14 theSun | WEDNESDAY MAY 6 2009

KLCI 1,008.87  0.49

T Nikkei CLOSED
business STI 2,074.35 S
45.64 TSEC 6,379.94 S
49.54
Hang Seng 16,430.08 S
49.03 KOSPI CLOSED
SCI 2,567.34  7.43
S S&P/ASX200 3,890.40  7.40
S

market summary MAY 5, 2009

INDICES CHANGE
FBMEMAS 6,683.73 -0.68
Prices mixed as investors locked in profits COMPOSITE
INDUSTRIAL
1,008.87
2,271.73
-0.49
-5.91
SHARE prices on Bursa Malaysia increased 49.2 points to 7,778.04, 303 while 252 counters were CONSUMER PROD 303.16 -0.47
closed mixed yesterday as inves- the Plantation Index declined 18.16 unchanged, 348 untraded and 36 INDUSTRIAL PROD 76.63 +0.54
CONSTRUCTION 197.02 +1.46
tors locked in profits after recent points to 5,041.99 and the Indus- others suspended. TRADING SERVICES 135.59 -0.76
gains, dealers said. trial Index dropped 5.91 points to Topping the actives list, KNM FINANCE 7,778.04 +49.20
The benchmark KLCI fell 0.49 of 2,271.73. rose 4.0 sen to 68.5 sen, Poh Kong PROPERTIES 635.21 +5.09
a point to close the day at 1,008.87, Of the FTSE-BM series, the fell 4.0 sen to 41.5 sen and Talam PLANTATIONS 5,041.99 -18.16
dragged down by losses, led by FBMEmas declined 0.68 of a point Corp was flat at 10.5 sen. MINING 279.65 +6.08
PLUS Expressways Bhd. to 6,683.73, the FBM30 went down Of the heavyweights, Sime FBMSHA 7,008.23 -5.99
The key index had opened 10.77 22.37 points to 6,445.41, the FBM- Darby shed 5.0 sen to RM6.65, FBM2BRD 4,315.27 -10.86
points higher at 1,020.13 in the 2BRD shed 10.86 points to 4,315.27 Tenaga was unchanged at RM7.35, TECHNOLOGY 13.58 UNCH
morning. The CI moved between and the FBM-MDQ dropped 29.06 Maybank rose 12 sen to RM4.58 TURNOVER VALUE
1,001.37 and 1,021.55 yesterday. points to 3,543.96. and Bumiputra-Commerce was 10 1.897 bil RM 1.806 bil
At close, the Finance Index Gainers led losers by 335 to sen lower at RM8.45. – Bernama

Ramunia takeover seen

positive for Sime Darby
KUALA LUMPUR: The proposed
acquisition of Ramunia Holdings
Bhd by conglomerate Sime Darby
Bhd through wholly-owned Sime
Darby Engineering Sdn Bhd (SDE)
is likely have a positive impact on
its earnings, analysts said.
However, there will be some
lower margins to SDE in the near
term as it cleans up Ramunia’s
operations, said ECM Libra In-
vestment Research in a research
note yesterday.
Ramunia currently has a heavy
gross gearing of RM360.6 million,
gross cash of RM38.8 million and
is likely to run out of cash in one-
and-half year.
Sime Darby’s share price
dropped 5 sen yesterday to close
at RM6.65 while Ramunia was
suspended on Monday with its
last traded price at 63 sen. The
Ramunia shares are suspended
until tomorrow.
Sime Darby, through SDE, an-
nounced on Monday it has offered
to buy Ramunia for a total provi-
sional purchase consideration of
RM232 million.
The purchase consideration
will be satisfied by RM46.2 million
cash and RM185.8 million equiva-
lent value of new ordinary shares,
representing 20% of the ordinary
share of the enlarged SDE.
ECM Libra said the deal seemed
like a good one for Sime Darby, es-
pecially if compared to the RM3.2
billion reversed takeover (RTO)
deal with Malaysia Marine and
Heavy Engineering Sdn Bhd that
was scrapped last year.
“We might see in the near term
some lower margins to SDE as
they clean up Ramunia’s opera-
tions but this we see would only
have minimal impact to Sime
Darby as a group,” it said.
SDE is effectively paying RM1.4
million per acre for Ramunia’s 170-
acre yard space which is strategi-
cally located next to SDE’s yard.
“The deal will balloon SDE’s
yard space to 284 acres from 114
acres, enough to execute multiple
major fabrication job simultane-
ously,” ECM Libra said.
On the earnings impact, Kenan-
ga Research said it is expected to be
neutral for near term but positive
in medium term where SDE would
have ample room to expand its or-
der book as Ramunia’s yard space
is still under underutilised.
“We understand that SDE has
an outstanding order book of RM2
billion with its yard already fully
utilised,” the research house said,
adding that there could potentially
be a RTO from SDE to assume
Ramunia’s listing status.
“A RTO would save SDE from
the initial public offering proce-
dures and allow Sime Darby to
unlock its investments in SDE,”
said Kenanga Research.
OSK Research said Ramunia’s
assets represented a strategic
fit for SDE, saying that it will be
positive for Sime Darby if the offer
is accepted.
“However, given the relatively
low price coupled with partial
satisfaction by shares in unlisted
SDE rather than Sime Darby, we
believe Ramunia may not accept
the offer if it has a choice,” it said
in a research note yesterday.
– Bernama
SDE can bid for
bigger jobs with
Ramunia buy
KUALA LUMPUR: The RM232
million acquisition of Ramunia
Holdings Bhd group will give Sime
Darby Energy the muscle it needs
to expand further especially in
bidding for international contracts,
its managing director Datuk Mohd
Shukri Baharom said yesterday.
SDE, an indirect wholly-owned
unit of Sime Darby Bhd, currently
faces capacity constraints.
He said that SDE lost out the op-
portunity to bid for contracts worth
RM20 billion over the last three years
due to a lack of yard capacity.
The proposed acquisition will
increase its yard capacity to 284
acres from 114 acres currently, he
told a press conference.
It will also make SDE as the
largest fabricator in Malaysia with
the capacity rising to 52,700 metric
tonnes from 107,00 metric tonnes.
SDE’s order book is currently at
RM1.1 billion which will last till the
end of 2010. – Bernama

ACCCIM wants cuts
in tax, power rate
KUALA LUMPUR: Most small and
medium enterprises (SMEs) hope that
the government will reduce the cor-
porate tax and electricity tariff to help
them overcome the current economic
crisis.
According to the Associated Chi-
nese Chambers of Commerce and
Industry of Malaysia’s (ACCCIM) 2009
SMEs Survey Report, the SMEs believed
the two measures would assist them
more than the two economic stimulus
packages announced last November
and March.
ACCCIM president Tan Sri William
Cheng said the SMEs hoped for a 1%
tax reduction every year, or even 2% if
the government could afford it.
“If the government cannot afford it,
we hope there will be temporary reduc-
tion for a two-year period. The SMEs
can use the savings as working capital,”
he told reporters after presenting the
2009 SMEs Survey Report yesterday.
The report said most SMEs felt that
the current economic crisis had a greater
impact on their businesses compared
with the 1997/98 financial crisis.
“Most of the SMEs have been facing
problems in collecting payments from
customers since last September, ac-
cording to the report.
“Although the country’s fuel
prices had gone down from the high
of RM2.70, the SMEs had not been
able to reduce the prices due to the
chain effect caused by the increase in
electricity tariff and previous increase
in fuel prices,” the report said.
Cheng said the ACCCIM would also
propose that the government reduce
electricity tariff to the level prior to the
26% increase in June last year.
Citing an example, Cheng said, the
government had given a 40% subsidy
to the manufacturing sector during the
crisis in 1985, and gradually adjusted
the tariff after the economy recovered.
“We hope to go back to the rate before
June last year. Tenaga Nasional Bhd
must find ways to reduce their costs.”
According to the survey report, the
SMEs said bank loans and facilities
would help them resolve their liquidity
problems.
However, due to the economic
crisis, 40% of the respondents said
banks had reduced their approved loan
amount – 37% said banks had delayed
the disbursement of loan, while 29%
had their applications rejected based
on headquarters’ instruction.
Cheng said while times were bad,
retrenchments would be the last
measure to be taken by SMEs in order
to improve cash flow. – Bernama
ABM clarifies
sales and uptake
of ASM units
KUALA LUMPUR: The Association of Banks in
Malaysia (ABM) yesterday issued a statement
clarifying the availability and uptake of the
Amanah Saham Malaysia (ASM) units, follow-
ing allegations that there had been a withhold-
ing in the sale of the units to members of the
public including Malaysian Indians.
ABM said it had collated some feedback
from its member banks involved in the sale
Tiger of the ASM units.
eager to It said as the allocation, control, sale and
distribution of all ASM units were made via an
prowl on on-line and real time system under Amanah
Bethpage Saham Nasional Bhd, the bank branches con-
Black cerned would be in no position to block-book
ASM units for certain groups or individuals at
pg 27 the expense of the queuing public as alleged
in the news reports.
It said the on-line system made it impos-
sible for banks and employees to “reserve”
units for certain groups or individuals.
The banks involved namely RHB Bank,
Maybank and CIMB Bank acted merely as
distribution agents, it said.
ABM said the banks have also taken all
relevant steps to ensure the distribution of
the ASM units are conducted on a first come
first served basis professionally, smoothly and
in accordance with policies and procedures.
It said it viewed the allegations seriously
and is encouraging the public to contact ABM
through its ABMConnect directly in strictest
confidence with further and better particulars
of any personal experience. – Bernama