Media Prima posts record RM254.4m net profit

Media Prima Bhd's (MPB) (4502) profit after tax and minority interest (Patami) reached a new high of RM254.4 million, or a jump of 31 per cent, for the year ended December 31 2010, the highest since its inception in 2003. .
.
.

The group has recommended a final single-tier dividend of 6 sen per ordinary share for the year under review.

Read more: Media Prima posts record RM254.4m net profit

Petronas Chem tipped to post strong Q3 results

Analysts have tipped strong third quarter financial results for Petronas Chemicals Group Bhd (PCG) (5183), one of Southeast Asia's largest petrochemicals producer, as it saw higher demand and margins for its products.

The subsidiary of national oil firm Petroliam Nasional Bhd may show a net profit of RM817 million, a 62 per cent increase from the previous quarter's RM510 million.

This was estimated by Wong Chew Hann, who tracks the stock at Maybank Investment Bank Research (MIB).

PCG, which was listed on Bursa Malaysia last November, is expected to release its maiden quarterly financial results this week.

"The drivers (for third quarter profit) are higher utilisation rates (more than 86 per cent), underpinned by strong global demand and higher product margins," Wong said in a report recently.

Product margins, which are the difference between the selling price of the product and raw material costs, have risen by 15 per cent from the second quarter.

Wong noted that product prices were higher due to a global commodity run, while raw material prices were fairly stable.

A fire that broke out at the group's aromatics plant in Kertih, Terengganu, on Christmas eve isn't likely to have hurt its results much, she said, adding that the 18-day plant closure may have resulted in a total economic loss of about RM6 million.

PCG's fourth quarter results may look even better as margins continue to rise on the back of higher commodity prices, she added.

Wong sees PCG making a net profit of RM3.2 billion for the full financial year (FY) ending March 31 2011 compared with RM2.2 billion in the previous year.

She maintained a "buy" recommendation on the stock with a target price of RM6.70. The stock last traded at RM6.21.

Credit Suisse, which initiated coverage on the stock last week, noted that its forecast for PCG's average annual growth rate for earnings, at 18.1 per cent for FY11 to FY13, is above the expected growth of PCG's regional peers, which stood at between 0.6 per cent and 8.5 per cent.

"Its earnings growth is expected to be driven by improving efficiency during FY11 to FY12, while the recovery of the ethylene cycle is expected to drive its earnings beyond 2012," the foreign research house said.

It rated the stock an "outperform" and pegged it at a RM7.50 target.

PCG is the largest petrochemical player in the Southeast Asian markets by market capitalisation and earnings.

Its initial public offering, which raised RM12.8 billion, was Southeast Asia's largest ever.

Read more: Petronas Chem tipped to post strong Q3 results

February 24, 2011 06:34 ET (11:34 GMT)

KUALA LUMPUR (Dow Jones)--Petronas Chemicals Group Bhd. (5183.KU) Thursday said its earnings in the third quarter more than doubled from a year earlier due to higher petrochemical product prices and following the acquisition of a new subsidiary.

The unit of national oil company Petroliam Nasional Bhd. said in a stock exchange filing that its net profit for the three months ended Dec. 31 rose to MYR874 million from MYR337 million. Revenue grew to MYR3.90 billion from MYR2.99 billion.

Petronas Chemicals said the better earnings were a result of petrochemical product price hikes which outstripped the increase in the group's feedstock costs. The growth was also supported by contributions from the recently acquired Polyethylene Malaysia as a wholly-owned subsidiary from September 2010, it added.

"The board expects the results of our operations for the financial year ending 31 March 2011 to be satisfactory," the company said.

For the nine-month period, net profit rose 57% to MYR2.06 billion from MYR1.32 billion a year earlier. The company said overall spreads between product prices and feedstock prices remained robust. "This resulted in operating profit of MYR2.5 billion, higher by MYR501 million, despite the inclusion of once-off negative goodwill of MYR175 million on acquisition of OPTIMAL Glycols (Malaysia) Sdn. Bhd. in the corresponding period," Petronas Chemicals said.

On a recurring income basis, the company said it registered an earnings before interest, tax, depreciation and amortization of MYR3.2 billion, compared to MYR2.3 billion a year earlier.

Revenue for the nine-month period increased to MYR10.23 billion from MYR8.21 billion.

Petronas Chemicals made its debut on the Malaysian stock exchange in November. The company raised MYR12.8 billion ($4.18 billion) through its initial public offering, making it the biggest ever IPO in Southeast Asia.

- By K.P. Lee, Dow Jones Newswires; (603) 2026 1233; kwan-por.lee@dowjones.com

Click here to go to Dow Jones NewsPlus, a web front page of today's most important business and market news, analysis and commentary: http://www.djnewsplus.com/access/al?rnd=9DfGVtg1wsFEbYztWgizyQ%3D%3D. You can use this link on the day this article is published and the following day.

(END) Dow Jones Newswires
February 24, 2011 06:34 ET (11:34 GMT)
Copyright (c) 2011 Dow Jones & Company, Inc.

Libya unrest rattles markets; oil prices jump

Violence in Libya sends oil prices spiking and stocks falling; oil production threatened

NEW YORK (AP) -- Stocks fell sharply and oil prices spiked to their highest level in two years Tuesday as the unrest in Libya worsened.

Oil prices jumped 5 percent to $95 a barrel Tuesday. The fight between protesters and forces loyal to the Libyan leader Moammar Gadhafi threatens the country's oil production. Libya is the world's 18th largest oil producer, accounting for 2 percent of global daily output. It also sits atop the largest oil reserves in Africa.

The Dow Jones industrial average sank 176 points, or 1.4 percent, to 12,215 in afternoon trading. Bond prices rose, sending their yields lower, as investors sought safety.

At least 250 people have been killed in Libya so far, according to the U.N. Office of the High Commissioner for Human Rights. Key government officials have resigned and air force pilots have defected following a crackdown on protests in Tripoli, Libya's capital.

Among traders, the main worry is that unrest will spread to other oil-rich countries in the Middle East and North Africa. Protests toppled longtime dictators in Libya's neighbors Tunisia and Egypt in the past month, and protests are continuing in Yemen and Bahrain.

Jim Ritterbusch, an energy analyst, said a "fear premium" has added about $10 a barrel to oil prices in recent days. Prices could tumble once the region settles down, he said.

Oil producers rose with the prospect of a drop in oil supply. Chevron Corp. gained 2.5 percent, the largest gain among the 30 large companies that make up the Dow Jones industrial average. Exxon Mobil Corp. rose 1.5 percent.

Higher fuel costs hurt airline stocks. Delta Air Lines Inc., American Airlines parent AMR Corp., United Continental Holdings Inc. and US Airways Group Inc. all dropped by 6 percent or more.

Libya unrest rattles markets; oil prices jump

AmResearch raised MHB fair value 13 per cent to RM8.10

A breakout is imminent!! Choice done, timing??

Read : MHB, Petronas Dagangan buck sector trend

Stocks End Up; S&P 500 Doubles 2009 Low

Read more...

IGB Corp Bhd (1597) plans to sell The Gardens Mall

IGB Corp Bhd (1597)plans to sell The Gardens Mall, which has an indicative value of RM820 million, to its subsidiary KrisAssets Holdings Bhd, for cash as part of its ongoing streamlining scheme.

KrisAssets, its 75 per cent unit, essentially operates like a real estate investment trust, and the purchase will give it a new source of recurring income.

IGB entered into an agreement yesterday for KrisAssets to buy all of the shares in Mid Valley City Gardens Sdn Bhd (MVCG).

The purchase price will depend on the net tangible asset of MVCG for the fiscal year ended December 31 2010. The four-year-old The Gardens Mall has an indicative value of RM820 million.

KrisAssets now has two subsidiaries - Mid Valley City Sdn Bhd, which owns and operates the Mid Valley Megamall and Mid Valley Capital Sdn Bhd (MV Capital), which is the funding vehicle for the issuance of the RM400 million redeemable secured serial bonds in September 2004.
IGB said the proposed sale will enable the group to streamline its property holdings whereby its retail properties will be consolidated and held under KrisAssets. It would also allow the group to achieve greater operational efficiency and synergistic benefits.

IGB will use the sale proceeds for new investment opportunities.

"IGB will continue to derive benefits from the future growth of The Gardens Mall via KrisAssets," it said.

KrisAssets said the deal would enable it to achieve the required scale to enhance its competitiveness in the retail sector.

"There would be potential synergistic benefits arising from the proposed acquisition, which include, amongst others, cost savings, operational streamlining and collaborative marketing strategies in the Mid Valley City as a whole," KrisAssets said.

Trading in shares of both IGB and KrisAssets have been suspended since February 11 pending the announcement.

Read more: IGB to sell The Gardens Mall to subsidiary

Further to Listing's Circular No. L/Q : 60163 of 2011, kindly be advised that trading in IGB-CD will resume with effect from 9.00 a.m., Wednesday, 16 February 2011.

16.02.11 On Resumption of Trade >> BIG drop!!

Stocks Close Higher After Mubarak Departure

Stocks ended higher Friday, reaching fresh multi-year highs, after Egyptian President Hosni Mubarak resigned in response to demonstrations against his rule, helping lift investor sentiment and uncertainties surrounding the country.



In Egypt, President Hosni Mubarak resigned and handed over control of the country to the military, ending 30-years of rule, announced Vice President Omar Suleiman.

The president "has decided to give up his position as president of the republic," Suleiman said on national TV and added that the president had charged the higher military council to run affairs in the "tough circumstances that the country is passing through."

After refusing to step down until the September elections, Mubarak finally bowed to a historic 18-day wave of pro-democracy demonstrations by hundreds of thousands.


Stocks Close Higher After Mubarak Departure

Mubarak assets frozen by Swiss government

WASHINGTON (CNNMoney) -- Switzerland's government moved Friday to freeze any assets in the country's banks that might belong to former Egyptian President Hosni Mubarak or his family, the Swiss Federal Department of Foreign Affairs said Friday.

Mubarak ended his 30-year reign Friday, stepping down following 18 days of protests against his rule. (CNN.com - Egypt's Mubarak resigns after 30-year rule)
An official statement from the Swiss Federal Department of Foreign Affairs said the Swiss cabinet had frozen all funds belong to Mubarak or "his circles."

"The [government] intends in doing so to avoid any risk of embezzlement of Egyptian state property," the statement read. "At the same time, the cabinet calls on responsible authorities in Egypt to comply with the justified demands of the Egyptian people in a quick, credible, participatory and transparent manner."


Read more...

AirAsia defers delivery of 10 Airbus A320 from 2012 to 2015, opts for fuel-efficient planes

KUALA LUMPUR: AIRASIA BHD [] has signed an agreement with Airbus S.A.S to revise the delivery dates of 10 Airbus A320 aircraft from 2012 to 2015.

It said on Friday, Feb 11 the move was to allow some flexibility to switch from its current order of the classic A320 to a new generation A320 aircraft which is more fuel efficient when such aircraft come into production in the near future.

With the deferment, the delivery of 24 aircraft in 2012 would be reduced to 14 aircraft, while the number of deliveries in 2015 will be increased from nine aircraft to 19 aircraft, it said.

“No penalties are payable by AirAsia in revising the delivery schedule of the 2012 aircraft,” it said, adding the deferral would also have a positive impact from the balance sheet perspective, as it would help to maintain the company's net gearing position to below two.

AirAsia said it would take delivery of 14 aircraft in 2012, which would enable the company to support the growth of its joint ventures in the Philippines as well as Vietnam while continuing to support existing affiliate airlines.

“On the back of AirAsia very encouraging financial results in the last quarter, the focus of the company is to consolidate its growth while creating growth in other regions.

“The deferment is expected to create a greater optimisation of aircraft utilisation in tandem with the growth in passenger capacity,” it said.

Read more...

AirAsia: Buy, target price RM3.10

AmResearch kept its "buy" call on budget airline AirAsia Bhd's (5099)stock, but said its fair value of RM3.10 a share is under a review with an upward bias.

The research firm noted recent newswire reports that AirAsia plans to list its Thai unit, Thai AirAsia, within the third quarter of this year.

Air Asia has also been targeting to list its Indonesian associate, Indonesia AirAsia (IAA) , this year.

"We believe AirAsia could be looking to raise between US$300 million and US$500 million (RM912 million and RM1.52 billion) for each associate from the respective listings," the research house said in a note to clients yesterday.

The listing of its associate in Indonesia is facing "minor hur-dles" as a new ruling by the In-donesian government requires airlines in that country to have on-balance sheet financing of at least five aircraft by 2012.

"Currently, all aircraft operated by IAA are on operating leases from AirAsia. What this means is that the transfer of aircraft debt to IAA could be accelerated to meet Indonesian regulation deadline," AmResearch said.

AirAsia remained the research firm's top pick in the sector. It last traded at RM2.70.

AmResearch said key catalysts for the stock in the near-term could be a strong fourth quarter 2010 results (to be announced next month), a stronger ringgit and the listing of its associates, which could potentially add another 30 sen to 50 sen to its valuation.

It also noted that the listings would create standalone aircraft financing for IAA and Thai AirAsia, reducing the strain on AirAsia's balance sheet.

Read more...

KL stock market takes a beating

The Malaysian stock market fell by more than 2 per cent yesterday, its biggest decline since October 2008, mainly driven by heavy selling from foreign funds.

The benchmark FTSE Bursa Malaysia KLCI index closed 2.09 per cent lower at 1,503.99 points yesterday.

"This is the real McCoy. Foreign funds are flowing out of the region in a big way since last week. It's moving out from the emerging markets to the developed markets," Jupiter Securities head of research Pong Teng Siew said when contacted by Business Times yesterday.

Foreign funds sold more shares than they bought this week, based on preliminary data provided by Bursa Malaysia.

So far this week, foreign funds were net sellers of almost RM1.2 billion as they sold RM3.4 billion worth of shares while buying only RM2.23 billion.

"I think this is just a continuation of profit-taking activities by foreign funds which started early this year. Let's not forget that a lot of these markets gained substantially last year," said Chris Eng, head of research of OSK Research Sdn Bhd.

Bursa Malaysia was one of the region's top performers last year, having gained 19.3 per cent to 1,518.91. Other top performers in 2010 were the Philippines (+37 per cent), Indonesia (+46 per cent), Thailand (+40 per cent) and South Korea (+21 per cent).

Nevertheless, Malaysia still outperformed other regional bourses like Singapore (+10 per cent), Taiwan (+9.6 per cent), Hong Kong (+5 per cent).

However, most of the regional stock markets this year have taken a dip. For example, the FBM KLCI has declined by 0.98 per cent so far this year, while stock markets in Indonesia, Thailand, the Philippines, India have declined by more than 8 per cent year-to-date.

Most Asian markets closed lower yesterday, led by the Philippines, Hong Kong, Taiwan, South Korea, Thailand, Singapore and Indonesia as the bourses dropped between 2.73 per cent and 1.28 per cent.

"I think one of their main concerns and beliefs is that lower-income emerging markets as well as middle-income emerging markets may not be able to cope that well with inflationary pressures as compared to the developed markets," said Pong.

Despite the bearish sentiments, analysts are reluctant to conclude that the stock market is now on a bear run.

Read more: KL stock market takes a beating

DRB-HICOM, VW to assemble Passat in November

PEKAN: DRB-HICOM and Volkswagen AG will start production in November with the assembly of Volkswagen Passat sedan 1.8 litre at the automotive complex in Pekan.

International Trade and Industry Minister Datuk Seri Mustapa Mohamed described it as an important development especially for the country's automotive industry.

“This is the result of a collaboration between DRB-HICOM with Volkswagen sealed in December last year. There are now 20 personnel from VW AG's headquarters here to discuss and finalise the production operations expected to take place this November,'' he told reporters after a tour of DRB-HICOM Automotive Complex here yesterday.

A collaboration and licence agreement with Volkswagen worth RM1bil was signed last year following a memorandum of understanding by both parties in August to study the feasibility of locally producing Volkswagen passenger cars in Malaysia.

DRB-HICOM and Volkswagen have agreed to share costs in a ratio of 70% to 30%, respectively.

The Pekan plant is expected to manufacture between 40,000 to 50,000 Volkswagen cars annually.

DRB-HICOM group chief financial officer Datuk Lukman Ibrahim, in his speech earlier, said the recent collaboration with Volkswagen would witness the assembly of selected Volkswagen cars in the plant.

“With the CKD (completely knocked down) plan in place, both parties have agreed to systematically expand the Volkswagen production as well as its localisation plan.

“This will not only create new job opportunities, in particular for Pekan but also stimulate our local automotive manufacturing industry via introduction of better technology, quality products and standards,'' he added.

He also said the deal was a private-funding initiative, in line with the Government's call to boost the country's economy and for that, Volkswagen would invest RM300mil at each stage of the joint venture.

Read more

Newbie is 90% accurate!

10 Feb 11, 04:01 PM  newbie: let KLCI hoover around 1500 level first and then we shall see whether can it be broken

10 Feb 11, 04:01 PM newbie: as i have said earlier local funds only allocated 30% to support at 1500 level

10 Feb 11, 04:01 PM newbie: that mean they knew 1500 could be broken
10 Feb 11, 04:02 PM newbie: and another 30% funds allocation support at 1480
10 Feb 11, 04:02 PM newbie: and follow by 50% funds allocation at 1450

Taken from Bursa Chat

NB: At today's close,1504,  KLCI has retraced 50% fibo!

MRCB 4Q earnings surge 230pct to RM41.5m

KUALA LUMPUR: MALAYSIAN RESOURCES CORP [] Bhd’s earnings surged 230% to RM41.50 million for the fourth quarter ended Dec 31, 2010 from RM12.41 million a year ago, boosted by improved profit margin and property development projects.

The company said on Wednesday, Feb 9 revenue rose 53.7% to RM433.12 million from RM281.67 million. It proposed a dividend of 1.5 sen per share.

For the financial year ended Dec 31, 2010, its earnings jumped 94% to RM67.27 million from RM34.62 million. Revenue rose to RM1.967 billion from RM921.62 million.

Its cash and cash equivalents rose to RM487.27 million from RM232.57 million.

“The commendable result for the current quarter was mainly contributed by improved profit margin coupled with advanced stage of activities of its engineering and CONSTRUCTION [] ongoing works and property development projects at Kuala Lumpur Sentral,” it said.

MRCB said the higher operational margin was achieved on the back of crystallization of its ongoing value engineering and efficient project supervision and cost saving initiatives.

Commenting on the FY10 results, it said the higher revenue was contributed mainly from its construction and engineering division with ongoing work progress reaching maturity stage at relatively higher percentage of recognition compared to previous year.

The same impact was also contributed by the group’s ongoing property development projects at Kuala Lumpur Sentral.

Read more...

MRCB (TP RM2.58 – TRADING BUY) FY10 Results Review: Back on The Fast Lane
MRCB’s FY10 net profit was 49% and 37% above our and consensus estimates, largely due to stronger earnings recognition from the E&C and property divisions, as well as improved margins. The better than expected results were also due to over-reacting on the part of analysts in cutting earnings estimates following its disappointing 9MFY10 results. We have raised our net profit forecast for FY11 by only 11% and introduce our FY12 forecast. As we are turning more optimistic on the property outlook for KL Sentral, we raise our land value assumption from RM1280psf to RM1640psf, which was based on the last transacted price in Jan 2008. Accordingly, we move up our RNAV fair value for MRCB from RM2.05 to RM2.58. With the sizeable upside, we upgrade our call from Neutral to Trading Buy at a TP of RM2.58. - OSK

HDBSVR raises MRCB TP to RM3.15
Written by theedgemalaysia.com Thursday, 10 February 2011 08:41
KUALA LUMPUR: Hwang DBS Vickers Research raised the target price for MALAYSIAN RESOURCES CORP [] Bhd (MRCB) to RM3.15 after its earnings were away above its and consensus expectations.

“BUY, raised TP of RM3.15. We continue to like MRCB as a strong 10MP and election proxy, and raised our TP to reflect the higher earnings. The strong 4Q10 result shows earnings delivery is improving and execution risk is well contained,” it said on Thursday, Feb 10.
HDBSVR said MRCB’s 4Q10 net profit of RM42 million (up 2.8 times on-quarter; and up 3.3 times on-year) takes FY10 net profit to RM67 million, “way above our and consensus expectations”.
This was largely due to a turnaround in CONSTRUCTION [] profits, which swung from a RM3 million loss in 3Q10 to RM39 million EBIT in 4Q10, as well as strong property billings largely from on-going works at Lot G.
HDBSVR raised FY11-FY12 EPS by 3%-12% after imputing larger new order wins of RM700 million to RM800 million versus RM600 million previously, while also taking into account timing of recognition of existing contracts which are largely on track.
“There is room to raise our forecasts further as we had not included some key projects such as Penang Sentral (RM2 billion GDV), Batu Feringghi (RM184 million GDV) and Kia Peng Condo (RM260 million GDV), and our assumed margins for both construction and property are conservative,” it said.

PJD plans RM1.7b projects by Q3

PJ Development Holdings Bhd (PJD) (1945) aims to ride on the positive economic data by launching four projects worth about RM1.7 billion by third quarter of this year.

Chief operating officer Lim Lian Seng said the projects are located in Sri Hartamas and Cheras in Kuala Lumpur, Butterworth in Penang, and Kuantan in Pahang.

"There is a surge in demand for new residential, commercial and retail properties in those areas. We expect the products to sell fast under the current market conditions," Lim told Business Times.

This would be the first round of major projects it is launching since 2009, he added.

PJD had spent the last two years working on new plans after the economic crisis in 2008.
"We incorporated new designs and elements as well as reduced the sizes for certain products in some of our approved projects to make them more affordable and appealing to buyers," he said.

In the high-profile locale of Sri Hartamas, PJD will launch Duta Kingsbury, near the high-end commercial hubs of Mont'Kiara Solaris and Dutamas Solaris.

Duta Kingsbury is one of few projects which PJD deferred after the crisis. The project was previously to feature some 200 condominiums of more than 3,000 sq ft and villas.

Lim said it will now comprise more than 300 units of condominiums, ranging from 1,400 sq ft and priced above RM700,000. The villas have been scrapped.

In Cheras, PJD will launch a mixed-integrated development consisting of three blocks of serviced apartments, two shop-office towers with entertainment areas, retail complexes and restaurants.

Lim expects the project to be the new iconic landmark for Cheras.

In Butterworth, PJD will launch phase four of its Harbour Place project, comprising over 300 units of serviced apartments with priced from RM300,000.

In Sungai Karang, Kuantan, the company will launch over 200 units of seaside serviced apartments, close to the Swiss-Garden Resort & Spa Kuantan. Each unit will be priced from RM200,000.

Read more: PJD plans RM1.7b projects by Q3

Iris to venture into industrialised building system

KUALA LUMPUR: Iris Corp Bhd is venturing into industrialised building system (IBS) via a joint venture with Koto Malaysia Sdn Bhd and Ambitech Sdn Bhd.

Iris said on Monday, Feb 7 it planned to develop the Koto IBS for mass building projects in Peninsular Malaysia.

“Koto IBS is an alternative way to mass manufacture energy efficient housing, commercial buildings, high-rises and affordable housing. The Koto IBS is a fully integrated system – from the foundation, walls of all types, to ceilings, suspended ceilings, roofing, columns, beams and lightweight lintel beams,” it said.

Iris said the shareholdings in the JV would see it holding a 60% stake, Koto (30%) and Ambitech (10%).
Read more...

08.02.11 The day after

09.02.11

Stocks Gain, Posting Best Week in 2 Months

CIMB bullish on Asian equities

CIMB Group is bullish on Asian equities for the first half of 2011, given the surging liquidity which is driving equity re-ratings in this part of the world.

In a report yesterday, the group said the economic outlook for Asia has improved compared to the beginning of last year.

This is backed by the continuing quantitative easing (QE) programme in the US that should help avert the world's biggest economy from dipping into a recession again and from spiraling into a deflationary environment.

Under the QE, the Federal Reserve would print fresh money and buy bonds from US banks, which, in turn, would have more funds to lend. This was expected to spur economic activity.

CIMB (1023) said Asian economies' recent performance has shown that they have decoupled from the West. The economies have remained resilient and are registering decent growth.

The move by Asian central banks to raise interest rates throughout 2010 was also a factor.

CIMB said as a result of the widening interest rate differential favouring Asia, funds globally are flowing into the region. Notably, the MSCI World Equities index rose 3 per cent year-to-November 2010.

Asean markets such as Thailand, Indonesia, the Philippines, Malaysia and Singapore were the strong performers. The region's strong currencies also contributed to the robust performance.

CIMB said its bullish view on Asian equities in the first six months of this year was based on five factors.

The anticipation of quantitative easing activity should help drive positive sentiment in global equities, including Asia, while the widening interest rate differential in the region is attracting funds looking for higher returns.

Global equities are also cheap, with widened earnings yields between bond yields and US treasury yields currently at all-time lows, similar to the levels of the recession in 1929-1933.

CIMB said with the market anticipating further money printing, the yields are likely to stay low for longer.

Another factor contributing to the positive view is that emerging economies are recovering faster than the US, Europe and Japan.
CIMB said industrial production in emerging markets is growing faster than these developed countries, and this will support liquidity flows into the emerging markets.

It also believes that 2011 will be similar to 2006, being the second year of the present interest rate upcycle in Asia.

As long as interest rates are not too restrictive to suffocate economic and earnings growth, stock markets can rally, CIMB said.
Read more...