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Malaysia govt defends Maybank's buying spree
Reuters: [2008-05-14 15:20:00]
By Jalil Hamid
KUALA LUMPUR, May 14 (Reuters) - Malaysia's government on Wednesday rejected opposition criticism against a flurry of acquisitions by top lender Malayan Banking Bhd <MBBM.KL>, saying it was necessary to catch up with neighbouring Singapore.
Second Finance Minister Nor Mohamed Yakcop told parliament that Malaysian banks must grow and develop into regional banks to better compete with their peers in the region.
"This is a golden opportunity," he said. "It will bring long-term benefits."
Long criticised for being too slow to expand overseas, state-controlled Maybank suddenly sprang into action in March. It bought 15 percent of Vietnam's An Binh Bank for $135 million and a week later paid $2.7 billion for a controlling stake in Bank Internasional Indonesia (BII) <BNII.JK>.
This month, it bought 15 percent of Pakistan's MCB Bank <MCB.KA> for $680 million, which analysts said was a high price and that it might have to cut the proportion of profits it pays out as dividends and raise capital to restore its balance sheet.
Malaysia's emboldened opposition, which recently denied the ruling coalition a two-thirds parliamentary majority, had pressed Nor Mohamed on why Maybank was overpaying for the stake in BII and for investing in what it deemed as politically risky Pakistan.
Many opposition lawmakers were unmoved by Nor Mohamed's lengthy reply, prompting the minister to direct Maybank to hold a special briefing for the MPs.
Nor Mohamed said Maybank had the funds and the capacity to support its overseas investments.
"This is in line with the government's long-term plan to strengthen the country's financial sector and turn it into a regional financial hub especially in Islamic finance," he said.
"We need to compete with Singapore to develop regional banks."
The Government of Singapore Investment Corp (GIC) recently said it might invest in more banks in Europe and the United States if it gets the chance, adding to its stakes in beleaguered bank UBS and Citigroup.
GIC, one of the world's largest sovereign funds, invested about $11 billion in UBS <UBSN.VX> and Citigroup <C.N> after they wrote off billions of dollars in the wake of the credit crisis in the United States, while sister fund, Temasek Holdings [TEM.UL], injected $5 billion into Merrill Lynch <MER.N>.
The two Singapore funds have since seen the value of their investments shrink, with UBS shares falling about 35 percent since GIC first announced its plan to pump funds into the Swiss bank. (Editing by Ramthan Hussain) ((jalil.hamid@thomsonreuters.com; Reuters Messaging jalil.hamid.reuters.com@reuters.net; Kuala Lumpur newsroom areuters@gmail.com; +603 2333 8047)) ($1=3.217 Malaysian Ringgit) For Maybank Q3 results click on: [ID:nKLR4510]
Keywords: MAYBANK DEALS/
Benelux stocks - Factors to watch on May 14
Reuters: [2008-05-14 06:50:00]
AMSTERDAM/BRUSSELS, May 14 (Reuters) - The following Benelux stocks may be affected by newspaper reports and other factors on Wednesday:
ING <ING.AS>
Dutch financial services group reports first quarter results (0530 GMT)
For more, double click on <ING.AS>
CORPORATE EXPRESS <CXP.AS>
Dutch office goods supplier rejects a sweetened offer from U.S. rival Staples Inc <SPLS.O> as still sigificantly undervaluing the company but says it is willing to talk.
For more, double click on <CXP.AS>
DEXIA <DEXI.BR><DEXI.PA>
Belgian financial services group reports first-quarter results (0500 GMT) and also holds annual shareholders meeting (1230 GMT)
For more, double click on <DEXI.BR>
ARCELORMITTAL <ISPA.AS>
World's largest steelmaker reports first-quarter results (0500 GMT)
For more, double click on <ISPA.AS>
NYRSTAR <NYR.BR>
Belgium's Nyrstar, the world's largest zinc producer, gives first-quarter trading update (0530 GMT)
For more, double click on <NYR.BR>
BEKAERT <BEKB.BR>
Belgian steel wire and cord maker give first-quarter trading update (0545 GMT) and holds annual shareholder meeting (0830 GMT)
For more, double click on <BEKB.BR>
ION BEAM APPLICATIONS (IBA) <IBAB.BR>
Belgian cancer diagnosis and therapy company reports a 33.5 percent rise in first-quarter sales on Tuesday, driven by strong demand for its accelerators and proton therapy systems. Company holds annual shareholder meeting on Wednesday.
For more, double click on <IBAB.BR>
Shareholder meetings
LogicaCMG <LOG.AS>
Super de Boer <SDB.AS>
Ordina <ORDN.AS>
((Amsterdam and Brussels newsrooms; Tel. +31 20 504 5000; amsterdam.newsroom@news.reuters.com))
Keywords: MARKETS BENELUX STOCKS =2 AMSTERDAM/BRUSSELS
Malaysian Stocks - Market seen weak, palm oil in focus
Reuters: [2008-05-14 02:32:00]
(Adds item on TH Plantations at bottom)
KUALA LUMPUR, May 14 (Reuters) - Malaysian palm-oil stocks
are expected to rally on Wednesday in a largely lacklustre market
after crude oil prices hit another record high.
Palm oil, used as an alternative fuel to petroleum, is down
from its record peaks of March, but the commodity has climbed 11
percent in the past six weeks in tandem with soaring crude.
The plantation sector, which includes blue chips such as IOI
Corp <IOIB.KL>, Kuala Lumpur Kepong <KLKK.KL> and Sime Darby
<SIME.KL>, is up 8.5 percent over the same six weeks, though it
had a bad day on Tuesday after a dip in palm-oil prices.
One broker said the price of crude oil, now nearing $130 a
barrel, was so high that even die-hard plantation investors would
begin to have second thoughts.
"The die-hard fans out there know that these are not
sustainable prices," the dealer said.
The plantation sector is trading at about 15 times
current-year forecast earnings, compared with just over 13 for
the wider market.
On Tuesday, the benchmark Kuala Lumpur Composite Index
<.KLSE> lost 0.51 percent to 1,286,54 points. IOI Corp and Sime
Darby fell 2 percent and 1.1 percent, respectively.
Dealers said the wider market was expected to move sideways
or fall on Wednesday, though lender AMMB Holdings Bhd <AMMB.KL>
could also be in focus after it reported a dramatic turnaround in
its bottom line for the fourth quarter.
----------------------MARKET SNAPSHOT @ 2300 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 1403.04 -0.04% -0.540
USD/JPY <JPY=> 104.63 -0.05% -0.050
10-YR US TSY YLD <US10YT=RR> 3.9131 -- 0.000
SPOT GOLD <XAU=> 865.65 0.02% 0.150
US CRUDE <CLc1> 125.87 0.06% 0.070
DOW JONES <.DJI> 12832.18 -0.34% -44.13
ASIA ADRS <.BKAS> 163.79 0.40% 0.65
-------------------------------------------------------------
>US STOCKS-Oil, financials hit Dow; techs lift Nasdaq [.N]
>Oil hits record near $127 as Iran mulls output cut [O/R]
>FOREX-Dollar rallies broadly after retail sales data [USD/]
>TREASURIES-Prices fall on strong sales, dashed rate hopes [US/]
>Gold drops 2 pct on dollar rise, platinum tumbles [GOL/]
>SE Asian Stocks-Indonesia hits 7-week high, Vietnam falls [.SO]
>Malaysia buys 200,000T Thai rice, wants more [ID:nKLR285022]
>Malaysia March factory output misses forecast [ID:nKLR17262]
>Malaysia building sector to grow 5 pct in '08 [ID:nKLA007501]
>Malaysia's Proton unit signs MOU with Spyker [ID:nWNA0127]
>Malaysia ends protection for Proton -report [ID:nKLA007502]
>Malaysian palm oil falls on supply glut fears [ID:nKLR51913]
>Telekom Malaysia to invest $592 mln in Johor [ID:nKLA007500]
>Malaysia's Unisem says China plant survived quake [ID:nWNA0126]
>India's Ircon wins contract for $1.06 bln job [ID:nKLA007499]
>Wilmar says palm oil prices to stay firm [ID:nSGC001983]
LENDER AMMB HOLDINGS BOUNCES BACK INTO BLACK
- Malaysia's fifth-largest lender AMMB Holdings Bhd
<AMMB.KL>, bounced back into the black in the fourth quarter,
reporting a net profit of 217.5 million ringgit ($67.61 million)
compared with a loss of 551.6 million ringgit a year earlier.
The result, released on Tuesday night, came from a dramatic
drop in bad-loan charges and a large rise in interest income.
MAA HOLDINGS BHD TO IDENTIFY PARTNER BY JUNE - EDGE
Malaysian insurer MAA Holdings Bhd <MAAS.KL> expects to
identify its strategic partner to acquire a stake in its wholly
owned unit Malaysian Assurance Alliance Bhd by June, the Edge
Financial Daily said on Wednesday.
MAA is in talks with Allianz Insurance Management Asia
Pacific Pte Ltd <ALVG.DE>, AXA Asia Pacific Holdings <AXA.AX> and
Affin Holdings Bhd <AFIN.KL> on the possibility of one or more
equity partners for MAA Assurance, the Edge said.
TH PLANTATIONS AIMS TO BOOST ACREAGE BY 50 PCT - PAPER
- TH Plantations Bhd <THPB.KL> aims to boost the size of its
oil-palm estates by 50 percent this year to boost income, the
Business Times said on Wednesday, quoting Managing Director
Rashidi Che Omar.
($1=3.217 Malaysian Ringgit)
(Reporting by Mark Bendeich, Editing by Jacqueline Wong)
((Reuters Messaging mark.bendeich.reuters.com@reuters.net; Kuala
Lumpur newsroom areuters@gmail.com; +603 23338033))
Keywords: MALAYSIA MARKETS STOCKS
.
Keywords: MALAYSIA MARKETS STOCKS =2 KUALA LUMPUR
PRESS DIGEST - Malaysia - May 14
Reuters: [2008-05-14 02:27:00]
Following are the main stories in Malaysian newspapers. Reuters has not verified these stories and does not vouch for their accuracy.
THE STAR (www.thestar.com.my)
- AMMB Holdings Bhd's <AMMB.KL> net profit surged to a record 668.54 million ringgit for the financial year ended March 31, 2008, an impressive turnaround form a net loss of 282.45 million ringgit in financial year 2007, the company said in a statement.
NEW STRAITS TIMES (www.nst.com.my)
- Prime Minister Abdullah Ahmad Badawi launched the Myanmar Disaster Fund in Parliament House on Tuesday to help victims of the cyclone that hit the country.
BUSINESS TIMES (www.btimes.com.my)
- TH Plantations Bhd <THPB.KL>, controlled by Lembaga Tabing Haji, aims to boost the size of its oil-palm estates by 50 percent this year to boost income, Managing Director Rashidi Che Omar said.
THE EDGE FINANCIAL DAILY (www.theedgedaily.com.my)
- National oil company Petroliam Nasional Bhd (Petronas) paid out a total of 26.84 billion ringgit in royalties to the federal government and state governments of Terengganu, Sabah and Sarawak for the financial years ended March 2004 till March 2007, Minister in the Prime Minister's Department Amirsham A Aziz said.
- Shipping firm MISC Bhd <MISC.KL> is seeking more time to complete its due diligence on fabricator Ramunia Holdings Bhd <RAMU.KL>, analysts said.
THE MALAYSIAN RESERVE (news@themalaysianreserve.com)
- Keretapi Tanah Melayu Bhd is awarding a 3.41 billion ringgit contract to design, build and maintain the 248km electrified double-tracking project between Seremban, Negeri Sembilan and Gemas in Johor to Indian rail firm Ircon International Ltd <IRCO.BO>.
THE SUN (www.sun2surf.com)
- The government is looking at a fleet-card system as a way of removing the blanket subsidy on fuel and ensuring it reaches only those who genuinely need it, a source said.
- Telekom Malaysia Bhd (TM) <TLMM.KL> will invest 1.9 billion ringgit over a period of 10 years to equip Iskandar Malaysia with sophisticated broadband, Chief Executive Zamzamzairani Mohd Isa said.
UTUSAN MALAYSIA (www.utusan.com.my)
- AirAsia Bhd <AIRA.KL> is offering free seats, including the routes service by its long-haul, low-cost affiliate, AirAsia X, the company said.
** Looking for more information from local sources? Reuters Business Briefing has 13 Malaysian sources including Business Times Malaysia. For details of the product please call your local help desk (PHONE/HELP). ((Kuala Lumpur newsroom, +60 3 2333 8046; fax +60 3 2072-6752, areuters@gmail.com)) ($1=3.163 Malaysian Ringgit) .
Malaysian Stocks - Market seen weak, palm oil in focus
Reuters: [2008-05-14 02:18:00]
KUALA LUMPUR, May 14 (Reuters) - Malaysian palm-oil stocks
are expected to rally on Wednesday in a largely lacklustre market
after crude oil prices hit another record high.
Palm oil, used as an alternative fuel to petroleum, is down
from its record peaks of March, but the commodity has climbed 11
percent in the past six weeks in tandem with soaring crude.
The plantation sector, which includes blue chips such as IOI
Corp <IOIB.KL>, Kuala Lumpur Kepong <KLKK.KL> and Sime Darby
<SIME.KL>, is up 8.5 percent over the same six weeks, though it
had a bad day on Tuesday after a dip in palm-oil prices.
One broker said the price of crude oil, now nearing $130 a
barrel, was so high that even die-hard plantation investors would
begin to have second thoughts.
"The die-hard fans out there know that these are not
sustainable prices," the dealer said.
The plantation sector is trading at about 15 times
current-year forecast earnings, compared with just over 13 for
the wider market.
On Tuesday, the benchmark Kuala Lumpur Composite Index
<.KLSE> lost 0.51 percent to 1,286,54 points. IOI Corp and Sime
Darby fell 2 percent and 1.1 percent, respectively.
Dealers said the wider market was expected to move sideways
or fall on Wednesday, though lender AMMB Holdings Bhd <AMMB.KL>
could also be in focus after it reported a dramatic turnaround in
its bottom line for the fourth quarter.
----------------------MARKET SNAPSHOT @ 2300 GMT ------------
INSTRUMENT LAST PCT CHG NET CHG
S&P 500 <.SPX> 1403.04 -0.04% -0.540
USD/JPY <JPY=> 104.63 -0.05% -0.050
10-YR US TSY YLD <US10YT=RR> 3.9131 -- 0.000
SPOT GOLD <XAU=> 865.65 0.02% 0.150
US CRUDE <CLc1> 125.87 0.06% 0.070
DOW JONES <.DJI> 12832.18 -0.34% -44.13
ASIA ADRS <.BKAS> 163.79 0.40% 0.65
-------------------------------------------------------------
>US STOCKS-Oil, financials hit Dow; techs lift Nasdaq [.N]
>Oil hits record near $127 as Iran mulls output cut [O/R]
>FOREX-Dollar rallies broadly after retail sales data [USD/]
>TREASURIES-Prices fall on strong sales, dashed rate hopes [US/]
>Gold drops 2 pct on dollar rise, platinum tumbles [GOL/]
>SE Asian Stocks-Indonesia hits 7-week high, Vietnam falls [.SO]
>Malaysia buys 200,000T Thai rice, wants more [ID:nKLR285022]
>Malaysia March factory output misses forecast [ID:nKLR17262]
>Malaysia building sector to grow 5 pct in '08 [ID:nKLA007501]
>Malaysia's Proton unit signs MOU with Spyker [ID:nWNA0127]
>Malaysia ends protection for Proton -report [ID:nKLA007502]
>Malaysian palm oil falls on supply glut fears [ID:nKLR51913]
>Telekom Malaysia to invest $592 mln in Johor [ID:nKLA007500]
>Malaysia's Unisem says China plant survived quake [ID:nWNA0126]
>India's Ircon wins contract for $1.06 bln job [ID:nKLA007499]
>Wilmar says palm oil prices to stay firm [ID:nSGC001983]
LENDER AMMB HOLDINGS BOUNCES BACK INTO BLACK
- Malaysia's fifth-largest lender AMMB Holdings Bhd
<AMMB.KL>, bounced back into the black in the fourth quarter,
reporting a net profit of 217.5 million ringgit ($67.61 million)
compared with a loss of 551.6 million ringgit a year earlier.
The result, released on Tuesday night, came from a dramatic
drop in bad-loan charges and a large rise in interest income.
MAA HOLDINGS BHD TO IDENTIFY PARTNER BY JUNE - EDGE
Malaysian insurer MAA Holdings Bhd <MAAS.KL> expects to
identify its strategic partner to acquire a stake in its wholly
owned unit Malaysian Assurance Alliance Bhd by June, the Edge
Financial Daily said on Wednesday.
MAA is in talks with Allianz Insurance Management Asia
Pacific Pte Ltd <ALVG.DE>, AXA Asia Pacific Holdings <AXA.AX> and
Affin Holdings Bhd <AFIN.KL> on the possibility of one or more
equity partners for MAA Assurance, the Edge said.
($1=3.217 Malaysian Ringgit)
(Reporting by Mark Bendeich, Editing by Jacqueline Wong)
((Reuters Messaging mark.bendeich.reuters.com@reuters.net; Kuala
Lumpur newsroom areuters@gmail.com; +603 23338033))
Keywords: MALAYSIA MARKETS STOCKS
Keywords: MALAYSIA MARKETS STOCKS
Next: RPT-Malaysian Stocks - Factors to watch