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Reports Malaysia

Malaysia stock market and companies daily report (June 27, 2014)

June 27, 2014, Friday, 06:34 GMT | 01:34 EST | 10:04 IST | 12:34 SGT
Contributed by Shares Investment

Masteel Seeks Closure For Real Project With New Minister

- Malaysia Steel Works (KL) (Masteel) seeks to bring a closure to the controversial rail transit network project linking Iskandar Malaysia in Johor and Woodlands, Singapore that has yet to materialise.

- Masteel’s managing director and chief executive officer, Datuk Seri Tai Hean Leng said the delay was due to no decision by the Ministry of Transport, partly due to the 13th general elections and the absence of a transport Minister.

- So far, Masteel has obtained some approvals for the project, however, many more are still pending.

Significance: Masteel did not provide an indication towards how long would the project take to close, as this is largely dependent on the Ministry of Transport but indicated that it is still following through with the project.

Hibiscus Petroleum Expects Positive Impact From Kitan Oil Field

- Hibiscus Petroleum is expecting to reap gains following the acquisition of a 25 percent stake in an oilfield located in Kitan.

- However, the acquisition can only be completed after approvals are sought from the Australian and Timor Government.

- The company expects its average production rate for 2014 to be at 10,000 barrels per day, while it will drill four exploration wells in 2015, where two are in Norway and the remaining two are located in Australia and the Middle East.

Significance: Despite Hibiscus Petroleum’s positive prospects, the company does not have the intention of paying out dividends until after 2015 as no value has been created yet as the company just turnaround from losses in FY13.

Puncak Niaga To Make Foray Into Plantation Business

- Puncak Niaga Holdings has identified a few potential pieces of land for acquisition as the company intends to diversify its business into the plantation business.

- The company intends to utilise disposals of its units, Puncak Niaga (M) (PNSB) and Syarikat Bekalan Air Selangor (Syabas), to finance the acquisition.

- Further to its move on diversification, the company is considering to expand into environmental engineering such as waste treatment.

Significance: As the disposal of PNSB and Syabas has reached the final stage, the company could hold an extraordinary general meeting at end-August or early September to seek shareholders’ approval. In conjunction to this, the company did not rule out the possibility of a special dividend to be paid to its shareholders.