to the US dollar a week before a Group of 20 summit.

The decision was made after the world's third-largest economy improved, the central bank said in a statement on its website, without indicating a timeframe for the change. It ruled out a one-time revaluation, saying there is no basis for ``large-scale appreciation,'' and kept the yuan's 0.5 per cent daily trading band unchanged.

``The recovery and upturn of the Chinese economy has become more solid with the enhanced economic stability,'' the People's Bank of China said. ``It is desirable to proceed further with reform of the renminbi exchange-rate regime and increase the renminbi exchange-rate flexibility.''

The move may help deflect criticism from President Barack Obama and other G-20 leaders, who have blamed China for relying on an undervalued currency to promote exports. It also affirms Treasury Secretary Timothy F. Geithner's policy of encouraging China to loosen restrictions on the yuan while resisting calls in Congress for trade sanctions. Geithner in April delayed a report to lawmakers assessing whether China or any other country is unfairly manipulating its exchange rate.

``This is another small victory for Tim Geithner,'' Goldman Sachs's Chief Global Economist Jim O'Neill said in an interview with Bloomberg Television in St. Petersburg, Russia.

The Australian dollar is buying about 5.9 yuan. A stronger yuan may slow the Chinese economy as its exports become less competitive in international markets. On the other hand, China is likely to import more, and its currency will make overseas investments by Chinese companies - such as in Australia's resources and property - more attractive.

`China bashing'

``It makes it a lot more difficult for Washington and Congress to do China bashing,'' O'Neill said. ``The Chinese are increasingly confident they can make this adjustment to a domestic-driven economy rather than the one relying on exporting low-value-added stuff to the rest of the world.''

Geithner, in a statement, praised China's decision and added that ``vigorous implementation would make a positive contribution to strong and balanced global growth.'' The Obama administration received advance notice of the announcement, US officials said.

China, by moving on its currency ahead of the G-20 meeting June 26-27 in Toronto, has shifted attention to the budget deficits of developed nations, said Eswar Prasad, a senior fellow at the Brookings Institution in Washington.


``It can now argue that the G-20 leaders should focus on the major determinants of global imbalances, especially the buildup of debt in advanced economies,'' said Prasad, a former head of the China division at the International Monetary Fund. The move ``also serves to acknowledge that they have an important responsibility to the international community.''

Helping exporters

Chinese authorities have prevented the currency from strengthening since July 2008 to help exporters cope with sliding demand triggered by the global financial crisis.

The currency appreciated 21 per cent in the three years after a peg to the US dollar was scrapped in July 2005 and replaced by a managed float against a basket of currencies including the euro and the Japanese yen. The yuan is a denomination of China's currency, the renminbi.

``This move is a vote of confidence in the global recovery and a reaffirmation of Beijing's longstanding commitment to a flexible currency regime,'' Stephen Roach, chairman of Morgan Stanley Asia Ltd., said in an e-mail. ``This shift, however, is not a panacea for an unbalanced global economy. Surplus savers like China still need to take additional actions to stimulate internal private consumption.''

Import costs

Companies focused on the Chinese market, including Beijing-based computer maker Lenovo and Shanghai-based China Eastern Airlines, said in March that they would gain from lower import costs and stronger consumer purchasing power should the yuan appreciate. Textiles makers would stand to lose the most and some would ``face bankruptcy'' with profit margins as low as 3 per cent, Zhang Wei, vice chairman of the China Council for the Promotion of International Trade, said in March.

A more flexible currency would give China more freedom to decide on monetary policy and reduce inflationary pressures by lowering import costs, the World Bank said in a report last week.

China's inflation rate jumped to a 19-month high of 3.1 per cent in May, higher than the government's full-year target of 3 per cent. Central-bank dollar buying has left the nation with $US2.4 trillion in currency reserves, the world's largest holding.

`Crisis mode'

``China has ended its crisis-mode exchange-rate policy as the economy recovers strongly and inflationary pressure continues to build,'' Li Daokui, an adviser on the People's Bank of China's policy board, said in an interview. ``The yuan's future trend depends on the euro's movement, and the trends of other major currencies.''

Yuan 12-month forwards rose the most this year two days ago, gaining 0.5 per cent to 6.7125 per US dollar. The contracts reflect bets the currency will appreciate 1.7 per cent from the spot rate of 6.8262. They had been pricing in appreciation of 3.2 per cent on April 30 before a slump in the euro and a worsening of Europe's debt crisis eased pressure for appreciation.

``The central bank's statement means China's exit from the dollar peg,'' said Zhao Qingming, an analyst in Beijing at China Construction Bank, the nation's second-biggest bank by market value. ``If the euro continues to remain weak, it could also mean that the yuan may depreciate against the dollar.''

Deadline postponed

Geithner postponed an April 15 deadline for a semiannual review of the currency policies of major US trading partners, which might have resulted in China being labeled a currency manipulator. China owned $US900 billion of US Treasuries as of April, the largest foreign holdings.

China's exports jumped 48.5 per cent in May from a year earlier, the biggest gain in more than six years, according to customs bureau data June 10. Exports exceeded imports by $US19.5 billion, from $US1.68 billion in April and a deficit of $US7.24 billion in March that was the first in six years.

China's narrowing balance-of-payments gap indicates that there's no basis for ``large-scale appreciation'' by the yuan, the central bank said in the English version of its statement. The Chinese version said no ``large-scale volatility.''

Twelve of 19 respondents surveyed by Bloomberg in April predicted the central bank would allow the currency to float more freely this quarter, while the rest saw a move by year-end. Eleven ruled out a one-time revaluation, while 15 predicted a wider daily trading range.

``Continued emphasis would be placed to reflecting market supply and demand with reference to a basket of currencies,'' the statement said. That suggests a looser link to the dollar, said Ben Simpfendorfer, chief China economist at Royal Bank of Scotland Group Plc, in Hong Kong.

``China has to offer something ahead of the G-20,'' he said. ``Greater flexibility allows them the option to appreciate against the dollar, perhaps during periods of dollar weakness.''

Bloomberg News

Eye on Stock Tanjung OFFS

THE entry of Ekuiti Nasional Bhd (Ekuinas) into Tanjung Offshore Bhd as a new shareholder recently has been viewed by market analysts as a major boost for the latter.

For one, it provides the oil and gas services and equipment provider easier access to funding.

Ekuinas, being a government-linked private equity fund, is also said to be able to provide the right connections for Tanjung to secure more lucrative deepwater projects in the coming future, and this could help strengthen the company’s position as a formidable player in the oil and gas industry.

Tanjung managed to gain a marginal one sen to close at RM1.20 per share on Thursday after a momentary suspension in the morning prior to the announcement of the entry of Ekuinas as a shareholder.

Tanjung posted a net profit of RM3mil in the first quarter ended March 31.

This was a decline of about 70% year-on-year. Revenue for the period also slid to RM127.5mil compared with RM186.9mil a year ago.

Nevertheless, the company is expected to post stronger earnings in the subsequent quarters, as contributions could flow from the new contracts awarded to its three new vessels.

Meanwhile, the company is also on track in expanding its fleet capacity, with plans to buy four to five more new vessels – mostly platform and utility – this year. — By Cecilia Kok

Genting seeks US casino investments

Genting Malaysia Bhd, the casino owner that parlayed a single hilltop site near Kuala Lumpur into gambling resorts in Singapore, the Philippines and the UK, is now looking for investments in the US.

“Genting Malaysia is aggressively searching for opportunities to invest in the US casino gaming market,” Justin Leong, head of strategic investments and corporate affairs at group parent Genting Bhd, said in an interview in New York. “Our strategy is building a US presence.”

Armed with US$1.7 billion in cash and debt free, Genting Malaysia is seeking acquisitions, new markets and potentially a strategic partnership in the US, Leong said. The Kuala Lumpur- based company, which said this month it may bid to develop a slots casino at Aqueduct Racetrack in New York City, first invested in the US sector last year, buying MGM Mirage bonds.

“It’s unlikely to be a single asset,” Leong said. “If we were to acquire something, it’s more likely to be a portfolio of assets or a substantial stake in a company.”
Genting Malaysia is also looking at developments and new gambling jurisdictions opening in the US, Leong said.

The company bought MGM Mirage’s secured bonds in May 2009 when the Las Vegas Strip’s biggest casino owner raised cash to avoid a potential bankruptcy. Genting Malaysia has invested in every capital issue by Las Vegas-based MGM since, Leong said.

“Genting Malaysia’s first foray into the US casino market was investing in MGM, and that strategic relationship continues,” said Leong, 32. The bid for Aqueduct “is another step.”

Read more: Genting seeks US casino investments http://www.btimes.com.my/Current_News/BTIMES/articles/20100614090558/Article/index_html#ixzz0qoV5y9AA

Boustead, Pharmaniaga up in early trade

KUALA LUMPUR: BOUSTEAD HOLDINGS BHD [] and PHARMANIAGA BHD [] share prices rose on Monday, June 14 on resuming trade after Boustead launched a RM534 million acquisition of Pharmaniaga Bhd to buy an 86.81% stake from UEM Group Bhd.

At 9.22am, Boustead added nine sen to RM3.67 with 62,600 shares done while Pharmaniaga gained 42 sen to RM5.52 with 15,500 shares traded.

The move is seen as crucial for Boustead as it seeks to strengthen its pharmaceutical business.

The offer price works out to RM5.75 per share or a 12% premium to its last traded price on Thursday of RM5.10.

AmResearch maintains overweight call on O&G sector

KUALA LUMPUR: AmResearch has maintained its overweight call on the oil and gas sector given the renewed expectations of a re-acceleration in the country's oil and gas capital expenditure.

The research house has buy calls on SapuraCrest, Alam Maritim Resources, Kencana Petroleum, Wah Seong Corporation, Tanjung Offshore, Dialog Group and Petronas Gas.

"Our top pick continues to be SapuraCrest given its huge locked-in order book of almost RM11 billion, which should sustain its earnings for the next three years.

"We maintain our sell call in KNM Group given its poor earnings deliverance," it said in a note Monday, June 14.

IPhone 4.... How do you THing....