Malaysia's consumption tax collectors seek to dethrone cash

From The Edge Malaysia
31st Oct 2013

KUALA LUMPUR (Oct 31): Malaysia's new consumption tax is a boon to IT companies that stand to win infrastructure contracts and fees - provided they can convince people to switch to electronic payments in a country where 91 percent of transactions are in cash.

The 6 percent goods and services tax (GST) that Prime Minister Najib Razak announced in his annual budget speech on Friday is aimed at narrowing a budget gap that is expected to hit 4 percent of gross domestic product this year.

Cash payments are harder for tax collectors to track, so the government is encouraging e-payments as a way to reduce costs and improve efficiency.

For companies such as Censof Holdings Bhd and GHL Systems Bhd that specialise in creating electronic payment and software systems, the initial benefit will likely come well before the tax is implemented in April 2015.

New property measures to drive away investors

From Business Times
By RHB Research
29th October 2013

"We see downside potential for valuations of some stocks, particularly those that are highly exposed to the Iskandar region and have high proportion of foreign buyers," 

"They include UEM Sunrise Bhd, Sunway Bhd, SP Setia Bhd, Mah Sing Group Bhd, IJM Land Bhd and Eastern & Oriental Bhd."

NEW property cooling measures, such as raising the ceiling price of properties for foreign buyers to RM1 million, will be a big blow to Johor's Iskandar Malaysia region, says RHB Research.

The research house views that the 30 per cent real property gains tax (RPGT) for foreigners, for disposals within the first five years, will wipe out short-term foreign speculators to a certain extent as the minimum five years' holding period will drive them away.

Silver Bird will cease to be syariah-compliant

From The Edge Malaysia
9th October 2013

KUALA LUMPUR: Financially troubled SILVER BIRD GROUP BHD will be categorised as a non-syariah-compliant company beginning next month. It has failed to meet a criterion of the new set of rules for syariah counters set by the Securities Commission Malaysia (SC).

Under the new rules, which take effect on Nov 1, a company’s cash and debts in conventional accounts cannot be more than 33% of its total assets in order to meet syariah standards. In terms of revenue, companies are only allowed to derive 5% to 20% from the various types of businesses which are non-syariah compliant such as gambling and brewers. The SC had announced the new rules in June last year.

More syariah-compliant companies are expected to face the same issue as Silver Bird. Currently, some 801 companies listed on Bursa Malaysia meet the existing standards.

With the new set of rules, syariah-compliant investment funds will be given a six-month grace period to realign their stock portfolios. This sparks concern that those stocks which could be reclassified as non-syariah compliant will succumb to selling pressure as institutional investors rejig their portfolios.

MAHSING - Personal technical analysis 7/10/13

Personal Technical Analysis
7th Oct 2013

Violated and hold above 100SMA for the second day - Bull
Above all 50,100 and 200 SMA - Bull
MACD above both signal and center lines - Bull
Slow STO at overbought area - Bear
RSI level shows slight overbought - Bear

Immediate resistance: RM2.515
Second resistance: RM2.79
Immediate support: RM2.38
Second support: RM2.35

My TP: Not rated (From RM2.50)

Risk: Introduction of RPGT in Budget 2014 on Oct 25th 2013.

CIMB Research maintains Neutral outlook on Malaysian REITS

From The Star Online: Business
By CIMB Research
7th Oct 2013

KUALA LUMPUR: CIMB Equities Research is retaining its Neutral call on the Malaysian REIT sector as the dividend yields of 5.1%-5.5% for FY13-14 are not particularly attractive relative to the 3.98% yield for 10-year MGS.

Pre-Budget KLCI

From The Edge Malaysia
5th Oct 2013

KUALA LUMPUR (Oct 5): The pre-budget rally on the local FBM KLCI that is generally expected a week or so before the tabling of Malaysia’s Budget may be short lived this year if the US budget and debt crisis continues, according to Affin IB vice president and head retail research Dr Nazri Khan.

In an email reply to theedgemalaysia.com last Friday, Nazri said assuming big positive impacts on key beneficiaries (likely winners construction, consumer, power & oil gas stocks) and minimal negative impacts on other sectors (likely losers banking & PROPERTIES stocks), the FBM KLCI should trend towards a range of between 1,800 and 1,820 points before Budget 2014 on Oct 25.

YTL - Personal Analysis 1/10/2013

Personal Technical Analysis
1st Oct 2013

Currently supported at RM1.51, its 1-year low.
Fast STO shows that it is oversold.
MACD is slightly above Signal Line but is below the Centerline.
Critical support line: RM1.51
Immediate resistance line: RM1.55

My call: Sell for closing below RM1.51.

Mah Sing acquires land in JB

From Business Times
1st Oct 2013

Mah Sing Group Bhd acquired 31 pieces of adjoining freehold land with net land area measuring 1,351.84 acres in Johor Baru for RM429.86 million or RM7.30 per sq ft.

Mah Sing said its wholly-owned subsidiary, Sanjung Tropika Development Sdn Bhd, has signed a conditional sales and purchase agreement with Bistari Land Sdn Bhd for the proposed acquisition.

The propperty developer said it intends to fund the proposed acquisition through a combination of internally generated funds, rights issue with warrants and/or bank borrowings.

Resistance: RM2.35
Support: RM2.17
My TP: RM2.50