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Reports Malaysia

Malaysia stock market and companies daily report (July 22, 2014)

July 22, 2014, Tuesday, 04:29 GMT | 00:29 EST | 08:59 IST | 11:29 SGT
Contributed by Shares Investment

Indonesia Looks To Lessen Foreign Bank Ownership

- Jakarta lawmakers are mulling over a proposed bill that requires foreign banks to reduce their stakes in Indonesian banks to 40 percent.

- If the law is applied retrospectively, Malayan Banking (Maybank) and CIMB Group Holdings could come under pressure as the former owns about 80 percent of Bank Internasional Indonesia (BII) while the latter has a 97.9 percent interest in CIMB Niaga.

- According to Reuters, the bill would force foreign banks to reduce their holdings in Indonesian banks to a maximum of 40 percent within a decade.

Significance: Based on analysts’ estimates, BII’s contribution to Maybank’s bottom line stands at 7 percent while CIMB Group derives about 30 percent of its earnings from CIMB Niaga.

Gadang To Acquire Indonesian Concession Interest

- Asian Utilities, an indirect unit of Gadang Holdings, has proposed to buy a 70 percent stake of Indonesia’s PT Dewata Bangun Tirta (DBT) for IDR55 million (RM14.9 million).

- DBT is the holder of a 200 litres per second water treatment and supply concessionaire in Kabupaten Gresik, Jawa Timur.

- DBT sells bulk treated water to Perusahaan Daerah Air Minum Kabupaten Gresik on a take or pay basis for a period of 25 years, which commenced on 12 February 2013.

Significance: The proposed acquisition, expected to be completed by end August 2014, is part of Gadang’s plan to expand its treated water supply and concession in Indonesia.

SYF To Drive RM160m Cheras Development

- Together with Luxmark View and Sheeco Properties, SYF Resources will develop 8.1 acres of freehold land in Cheras, Selangor Darul Ehsan, into a residential project with a gross development value (GDV) of RM160 million.

- Luxmark and Sheeco own the land and are entitled to RM31.1 million, taking into consideration that the expected GDV attains a minimum of RM160 million.

- SYF expects to obtain the approval of the building plans within two years from 21 July 2014, while the project is expected to be completed within four years from acquiring the approval.

Significance: The joint venture is expected to contribute positively to SYF’s future earnings from FY16 onwards.