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Monday, June 28, 2010

Sunway Holdings (RM1.55) gets RM129m factory contract

KUALA LUMPUR: Sunway Holdings Bhd has secured a RM129 million contract from PML Dairies Sdn Bhd for the proposed construction of a dairy product factory. Sunway said on Monday, June 28 the contract was to build a dairy product factory on Pulau Indah, off Port Klang.

"The proposed project is targeted to be fully completed on July 11, 2011 with a construction period of 12 months," it said. Sunway expected the project to contribute positively to the group's earnings for the financial year ending Dec 31, 2010 onwards.

Source: The Edge

EPS could rise by about 1.6 sen to 2 sen p.a. from this project, assuming 8-10% profit margin.

For more info on Sunway, click here.

Thursday, June 24, 2010

Work on LRT extensions to start year-end: Good news for construction and building materials sectors, hopefully no more delays

KUALA LUMPUR: Systems works for the light rail transit (LRT) extension of the Kelana Jaya and Ampang lines are expected to commence by year-end. Syarikat Prasarana Negara Bhd (SPNB) group managing director Datuk Idrose Mohamed said on Thursday, June 24 the system works will be divided into two packages.

A pre-bid briefing was held with the pre-qualified contractors for Packaage A on June 22 and site visit will be held on June 27. Tenders for package B and other subcontract packages such as for the stations, escalators and lifts, and multi-storey car parks will be called at a later date.

The system works comprises of the engineering, procurement and construction (EPC) systems and signalling work for the Kelana Jaya extension. The Ampang extension package will entail EPC systems and rolling stock works. The systems works, together with the advance and facilities works, will cover portions of the line extensions, and will collectively be known as Package A. Package A is expected to be completed three years after work has commenced, he added.

Source: The Edge

Potential Beneficiaries:
UEM Builders-Intria Bina joint venture (JV)
IJM Construction Sdn Bhd
Sunway Construction Sdn Bhd
Gamuda Bhd
Loh & Loh Construction Sdn Bhd
WCT Bhd-Sinohydro
MMC Corp-Zelan Bhd
Ranhill Bhd-China Communication Construction Company Ltd
Fajarbaru Builders Sdn Bhd-Signatium Construction Sdn Bhd
BPHB-Tim Sekata,
Zabima-Leighton
MTDC-Persys
Mudajaya Corp Bhd
Muhibbah Engineering Sdn Bhd
MRCB Engineering Sdn Bhd
Bina Puri Holdings Bhd-Acre Works-SNC Lavalin
UEM Construction Sdn Bhd - Projek Penyelenggaran Lebuhraya Bhd.

Tuesday, June 22, 2010

Jottings on China yuan's reform


The announcement: PBoC recently announced that it will cancel the yuan's peg against USD which has been in place since mid 2008 during the global financial crisis, citing reasons such as a strong economic recovery in China and gradual global recovery. This move could also help China to deal with its inflation rate which in May exceeded its target of 3% for 2010 and probably may reach 4% by the end of this year, coupled with preventing asset bubbles. Nonetheless, the government's move to maintain the yuan's daily trading limit of +/- 0.5% was a disappointment to the market as this means that the yuan will only appreciate rather gradually and not as fast as what others may want. Having said that, this was still a surprise to many as the market expected yuan to only move away from the USD peg in 3Q owing to the lingering Europe debt crisis. This could have explain the rally in the markets on Monday.

Other reason for the announcement? There could be other hidden reason why China made this announcement at this point of time. One could be due to the upcoming G20 summit in Toronto next weekend where China might face the onslaught from members of the summit in particular US. With this announcement, China could at least deflect some of the attention away from its 'unfair' currency peg and focus more on tackling the crisis of highly indebted countries.

How much will the yuan appreciate in the short term? Probably not much. Some reports are stating 4% to 6% appreciation against the USD by end of this year, which is expected to have little effect to their external trades. There could be further pressure for China to allow greater flexibility for yuan to appreciate. There is a possibility for more reforms on yuan after the G20 summit i.e. widening of daily trading band and revaluation of the yuan. Yuan appreciation could actually work in favor for the country. It can help the country to cope with its inflation and surging asset prices (which is of a higher priority now) coupled with aligning the country's economic model to a more domestic-driven one instead of an invest-export model.

However, I believe yuan appreciation has to be moderated and not let it be revalued too rapidly, lest it will suffer the same consequences of Japan in the 1990s when Japan revalued its currency upwards drastically under the pressure of US while being reinforced by Japan's asset bubble burst in 1990-91, causing a deflationary slump from which it has yet to fully recover.

Appreciation of yuan could help lift regional currencies: Historical data has shown that Asian currencies actually benefitted from yuan appreciation, mainly due to China’s rising position as a major trading partner among the Asian countries. To recap, Chinese government allowed its yuan to appreciate against USD in July 2005. The yuan had since appreciated by 1.6% over the next twelve months, giving rise to the appreciation of Asian currencies. Consequently, the Singapore dollar, Indonesian rupiah and Malaysian ringgit appreciated by 5.1%, 7.0% and 2.7% respectively during the same period. CIMB is forecasting Malaysian Ringgit to appreciate to 3.05 against the USD by end 2010.

Implication to Malaysia: Probably less competition from China's exports coupled with stronger exports to China. Exporters might be slightly affected such as palm oil players, electronic exporters and glove manufacturers. Importers such as automakers and food producers coupled with companies with high foreign borrowings such as Tenaga could benefit. Higher domestic currency could also attract foreign investors to park their money in our capital markets especially bonds which is further supported by the interest rate differentials between Malaysia and other countries.

Friday, June 18, 2010

Fajarbaru (RM0.99): Volume surged. Something's brewing inside??


Fajarbaru's shares suddenly surged with huge volume. Something's brewing inside?? Anyway, looking at the balance sheet, the cash level is unbelievable. They have RM123mil cash, equivalent of 74 sen cash. What are they going to do with the money? Preparing for some real big project to start off? Are they planning property development, probably in Port Dickson or Malacca or are they expecting to secure some projects soon? Possible project awards include LCCT Aprons/runways and awards from its local project tenders worth RM400 mil.

I'm putting in 7% of portfolio into Fajarbaru for now.

Stock data:
PE for 2010 and 2011: 7.4x and 6.2x
Div Yield: 6%
Shares issued: 166.2 mil
Net Cash: RM123 mil / 74 sen per share
Outstanding orderbook: RM440 mil (Easily last until end 2012)
Revenue p.a.: RM170mil approx.
Net margin: 13% (Very high for construction companies)


For more info, click here.

Disclaimer: The above article does not represent an investment advisory service as no subscription or management fees are charged. The contents of the article are provided as general information only and should not be taken as investment advice or as a recommendation to buy or sell any security or financial instrument. Any investment decisions carried out based on information, analysis, or commentary provided above is solely your responsibility. You should consult your investment adviser before making any investment decisions.

Thursday, June 17, 2010

Agricultural Bank of China IPO - A buy sign for Chinese stocks?


An interesting article by Jim Jubak on Agricultural Bank of China IPO offering which could signal a good buy on China stocks. Stock market going to do well then in July?

Sunway's (RM1.53) venture into Sri Lanka: Good! More to come??


News: Update - Sunway explores RM250m JV development in Colombo

I would say it's a good move for a company going into a country which is just starting to enjoy peace and political stability after decades of civil war. It is also good to go in at this time where there's not much competition coming yet unlike China which is saturated with too many property developers and contractors. The 26-year war left many parts of the country devastated, leaving the country in urgent need for reconstruction and new development projects including ports, power and other infrastructure development. Thus, there will be plenty of business opportunities to explore in Sri Lanka. I hope, just hope, that Sunway might explore investments which could bring recurring income to the company, such as toll roads, power or water sectors, just like Mudajaya and IJM which ventured into power stations and toll road operations respectively in India. It will be great to have Sunway venturing into recurring income businesses which will charter a new growth for the company and trigger an upward re-rating to its share price. Hopefully they are considering this.

Click here for more info.

Disclaimer: The above article does not represent an investment advisory service as no subscription or management fees are charged. The contents of the article are provided as general information only and should not be taken as investment advice or as a recommendation to buy or sell any security or financial instrument. Any investment decisions carried out based on information, analysis, or commentary provided above is solely your responsibility. You should consult your investment adviser before making any investment decisions.

Notion Vtec (RM3.00): Proposal For Private Placement & Free Warrants


Bank Negara had recently approved Notion's proposal to undertake private placement of 10% of its total share capital and issuance of free warrants with 1 free warrant for every 5 existing shares held.

Private placement will help the company to raise about RM46mil to finance its capital expenditure for its centralized 2.5" HDD baseplate manufacturing facility in Klang, working capital and expenses for this proposal. This placement will be given to long-term institutional investors or strategic investors (I wonder who will likely be the investor. The previous one was Nikon which took up 10%. This time will it be Canon, WD or some other big names?) This strategy will be very good for the company as it could ensure continuous businesses coming from these electronic giants. This also helps Notion to raise cash without incurring interest costs. The downside could be dilution of EPS. However, the investment returns from this manufacturing facility and possible big names holding its shares could more than offset the EPS dilution. On the other hand, the proposed free warrants could enable investors to increase their participation of the company.

Both of these proposals could help the company to lower their net gearing as well. Net gearing is already low at 9% at the moment. The company could easily swing to net cash from current level.

Click here for more info.

Disclaimer: The above article does not represent an investment advisory service as no subscription or management fees are charged. The contents of the article are provided as general information only and should not be taken as investment advice or as a recommendation to buy or sell any security or financial instrument. Any investment decisions carried out based on information, analysis, or commentary provided above is solely your responsibility. You should consult your investment adviser before making any investment decisions.

Wednesday, June 16, 2010

Stock Holdings & Stocks Under Watch


There have been some requests from friends to inform them of my investment holdings and investments decisions I make. So, here it is. Hope this could help in some ways in your investment decisions and do feel free to provide feedback to me so that it could help improve my trades as well. Thanks.
Supermax (RM5.50):
Going to hold this for rather long-term until I see signs of negative turnaround for the glove industry such as supply glut, rising costs of energy/latexx, weakening USD and whether these factors can be passed on to customers. Supply glut might happen probably in another 2 years or more according to Stanley Thai. PER remains reasonable at 9.8x and 8.7x for 2010 and 2011 respectively, a huge discount to Top Glove which is trading at PE of 14.7x and 13.5x for 2010 and 2011 respectively. Earnings growth for 2011 is OK at 12.5%. The recent bonus shares (1 bonus share for 4 existing shares held) could further boost liquidity of the shares (They are already very liquid) as shares are cheaper with more shares in the market. Still like glove industry which is resilient and recession proof. Click here for more info.

Sunway Holdings (RM1.49):
The stock remains very cheap at PE of 7.4x and 6.4x for 2010 and 2011 respectively, which is at a huge discount of 50% as compared to its peers like Mudajaya, IJM, WCT or Gamuda. The company is poised to post record earnings this year coupled with huge project tenders of RM16bil with expected success rate of 10-15%. It is even cheaper than HSL or Naim which only concentrate in Sarawak and depend more on government projects whereas Sunway's orderbook is more diversified from Malaysia and government projects (Fear of overseas ventures being riskier???). It is also supported by project development and quarry business segments. Earnings growth at 15% in 2011 with strong orderbook of RM2.8bil which could last them comfortably for the next two years. Click here for more info.

Notion (RM3.04):
This stock is about growth, high margins and strong shareholders. PE of 9.35x and 7.3x for 2010 and 2011 respectively. Earnings growth expected to be more than 25-30% over the next 5 years (If I can recall, this figure came from the CEO himself). Nikon is a substantial shareholder of about 9%. Global electronics/semiconductor sector is thriving, driven by greater usage of digital devices. With more usage of laptops, game consoles (X-box, PS3), IPAD (more tablets coming from HP and Blackberry?), demand for HDDs continues to be strong. Click here for more info.

Latexx (RM3.49):
Smaller glove manufacturer, PE of 9.4x and 7.4x for 2010 and 2011 respectively. Earnings growth expected to be strong at 27% for 2011. Stock price is cheaper which allows investors to hold more shares. Better than Adventa for now due to Adventa's hiccups in its latest quarterly results and delay in production expansion.


Stocks under watch

1. Coastal Contracts (RM2.35): Cheap valuation and high earnings growth but looks riskier for this current market (Dependent on contracts, too narrowed to O&G sector, share trading cold, costs dependent on steel prices, reliability of subcontractors). Might consider going in again when sentiments are better and shares are more liquid/volatile. Click here for more info.

2. Eng Teknologi (RM2.55): Cheap valuation, PE around 4x (unbelievably low, wonder why?). Expansion plans? Earnings growth expected to be little. Will research more.

3. APM (RM3.90): PE still below 10x. Potential to go higher. Tan Chong, MBM, Proton have moved up after the recent selldown except for this counter.

4. Dufu (RM0.54): Nobody's playing. Shares are too cold. PE exceedingly low at less than 4x. Customers too concentrated on 3 players i.e. Western Digital, Seagate and Hitachi Global Storage. Share performance is soft like tauhu :p Click here for more info.

5. Naim (RM3.00): Beneficiary of Sarawak projects. Click here for more info.

Disclaimer: The above article does not represent an investment advisory service as no subscription or management fees are charged. The contents of the article are provided as general information only and should not be taken as investment advice or as a recommendation to buy or sell any security or financial instrument. Any investment decisions carried out based on information, analysis, or commentary provided above is solely your responsibility. You should consult your investment adviser before making any investment decisions.

Friday, June 11, 2010

Key Highlights of 10MP

Some of the key highlights of 10MP announced by PM on 10th June 2010:
  • Public-private partnership for projects. Fifty-two high-impact projects worth RM63 billion to be implemented.
  • Of the 52 projects, seven are highway projects costing RM19 billion. They include the West Coast Expressway, Guthrie-Damansara Expressway, Sungai Juru Expressway and Paroi-Senawang-KLIA Expressway;
  • Two coal electricity generation plants costing RM7 billion.
  • Development of the Malaysian Rubber Board's land in Sungai Buloh, covering 3,300 acres at an estimated RM10 billion.
  • Facilitation fund of RM20 billion under 10MP to help the private sector finance projects with strategic impact and those with huge economic spillover. Fund expected to attract RM200 billion in private sector investments.
  • Projects considered for financing are Land Reclamation in Westport in Port Klang, Malaysia Truly Asia Centre in Kuala Lumpur and Senai High Technology Park in Iskandar Malaysia, Johor.
  • Development of a wider, efficient multimodal transport network. Includes Phase 2 of East Coast Expressway from Kuantan to Kuala Terengganu, to be completed in 10MP costing RM3.7 billion.
  • RM8 billion electrified double-track rail project from Gemas to Johor Bahru.
  • Mudharabah Innovation Fund (MIF), with RM500 million allocation to provide risk capital to government venture capital companies.
  • Gross national income per capita to rise to RM38,850, or US$12,140 in 2015. Real GDP growth of 6% per annum.
  • Private sector investments to grow at 12.8% or RM115 billion per annum.
  • Fiscal deficit to be reduced from 5.3% of GDP in 2010 to below 3% in 2015.
  • New Energy Policy to strengthen energy supply by creating a more competitive market, reducing energy subsidy in stages.
  • Regional economic development to focus on a number of dense urban clusters with high value industries to attract investments and skilled workforce.
  • RM500 million fund for the repair and maintenance works of public and private low-cost housing.
  • 78,000 new affordable public housing units nationwide. Low-cost public housing units would be provided to qualified individuals and families with household incomes of less than RM2,500 per month.
  • Bumiputera participation in economy to include financial and non-financial assets, such as real estate and business premises as well as professional employment.
  • Target of at least 30% bumiputera corporate equity ownership at macro level remains.
  • Pelaburan Hartanah Bhd to set up Real Estate Investment Trusts (REITs) to facilitate bumiputera investment in commercial and industrial properties and benefit from property appreciation.
  • The 10MP will focus on raising the income and quality of life of the bottom 40% household income group. Bumiputeras form 73% of the 2.4 million households in this group.
  • RM280 million for 2011 and 2012 for government-aided schools to undertake renovations, upgrading. Chinese schools, Tamil schools, religious schools and mission schools will receive RM70 million for the first two years of the plan.
  • Expanding essential facilities in rural areas. 6,300km of paved roads in Peninsular Malaysia, 2,500km in Sabah and 2,800km in Sarawak, which are expected to benefit 3.3 million people. Government to boost public transportation network in Kuala Lumpur with high capacity Mass Rapid Transit system to cover a radius of 20km from the city centre, with total length of about 150km. When fully operational, it will serve up to two million passenger trips per day from 480,000 trips on current urban rail systems.
  • RM1.5 billion Green Technology Financing Scheme to enhance the application of green technology in the production of goods and provision of services.

Source: The Edge

Wednesday, June 9, 2010

Some thoughts on 10th Malaysia Plan

  • Construction projects: More aggressive rollout and implementation? Newsflow has been quite slow in 1H2010, maybe due to govt's intention to announce all these projects one shot in 10MP or they really need to control the government coffers. Possible contracts include LRT extension, MRT (recently announced), possible revival of the high speed rail from KL to Singapore, Pahang Selangor Water Transfer project, SCORE (Sarawak). Possible beneficiaries: IJM, Gamuda, Sunway, Mudajaya, IJM, Loh & Loh, CMSB, WCT, Naim, HSL.
  • Fiscal Consolidation: GST and subsidy removal - Government should bite the bullet and implement these measures to strengthen the fiscal position of the government as the tax base is too narrowed on oil revenue while subsidies are spoiling the industries and cap industries from moving up the value chain. Basically, with the current subsidies on oil, flour, sugar etc, we're actually the Santa Claus of the whole region, subsidizing Singapore, Thailand, Indonesia as people smuggle our cheap goods out of the country.
  • Listing of GLCs - Petronas two subsidiaries (potentially Petronas Carigali and Malaysia LNG) and MOF's subsidiaries (Percetakan Nasional Bhd, Ninebio, Inno Biologics Composites Technology Research Malaysia). More participation of the public in the GLCs which could instill greater transparency, efficiency of the businesses.
  • More divestments of GLC shares? More GLCs following Pos Malaysia's shares divestment by Khazanah? Companies held by Malaysia investment arm include Axiata, Telekom, Proton, MAS, UEM, MAHB, Tenaga, PLUS, Time Engineering etc.
  • Liberalization of economic policies: Hopefully more licenses could be granted to foreign parties to allow more foreign participation in the banking industry and capital markets.
  • More private-sector led economic growth: The private sector needs to take the lead in growing the economy with the support of the government. In 9MP, RM230 billion development expenditure was all funded by the government. Nonetheless, in 10MP, Government will only fund RM180 billion with RM15 billion being the funds for PFI (Private Finance Initiatives) to allow greater participation of the private sector in development projects. Najib will be focusing on SMEs by granting greater incentives for SMEs which are innovative and are moving up the value chain or at the high value-added industries. This is in line with the government's intention to move Malaysia into a higher level economy.
  • Concerns: All can be great with words only but implementation is still the key. The government should not fear the political backlash and should implement policies which could hurt in the short term but are actually beneficial in the long term e.g. GST, subsidies removal. These measures should be implemented as early as possible but at gradual pace to allow the industries and people to adjust to the new economic reality of high commodity price environment, deteriorating fiscal position and the middle income trap.

Sunday, June 6, 2010

Economic numbers: The week ahead


US:
  • Retail Sales - Modest growth expected
  • Consumer Confidence Index - Weak labour market could continue to weigh it down
  • Initial Jobless Claims
  • External Trade
EU:
  • Germany Factory Orders - Underlying trend on the upside, but might grow at slower pace after a big jump in the previous month
  • Germany IPI - To be higher on rising orders
  • UK IPI - To be higher on rising orders
China:
  • External Trade - Optimistic, driven by higher export prices. But sustainability of EU and US economic recovery will determine the direction of its export growth going forward.
  • IPI - Might slow owing to falling PMI
  • CPI - Higher at est. 3.2% driven by higher grain prices
  • Retail Sales - To be higher driven by higher retail sales price. But might erode household income.
Malaysia:
  • IPI - Continue to be strong following strong export numbers
  • 10th Malaysia Plan (10 June 2010)

Saturday, June 5, 2010

Hungary's U-Turn Statements: "Default" statements exaggerated & unwarranted


News Report:

June 4: Hungary in ‘Grave’ State, Official Says; Forint Falls



Just on 4th June, Peter Szijjarto, a spokesman for the prime minister said Hungary could face default and end up with a similar situation as Greece. But on the following day, the state secretary of Hungary said otherwise today and assured that the situation is consolidated and planned budget deficit can be met. The earlier statement could be an exaggeration as Hungary is nowhere near Greece, with debt/GDP and fiscal deficit at 79% and 4.5% respectively in 2010, as compared to Greece's 125% and 9% respectively. The numbers are also lower as compared to EU's 84% and 6.3% respectively.

In addition, Hungary proved that it could implement its budget cuts and managed to reduce its fiscal deficit from 9.3% in 2006 to only 4% in 2009. It is not even in the euro currency zone though a member of the European Union, thus it's not tied to the EUR currency, allowing more flexibility in its currency to boost its exports. Its exports include Audi cars, Nokia phones, Alcoa aluminium products etc.

So, what could have triggered the 'grave' statement made by the spokesman? Some commented that it's pure political rhetoric aiming to discredit the previous government as the new prime minister, Viktor Orban, had just taken office on 29 May 2010. The Orban government accused the previous government of lying and manipulating the government figures. Consequently, a panel was setup to analyze the true state of the economy. Results of the findings coupled with action plans to improve the state of its economy will be out this weekend. Economists at BNP, Moody, IMF and Nomura had commented that the 'default' statements are exaggerated or unwarranted.

Friday, June 4, 2010

Tech stocks: Fab Spending Heading for 117 Percent Growth in 2010


News Report:
Spending on global fab projects to hit US$36b in 2010, says SEMI

A case of demand outstripping supply owing to massive cuts in production capacity during the economic crisis. Good for tech stocks.

For related articles, click here.

Scomi Engineering (RM1.17) stocks might garner some interests, but news on project awards still crucial


News Report:
Scomi plans to bid for US$10b monorail projects in Brazil, India

I've been waiting for news on secured projects from Scomi Engineering since 2009 but it seems that the only news were on project bids but not even one secured project. Hopefully they'll be awarded some this year which could amount to billions of dollars from Mumbai and Brazil. Scomi was already shortlisted as one of two consortiums for the US$1.7 billion monorail project in Sao Paulo. Its stocks might see some interest on this piece of news but might die down again like what happened last year, unless there is some concrete news on them securing some projects.

For related info, click here.

Thursday, June 3, 2010

Interview with Notion Vtec's Chairman, Thoo Chow Fah: Homespun Engineering Firm Makes Global Inroads

Want to understand more about Notion Vtec? An interview with the company's executive chairman, Thoo Chow Fah, was done by BFM recently on 18th May 2010 which could help us to have a deeper understanding of the company.

Click here for the interview. Enjoy!!

Booming Semiconductor Industry: Another Record High Global Chip Sales


News Report:

Another record high sales:
Global chip sales recorded another historical high of US$23.6 billion in April 2010 without showing any signs of abating. The continuous uptrend in sales was mainly attributed to 3G wireless communications and consequent investment in infrastructure and recovery of demand from the enterprise, automotive, and industrial sectors. Asia Pacific region remained the growth driver in sales, supported by recovering demand from America. EU experienced the slowest growth in sales, likely due to its own economic problems. Having said that, EU remains a small portion of global demand at 13.1%. AsiaPac is the highest contributor to global sales at 54.5% followed by America (16.7%) and Japan (15.6%).

Outlook remains bright from higher equipment spending, scarce capacity and continued strong demand
Owing to lack of capital investments during the market downturn in 2008-09 in addition to capacity reduction, demand is outstripping supply during the economic recovery with utilization rate surging from 56% in 1Q09 to 94% in 1Q10. Consequently, we are seeing chip players around the world announcing massive capital investment plans this year to cater for the huge demand, as evidenced by announcements by chip manufacturers such as GlobalFoundries, TSMC, Samsung and Hynix on increasing capital spending by a few billion dollars to boost their capacities. This will further buoy semiconductor equipment spending. In addition, book-to-bill (semiconductor equipment) continued to stay above parity since Jul 09 which signals greater demand for semiconductor equipments and products.

With so many new products such as IPAD, Windows 7, Intel I3/I5/I7, 3G communication devices like IPhone, BBerry, Nokia and HTC coming into the market, the entire technology supply chain could benefit from this wave of new accessories. Tech research house such as Gartner is forecasting 20% growth in semiconductor sales.

Still upbeat on tech stocks:
Backed by all the above factors, outlook for tech companies remains upbeat and should benefit tech stocks like Unisem, MPI, Eng Teknologi, Notion, Dufu and JCY.

For earlier post on semiconductor, click here.

Wednesday, June 2, 2010

Out of the blue, a slew of positive news

From Bloomberg:


Euro Likely to Survive Debt Crisis, Stiglitz Says






SC amends unit trust fund guidelines



Good news for unit trust buyers but not enough :p Hopefully there will be more liberalization in the unit trusts industry with foreign fund management companies such as Schroders, Aberdeen, Allianz, Deutsche, Fortis, Fidelity, Fullerton etc etc allowed to sell their funds here in Malaysia instead of going through the local banks as feeder funds. In addition, Malaysia currently has very limited choices of funds to choose from as most are regional funds such as Asia, Global, Emerging Markets and BRIC, unlike Singapore or Hong Kong which have a diversity of single country/sector funds such as Russia, Brazil, Vietnam or technology funds to choose from. Should there be more leeway for foreign unit trusts coming into Malaysia, it'll be interesting for Malaysian investors as we could invest in places which are not accessible to us at the moment. Malaysia could also benefit from greater participation of foreign investors in Malaysia's capital markets. However, I guess Malaysia is still too protective of the local unit trusts players at this moment and might not see this coming in the near future.

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