Celcom (Malaysia) Bhd, a unit of TM International (TI MK, Hold, TP: RM2.75), says its customer base grew by 22% in 2008, the fastest in three years, despite a saturated market. Celcom added 1.56m new customers last year, bringing its total to 8.76m. It is also believed that Celcom has gained a significant subscriber market share last year, mainly at the expense of rival DiGi (DIGI MK, Hold, TP: RM22.60). Based on Celcom's internal estimates, the second largest mobile phone operator grew its market share to 32.5% last year (30.9% a year ago). DiGi's market share fell by 1.2% to 26.2%, while Maxis' market share dropped 0.4% to 41.3%. Officially, Celcom's 2008 net adds is more than double DiGi's 2008 net adds, which is about 700,000 users, while Maxis has yet to disclose its numbers. (BT)
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Puncak Niaga Holdings Bhd (PNH MK, Hold, TP: RM3.00) and its 70%-owned unit Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS) are said to be exploring the possibility of taking over Syarikat Pengeluar Air Selangor Holdings (SPLASH). It is believed that a meeting has been slated for this week between the controlling shareholders of Puncak and those of SPLASH and possibly Konsortium Abbas Sdn Bhd. (The Edge)
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Malaysia Airlines (MAS MK, Sell, TP: RM2.44) has set up a 50:50 joint venture (JV) with GMR Hyderabad International Airport Ltd to form an airframe maintenance, repair and overhaul (MRO) company in Hyderabad. MAS deputy chairman N. Sadasivan says the airline’s aim is to position the JV company as a leading MRO player. “Our facility, catering to both narrow- and wide-bodied aircraft checks, will be up and running by the third quarter of 2010“, he said. “Built specially to service aircraft in the Indian subcontinent, we have the capacity to service 60 to 80 aircraft annually”, he further added. (StarBiz)
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Kim Loong Resources (KIML MK, Hold, TP: RM1.70) plans to double its palm oil cultivation acreage in the next 1-2 years, said Excutive Chairman Gooi Seong Lim. He said the company would then have almost 26,000ha of oil pakm estates from close to 13,000 now. The group says that they are looking for green land in Johor and Sabah as well as Sarawak. No capex plans were mentioned. (Starbiz)
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The country’s economy grew 4.6% in 2008 compared with 6.3% in 2007 as domestic demand continued to provide support to growth, driven mainly by private consumption and public spending, the central bank says. But economic growth in the fourth quarter (Q4) registered a sharp slowdown amid weakening domestic demand and falling exports. Net real exports of goods and services slumped 40.1% compared with 14.8% in Q3(StarBiz)
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Moody’s Investors Service has downgraded its outlook on MISC Bhd to negative from stable for its A2 issuer and senior unsecured debt ratings, driven by the shipping firm’s declining profitability in the past nine months. Moody’s vice-president and senior credit officer Peter Choy said pressure on its profitability is likely to continue amid the challenging shipping markets and global economic slowdown. “In addition, MISC’s medium-term capital expenditure programme remains sizeable, which will lead to further borrowings thereby weakening its credit metrics and increasing its liquidity risk in a tight credit market,” he added. (BT)
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Institutional and retail investors of MMC Corp will meet tomorrow to discuss MMC’s proposed acquisition of the entire stake in Senai Airport Terminal Services (SATS). The emeetings, to be conducted separately, are scheduled to take place at the office of the Minority Shareholders Watchdog Gtoup (MSGW). Among institutuinal shareholders that have been invited are PNB, EPF, KWAP and others. Shareholders have 14 days to analyse the proposed acquisition. (Starbiz)
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Puncak Niaga Holdings Bhd (PNH MK, Hold, TP: RM3.00) and its 70%-owned unit Syarikat Bekalan Air Selangor Sdn Bhd (SYABAS) are said to be exploring the possibility of taking over Syarikat Pengeluar Air Selangor Holdings (SPLASH). It is believed that a meeting has been slated for this week between the controlling shareholders of Puncak and those of SPLASH and possibly Konsortium Abbas Sdn Bhd. (The Edge)
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Malaysia Airlines (MAS MK, Sell, TP: RM2.44) has set up a 50:50 joint venture (JV) with GMR Hyderabad International Airport Ltd to form an airframe maintenance, repair and overhaul (MRO) company in Hyderabad. MAS deputy chairman N. Sadasivan says the airline’s aim is to position the JV company as a leading MRO player. “Our facility, catering to both narrow- and wide-bodied aircraft checks, will be up and running by the third quarter of 2010“, he said. “Built specially to service aircraft in the Indian subcontinent, we have the capacity to service 60 to 80 aircraft annually”, he further added. (StarBiz)
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Kim Loong Resources (KIML MK, Hold, TP: RM1.70) plans to double its palm oil cultivation acreage in the next 1-2 years, said Excutive Chairman Gooi Seong Lim. He said the company would then have almost 26,000ha of oil pakm estates from close to 13,000 now. The group says that they are looking for green land in Johor and Sabah as well as Sarawak. No capex plans were mentioned. (Starbiz)
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The country’s economy grew 4.6% in 2008 compared with 6.3% in 2007 as domestic demand continued to provide support to growth, driven mainly by private consumption and public spending, the central bank says. But economic growth in the fourth quarter (Q4) registered a sharp slowdown amid weakening domestic demand and falling exports. Net real exports of goods and services slumped 40.1% compared with 14.8% in Q3(StarBiz)
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Moody’s Investors Service has downgraded its outlook on MISC Bhd to negative from stable for its A2 issuer and senior unsecured debt ratings, driven by the shipping firm’s declining profitability in the past nine months. Moody’s vice-president and senior credit officer Peter Choy said pressure on its profitability is likely to continue amid the challenging shipping markets and global economic slowdown. “In addition, MISC’s medium-term capital expenditure programme remains sizeable, which will lead to further borrowings thereby weakening its credit metrics and increasing its liquidity risk in a tight credit market,” he added. (BT)
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Institutional and retail investors of MMC Corp will meet tomorrow to discuss MMC’s proposed acquisition of the entire stake in Senai Airport Terminal Services (SATS). The emeetings, to be conducted separately, are scheduled to take place at the office of the Minority Shareholders Watchdog Gtoup (MSGW). Among institutuinal shareholders that have been invited are PNB, EPF, KWAP and others. Shareholders have 14 days to analyse the proposed acquisition. (Starbiz)
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Malaysian Bulk Carriers Bhd (Maybulk) is looking at acquiring new vessels this year as the collapse of the dry bulk market has provided some bargains, says executive chairman Teo Joo Kim. Maybulk is looking around for newer secondhand vessels or vessels resold from shipyards, he says. The Baltic Dry Index, a measure of shipping costs for commodities, plunged 94% to 663 points on Dec 5 from last year’s peak of 11,793 points on May 20. The index stood at 1,950 points on Thursday. (StarBiz)
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The operating environment for the domestic banking sector is expected to become more challenging this year, due to slower consumer spending and reduced corporate capital expenditure, the country's biggest lender says. Malayan Banking said these will lead to prospects for slower loans growth and deterioration in asset quality, with the banks' margin also expected to be under pressure due to continued intense competition. "Prospects for capital markets and insurance business will be similarly challenging," its chairman Tan Sri Mohammed Basir Ahmad said in a press briefing last Friday. Against a backdrop of the weakening economic and operating environment and with recent acquisitions yet to be earnings accretive, the banking group expects net profit for the current financial year ending June 30 2009 to be lower than the previous financial year. (Starbiz)
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The operating environment for the domestic banking sector is expected to become more challenging this year, due to slower consumer spending and reduced corporate capital expenditure, the country's biggest lender says. Malayan Banking said these will lead to prospects for slower loans growth and deterioration in asset quality, with the banks' margin also expected to be under pressure due to continued intense competition. "Prospects for capital markets and insurance business will be similarly challenging," its chairman Tan Sri Mohammed Basir Ahmad said in a press briefing last Friday. Against a backdrop of the weakening economic and operating environment and with recent acquisitions yet to be earnings accretive, the banking group expects net profit for the current financial year ending June 30 2009 to be lower than the previous financial year. (Starbiz)
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GLOBAL
Stocks tumbled Friday on worries about the government taking a bigger chunk of Citigroup and a bleak reading on the economy, again touching 12-year lows. The DJIA lost 1.7% (-119.2 pts, close 7,062.9). The S&P 500 index lost 2.4% (-17.7 pts, close 735.1) while the Nasdaq composite lost 1.0% (-13.6 pts, close 1,377.8). In currency trading, the dollar gained versus the euro and fell against the yen. US light crude oil for April delivery fell 46 cents to US$44.76 a barrel on the New York Mercantile Exchange. (CNNMoney)
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The U.S. economic contraction in 4Q08 was deeper than the government first estimated, with other reports signalling little prospect of relief until at least the middle of 2009. Gross domestic product shrank at a 6.2% annual pace from October
through December, the most since 1982, the Commerce Department said yesterday. Separate figures showed consumer sentiment and business activity dropped this month. Consumer spending dropped at a 4.3% annual rate last quarter, the most since 1980, after falling at a 3.8% pace in 3Q08. That marks the first time purchases have dropped by more than 3 percent in consecutive quarters since record-keeping began in 1947. Business purchases of new equipment plunged at a 29% pace, the most since 1958. (Bloomberg)
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China’s economy has shown some signs of recovery after the government started implementing its 4trn yuan (US$585bn) economic stimulus package, Premier Wen Jiabao said. Wen cited rising loans, retail sales in January and growing power output and consumption since the middle of February as signs of relief. Still, Wen cautioned that the positive data may be temporary or distorted by seasonal factors. The nation’s economy, which has already seen the jobs of 20m migrant workers
eliminated, may slow to 6.3% in 1Q09, the weakest pace since 1999, according to the median estimate of 14 economists surveyed by Bloomberg News. (Bloomberg)
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The World Bank, the European Bank for Reconstruction and Development and the European Investment Bank will provide up to 24.5bn euros (US$31bn) to help central and east European banks and businesses cope with the global financial crisis. The EBRD will provide about 6bn euros, the EIB about 11bn euros and the World Bank about 7.5bn euros. The aid will take the form of equity and debt financing, credit lines and political risk insurance. East European nations are struggling to refinance foreign-currency loans taken out by borrowers during years of prosperity through 2007, when economic growth averaged more than 5%. The International Monetary Fund, which has bailed out Latvia, Hungary, Serbia, Ukraine and Belarus, warned on Jan. 28 that bank losses may widen as “shocks are transmitted between mature and emerging-market banking systems.” (Bloomberg)
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Thailand’s central bank will probably cut its key interest rate further this year to boost growth as the country faces its first recession in 11 years and 1m job losses, Finance Minister Korn Chatikavanij said. The central bank cut its benchmark interest rate on Feb. 25 for a third straight month to 1.5% to buoy demand after consumer prices fell and the economy shrank in 4Q08 for the first time since 1999. Prime Minister Abhisit Vejjajiva, who took power 10 weeks ago following months of violent protests, has pledged fresh stimulus measures to stem the economy’s slide. Manufacturing production contracted the most on record in January, the central bank said Feb. 27. (Bloomberg)
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Stocks tumbled Friday on worries about the government taking a bigger chunk of Citigroup and a bleak reading on the economy, again touching 12-year lows. The DJIA lost 1.7% (-119.2 pts, close 7,062.9). The S&P 500 index lost 2.4% (-17.7 pts, close 735.1) while the Nasdaq composite lost 1.0% (-13.6 pts, close 1,377.8). In currency trading, the dollar gained versus the euro and fell against the yen. US light crude oil for April delivery fell 46 cents to US$44.76 a barrel on the New York Mercantile Exchange. (CNNMoney)
* * * * *
The U.S. economic contraction in 4Q08 was deeper than the government first estimated, with other reports signalling little prospect of relief until at least the middle of 2009. Gross domestic product shrank at a 6.2% annual pace from October
through December, the most since 1982, the Commerce Department said yesterday. Separate figures showed consumer sentiment and business activity dropped this month. Consumer spending dropped at a 4.3% annual rate last quarter, the most since 1980, after falling at a 3.8% pace in 3Q08. That marks the first time purchases have dropped by more than 3 percent in consecutive quarters since record-keeping began in 1947. Business purchases of new equipment plunged at a 29% pace, the most since 1958. (Bloomberg)
* * * * *
China’s economy has shown some signs of recovery after the government started implementing its 4trn yuan (US$585bn) economic stimulus package, Premier Wen Jiabao said. Wen cited rising loans, retail sales in January and growing power output and consumption since the middle of February as signs of relief. Still, Wen cautioned that the positive data may be temporary or distorted by seasonal factors. The nation’s economy, which has already seen the jobs of 20m migrant workers
eliminated, may slow to 6.3% in 1Q09, the weakest pace since 1999, according to the median estimate of 14 economists surveyed by Bloomberg News. (Bloomberg)
* * * * *
The World Bank, the European Bank for Reconstruction and Development and the European Investment Bank will provide up to 24.5bn euros (US$31bn) to help central and east European banks and businesses cope with the global financial crisis. The EBRD will provide about 6bn euros, the EIB about 11bn euros and the World Bank about 7.5bn euros. The aid will take the form of equity and debt financing, credit lines and political risk insurance. East European nations are struggling to refinance foreign-currency loans taken out by borrowers during years of prosperity through 2007, when economic growth averaged more than 5%. The International Monetary Fund, which has bailed out Latvia, Hungary, Serbia, Ukraine and Belarus, warned on Jan. 28 that bank losses may widen as “shocks are transmitted between mature and emerging-market banking systems.” (Bloomberg)
* * * * *
Thailand’s central bank will probably cut its key interest rate further this year to boost growth as the country faces its first recession in 11 years and 1m job losses, Finance Minister Korn Chatikavanij said. The central bank cut its benchmark interest rate on Feb. 25 for a third straight month to 1.5% to buoy demand after consumer prices fell and the economy shrank in 4Q08 for the first time since 1999. Prime Minister Abhisit Vejjajiva, who took power 10 weeks ago following months of violent protests, has pledged fresh stimulus measures to stem the economy’s slide. Manufacturing production contracted the most on record in January, the central bank said Feb. 27. (Bloomberg)
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