Public Bank’s wholly-owned subsidiary, Public Mutual declares distributions for three of its funds. The total gross distributions declared for the financial year ended 31 October 2008 are as follows:

Public Industry Fund 7.50 sen

Public Equity Fund 5.00 sen

Public Islamic Bond Fund 4.00 sen

Public Mutual’s Chairman Tan Sri Dato’ Sri Dr. Teh Hong Piow commented that despite challenging market conditions, Public Mutual is pleased to be able to declare distributions on these three funds.

Public Mutual is the largest private unit trust company in Malaysia, and it manages 67 funds for more than 2,000,000 accountholders. As at 30 September 2008, the total net asset value of the funds managed by the company was RM24.2 billion.

“They (the central bank) were at various levels, from 9,340 rupiah,” said a trader in Jakarta.

“The currency is being pressured because the emerging market and majors are under pressure - the dollar is very strong,” said a second trader in Jakarta.

The rupiah recovered to around 9,300 rupiah per dollar after hitting as low as 9,365 rupiah per dollar - its lowest level since May 27. - Reuters

Via The Edge Daily

HAP Seng Consolidated Bhd is keen to expand its oil palm plantations into Kota Marudu, Sabah, and buy more quarries in Peninsular Malaysia.

Two weeks ago, Hap Seng told the stock exchange that it was buying 727ha of oil palm estate from Bumilaju Construction Sdn Bhd for RM42 million while assuming Bumilaju’s RM15 million liability.

“This is a small buy but a good start. We’re keen to acquire more oil palm land in that area. If and when there’s economies of scale in plantation area, we can put up a mill,” said group managing director Edward Lee Ming Foo.

Bumilaju’s oil palm trees are around seven years old. They are at their prime age of fruit bearing and crude palm oil prices are trading at good prices, he told reporters after the company’s shareholder meeting in Kuala Lumpur yesterday.

“Once the deal is completed, we should see immediate contribution before the year-end,” he added.

Hap Seng is Malaysia’s biggest fertiliser company by sales and last year it sold more at better profit margins. The group sells its fertiliser in straights format under the Sasco brandname.

“Clients could accept higher fertiliser prices because they were benefiting from high palm oil prices,” said executive director and group chief financial officer Soon Seong Keat.

“We think oil palm plantations in Indonesia are likely to order more fertilisers than Malaysia, judging from the rapid growth there,” he added.

Hap Seng operates four quarries in Kota Kinabalu, Tawau, Marang and Kuantan. Its asphalt plants are in Chukai and Kuantan.

Lee said building material prices have been escalating as crude oil in the international market have risen to record levels of between US$130 and US$140 per barrel (RM425.10 and RM457.80). “Prices of asphalt and aggregates are expected to go up further,” he said.

Hap Seng holds the Mercedes-Benz dealership in Klang Valley and exclusively throughout Sabah and Sarawak. Last year, it sold 54 per cent more Mercedes-Benz passenger cars in Klang Valley but less logging trucks of the same badge in Sarawak.

This year, Lee said, the group expects to sell more light and medium Mercedes-Benz trucks for use in oil palm plantations and construction sites.

“We expect higher demand for the lighter weight trucks in view of more investments in making plantation activities more efficient and roll out of construction projects in Sabah,” he said.

Asked if the government’s recent raising of fuel prices had affected sales of Mercedes-Benz passenger cars, deputy managing director Lee Wee Yong replied: “People who buy Mercedes-Benz are usually driven by the heart, not the head. But then again, among luxury cars, Mercedes-Benz is considered very fuel-efficient. A few government bodies in Sabah buy our cars.”

By Ooi Tee Ching Via Business Time

MALAYSIAN shares closed 0.5 per cent lower today, as cautious investors took advantage of the market’s relative strength and sold some of their holdings for profit, dealers said.

The Kuala Lumpur Composite Index was down 6.23 points to 1,281.20.

The Finance Index dropped 43.44 points to 9,871.40, the Industrial Index declined 10.66 points to 2,709.57 and the Plantation Index went down 70.64 points to 7,963.28.

The FBMEmas slipped 28.29 points to 8,614.45 and the FBM30 was 34.14 points lower at 8,277.49. The FBM-MDQ lost 33.05 points to 4,804.06 but the FBM2BRD rose 29.58 points to 5,798.99.

Decliners led advancers by 390 to 260 while 245 counters were unchanged, 524 untraded and 32 suspended.

Overall volume stood at 530.804 million shares worth RM1.311 billion, down from yesterday’s 651.807 million shares worth RM1.591 billion.

“Looking ahead, political defections are still a main concern for the stock market. Additionally, the downward trend may continue but it will not be a drastic sell-down because retailers have not really jumped into the market yet,” said one of the dealers from a local stockbroking firm.

However, he said, the losses could be limited if positive news emerge, with the next more realistic support level for the KLCI expected to be at 1,260 points.

AirAsia Bhd, Southeast Asia’s biggest low-cost carrier, dropped 4 sen, or 3.6 per cent, to RM1.08 on speculation rising fuel costs will cut profitability after crude oil reached to a record US$129.60 yesterday. AirAsia was the third-biggest percentage decliner on the benchmark stock index.

Boustead Holdings Bhd rose 25 sen, or 4.7 per cent, to RM5.55, the largest percentage gainer on the benchmark stock index. The Malaysian plantation and property group said first-quarter profit more than doubled to RM152.3 million from a year earlier, lifted by record palm oil prices.

Malaysian Airline System Bhd lost 8 sen, or 2.2 per cent, to RM3.62, its lowest level since April 9. The nation’s largest carrier said first-quarter profit fell 9.5 per cent after paying more for fuel.

by Agencies Via Business Time

AIRASIA Bhd, the region’s largest low-fare airline, fell below the price of its 2004 initial public offering for the first time in Kuala Lumpur trading on concern near-record jet-fuel prices will erode profit.

The stock dropped 5.1 per cent to RM1.11 at 2:54 pm. That compares with the benchmark Kuala Lumpur Composite Index’s 0.9 per cent decline. The company sold shares in its November 2004 IPO at RM1.16 apiece.

AirAsia has plunged 43 per cent in the past year as a near doubling of jet-fuel prices, most Asian airlines’ biggest expense, boosts costs. The carrier is also facing increasing competition from Malaysian Airline System Bhd, the nation’s largest carrier, which has cut fares and given away free tickets to win travelers.

“I’ve heard some rumors about possibly weaker-than-expected earnings” at AirAsia, said Vincent Khoo, head of research at Aseambankers Malaysia Bhd in Kuala Lumpur. He rates the carrier, which is due to report earnings on May 29, “fully valued.”

AirAsia, based in Sepang, Malaysia, boosted passenger numbers 21 per cent in the first quarter from a year earlier, it said on May 9. Spokeswoman Janet Leow didn’t immediately reply to a mobile-phone text message and calls to her phone didn’t connect.

MAS, scheduled to report first-quarter earnings today, this month set aside as much as 30 per cent of seats on Southeast Asian routes for low fares and promised 1 million free domestic flights.

Fuel Price

Jet-fuel prices closed at a record US$162.55 a barrel on May 14 in Singapore trading.

AirAsia, run by chief executive officer Datuk Tony Fernandes, is among the 18 budget carriers that started flying in South and Southeast Asia in the past five years as economic growth in the region fueled demand for air travel.

Increasing competition and fatal crashes prompted some budget airlines in Asia to shut down this year, while others have postponed share sales. Budget carriers in India and Thailand have postponed plans for initial public offerings as competition crimps profitability.

In Indonesia, PT Adam Skyconnection Airlines stopped flying in March because it ran out of funds. Oasis Hong Kong Airlines Ltd, the budget carrier that challenged Cathay Pacific Airways Ltd on some of its most profitable routes, ceased operations last month, crippled by high landing fees and rising oil prices.

Bloomberg Via Business Time

Last year was an exceptionally good year for the stock market operator, with the Kuala Lumpur Composite Index hitting multiple all-time highs.

Bursa posted higher revenue of RM491.968 million for the financial year ended December 31 2007 from RM301.943 million the previous year, while its pre-tax profit rose to RM318.980 million from RM152.913 million.

“The Year 2007 was a good year. During the first quarter of this year, the volume was relatively lower compared to the first three months of 2007 (but) we see the current situation as temporary. We need it (the volume in the equities market) to improve during the rest of the year,” he said.

On the contrary, the derivatives market had been very robust during the first quarter, which can help Bursa cushion the impact in the equities market, Yusli said after delivering a keynote address at the corporate governance regulatory framework and current issues forum in Kuala Lumpur yesterday.

Last year, Yusli said, the derivatives market contributed about 15 per cent to Bursa’s revenue, and “we are confident that it will grow significantly over the next few years, especially with the introduction of new products”.

As for the volatility in the market, Yusli said it is not only the local bourse but also other equity markets globally were impacted, mainly due to the snowball effect of the US subprime credit crunch.

“So, we have to wait for all these issues to settle down before we can see a bottoming out. Once that is done and when companies start announcing their financial results (the market may change its tone),” he said.

On the other hand, he said, good corporate governance practices could also influence investors to buy Malaysian equities. “We want our companies to take the lead,” he stressed.

Earlier in his speech, Yusli said good corporate governance is not for listed companies only.

“It is important that all companies, particularly those aspiring to be listed, also adopt some of the best practices in corporate governance in order to maintain a healthy and amicable relationship with shareholders and other stakeholders,” he added.

He said shareholders’ support and confidence will ultimately be reflected in the market value of the company, and good corporate governance will contribute to that. - Bernama

Via Business Time