MARKET UPDATES :
- KUALA LUMPUR: HSBC Global Research expects Malaysia’s revised fiscal target of 3.2 per cent from the original target of 3.0 per cent, for this year to be achieved.The research house, however, said it would require reduced operational spending and efficient implementation of the proposed economic measures.“For 2015, the government assumes that crude oil would average US$55 per barrel versus an earlier assumption of US$110 per barrel and the lower oil prices are likely to reduce fiscal revenues,” it said in a note today.The research house said to partially offset the shortfall, the government would encourage more companies to register for the six per cent Goods and Services Tax (GST) to be implemented on April 1.
- KUALA LUMPUR: Ivory Properties Group Bhd (Ivory) has entered into a sale and purchase agreement with Aspen Vision Development Sdn Bhd to dispose off its entire 49 per cent stake in Aspen Vision Land Sdn Bhd (AVL) for RM55 million. In a filing to Bursa Malaysia, Ivory said the divestment would comprise 1.96 million ordinary shares of RM1 each and 177,380 Redeemable Preference Shares (RPS) of RM1.00 each at an issue price of RM100.00 per RPS.“The divestment will enable the group to unlock the value of its investment immediately as management opted to focus on projects located on the island of Penang and other states that can generate returns over a shorter gestation period,” it said.Payment for the disposal price would be satisfied in three instalments.
- SUNWAY Bhd’s order book is set to swell to RM3.3 billion after it signed the letter of acceptance issued by SJIC Bina Sdn Bhd for the proposed design, construction, testing and completion of the Coastal Highway Southern Link in Johor for RM169.9 million.In its research note, Hong Leong Investment Bank (HLIB) said it is positive with the project as it will further increase the group’s outstanding order book and implies 2.26 times cover over Sunway’s 2013 construction revenue.“The Coastal Highway Southern Link is expected to benefit Sunway Iskandar, a major township by Sunway, Khazanah Nasional Bhd and Iskandar Investment Bhd, and other developments in Medini Iskandar,” HLIB told investors.
- The ringgit ended lower against the US dollar yesterday in line with most other emerging currencies on growing concerns over the political tension in Greece, dealers said.At 5pm, the ringgit was quoted at 3.4970/5000 against the greenback compared to 3.4960/4980 on Monday.A dealer said China’s yuan, howeve, rose after the government announced that it would ease restrictions on currency trading by banks from January 1.
- The ringgit was traded mixed against other major currencies.
- It depreciated against the yen to 2.9256/9289 from 2.9027/9053 on Monday but strengthened against the pound to 5.4340/4397 from 5.4422/4474.
STOCK RECOMMENDATION :
- BUY TITIJAYA LAND ABOVE 1.905 TARGET 1.940 1.980 SL 1.865