The week at a glance 29 May 2016

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TA03055Sabah & Sarawak

Dayang keen to maintain listing status of PPB

Dayang Enterprise Holdings Bhd, which is keen to maintain the listing status of its unit, Perdana Petroleum Bhd, will divest at least 25 per cent of the group’s total stake. Integrated offshore service provider Dayang currently owns a more than 98 per cent equity in PPB.

 

CCK acquires stake in animal feed manufacturer Gold Coin

CCK Consolidated Holdings Bhd has entered a Joint Venture Shareholders Agreement with Gold Coin Malaysia Group Sdn Bhd for the acquisition of a 27.2 per cent equity stake in Gold Coin Sarawak Sdn Bhd, one of the leading animal feed manufacturers in Sarawak. Pursuant to the agreement, CCK will acquire 2,176,000 ordinary shares of RM1.00 each in GCS for a cash consideration of RM20.672 million from GCMG.

 

Analysts keep neutral call pending Perdana Petroleum’s restructuring

Perdana Petroleum Bhd’s first quarter of financial year 2016 (1QFY16) registered a revenue of RM42 million, while recording a core net loss of RM12 million – dropping both on in yearly and quarterly comparisons. Public Investment Bank Bhd attributed the group’s overall performance to the lower utilisation of vessels at circa 50 per cent this quarter against 76 per cent seen in 1QFY15.

 

WTK sees positive results but below analysts expectations

WTK Holdings Bhd saw its core net profits for the first quarter of financial year 2016 (1QFY16) coming in below expectations as analysts saw lower-than-expected contributions from its timber and palm oil divisions.

 

Naim losing its streak but property segment exceeds expectations

Naim Holdings Bhd (Naim) reported a core net loss of RM13.9 million for the first quarter of 2016 (1Q16) but its property sales exceeded expectations, analysts say. In a filing to Bursa Malaysia, Naim reported that its profit before tax declined substantially to RM5.84 million in 1Q16 compared with RM21.3 million recorded in 1Q15.

 

State encourages further participation in O&G industry

The State Government’s holistic approach in developing the oil and gas industry – placing emphasis on greater opportunities for Sarawakians companies and employment – is the way forward in furthering participation of Sarawakians and local companies in this sector. Minister of Industrial Development and Entrepreneurship, Trade and Investment, Datuk Amar Awang Tengah Ali Hasan said this after a briefing by home-grown public-listed Dayang Enterprise Holding Bhd at its regional headquarters in Miri.

 

National

KLIA Aeropolis expects to attract GDP contribution of RM30 bln

The KLIA Aeropolis development plan, excluding airport terminal operations and expansion, is estimated to attract a gross domestic product (GDP) contribution of about RM30 billion with 56,000 jobs created over a 15-year period. Malaysia Airports Holdings Bhd (MAHB) managing director Datuk Badlisham Ghazali said this projection is based on the economic impact analysis conducted by PricewaterhouseCoopers.

 

Fgv records pre-tax loss of rm70.35 mln for Q1

Felda Global Ventures Holdings Bhd posted a pre-tax loss of RM70.35 million for the first quarter ended March 31, 2016, from a pre-tax profit of RM72.88 million in the same period last year. Revenue, however, rose to RM3.75 billion from RM2.71 billion previously, it said in a filing to Bursa Malaysia. FGV said the slide into the red was mainly due to lower crude palm oil (CPO) production in the palm upstream segment.

 

Proton to return to Chile auto market after 20 years      

Proton Holdings Bhd is set to re-enter the Chilean market with the relaunch of its models here this Saturday after almost a two-decade hiatus. Malaysian Ambassador to Chile Datuk Dr Mohamad Rameez Yahaya said Proton will bring 1,000 units of selected models into the market and expects to generate RM68 million in sales.

 

Asean to evaluate fta potential with eaeu in August

A meeting of ASEAN Senior Economic Officials (SEOM) in August will evaluate the potential of a free trade agreement between the regional grouping and the Eurasian Economic Union(EAEU). Minister of International Trade and Industry Datuk Seri Mustapa Mohamed said Malaysia needs to obtain consensus from among the other ASEAN members first and only then can discussions with Russia and the four other EAEU countries be initiated.

 

Palm oil to rise on El Nino as industry prepares for La Nina

Malaysia’s Felda Global Ventures chief executive Datuk Zakaria Arshad believes that crude palm oil prices will rise in 2016 because of lower yields from the impact of the El Nino weather phenomenon. Palm oil is expected to average RM2,500 per tonne in 2016, up from RM2,275 last year, Zakaria said at a media briefing for Felda’s results. The average is higher than the RM2,400 per tonne forecast in a Reuters poll in February.