Thursday, September 30, 2010

Glomac eyes RM5b GDV in next 5 years Read more: Glomac eyes RM5b GDV in next 5 years


Glomac Bhd expects to generate RM5 billion in gross development value (GDV) for its 14 to 16 projects in the next five to six years, said its Chief Executive Officer Datuk Fateh Iskandar Tan Sri Mohamed Mansor.

"All the projects will be run in Greater Kuala Lumpur except one in Johor," he told reporters after the company's 26th annual general meeting here today.

Of the amount, he said its township project was expected to generate RM1 billion in GDV while the rest will come from its commercial buildings.

Glomac has a landbank of around 1,000 hectares in the Klang Valley presently.


On the government's Economic Transformation Programme (ETP), Fateh Iskandar said the plan opened up opportunities for Glomac as well.

For the first time, the government engaged the private sector and stakeholders, and they could give their views in terms of promoting the property sector and the overall economic growth as well, he said.

Glomac which concentrates on its business in Malaysia currently also has investments in Bangkok, Thailand and Melbourne, Australia.

The company expects to see returns on these investment first before it moves further, Fateh Iskandar said.

For the first quarter financial period ended July 31, 2010, the company's revenue jumped 114 per cent to RM125.3 million from RM59.0 million in the same period last year. - Bernama


Sunday, September 26, 2010

Ringgit may breach 3.06 in 2 weeks

The ringgit temporarily broke to 3.08 level this week and is expected to remain strong next week.

"The market may hold up at this current level," a dealer said, adding that robust domestic demand and credit growth were expected to entice fresh funds from foreign investors.

RHB Bank forex dealer Badeeudin Mohd Abu Bakar said that the ringgit might breach the 3.06 mark against the greenback in about two weeks’ time, after hitting its strongest level since October 1997 at 3.0873.

The local unit rallied to new 13-year highs in four straight weeks amid speculation that rules would be further loosened to enable the local currency to be traded offshore.


Some analysts believe that changes in the foreign exchange regime seem like a step in the right direction in allowing the appreciation of the local currency.

Yesterday, the local unit ended higher at 3.0900/0930 against the US dollar compared to Thursday's closing of 3.0950/0980 after the local bourse managed to pare some of its earlier losses on bargain hunting activities.

Bloomberg reported that Barclays Capital Plc had raised its forecast for the local currency, predicting a 6.1 per cent appreciation over the next 12 months as foreigners plow more funds into the nation's assets.

FTSE Group, a global index provider, had also upgraded Malaysia to "advanced emerging market" status, a move that will attract as much as US$3 billion of new inflows to the local stock market, Bloomberg quoted Barclays as saying.

Early this week, trading of the ringgit began on a strong note before drawing back on Thursday, reflecting the strengthening of the dollar against other major currencies.

It, however recovered in late trading Friday to close at 3.0900/0930 compared with last week's closing of 3.1010/1040.

Against the British pound, the ringit appreciated to 4.8460/8526 from 4.8710/8770 but declined against the euro to 4.1335/1381 from 4.0762/0794.

The local unit weakened against the Singapore dollar to 2.3287/3328 from 2.3237/3273 and against the yen to 3.6521/6569 from 3.6097/6129. -- Bernama


Wednesday, September 22, 2010

AirAsia maintains no fuel surcharge policy



Low-cost airline, AirAsia Bhd, is maintaining its no fuel surcharge policy despite reports that other airlines are increasing previously-imposed charges.

In a statement here today, AirAsia said it was committed to keeping air travel affordable and would tackle fuel price incease with aggressive marketing and the strengthening of its ancillary business instead of relying on fuel surcharge to offset rising fuel cost.

Its regional commercial head, Kathleen Tan, said the airline has no intention of resurrecting fuel surcharge since it was scrapped in November 2008.

She said its strong seat sales and successful ancillary income were enough to offset the rise in fuel price, adding that it would use innovation to drive its costs down and were looking at various other revenue streams rather than impose a fuel surcharge.


"Imposing fuel surcharge may be an easy way out, but it can also be an addiction in driving artificial revenue to a company," she said. - Bernama




Wednesday, September 1, 2010

KNM proposes to consolidate shares

KNM Group Bhd has proposed to consolidate its shares to improve its capital structure by reducing the number of shares but without affecting value of the securities.


The group is proposing to consolidate every four of its shares of 25 sen each into 1 ordinary share of RM1 each. The company has also proposed to amend its memorandum and articles of association to effect the share consolidation exercise.

As at August 30 2010, the issued and paid-up share capital of KNM (7164) is about RM1 billion, comprising 4.004 billion shares.

Upon completion of the proposed share consolidation, the issued and paid-up share capital of KNM would be rounded down to about RM1.0 billion, comprising about 1.0 billion consolidated shares.

The actual number of consolidated shares to be issued will however be determined based on the issued and paid-up share capital of KNM as at the entitlement date of the proposed share consolidation.
KNM said with the introduction of SPEEDS by Bursa Malaysia Securities Bhd, there will not be any suspension on the trading of the consolidated shares, pursuant to the exercise.

KNM said following the exercise KNM's capital structure there would be an immediate reduction in the number of KNM shares.

KNM shall benefit from easier management of a smaller number of shares, where the consolidated shares shall bear the same value of the existing KNM securities but at no expense to neither KNM nor its investors, it added.

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