The week at a glance 3 July 2016

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TA03494Sabah & Sarawak

SapuraKencana signs gas sales agreement for B15 field

SapuraKencana Petroleum Bhd (SapuraKencana) has recently entered into a gas sales agreement with Petroliam Nasional Bhd (Petronas) in relation to the production of gas from the B15 gas field.

The oil and gas (O&G) company in a filing to Bursa Malaysia yesterday said its wholly-owned subsidiary, SapuraKencana Energy Sarawak Inc (SKE), has inked the SK310 upstream gas sales agreement for gas production on June 23 between Petronas as gas buyer and the SK310 production sharing contract (PSC) contractors, which are joint sellers.

 

Timber stocks gain on weakening ringgit via Brexit

Analysts are keeping their overweight stance on the timber sectors, particularly for Sarawakian moguls Jaya Tiasa Holdings Bhd (Jaya Tiasa) and Ta Ann Holdings Bhd (Ta Ann) as both stocks will benefit from the weakening ringgit stemming from news of the UK’s decision to leave the EU.

The team at AmInvestment Bank Bhd (AmInvestment Bank) broadly believed both stocks were undervalued compared to plantation stocks.

 

Government increases funding for Sapangar bay container port expansion

The Federal government has increased funding by RM333.51 million for the Sapangar Bay Container Port Expansion Programme, bringing the revised project cost to RM1.13 billion.

In a filing to Bursa Malaysia, Suria Capital said the increase in funding was due to the recommendation of the Value Management Lab for the Sabah Development Corridor project.

 

CCM exits fertiliser business with divestment of operations in East Malaysia

Chemical Company of Malaysia Bhd (CCM) has announced the divestiture of its fertilisers operations in Sabah and Sarawak, marking its exit from the fertiliser business.

CCM has entered a conditional share sale agreement worth RM48.55 million with Hextar Fertilizers Group Sdn Bhd (Hextar) for the disposal of its collective 100 per cent equity interest in both CCM Agriculture Sdn Bhd (CCMAG) and CCM Agriculture (Sabah) Sdn Bhd (CCMAGS) and certain trademarks relating to the Cock’s Head brand.

 

National

REITs a safe-haven during uncertain investment period

Real estate investment trusts (REITs) are perceived as a safe-haven for investments during times of uncertainty amid increased volatility in financial markets.Analysts believed REITs listed on Bursa Malaysia offer investors an alternative investment and diversification during times of unfavourable financial markets movement especially following Brexit in which the UK voted to leave the European Union.

 

Top Glove debuts on SGX

Top Glove Corporation Bhd (Top Glove) has successfully made its trading debut on the Mainboard of the Singapore Exchange Securities Trading Ltd in Singapore on Wednesday.

The world’s largest rubber glove manufacturer in a statement said it has undertaken the secondary listing exercise on SGX with the aim of adding and creating value for its shareholders and stakeholders.

 

RHB Bank Group completes corporate restructuring

RHB Banking Group completed its corporate restructuring exercise when RHB Bank Bhd assumed the listing status of RHB Capital Bhd on the main market of Bursa Malaysia on Wednesday.

At the opening bell, its shares opened at RM4.64, a discount of five sen against the reference price of RM4.69, with 4,100 shares changing hands.

 

HSS engineers aims to raise RM31.91 mln from IPO

HSS Engineers Bhd, an engineering and project management services provider, aims to raise gross proceeds of RM31.91 million from its initial public offering (IPO).

Executive director Datuk Kunasingam Sittampalam said about 75 per cent of the proceeds would be utilised for the group’s expansion plan into India

and future ventures into the provision of support services for the water and power sectors in Malaysia.

 

Malaysia Airlines focuses on four areas to regain pride, says new CEO

Malaysia Airlines will remain focused on its turnaround plan, says its newly-appointed chief executive officer Peter Bellew. Vowed to regain the national carrier’s rightful place as the nation’s pride, Bellew said the emphasis would be given to four areas – “fly smart”, “funding”, “fix it” and “family”.

MISIF alarmed with another natural gas price hike

The Malaysian Iron and Steel Industry Federation (MISIF) expressed its disappointment and alarm yesterday with regards to another natural gas price increase as announced by the Energy Commission. The average gas tariff will be revised upwards by RM1.52 per one million British thermal unit (MMBtu) or 5.95 per cent from RM25.53 per MMBtu to RM27.05 per MMBtu for  the non-power sector, including steel producers, in Peninsular Malaysia, with effect from July 15, 2016.