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1 TheEdgeProperty.com THE NEWS. NEW LAUNCHES. LISTINGS. DATA. ANALYTICS ONLY property portal you need
2 FBM KLCI KLCI FUTURES STI RM/USD CPO RM OIL US$ GOLD US$ PP 9974/08/2013 (032820) PENINSULAR MALAYSIA RM1.60 (INCLUSIVE OF 6% GST) FRIDAY MARCH 3, 2017 ISSUE 2361/2017 EVERY FRIDAY! Get your free copy of The Edge Property pullout inside. Download your personal copy at TheEdgeProperty.com FINANCIAL DAILY MAKE BETTER DECISIONS Forbes rich list: Kuok still No 1, Ananda slips to 3rd as Quek climbs 7 HOME BUSINESS 4 HOME BUSINESS BNM keeps OPR on hold as inflation seen higher 4 HOME BUSINESS Silver Bird auditors didn t raise red flag, ex-chairman tells court 7 HOME BUSINESS Maybank names Mohaiyani as first woman chair 8 HOME BUSINESS O&G in limelight for 4Q, but for the wrong reasons 14 HOME Ex-TH Heavy Engineering CEO charged with laundering RM1.57m MUSTAPA: TRUMP S PROTECTIONIST STANCE could be destructive to global trade However, economists say Malaysian exporters may be buffered from its impact. Chester Tay & Sulhi Azman have the story on Page 5. Still less-than-sweet days ahead for MSM 4 HOME BUSINESS
3 2 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY For breaking news updates go to ON EDGE TV Can good design be cheap? The Edge Communications Sdn Bhd ( X) Level 3, Menara KLK, No 1 Jalan PJU 7/6, Mutiara Damansara, Petaling Jaya, Selangor, Malaysia Publisher and Group CEO Ho Kay Tat EDITORIAL For News Tips/Press Releases Tel: Fax: eeditor@bizedge.com Editor-in-Chief Azam Aris Executive Editors Kathy Fong, Jenny Ng, Siow Chen Ming, Ooi Inn Leong, Diana Khoo Associate Editors R B Bhattacharjee, Joyce Goh, Jose Barrock, Vasantha Ganesan Editors Cindy Yeap, Kang Siew Li Assistant Editors Adeline Paul Raj, Tan Choe Choe, S Kanagaraju Chief Copy Editor Halim Yaacob Senior Copy Editor Melanie Proctor Copy Editors Tham Yek Lee, Tham Kid Cheng Art Director Sharon Khoh Design Team Cheryl Loh, Valerie Chin, Aaron Boudville, Aminullah Abdul Karim, Tun Mohd Zafian Mohd Za abah, Noorain Duasa EDITORIAL ADMINISTRATION Manager Katherine Tan Senior Coordinator Maryani Hassan CORPORATE Chief Operating Officer Lim Shiew Yuin ADVERTISING & MARKETING To advertise contact GL: (03) Fax: (03) Chief Commercial Officer Sharon Teh (012) General Manager Kingston Low (012) Senior Sales Managers Fong Lai Kuan (012) Gregory Thu (012) Kamalesan Parama (012) Michael Tan (012) Creative Marketing Chris Wong (016) Head of Marketing Support & Ad Traffic Lorraine Chan (03) advertising@bizedge.com OPERATIONS To order copy Tel: / 8033 Fax: hotline@bizedge.com TheEdgeProperty.com Managing Director/Editor-in-Chief Au Foong Yee Editor Lam Jian Wyn Contributing Editor Sharon Kam Assistant Editor James Chong MARKETING & ADVERTISING Account Director Sharon Chew (012) BUSINESS DEVELOPMENT Senior Manager Elizabeth Lay Banks fined US$321b since financial crisis Tally is set to increase in coming years, says Boston Consulting BY GAVIN FINCH LONDON: Banks globally have paid US$321 billion in fines since 2008 for an abundance of regulatory failings from money laundering to market manipulation and terrorist financing, according to data from Boston Consulting Group (BCG). That tally is set to increase in the coming years as European and Asian regulators catch up with their more aggressive US peers, who have levied the majority of charges to date, BCG said in its seventh annual study of the industry published yesterday. Banks paid US$42 billion (RM billion) Trump strikes a better tone, so what? BY JONATHAN BERNSTEIN WASHINGTON: Donald Trump finally gave a first-class nomination acceptance speech. Unfortunately, he is running about eight months behind what he needs to be doing now. After 40 days of presiding over a remarkably dysfunctional and chaotic administration, Trump did not spend (much) time rehashing the election, bashing the media, or ad-libbing nonsense. There were a few whoppers, but my guess is that for a convention speech addressed to partisans and curious independents, most of the exaggerations and misstatements were relatively normal (*). The bad news is it is not summer 2016, and Trump is not a candidate sketching out broad themes and aspirations. He is the president of the USA. For a president giving one of his few major speeches in support of his legislative agenda, substance matters. Trump came up as short as ever. Whether it was taxes, healthcare, immigration, or infrastructure, the speech was not just light on details; it was almost entirely lacking in them. in fines in 2016 alone, a 68% rise on the previous year, the data showed. As conduct-based regulations evolve, fines and penalties, along with related legal and litigation expenses, will remain a cost of doing business, analysts led by Gerold Grasshoff wrote. Managing those costs will continue to be a major task for banks. The era of ever-increasing regulatory requirements is here to stay, BCG said, despite US President Donald Trump s pledge to roll back the 2010 Dodd-Frank Act that reshaped US banking in the aftermath of the collapse of Lehman Brothers Holdings Inc. The number of rule changes that banks must track on a daily basis has tripled since 2011, to an average of 200 revisions a day, according to the report. Regulation must be considered a permanent rise in sea level not just a flowing tide that will ebb or even a cresting tsunami that will recede, the authors wrote. We expect this theme to hold despite recent political developments in the US. Almost 10 years after the onset of the financial crisis, the banking industry still hasn t completely recovered from the losses it suffered by one measure, BCG said. Bloomberg Which would be okay if Trump already had, say, a healthcare and a tax plan. Or, for that matter, if Republicans in Congress were moving ahead solidly on one or more of his legislative priorities. But none of that is true. Governing is choosing. To the joint session of Congress, Trump made no choices at all. It was an hour plus of cotton candy. I suspect it will get excellent reviews; a lot of pundits who have been brutal to Trump will welcome the chance to praise him, and I suspect everyone is pleased to have the president toss aside his clown act, at least for one night. But it is a sugar high, and there will not be much if anything remaining of it after a few hours. There was simply nothing in this speech to break the deadlock Republicans in Congress are facing on healthcare. Nothing to reconcile Trump s instincts for promising huge tax cuts and huge new spending with budget realities, let alone with his complaints about the debt. He talked big on infrastructure, but we know the Republican leadership in Congress has already indicated they have no interest. Meanwhile, there was hardly anything on foreign and national security policy. Or trade policy. Oh, he used the words radical Islamic terrorism, and he complained as always that everyone is taking advantage of the US on trade. But he did not, for example, say anything about what new trade deals he might want, or how he would propose to fix the ones he considers unfair. On Islamic State, he merely said he had asked the Pentagon for a new plan to defeat it. See related story on Page 5 At best, this speech, in which Trump declared that the time for trivial fights is behind us, could be heard as a promise to make up for the time he has lost since the campaign. Or at least not to lose any more time. We will see soon if that is a promise he will really keep. Bloomberg * Yes, he began by bragging about how much he had already accomplished and how many promises he had already kept. About those claims, the less the better; it amounts in most cases to executive orders promising to keep the promises, which are not actually, well, accomplishments. Singapore appoints ex-icj president as judge ad hoc to hear territorial claim SINGAPORE: Singapore has chosen Judge Gilbert Guillaume, a former International Court of Justice (ICJ) president, to sit as judge ad hoc for Malaysia s application for revision of the ICJ s judgement on sovereignty over Pedra Branca (Pulau Batu Putih), Middle Rocks and South Ledge. In a statement yesterday, Singapore s ministry of foreign affairs (MFA) said that Judge Guillaume was a member of the ICJ from 1987 to 2005, and served as its president from 2000 to The ministry said he was currently a member of the Permanent Court of Arbitration. Under the Statute of the ICJ, if there is no judge of the nationality of the parties on the Bench of the Court, the parties may each choose a judge ad hoc who will take part in the decision on the case, it said. The MFA said that Singapore will be filing comprehensive and compelling written observations on the admissibility of Malaysia s application by June 14, which is the time limit fixed by the ICJ. Malaysia on Feb 2, filed an application for revision of the ICJ s judgement of May 23, 2008 over Pedra Branca, Middle Rocks and South Ledge. In its judgement, the ICJ in The Hague, the Netherlands, ruled that sovereignty over Pedra Branca belongs to Singapore, sovereignty over Middle Rocks belongs to Malaysia, and sovereignty over South Ledge belongs to the state in the territorial waters of which it is located. Bernama Mercedes owner invests in ChargePoint to back electric-car push BY JOHN AINGER LONDON: Daimler AG invested in ChargePoint Inc, which operates a network of electric-car charging stations, as the Mercedes-Benz maker ramps up a push into battery-powered vehicles. Daimler led a group investing US$82 million (RM million) in the Campbell, California-based company, with the funding aimed at boosting the number of charging points across Germany, France, the UK and Scandinavia. Europe s electric-car market is going to eclipse the US, chief executive officer Pasquale Romano said in an interview in London. Daimler s investment comes as the German automaker plans an ambitious expansion into electric cars, which have suffered from tepid customer demand. Mercedes in September unveiled plans to invest about 10 billion in a line of battery-powered vehicles under the EQ sub-brand. ChargePoint aims to have its first European ports installed by this summer and gain a 70% market share in individual countries within the next 10 years. Bloomberg
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5 4 HOME BUSINESS FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY Still less-than-sweet days ahead for MSM However, hike may not lift earnings of country s largest sugar refinery substantially BY WONG EE LIN KUALA LUMPUR: MSM Malaysia Holdings Bhd has finally gotten the the government s green light to raise the retail sugar price effective this month. But the hike may not lift the earnings of the country s largest sugar refinery substantially. Still, the news boosted MSM s share price, climbing 22 sen or nearly 5% to RM4.65 yesterday. Analysts reckon the 11 sen, or 3.7%, rise in retail price of a 1kg bag of coarse grain white refined sugar to RM2.95 per kg, from 2.84 per kg previously, will be not be enough to fully offset the jump in raw sugar prices globally. An analyst from MIDF Research expects minimal impact on MSM The possible pinch from higher sugar price BY SAMANTHA HO KUALA LUMPUR: The 4% hike in sugar price may not have much of an impact on headline inflation, but this does not mean consumers may not get the bitter end of rising food prices. While economists maintained that the Consumer Price Index (CPI) was unlikely to be swayed significantly by the higher sugar price, most noted that food and beverage (F&B) producers and retailers may pass on the cost increment. Increases in prices of food products are inevitable [and] the prices of manufactured food products will definitely go up, said Imran Nurginias Ibrahim, economist at BIMB Securities Sdn Bhd, but noting that sugar only weighs 0.2% in the CPI basket. United Overseas Bank Malaysia BY ANETTE APPADURAY KUALA LUMPUR: There was no red flag raised to Silver Bird Group Bhd s board on financial irregularities in the bread manufacturer until the end of 2011, according to its former chairman Datuk Gan Khuan Poh. Gan took the stand at the criminal sessions court yesterday morning at the continued hearing on Silver Bird s falsified reports on its revenue to Bursa Malaysia. Gan told the court that while he was chairman, neither the company s internal auditors nor external auditors had issued a letter to as the increase in the ceiling price for sugar was lower than its expectations. There might not be much impact [on MSM] as it had previously requested for a 20% to 30% increase in [the] ceiling price, said the analyst, noting that the 11 sen hike in refined sugar price is just about 4%. Their (MSM) earnings margin might increase 1% to 2% [after the hike], said the analyst. He opines that the increase in the sugar price might prompt lower sales volume as consumers cut down on sugar intake. CIMB Research equity research head Ivy Ng commented that the hike in the raw sugar price does not come as a surprise to them (UOB) economist Julia Goh concurred, saying in an reply, [We] would expect some passthrough to consumers as producers and businesses manage their profit margins. Meanwhile, Red Sena Bhd executive director Ian Yoong said, The rise in sugar price domestically will have an adverse impact on consumer spending [but] this cannot be helped as the price of [raw] sugar is rapidly increasing on a global basis. Red Sena is a special purpose acquisition company searching for assets in the F&B sector. However, while the higher sugar price reflects the jump in raw material costs and the weaker ringgit, Affin Investment Bank Bhd chief economist Alan Tan said the hike could also have been done for health reasons. Consumer price index % y-o-y 3.2 March 31, 2011 Jan 31, 2017 Last increase in sugar price by 34 sen (Oct 25, 2013). GST implemented (April 1, 2015) Silver Bird auditors did not raise red flag, says ex-chairman the management alerting it to the accounting irregularity issue that was brewing in Silver Bird until the third quarter of Silver Bird, whose substantial shareholders include Lembaga Tabung Haji, Berjaya Corp Bhd and Permodalan Felda Malaysia Bhd, was later renamed High-5 Consolidated Bhd and was taken private. The bread maker ceased operations in June In September 2013, Datuk Jackson Tan Han Kook, 59, and Derec Ching Siew Cheong, 51, were each charged with seven and eight counts respectively, of furnishing false statements to Bursa in relation to falsified statements as it was widely reported that the refiners had been appealing to the government for higher prices as their refining margins had been squeezed by higher raw sugar costs. We understand MSM has asked for a 20% to 30% (or 56 sen to 85 sen/kg) rise in the ceiling price for sugar of RM2.84/kg from the government. As such, the 11 sen increase falls short of its request, Ng wrote in her research note yesterday. MSM s earnings were hit badly by a sharp rise in input costs. For the full financial year ended Dec 31, 2016 (FY16), the sugar refinery s net profit plunged 56% to RM million, despite a 15% growth in revenue to RM2.66 billion from The intention for this [price hike] could also be for people to cut back on [a] high sugar intake, Tan told The Edge Financial Daily contained in Silver Bird s eight unaudited quarterly financial accounts for the financial years ended Oct 31, 2010 and When the financial irregularities were uncovered, Silver Bird announced in February 2012 that the stock exchange had categorised it as a financially distressed company under Practice Note 17. The group then removed both Tan and Ching from its board of directors shortly after. If convicted, both Tan and Ching will be liable to imprisonment for no more than 10 years and a maximum fine of RM3 million. To recap, in February 2013, the RM2.31 billion a year ago. According to Affin Hwang Capital, MSM s earnings before interest and tax margin shrank by 10.2 percentage points year-on-year to 5.9%. Our back-of-the-envelope calculation shows that for every one sen increase in domestic ASPs (average selling prices), net profit increases by 1.5% to 1.6% for FY17 to FY19, Affin Hwang Capital wrote in its research note yesterday. In view of the price hike, the research outfit forecasts MSM s net profit to almost double to RM239 million for FY17 and RM255 million for FY18. Meanwhile, Ng from CIMB expects MSM to earn a net profit of RM186 million in FY17 and RM196.2 million in FY18. over the phone. Economists are more concerned about any increase in crude oil and energy prices which would be the main drivers behind the cost-push inflation this year. Tan, who forecasts a 3.5% inflation rate for the first quarter, concurs that the sugar price hike would only have a small impact on the CPI. Meanwhile, Goh said higher inflation this year would be driven by higher energy prices. She highlighted that commodity and raw material prices were indicated by the 10% acceleration in producer prices in January. Further hikes [in the sugar price] will depend on the trajectory of commodity prices and robustness of domestic demand, which ultimately determines the degree of pass-through to consumers, she said. bread maker made a surprising announcement on a RM112 million hole in its finances which later turned out to be RM297 million. Gan and its board of directors immediately suspended the then group managing director Tan, Ching and general manager of accounts and finance Lai Poh Mei. It then subsequently filed a RM125 million civil suit against Tan, Ching and Lai in August The company ceased operations in June 2016, following a court order obtained by landlord AmanahRaya Real Estate Investment Trust to vacate the operating premises. Bank Negara Malaysia keeps OPR on hold as inflation seen higher BY SANGEETHA AMARTHALINGAM KUALA LUMPUR: Bank Negara Malaysia (BNM) maintained the overnight policy rate (OPR) at 3% as the central bank evaluated risks to the country s economic growth and inflation. BNM said in a statement yesterday its monetary policy committee (MPC) maintained the OPR at 3%, a level deemed accommodative and supportive of economic activity. At the current level of the OPR, the stance of monetary policy is accommodative and supportive of economic activity. The MPC will continue to assess the balance of risks surrounding the outlook for domestic growth and inflation. The growth momentum is expected to be sustained in With the growth in domestic demand being sustained, the more positive contribution from the external sector will lead to a better performance of the Malaysian economy. Headline inflation is projected to be higher in 2017, reflecting primarily the passthrough impact of the increase in global oil prices on domestic retail fuel prices, BNM said. At the current level of the OPR, the stance of monetary policy is accommodative and supportive of economic activity. The central bank said headline inflation would remain relatively high in the first half of this year before moderating thereafter. However, the projected trajectory of domestic headline inflation will be dependent on the future trend in global oil prices which remains highly uncertain, BNM said. According to the regulator, the cost-driven inflation was not expected to have a significant impact on broader price trends due to stable domestic demand. On the ringgit, BNM said the currency continued to stabilise with other emerging-market currencies. In Malaysia, BNM said implementation of financial market development measures had a positive impact on domestic financial markets. Banking system liquidity remains sufficient. Financial institutions continue to operate with strong capital and liquidity buffers, and the growth in financing for the private sector is consistent with the pace of economic activity, it said.
6 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY HOME BUSINESS 5 Mustapa: Trump s protectionist stance could be destructive But analysts say M sian exporters may be buffered from impact BY CHESTER TAY & SULHI AZMAN Republicans in the US want Trump to endorse their border-adjustable idea, which would exempt exports but tax imports. Photo by Reuters KUALA LUMPUR: The intended border adjustment tax to be levied on imported goods into the US, as announced by new US President Donald Trump, could be potentially destructive to the global supply chain, according to Malaysia s International Trade and Industry Minister Datuk Seri Mustapa Mohamed. It is still too early to tell how Trump s protectionist measures will impact on American companies on Malaysian soils or the region. Some of these companies have been here for over 40 years, and they are well entrenched in Malaysia s business value chain. They form the bulk of global supply chain systems, in terms of procurement and strategic sourcing. The policies could be destructive to global operations. Still, for practical purposes, we don t see this [proposed] policy getting these companies out of Malaysia and moving [back] to the [US] states, Mustapa said. In his Congress address on Tuesday night, Trump spoke favourably about taxing foreign products when they come into the US, and noted that products shipped out of America were highly taxed, while foreign companies that shipped products into America were charged almost nothing. Though he asked for change, he didn t specify his tax-policy plans. Republicans want him to endorse their border-adjustable idea, which would exempt exports but tax imports. Meanwhile, Malaysian American Electronics Industry (MAEI) chairman Datuk Wong Siew Hai believes that American companies particularly in the electrical and electronics sector will not close shop and return to the US. I personally don t think that it will happen because of the existence of the global supply chain in the region, which is crucial to businesses and investments, said Wong. MAEI is an industry subcommittee under the American Malaysian Chamber of Commerce that represents the electrical and electronics industry. Meanwhile, Malaysian exporters may not be heavily impacted if the proposed osed border tax comes into effect, according to local econ- omists and market observers who spoke to The Edge Financial Daily. While Malaysian Economic Association economist Dr Zarinah Yusof conceded that a higher tax imposed on imported goods will increase the retail prices of Malaysian goods in the US, the impact would likely be offset by the ringgit s depreciation against the US dollar. Affin Hwang Investment Bank Bhd chief economist Alan Tan echoed the same sentiment, though he highlighted that there are still limited details of the proposed tax reform. The border tax would lead to a stronger US dollar, but [the effects of that] would likely be offset by higher consumer goods prices, he said. On the corporate side, Tan also noted that it may not be an entirely lose-lose situation for US importers, as companies may end up seeing corporate tax reduction under Trump. In the same speech, Trump indicated that American companies were taxed at one of the highest rates anywhere in the world, and said his team was looking at reducing the tax rate on American companies to enable them to compete and thrive. Yesterday, while the global market cheered Trump s commitment to a US$1 trillion (RM4.44 trillion) infrastructure spending in his congress address, certain quarters remained wary of the 70-year-old chief of state s firm position on fair trade, which may involve up to a 45% tax on imported goods into the country, according to his campaign pledges. The US is Malaysia s third-largest export destination. In 2016, Malaysia s exports to the US amounted to RM80.23 billion, while imports stood at RM55.65 billion. Areca Capital Sdn Bhd chief executive officer Danny Wong observed that most of these exports are mainly low- to medium-value parts, which also have lower margins. [The] US cannot afford to do everything on their own. They may do high value, but Malaysian exports are mainly low- to medium-value parts for assembly, with lower margins as well. [So, the] impact [of US trade protective measures] on us would be relatively lower compared to countries like Singapore and South Korea, he said. Nevertheless, Socio-Economic Research Centre executive director Lee Heng Guie said market observers should take cues from the renegotiation of the North American Free Trade Agreement (Nafta) before making any decision. The renegotiation of Nafta will give us a precursor of how [the] US will deal with Asian markets. Assuming Trump manages to get his tax reform through Congress, it will not be a straight-forward blanket tax. [It will] much likely be a combination, with non-tariff barriers as well, he said. However, Sunway University Business School economics professor Dr Yeah Kim Leng foresees that Trump s border tax will stop at Congress, with business groups expected to lobby against the import barrier. The cost to the US economy is quite huge, especially from China it would trigger retaliation. For Malaysia, we are unlikely to be on the radar. But if a trade war happens, global trade, which is recovering now, would spiral downwards, he said. United Overseas Bank (M) Bhd economist Julia Goh held a similar view, saying that a trade war is not what Trump nor the Republican party desires. Given how global equities have risen and [the] return of portfolio flows to emerging Asia, investors either see a low probability that the border tax will happen, or overriding improvement in the US economy [from infrastructure spending and tax cuts] will underpin stronger demand that can offset the negative effects of the border tax, she added. Inter-Pacific Securities Sdn Bhd head of research Pong Teng Siew found it odd for emerging markets to celebrate Trump s speech yesterday. It seems very odd that the [Ma- laysian] market rallied today (yes- terday). There is reason for the US to celebrate, but not for coun- tries like Malaysia, [given] this looming policy that is not so favourable to global trade, he said. The FBM KLCI climbed 1.06% to 1, points yesterday, along with most Asian major indices. EDITOR S PICKS FROM theedgemarkets.com SapuraKencana units bag multiple contracts worth RM433.6m BY ADELA MEGAN WILLY KUALA LUMPUR: SapuraKencana Petroleum Bhd says it has, via its units, bagged multiple contracts worth a combined US$97.4 million (about RM433.6 million). In a statement yesterday, SapuraKencana said its wholly-owned subsidiary, SapuraKencana TL Offshore Sdn Bhd (SKTLO), had been awarded an umbrella contract by Petroliam Nasional Bhd (Petronas) for the Pan Malaysia Transportation and Installation of Offshore Facilities. The work consists of transportation and installation of platforms, structures and pipelines, as well as associated works. The contracts are for a duration of one year, valid from 2017 until 2018, it said. SKTLO has also won a con- BY BILLY TOH KUALA LUMPUR: AirAsia Bhd emphasised the importance of slashing costs on top of the pursuit of growth, according to its group chief executive officer Tan Sri Tony Fernandes. He said on his Twitter account there will be higher utilisation of its fleet, new aircraft, more seats, and focus on data and technology. We are pushing down cost, especially with our peers. Higher utilisation. New aircraft. More seats. Data and technology, he said. Growth. That s what we are focusing on in the AirAsia Group. And it will be profitable growth as investment done, he said. In its latest financial results, AirAsia s passenger seat sales increased in the fourth quarter ended Dec 31, 2016 (4QFY16), BY CHESTER TAY KUALA LUMPUR: Right after buying a German-based pipe coating firm mid-last month, Wah Seong Corp Bhd is buying a Finland-based steel pipe coating plant for million (RM70.67 million) to supply coated steel pipes to the Nord Stream 2 project. In a filing with Bursa Malaysia, Wah Seong said its wholly-owned unit Wasco Coatings Finland (Plant and Equipment) Oy had inked two sale and purchase agreements to acquire the said steel pipe coating plant and its equipment, furniture and fittings. Wah Seong said the coating equipment is a complete coating line to be used for concrete weight coating of steel pipes with a production capacity of about 200 concrete weight coated pipes a day. On Sept 6 last year, Wasco en- tract to provide engineering, decommissioning, procurement, construction, installation and commissioning for Sepat Mobile Offshore Unit Stabilization and Repair Works (Package 1) by Petronas Carigali Sdn Bhd (PCSB), valid for approximately five months. Meanwhile, PCSB has also awarded SapuraKencana HL Sdn Bhd (SKHL) a contract for the provision of procurement, construction and commissioning of Full Well Stream Air Cooler Module on Central Processing Platform NC- 3CP-A, for a duration of 33 months. SKHL has won a contract from PCPP Operating Company Sdn Bhd for the provision of engineering, preparation, removal and disposal for the Dana and D30 facilities decommissioning project, for approximately nine months. AirAsia says priorities are growth, cost-cutting supported by a 5% growth in passenger volume, while the average fare was up 5% at RM186, from RM177 in 4QFY15. However, net profit fell by 16% to RM million or 16.7 sen per share in 4QFY16, from RM million or 19.9 sen per share a year ago, due to a 48% decline in aircraft operating lease income. Quarterly revenue also fell 10.7% to RM1.94 billion, from RM2.17 billion in 4QFY15. The latest comment by Fernandes is in line with the group s projection of achieving an average forecast load factor of 89% in the first quarter of 2017 while being confident of strong demand across most sectors for the rest of the year, coupled with a favourable fuel price environment despite continual fare competition in the market. Wah Seong buys another steel pipe coating plant for RM70.67m tered into a 600 million contract with Nord Stream 2 AG for the provision of concrete weight coating and storing of pipes for the Nord Stream 2 project, a planned pipeline through the Baltic Sea which will transport natural gas over 1,200km from the world s largest gas reserves in Russia to consumers in Europe. The group added that Wasco s acquisitions of the plant and coating equipment are part of the terms and conditions of the award of the Nord Stream 2 project to Wasco. In mid-february this year, Wah Seong bought German-based pipe coating firm Mutares Holding-16 AG for 19.5 million to gain access to the latter s plant for pipe coating, also for the Nord Stream 2 project. The purchase was undertaken by Wah Seong s indirect wholly-owned unit Wasco Coatings Germany GmbH.
7 6 HOME BUSINESS FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY FDI in Malaysia down 5% in 2016 Mustapa says the slowdown is in line with global trend BY SULHI AZMAN KUALA LUMPUR: Total foreign direct investment (FDI) into Malaysia slipped 5% to RM41.18 billion in 2016 from RM43.44 billion in 2015, according to the Malaysian Investment Development Authority (Mida). The decline was due to lower investments in the manufacturing and primary sectors, International Trade and Industry Minister Datuk Seri Mustapa Mohamed said in a briefing here yesterday. The decline in the country's FDI, said Mustapa, was in line with global FDI inflow, which slowed by 13% to US$1.52 trillion in 2016 from US$1.7 trillion a year earlier. This is due to weak global economic growth and world trade volumes posting anaemic gains, Mustapa said. Malaysia, he added, has also been more selective in its investment agenda, preferring quality projects in targeted ecosystems that will have a significant knock-on and multiplier effect throughout the domestic economy. China was the largest contributor to the country's FDI last year, with RM4.7 billion of committed investments, followed by the Netherlands (RM3.2 billion), Germany (RM2.6 billion), the United King- Mustapa says the global FDI inflow decline is due to weak global economic growth and world trade volumes posting anaemic gains. Photo by Patrick Goh dom (RM2.6 billion), South Korea (RM2.2 billion), Singapore (RM2.1 billion), Japan (RM1.9 billion), the US (RM1.4 billion) and India (RM1.3 billion). Total investments in the country clocked in at RM207.9 billion in 2016, a 7.7% increase from RM193 billion a year ago, driven by investment in the services sectors that jumped 23%. According to Mida, the ratio of foreign to domestic investment is still healthy, with 71.6% or RM148.9 billion generated domestically, with the balance of 28.4% or RM59 billion coming from foreign investors. The US, the Netherlands, China, Japan, Singapore, South Korea and the UK, Mustapa said, jointly accounted for 55.8% of total foreign investments in the country s three core areas: manufacturing, services and primary sectors. Last year, investments in the manufacturing sector fell by 21.7% to RM58.49 billion from RM74.69 billion in 2015, though the total number of projects increased to 733 from 680 a year ago. The investment numbers looked big in 2015, but that was bumped up by two lumpy projects in Pengerang, Johor, and Sarawak, said Mustapa, who foresees investment in manufacturing activities slowing further to RM55 billion this year. We have some mitigating strategies to support activities in the manufacturing sector, which include increasing efforts to develop and enhance local supply chains to support multinational companies, he added. As for the services sector, Mustapa said investment activities continued to rise by 23% to RM billion in 2016, from RM billion in 2015, anchored by key real estate projects. In 2017, we see investment in the services sector coming in at RM75 billion, with global establishments, healthcare, education and hospitality to be the main key driver, said Mustapa, who prefers to give moderate targets as opposed to ambitious ones. Despite the [current] volatilities, we are off to a good start this year, with the collaboration between Petronas and Saudi Aramco, which has committed [an investment of] US$7 billion (RM30.8 billion), he said. More local content in mega projects, please BY ADAM AZIZ KUALA LUMPUR: The Federation of Malaysian Manufacturers (FMM), whose survey shows manufacturers are expecting muted local sales in the first half of 2017, is urging the government to encourage the use of locally manufactured products in mega projects a move to drive domestic economic activities. The country did well [in terms of economic growth] in the second half of last year. However, going forward, the overall tone of the [manufacturing] industry is cautious at this moment because of uncertainties with respect to local consumption. Government spending on local projects will solve the problem in this area. There should be certain conditions for foreign direct investments, they must have an understanding with local manufacturers to supply goods for the projects, said FMM s immediate former president Tan Sri Saw Choo Boon. Saw opines that Malaysia is quite liberal in giving out contracts. When we have big projects undertaken by foreign contractors, we should try to give back as much as possible to the country to benefit local businesses as much as possible, he said at a media briefing yesterday to reveal the survey results. FMM-Malaysian Institute of Economic Research (MIER) joint Business Conditions Survey shows that expected local sales index dropped 12 points to 87 for the first half of 2017 against 99 in the second half of 2016 (2H16), indicating that manufacturers are holding rather bleak views on their sales in the first six months, although sales had improved in 2H16. The index on actual local sales climbed to 87 in 2H16 from 80 in the preceding six months. Meanwhile, the actual exports sales index climbed 10 points to 109 in 2H16 from 99 in 1H16. The expected export sales index dropped to 111 in 1H17 from 112 in 2H16. FMM Selangor branch chairman Datuk Soh Thian Lai said the official statistics show encouraging growth on gross domestic product, but there is a disconnect between the figures and how the public is feeling. Billions are spent on these mega projects. But how much [materials] are supplied by local manufacturers? We do not have that statistic, Soh, who is president of the Malaysian Iron and Steel Industry Federation (Misif), asked. One way to have a conducive environment is to have better domestic consumption. We do encourage exports as our quality is accepted globally. What we want to know is how we can raise the incomes of the local people, Soh said. FMM president Tan Sri Lim Wee Chai, meanwhile, has called for manufacturers to focus on quality and be cost-efficient to stay competitive. The government has heeded FMM s suggestions. There will be conferences to present the big infrastructure projects to potential suppliers. We (manufacturers) must help ourselves. FMM will want all suppliers to come to form business ventures and see how they can contribute, Lim said. Improve management of foreign workers first BY ADAM AZIZ KUALA LUMPUR: More employers will agree to the levy payment for their foreign workers under the Employer Mandatory Commitment (EMC) if the government proves to be just as committed to improving the foreign labour ecosystem, says the Federation of Malaysian Manufacturers (FMM). The key message from employers, according to a survey by FMM among its members, is that both the private and government sectors have a role to play in managing and improving the foreign workers ecosystem, said FMM president Tan Sri Lim Wee Chai. Some employers agree [to the EMC], but asked for the government [to show its] commitment too, Lim said. For one, the government can make the process of applying for a foreign worker more efficient, he said. Companies cannot take months just to get one worker. We also don't want middlemen to source for our foreign workers in order for the process to be transparent. Every road block will give the industry problems, he told reporters after releasing the results of FMM's Business Conditions Survey FMM Selangor branch chairman Datuk Soh Thian Lai said the government should centralise and automate the application process. We suggested the establishment of a one-stop foreign worker application centre to the government. Processes such as electronic application is also transparent and can prevent corruption. Soh also urged the government to improve the management of illegal foreign workers. There are over two million illegal foreign workers in Malaysia. Enforcement is important. The government must send them back quickly. Views on the Employer Mandatory Commitment N/A 11.1% No to EMC 71.9% Yes to EMC 17.0% Note: Above are the views expressed from FMM s survey reports Source: Federation of Malaysian Manufacturers Both the private and government sectors have a role to play in managing and improving the foreign workers ecosystem. In the survey undertaken by the FMM and the Malaysian Institute of Economic Research (MIER), 71.9% of the 370 respondents disagreed to the EMC. Presently, 45% of foreign workers in the country pay the levy themselves, compared to 17% who had their employers pay it, and another 17% who shared the burden with their employers, said FMM. Last year, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi announced that employers would no longer be able to deduct the wages of their foreign workers for the levy, from Jan 1, and that employers would have to fork out Not able to achieve desired objectives 48.4% Able to achieve its objectives 10.5% Add to cost ofdoing business 74.1% Issues are illegal foreign workers and weak enforcement 42.7% Multiplier effect locals demand more benefits 40.3% Discriminate against local workers 38.9% Implement EMC in phases with notified schedule 29.5% the levy payment under EMC. But following an uproar among employers to the new ruling, the EMC implementation has been postponed to Jan 1 next year. FMM, said its immediate past president Tan Sri Saw Choo Boon, is in the midst of talking to the government to postpone the EMC till We want to get a win-win solution, as any policy mistakes made now can [have] huge [repercussions]. Like this [EMC] levy, it will cost the country up to RM5 billion in outflow per year, contradicting the central bank s export ruling [to boost the ringgit], Saw said. Lim said the government s tendency to conduct overnight changes in policies, such as the abrupt EMC introduction and Bank Negara Malaysia s (BNM) new rule for exporters to convert 75% of foreign returns to the ringgit, is a bad move as it will offset business plans. Policies must focus on efficiency and quality. Don t change policies simply for short-term gains that will only benefit certain sectors. It will affect many investors, he said.
8 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY HOME BUSINESS 7 Maybank names Mohaiyani as first woman chair Robert Kuok 2017 net worth: US$11.4b 2016 net worth: US$10b Age: 93 Origin of wealth: Palm oil/shipping/real estate Tan Sri Quek Leng Chan 2017 net worth: US$6.8b 2016 net worth: US$5.3b Age: 75 Origin of wealth: Banking/real estate Ananda Krishnan 2017 net worth: US$6.5b 2016 net worth: US$7.4b Age: 78 Origin of wealth: Telecom Tan Sri Teh Hong Piow 2017 net worth: US$4.75b 2016 net worth: US$4.65b Age: 86 Origin of wealth: Banking Tan Sri Lee Shin Cheng 2017 net worth: US$4.7b 2016 net worth: US$4.6b Age: 77 Origin of wealth: Palm oil/real estate BY SURIN MURUGIAH 6 Tan Sri Lim Kok Thay 2017 net worth: US$4.45b 2016 net worth: US$4.55b Age: 65 Origin of wealth: Casinos Kuok still Malaysia s richest, Ananda slips to third Forbes Over half of the tycoons on the top-50 list saw their fortunes rise last year BY NEILY SYAFIQAH EUSOFF KUALA LUMPUR: Malaysia's 50 richest, as compiled by Forbes Asia, saw three newcomers two of whom are brothers while tycoon Robert Kuok retained the top spot for the 12th year running, with a net worth of US$11.4 billion (RM50.62 billion), up from US$10 billion previously. Over half the tycoons on the list saw their fortunes rise last year, despite the falling currency and political uncertainty, said Forbes Asia in a statement yesterday. As for the two brothers who made their debut on the list this year, they are Koon Poh Ming and Datuk Koon Poh Keong (No 13, US$1.05 billion) the two biggest shareholders of Press Metal Bhd, Southeast Asia's largest integrated aluminium producer whose shares have surged nearly 2.5 times in the past year, giving the company a market capitalisation of US$2 billion. The third newcomer is Wong 7 Tan Sri Yeoh Tiong Lay 2017 net worth: US$2.1b 2016 net worth: US$2.25b Age: 87 Origin of wealth: Construction/real estate 8 Tan Sri Lau Cho Kun 2017 net worth: US$2.08b 2016 net worth: US$1.55b Age: 81 Origin of wealth: Palm oil/real estate Thean Soon (No 39, US$330 million), who co-founded listed electronic services company My EG Services Bhd in Forbes Asia, the magazine that featured the list, said the minimum net worth to make it on the list this year is US$210 million, up from US$195 million a year ago. Forbes Asia is published by media and branding company Forbes Media. After Kuok, 93, who controls an empire that includes palm oil, shipping and property through the Kuok Group, comes banking mogul Tan Sri Quek Leng Chan, who chairs privately held conglomerate Hong Leong Co (Malaysia), with a net worth of US$6.8 billion, up from US$5.3 billion last year. "Quek replaces Ananda Krishnan, who falls to the third spot this year as his wealth declined by 12.2% to US$6.5 billion amid uncertainty around his debt-laden Indian telecom firm Aircel," said Forbes Asia. 9 Tan Sri Tiong Hiew King 2017 net worth: US$2b 2016 net worth: US$1b Age: 81 Origin of wealth: Timber/media 10 Tan Sri Syed Mokhtar Albukhary 2017 net worth: US$1.8b 2016 net worth: US$1.45b Age: 65 Origin of wealth: Diversified Though the fortune of gaming tycoon Tan Sri Lim Kok Thay of Genting Group took the sixth spot with a net worth of US$4.45 billion, down slightly from US$4.55 billion last year, mainly due to a weaker ringgit, the share price of Genting Bhd has risen since November The biggest percentage gainer on this year's list is gaming tycoon and property developer Tan Sri Dr Chen Lip Keong (No 11, US$1.6 billion). "His wealth rose 158%, putting him back in the billionaire ranks as his expanding Cambodian casino builds more links to China's tourism sector," said Forbes Asia. Property tycoon Tan Sri Desmond Lim Siew Choon (No 16, US$1 billion) joins the billionaire ranks for the first time with a 10.5% increase in his net worth. Funeral services innovator Tan Sri David Kong (No 24, US$700 million), who also goes by Kong Hon Kong, moves up 10 spots from last year's list after taking the company private in a US$1.1 billion deal. Another notable gainer is Tan Sri Syed Azman Ibrahim (No 26, US$600 million), whose fortune soared 145% as firmer oil prices benefited his helicopter chartering business which services the oil and gas sector. This year, the only woman who qualified for the list is 94-year-old co-founder of Selangor Properties, Puan Sri Chong Chook Yew, at No 43 with a net worth of US$285 million. The top 10 richest in Malaysia are: Kuok (with US$11.4 billion); Quek (US$6.8 billion); Ananda (US$6.5 billion); Tan Sri Teh Hong Piow (US$4.75 billion); Tan Sri Lee Shin Cheng (US$4.7 billion); Kok Thay (US$4.45 billion); Tan Sri Dr Yeoh Tiong Lay (US$2.1 billion); Tan Sri Lau Cho Kun (US$2.08 billion); Tan Sri Tiong Hiew King (US$2 billion); and Tan Sri Syed Mokhtar Albukhary (US$1.8 billion). The net worth figures are based on stock prices and exchange rates as of the close of markets on Feb 17. KUALA LUMPUR: Malayan Banking Bhd (Maybank) has named Datuk Mohaiyani Shamsudin (pic) as its new chairman, succeeding Tan Sri Megat Zaharuddin Megat Mohd Nor, who has announced that he will be stepping down at the end of this month. In a statement yesterday, Maybank said Megat Zaharuddin has served on its board of directors for about 12 years, with the last seven and a half years as chairman. Mohaiyani is currently the chairman of Maybank Investment Bank Bhd, a position she has held since March In a tribute to Megat Zaharuddin, Maybank group president and chief executive officer Datuk Abdul Farid Alias said he is a visionary leader who has constantly challenged the bank to scale greater heights and successfully steered the group through some of the most challenging global economic situations. On Mohaiyani s appointment, Abdul Farid said it augurs well for Maybank and will ensure continuity on the board, given that she has been a Maybank director since Aug 22, As a member of the current board, she already has insights into all aspects of the group, and we are confident she will lead Maybank effectively as she takes up the new position, he said. Mohaiyani was with Amanah Chase Merchant Bank Bhd and Seagrott & Campbell Sdn Bhd before starting her own stockbroking company Mohaiyani Securities Sdn Bhd in During her active involvement in the stockbroking industry, she was appointed as the deputy chairman of the Kuala Lumpur Stock Exchange (now known as Bursa Malaysia Bhd) and chairman of the Association of Stockbroking Companies Malaysia. Her current directorships in companies within the Maybank Group include being chairman of Maybank Kim Eng Holdings Ltd.
9 8 HOME BUSINESS FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY O&G in limelight for 4Q, but for the wrong reasons Reporting season ends with property, telco earnings slumping the most BY ADELA MEGAN WILLY KUALA LUMPUR: The just-concluded fourth-quarter (4Q) earnings report season showed the property and telecommunication sectors recording the highest number of downward earnings revisions, while oil and gas (O&G) players hogged headlines with impairments on unprecedented scales as work activities slowed. 4Q of 2016 (4Q16) saw O&G companies make major impairments in line with the drag on core activities in 2016 as oil majors tightened their spending, especially those who were on call-out basis contract terms, said PublicInvest Research in a note yesterday. We believe the oil market is commencing its recovery phase, albeit slowly, but with caution about cost management initiatives, therefore changing the dynamics of the industry. Management of costs has aided in expanding or at least maintaining margins, which will be positive [from] 2017 onwards as more activities come on stream while being operated more efficiently, it added. The overall weak performance, SINGAPORE/KUALA LUMPUR: RHB Bank Bhd s Asian head of institutional equities at its securities unit, Lena Yong, left last week as the Malaysian lender restructured the business. Yes, there was a restructuring and I was restructured out with the regional roles brought back to Malaysia, said Singapore-based Yong in a telephone interview. This is the sad state of the financial industry which is going through a transition. RHB joins other financial firms in revamping its operations amid Tiger Synergy mulling other fundraising proposals after ICPS rights issue aborted BY SUPRIYA SURENDRAN KUALA LUMPUR: Tiger Synergy Bhd is currently mulling other fundraising proposals, following the cancellation of its proposed irredeemable convertible preference share (ICPS) rights issue with warrants, which was supposed to raise as much as RM41.72 million in cash. The company has decided to RHB Asian head of institutional equities leaves cost pressures. CLSA Ltd, the brokerage owned by China s Citic Securities Co, on Monday shut its US equity research operations, dismissing more than half of its workers in the country. Fidelity Investments is offering buyouts to 3,000 veteran employees, while Deutsche Bank AG is said to be planning to cut staff for its trading business. Our wholesale equities were reorganised into a single pillar which comprises institutional equities and equity capital markets, RHB said in an ed response abort the proposed ICPS rights issue with warrants as [it] is currently exploring the feasibility of other fundraising proposals arising from the implementation of the Companies Act 2016, the property developer said in a filing with Bursa Malaysia yesterday. Following the cancellation of the rights issue, the proposed increase in authorised share capital and proposed memorandum according to the research firm, was unsurprising as 2016 was anticipated as the year for O&G players to clean their slate in a sluggish oil market. The earnings slump among property players, meanwhile, came about as they accounted for changes in billing assumptions during the quarter, while telcos had to imput higher costs, said PublicInvest. Cost pressures also continued to bite into the earnings of consumer and rubber glove players, it said. As for the plantation and construction sectors, these too failed to perform up to expectations, though it was due to specific developments such as delayed billings, not operational hiccups, it noted. Consensus expectations were fairly similar this time round, with the O&G, plantation and construction sectors also proving to be a bane. However, the earnings picture is decidedly better now, and we can start looking towards more substantive earnings recoveries in 2017 and 2018, it said. PublicInvest highlighted that 40 stocks or 59.7% under its coverage managed to meet or exceed earnings expectations in 4Q16, whereas 27 stocks or 40.3% failed to hit the target. It reiterated its overweight recommendation on the plantation, power, O&G and construction sectors, while suggesting selective exposure to the banking segment. Meanwhile, HLIB Research said the number of sectors that put on weak performances reduced sharply from 14 in 3Q16 to just four. The sectors were automotive, consumer, healthcare and O&G. In contrast, the building materials and gaming industries were on the upside. In tandem with a further pickup in real gross domestic product (GDP) growth, [the] 4Q16 reporting season staged an improvement over 3Q16, the research firm said. Nearly half or 48% of HLIB s universe came in within expectations, compared with 43% in 3Q16, while a higher percentage (21% in 4Q16, versus 11% in 3Q16) surprised on the upside, it added. It also noted that fewer companies reported lower-than-expected results, whereby 31% performed weaker than anticipated and articles of association (M&A) amendment shall be consequently aborted. The proposed share buy-back which was to be implemented concurrently with the proposed ICPS rights issue with warrants shall also be aborted at this juncture, it said, adding that it will consider whether to implement the proposed share buy-back at a later stage. The termination of the proposals against 46% in 3Q16. HLIB said its market strategy remains unchanged, as it still favours stocks with earnings certainty and domestic-oriented catalysts. Going forward, it said, there is a possibility of sporadic externally induced volatility, which could shock the market despite expectations of GDP growth recovery and firmer commodity prices. Two successive quarters of GDP growth recovery finally trickled down to corporate earnings. With solid economic fundamentals, we expect firmer commodity prices and record-high infrastructure jobs to solidify corporate earnings in We expect [the] market to attune to [the] domestic growth story and walk past [US President Donald] Trump policy jitter, focusing on positives from stronger oil prices and its spillover in the broader economy, it added. However, the firm warned that the upcoming line-up of elections in Europe, including the Netherlands, France and Germany, could trigger sporadic risk-off mode and [a] rush to safe havens. to queries. The reframed strategy, which includes the setting up of a wholesale banking division under its corporate reorganisation, will strengthen the lender s business focus, RHB said. Azura Azman is the Kuala Lumpur-based group wholesale equities head, the bank said. There are 103 employees, including 52 in Malaysia for the wholesale equities operation. RHB declined to comment on the number of employees affected by the restructuring. Three others at the 11-person institutional equities unit left earlier this year, said Yong, 56. Yong, who has a training firm Liam Consultants said she will run training courses for finance executives. She was with RHB from 2013 and had stints with UOB Kay Hian, Macquarie Group and CLSA, according to her LinkedIn profile. The Malaysian lender on Feb 24 reported that its fourth-quarter net income had tumbled 28% to RM261.2 million. In 2015, RHB paid RM309 million to cut 12% of its 15,348 Malaysian workforce as it sought to remain relevant, competitive and resilient. Bloomberg is not expected to have any effect on earnings per share and net assets per share of the group. On Wednesday, the company announced that it was aborting the proposed ICPS rights issue with warrants, share buy-back, increase in authorised share capital and M&A amendment, which were announced last June to raise funds for property development and working capital. Saudi Aramco s stake in Rapid to cut Petronas capex Fitch BY SANGEETHA AMARTHALINGAM KUALA LUMPUR: While Saudi Arabian Oil Co s (Saudi Aramco) move to take up a 50% stake for US$7 billion (RM31.08 billion) in selected ventures and assets in Petroliam Nasional Bhd s (Petronas) Rapid should reduce Petronas capital expenditure (capex) burden, it will not affect the latter s ratings immediately, said Fitch Ratings. This is because Petronas ratings remain constrained by Malaysia s sovereign rating, said the rating agency, as Malaysia owns the oil major and exerts significant influence over its operating and financial policies. Rapid stands for Petronas refinery and petrochemical integrated development in Pengerang, Johor. The transaction, if completed, will help reduce Petronas committed capex requirements at a time when the company s operating cash flow generation has been pressured by weak oil prices. Fitch expects investment in the US$16 billion Rapid project to represent a sharply rising portion of Petronas capex through 2019, Fitch noted in a statement. The commissioning of the refinery is targeted for early 2019, with the associated petrochemical plants phased in over time. Other facilities associated with the Rapid project, covering electrical and water supplies, as well as a liquefied natural gas import terminal and a regasification terminal, will require additional capex of US$11 billion, Fitch said. Nevertheless, Fitch said Petronas financial flexibility remains strong despite significant medium-term capex and dividend payments, and includes a robust net cash position and conservative through-the-cycle leverage and coverage ratios. Petronas, which continues to maintain a strong stand-alone credit profile of AA-, it noted, announced measures in 2016 to preserve cash flow, including by way of planned capex and operating expenditure through to 2020 of RM50 billion, and a lower dividend of RM13 billion in 2017 (2016: RM16 billion, 2015: RM26 billion). It was reported that Saudi Aramco, the national oil company of Saudi Arabi, will supply up to 70% of Rapid s crude feedstock requirements with the 50% stake take-up. Natural gas, power and utilities will be supplied by Petronas. The project comprises a refinery with a capacity of 300,000 barrels of oil equivalent a day, a naphtha cracker plant, and other petrochemical facilities with a combined production capacity of three million tonnes a year of ethylene, propylene and olefin products. Once completed, Rapid will increase Petronas refining and petrochemical capacity by around 50%, as well as broaden the company s product range, notably specialty chemicals, Fitch added.
10 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY 9 Celebration of Life MRS SHIRLEY GANENDRA (GOH MARY) (WIFE OF THE LATE MR P. GANENDRA) PASSED AWAY PEACEFULLY ON MARCH 2, 2017 AGE 82 She will be dearly missed, fondly remembered and forever cherished by loved ones SONS: Dato Dr Dennis Ganendra Dr Torkil Ganendra DAUGHTERS-IN-LAW: Datin Shalini Ganendra Daphne Sin Poo Eng GRAND SONS: Jerry Peter Ganendra James Dennis Ganendra Ananda Ganendra Egil Terrence Ganendra GRAND DAUGHTER-IN-LAW: Dr Katharina Mebus GREAT GRAND SON: Simon Ganendra DAUGHTERS: Datuk Rosaline Ganendra Trudy Ranjini Ganendra Turid Shamini Ganendra SON-IN- LAW: Raymond Spence GRAND DAUGHTERS: Juliana Shalini Ganendra Anoushka Laxmi Ganendra Elise Shameni Ganendra Dr Elena Shantini Ganendra GREAT GRAND DAUGHTER: Sophie Ganendra Wake service and prayers will be held at: Ganendra Residence 109, Jalan SS3/ Petaling Jaya Wake Service: 2.00pm onwards from Thursday, 2 March Saturday, 4 March Prayers: 6.00pm 10.30pm, Thursday, 2 March Saturday, 4 March Funeral Prayers will commence at 10.00am on Sunday, 5 March. The Cortege will depart from the Ganendra Residence at 11.00am on Sunday, 5 March for cremation at: Gui Yuan Crematorium, Petaling Jaya, Jalan 229, Seksyen 51A, Petaling Jaya For further information please contact: Mala ( ), Manju ( ), Shangari ( ) and Celine ( ) All donations to Pusat Penjagaan Kanak-Kanak Cacat Taman Megah
11 10 STOCKS WITH MOMENTUM FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY Stocks with momentum were picked up using a proprietary algorithm by Asia Analytica Data Sdn Bhd and first appeared at Please exercise your own judgement or seek professional advice for your specific investment needs. We are not responsible for your investment decisions. Our shareholders, directors and employees may have positions in any of the stocks mentioned. KSL HOLDINGS BHD (+ve) SHARES in KSL Holdings Bhd (fundamental: 2.3/3, valuation: 1.5/3), which triggered our momentum algorithm yesterday, closed up eight sen or 6.9% at RM1.24. It saw 12.6 million shares traded, versus the counter s 200-day average volume of 880,546.5 shares. The group is mainly involved in property development and property investment. Its net profit jumped 162% to RM million in the fourth quarter ended Dec 31, 2016, versus KSL HOLDINGS BHD PCCS GROUP BHD (-ve) SHARES in PCCS Group Bhd (fundamental: 0.35/3, valuation: 0.9/3), which triggered our momentum algorithm yesterday, closed four sen or 10.26% higher at 43 sen. The stock saw some 296,400 shares traded, compared with its 200-day average volume of 21,010 shares. The group, which was listed in 1995, is principally involved in garment manufacturing for OEM (original equipment manufacturer) and in-house brands, services of embroidery and woven fabric, and the printing of self-adhesive stickers, heat transfer labels and nameplates that are commonly PCCS GROUP BHD TA WIN HOLDINGS BHD (-ve) SHARES in Ta Win Holdings Bhd (fundamental: 0.35/3, valuation: 0.9/3), which is principally involved in the manufacturing and exporting of enamelled copper wires and copper rods, triggered our momentum algorithm yesterday. The stock closed seven sen or 12% higher at 60 sen, after 1.67 million shares were done, compared with its 200-day average volume of 28,292.5 shares. The group saw its net profit grow 126% to TA WIN HOLDINGS BHD RM63.67 million in the previous corresponding quarter. Quarterly revenue surged 142% to RM million, from RM95.48 million, due to a change in the sales mix and percentage of completion of its main ongoing projects in Johor Baru and Klang, coupled with a higher gain on the fair value adjustment for investment properties. At the current share price, KSL is trading at 0.54 times its book value. Valuation score* 1.50 Fundamental score** 2.30 TTM P/E (x) 5.54 TTM PEG (x) (0.16) P/NAV (x) 0.55 TTM Dividend yield (%) - Market capitalisation (mil) 1, Shares outstanding (ex-treasury) mil 1, Beta month price range *Valuation score - Composite measure of historical return & valuation **Fundamental score - Composite measure of balance sheet strength & profitability Note: A score of 3.0 is the best to have and 0.0 is the worst to have used in packaging and for display. For the third quarter ended Dec 31, 2016, the group posted a net loss of RM392 million versus a net profit of RM1.93 million a year ago, while revenue slipped 3% to RM million from RM million. For the cumulative nine-month period, the group recorded a net loss of RM9.84 million against a net profit of RM5.08 million a year ago, while revenue dropped 13.36% to RM million from RM428.13, mainly due to lower revenue from the Cambodia apparel division. PCCS Group is currently trading at 0.3 times its book value. Valuation score* 0.90 Fundamental score** 0.35 TTM P/E (x) - TTM PEG (x) - P/NAV (x) 0.27 TTM Dividend yield (%) - Market capitalisation (mil) Shares outstanding (ex-treasury) mil Beta month price range *Valuation score - Composite measure of historical return & valuation **Fundamental score - Composite measure of balance sheet strength & profitability Note: A score of 3.0 is the best to have and 0.0 is the worst to have RM11.34 million in the fourth quarter ended Dec 31, 2016, from RM5.03 million a year earlier, largely on a gain of RM11.34 million from the disposal of subsidiaries. Its revenue, however, slipped 28.8% to RM84.06 million, from RM million, driven by lower selling prices caused by lower London Metal Exchange prices compared with the preceding quarter. At the current share price, Ta Win is trading at 0.61 times its book value. Valuation score* 0.90 Fundamental score** 0.35 TTM P/E (x) - TTM PEG (x) - P/NAV (x) 0.61 TTM Dividend yield (%) - Market capitalisation (mil) Shares outstanding (ex-treasury) mil Beta month price range *Valuation score - Composite measure of historical return & valuation **Fundamental score - Composite measure of balance sheet strength & profitability Note: A score of 3.0 is the best to have and 0.0 is the worst to have MUMBAI/NEW DELHI: Singapore sovereign wealth fund GIC Pte Ltd is in talks to buy a 40% stake in a property rental company owned by India s biggest listed real estate developer DLF Ltd, DLF said on Wednesday. DLF announced back in October 2015 that three shareholders of DLF Cyber City Developers would look to sell their combined 40% stake to reduce conflicts of interest. The three shareholders were also among the founders of DLF. As of end-december, DLF Cyber City Developers had nearly 30 million sq ft of leased space, including information technology parks and malls in the sub- BANGKOK: Thailand s largest industrial estate developer, Hemaraj Land and Development Pcl, expects to boost its land sales by nearly 70% this year as government measures to promote investment in the country s eastern seaboard bring in more buyers. Southeast Asia s second-largest economy, which has seen its growth lag that of its peers since the army took power in 2014 due to weak exports and domestic demand, has said it hopes to attract private investment of about US$34 billion (RM billion) for its Eastern Economic Corridor (EEC) development project. The government is in fact also betting on the EEC plan for 2016 to 2020, to help the economy grow at an annual 5%, after last year s 3.2% rate. The EEC is positive for investment, said David Nardone, an executive director of Hemaraj. It s a good thing that they are looking to enhance infrastructure. BEIJING: China has extended property curbs to two satellite cities, in a sign regulators are concerned that speculators are banking on the country s ambitious urbanisation plans and buying in towns near sprawling metropolises. Non-local residents of Zhuozhou city, less than half an hour away by high-speed train from Beijing, will be restricted to purchasing a maximum of one home and required to make a down payment of at least 30%, according to a local government document released on Wednesday. Local residents of Zhuozhou will be limited to buying two homes and required to put down at least a 50% down payment on their second home. PROPERTY GIC in talks to buy stake in Indian property rental firm BY DEVIDUTTA TRIPATHY & ADITI SHAH BY SATAWASIN STAp*rnCHARNCHAI BY YAWEN CHEN & SUE-LIN WONG urbs of New Delhi, according to a company presentation. It expects its revenue for the year to March to be about 27 billion rupees (RM1.8 billion). Neither DLF nor the stake sellers have said how much the sale would fetch, but local media reports have pegged it at as much as 140 billion rupees. The sellers would reinvest a substantial part of the funds from the stake sale in DLF, the company has said, which will help it reduce its heavy debt load. In a stock exchange filing late on Wednesday, DLF said its audit committee had approved entering into the next phase of talks with an affiliate of GIC, which it did not name, to negotiate definitive transaction documents and execution of an exclusivity agreement. Reuters Thailand s Hemaraj sees land sales up 70% this year Hemaraj acquired last year by top Thai warehouse developer WHA Corp Pcl aims to hike land sales to 1,400 rai (224.2ha) from 830 rai worth 2.43 billion baht (RM million) a year ago, Nardone told Reuters on Wednesday. The estate developer operates nine industrial parks with a combined area of 46,434 rai eight of them in eastern Thailand. It commands the biggest domestic market share of 40% to 50%. The company will spend about three billion baht this year on estate development, Nardone said. The firm still has about 10,000 rai of land to develop over the next six years, and plans to buy more, he added. Hemaraj, which secured a deal last year to build a US$1 billion industrial zone in Vietnam, is looking to see if there are more investment opportunities in the region. Cambodia is a small market with land prices quite high, Nardone said. Myanmar is possible, but the scale of investment there remains small, which does not match us yet. Reuters China extends property curbs to satellite cities Similar but less restrictive measures were imposed in Lianjiang, less than half an hour away by fast train from the southern city of Fuzhou, Chinese media reported on Wednesday. The Lianjiang government made it more difficult for people to buy properties by introducing measures including raising the down payment ratio for first-home buyers borrowing from the housing fund to 30%. Chinese President Xi Jinping said on Tuesday the country will keep its property market stable by guiding real estate investment behaviours and market expectations. Prices of new homes in China surged 12.4% last year, the fastest rate since 2011, prompting more than 20 cities to introduce property curbs to cool the market since October. Reuters
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13 12 BROKERS CALL FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY Cocoaland s earnings exceed estimates Cocoaland Holdings Bhd (March 3, RM2.38) We reiterate our buy call on Cocoaland Holdings Bhd with a higher target price (TP) of RM2.68. We roll forward the basis for our valuations to the full-year 2017 (FY17) earnings per share (EPS) of 17.9 sen pegged to 15 times the price-earnings ratio (PER). We like Cocoaland for its stature as an exporter, the group being able to benefit from the weaker ringgit against the US dollar, a healthy balance sheet in a net cash position, and its dividend payout ratio of more than 50% that translates into an attractive dividend yield of 4.7%. Cocoaland s revenue for this quarter increased by 6% year-onyear (y-o-y) from RM73.3 million in the fourth quarter (4QFY16) to RM77.7 million. This was due to a higher turnover for its Gummy products that was slightly offset by a decline in the beverage division s revenue. Profit after tax (PAT) for 4QFY16 jumped 59.6% y-o-y. The surge in PAT was mainly driven by the decrease in selling and distributing expenses owing in part to lower petrol prices. The reinvestment allowance introduced in Budget 2017 lowered the effective tax rate for Cocoaland. Cocoaland s contract manufacturing business involving its gummy division recorded a higher sales volume which together with favourable foreign currency exchange movements that boosted export receipts, led to a good set of results. On an annual basis, Cocoaland s Cocoaland Holdings Bhd FYE DEC (RM MIL) (F) 2018(F) Revenue Gross profit Profit before tax (PBT) Profit after tax (PAT) PBT margin (%) PAT margin (%) EPS (sen) PER DPS (sen) Dividend yield (%) ROE (%) ROA (%) BV/Share Price/Book ratio Net gearing Net cash Net cash Net cash Net cash Net cash Sources: Company and Inter-Pacific top line fell short of our expectations by 6.5%. However, group earnings surprised us, exceeding our estimates by 24.7%. The group s total revenue of RM272.6 million for the full year 2016 (FY16) increased by 4.2% as compared with the total revenue of RM261.6 million in FY15. Moving forward, we expect PAT margins from Cocoaland to drop from the levels in FY16 as we believe that the cost savings from freight and forwarding charges will be difficult to sustain as petrol prices continue to gradually rise again. Feedback during a discussion session with Cocoaland s management, suggests that gummy candy sales in South Korea, one of the group s export markets, continue to enjoy strong growth in FY16. In China, currently the largest export market for Cocoaland, the group suffered a y-o-y drop in sales due to imitation Cocoaland gummy candy products in the market. However, the problem has been resolved according to management, as the imitation goods producer has been detained and since then, Cocoaland gummy candy sales in China have rebounded. Cocoaland has declared a first interim dividend of 10 sen with exdate on March 14, Entitlement date is on March 16, The dividend yield and payout ratio will be at 4.7% and 52.2% respectively. Inter-Pacific Research, March 1 Nestle to triple its e-commerce business this year Nestle (Malaysia) Bhd (March 3, RM76.20) Maintain hold with unchanged target price (TP) of RM78.00: There could be some headwinds ahead, given the uptick in raw material costs. However, we sense that Nestle (Malaysia) Bhd has room for efficiency gains or that it could pass such cost increases through to consumers. Growing export sales could also act as a buffer. Nestle is fairly valued now, in our view, trading at 27.9 times its price-earnings ratio (PER), in line with its five-year mean. Our discounted cash flow TP (DCF-TP) is unchanged at RM Full-year estimated (FY17E) dividend yield of 3.6% for 2017 should provide support to share price. Management clarified at its analyst briefing that the weaker fourth quarter (4Q16) was partly due to the phasing of A&P activities due to early Chinese New Year. Weaker gross profit margins were largely due to higher raw material costs. Also, Nestle has indicated that there is Nestle (M) Bhd still some room for efficiency gains and that it might only make minor tweaks to selling prices in the medium term. Note that it has largely maintained its selling prices since the second quarter of 2015 (2Q15) and was able to maintain its market share in the full year 2016 (FY16). Management started the briefing with a presentation of its e-commerce involvement. We note that e-commerce in FY16 accounted for only 0.3% of its domestic revenue at RM11 million. The target for FY17 would be to triple it to RM30 million. Nestle will also rely on existing online platforms and has no plans to take on back-end services for now. We maintain our earnings forecasts. Valuation-wise, we believe that Nestle is trading fair at 27.9 times PER, in line with its five-year mean of 27.9 times PER. Our DCF-TP of RM78.00 assumes 7.2% weighted average cost of capital, and 1.5% long-term growth. Maybank Kim Eng, March 2 FYE DEC (RM MIL) 2015A 2016A 2017E 2018E 2019E Revenue 4,838 5,064 5,342 5,716 6,116 Ebitda ,013 1,054 Core net profit Core EPS (sen) Core EPS growth (%) Net DPS (sen) Core PER (x) P/BV (x) Net dividend yield (%) ROAE (%) ROAA (%) EV/Ebitda (x) Net gearing (%) (incl perps) Consensus net profit MKE vs consensus (%) - - (5.6) (5.1) (6.8) Source: Maybank IB Research Revenues rise 2% q-o-q to RM5.5b, driven largely by an increase in Arpu Telecommunications sector Maintain neutral: Axiata Group Bhd, which registered dismal fourth-quarter (4QFY16) results due to weak contributions from its overseas operations, is currently trading at less than half of its domestic peers enterprise value over earnings before interest, taxes, depreciation and amortisation (EV/Ebitda). The group s cash conservation strategy to meet new spectrum fees, asset expansion and regional regulatory changes has drastically led to below-sector dividend yields. Telekom Malaysia Bhd (TM) is expected to be dragged down by continuing losses from webe together with heavy captial expenditure rollouts for the High Speed Broadband 2 and Sub-Urban Broadband projects. Within the sector, only Time Dot- Com Bhd (TDC) outperformed expectations, largely driven by the remarkable 70% surge in retail sales, 17% increase in enterprise revenue and irredeemable rights of use for Telecommunications sector MARKET CAP FAIR VALUE EV/EBITDA (X) PER (X) DIVIDEND YIELD (%) ROE (%) NET DEBT/FY16 STOCKS CALL (RM MIL) (RM/SHARE) FY17F FY18F CY17F CY18F CY17F CY18F CY17F CY18F EBITDA (X) Axiata Hold 39, Maxis Hold 47, Digi Hold 38, Telekom Hold 23, Sources: Company, AmInvestment Bank estimates subsea cable services. Against the backdrop of intense mobile competition, TDC s fibre optic services have consistently delivered double-digit revenue growth rates and the company is currently the only telco in a net cash position. Since edging out Maxis Bhd with the largest mobile subscriber base in the second quarter of financial year 2016 (2QFY16), DiGi.com Bhd has retained its pole position with 12.3 million users, translating into a market share of 34.8% versus Maxis 33.7% and Celcom s 31.5%. Its revenue has also grown to overtake Celcom by 2% in 4QFY16. The telco sector s 4QFY16 results were mixed as Maxis was stronger than expected due to lower year-end marketing costs and average revenue per user (Arpu), while Axiata was negatively affected by the weak XL performance, Sri Lanka s reintroduced value added tax, Idea Cellular s losses in India and Robi-Airtel merger losses in Bangladesh. The only exception is Time dotcom, underpinned by continued fibre-driven data and Internet growth. Both DiGi and Telekom s bottom lines were within expectations. The telco sector s revenues rose 2% quarter-on-quarter (q-o-q) to RM5.5 billion, driven largely by an increase in Arpu by RM1.33 per month. However, Celcom s higher depreciation charges and DiGi s year-end marketing and traffic costs led to the telco sector s 4% q-o-q decline in normalised earnings. Digi gained 50,000 subscribers in 4QCY16 while Maxis lost 120,000 and Celcom 80,000, largely in the prepaid segment which experienced a net attrition of 869,000 to 26.8 million. DiGi s prepaid subscribers instead climbed 211,000, as both Maxis and Celcom removed inactive users from their database. DiGi, which had the lowest net debt over Ebitda of 0.6 times versus two times for Maxis and Celcom, is issuing Islamic debt up to RM5 billion as a standby for new spectrum fees or purchase, or potential corporate acquisition. DiGi s low-gearing level position coupled with its proactive funding strategy and Telenor support are likely to allow the group to offer the most competitive bids for new spectrum awards. AmInvestment Bank, March 2
14 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY BROKERS CALL 13 DRB-Hicom sees better q-o-q performance in auto segment DRB-Hicom Bhd (March 3, RM1.45) Downgrade to neutral with a lower target price (TP) of RM1.31: DRB- Hicom Bhd reported a net profit of RM353 million in its third quarter of financial year 2017 (3QFY17). For the cumulative nine-month period (9MFY17), its net loss narrowed by 37.6% to RM126 million. However, excluding the one-off gain on the disposal of Corwin Holding Pte Ltd for RM398.1 million, loss on remeasurement of previously held equity interest in Pos Malaysia Bhd of RM130.2 million and foreign exchange loss that was recognised in 2QFY17, the core net loss for 9MFY17 widened to RM393.8 million. It was within our estimates, but below market expectations, making up 74.4% and more than 100% of full-year loss estimates respectively. Its revenue for 3QFY17 increased by 29.8% quarter-on-quarter (q-o-q), bringing its 9MFY17 revenue to slightly above our estimates, accounting for 77.3% of our full-year forecast. This was mainly due to first-time consolidation of Pos Malaysia into the group. We downgrade our call on DRB-Hicom to neutral as the share price has already surged by 45% since our upgrade in the last quarter results. Although the finalisation of its choice of a foreign strategic partnership (FSP) is seen as a near-term share price catalyst, we believe this has been largely DRB-Hicom Bhd FYE MAR (RM MIL) 2015A 2016A 2017F 2018F 2019F CAGR (%) Revenue 13, , , , , Operating profit* Pre-tax profit* Reported net profit* EPS (sen) 15.5 nm nm nm PER (x) 9.1 nm nm nm DPS (sen) Dividend yield (%) *reported numbers including exceptional items Sources: Company, PublicInvest Research estimates priced in. We maintain our earnings forecast with a TP of RM1.31 based on sum-of-parts valuation. DRB-Hicom s automotive division s 3QFY17 pre-tax loss narrowed to RM20.1 million owing to an increase in vehicle sales volume, mainly Proton, Honda, Isuzu and Audi. The improvement in Proton sales was on the back of favourable demand for the new Saga and Persona models. Over the cumulative 9MFY17 year to date, DRB-Hicom reported a net loss of RM335.5 million compared with a loss of RM181.1 million in the previous corresponding 9MFY16, due to weaker domestic demand and lower percentage completion of the AV8 project. Its services division revenue for 3QFY17 increased by 70.3% q-o-q due to first-time consolidation of Pos Malaysia into the group, bringing its pre-tax profit up by 67.6% q-o-q to RM94.5 million. Nevertheless, cumulative 9MFY17 pre-tax profit was flat y-o-y. 9MFY17 in the property, asset and construction (PAC) division reported a revenue decline by 1.4% y-o-y due to lower sales of property development projects. However, its property division recorded a pre-tax profit of RM395.2 million, mainly due to one-off gain on disposal of Corwin. We believe the automotive division remains challenging in the 4QFY17 due to a weaker ringgit and muted demand for vehicles. However, we expect earnings to be cushioned by its services segment. Meanwhile, Proton Holdings Bhd is on track to complete its FSP exercises by the first half of PublicInvest Research, March 1 Positive on MSM after sugar price revision MSM Malaysia Holdings Bhd (March 2, RM4.65) Upgrade to hold with a higher target price (TP) of RM4.33: According to a local Chinese newspaper report, the government has raised the retail price of sugar in the country from RM2.84 per kg to RM2.95 per kg. There has not been any official confirmation. However, it quoted Federation of Sundry Goods Merchants Association of Malaysia president Hong Chee Meng as saying that this price increase was communicated to him by the domestic trade cooperatives and consumerism ministry via a text message. The last time Malaysia adjusted sugar prices was during Budget 2014 when the sugar subsidy of 34 sen per kg was scrapped, resulting in an increase in the ceiling price of coarse and fine sugar of 34 sen per kg to RM2.84 per kg. The latest price adjustment of 11 sen per kg, represents an increase of 3.8% in the selling price for retail sugar. It was reported that the increase in price was to reflect the higher raw sugar costs. Raw sugar prices have climbed from 19 US cents per pound on Oct 25, 2013 to US cents per pound currently, while the ringgit has weakened from 3.16 against the US dollar to 4.45 against the US dollar currently. Based on this, we estimate that raw sugar prices have risen by approximately 57 sen per kg or a 44% jump, since the last price adjustment. The hike in raw sugar prices does not come as a surprise to us as it was widely reported that the refiners have been appealing to the government for higher prices as their refining margins have been squeezed by higher raw sugar costs. We understand MSM Malaysia Holdings Bhd has asked for a 20% to 30%, or 56 sen to 85 sen per kg rise in the ceiling price of sugar of RM2.84 per kg from the government. As such, the 11 sen increase falls short of its request. We are raising our financial years 2017 to 2019 (FY17 to FY19) forecast net profit estimates by 13% to reflect the higher average selling price (ASP) adjustments in retail sugar prices. In its FY16, MSM reported a 24% increase in domestic sales volumes to 491,000 tonnes as its customers shifted their purchases to the domestic segment from the industrial segment to enjoy the more favourable selling prices in the domestic market. This higher ASP for domestic retail sugar is partially offset by concerns that the higher prices will lead to lower demand for sugar. We raise our TP which is based on 15.5 times forward price-earnings ratio to RM4.33 to reflect the higher earnings estimates. Overall, we are more positive on MSM following the sugar price revision. This, coupled with improving earnings prospects due to a series of ASP adjustments for sugar, lead us to raise our rating to a hold from reduce. Key upside risk is higher domestic sugar prices, while downside risk is higher raw materials costs. CIMB Research, March 1 Promising start to 2017 for banking industry s loan growth Banking sector Maintain market perform: The banking industry started with a promising loan growth for 2017, advancing by 30 basis points (bps) to 5.6% at RM1.53 billion or 0.4% month-on-month (m-o-m) driven by household loans at +6% yearon-year (y-o-y). Business loans saw improvements with December 2016 and January 2017 growths at 4.5% y-o-y and 5.2% y-o-y. We are not surprised with this positive surge as it is the usual trend for stronger loans in the earlier part of the year before tapering off. The strong growth was also due to loans disbursed outpacing loan repayments. On an annualised basis, growth was at 5.1% y-o-y, within our expectations of 5% to 5.5% growth for Growth in household loans was mainly attributable to loans for residential property at 9.1% y-o-y. Hire purchase continued its downward trend at 0.9% lower y-o-y. Growth in the business segment was driven by non-residential property at 6.1% y-o-y,while working capital continued to surge ahead at 6.3% from December 2016 s 5.3% y-o-y. Despite the positive loan growth, loan applications were weak, declining further at 8.4% y-o-y. Both business and household loan applications dipped with the former declining further by 13.6% y-o-y, while the latter fell slower at 2.8% y-o-y. The weak business applications were dragged down by falling applications for working capital and purchase of non-residential property. The weak demand for household loans was dragged down by falling demand for passenger cars and personal use. Demand for residential property rebounded to 3.4% y-o-y. On a positive note, loan rejection decelerated with loans approved falling slower at 5.1% y-o-y as business continued to decline at 15.3% y-o-y, but loans approved for household rebounded to +6.7% y-o-y. The decline in the business segment was led by falling approval in purchase of non-residential property and other purposed properties. Higher approvals for purchase of residential property drove the approvals for the household segment. Not surprisingly overall approval rate in the system fell 9.5% to 42.5% with business loans falling by 16.2bps from December 2016, but household up by 50bps from December 2016 to 43.3%. Deposit in January 2017 was at RM1.7 trillion, rising by 110bps from December The increase was because of the improved demand for Casa (current account savings account) at 5.8% y-o-y mitigated by the decline in fixed deposit, foreign exchange and other deposits. Casa ratio deposits increased by 20bps to 26.7%. The loan-to-deposit ratio rose marginally by 3bps to 89.77% in January System excess liquidity to total deposit base shrunk slightly by 10bps to 10.2% m-o-m with system excess liquidity falling by 17.5% y-o-y to RM174.2 billion. On a y-o-y basis, asset quality stabilised as system net impaired loans ratio was flattish at 1.20%. Growth in impaired loans seems to be decelerating with business segment slowing to grow 4.8% y-o-y, while the household segment grew slower by10bps to 6.4% y-o-y. Meanwhile, loan loss coverage is still below the 100% mark, but 130bps higher from December 2016 to 91.5% as impaired loans grew at 5.4% y-o-y while provisioning was slower at 0.9% y-o-y. The three-month deposit rate remained intact at 2.92% and the average lending rate for January 2017 was up by 6bps to 4.54%. Interest spread was higher by 5bps to 1.62% in January 2017 from the previous month. We believe this is a temporary blip as excess liquidity is still narrowing and stiff pricebased competition continues to plague the market. Given our view that the banks will be cautious and selective about asset quality with approval rate still tight, the momentum of the system loan growth will hence likely be subdued for Stiff price-based competition might be trending upwards in 2017 as competition for deposits intensify for excess and longer-term funding. However, better pricing on assets might minimise net interest margin (NIM) compression. Our base case estimate for the system loan growth for 2017 is in the range of 5% and 5.5%. Together with the ongoing headwinds such as compressing NIM and elevated credit costs expected to be seen in 2017, there are limited opportunities to drive earnings growth for the industry materially beyond our current expectation of a mid-to-high single-digit growth. We have market perform calls for most of the banking stocks in our universe except for Alliance Financial Group Bhd with a target price (TP) of RM3.79, BIMB Holdings Bhd, with a TP of RM4.15 and which we downgrade to underperform due to challenging loan growth, and Affin Holdings Bhd with a TP of RM2.55, maintained at underperform. Kenanga Research, March 2
15 14 HOME FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY North Korean in murder probe to be deported AG says there is insufficient evidence to charge Ri KUALA LUMPUR: A North Korean man in custody under the probe into the murder of a fellow countryman will be released and deported as soon as possible. Attorney-General (AG) Tan Sri Mohamed Apandi Ali told Bernama yesterday that this was because there was insufficient evidence to charge Ri Jong-chol, 47. Ri has been remanded since Feb 18 in connection with the murder of Kim Jong-nam, the estranged half-brother of North Korean leader Appeals court allows Sisters in Islam s bid for judicial review PUTRAJAYA: The Court of Appeal allowed the appeal by Sisters in Islam (SIS) yesterday against the High Court s refusal of its application to initiate a judicial review to challenge a Selangor fatwa (edict) labelling the organisation as deviant. A three-member panel led by Justice Datuk Tengku Maimun Tuan Mat ordered the case to be sent back to High Court for the merits of the case to be heard before another judge. Tengku Maimun, who presided over the appeal with Justices Datuk Abdul Rahman Sebli and Datuk Zaleha Yusof, said the panel disagreed with the High Court judge in upholding the preliminary objection on the issue of jurisdiction. The Court of Appeal allows the appeal, the matter is returned to the High Court for hearing before another judge, she said after hearing submissions from both parties. The court also fixed March 9 for the case to be mentioned at the High Court. Lawyer A Surendra represented SIS, while state legal adviser Datuk Nik Suhaimi Nik Sulaiman acted for the Selangor Fatwa Committee and Selangor government, and counsel Yusfarizal Yussoff acted for the Selangor Islamic Religious Council. On June 24 last year, the High Court dismissed SIS judicial review application to challenge a Selangor fatwa labelling the organisation as deviant, after ruling that the civil courts did not have jurisdiction to decide over the issue of fatwa. Bernama Kim Jong-un. The remand order for Ri in the case that has garnered international attention will expire today. Deputy Inspector-General of Police Tan Sri Noor Rashid Ibrahim said the decision to repatriate Ri was made after referring to the AG. We have referred it to the attorney-general, who found inadequate evidence to charge him in court. As such, the police will hand him over to [the] Immigration [Department of Malaysia] tomorrow (today) for Don t accuse us of conspiracy, Zahid warns diplomats PUTRAJAYA: Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi warned North Korean diplomats yesterday against accusing Malaysia of conspiring with organisations or other countries in the murder of a North Korean man on Feb 13. Referring to the murder of Kim Jong-nam, Ahmad Zahid said the high-profile case needed to be carefully investigated in view of the relations between both countries. Ahmad Zahid, who is also the home minister, said as diplomats, they should be aware that accusing Malaysia of conspiring with other countries in this issue was not good for relations between Malaysia and North Korea. repatriation to his country of origin, he told Bernama yesterday. It has been reported that Jongnam was at klia2 on Feb 13 to board a flight to Macau when two women suddenly wiped his face with a toxic liquid, which was later identified as the VX nerve agent. Jong-nam reportedly sought help at a customer service counter at the airport and was rushed to Putrajaya Hospital but died on the way. He came to Malaysia on Feb 6. On Wednesday, two foreign women were charged in the Sepang magistrate s court with the murder of Jong-nam. Siti Aisyah, 25, an Indonesian citizen, and Doan Thi Huong, 28, a Vietnamese citizen, were charged with four other people still at large with the murder of Jong-nam, 45, at the klia2 departure hall at about 9am on Feb 13. The women were charged under Section 302 of the Penal Code, which provides for the mandatory death sentence upon conviction. Bernama Ex-TH Heavy CEO charged with laundering RM1.57m SHAH ALAM: Former chief executive officer (CEO) of TH Heavy Engineering Bhd, Datuk Nor Badli Munawir Mohamad Alias Lafti, was charged at the Sessions Court here yesterday with three counts of involvement in money laundering activities involving RM1.57 million four years ago. Nor Badli Munawir, 51, pleaded not guilty and claimed trial after the charges were read to him before Judge Asmadi Hussin. TH Heavy Engineering is an associate company of Lembaga Tabung Haji. Nor Badli Munawir was charged with being involved in money laundering activities by accepting cash of RM400,000, RM570,000 and RM600,000 from Bicara Sepakat Sdn Bhd director Murhasmee Mukhtar. He was alleged to have committed the three offences at a restaurant in Ara Damansara, Petaling Jaya, between 6pm and 8pm on May 2, 2013, June 26, 2013, and Sept 11, The North Korean diplomats who are either here or with international organisations should not consider Malaysia like the countries which they have bullied, he told a press conference after attending the ministry s Excellent Service Award ceremony here yesterday. Ahmad Zahid said that from next Monday onwards, all North Koreans had to apply for a visa to enter Malaysia. He said the decision that would be gazetted soon was made after considering national security. I hope the decision of the home ministry will be implemented by the Immigration Department [of Malaysia] for the sake of national He was charged under Section 4 (1)(a) of the Anti-Money Laundering and Anti-Terrorism Financing Act 2001, which carries a maximum fine of RM5 million, or five years jail, or both, if convicted. Deputy public prosecutor from the Malaysian Anti-Corruption Commission Mohammed Heikal Ismail proposed to the court for the accused to be released on bail of RM50,000 for the three counts as he was also charged with two other counts of money laundering under the same act, involving RM1 million, at the Kuala Lumpur Sessions Court earlier yesterday. For the two charges, he was allowed Nor Badli Munawir pleaded not guilty and claimed trial after the charges were read to him before Judge Asmadi yesterday. Photo by Bernama security, said Ahmad Zahid. He said the decision to impose the visa was made in his capacity as the home minister. Previously, citizens of North Korea only needed to use their passports to enter Malaysia. Ahmad Zahid also said that the North Korean high-level delegation who arrived here met with foreign ministry officials on Monday. Without going into details of the discussion, he said there was no need for the delegation to meet with the Royal Malaysia Police. The delegation came to claim the body in question and discuss the detention of Ri Jong-Chol, a North Korean citizen. Bernama bail of RM50,000. Mohammed Heikal, who was represented by counsel Kitson Foong, on the other hand, applied for the three charges to be tried together with the cases at the Kuala Lumpur Sessions Court. Judge Asmadi allowed Nor Badli Munawir a bail of RM50,000 and the three cases to be transferred to the Kuala Lumpur Sessions Court. He has also set March 15 for remention of the cases in Kuala Lumpur. Bernama IN BRIEF Jong-nam s killing raises spectre of chemical weapons WASHINGTON: The use of the nerve agent VX in the killing of Kim Jong-nam raises the dangerous spectre of a cashstrapped Pyongyang ultimately selling such a chemical weapon to terrorist groups like al-qaeda, a former senior diplomat warned on Wednesday, South Korea s Yonhap news agency reported. The use of VX added to mounting evidence that North Korea was behind Kim s killing in Kuala Lumpur on Feb 13, the news agency reported. The spectre of chemical weapons proliferation of VX in the hands of terrorists now looms ever larger, James Rubin, a former assistant US secretary of state, said in an article in the Politico. Bernama Guan Eng gives third statement on son s groping case GEORGE TOWN: Police recorded a statement from Penang Chief Minister Lim Guan Eng yesterday concerning allegations that his son groped a female student six years ago. Northeast district police chief ACP Mior Faridalatrash Wahid said police recorded the statement from Guan Eng at the chief minister s office in Komtar, George Town. Guan Eng said this was the third time the police recorded his statement on the case. I hope there will be action in the end and I am ready to testify in court, he told a press conference at his office after giving his statement. Bernama Mustapa: No trade embargo on North Korea KUALA LUMPUR: No trade embargo has been imposed on Malaysian companies keen on doing business with North Korean companies or in the country despite the recent murder of Kim Jong-nam at the klia2, said International Trade and Industry Minister Datuk Seri Mustapa Mohamed. Malaysia is not a state economy and [the trade with North Korea] is driven by the private sector, he told a press conference after announcing Malaysia s investment performance in 2016 here yesterday. I believe there aren t many Malaysian private-sector companies operating in North Korea. Bernama First ventriloquist on Malaysian TV dies KUALA LUMPUR: The first ventriloquist to appear on TV shows in Malaysia, Sheikh Mahadi Ahmad Baladram, who was known by his stage name Pakcik Jalud, passed away following a bout of asthma and due to old age at 11am yesterday. Sheikh Mahadi was popular in the 1970s and 1980s and survived by a wife and two children. Bernama
16 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY HOME 15 Bid for prison reform inquiry quashed Appeal struck out on grounds including abuse of court process PUTRAJAYA: The Federal Court has thrown out an appeal brought by lawyer P Uthayakumar to push his bid for the formation of a Royal Commission of Inquiry (RCI) into prison reform. A five-man bench led by Court of Appeal President Tan Sri Md Raus Sharif struck out Uthayakumar s appeal after agreeing to the preliminary objection raised by deputy public prosecutor Nadia Hanim Mohd Tajuddin. Nadia Hanim, appearing for the government, objected to Uthayakumar s appeal on four grounds, namely that the appeal was incompetent and an abuse of court process, while the subject matter was non-justiciable and academic. Md Raus questioned whether the court was empowered to direct the prime minister to form an RCI as it was encroaching on the executive s jurisdiction. Otherwise, there would be chaos if the court were given the power [to direct the prime minister] he said. Uthayakumar responded that the court could do so. The other judges presiding were Federal Court judges Tan Sri Azahar Mohamed, Tan Sri Zaharah Ibrahim, Datuk Balia Yusof Wahi and Datuk Dr Prasad Sandosham Abraham. Nadia Hanim requested for RM100,000 in costs but the court decided not to make any order as to the costs. In his application filed at the Kuala Lumpur High Court s criminal registry in October 2015, Uthayakumar sought for Prime Minister Datuk Seri Najib Razak, with the attorney-general s advice, to propose to the Yang di-pertuan Agong to establish the commission. He named Najib, Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi, Prisons director-general Datuk Seri Zulkifli Omar, Kajang Prison director Abdul Wahab Abdul Kassim, the attorney-general and the Malaysian government as respondents in his application. In February last year, the High Court dismissed Uthayakumar s application, ruling that the criminal High Court did not have the jurisdiction to hear Uthayakumar s application. He was unsuccessful in his appeal at the Court of Appeal, which was dismissed last August on grounds that his appeal was incompetent as his application was not properly brought before the High Court. In the application, Uthayakumar said, among others, that inmates at prisons nationwide should be given healthcare and medical treatment by specialists. In 2013, he was sentenced to 30 months jail for sedition by a Sessions Court in Kuala Lumpur. He was, however, released from prison in October the following year after the Court of Appeal reduced his jail term to 24 months. Also representing the government was deputy public prosecutor Awang Armadajaya Awang Mahmud. Bernama Officer jailed, fined for accepting watch, phone worth RM94,000 IPOH: A Royal Malaysian Navy officer was sentenced to eight months in prison and fined RM80,000 or another 10 months imprisonment yesterday for corruptly accepting a watch and mobile phone worth RM94,216. Kapten Abdul Aziz Gaffor, 56, was meted out the punishment after changing his plea to guilty at the Sessions Court here. He admitted accepting a RM57,071 Rolex watch in March 2014 and a RM37,145 Vertu mobile phone in December 2014 from one Hussin Roslim@Roslind while he was aware that the latter s companies had connections with his official responsibilities. He committed the two offences at Desa Manjung Raya Seri Manjung in his capacity as commanding officer at the RMN Armada Supplies Depot in Lumut. Judge S Indra Nehru also ordered Abdul Aziz s property worth about RM300,000 to be forfeited. Earlier in mitigation, counsel Zamri Idrus who led Abdul Aziz s panel of lawyers comprising Collin Andrew and Fadly Hashim, urged the court not to impose a custodial sentence but just a fine. The accused has lost his pension and gratuity amounting to RM1 million for his service since 1979 and this directly saved cost for the Malaysian government. Bernama Hang Jebat (front row, kneeling, fourth from right) praying at his father s grave after the burial at the Ulu Klang Muslim cemetery yesterday. Photo by Bernama Top movie actor-director Jins Shamsuddin laid to rest KUALA LUMPUR: Film stardirector Tan Sri Jins Shamsuddin was buried at the Muslim cemetery in Hulu Klang yesterday morning. His body was taken to Masjid Al-Ridhuan in Hulu Klang at about 9.30am for prayers before burial at about 10.30am. Hundreds of people consisting of family members, fellow artistes and friends converged on the cemetery to pay their last respects to the Malay film hero. Jins son, Putera Hang Jebat, 30, described his father as a disciplinarian when dealing with his children. My father was serious in matters involving our education. He was strict, but also loving, he told reporters when met at the cemetery. Hang Jebat said Jins hoped that more local artistes would further their studies in the arts to take the Malaysian arts industry to a higher level. My father wanted the local artistes to be knowledgeable, he said, just like Jins who had a PhD. Actor Zul Ariffin, 31, described Jins death as a big loss to the Malaysian film industry. I learnt a lot of acting from him although we never acted together. Jins Shamsuddin was my mentor, he said. Also present at the cemetery was Minister in the Prime Minister s Department, Datuk Nancy Shukri. Jins died on arrival at a clinic in Taman Melawati here, on Wednesday. He was 81. The actor-turned-politician was a two-term Senator from 2004 to He was awarded the Seniman Negara (National Artiste) title by the government in 2009 for his contribution to the development of the Malaysian film industry. Jins leaves a wife, Puan Sri Halijah Abdullah, and three sons. Hang Jebat s brothers are Jefri Jins and Putera Hang Nadim. Bernama
17 16 FOCUS FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY PHOTOS BY BLOOMBERG A Devialet Expert amplifier (left) and Phantom wireless speakers sit on display at the company s showroom. A sonic boom is coming Devialet wants to squeeze the technology of its audiophile amplifier into your mobile phone BY SIMON PARKIN Shortly after lunch on Sept 3, 2010, UPS Airlines Flight 6 left Dubai International Airport for Germany. Among the boxes of lithium batteries tightly packed in the hold was a crate of 50, two-foot-long (61cm), gleaming aluminium cases built in China and destined for France. These were the first shells for a revolutionary if arrestingly expensive stereo amplifier three decades in the making. Inventor Pierre-Emmanuel Calmel had staked everything on them. Twenty-two minutes later, the flight captain, 48-year-old Douglas Lampe, and his first officer, 38-year-old Matthew Bell, called Bahrain s air traffic control to report a co*ckpit fire. Lampe headed back to Dubai. As the cabin filled with noxious fumes, Lampe and Bell pulled on their oxygen masks. Lampe s failed and he left to get a backup, never to return. On the approach to the runway, Bell, now alone in control of the plane, came in too steeply. The landing gear did not extend. He overshot the runaway. Less than 30 minutes after the fire had started, the plane slammed into the ground. Lampe and Bell were killed. The cargo was scorched. For Calmel, the crash was devastating. Two men had died in what appeared to be a terrorist attack. (Two months later, the Yemen-based arm of al-qaeda would claim responsibility for the crash; eventually, black box evidence showed the fire had been started by the lithium batteries). So, too, had Calmel s dreams crashed: The shipment, worth more than 50,000, was uninsured. Calmel, who had quit his comfortable job building 3G systems for Nortel Networks in 2004, had since spent almost all of his savings. The sense of bewildering frustration was compounded when, that same day, Calmel heard that a prototype of the amplifier housed in a mock-up of the casings had won a prestigious award at the IFA consumer electronics fair in Berlin. To hear this amplifier is to enjoy stereo music like never before, wrote the judges in their verdict. Hi-fi will never be the same again. Although Calmel and two co-founders of Devialet SAS had taken in significant investment the week before the crash, the company couldn t afford replacements. Calmel called the factory with a plea: They would pay half the bill now and the rest after they sold some products. It was a brash request from an unproven start-up that had, to date, sold nothing at all. Nevertheless, the factory manager agreed. The call paid off. The first 50 Devialet D-Premier amplifiers retailed at US$12,000. Within 12 months, Devialet had sold 250 of them. Pricey but superior The market for amplifiers that cost thousands of dollars is vanishingly small. But in recent months, makers of cars, TVs, smartphones and headphones have grown increasingly eager to ally with the boutique firms that produce them. By placing audiophile-grade technology in ubiquitous products, the idea is to improve sound quality while adding a frisson of luxury. What s more, the utilitarian need for high-quality audio systems is building as engineers deepen interaction between mankind and machine. Autonomous cars require powerful, dynamic audio systems to communicate to drivers with faultless (and legally defensible) clarity. Futurologists and investors from Seoul to Silicon Valley seem to agree. Korean tech giant Samsung agreed in November to pay US$8 billion (RM35.52 billion) for Harman International, whose high-end equipment is installed in more than 30 million cars around the world, angling to grab a share of the connected-car market. A Chinese billionaire, Qi Jianhong, spent months pursuing a takeover of Denmark s tastefully inventive hi-fi leader Bang & Olufsen before the effort Calmel, a wunderkind inventor who grew up in the Parisian suburbs, made his first audio amplifier at 14 years old. fell apart. He remains a shareholder. And then there s Devialet. In November the Paris-based company, which now employs 250 staff members and generated 60 million in sales last year, raised US$106 million from a suite of investors that ranged from rapper Jay Z to the Qatari sovereign wealth fund. While the company s products are among the most expensive on the market, they are also, many agree, peerless. What Devialet has created is measurably superior, from technical function to design, Andy Rubin, the co-creator of Android and a major investor in Devialet, told me. The result delights my senses and reminds me that there is always room for innovation in our lives. Rubin and the others are betting that within five years, Devialet, a company that started serving the ageing hi-fi market, will democratise this innovation, finding a way to put its technology into products that most of the world s population touch every day. A hobby that blossomed Calmel, a wunderkind inventor who grew up in the Parisian suburbs, made his first audio amplifier at 14 years old. With the help of the plainly titled French book How to Design Your First Audio Amplifier, paired with the unlikely Christmas gifts of an oscillator and alternator, and backed by guidance from his grandfather, an engineer who pioneered train signalling systems, the teenager made the unit out of off-the-shelf parts from a local electronics store. It is still working today, Calmel, now 46, told me on a cold January morning as we met in the cavernous office that his company, Devialet, now shares with Facebook in central Paris. My kids use it for parties. A hobby blossomed. Calmel s friends began to commission him to make audio equipment for them. But when Calmel joined Nortel Networks in the mid-1990s, he was able to use state-of-the-art technologies in CONTINUES ON NEXT PAGE
18 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY FOCUS 17 Engineers working in the lab at the Devialet headquarters in Paris. Sannié picked the name Devialet because he wants to democratise high-quality recorded music. Harnessing warmth and finesse with power and efficiency FROM PREVIOUS PAGE his day job. My electronic itch was fulfilled at work, he told me. When the dot-com bubble burst in the early 2000s, most of Calmel s projects were cancelled. He filled a diary with research and development that focused on audio. It was during this time that Calmel developed the technology that features in all of Devialet s products: the Analogue Digital Hybrid. While it went against all the electronics advice he had ever read, Calmel wanted to find a way to harness the warmth and finesse of analogue amplifiers with the power and efficiency of digital technology. He did this by creating an amplifier that used both, running in parallel: By running digital circuitry alongside analogue circuitry, driving a huge loudspeaker becomes like driving a small headphone, without any loss of power, control or finesse. Calmel, an electrical engineer by training, likens this to adding power steering to an 18-wheel truck, making for an effortless drive without any loss in power or load. Calmel offered his invention to Nortel, but the Canadian telecom company thought it too far outside the core business. So, in 2004, Calmel quit to build a working prototype. It took three years, alongside occasional odd jobs to pay the bills. It was while working on one of these projects that he met Emmanuel Nardin. Calmel mentioned his project to Nardin. He told me that he d wanted to create an audio company ever since he was a kid, Calmel said. Nardin then introduced Calmel to his cousin Quentin Sannié, a crack marketer. Calmel, recognising his deficiencies, saw in the pair a solution. Since the beginning, I knew that I didn t want to be the genius in the garage, building creative, inventive, disruptive technologies that turned into commercial failures, he told me. He invited the pair to his workshop to listen to the prototype amplifier. Calmel chose Mozart s 23rd Concerto, a tender piece of piano playing. Sannié, now 54, told me he wept. If we can bring this to the world, we will sweep everything, he said in French to the group. Prestige or volume? Sannié minutely adjusts my chair. We are in the listening room in Devialet s expansive, expensive flagship store, close to the company s Paris office. On the sideboard are two of the company s top-line US$15,000 amplifiers, each one driving a separate speaker. When Sannié is finally satisfied with my sitting position, he nods for the staff to begin. The room falls quiet and the first, mournful notes of the Mozart concerto strike. The moment is extraordinary. It sounds not like recorded music, but like live music. I can hear the creak of the pianist s pedalling. I can hear the sharp intakes of breath after each percussive flurry of notes. It is arresting. I am not alone in being stirred by the machine s performance. The evening that Sannié first played this piece of music to a roomful of investors, much as he is playing it now, he was asking for half-a-million euros. He took in 1.3 million. After the music trails off, Sannié turns and says: This is what we want to achieve with our technology: to deliver this emotion to all of humanity. It is a vision proclaimed by the company name itself (pronounced: duv -ea-lay), named after Guillaume Vialet, an obscure 18th-century French intellectual who co-compiled the L Encyclopédie Française, a project that attempted to catalogue every aspect of French life and culture. The goal was to democratise knowledge. Sannié picked the name because he wants to democratise high-quality recorded music. But there are risks for any luxury brand that longs for ubiquity. Devialet recently printed a run of records of a recently rediscovered 1975 concert by the jazz singer Sarah Vaugun. These are so-called laquer recordings, 12-inch (30.5cm) records made of aluminium and coated with nitrocellulose lacquer, which wears off after one or two listenings. It is the ultimate audio medium, wincingly expensive, cruelly disposable. For about US$8,000, you can buy a set of four laquers from Devialet, which can be listened to, perhaps, once a decade Former French culture minister Fleur Pellerin with Calmel (left) and Sannie (right) at a Devialet store in Paris last November. Pellerin is on the board of directors of Devialet via her investment fund Korelya Capital. Photo by AFP for the remainder of a middle-aged person s life. With Devialet, as with Dom Perignon or Rolls-Royce, the exclusivity is the core of the appeal. As soon as anyone can have one, nobody wants one. We know that it is a big tension, Sannié says. These are men who enjoy the finer things. And wealth introduces blind spots of privilege for those who run consumer product companies. Critics argue that better sound can be had for half the price Devialet charges. Simon Lucas, the editor of What Hi-Fi? magazine, agrees. It s hard to argue with that assertion, he told me. Then again, you can buy a Jaguar SUV (sport utility vehicle) for a quarter of the price of a Bentley equivalent, and it s pretty much as capable across the board, but people who want the Bentley won t touch the Jag. Hi-fi companies rarely achieve the cachet of Bentley, but Devialet is giving it a bloody good go. In the end, investors like those behind Devialet are less interested in prestige than they are in volume. The total high-end audio market consists of about 100,000 units a year, Sannié says. The market for sound bars, hi-fi systems, connected speakers, is 100 million units a year. But the global market for all sound headphones, TVs, cars, smartphones and all the rest? Three billion. Ticket to ubiquity To fit Calmel s luxurious technology into those tightly packed devices, where making music is not the primary function, the inventor had to drastically reduce its size. He did this by creating a chip that shrank the amplifier s size from 200 sq cm to just one sq cm. The chip, which Calmel carries around in a credit card-size display case in the pocket of his suit jacket, is Devialet s ticket to ubiquity. Rather than outsource development of the microchip, Calmel drew on his experience at Nortel to hire a brilliant, young engineer. Together, over the course of just one year, the pair completed the microchip s design. It is, he says, Devialet s golden ticket to reaching the masses. It will be a step-bystep path, Calmel tells me. We ll start with the car, then move to the TV. And finally, the smartphone. It s a logical plan, and Devialet has the right backers: Sharp for TVs, Renault for autonomous cars, Foxconn for smartphones. The company, it seems, has the chance to become the next Dolby. It might even manage to hold onto some of that exclusive allure while doing so. The Devialet boutique is half-full when I go to leave. One couple is playing a Beyoncé track at a tinnitus-baiting volume. Another man in the corner bends over in curiosity, checking a price tag. I shake Sannié s hand goodbye. He says, with a smile: One day, everyone will own a Devialet. Bloomberg
19 18 COMMENT FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY Juncker forces EU s hand EC president seems to be trying to pressure the bloc into making its biggest decision BY LEONID BERSHIDSKY In trademark European Union (EU) style, European Commission (EC) President Jean-Claude Juncker outlined a vision for the bloc s future on Wednesday by presenting five of them. While some will see an attempt to shape the agenda without taking responsibility, it sounded more like an impatient call for members to find the courage to rally around an actual strategic decision. By striking a neutral position, Juncker is paying tribute to the perception, especially since Brexit, that the EU is under threat as a disunited group of countries with conflicting interests. Yet Europeans trust the union more than their own national parliaments and governments, according to November s Eurobarometer survey, and that trust rose since the spring. More than a third of Europeans have a positive view of the EU, while only a quarter have a negative one. Of the five scenarios, Juncker openly disparaged one for the EU to revert to a trade bloc as many Brexiters wanted while the one about moving full speed towards a federation is not fully backed by a single national leader. Juncker won applause from the European parliament when he declared that the union was about more than free trade, but he refused to rank the three op- tions that are actually on the table: continue as before, create a multispeed EU in which some members move faster toward a closer union than others, or focus the EU s mission on shorter list of goals. There is nothing new about the scenarios, which raises questions about the timing of a report in the Italian daily La Repubblica saying that German Chancellor Angela Merkel and Dutch Prime Minister Mark Rutte asked Juncker to delay his presentation at least until leaders meet on March 25 to commemorate the 60th anniversary of the Treaty of Rome. The newspaper also reported Juncker was ready to resign in frustration, though he formally denied it. I doubt it was a journalistic error. Juncker is fed up with Brussels being blamed for everything that goes wrong in Europe; he devoted part of his speech on Wednesday to that frustration. He seems to be trying to force a debate about the very purpose of the EU. He made it clear that he does not believe the EC has the powers to do what national leaders expect from it for example, to tackle issues like youth unemployment. So that leaves two scenarios. One is the technocratic one, which I believe to be Juncker s current preference: Give Brussels a strong mandate to do just a few important things. Juncker hinted in his speech that he liked this idea, saying Juncker is paying tribute to the perception, especially since Brexit, that the EU is under threat as a disunited group of countries with conflicting interests. Photo by AFP his commission had switched from making 130 regulatory proposals a year to just 23. From a managerial point of view, this makes perfect sense: The European institutions remit is too broad for its budget and its enforcement powers today. Concentrating on just a few common areas of interest perhaps climate change, perhaps common security and border protection would also defuse the criticism of Brussels meddling and overreach. The problem with this plan is that the Brussels bureaucracy is so hard to navigate that national governments likely will not be interested in working to pare it back; they certainly will not get any immediate political benefits from initiating that process. That leaves Merkel s preferred scenario, also backed by France s socialist government and many Western European politicians: a multispeed Europe in which a small group of countries tests closer integration, leading perhaps to a fiscal union, and other nations have the opportunity to join or stay out. There are, however, many problems with this option. Eastern European nations tend to see it as a way to reverse the EU s eastward expansion, and Poland and Hungary the EU s only two countries governed by illiberal, populist governments feel this approach is directed specifically against them. Jaroslaw Kaczynski, the power behind the Polish government, has said that it would lead to the EU s breakdown and liquidation. The multispeed option also reduces Europe s opportunities to be an effective counterweight to a protectionist US. For that, it needs to remove the remaining trade barriers inside the EU, including those created by the circulation of 11 different currencies, and not to make those barriers higher by creating a closer union for a smaller number of states. The choice Juncker outlined is not easy or trivial. The EU s usual response to hard choices is to ignore them, but when all the options are described in clear and stark terms, that is an unattractive, especially cowardly option. It is time the current EU nation state leaders showed some vision, and some determination to back it up. Bloomberg America First financial regulation? BY HOWARD DAVIES AS US President Trump struggles to staff his administration with sympathisers who will help transpose tweets into policy, the exodus of Obama appointees from the federal government and other agencies continues. For the financial world, one of the most significant departures was that of Daniel Tarullo, the US Federal Reserve governor who has led its work on financial regulation for the last seven years. It would be a stretch to say that Tarullo has been universally popular in the banking community. He led the charge in arguing for much higher capital ratios, in the US and elsewhere. He was a tough negotiator, with a well-tuned instinct for spotting special pleading by financial firms. But crocodile tears will be shed in Europe to mark his resignation. European banks, and even their regulators, were concerned by his enthusiastic advocacy of even tougher standards in Basel 3.5 (or Basel 4, as bankers like to call it), which would, if implemented in the form favoured by the US, require further substantial capital increases for Europe s banks in particular. In his absence, these proposals fate is uncertain. But Tarullo has also been an enthusiastic promoter of international regulatory cooperation, with the frequent flyer miles to prove it. For some years, he has chaired the Financial Stability Board s (FSB) little-known but important Standing Committee on Supervisory and Regulatory Cooperation. His commitment to working with colleagues in international bodies like the FSB and the Basel Committee on Banking Supervision, to reach global regulatory agreements enabling banks to compete on a level playing field, has never been in doubt. Already, some of those who criticised him most vocally in the past are anxious about his departure. Who will succeed him? The 2010 Dodd- Frank Act created a vice-chair position on the US Federal Reserve Board which has never been filled to lead the Fed s work on regulation. Will that appointee, whom Trump now needs to select, be as committed as Tarullo to an international approach? Or will his principal task be to build a regulatory wall, protecting US banks from global rules? We do not yet know the answers to these questions, but Fed watchers were alarmed by a Jan 31 letter to Fed chair Janet Yellen from Representative Patrick McHenry, the vice-chairman of the House Committee on Financial Services. McHenry did not pull his punches. Despite the clear message delivered by President Donald Trump in prioritising America s interest in international negotiations, McHenry wrote, it appears that the US Federal Reserve continues negotiating international regulatory standards for financial institutions among global bureaucrats in foreign lands without transparency, accountability, or the authority to do so. This is unacceptable. In her reply of Feb 10, Yellen firmly rebutted McHenry s arguments. She pointed out that the Fed does indeed have the authority it needs, that the Basel agreements are not binding, and that, in any event, strong regulatory standards enhance the stability of the US financial system and promote the competitiveness of financial firms. But that will not be the end of the story. The battle lines are now drawn, and McHenry s letter shows the arguments that will be deployed in Congress by some Republicans close to the president. There has always been a strand of thinking in Washington that dislikes foreign entanglements, in this and other areas. While Yellen s arguments are correct, the Fed s entitlement to participate in international negotiations does not oblige it to do so, and a new appointee might argue that it should not. Such a reversal would generate tensions within the Fed, and where it would leave the FSB, or indeed the Basel Committee, is unclear. In the early days of the Bank for International Settlements (where the Basel Committee s secretariat is located) in the 1930s, the US government declined to take a board seat, and the US was represented by JP Morgan. It is a little hard to see that arrangement working well today. These questions are of more than passing interest in Europe. European capital adequacy directives typically transpose Basel Accords into EU law. If the Basel process stalls, transatlantic deals, which are the crucial underpinning of Western capital markets, will be far harder to reach. There is a further complication arising from Brexit. Absent any special deal between the EU27 and the UK, British and EU regulators will come together in Basel, not in the European Banking Authority. If Basel becomes a talking shop, without the ability to set firm standards, another key link in the chain will be broken, and it will be harder for the UK to argue that if London s banks meet international standards, they should be granted equal treatment in the EU. As central bankers bid farewell to the devil they know, financial regulation has entered a period of high uncertainty and high anxiety for policymakers as they await an announcement from Mar-a-Lago. No likely US Federal Reserve Board candidates have been spotted at poolside, or being interviewed on the golf course, but a decision cannot be far off. Nothing can be taken for granted. The financial world is holding its collective breath. Project Syndicate Howard Davies is chairman of the Royal Bank of Scotland.
20 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY WORLD BUSINESS 19 BoE s Hogg must tackle conflicts of interest BY DAVID MILLIKEN LONDON: The Bank of England s (BoE) new deputy governor, Charlotte Hogg, needs to take steps to avoid possible conflicts of interest in her role as one of Britain s top financial regulators, senior British lawmakers said yesterday. Research Big Bang sifts losers from megastars BY DOMINIC ELLIOTT LONDON: Securities analysts are about to be divided into winners and losers. A European directive will force sell-side firms to charge fund managers an explicit price for European securities research from January The stratification will be pronounced. Many analysts will go; others will be even better paid. The beneficiaries of the new regime are end investors, who should pay less for research in their pension funds or individual portfolios, assuming transaction expenses don t rise to compensate. As things are now, charges for analysis of equities and fixed income instruments get squished together with those for trade execution, which subsidise substandard research. The cost is borne by the retail clients that are an asset manager s ultimate source of funds. It s easy enough to assume the losers are big banks with armies of analysts shielded by a lack of transparent pricing. There will be other casualties, though. Companies with small market capitalisations may find they have fewer, or even no analysts covering their fortunes, since big corporations account for a disproportionate amount of corporate finance and advisory fees. With diminished flows of information and opinion about their stock, the cost of capital might go up. Some independent research boutiques could prosper by underscoring their conflict-free service. But there will be losers there, too. Big investment banks can cross-subsidise research from more profitable businesses like trading. Asian brokerage CLSA said on Tuesday that it was cutting its equity research offering in the Americas chiefly as a result of asset managers paying it less than previously for the same service. That dynamic is likely to be even more pronounced in Europe as the new Markets in Financial Instruments Directive II, as the reforms are known, takes root. The biggest winners could be the top-ranked analysts themselves. For one, the market should get less crowded: Deutsche Bank, to take just one listed company, counts 34 analysts that cover its stock, where perhaps five would do. As with any occupation, price transparency should confer higher salaries on the genuinely talented. And if the superstars feel underappreciated, it shouldn t be hard to find fund managers prepared to take them in-house. Reuters Hogg told a parliament committee on Tuesday that her brother helped set strategy at Barclays, but that she had not decided for certain if she would remove herself from decisions which affected his employer. She also said she saw no potential for conflict of interest over her mother s role as a non-executive Strong signal sent about Fed rate hike Brainard: US is close to reaching full employment, inflation goal BY CHRISTOPHER CONDON & MATTHEW BOESLER WASHINGTON/CAMBRIDGE: One of the US Federal Reserve s (Fed) biggest sceptics about the strength of the global expansion signalled the US economy may be strong enough to withstand an interest-rate increase soon, as key policymakers coalesce around tightening at their next meeting in mid-march. Assuming continued progress, it will likely be appropriate soon to remove additional accommodation, continuing on a gradual path, Fed governor Lael Brainard said in the text of a speech on Wednesday at Harvard University in Cambridge, Massachusetts. We are closing in on full employment, inflation is moving gradually toward our target, foreign growth is on more solid footing and risks to the outlook are as close to balanced as they have been in some time. Brainard, who for months has played the role of lead dove at the Fed by arguing to keep rates lower for longer, said the US economy appears to be in transition. If continued, that would allow the central bank not only to normalise rates gradually but also begin considering when and how to re- BY PHILIP BLENKINSOP director of the Financial Conduct Authority, Britain s main regulator to combat irregularities in markets. The BoE has wide-ranging powers over British banks, and Hogg will be its deputy governor for markets and banking, sitting on committees that set interest rates as well as decide bank capital rules Brainard speaking at the John F Kennedy School of Government at the Harvard University in Cambridge, Massachusetts on Wednesday. She said the US economy appears to be in transition. Photo by Reuters duce the size of its US$4.5 trillion (RM19.98 trillion) balance sheet, she said. Her improved outlook may add momentum to rising expectations among investors that the Fed will raise rates by a quarter percentage point when the Federal Open Market Committee gathers in Washington on March 14 and 15. Hawkish comments from New York Fed president William Dudley and other key regulatory issues. In a report on Hogg, published yesterday, the committee said she had sufficient professional competence and personal independence to be deputy governor, but needed to do more to avoid any real or apparent risk of impropriety. Reuters and San Francisco s John Williams on Tuesday already significantly boosted those expectations. Yields on two-year US Treasuries have climbed about 0.14 percentage point this week, briefly breaching 1.3% for the first time in more than seven years. The probability of a March rate hike implied by prices in federal funds futures contracts has climbed. Bloomberg AB InBev raises merger savings target to US$2.8b LEUVEN: Anheuser-Busch InBev (AB InBev), the world s largest brewer, yesterday raised its forecast for savings and benefits from its SABMiller takeover to US$2.8 billion (RM12.43 billion) from US$2.45 billion after reporting weaker-than-expected earnings due to a beer sales slump in Brazil. The company, now more than double the size of nearest rival Heineken, said the new target included US$1.05 billion that SAB- Miller had announced before the US$100 billion merger. The brewer of Budweiser, Stella Artois and Corona, which makes more than a quarter of the world s beer, said it had already captured US$829 million of savings. The balance of about US$2 billion would come in the next three to four years. The company highlighted difficulties it is facing in its second-largest market Brazil, which is struggling to emerge from a two-year recession, with both lower sales and increased costs due to the weaker real. Last month, Heineken agreed to buy the loss-making breweries in Brazil of Japanese company Kirin Holdings Co Ltd. Core profit fell 3.6% on a likefor-like basis and excluding currency impact in the fourth quarter to US$5.25 billion, well below the US$5.58 billion expected in a Reuters poll of eight analysts. Excluding Brazil, AB InBev said its core profit in the fourth quarter would have risen 6.4%. For the year as a whole, its beer sales would have fallen by 0.1%, rather than the 1.4% decline reported. AB InBev beer sales also declined in North America and Europe in the final quarter, but profits grew due to more expensive brands being sold, while Chinese earnings slipped. Reuters IN BRIEF Capita, Dixons demoted from Britain s FTSE 100 LONDON: Outsourcing company Capita and phone retailer Dixons Carphone will leave Britain s blue-chip FTSE 100 share index following index provider FTSE Russell s quarterly review. Mid-cap investment trust Scottish Mortgage and pest control company Rentokil Initial would be promoted to the index of Britain s biggest companies, FTSE Russell said in a statement late on Wednesday. The changes to constituents will be applied after market close on March 17 and come into force the following trading day, March 20. Following steep declines in their share prices, Capita and Dixons Carphone are currently the smallest, by market value, on the index. They will join the FTSE mid-cap index. Reuters Allied Irish resumes dividend payments DUBLIN: Allied Irish Banks became the first of Ireland s lenders to restart dividends since the financial crash almost a decade ago, proposing a 250 million (RM1.17 billion) payment and saying it was ready for initial public offering this year. The 99% state-owned lender had been in talks with regulators over returning a conservative, ongoing dividend since last year and said yesterday that its strong financial results and robust capital supported the move. Ireland s second-largest bank by assets reported a full-year pre-tax profit of 1.7 billion, down from 1.9 billion a year ago. Reuters Henkel offers US$1.05b to buy Darex Packaging FRANKFURT: German consumer products group Henkel said it had submitted a binding offer to buy the global Darex Packaging Technologies business from GCP Applied Technologies for US$1.05 billion (RM4.66 billion) on a cash and debt-free basis. The bolt-on acquisition would add a business to Henkel s adhesives division that makes sealants and coatings used by manufacturers of beverage, food and aerosol cans, generating annual sales of around US$300 million. US-based GCP said a sale of Darex would allow it to focus on its construction and building materials businesses. Reuters Australia trade surplus shrinks unexpectedly SYDNEY: Australia s trade surplus shrank unexpectedly in January as bad weather hit resource exports and imports rebounded strongly, though the quarterly current account might still edge into the black for the first time since the mid-1970s. Yesterday s data from the Australian Bureau of Statistics showed a trade surplus of A$1.3 billion (RM4.4 million) in January, well short of forecasts of A$3.8 billion. Dragging most on exports was a sharp pullback in non-monetary gold, a highly volatile trade that bounces around wildly from month to month. Reuters
21 20 WORLD BUSINESS FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY China s new banking watchdog vows to tighten supervision This underscores Beijing s determination to fend off financial risks and push reforms BY MATTHEW MILLER & SHU ZHANG BEIJING: China s newly appointed banking regulator vowed yesterday to strengthen supervision of the lending sector, underscoring Beijing s determination to fend off financial risks and push forward with reforms this year. Guo Shuqing, making his first public appearance as chairman of the China Banking Regulatory Commission (CBRC), said he s determined to remove chaos from the regulatory system and safeguard the health of the country and the people. Different regulators, different laws, different rules have caused some chaos, Guo said. His comments follow remarks by President Xi Jinping on Wednesday, who told top policymakers that the nation must unswervingly crack Samsung Elec creates office for product quality improvement BY SE YOUNG LEE SEOUL: Tech giant Samsung Electronics Co Ltd said yesterday it had created an office for global product quality improvements, as the firm tries to recover from the costly failures of its Galaxy Note 7 smartphone. Kim Jong-ho, the president at shipbuilding affiliate Samsung Heavy Industries Co Ltd, would move to Samsung Electronics to head the team overseeing efforts to improve product quality and manufacturing processes, the company said in a statement. The decision is the latest step in the South Korean firm s strategy to rebuild consumer trust after it was forced to end sales of the near US$900 Note 7 phones in October due to fires caused by battery defects. Its Galaxy S8 smartphones are expected to launch in April and Samsung is under immense pressure to ensure its new flagship device runs smoothly and safely. Rival Apple Inc passed Samsung as the world s top smartphone maker in the fourth quarter, while the Note 7 s collapse is estimated to have wiped out about 6.1 trillion won (RM23.75 billion) in operating profit for Samsung. The firm has already pledged multiple improvements to ensure product safety, including more rigorous battery tests and more stringent standards from the initial planning stages. Reuters down on financial irregularities and illegal behaviour, while improving its market supervision. Risk prevention is expected to be a key theme at a meeting of China s parliament starting on Sunday, after years of debt-fuelled stimulus led to BY FAITH HUNG TAIPEI: Taiwan s central bank governor said yesterday the US government is unlikely to label the country as a currency manipulator under the existing criteria used by the US Treasury to assess currency policies of its trading partners. If the US does not change its three criteria, Taiwan will not be labelled, governor Perng Fai-nan told a parliament session. Taiwan meets two of the three US criteria to be labelled a currency Market delivers crazy love letter to China s FedEx BY ROBYN MAK & KATHY GAO HONG KONG: Stock-market investors have sent a love letter to China s FedEx. A rally in the newly listed firm behind SF Express makes boss Wang Wei one of China s richest men. At roughly US$40 billion (RM177.6 billion), his company is now worth nearly as much as Deutsche Post. That looks like an overreaction, driven by hype over e-commerce and a shortage of tradable shares. Few foreigners will have heard of Wang or his delivery group. But shares in SF Holding have shot up more than 70% since it finalised a reverse listing in Shenzhen last week, making it the most valuable company on China s second bourse. On Wednesday, the 46-year-old briefly overtook Alibaba boss Jack Xi (right) listening to French Prime Minister Bernard Cazeneuve (not pictured) during their meeting in Beijing on Feb 22. Xi on Wednesday told top policymakers that the nation must crack down on financial irregularities and illegal behaviour, while improving its market supervision. Photo by Reuters an explosive growth in debt. China s regulators are working on new rules to reduce risks in the booming asset management industry, Guo said. Guo said he will tighten supervision of banks wealth management Taiwan unlikely to be labelled currency manipulator by US manipulator, including intervention to weaken the currency. An upcoming new iphone model, for which Taiwan makes many of the components, is expected to boost its trade surplus with the US. But trade officials in Taiwan have said it shouldn t be a target for trade disputes with Washington because its goods trade surplus with its second-largest trading partner has shrunk in recent years. The administration of US President Donald Trump has said it will analyse the currency practices of products (WMPs), and curb the expansion of banks off-balance sheet business. Chinese investors, lured by high yields and expectations of implicit guarantees by the banks or other financial institutions, have poured trillions of yuan into lightly regulated WMPs, the biggest component of socalled shadow banking in China. Guo also warned banks need to prudently manage loans to property developers and mortgage lending. The leverage ratio of mortgage loans is not too high, but rapid mortgage growth is a concern, he added. The CBRC will restrict lending that it suspects is being used for property market speculation. While a sharply higher number of defaults are expected by analysts this year, Guo said progress is being made in reducing heavy corporate debt burdens. Reuters major trading partners, including China, Taiwan and South Korea. The US Treasury is due to publish a report on these practices in mid-april. The US Treasury designated Taiwan and South Korea as currency manipulators in 1988, the year that Congress enacted the currency review law. China was the last country to get the designation in The Taiwan dollar has risen about 5% so far this year, making it one of Asia s best-performing currencies against the greenback. Reuters Ma as China s second-richest man with a US$29 billion fortune, according to Forbes. SF Express, which focuses on business-to-business deliveries, has emerged as a leader in China s fast-growing logistics sector. But the figures are still hard to justify. At Wednesday s closing price of 70 yuan (RM45.24), the stock is worth 53 times this year s earnings, according to Sinolink forecasts. Even allowing for considerably greater growth potential, that is a huge premium over US peers FedEx and United Parcel Service, which both trade at less than 20 times forward earnings. China s wonky markets deserve some blame. A lack of flotations in Shanghai and Shenzhen means reverse listings will typically lure lots of retail investors. Many punters focus on concepts more than valuation and the delivery sector looks like an attractive bet on China s new economy. SF Holding s small free float makes matters worse. Last year, it agreed a reverse merger with a little-known metals company to gain a backdoor listing. The deal means most SF shares are under a three-year lockup and other restrictions: Eikon categorises just 3% of its total shares as negotiable, suggesting the rest cannot be easily bought and sold. The craze may be starting to fade, however. Caixin says regulators are looking at the rapid ascent. And as of early afternoon yesterday, SF shares had dipped, making Wang merely China s third-richest man. The country s fickle investors can blow hot and cold. Reuters IN BRIEF China awards first RQFII quota for a US-based asset manager to BlackRock HONG KONG: A subsidiary of BlackRock Inc has become the first US-based asset manager to be awarded a Renminbi Qualified Foreign Institutional Investor (RQFII) quota to invest in China s capital markets. Yesterday, BlackRock said that an 11 billion yuan (RM7.1 billion) quota was granted to Black- Rock Fund Advisors by China s State Administration of Foreign Exchange (SAFE). China remains an important investment destination for our clients, said Ryan Stork, the firm s Asia-Pacific chairman. Including the most recent quota granted by the SAFE, BlackRock now has a combined RQFII quota of 35.1 billion yuan. Reuters S Korea January factory output grows most in over 7 years as exports bounce SEOUL: South Korea s industrial production surged at its fastest pace in over seven years in January, driven by a jump in output in the nation s key electronics and semiconductor sectors in a sign of rising economic momentum as exports growth picks up pace. Manufacturing output rose 3.3% in January from a month ago, Statistics Korea data showed yesterday, handily outpacing forecasts for a 0.3% increase and rebounding from a 0.5% decline in December. It backs evidence of a pickup in global demand with data on exports showing solid gains last month. Reuters DBS CEO says pain from oil and gas downturn taken in 2016 SINGAPORE: The worst of the pain from the oil and gas downturn was felt by Singapore banks and other lenders in the region in 2016, DBS Group Holdings Ltd chief executive officer (CEO) Piyush Gupta told Reuters yesterday, forecasting an improved In the short term for most of the banking sector pain was taken in 2016, Gupta said. Singapore s banks, including DBS, have been badly hit by debt payment woes in the city-state s struggling oil services sector. Reuters Philippines 2016 budget deficit hits 353.4b pesos MANILA: The Philippine government had a budget deficit of billion pesos (RM10.43 billion) in December, the biggest monthly gap for 2016, the Department of Finance said yesterday. That brought the full-year gap to billion pesos, or 2.4% of the country s gross domestic product. It was 9% lower than the government s revised programme of billion pesos, but wider than the deficit of billion pesos the year before. Reuters
22 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY WORLD 21 Taiwan navy, air force to train in South China Sea BY J R WU TAIPEI: Taiwan s navy will step up regular patrols around the South China Sea and conduct joint training with the air force in response to China s growing military power in the region, the island s defence minister said yesterday. Looking ahead at the transformation of China s strategy and its investment in new weapons equipment, our military will practise new reforms in our training, Philippines takes big step back towards death penalty BY MYNARDO MACARAIG MINALA: Philippine President Rodrigo Duterte s campaign to bring back the death penalty for drug-related crimes has cleared a major hurdle, with supporters backing it in congress but critics denouncing the planned killings as inhumane. The death penalty bill, along with a proposed measure to punish children as young as nine as adult criminals, are key planks of Duterte s controversial drug war that has already claimed more than 6,500 lives. A majority of politicians in the lower house of congress passed a second reading of the bill on Wednesday night, clearing one of the biggest obstacles in proponents plans to make the death penalty legal by May. The bill limits the death penalty to drug-related crimes. Possessing 500g of marijuana, or 10g of cocaine, heroin or ecstasy, would be crimes punishable by execution, as would manufacturing and selling drugs. AFP BY PANARAT THEPGUMPANAT & SURAPAN BOONTHANOM BANGKOK/NARATHIWAT: Insurgents in one of Thailand s mostly Muslim southern provinces shot and killed four people, including a child, and wounded another two children yesterday, police said, days after a deal was reached with the Thai government to establish a safety zone. A decades-old separatist insurgency in the Muslim-majority southern provinces of Yala, Pattani and Narathiwat has claimed more than 6,500 lives since it escalated in 2004, according to independent monitoring group Deep South Watch. Feng Shih-kuan told a parliamentary session. The navy, during its regular South China Sea patrols, will conduct joint training with the air force in protecting fishermen and supply transports, and in humanitarian rescue drills to expand the combat readiness of our sea and air patrols, Feng said in presenting the ministry s latest report. Taiwan deploys regular supplies to Itu Aba, its sole holding in the disputed South China Sea, Trump s opening falls flat with key audience His reference to illegal immigrants crimes offended Democrats BY RICHARD COWAN WASHINGTON: President Donald Trump s signal of a new openness to immigration reform in a speech to the US Congress did little to win over Democrats who would be essential to revamping the nation s immigration laws. Any goodwill Trump may have sparked with his mention of a chance for real and positive immigration reform in Tuesday s speech, his first to a joint session of Congress, was soon dashed by rhetoric that Democrats said tarred and misrepresented most immigrants. The speech he gave was one of the most anti-immigrant speeches that we heard any president ever give, Senate Democratic leader Charles Schumer said on Wednesday. What offended Democrats, a minority in both chambers, was Trump s reference to past incidents in which one illegal immigrant viciously gunned down two California law enforcement officers and another viciously murdered a 17-year-old boy. Major immigration reform efforts Shooting in Thailand s south kills four despite safety zone deal police Shots were fired into a pickup truck in Rueso village in Narathiwat early yesterday, said Rueso police chief Colonel Ruangsak Buadang. The truck was being driven by the village chief aide who, along with his wife and sister-in-law, was taking their 8-year-old son and two other children to school. The government has said the safety-zone deal was the most progress made in more than two years of negotiation. Talks between the government and the insurgents began in 2013 under then Prime Minister Yingluck Shinawatra but stalled after the military overthrew her government in Reuters failed in Congress under Trump s predecessors, Democratic President Barack Obama and Republican George W Bush, because of deep divisions among lawmakers and Americans over the issue. The challenges include how to protect illegal immigrants who came to the US as children, and how to deal long-term with the estimated 11 million people living in the country without proper documentation. Legislation putting illegal immigrants in line for citizenship threatens to alienate Trump s core conservative voters. Trump said in his speech that reform was possible if both Democrats and Republicans were willing to compromise. Even before Tuesday s address, immigration reform-minded Republicans and Democrats in Congress were holding informal lunches and dinners, as well as conversations on the floors of the House of Representatives and Senate about the possibility of Trump eventually moderating his stance. The Congressional Hispanic Caucus was to meet yesterday and discuss how, or whether, to react the energy rich waters that is also claimed by China, Malaysia, the Philippines, Vietnam and Brunei. Feng s remarks come ahead of China s new defence budget for 2017, to be unveiled on the weekend at the annual meeting of the Chinese parliament. The figures are closely watched around the region and in Washington for clues to China s intentions. Taiwan is increasingly concerned over China s military threat. Beijing has regularly flown Chinese military jets over the South China Sea and recently sailed its first aircraft carrier around Taiwan in what it called routine drills. The deployment of this force is done entirely for the security of our country, Feng said when asked by a lawmaker about the positioning of a surface-to-air anti-missile system, the Patriot Advanced Capability, on Taiwan s eastern coast. The Patriot anti-missile system is among Taiwan s defence wares. Reuters to Trump s signal of openness to reform at a time when a feeling of fear and hopelessness pervades Latino communities, one House Democratic aide said. Republican Representative Mario Diaz-Balart of Florida, a leading voice for overhauling immigration laws, hoped that once the White House dealt with healthcare and tax reforms this year, Trump might tackle vexing immigration problems. Remember that old adage that only Nixon could go to China, said Diaz-Balart, a self-described optimist and son of Cuban immigrants who has laboured for years over immigration laws. He was referring to Richard Nixon, who in 1972 became the first US president to visit the People s Republic of China despite having built his political career as the arch-enemy of communist governments. Democratic Representative Luis Gutierrez of Illinois challenged Attorney General Jeff Sessions and Trump adviser Steve Bannon, who have both taken a hard line on illegal immigration, to pledge support for immigration reform. Reuters Thai police officers inspecting a site of the attack at Rueso district, Narathiwat, Thailand yesterday. The government has said the safety-zone deal was the most progress made in more than two years of negotiation. Photo by Reuters IN BRIEF Japan PM Abe says no defence budget ceiling as 1% to GDP TOKYO: Japanese Prime Minister Shinzo Abe said yesterday he will not cap military spending below 1% of the nation s economy, reaffirming his commitment to go further than other postwar governments by making the armed forces more robust. In Abe s four years as leader, his government has reinterpreted the pacifist constitution to allow Japanese troops potentially to fight overseas, eased curbs on military exports and erased the defence-budget cuts of previous administrations. Under the budget bill for the year from April, Japan s defence spending will rise for a fifth straight year to a record 5.1 trillion (RM billion). Reuters Pelosi calls on Sessions to quit after Post discloses Russia contacts WASHINGTON: US House Democratic leader Nancy Pelosi called on Attorney General Jeff Sessions to resign on Wednesday after the Washington Post reported he failed to disclose two meetings he had with Russia s ambassador before Donald Trump was inaugurated as president. Citing Justice Department officials, the Post said Sessions spoke twice last year with Russia s ambassador while he was still a US senator. He failed to disclose the encounters when asked during his confirmation hearing to become attorney general about possible contacts between Trump s campaign and Russian officials, the newspaper said. Reuters N Korea uses sophisticated tools to spy on citizens digitally report SEOUL: Isolated North Korea is developing sophisticated tools to digitally spy on its citizens, who are increasingly using mobile devices to connect to each other, a US government-funded report released on Wednesday says. The report, Compromising Connectivity, says North Korea has allowed the growing use of mobile phones and domestic Internet access in return for the detailed information the network feeds Pyongyang s surveillance state. Reuters China accuses rights activist of fake news fabricating torture BEIJING: Chinese state media said yesterday that a prominent Chinese rights activist had made up fake news of torture to grab international headlines, but his defenders said the accusations were a coordinated attempt to smear his name. State media said disbarred lawyer Jiang Tianyong, 46, was behind news reports of police torturing another detained rights activist, Xie Yang, and that Jiang had later admitted to telling Xie s wife to make up details of torture in captivity to attract attention to the case. Reuters
23 22 live it! WELL-BEING. THE ARTS. WINE+DINE. STYLE+DESIGN. LEISURE FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY WEEKEND by numbers to Your quick guide to rest and relaxation. By Shalini Yeap 3 music gigs to groove to Masquerade The Malaysian Piano Quartet presents its Masquerade concert with a wide range of music, from J.S. Bach to Harry Potter and Pirates of the Caribbean. Choose between the 3pm and 8pm shows tomorrow at KuAsh Theatre, Taman Tun Dr Ismail, 48 Jalan Tun Mohd Fuad, Taman Tun Dr Ismail, Kuala Lumpur. Tickets priced at RM50 (inclusive of one complimentary drink, to be redeemed an hour prior to the show) can be purchased at Julliad Music School of Performing Arts in Aman Suria and Harmony Music Centre in Damansara Utama. Visit MPQ8hands for full details of ticketing locations and more. Tarakucha BoboKL s Tarakucha features Sean Ghazi, Ida Mariana, Maya Tan and Ruzana Ibrahim tonight. There will also be a nine-piece big band led by Nish Tham and supported by all the other performers. Show time is at 9.30pm today and tomorrow. The cover charge is RM120 or RM 90 (for diners on a minimum spend of RM100 per person). BoboKL is located at 65-1 Jalan Bangkung, Bangsar, Kuala Lumpur. Visit or call (03) for reservations and more. Talitha Tan Be serenaded by the sultry voice of Talitha Tan at Alexis Ampang where she will be performing today and tomorrow night. Tan will be showcasing her original songs composed from a breadth of genres including jazz, R & B and soul. Show time is at 10pm at Alexis Bistro Ampang, Great Eastern Mall, 303 Jalan Ampang, Kuala Lumpur. There will be a music charge of RM10++. Visit or call (03) for more information. 2 places for unique purchases Black Market A flea market is a good place to make some interesting finds at good prices. This weekend, head to Black Market s indoor weekend flea market where you can expect to find rare pieces, past seasons collections, a range of pre-loved and vintage items, vinyl as well as other strange picks. All purchases are by cash transactions only and do bring along your own shopping bags. Black Market is located at Row, Jalan Doraisamy, Kuala Lumpur, and takes place between 12 noon and 7pm throughout the weekend. Visit the venue s social media page or blckmktwknd@gmail.com to book a spot as a vendor. Visit blckmktwknd for more information. Battery Acid Club Lovers of analogue photography can expand their collection at Battery Acid Club tomorrow. Besides taking a break from digital photography, you will also be among fellow analogue photography enthusiasts whom you can trade ideas and discuss with. If you re a fan of the oldschool photography method, make your way to Battery Acid Club at 21 Jalan SS21/34, Damansara Utama, Petaling Jaya, between 11am and 6pm tomorrow. Visit or call (03) for more details.
24 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY live it! 23 WELL-BEING. THE ARTS. WINE+DINE. STYLE+DESIGN. LEISURE 1 social cause to support Wavemakers, Arara Entertainment and the United Nations High Commissioner for Refugees (UNHCR) present the Food and Arts of the Middle East (FAME) Festival at Publika KL this weekend. Beginning tomorrow, the two-day, refugee-powered festival will showcase arts, craft and food by refugee artisans from Syria, Yemen, Iran and Pakistan at the bazaar (11am to 6pm). There will also be cooking classes at Nathalie Gourmet Studio as well as a theatre performance at Blackbox (8pm to 9.30pm), directed by Malaysian actor/performer Razif Hashim. Played by a cast of refugees with no previous acting experience, We Are Human aims to tell the stories of the refugees who fled their homes due to various reasons. Visit for more information on the festival. 3 ways to get your artsy side alive Romeo and Juliet The world-renowned acting troupe, The HandleBards presents a Shakespearean classic story of fragile young love against the backdrop of a deep-seated family feud: Romeo and Juliet. Watch the riotously funny production featuring a four-strong comical ensemble who play all 19 roles! Tickets priced at RM60 and RM75 can be purchased via Take your pick between the 12.30pm show today and tomorrow s 3pm or 8.30pm show that will take place at PJ Live Arts, The School Jaya One, 72A Jalan Universiti, Petaling Jaya. Visit or call (03) for more information. Life Sdn Bhd This year, the Life Sdn Bhd series explores the theme of people, the very thing that it believes has kept the series alive. The performance is made up of stories that were uncovered accidentally over a cup of coffee as well as others that were sought out or asked to be shared, all of which offer a glimpse into their life to a group of people willing to open their ears and hearts to listen. Directed by Datuk Faridah Merican, the cast comprises theatre and non-theatre people Joe Hasham, Karan Hundal, Sharon Ohno, Roshinee Mookaiah, Veshalini Naidu, Ian Chow, Mark Beau De Silva, Omar Ali, Ryonn Leong and Sukhbir Cheema. Tickets priced at RM45 and RM35 (concession) can be purchased via Show times are at 8.30pm today and tomorrow at 3pm at Pentas 2, Kuala Lumpur Performing Arts Centre, Sentul Park Jalan Strachan off Jalan Sultan Azlan Shah, Kuala Lumpur. Visit or call (03) for more. Afterwork Acclaimed writer and director Jo Kukathas will be running a two-day creative writing workshop this month and is open to all levels. Working in the gallery, participants will be encouraged to create new writing inspired by some of the ideas and themes in the Afterwork exhibition migration, identity and the idea of home. The works can ultimately be poems, new pieces for the stage, short stories or reflective essays. Participants will have the opportunity to share drafts of their work and discuss new ideas. The workshop will be held over two sessions tomorrow as well as March 18 at Ilham Gallery 8 Jalan Binjai, Off Persiaran KLCC, Kuala Lumpur and participants are to attend both. Visit or info@ilhamgallery.com for further details. 1 good reason for a test drive Tan Chong Motor Assemblies Sdn Bhd recently announced a cumulative production of 1,000,000 Nissan vehicles in the country last month, a milestone that coincides with Tan Chong Group s 60th anniversary this year. Marking this achievement, Edaran Tan Chong Motor Sdn Bhd is offering seven years of unlimited mileage across all Nissan models as well as Nissan Almera 1.5L Automatic, from as low as RM600 a month, as part of Tan Chong s 60 Anniversary Super Deals Campaign. Visit the Nissan Test Drive Carnival happening at IOI City Mall, Putrajaya, to test-drive a Nissan model. While there, also look out for the Nissan UEFA Champions League Campaign that will run throughout the month of March offering customers who purchase a Nissan a chance to win an all-expense paid trip to experience UEFA Champions League semi-finals live in Europe. For more information, log on to or call ETCM s Nissan Customer Care Centre at local movie to catch on the big screen Inspired by Malaysian Unit Tindakan Khas, J Revolusi is an action-packed film that starts showing in cinemas this week. Directed by Zul Azhar, the film follows the story of Jay Zulkarnain, an assault leader for Malaysia s elite and deadly special force. As the story progresses, it is learnt that a mysterious terrorist has framed Jay for the murder of one of his squad members, and has also captured his sister Dian, who is an undercover agent. To save his sister, Jay must race against time to unravel the secret and reason as to why this terrorist is trying to destroy him. Visit to find out more about screening times and locations.
25 24 SPORTS FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY Thrilled Hamilton sees turbulence ahead Triple world champion warns that new cars may not do much for F1 BY ALAN BALDWIN BARCELONA: Triple world champion Lewis Hamilton has warned that Formula One s (F1) new cars, while better looking and thrilling to drive, may not do much for the racing when the season starts in Australia on March 26. The Briton, clear title favourite after the retirement of Mercedes teammate and champion Nico Rosberg, Wada encouraged by Putin s recognition of antidoping failures BY GREG STUTCHBURY WELLINGTON: The World Anti-Doping Agency (Wada) has welcomed the recognition by Russian President Vladimir Putin that his country s doping system was not working and needed an overhaul. Wada released late last year the second part of Richard McLaren s investigation into doping in the country, which concluded that there had been state-sponsored systematic doping and cover-ups in Russian sport over a five-year period. While Putin denied on Wednesday the McLaren report s findings about a state-sponsored doping programme, he did acknowledge that there had been individual instances of sports doping, which indicated that the country s anti-doping system was not working. Wada is encouraged by this sign of progress from the highest political levels in Russia, Wada president Craig Reedie said in a statement. Since November 2015, the agency, UK Anti-Doping and others have been working hard in supporting Russia s efforts to rebuild a credible anti-doping system. This public admission by Russian President Vladimir Putin that their anti-doping system has failed is an important step in the right direction. Wada released an earlier report in late 2015, detailing its concerns about doping in the country, and Russian sports have faced sanctions on competition and hosting events ever since. National anti-doping organisations have also called for a blanket ban on sporting contact with the country. Wada director-general Olivier Niggli added that he hoped Putin s statement would allow the Russian National Anti-Doping Agency to follow the road map set out for it to return to compliance with the Wada code. Reuters said overtaking could be even more of a problem than it was before. Now the turbulence is easily twice as powerful from the car, coming out of the back of the car, he told reporters after three days of testing, with Mercedes doing more laps and going faster than any of their rivals. So, that just magnifies the issue we had before. Let s hope the racing s fantastic, but don t hold your breath, I d say. The testing time set by Hamilton s new teammate Valtteri Bottas on Wednesday would have put the Finn on pole at the Spanish Grand Prix in any year since Circuit de Catalunya changed its layout in Hamilton, who had concentrated mainly on putting on mileage, said the performance was amazing in terms of the speed carried through corners. It definitely is the fastest that I Djokovic battles into Acapulco quarter-finals ACAPULCO (Mexico): World No 2 Novak Djokovic battled into the quarter-finals of the ATP Acapulco event on Wednesday, rallying for a 4-6, 6-4, 6-4 triumph over Juan Martin del Potro. The Serbian star led a parade of the top four seeds into the last eight, with second-seeded Rafael Nadal, No 3 Marin Cilic and fourth-seeded defending champion Dominic Thiem all advancing. Top-seeded Djokovic, back in action this week for the first time since his shock second-round exit at the Australian Open in January, had to dig deep against former US Open champion del Potro have ever driven in Formula One, said the 32-year-old, who made his debut with McLaren in We are flat [out] in corners that we ve never been before. I hope it splits the men from the boys, he said of the physical challenges the cars impose on drivers with the fatter tyres and revised aerodynamics subjecting them to increased G-forces through corners. Reuters after falling a break down in the third set. He broke back immediately to level the set at 4-4, then held at love to pile the pressure on del Potro, who fended off one match point with a service winner, but couldn t hold off Djokovic on the next. Every match that I ve played against del Po[tro] in the past couple of years has been very close, really enjoyable to play and great for the crowd to watch, said Djokovic. I am very happy and proud to win this match, even though I was close to losing when he was serving at 4-3 up in the third set. I just tried to get as many returns back in play as possible. The Serbian advanced to a quarter-final clash with Australia s Nick Kyrgios, a 6-2, 6-4 winner over American Donald Young. Djokovic s travails in a match lasting two hours and 38 minutes were a far cry from Nadal s comprehensive 6-1, 6-1 victory over Paolo Lorenzi. I played a complete match today (Wednesday), and I m feeling great after a month without playing, said Nadal, a two-time winner in Acapulco, who is playing his first tournament since falling to Roger Federer in the Australian Open final. AFP Barty cruises to Alya WTA Malaysian Open quarter-finals KUALA LUMPUR: Having tried her hand at cricket, former Wimbledon junior champion Ashleigh Barty of Australia has been having decent outings on her return to tennis. In the battle of qualifiers yesterday, Barty thrashed Japan s world No 201 Miyu Kato 6-0, 6-3 in 59 minutes to book her spot in the quarter-finals of the Alya WTA Malaysian Open at TPC Kuala Lumpur. World No 158 Barty will face China s Zhang Kai Lin for a semi-final spot today. The 21-year-old played near-perfect tennis and broke Kato s serve three times in the first set. The Australian broke twice in the second set to close the match. Barty took a break from tennis in September 2014 and switched to cricket, where she signed a contract with Brisbane Heat for the inaugural Women s Big Bash League in However, the right-handed player resumed her tennis career in February last year. The scores in both sets look impressive, but the match was very tough. I have played many matches here and the conditions are not Barty in action during the Alya WTA Malaysian Open second-round match against Kato at TPC Kuala Lumpur yesterday. Barty broke twice in the second set to close the match. easy for anyone, she said. In another second-round match, China s Xinyun Han also recorded an effortless 6-3, 6-0 win over qualifier Anna Kalinskaya of Russia. World No 139 Han praised the 173rd-ranked Kalinskaya for her performance yesterday. It was not easy. She s very young and a good player. I just did my best and I think I performed well. There are a number of Chinese players in the tournament and it will be good [if] we make the number in the semi-finals too. Everyone has a good chance, said Han. Meanwhile, Belgium s Elise Mertens and Turkey s Ipek Soylu reached the doubles semi-finals by outlasting Shuko Aoyama of Japan and China s Yang Zhaoxuan 6-2, 3-6, IN BRIEF Luis Enrique to leave Barcelona at end of season BARCELONA: Barcelona coach Luis Enrique is leaving the Spanish La Liga champions at the end of the season when his contract expires after three trophy-laden seasons at the club. Luis Enrique made the announcement at a news conference after Barca thrashed Sporting Gijon 6-1 at the Nou Camp on Wednesday to keep up their bid for a third league title under the management of their former midfielder. I would like to thank the club for the confidence they have shown in me; it s been three unforgettable years, said Luis Enrique, who has won two La Liga titles, two King s Cups and the 2015 Champions League since succeeding Gerardo Martino in Reuters Williams call time on testing after Stroll crash BARCELONA: Williams pulled out of the final day of Formula One s first preseason test for safety reasons after Canadian teenager Lance Stroll crashed the car into a tyre wall on Wednesday. The former champions said a thorough inspection of the new FW40 car overnight had revealed some damage to the chassis. Therefore, on safety grounds, the team will not run the car today (Wednesday), a statement said. A second chassis will be prepared at track this afternoon (Wednesday), as originally planned, with the team aiming to be back on track for the second test next week starting on Tuesday. Reuters Federer stunned by Russian Donskoy in Dubai DUBAI: Roger Federer blamed a lack of commitment for his shock 3-6, 7-6(7), 7-6(5) loss to world No 116 Evgeny Donskoy of Russia in the Dubai Open second round on Wednesday. Swiss Federer, playing his first tournament since winning his 18th Grand Slam title at the Australian Open in January, wasted three match points in the second set, and led 5-2 in the third before the 26-year-old Donskoy fought back. Third seed Federer, seven-time champion in Dubai, surged 5-1 ahead in the deciding tiebreaker, but qualifier Donskoy reeled off six points in a row to secure a remarkable victory. Reuters Golfer Simon Hobday dies aged 76 CAPE TOWN: Simon Hobday, one of golf s most colourful characters, has died aged 76, South Africa s Sunshine Tour announced yesterday. Hobday won 17 professional events in his career, which started in 1969, including two on the European Tour and the US Senior Open in South African-born Hobday had a reputation as a carouser, practical joker and raconteur, but also as one of the best ball-strikers on the circuit. Reuters
26 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY Markets BURSA MALAYSIA MAIN MARKET 25 Bursa Malaysia Sectorial Movement INDICES CLOSE +/- %CHG KLSE COMPOSITE 1, KLSE INDUSTRIAL 3, CONSUMER PRODUCT INDUSTRIAL PRODUCT CONSTRUCTION TRADE & SERVICES KLSE FINANCIAL 15, KLSE PROPERTY 1, KLSE PLANTATION 8, KLSE MINING Bursa Malaysia Main Market INDICES CLOSE +/- %CHG TECHNOLOGY FTSE BURSA , FTSE BURSA MID 70 14, FTSE BURSA SMALL CAP 16, FTSE BURSA FLEDGLING 17, FTSE BURSA EMAS 12, FTSE BUR M SIA ACE 5, FTSE BUR EMAS SHARIAH 12, FTSE BUR HIJRAH SHARIAH 13, FTSE/ASEAN 40 9, YEAR YEAR DAY DAY CODE COUNTER CLOSING +/ VOL VWAP* PE# DY MKT CAP HIGH LOW HIGH LOW (RM) (RM) ( 000) (RM) (X) (%) (MIL) CONSUMER PRODUCTS ACOSTEC AHEALTH UNCH AJI AMTEK APOLLO ASIABRN ASIAFLE BAT , BIOOSMO UNCH BONIA CAB UNCH CAELY CAMRES CARLSBG , CCK UNCH CCMDBIO CHEEWAH UNCH CIHLDG UNCH CNOUHUA COCOLND CSCENIC CSL UNCH DBE DEGEM DLADY , DPS UNCH EKA UNCH EKOWOOD EMICO ENGKAH UNCH EURO UNCH EUROSP F&N , FARMBES FCW FFHB FPI GCB GOLDIS , PA GOLDIS-PA HBGLOB HEIM , HLIND UNCH , HOMERIZ HOVID UNCH HUPSENG UNCH HWATAI IQGROUP JAYCORP UNCH JERASIA KAREX , KAWAN , KFM KHEESAN KHIND KOTRA KSTAR LATITUD LAYHONG UNCH LEESK LIIHEN LONBISC LTKM MAGNI MAXWELL UNCH MBG MFLOUR UNCH MILUX MSM , MSPORTS MWE NESTLE , NHFATT NICE NIHSIN UNCH NTPM UNCH OCR PA OCR-PA OFI UNCH ORIENT UNCH , PADINI , PANAMY , PAOS PARAGON PCCS PELIKAN UNCH PMCORP POHKONG POHUAT PPB , PPG PRLEXUS PWF PWROOT QL , REX SASBADI SAUDEE SERNKOU UNCH SGB PA SGB-PA SHH SIGN UNCH SINOTOP UNCH SNC SPRITZER SWSCAP SYF TAFI TCHONG , TEKSENG TEOSENG TGL TOMEI TPC UMW , UPA WANGZNG XDL XIANLNG XINQUAN UNCH YEELEE YEN YOCB UNCH YSPSAH ZHULIAN UNCH INDUSTRIAL PRODUCTS A UNCH ABLEGRP ABRIC ACME ADVENTA UNCH ADVPKG * Volume Weighted Average Price # PE is calculated based on latest 12 months reported Earnings Per Share YEAR YEAR DAY DAY CODE COUNTER CLOSING +/ VOL VWAP* PE# DY MKT CAP HIGH LOW HIGH LOW (RM) (RM) ( 000) (RM) (X) (%) (MIL) AEM UNCH AFUJIYA AISB AJIYA UNCH AKNIGHT ALCOM UNCH ANCOM ANNJOO , ANZO UNCH APB UNCH APM ARANK ASTINO ATTA ATURMJU BHIC BIG BKOON BOILERM UNCH BOXPAK BPPLAS BRIGHT BSLCORP BTM CANONE CAP CBIP , CCM CEPCO CFM CHINWEL CHOOBEE CICB CME UNCH CMSB UNCH , CNASIA COASTAL COMCORP COMFORT UNCH CSCSTEL CYBERT CYL CYMAO UNCH DAIBOCI UNCH DENKO UNCH DNONCE UNCH DOLMITE UNCH PA DOLMITE-PA DOLPHIN DOMINAN DRBHCOM UNCH , DUFU EG UNCH EKSONS EMETALL EPMB EVERGRN UNCH EWEIN FACBIND FAVCO FIBON FIMACOR FLBHD UNCH GBH GESHEN GLOTEC GOODWAY GPA UNCH GPHAROS UNCH GREENYB GSB GUH HALEX HARTA , HCK HEVEA UNCH HEXZA HIAPTEK HIBISCS UNCH HIGHTEC HIL HOKHENG HUAAN UNCH HUMEIND UNCH , HWGB UNCH IDEALUBB UNCH IMASPRO IRETEX JADI UNCH JASKITA JAVA JMR JOHOTIN JTIASA , KARYON UNCH KEINHIN KIALIM KIANJOO UNCH , KIMHIN KINSTEL UNCH KKB KNM UNCH KOBAY UNCH KOMARK KOSSAN , KPOWER KSENG , KSSC KYM LAFMSIA UNCH , LBALUM LCTH UNCH LEONFB LEWEKO UNCH LIONDIV UNCH LIONIND LSTEEL LUSTER UNCH LYSAGHT MASTEEL MASTER MBL UNCH MCEHLDG MELEWAR MENTIGA MERCURY UNCH METROD MIECO MINETEC MINHO UNCH MSC MUDA MYCRON NAKA NWP NYLEX OKA ORNA PA PCHEM , PECCA PENSONI UNCH PERSTIM PERWAJA PETGAS , PETRONM UNCH , PIE PMBTECH PMETAL , PNEPCB UNCH POLY PPHB UNCH PREMIER PRESTAR PRG PWORTH QUALITY RALCO RAPID UNCH RESINTC RUBEREX SAB SAM SAPIND UNCH
27 26 Markets BURSA MALAYSIA MAIN MARKET FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY YEAR YEAR DAY DAY CODE COUNTER CLOSING +/ VOL VWAP* PE# DY MKT CAP HIGH LOW HIGH LOW (RM) (RM) ( 000) (RM) (X) (%) (MIL) SCABLE SCGM SCIB SCIENTX , SCNWOLF SCOMIEN SEACERA SEALINK UNCH SEB SHELL , SIGGAS SKBSHUT SKPRES , SLP UNCH SMISCOR SSTEEL STONE SUBUR SUCCESS SUPERLN SUPERMX , TAANN , TADMAX TAS UNCH TASEK , P TASEK-PA TATGIAP UNCH TAWIN TECGUAN TECNIC TEKALA TGUAN TIENWAH TIMWELL UNCH TOMYPAK TONGHER TOPGLOV , TOYOINK TURIYA UNCH UCHITEC UNCH ULICORP UMSNGB UNCH VERSATL UNCH VS , WASEONG WATTA UNCH WEIDA UNCH WELLCAL WONG WOODLAN WTHORSE UNCH WTK WZSATU YILAI YKGI YLI CONSTRUCTION ARK AZRB BDB BENALEC BPURI BREM UNCH CRESBLD DKLS ECONBHD , EKOVEST , FAJAR GADANG GAMUDA , GBGAQRS HOHUP HSL UNCH IJM , IKHMAS IREKA JAKS JETSON KERJAYA UNCH , KIMLUN LEBTECH MELATI UNCH MERGE MITRA MLGLOBAL UNCH MTDACPI UNCH MUDAJYA UNCH MUHIBAH UNCH , PESONA PLB PRTASCO PSIPTEK PTARAS UNCH SENDAI SUNCON , SYCAL TRC UNCH TRIPLC TSRCAP VIZIONE UNCH WCEHB , WCT , ZECON ZELAN TRADING SERVICES AAX UNCH , AEGB UNCH AEON , AHB AIRASIA , AIRPORT , ALAM UNCH AMEDIA UNCH AMWAY , ANALABS APFT ARMADA , ASB ASTRO , ATLAN , AWC UNCH AXIATA , AYS BARAKAH BAUTO , BHS BINTAI BIPORT , BISON BJCORP UNCH , BJFOOD BJLAND UNCH , BJMEDIA UNCH BJTOTO , BORNOIL BRAHIMS UNCH BSTEAD UNCH , CARIMIN UNCH CARING CCB CENTURY UNCH CHEETAH CHUAN CNI COMPLET COMPUGT CYPARK DANCO DAYA UNCH DAYANG DELEUM UNCH DESTINI DIALOG UNCH , DKSH DNEX DSONIC UNCH , EASTLND UNCH EATECH UNCH EDARAN EDEN UNCH EDGENTA , EFFICEN UNCH EIG EITA YEAR YEAR DAY DAY CODE COUNTER CLOSING +/ VOL VWAP* PE# DY MKT CAP HIGH LOW HIGH LOW (RM) (RM) ( 000) (RM) (X) (%) (MIL) ENGTEX FIAMMA FITTERS FREIGHT FRONTKN UNCH FSBM GASMSIA , GDEX , GENM , GENTING , GKENT , GUNUNG UNCH HAIO HANDAL HAPSENG , HARBOUR UNCH HARISON HUBLINE ICON UNCH IHH , ILB UNCH IPMUDA JCBNEXT JIANKUN KAMDAR UNCH KBES UNCH KFIMA KGB KNUSFOR KPJ , KPS KPSCB KTB UNCH KUB LFECORP LIONFIB UNCH LUXCHEM MAGNUM UNCH , MALAKOF , MARCO MAXIS , MAYBULK UNCH MBMR MBWORLD MEDIA UNCH , MEDIAC UNCH , MESB MFCB , MHB , MISC , MMCCORP , MMODE MTRONIC UNCH MUIIND MULPHA UNCH MYEG , NATWIDE NICORP OCB UNCH OCK UNCH OLDTOWN , OLYMPIA UNCH OWG PANSAR PANTECH UNCH PARKSON PBA PDZ UNCH PENERGY PERDANA , PERISAI PERMAJU PESTECH , PETDAG , PETONE PHARMA , PICORP PJBUMI UNCH POS , PRESBHD , PRKCORP PTRANS RANHILL RGB UNCH RPB SALCON SAMCHEM SANBUMI SCICOM SCOMI SCOMIES SEEHUP UNCH SEG UNCH SEM UNCH , SERBADK , SIME , SJC SKPETRO , SOLID UNCH STAR , SUIWAH SUMATEC UNCH SURIA SYSCORP UNCH T7GLOBAL TALIWRK , TASCO TENAGA , TEXCHEM THHEAVY TM , TMCLIFE UNCH , TNLOGIS TOCEAN TURBO UMS UMWOG UNCH , UNIMECH UNCH UTUSAN UZMA VOIR WARISAN WIDETEC WPRTS , XINHWA YFG UNCH YINSON , YONGTAI YTL UNCH ,693.2 FINANCE AEONCR , AFFIN , AFG , ALLIANZ , PA ALLIANZ-PA AMBANK , APEX BIMB UNCH , BURSA , CIMB , ECM ELKDESA UNCH HLBANK , HLCAP , HLFG , HWANG INSAS UNCH PA INSAS-PA UNCH JOHAN KENANGA LPI , MAA MANULFE MAYBANK , MBSB , MNRB MPHBCAP , P&O UNCH PBBANK , RCECAP RHBBANK , TA TAKAFUL UNCH , TUNEPRO UNCH * Volume Weighted Average Price # PE is calculated based on latest 12 months reported Earnings Per Share
28 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY Markets BURSA MALAYSIA MAIN MARKET. ACE MARKET 27 YEAR YEAR DAY DAY CODE COUNTER CLOSING +/ VOL VWAP* PE# DY MKT CAP HIGH LOW HIGH LOW (RM) (RM) ( 000) (RM) (X) (%) (MIL) PROPERTIES AMPROP A&M PA AMPROP-PA UNCH ASIAPAC BCB BERTAM UNCH BJASSET CHHB CRESNDO UNCH CVIEW DAIMAN UNCH DBHD E&O , ECOFIRS ECOWLD , ENCORP ENRA UNCH EUPE FARLIM GLOMAC UNCH GMUTUAL GOB GUOCO HOOVER UNCH HUAYANG IBHD UNCH IBRACO UNCH IGB , IOIPG , IVORY IWCITY , JKGLAND KBUNAI UNCH KEN KSL , L&G LBICAP LBS UNCH , LIENHOE UNCH MAGNA MAHSING UNCH , MALTON MATRIX , MCT , MEDAINC UNCH MENANG UNCH MJPERAK MKH , MKLAND UNCH MPCORP MRCB , MUH MUIPROP NAIM OIB OSK , PARAMON UNCH PASDEC UNCH PLENITU PTGTIN SAPRES SBCCORP UNCH SDRED UNCH SEAL UNCH SHL SMI SNTORIA SPB , SPSETIA UNCH , SUNSURIA UNCH , SUNWAY , SYMLIFE UNCH TAGB , TAHPS TALAMT UNCH TAMBUN TANCO THRIVEN UNCH TIGER TITIJYA UNCH TROP UNCH , UEMS , UOADEV , WINGTM UNCH Y&G YNHPROP YTLLAND MINING KUCHAI PLANTATIONS AASIA BKAWAN , BLDPLNT BPLANT , CEPAT CHINTEK DUTALND FAREAST UNCH , FGV , GENP , GLBHD GOPENG HARNLEN HSPLANT , IJMPLNT , INCKEN INNO IOICORP , KLK , KLUANG KMLOONG , KRETAM , KWANTAS MALPAC MHC NPC NSOP PINEPAC PLS RSAWIT RVIEW SBAGAN SHCHAN SOP , SWKPLNT UNCH TDM UNCH , THPLANT UNCH , TMAKMUR TSH , UMCCA UNCH , UTDPLT ,686.2 HOTELS GCE LANDMRK PMHLDG SHANG ,257.2 TECHNOLOGY AMTEL CENSOF CUSCAPI UNCH D&O UNCH DATAPRP DIGISTA UNCH ECS EFORCE ELSOFT UNCH GHLSYS GPACKET GRANFLO UNCH GTRONIC , HTPADU INARI , ITRONIC JCY UNCH , KESM KEYASIC UNCH MPI , MSNIAGA NOTION UNCH OMESTI PANPAGE UNCH PENTA THETA TRIVE * Volume Weighted Average Price # PE is calculated based on latest 12 months reported Earnings Per Share YEAR YEAR DAY DAY CODE COUNTER CLOSING +/ VOL VWAP* PE# DY MKT CAP HIGH LOW HIGH LOW (RM) (RM) ( 000) (RM) (X) (%) (MIL) UNISEM , VITROX WILLOW INFRASTRUCTURE PROJECT COMPANIES DIGI UNCH , LITRAK , PUNCAK SILKHLD TIMECOM , YTLPOWR UNCH ,051.6 CLOSED-END FUNDS ICAP UNCH EXCHANGE TRADED FUNDS EA ABFMY , EA CIMBA EA CIMBC EA FBMKLCI-EA EA METFAPA EA METFSID EA MYETFDJ EA MYETFID REITS AHP ALAQAR UNCH , ALSREIT AMFIRST ARREIT UNCH ATRIUM AXREIT UNCH , CMMT UNCH , HEKTAR IGBREIT , KIPREIT SS KLCC , MQREIT UNCH , PAVREIT UNCH , SUNREIT UNCH , TWRREIT UOAREIT UNCH YTLREIT ,028.2 SPAC CLIQ REACH SONA Ace Market YEAR YEAR DAY DAY CODE COUNTER CLOSING +/ VOL VWAP* PE# DY MKT CAP HIGH LOW HIGH LOW (RM) (RM) ( 000) (RM) (X) (%) (MIL) CONSUMER PRODUCTS BIOHLDG Unch KANGER SUNZEN XINGHE Unch INDUSTRIAL PRODUCTS ASIAPLY AT CAREPLS Unch CONNECT ESCERAM HHGROUP Unch HHHCORP Unch IJACOBS JAG Unch LNGRES Unch MQTECH OCNCASH PTB SANICHI Unch SCBUILD SCOMNET SCOPE Unch SERSOL TECFAST TECHNOLOGY ACCSOFT AEMULUS APPASIA ASDION BAHVEST DGB DGSB Unch EAH Unch EDUSPEC Unch FOCUS GENETEC GFM GNB GOCEAN Unch IDMENSN Unch IFCAMSC Unch INIX Unch IRIS Unch JFTECH JHM K KGROUP KRONO M3TECH MEXTER Unch MGRC MICROLN Unch MIKROMB MLAB MMAG Unch MMSV MNC Unch MPAY MTOUCHE Unch N2N Unch NETX Unch NEXGRAM Unch NOVAMSC OPCOM OPENSYS Unch ORION PALETTE Unch PRIVA PUC REXIT SCN SEDANIA SKH SMRT Unch SMTRACK SOLUTN SRIDGE Unch SYSTECH TDEX Unch VIS VIVOCOM VSOLAR Unch WINTONI YGL Unch YTLE TRADING SERVICES AIM ANCOMLB ASIABIO Unch BCMALL Unch BTECH FOCUSP HSSEB INNITY KTC MCLEAN MEGASUN Unch OVERSEA PASUKGB PINEAPP PLABS RA RAYA REDTONE REV SCC Unch SCH STERPRO TEXCYCL TFP XOX Unch FINANCE OSKVI Unch
29 28 Markets BURSA MALAYSIA EQUITY DERIVATIVES FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY Bursa Malaysia Equity Derivatives Main Market & Ace Market Warrants YEAR YEAR DAY DAY CODE WARRANTS CLOSE +/- VOL PARENT EXE PR M EXPIRY HIGH LOW HIGH LOW (RM) (RM) ( 000) PRICE PRICE (%) DATE C1 AAX-C /07/ C2 AAX-C Unch /05/ C3 AAX-C Unch /05/ C6 AAX-C /08/ CW AAX-CW Unch /04/ WA AAX-WA /06/ WA ACCSOFT-WA /01/ CH AEON-CH /09/ CU AFFIN-CU /06/ CV AFFIN-CV /07/ CW AFFIN-CW /07/ AIRASIAC Unch /04/ AIRASIAC /03/ AIRASIAC Unch /05/ AIRASIAC /05/ AIRASIAC /10/ AIRASIAC /07/ CP AIRPORT-CP /04/ WA AJIYA-WA /08/ CX AMBANK-CX /09/ WA ANZO-WA /11/ WB ANZO-WB /08/ WA APFT-WA /07/ WA APPASIA-WA /12/ ARMADA-C Unch /05/ ARMADA-C Unch /05/ ARMADA-C Unch /07/ ARMADA-C /11/ WA ASIABIO-WA /04/ WA ASIAPLY-WA /12/ C1 ASTRO-C /11/ WB ATTA-WB /05/ WA AT-WA Unch /01/ WB AT-WB Unch /10/ AXIATA-C /08/ AXIATA-C /10/ AXIATA-C /08/ WA AZRB-WA /05/ CR BAUTO-CR /12/ WA BHS-WA Unch /10/ WA BIMB-WA /12/ WA BINTAI-WA /06/ WA BIOHLDG-WA Unch /01/ C3 BJCORP-C Unch /08/ WB BJCORP-WB /04/ WC BJCORP-WC /05/ WA BKOON-WA /07/ WB BORNOIL-WB /02/ WC BORNOIL-WC Unch /11/ WB BRIGHT-WB /01/ WA BTM-WA Unch /12/ WB BTM-WB /10/ BURSA-C /11/ WA CAB-WA Unch /02/ WA CBIP-WA Unch /11/ WA CENSOF-WA /07/ WB CENSOF-WB /10/ CIMB-C /03/ CIMB-C /07/ CIMB-C /05/ CIMB-C /08/ WA CONNECT-WA Unch /09/ WB CONNECT-WB /06/ WA CSL-WA Unch ,677 18/09/ WA CUSCAPI-WA Unch /04/ WB DBE-WB Unch /01/ DIALOG-C Unch /07/ DIALOG-C Unch /05/ DIGI-C /04/ WB DIGISTA-WB Unch /04/ WD DNEX-WD /07/ WA DNONCE-WA Unch /11/ WA DOLPHIN-WA /03/ WA DOMINAN-WA /09/ WA DPS-WA Unch /01/ WB DPS-WB Unch /01/ DRBHCOMC /03/ DRBHCOMC Unch /08/ DRBHCOMC /08/ DRBHCOMC Unch /06/ DRBHCOMC Unch /08/ DRBHCOMC Unch /11/ DRBHCOMC /07/ DRBHCOMC /08/ CU DSONIC-CU /07/ CV DSONIC-CV /10/ C5 E&O-C /06/ WB E&O-WB /07/ WB EAH-WB Unch /02/ WC EAH-WC /06/ WC ECOFIRS-WC Unch /09/ WA ECOWLD-WA /03/ WA EDUSPEC-WA Unch /12/ WA EFORCE-WA /07/ WC EG-WC Unch /11/ WA EKA-WA Unch /01/ WB EKOVEST-WB /06/ WA ENGKAH-WA Unch /09/ WA ENGTEX-WA /10/ WA EWEIN-WA Unch /06/ WB FAJAR-WB /09/ WB FARMBES-WB /07/ A FBMKLCI-C1A ,715 1, /05/ D FBMKLCI-C1D ,715 1, /06/ M FBMKLCI-C1M ,715 1, /10/ A FBMKLCI-H2A ,715 1, /03/ B FBMKLCI-H2B ,715 1, /03/ C FBMKLCI-H2C ,715 1, /05/ E FBMKLCI-H2E ,715 1, /04/ F FBMKLCI-H2F ,715 1, /06/ O FBMKLCI-H2O ,715 1, /10/ S FBMKLCI-H2S ,715 1, /07/ T FBMKLCI-H2T ,715 1, /09/ FBMKLCI-H ,715 1, /03/ FBMKLCI-H ,715 1, /04/ WB FFHB-WB /03/ FGV-C /03/ FGV-C /04/ FGV-C Unch /03/ FGV-C Unch /05/ FGV-C Unch /03/ FGV-C /08/ FGV-C Unch /06/ FGV-C /07/ FGV-C /07/ WB FITTERS-WB /10/ WB GADANG-WB /11/ GAMUDA-C /09/ WE GAMUDA-WE /03/ WA GBGAQRS-WA /07/ GENM-C /03/ GENM-C /04/ WA GENP-WA /06/ GENTINGC /03/ GENTINGC Unch /07/ GENTINGC /06/ GENTINGC /08/ GENTINGC Unch /08/ WA GENTING-WA /12/2018 YEAR YEAR DAY DAY CODE WARRANTS CLOSE +/- VOL PARENT EXE PR M EXPIRY HIGH LOW HIGH LOW (RM) (RM) ( 000) PRICE PRICE (%) DATE WA GOB-WA Unch /12/ WA GOCEAN-WA Unch /08/ WA GPA-WA Unch /06/ WB GUNUNG-WB Unch /10/ WB HEVEA-WB /02/ WB HIAPTEK-WB /06/ WA HOHUP-WA /12/ WB HOVID-WB Unch /06/ HSI-C ,591 26, /03/ HSI-C ,592 24, /03/ HSI-C ,591 23, /03/ HSI-C ,592 25, /04/ HSI-C ,592 23, /04/ HSI-C ,592 24, /05/ HSI-C ,592 22, /05/ HSI-C ,592 24, /06/ HSI-C ,591 23, /06/ HSI-C ,591 24, /07/ HSI-C ,591 25, /08/ HSI-C ,592 23, /08/ HSI-H ,592 22, /03/ HSI-H ,592 24, /03/ HSI-H ,592 21, /04/ HSI-H ,592 23, /04/ HSI-H ,591 24, /04/ HSI-H ,592 20, /05/ HSI-H Unch ,592 22, /05/ HSI-H ,592 23, /05/ HSI-H ,592 21, /06/ HSI-H ,591 23, /06/ HSI-H ,592 21, /07/ WA HUBLINE-WA ,484 04/11/ WB HUBLINE-WB /12/ WD HWGB-WD /03/ WA IBHD-WA /10/ CP IGB-CP Unch /09/ C2 IHH-C /07/ C3 IHH-C /12/ C1 IJM-C /03/ CS INARI-CS /05/ CT INARI-CT /03/ CV INARI-CV /07/ CZ INARI-CZ /12/ WA INARI-WA /06/ WB INARI-WB /02/ WA INIX-WA Unch /11/ WB INSAS-WB /02/ WB IREKA-WB Unch /06/ WA IRETEX-WA /06/ WA IVORY-WA Unch /04/ WA JAG-WA /08/ CX JCY-CX Unch /03/ WA JIANKUN-WA /12/ WA JOHOTIN-WA Unch /11/ CL JTIASA-CL /06/ WC KBUNAI-WC Unch /10/ WA KERJAYA-WA /12/ WA KGB-WA /06/ WA KGROUP-WA /07/ WA KIMLUN-WA /03/ WA KNM-WA Unch /11/ WB KNM-WB /04/ WB KOMARK-WB /01/ WB KPJ-WB /01/ CG KSL-CG /06/ WA LAYHONG-WA Unch /10/ WA LBICAP-WA /04/ WA LBS-WA /06/ WB LBS-WB /10/ WB LEWEKO-WB /09/ CB LITRAK-CB /08/ WA LONBISC-WA /01/ WA LUSTER-WA Unch /06/ WA M3TECH-WA Unch /08/ WB MAGNA-WB /09/ C6 MAHSING-C Unch /07/ WB MAHSING-WB /03/ WC MAHSING-WC /02/ CR MALAKOF-CR Unch /07/ CS MALAKOF-CS /07/ CT MALAKOF-CT Unch /10/ CU MALAKOF-CU Unch /06/ CV MALAKOF-CV Unch /07/ WB MALTON-WB /06/ CW MAXIS-CW /09/ WA MAXWELL-WA ,520 24/03/ MAYBANKC /03/ MAYBANKC /06/ MAYBANKC /03/ MAYBANKC /08/ WA MBL-WA /11/ WA MBMR-WA Unch /06/ CW MBSB-CW /11/ WB MEDAINC-WB Unch /04/ WA MEGASUN-WA Unch /04/ WB MENANG-WB /07/ WA MEXTER-WA Unch /09/ WA MFCB-WA /04/ WB MFLOUR-WB /05/ C1 MHB-C /09/ WA MHC-WA /07/ WC MINHO-WC /08/ C8 MISC-C /05/ WD MITRA-WD /08/ CC MKH-CC /10/ WB MKH-WB /12/ WA MLGLOBAL-WA /10/ C4 MMCCORP-C /07/ C5 MMCCORP-C /08/ CD MPI-CD Unch /06/ CE MPI-CE /07/ WA MQTECH-WA Unch /11/ MRCB-C /08/ C7 MRCB-C Unch /03/ WA MRCB-WA Unch /09/ WB MTOUCHE-WB /03/ C1 MYEG-C /06/ MYEG-C /08/ MYEG-C /07/ MYEG-C /09/ C2 MYEG-C /04/ C3 MYEG-C /04/ C4 MYEG-C /07/ C7 MYEG-C /08/ C8 MYEG-C /10/ C9 MYEG-C /08/ CZ MYEG-CZ /03/ WA NEXGRAM-WA /05/ WA NICE-WA Unch /08/ WB NOTION-WB Unch /05/ WA OCK-WA Unch /12/ WC OCR-WC /07/ WC OSK-WC /07/ CF PADINI-CF /06/ CH PADINI-CH /03/ WA PANTECH-WA Unch /12/ WB PANTECH-WB Unch /12/ WA PAOS-WA Unch /12/ PBBANK-C Unch /07/ PBBANK-C /08/ PCHEM-C /08/ C9 PCHEM-C /09/ WA PERWAJA-WA ,350 28/02/ WC PESONA-WC /01/2020
30 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY Markets BURSA MALAYSIA EQUITY DERIVATIVES 29 China Stocks fall as rally loses steam, concerns on liquidity SHANGHAI: China stock fell yesterday, buyers retreating on speculation of a possible US interest rate hike later this month and concerns liquidity could tighten as Beijing s steps up its fight against leverage. The blue-chip CSI 300 Index fell 0.67% or points to 3,435.1, while the Shanghai Composite Index lost 0.52% or points to 3, CSI 300 has climbed around 20% over the past year on signs of economic recovery, supported by Beijing s fiscal stimulus and efforts to shut down zombie companies. But the rally has tapered off in over the last few months, suggesting further gains could be limited. The recent rangebound trading pattern reflects surging market divergence over the market s direction, said a strategist. If the US raises rates again this month, it could trigger fresh capital outflows and hurt domestic liquidity, which is already under pressure from Beijing s deleveraging campaign, Yang said. Indeed, Guo Shuqing, China s newlyappointed banking regulator said yesterday that risk prevention in the sector will be a more prominent policy focus in 2017, signalling tougher crackdown in areas such as shadow banking. Most sectors fell, led by infrastructure and real estate stocks, after a poll showed China s house price growth will slow signifi cantly on continuing government curbs and tighter credit conditions this year. Shares in S F Holding, an industryleading express delivery company founded by billionaire entrepreneur Wang Wei, snapped its seven-session winning streak to end 3% lower, while Leshi Internet Information slid 4.2% to close at a near 1½-year low. Meanwhile, Hong Kong stocks, which joined a regional rally in the morning, erased earlier gains and ended yestersday lower, as some investors took advantage of the morning rebound to dump shares. The change of direction in the afternoon was partly triggered by bearish sentiment on the mainland, where investors were worried about liquidity on speculation of a possible US interest rate hike this month. The Hang Seng Index ended the session down 0.2% or48.42 points at 23,728.07, while the China Enterprises Index lost 0.4% or points to 10, Stocks were initially firm as Wall Street powered to record highs as investors cheered US President Donald Trumps measured tone in his first speech to Congress. But falls in sectors including property and telecom dragged the indices lower, reflecting how fragile investor confi dence is, after a roughly 8% gain so far this year. US Dow pierces 21,000 mark after Trump speech, rate-hike chatter NEWYORK: The Dow Jones Industrial Average on Wednesday blasted through the 21,000 mark for the fi rst time after US President Donald Trump s measured tone in his fi rst speech to Congress lifted optimism and investors viewed a looming interest rate hike as a glass half full. The three main stock indices surged more than 1.3% to close at record highs. Trump on Tuesday said he wanted to boost the US economy with a massive tax relief and make a US$1 trillion push on infrastructure, bets that have helped Wall Street scale fresh records since the election. But it was a break in Trump s oftenabrasive speaking style that encouraged many investors who have worried he may struggle to push his agenda through a Congress reluctant to widen the government s budget defi cit. People were concerned Trump was maybe running off the rails. After the speech last night everybody walked away with a good feeling, said Stephen Massocca, Senior Vice President at Wedbush Securities in San Francisco. Some of the things he said, the algebra doesn t work but people know the direction it s going to go. The S&P Financial Index soared 2.84%, outperforming the other 10 major sectors, also helped by key US Federal Reserve (Fed) officials who hinted at an interest rate hike this month. A March rate hike would be sooner than many investors expected and make it more expensive to borrow money to buy stocks but it would also signal policymakers growing confidence in economic expansion after nearly a decade of tepid growth. Adding to expectations of stronger economic growth, the Institute for Supply Management said its manufacturing index rose in February to its highest since The perceived chances of a March rate hike also rose after the US Commerce Department reported that January inflation ticked up by the most in four years. Traders have now priced in a nearly 70% chance of a rate hike when the Fed s policy-setting body meets on March 14 to 15, according to Thomson Reuters data. The Dow jumped 1.46% to end at 21, points, the S&P 500 rallied 1.37% to 2, and the Nasdaq Composite climbed 1.35% to 5, Seven of the 11 major S&P sectors gained more than 1%, including energy, up 2.05%. About 8.1 billion shares changed hands on US exchanges, the most in 2017 and well above the 6.9 billion daily average for the past 20 trading days, according to Thomson Reuters data. Advancing issues outnumbered declining ones on the New York Stock Exchange by a 2.08-to-one ratio; on Nasdaq, a 3.05-toone ratio favoured advancers. Reuters Shanghai Composite , (-0.52%) Index points Hang Seng , Index points Dow Jones Index points Euro STOXX 50 Index , , (+2.13%) Index points , Mar 1, 2010 Mar 2, , (-0.20%) Mar 1, 2010 Mar 2, , , (+1.46%) Mar 1, 2010 Mar 1, Mar 1, 2010 Mar 1, 2017 Bursa Malaysia Equity Derivatives Main Market & Ace Market Warrants YEAR YEAR DAY DAY CODE WARRANTS CLOSE +/- VOL PARENT EXE PR M EXPIRY HIGH LOW HIGH LOW (RM) (RM) ( 000) PRICE PRICE (%) DATE CR PETDAG-CR /06/ CB PETRONM-CB /07/ WC PMETAL-WC /08/ WB POHUAT-WB Unch /10/ C2 POS-C /03/ C3 POS-C /08/ C4 POS-C /04/ WA PRG-WA /07/ WA PRLEXUS-WA /06/ WA PSIPTEK-WA Unch /11/ WA PUC-WA /12/ WB PUC-WB /02/ WB PUNCAK-WB /07/ WA PWF-WA /07/ WB RALCO-WB /12/ WA RAPID-WA /04/ WA REACH-WA /08/ CV RHBBANK-CV /04/ CW RHBBANK-CW /05/ WA RSENA-WA /12/ WB SANICHI-WB /03/ WC SANICHI-WC Unch /09/ WD SANICHI-WD ,358 21/07/ WB SCBUILD-WB Unch /11/ WA SCH-WA /12/ WA SCOPE-WA /07/ WA SEACERA-WA /05/ WB SEACERA-WB /05/ CF SEM-CF /11/ WA SERSOL-WA /04/ WA SIGN-WA /04/ SIME-C /08/ SIME-C /12/ C8 SIME-C /07/ SKPETROC /05/ SKPETROC /06/ SKPETROC /05/ SKPETROC /07/ SKPETROC /11/ SKPETROC /07/ WA SKPRES-WA /06/ WA SMRT-WA Unch /08/ WA SNTORIA-WA /04/ WA SOLID-WA /12/ WA SOLUTN-WA Unch /07/ CW SPSETIA-CW /12/ WA SRIDGE-WA /02/ WA STONE-WA /06/ WA SUMATEC-WA /03/ WB SUMATEC-WB Unch /11/ CF SUNCON-CF /05/ CH SUNCON-CH /08/ WA SUNZEN-WA /04/ WB SUNZEN-WB /02/ SUPERMX-C Unch /04/2017 YEAR YEAR DAY DAY CODE WARRANTS CLOSE +/- VOL PARENT EXE PR M EXPIRY HIGH LOW HIGH LOW (RM) (RM) ( 000) PRICE PRICE (%) DATE SUPERMX-C /07/ WB SYF-WB /11/ WB SYMLIFE-WB /11/ CD TAGB-CD /10/ CB TAKAFUL-CB Unch /08/ WB TALIWRK-WB /11/ WA TAMBUN-WA /05/ WA TDEX-WA Unch /09/ TENAGA-C /11/ TENAGA-C /11/ WA TEOSENG-WA /01/ WA TGUAN-WA Unch /10/ WB THRIVEN-WB /10/ WB TIGER-WB /12/ WC TIGER-WC /02/ TM-C /09/ CC TMCLIFE-CC /10/ WB TMCLIFE-WB Unch /06/ WC TNLOGIS-WC /12/ WA TOMYPAK-WA /06/ C8 TOPGLOV-C Unch /03/ WA TOYOINK-WA /04/ WA TROP-WA /12/ WB TSRCAP-WB /12/ CK TUNEPRO-CK Unch /09/ CL TUNEPRO-CL Unch /07/ UEMS-C /06/ UEMS-C /07/ UEMS-C /07/ UEMS-C /10/ CX UMW-CX /03/ CY UMW-CY /05/ CZ UMW-CZ /08/ UMWOG-C Unch /05/ UMWOG-C Unch /08/ UMWOG-C Unch /08/ WA UNIMECH-WA /09/ CR UNISEM-CR Unch /05/ WB VIVOCOM-WB /09/ WC VIVOCOM-WC /01/ WB VIZIONE-WB /06/ WC VIZIONE-WC /02/ CJ VS-CJ /07/ CL VS-CL /08/ WA VSOLAR-WA /12/ WA VS-WA /01/ WD WCT-WD /12/ WE WCT-WE Unch /08/ WA WINTONI-WA /02/ WA WZSATU-WA Unch /10/ WC XDL-WC Unch /07/ WA XINGHE-WA Unch /03/ WA XINQUAN-WA Unch ,089 24/06/ WB XINQUAN-WB /03/ WA XOX-WA /02/ WB YKGI-WB /05/ WB YTLPOWR-WB /06/ WA ZELAN-WA /01/2019 Please refer to the bursa malaysia website for the prices of Loan stocks, bonds and overseas structure warrants
31 30 Markets INSIDER MOVES. TRADING THEMES. EVENTS. FOREX FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY Insider moves (Filings on Mar 1, 2017) Insider Moves show what substantial shareholders are doing with their stakes, which could be a signal of their views on the company s outlook. COMPANY SHARES ACQUIRED DIRECTOR/SUBSTANTIAL SHARES HELD TRANSACTION (DISPOSED) SHAREHOLDER AFTER CHANGE DATE AL- AQAR HEALTHCARE REIT 2,300,000 KUMPULAN WANG PERSARAAN 78,981,000 23/2 (DIPERBADANKAN) AMMB HOLDINGS (2,075,000) EMPLOYEES PROVIDENT FUND BOARD 401,479,937 24/2 AXIATA GROUP 9,200,000 EMPLOYEES PROVIDENT FUND BOARD 1,400,269, & 24/2 AXIS REAL ESTATE 6,000,000 KUMPULAN WANG PERSARAAN 60,355, & 21/2 INVESTMENT TRUST (DIPERBADANKAN) BUMI ARMADA 3,120,600 EMPLOYEES PROVIDENT FUND BOARD 298,591,595 24/2 DIALOG GROUP 9,684,900 KUMPULAN WANG PERSARAAN 362,716, (DIPERBADANKAN) & 27/2 DRB-HICOM (1,324,000) EMPLOYEES PROVIDENT FUND BOARD 97,013, & 21/2 GAMUDA (1,512,500) KUMPULAN WANG PERSARAAN 147,452, (DIPERBADANKAN) & 27/2 GHL SYSTEMS 1,749,000 KUMPULAN WANG PERSARAAN 30,875, /2 (DIPERBADANKAN) HAP SENG PLANTATIONS 1,167,900 EMPLOYEES PROVIDENT FUND BOARD 67,607,000 24/2 HOLDINGS IGB REAL ESTATE 1,244,000 KUMPULAN WANG PERSARAAN 267,822,700 27/2 INVESTMENT TRUST (DIPERBADANKAN) IHH HEALTHCARE 3,623,900 EMPLOYEES PROVIDENT FUND BOARD 835,799,027 24/2 IJM CORPORATION 3,000,000 AMANAHRAYA TRUSTEES 238,000,000 28/2 - SKIM AMANAH SAHAM BUMIPUTERA IJM CORPORATION 2,000,000 EMPLOYEES PROVIDENT FUND BOARD 521,328,258 24/2 IOI CORPORATION 5,018,300 EMPLOYEES PROVIDENT FUND BOARD 441,297,873 24/2 JAKS RESOURCES 2,000,000 ANG LAM POAH 40,147,902 28/2 & 1/3 KUALA LUMPUR KEPONG 2,630,400 EMPLOYEES PROVIDENT FUND BOARD 152,403,988 24/2 LAFARGE MALAYSIA (1,100,000) EMPLOYEES PROVIDENT FUND BOARD 83,904, & 23/2 MALAYAN BANKING (4,917,300) EMPLOYEES PROVIDENT FUND BOARD 1,476,336,022 24/2 MALAYAN BANKING (1,000,000) AMANAHRAYA TRUSTEES 3,616,819,108 28/2 - SKIM AMANAH SAHAM BUMIPUTERA MALAYSIA AIRPORTS 1,300,000 EMPLOYEES PROVIDENT FUND BOARD 201,105,406 24/2 HOLDINGS MAXIS 1,198,200 EMPLOYEES PROVIDENT FUND BOARD 702,685,859 24/2 MEDIA PRIMA (1,000,000) EMPLOYEES PROVIDENT FUND BOARD 144,143,138 22/2 MQ TECHNOLOGY 4,000,000 TEH ENG HUAT 34,960,000 24/2 PETRONAS GAS 1,003,400 EMPLOYEES PROVIDENT FUND BOARD 202,262,132 24/2 PUBLIC BANK 1,998,900 EMPLOYEES PROVIDENT FUND BOARD 517,538,000 24/2 S P SETIA 2,135,500 KUMPULAN WANG PERSARAAN 292,294, & 24/2 (DIPERBADANKAN) S P SETIA 1,690,200 EMPLOYEES PROVIDENT FUND BOARD 167,674,820 24/2 SAPURAKENCANA PETROLEUM (4,313,200) EMPLOYEES PROVIDENT FUND BOARD 716,654,994 24/2 SAPURAKENCANA PETROLEUM 9,121,200 KUMPULAN WANG PERSARAAN 359,821,724 22, 24 (DIPERBADANKAN) & 27/2 TADMAX RESOURCES (15,000,000) DATO FAIZAL ABDULLAH 58,700,000 22/2 TELEKOM MALAYSIA (4,207,000) EMPLOYEES PROVIDENT FUND BOARD 602,709,274 24/2 WCT HOLDINGS 2,076,700 EMPLOYEES PROVIDENT FUND BOARD 97,694,550 24/2 While every effort is made to ensure accuracy, the information presented is not an exhaustive list and is not an official record of shareholder filings. Direct and indirect share are combined due to space constraints. Readers who are interested should check the official filings filed with Bursa Malaysia. Note: * denotes Ace Market Trading themes China s ultra-rich lawmakers China s annual two sessions or lianghui : National People s Congress (NPC) and Chinese People s Political Consultative Conference (CPPCC), will take place in Beijing this month. According to this year s data tracked by the Hurun Report, 209 among the current 5,219 delegates are worth two billion yuan or more. Local events to watch out for today The Malaysian Annual Real Estate Convention 2017 entitled Transforming your real estate business in a changing era at Setia City Convention Centre, Jalan Setia Dagang AG U13/AG, Setia Alam Seksyen U13, Shah Alam at 9am. Asli Corp Malaysia roundtable about Climate Change and the Paris Agreement The Trump Administration at The Royal Lake Club, Perdana Room 1 & 2, Level 2, Jalan Cenderamulia, Tasik Perdana, Kuala Lumpur from 9.45am to noon. Bintai Kinden Corp Bhd s extraordinary general meeting at its registered office, No 430, Jalan Sultan Azlan Shah, Jalan Ipoh, Kuala Lumpur at 10am. Cycle & Carriage Bintang Bhd launches the 12th Mercedez-Benz outlet in Malaysia at Cycle & Carriage Bintang Cheras Autohaus, No 190, Jalan Lanchang, Batu 5, Jalan Cheras, Kuala Lumpur from 10am to 1pm. Recording Industry Association of Malaysia s Foreign exchange rates (RIM) announcement of the return of RIM Charts, making a comeback after more than a decade of absence since 2006, at RIM, L-8-2, 8th Floor, Block L, No 2, Solaris Mont Kiara, Kuala Lumpur from 3pm to 4pm. DR Group Holdings Sdn Bhd, a dutyfree mall developer and operator in collaboration with Tioman Development Authority announces the development of its second gateway building in Pantai Tekek, Tioman Island with an estimated gross retail development area of 40,350 sq ft. Press conference at DR Group Holdings, Level 1, No 2 Jalan Teknologi 3/5, Taman Sains Selangor, Kota Damansara,Selangor from 2.45pm to 3.45pm. Penang Institute s Global Human Rights in the era of President Trump forum featuring Navi Pillay at APW, Jalan Riong, Bangsar, Kuala Lumpur from 8pm to 10.30pm. Stocks closest to year high STOCK HIGH LOW CLOSE VOLUME (RM) (RM) (RM) ('000) TECFAST CONNECT MAYBANK MPI HTPADU COCOLND EKOVEST EKOVEST-WB MFCB DNEX-WD CENSOF-WB CONNECT-WB TAWIN T7GLOBAL DIGI MAYBANKC This table shows stocks that are trading near their year high. This could suggest a build-up in buying momentum, or the possibility that profit-taking activities could set in later. Stocks closest to year low STOCK HIGH LOW CLOSE VOLUME (RM) (RM) (RM) ('000) HSI-H FBMKLCI-H2E SUPERMX-C HSI-H HSI-H HSI-H HSI-H HSI-H HSI-C MBSB-CW SUPERMX-C FBMKLCI-H2B MKH-CC CHINA50-CP BAUTO-CR MRCB-C This table shows stocks that are trading near their year low. This could suggest a build-up in selling momentum, or the possibility that bargain hunting could set in later. NZ EURO US SWISS BRIT CANADA BRUNEI S PORE AUST M SIA CHINA BANGL H DENM K UAE INA INDIA JAPAN NORWAY PHIL QATAR SAUDI SWEDEN THAI HK NZ $ , EURO , US $ , SWISS FR , STERLING , CANADA $ , BRUNEI $ , SINGAPORE $ , AUSTRALIA $ , MALAYSIA RM , CHINESE RMB , , , BANGLAD H TAKA , DANISH KRONER , , , UAE DIRHAM , ,779 1,816 3, , INA RUPIAH INDIA RUPEE , JAPAN YEN , NORWEGIAN KRONER , , PHILIPPINE PESO , QATAR RIYAL , ,887 1,832 3, , SAUDI RIYAL , ,203 1,779 3, , SWEDISH KRONOR , , THAI BAHT , HK$ , , , Note: Run your finger down the left-hand side until you reach the country of origin you plan to exchange. Then move your finger until that line intersects with the vertical column of the currency you wish to buy. The figure is how much you will get. The above rates are subject to change and provided by Thompson Reuters.
32 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY Markets FUTURES. MONEY MARKET. COMMODITIES 31 Index futures Money market FKLI Index points Open Interest 1, (+13.00) Long Rolls - KLCI futures Index points (-0.50) US Dollar USD Index (+0.160) Klibor Implied interest rate (%) (Unch) Jan 4, 2010 Mar 2, 2017 FBM KLCI futures contracts close higher 2000 The FBM KLCI futures contracts on Bursa Malaysia Derivatives closed higher yesterday in line with the underlying cash market. March 2017 ended 13 points better at 1,711.5; April 2017 gained 12.5 points to 1,711; June 2017 added 10 points to 1,707; and September 2017 was 8.5 points higher at 1,702. Turnover increased to 7,610 lots from 6,312 lots on Wednesday, while open interest improved to 34,787 contracts from 34,453 contracts, previously. The underlying benchmark FBM KLCI finished points better at 1, Most Southeast Asian stock markets rose yesterday, tracking Asian shares and Wall Street overnight, as investors took heart from US President Donald Trump s pledge to invest heavily in infrastructure, cut corporate taxes and ease regulations Jan 4, 2010 Mar 2, 2017 FBM KLCI futures INDEX AND FUTURES OPEN CHANGE IN CONTRACT LAST CHANGE VOLUME INTEREST OPEN INTEREST FBMKLCI 1, M MAR 17 1, ,194 33, APR 17 1, JUN 17 1, SEP 17 1, TOTAL 7,610 34, FUTURES ROLL OVER BID OFFER CLOSE MAR/APR FUTURES FAIR VALUE CONTRACT DAYS TO EXPIRY KLIBOR DIVIDEND FAIR VALUE MAR APR ROLL S FAIR 3.04 Philippine shares closed 0.9% higher, with financials and industrials leading the gains, while Indonesia rose as much as 0.8%. Agencies 71.0 Oct 2, 2006 Mar 2, 2017 US dollar hits two-week high versus yen, muted elsewhere Further signs that Federal Reserve (Fed) policymakers are swinging behind a March rise in US interest rates kept the US dollar rising against the yen yesterday while it struggled to make more pace against a resilient euro. That fuelled an almost 0.5% rise to a twoweek high of and put the US dollar in positive territory for a third day running against the euro and its fifth against the pound. Yet the scale of the gains, given the huge swing in expectations for a Fed hike from 30% at the start of the week to roughly 70% yesterday was still relatively modest: The US dollar Index has gained just under 0.7% in that time. The US dollar index, which measures the greenback against a basket of six major currencies, was less than 0.16% higher on the day yesterday at , down off a peak of 102 reached in Asian trading. Reuters 1.5 Oct 1, 2000 Klibor Mar 2, 2017 MONTH SETTLEMENT CHANGE VOLUME OPEN PRICE INTEREST MAR APR MAY JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC MAR JUN SEP DEC TOTAL 0 0 Commodities CPO prices react to various factors including soyoil prices, weather conditions and stockpiles. Open interest shows either increasing or decreasing market participation. CPO & Open Interest CPO vs Soyoil Crude Oil Gold CPO RM/tonne Open Interest CPO RM/tonne Soyoil US$/Ibs (RM3,397/tonne) US$/bbl (-0.49) US$/troy oz ,861 (+30) Jan 6, 2008 Mar 2, 2017 Palm oil futures prices end near two-week high Malaysian palm oil futures recorded a third consecutive day of gains yesterday, reaching a near two-week high as a technical rebound saw the spread with soyoil widen. Benchmark palm oil futures for May on the Bursa Malaysia Derivatives were up 1.1% or RM30 to RM2,861 a tonne. There s a widening spread between both products, said a trader, referring to the price differential between palm oil and soyoil. Another trader said the market also gained on a technical rebound ahead of an industry conference in Kuala Lumpur next week. Industry players expect leading analysts to provide bearish price forecasts at the conference. Soyoil, used as a feedstock in biodiesel production, surged over 6% on Tuesday on the Chicago Board of Trade (CBOT) on reports the US president was preparing an executive order on biofuels, even though the claims were later denied. Palm oil prices are seen weakening between now and the second half of the year, as production levels are expected to recover when the effects of a crop damaging El Nino wear off. Palm oil may rise to a resistance at RM2,880 per tonne as it has broken above a resistance at RM2,820, said a market analyst. In related vegetable oils, soyoil on the CBOT fell 1.1%, while the May soyoil contract on the Dalian Commodity Exchange rose 0.5%. Reuters Jan 6, 2008 Mar 2, 2017 CPO futures OPEN CHANGE IN CONTRACT LAST CHANGE VOLUME INTEREST OPEN INTEREST MAR-17 2, , APR-17 2, ,802 19, MAY-17 2, ,924 66,651 1,475 JUN-17 2, ,314 31, JUL-17 2, ,353 35,075-1,031 CPO FUTURES INDICATIVE ROLL-OVER CPO/SOYOIL FUTURES BASIS (USD) MAR/APR 74 CURRENT MAR/MAY MONTHS AVERAGE MAR/JUN MONTHS AVERAGE APR/MAY 44 SGS & ITS EXPORT ESTIMATES (TONNES) SHIPMENT DAYS DEC 16 JAN 17 FEB TH DAYS 1-15TH DAYS 1-20TH DAYS 1-25TH DAYS FULL MONTH 306/ / / /845 1,110/1, / / / /924 1,157/1, / / / /907 1,018/1,008 MALAYSIAN PALM OIL BOARD SEP 16 OCT 16 NOV 16 DEC 16 PRODUCTION EXPORT STOCKS MPOB Palm oil physical ,861 (+30) ,715 1,678 1,575 1,474 1,451 1,431 1,370 1,268 1,547 1,574 1,656 1,665 (IN RM/TON) MAR 17 APR 17 MAY 17 CPO DELD 2,950 NO TRADE NO TRADE PK EX-MILL 2,600 NO TRADE NO TRADE CPKO DELD 5,305 5,245 NO TRADE RBD P.OIL FOB NO TRADE NO TRADE NO TRADE RBD P.OLEIN FOB NO TRADE NO TRADE NO TRADE RBD P. STEARIN FOB NO TRADE NO TRADE NO TRADE MPOB FFB REF PRICE (MILL GATE PRICE) REGION GRADE A GRADE B GRADE C OER (RM/TON) OER (RM/TON) OER (RM/TON) NORTH 20.00% % % 599 SOUTH 20.00% % % 612 CENTRAL 20.00% % % 606 EAST COAST 20.00% % % 606 SABAH 22.00% % % 592 SARAWAK 22.00% % % Apr 10, 2007 Mar 2, 2017 Oil down on record US crude stocks, flat Russian output Oil prices fell yesterday after US crude stocks hit an all-time high and official data showed Russian oil production unchanged in February, with no further cuts to tighten the market and drain global oversupply. Brent crude oil was down 50 US cents a barrel at US$55.86, while US crude oil was 49 US cents lower at US$ Crude inventories in US rose by 1.5 million barrels last week to a record million barrels, while Russia s oil output was unchanged in February from January at million barrels per day, signalling a pause in Moscow s efforts to curb production as part of a global deal, energy ministry data showed yesterday. The Opec cut its oil output for a second month in February, a Reuters survey found, showing the exporter group has boosted already strong compliance to around 94%. Reuters Centrifuged Latex Sen/Kg Jan 7, (+3.50) Mar 2, Aug 31, 2008 Mar 2, 2017 Commodities AGRICULTURE UNIT EXCHANGE LAST PRICE CHANGE CRUDE PALM OIL RM/TON MDEX 2, RUBBER SEN/KG MRB CORN USC/BSH CBOT SOYBEANS USC/BSH CBOT 1, WHEAT USC/BSH CBOT LIVE CATTLE USC/IBS CME COCOA US$/TON NYBOT 1,892-5 COFFEE USC/IBS NYBOT SUGAR USC/IBS NYBOT COTTON USC/IBS NYC METAL & PRECIOUS METALS TIN US$/TON KLTM 19, COPPER USC/IBS CMX GOLD US$/TROY OZ CMX 1, PLATINUM US$/TROY OZ NYMEX 1, PALLADIUM US$/TROY OZ NYMEX SILVER USC/TROY OZ CMX ALUMINIUM RMB/TON SHF 14, ZINC RMB/TON SHF 23, ENERGY LIGHT CRUDE OIL US$/BBL NYMEX HEATING OIL USC/GAL NYMEX NATURAL GAS US$/MMBTU NYMEX BRENT CRUDE US$/BBL ICE GAS OIL US$/TON ICE Rubber - M sia SMR 20 Sen/Kg , (-6.80) (+22.00) 200 Jan 7, 2007 Mar 2, 2017
33 32 Markets YOUR DAILY FINANCIAL MARKETS ROUND-UP RESEARCH: TAI TS SUGUMARAN FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY FUTURES. MONEY MARKET. COMMODITIES PA G E 31 INSIDER MOVES. TRADING THEMES. EVENTS. FOREX PA G E 30 GLOBAL MARKETS PA G E 29 MAIN MARKET. ACE MARKET LISTING PA G E 25 KLCI 1, FBM ACE 5, FTSTI 3, NIKKEI 19, HANG SENG 23, DOW JONES 21, FBM KLCI & KLCI futures intraday Index point :45 9:30 Daily FBM KLCI KL Composite Index :30 FBM KLCI futures 11:30 CONTRACT SETTLEMENT CHANGE HIGH LOW MAR 17 1, , , APR 17 1, , , JUN 17 1, , , FBM KLCI sensitivity* KLCI futures KL Composite Index 12:45 1, (+17.98) 14:30 15:30 16:30 17:15 Moving average - 20-day 1, Jan 2, 2008 Mar 2, 2017 Volume ( mil) KLCI CHANGE CLOSE VOLUME POINTS (RM) (RM) ('000) PETRONAS CHEMICAL MAYBANK AXIATA GROUP CIMB GROUP AMMB HOLDINGS IOI CORPORATION MISC GENTING RHB BANK SIME DARBY GENTING MALAYSIA HONG LEONG BANK PPB GROUP HONG LEONG FINANCE TENAGA NASIONAL BERHAD IHH HEALTHCARE SUB-TOTAL OTHERS 1.63 GRAND TOTAL * How stock price changes affected the index on the previous trading day I want an edge! UNUSUAL MARKET ACTIVITIES STOCK VOLUME CHANGE CHANGE CLOSE HIGH LOW ('000) (%) (RM) (RM) (RM) (RM) KSL-CG 54, SKPETRO 37, TIGER 37, OCR-PA 28, INARI 27, CONNECT 25, MYEG-C2 21, ANZO-WA 18, TECFAST 16, GPACKET 14, TRIVE 14, AMBANK 13, KSL 12, ENGTEX-WA 11, CONNECT-PA 11, JTIASA-CL 10, Table above is from Reuters Volume break 3x 5-day average volume, meaning the total number of shares traded for a particular counter on the previous trading day is more than triple the average volume for the last 5 trading days. The table captures the build-up of interest in these companies and is thus a gauge of market expectations for these counters. FBM KLCI rises on Trump s infrastructure spending plan KUALA LUMPUR: The FBM KLCI soared points or 1.1% to 1, yesterday after US shares rose to a record high on US President Donald Trump s planned US$1 trillion infrastructure spending to support the US economy. The US Dow Jones Industrial Average rose overnight above 21,000 points for the first time on Trump s proposal. Malaysia s fund managers said Trump s proposed infrastructure spending would generate demand for raw materials and metals. This will drive demand for certain infrastructure spending, including raw materials and metals, Areca Capital Sdn Bhd chief executive officer Danny Wong told theedgemarkets.com. Malaysian shares climbed 1.1% to their highest close since April 22, 2016, led by financials. Malayan Banking Bhd rose 1.5%, while CIMB Group Holdings Bhd climbed 2.2% to its highest close since August Bank Negara Malaysia held its key interest rate at 3% as expected, on optimism that the economy is recovering after a year of tepid growth. Bursa Malaysia saw 3.13 billion shares traded with a total value of RM3.05 billion. There were 595 gainers, while 308 counters declined. Across Asia, Japan s Nikkei 225 index rose 0.88% to 19,564.8 points and South Korea s Kospi gained 0.53% to 2, points, while Hong Kong Hang Seng Index fell 0.2% to 23, points. by Samantha Ho World equity indices CLOSE CHANGE CLOSE CHANGE DOW JONES 21, INDONESIA 5, S&P 500 2, JAPAN 19, NASDAQ 100 5, KOREA 2, FTSE 100 7, PHILIPPINES 7, AUSTRALIA 5, SINGAPORE 3, CHINA 3, TAIWAN 9, HONG KONG 23, THAILAND 1, INDIA 28, VIETNAM hotline@bizedge.com Fax: (03) YES, I would like to order The Edge Financial Daily at RM1.60 per copy MY DETAILS 1, (+17.98) 1, (+13.00) Humility is attentive patience. Simone Weil Market movers Daily top 20 active stocks TURNOVER CHANGE CHANGE PRICE PE DIVIDEND ( 000) (RM) (%) (RM) RATIO YIELD (%) DNEX-WD 404, DNEX 135, HIBISCS 57,671.0 UNCH UNCH KSL-CG 54, CENSOF-WB 54, JAG 44,238.8 UNCH UNCH CENSOF 42, BORNOIL 41, MYEG 40, SKPETRO 37, TIGER 37, KNM 37,372.2 UNCH UNCH FRONTKN 34,434.4 UNCH UNCH BORNOIL-WC 33,663.6 UNCH UNCH VIVOCOM 31, EKOVEST 31, PTRANS 30, AT-WB 29,879.4 UNCH UNCH REACH-WA 28, OCR-PA 28, Top gainers and losers (ranked by RM) UP CLOSE CHANGE (RM) F&N AMBANK RVIEW JHM GTRONIC MAGNI MSM BURSA KAWAN HLFG PPB BAT Top gainers and losers (ranked by percentage) UP CHANGE CLOSE (%) IJM-C TIGER-WB RHBBANK-CW MHC-WA RHBBANK-CV KGROUP-WA PERWAJA-WA MAYBANKC KSL-CG AMBANK-CX UMW-CX AIRPORT-CP UP CHANGE CLOSE (%) IJM-C TIGER-WB RHBBANK-CW MHC-WA RHBBANK-CV KGROUP-WA PERWAJA-WA MAYBANKC KSL-CG AMBANK-CX UMW-CX AIRPORT-CP DOWN CHANGE CLOSE (RM) HEIM KLUANG SHANG APOLLO CARLSBG SUPERMX-C RALCO ADVPKG HSI-H SAB BAUTO-CR NNITY DOWN CHANGE CLOSE (%) FBMKLCI-H2A MALAKOF-CS SUPERMX-C MAXWELL-WA BAUTO-CR FBMKLCI-H2O WINTONI-WA FBMKLCI-H2B FBMKLCI-H2C FBMKLCI-H FBMKLCI-H HSI-C Top gainers and losers - warrants (ranked by percentage) DOWN CHANGE CLOSE (%) FBMKLCI-H2A MALAKOF-CS SUPERMX-C MAXWELL-WA BAUTO-CR FBMKLCI-H2O WINTONI-WA FBMKLCI-H2B FBMKLCI-H2C FBMKLCI-H FBMKLCI-H HSI-C FOR OFFICE USE This part will be completed by The Edge Communications Sdn Bhd and will be faxed/ ed back to you. 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35 TEP 2 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY NEWS HIGHLIGHTS from TheEdgeProperty.com The Edge Property Malaysia Publisher and Group CEO Ho Kay Tat The Edge Property Sdn Bhd ( P) Level 3, Menara KLK, No 1 Jalan PJU 7/6, Mutiara Damansara, Petaling Jaya, Selangor, Malaysia TheEdgeProperty.com Managing Director/Editor-in-Chief Au Foong Yee EDITORIAL Editor Lam Jian Wyn Contributing Editor Sharon Kam Deputy Chief Copy Editor James Chong Senior Copy Editor Shanthi Murugiah Writers Rachel Chew, Tan Ai Leng, Natalie Khoo, Shawn Ng, Lum Ka Kay Art Director Sharon Khoh Design Team Nik Edra, Henry Lee For New Launches/Events/ Press Releases/News Tips propertyeditor@bizedge.com Tel: Fax: propertyeditor@bizedge.com ADVERTISING & MARKETING Head of Marketing and Sales Sharon Chew (012) Senior Account Managers Cecilia Too (012) Jayne Law (016) Account Managers Jayremy Sim (011) Jocelyn Poo (012) Marketing Support & Ad Traffic Madeline Tan (03) mkt.tep@bizedge.com mkt.tep@bizedge.com NEGOTIATOR ADVISORY SERVICE Senior Manager Elizabeth Lay Senior Associate Stannly Tan Associate Karen Wong For enquiries and listings propertysupport@bizedge.com GL: (03) / propertysupport@bizedge.com TheEdgeProperty.com pullout is published by The Edge Property Sdn Bhd. It is available with The Edge Financial Daily every Friday. The pullout is also distributed at more than 200 offices, shopping complexes, condos, medical centres, F&B outlets and LRT stations in the Klang Valley. You can also download it for free at The Edge Malaysia EDITORIAL Editor-in-Chief Azam Aris CORPORATE Chief Operating Officer Lim Shiew Yuin ADVERTISING & MARKETING Chief Commercial Officer Sharon Teh (012) General Manager Kingston Low (012) Senior Sales Managers Fong Lai Kuan (012) Gregory Thu (012) Kamalesan Parama (012) Michael Tan (012) Creative Marketing Chris Wong (016) Head of Marketing Support & Ad Traffic Lorraine Chan (03) advertising@bizedge.com Court rejects EOT by housing ministry in favour of LAD for Sri Istana Condo buyers The buyers of Sri Istana Condominium have been granted an Order of Certiorari to quash the Extension of Time (EOT) issued by the Urban Wellbeing, Housing and Local Government Ministry to the developer of the project on Jalan Kuchai Lama, Kuala Lumpur. The buyers who were represented by a legal team from the National House Buyers Association (HBA) can now claim liquidated ascertained damages (LAD) from the developer. The ministry had in its letter dated Nov 17, 2015 granted an EOT for vacant possession from 36 months to 48 months in respect to the Sale and Purchase Agreement between BHL Construction Sdn Bhd and buyers of Sri Istana. The project was to be delivered to the owners in May With the EOT, the owners could not claim LAD compensation from the developer. HBA had then taken up a class action on behalf of the buyers CLARIFICATION AND CORRECTION LAUNCHES + EVENTS Official launch of The Olive Date: March 4 (Sat) Time: 10am to 5pm Venue: Sunsuria Sales Gallery, Main Tower Sunsuria Avenue, Persiaran Mahogani, Kota Damansara, Selangor Contact: (03) Sunsuria City s first residential property, The Olive, will be officially launched this weekend. Developer Sunsuria Bhd invites all to witness an artfully designed enclave inspired by the Spanish Master of watercolours, Ceferí Olivé. Official launch of D Mayang Sari Date: March 5 (Sun) Time: 10am to 6pm Venue: Erora show Seri Pajam Home, PT9889, Jalan BBN 1/3 J, Nilai, Negeri Sembilan Contact: (06) I-Bhd to launch IoT-ready serviced residences in June I-Bhd plans to launch Internet of Things (IoT)-ready serviced residences in i-city, Shah Alam in June. Situated on top of the upcoming DoubleTree by Hilton, the residences have a total estimated gross development value (GDV) of RM124 million, said marketing director Monica Ong. The hotel will occupy the ground floor to level 23 of the tower while the serviced residences will start from level 24 to level 42. The serviced residences, which has a working name of i-city, will comprise 200 fully against the ministry and the Controller of Housing and the case was heard at the High Court (Appellant and Special Power Division) on Monday. HBA secretary general Chang Kim Loong said with the High Court decision, it means that the EOT issued by the Housing Controller is void and house buyers are entitled to claim for LAD from the developer who had sought the EOT. Market levelling out In the article entitled Residential market may pick up soon, says Kenanga in our publication dated Feb 24, 2017, we reported Kenanga Investment Bank head of equity research Sarah Lim as saying that the residential market may pick up soon. What Lim had actually said was that the market is bottoming and levelling out. Lim also added that she does not see any major catalyst for recovery yet. trending now Seri Pajam is launching new freehold double-storey houses at its gated-and-guarded development D Mayang Sari with fun-filled activities, such as DIY beads and charms sessions, bubble blowing and a royal afternoon tea. Nasa City Superwoman s Day Date: March 4 and 5 (Sat and Sun) Time: 10am to 5pm Venue: Nasa City Sales Gallery, No 1, Jalan Palma Puteri 4, Desa Palma, Johor Bahru, Johor Contact: (07) Organised by IJM Land, the two-day event offers free HPV vaccination, free ice cream, free massage, free manicure, health talk on women-related diseases, free health checks, makeover sessions, branded bag care and restoration, fashion corner, selfdefense tips, kids arts and crafts, blood donation and many more. furnished and IoT-ready units with built-ups ranging from 480 sq ft to 880 sq ft. Prices start from RM480,000 per unit. The serviced residences will be launched in June. The target buyers are young professionals who value brand association and those who are early tech adopters, said Ong, adding that the development is set to be completed in 2019 together with the hotel. With a GDV of RM250 million, the 300-room hotel is targeted to open in S P Setia to launch Trio in Bukit Tinggi, by mid-march S P Setia Bhd is looking to launch the first tower of serviced apartments at its integrated development Trio at Bukit Tinggi, Klang, by mid-march. For this upcoming launch, we How do I get past issues of this weekly pullout? Go to TheEdgeProperty.com to download for free If you have any real estate-related events, us at propertyeditor@bizedge.com. Events listed here will also appear on TheEdgeProperty.com. Setia Eco Templer Rumah Selangorku launch Date: March 4 (Sat) Time: 9:30am to 12pm Venue: Setia Eco Templer Sales Gallery. No 1, Jalan Ipoh- Rawang, KM-20, Taman Rekreasi Templer, Rawang, Selangor. Contact: (03) S P Setia will be launching Rumah Selangorku apartments at Setia Eco Templer offering some 900 units. The launch will be officiated by Selangor Menteri Besar Datuk Seri Mohamed Azmin Ali. Malaysian International Furniture Fair 2017 (MIFF 2017) Date: March 8 to 11 (Wed to Sat) Time: 9.30am to 6pm (March 8 to 10) / 9.30am to 5pm (March 11) Venue: Putra World Trade Centre, Jalan Tun Ismail, Chow Kit, KL and Matrade Exhibition and Convention Centre, Jalan Sultan Haji Ahmad Shah, KL Contact: (03) All types of furniture, accessories, fittings and hardware from over 500 furniture manufacturers and are only launching Tower A, which comprises 426 units in the 46-storey tower. We are targeting first-time homebuyers and young adults seeking integrated lifestyles near Bukit Tinggi, Banting and Klang, said S P Setia divisional general manager Paul Soh at the grand opening of the Trio sales gallery on Feb 25. Spanning over 5.49 acres, Trio comprises three towers of serviced apartments, 42 commercial units and a retail podium. It has a gross development value of RM571 million. The residential blocks will house a total of 914 units of serviced apartments with built-ups ranging from 656 sq ft to 1,216 sq ft. The units will be priced between RM412,000 and RM737,000. exporters will be at MIFF 2017 organised by UBM Malaysia. A non-stop free shuttle service between venues is available. Admission fee is RM20 per person. Free admission for students. Garden London s Malaysia launch Date: March 4 and 5 (Sat and Sun) Time: 11am to 6pm Venue: Topaz Room, Mandarin Oriental Hotel, Kuala Lumpur Contact: (03) / (03) Knight Frank and JLL Malaysia are showcasing Garden Bayswater, London to Malaysian buyers this weekend. It is said to be the only new development in London directly fronting the Central London square. The apartment has a selling price from 995,000 (RM5.44 million).
36 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY NEWS TEP 3 Eco Boulevard shopoffices at Eco Botanic being handed over BY SHAWN NG PICTURES BY ECO WORLD PETALING JAYA: Eco World Development Group Bhd (EcoWorld) has been handing over the shopoffices at Eco Boulevard, the business precinct of its Eco Botanic township in Johor, to owners since February. With a gross development value (GDV) of RM440 million, Eco Boulevard is made up of 200 shopoffices inspired by English colonial architecture. The built-ups for the 3-storey units start from 5,217 sq ft with prices from RM2.55 million. Some 90% of the shopoffice units have been sold, said divisional general manager Datuk Hoe Mei Ling. It is one of the first commercial shopoffices in Iskandar Puteri (formerly known as Nusajaya) that feature such innovative new design concepts, Hoe told TheEdge- Property.com. Eco Boulevard s architecture is a fusion of the classic and contemporary, thus allowing businesses there to provide a unique business environment and experience to their customers, she added. The completion of the business district will bring greater convenience not only to Eco Botanic residents but also those from the surrounding townships, industrial parks, as well as students and employees from EduCity, the fully integrated education hub in Iskandar Malaysia. Hoe said EcoWorld s leasing and property services team is providing match-making services, lease negotiation and agreement execution as well as landscape and common area maintenance to Eco Boulevard owners in order to help the business district grow and mature. The businesses that we are trying to pull into Eco Boulevard include F&B, banks, Hoe: Eco Boulevard s architecture is a fusion of the classic and contemporary. wellness, fashion apparel, clinic and pharmacy, offices and others, she added. Being the developer s maiden township, Eco Botanic was launched in 2013 with a total GDV of RM3.79 billion. Over 15% of the 270-acre freehold development have been reserved for greenery including indigenous trees and plants. Eco Botanic is accessible via the Johor Bahru Eastern Dispersal Link Expressway, Coastal Expressway and Second Link Expressway. It is also close to Senai International Airport, Johor Bahru city centre, Singapore, Legoland and EduCity. The first residential project of Eco Botanic dubbed The Verandah, comprising 624 cluster homes and semi-dees, were fully sold and delivered to buyers last September. The built-ups for the units range from 2,340 sq ft to 3,420 sq ft, while the selling prices Eco Boulevard is the business precinct of the Eco Botanic township in Johor. were from RM1.3 million to RM2.3 million. Meanwhile, the second residential project at Eco Botanic is known as The Chateau, which consists of 322 super-link houses and semi-dees with built-ups from 2,731 sq ft to 3,952 sq ft and prices from RM1.435 million to RM2.796 million. About 60% of the non-bumi units have been sold to date. Launched in 2013, Eco Botanic is the maiden township by EcoWorld with a total GDV of RM3.79 billion. Ecofirst mulls Rumah Selangorku project in phase 2 of Ampang Ukay BY TAN AI LENG KUALA LUMPUR: EcoFirst Consolidated Bhd is looking at developing a Rumah Selangorku project on its 87-acre Ampang Ukay development in Ulu Kelang, Selangor. We are considering allocating eight acres of our land for the Rumah Selangorku project. This could be phase 2 of Ampang Ukay. Tentatively, it could be a 30-storey residential tower offering over 1,000 units, Group CEO Datuk Tiong Kwing Hee told TheEdge- Property.com. Ampang Ukay carries an estimated gross development value (GDV) of RM5 billion and will be developed over 10 to 12 phases and take 10 to 12 years to complete. Its developer has dubbed it Little Hong Kong as it envisions a vibrant place that is active both day and night. Tiong said the company may launch the Rumah Selangorku project by the end of the year. With the current challenging market conditions, demand for affordable housing remains strong, hence he expects this development to attract buyers. Phase 1 called Liberty Ampang Ukay was previewed last December. It consists of three towers of 1,632 Small-office Home-of- fice (SoHo) units and 32 retail units. It has an estimated GDV of RM606.8 million. The built-up size for the SoHo units is 450 sq ft, with the minimum selling price from RM300,000 or an average of RM750 psf. Eco- First will keep and rent out the retail units. SUHAIMI YUSUF / TheEdgeProperty.com Tiong: The company may launch the Rumah Selangorku project by the end of the year. Surprisingly, we have received overwhelming response with 90% of Tower B and C as well as 30% of Tower A already taken up within two months, he said. Liberty Arc will be officially launched today (Friday, March 3) and the compa- ny expects Tower B and C to achieve 100% take-up within two months of the launch. He noted that its location, easy accessibility and pricing are the main factors that attract buyers. Located about 7km away from KLCC, Ampang Ukay is accessible via major highways such as the Middle Ring Road, Duta-Ulu Klang Expressway, Ampang-Kuala Lumpur Elevated Highway and the upcoming Sungai Besi-Ulu Klang Elevated Expressway. On phase 3 of Ampang Ukay, Tiong said there are plans for a retail mall which could complement the first two phases as well as bring vibrancy to the community, thus realising the company s vision in creating a Little Hong Kong in Malaysia. This piece of land, which comprises flat and hilly areas, has given us the advantage to build high-rise residential properties that could offer residents a great city view of Kuala Lumpur city centre. However, to turn it into Little Hong Kong, night life is an important element of the development, he noted. He explained that the proposed mall will be different from the traditional shopping mall and will mainly focus on F&B elements.
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39 TEP 6 NEWS FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY PICTURES BY SAM FONG / TheEdgeProperty.com (From left) Au, Tan, Rajoo, Toh, Beh and Eupe Corporation Bhd head of marketing and design Michelle Gan Eileen together with Koe. BY LUM KA KAY Although the overall transaction volume has fallen, Penang s housing market looks more resilient than other major markets such as Kuala Lumpur, Selangor and Johor, based on transaction volume, said TheEdgeProperty.com product and business development director Alvin Ong. The transaction volume in Penang for the period of 1H2015 to 1H2016 has dropped 25%. In comparison, Kuala Lumpur, Selangor and Johor s transaction volumes have dropped 35%, 36% and 29%, respectively. However, Penang s average transaction prices for residential properties overall have remained pretty flat compared with the other major states which have recorded increases of between 6% and 15%. One of the reasons could be because in the past decade or so, Penang s housing prices have seen the highest growth compared to the other states in Malaysia, he observed. Based on an analysis of data collated by TheEdgeProperty.com comparing 2005 with 2015 on average, the housing prices of Penang have gone up by 2.4 times compared to the national average of 2.14 times, Ong said during his presentation on the Penang housing market at the recent TheEdgeProperty.com networking and appreciation dinner for property developers in the northern region including Penang and Kedah. Ong also noted that there was an increase in overhang levels in Penang which has grown by about 109% over the period of 1H2015 to 1H2016. This is much higher than in Johor and Selangor where overhang levels have increased by 46% and 40%, respectively. The overhang was contributed primarily by the over RM500,000 segment which has almost tripled in the past one year, he said. Penang housing market resilient (From left) TheEdgeProperty.com contributing editor Sharon Kam, Au, Eastern and Oriental Bhd head of marketing and sales (Penang) Christina Lau with Wong. Ong: In terms of transaction volume, Bertam and Seberang Perai seem to be more resilient. Penang mainland Looking at the past housing transaction data on Penang mainland between 1Q2013 and 3Q2016, Ong said some areas on the mainland appeared to be more resilient than other areas. In terms of transaction volume, Bertam and Seberang Perai seem to be more resilient dropping only 9% in 3Q2016 from 1Q2013. In terms of growth in capital gains, Alma (11%), Butterworth (7%) and Bukit Mertajam (5%) have done pretty well compared to other areas on the mainland, he said. The demand for condominiums on the mainland has held up better than for landed homes, dropping only 5% in terms of transacted volume in 3Q2016 from 1Q2013. (Clockwise from top left) Nippon Paint (M) Sdn Bhd project coordinator Sally Chan and sales representative Bert Lim, Kobay Land Sdn Bhd project manager for property development group Tony Lim Chun Seang and general manager Kenny Koay Lee, Nippon Paint sales representative Chin Jean Hoe, TheEdgeProperty.com writer Lum Ka Kay, Berjaya Land Development Sdn Bhd assistant general manager Phuah Kylie and senior sales and marketing manager Eunice Tan, Belleview Sdn Bhd senior manager for marketing and leasing Michelle Chong with director Grace Ho. In comparison, landed homes have seen transactions drop 20% to 26% during the same period. Interestingly, the transacted volume for residential properties on the mainland priced above RM1 million saw an increase of 6% while the under RM1 million segment has dropped between 7% and 25%, according to Ong. On Penang Island The residential property trends are slightly different on Penang Island. [Over the 1Q2013 to 3Q2016 period], semi-detached houses appeared to have been more resilient than other property types in terms of transacted volume, pricing and overhang.
40 FRIDAY MARCH 3, 2017 THEEDGE FINANCIAL DAILY FEATURE TEP 7 Landlord or tenant, be wary of the cheats! (From left) Beh, Mah Sing Group Bhd senior chief operating officer Seth Lim, Toh and Koe. BY LUM KA KAY (From left) Aspen Vision City Sdn Bhd executive director Woo Kok Weng, Koe, S P Setia Bhd general manager for northern region Ng Han Seong, Nippon Paint (M) Sdn Bhd sales representative Lucius Adam, Rehda Penang committee member David Fong Chin Chong, immediate past president and national council member Datuk Jerry Chan f*ck Sing and committee member Datuk Chan Fock Seng. From charity scams to love deceptions, crooks have devised more gimmicks in cheating you out of your earnings. One of the latest on the list are rental scams, targeting those who are in a hurry to lease out their properties or are unfamiliar with renting procedures. A recent case was the expat scam, involving conmen who pose as overseas property owners, luring interested tenants and then asking them to send the deposit money online without any prior meet-up with the owner or agent, or prior viewing of the premises. In another case, fake property brokers trick prospective tenants into paying the one-month security deposit but go missing thereafter. Mapleland Properties Sdn Bhd real estate negotiator Jenice Goh says rental scams come in many guises, and if it is too good to be true, a double dose of vigilance should be employed. She offers a few safeguarding tips against rental scammers. It may mean more work but it is better than losing your hard-earned money to swindlers. 1. Meet up with tenant/landlord Demand-wise, Sungai Ara has done quite well where transaction volume has only decreased by 6%. In terms of capital growth, Gelugor has seen the highest price increase of 13% compared to the other areas on the island, he said. Gelugor was followed by Bayan Lepas and Ayer Itam, where the average transacted prices of residential properties have increased by 7% and 4%, respectively. Based on property types, condominium transactions have dropped only 10% in terms of transacted volume while price growth has remained flat over the period of 1Q2013 to 3Q2016 whereas overhang has increased by 172%. Networking dinner About 50 guests from the property development industry attended the dinner organised by TheEdgeProperty.com on Feb 24 held at Eastern & Oriental Hotel, Penang. Among them were Eco World Development Group Bhd (EcoWorld) chief operating officer Datuk S Rajoo, Eupe Corporation Bhd group managing director and chief executive officer Datuk Beh Huck Lee, Hunza Properties (From left) Tambun Indah Bhd executive director Teh Deng Wei and chief financial officer Steve Neo Sze Tsin with TheEdgeProperty. com head of marketing and sales Sharon Chew. Bhd executive director Lily Tan, Eastern & Oriental Bhd senior general manager for group marketing and sales Wayne Wong, IJM Land Bhd senior general manager for the northern region Datuk Toh Chin Leong who is also Penang Rehda chairman and S P Setia Bhd executive vice-president Datuk Koe Peng Kang as well as committee members of the Penang branch of the Real Estate and Housing Developers Association (Rehda). In her welcoming remarks, managing director and editor-in-chief of TheEdgeProperty.com Au Foong Yee noted that the real estate industry is undergoing a challenging period and although many predictions have been made, no one knows for sure when the property market will recover. We do not know what is going to happen in the future but one thing we are sure of is that people still regard real estate as a very exciting and impactful investment. The other reality is that people are getting more and more discerning. When they buy, they are expecting more. They also rely a lot more on data from credible sources, she noted. The Internet has become the preferred channel for seeking rental listings due to its convenience. However, this doesn t mean that prospective landlords and tenants can skip a face-to-face meeting with each other. Before you engage in any payment, you must see the person who is going to live in your property or whose house you are going to rent. How can you deal with a stranger when it comes to important matters like this? stresses Goh. 2. Sign your papers It is to protect both the landlord and tenant, says Goh. This is pertinent, especially in the event the tenant misuses the property for illegal activities. Without a proper rental agreement, the landlord will be the one taking the blame on the tenant s behalf, she cautions. 3. View the property This is to ensure the property is true to its description as advertised. We all know pictures can be deceiving, so why not apply the same prudence to property hunting as well? says Goh. Never pay anything without viewing the property, she warns. 4. Check landlord/tenant background It is important to conduct a background check on prospective tenants as well as landlords. Get to know each other for a bit, find out what his or her vocation is. If he or she is an expat, check if they re here on a legal working permit or visa, advises Goh. 5. Be aware of those who seek fully furnished homes Goh highlights a few cases where fully furnished bungalows were rented out but the landlords ended up having all the furniture in their units stolen. In these cases, the thieves were locals. They [the scammers] will insist on moving in upon the booking fee payment, and sometimes landlords let them, hence they take advantage of that. It is very rare for a local to rent a fully furnished bungalow, so you need to be more diligent when you come across such offers, says Goh. 6. Engage an agent (optional) One way to avoid being cheated is to engage a real estate negotiator or agent who is attached to a credible fi rm because they will do some of these checks for you, and would have fi ltered unqualifi ed or bad tenants for you already. This will save you a lot of hassle, notes Goh.
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