Thesun 2009-10-30 Page19 Maxis To Attract Institutional Investors

theSun

19

| FRIDAY OCTOBER 30 2009

business

KLCI STI Hang Seng SCI

1,241.75 2,632.31 21,264.99 2,960.47

T  7.30 T 16.67 T 496.59 T 70.86

Nikkei TSEC KOSPI S&P/ASX200

9,891.10 7,355.69 1,585.85 4,574.70

market summary

Maxis to attract institutional investors: OSK KUALA LUMPUR: Institutional investors will have strategic exposure to Malaysia’s largest mobile operator Maxis Berhad in view of its strong fundamentals and earnings and robust prospective dividends going forward. Stating this in an investment research report, OSK Research said while deprived of the longer term growth potential with the overseas assets hived off, Maxis is a core holding for exposure to Malaysia’s mobile telecoms. Maxis is expected to be ranked among the top five of the FTSE Bursa Malaysia Kuala Lumpur Composite Index (FBM KLCI) when included in the next review of the benchmark index in December. OSK Research noted that Maxis will be listed without its loss-making overseas operations. “While investors would be deprived of the strong longer term potential of these assets, the listing of its domestic operation effectively removes the strain on its cash flow, which was previously used to fund its expansion overseas,” it said. Maxis is offering 2.25 billion shares as part of its “homecoming initial public offering (IPO)” via an offer for sale by its major shareholders. “We believe the relisting is timely to capture the nascent recovery in the domestic and global capital markets and to tap on the renewed appetite for fresh equities,” OSK Research said. “It would be the biggest IPO for Bursa Malaysia this year, boosting stock market velocity

EXCHANGE RATES Foreign currency

1 US DOLLAR 1 AUSTRALIAN DOLLAR 1 BRUNEI DOLLAR 1 CANADIAN DOLLAR 1 EURO 1 NEW ZEALAND DOLLAR 1 PAPUA N GUINEA KINA 1 SINGAPORE DOLLAR 1 STERLING POUND 1 SWISS FRANC 100 ARAB EMIRATES DIRHAM 100 BANGLADESH TAKA 100 DANISH KRONE 100 HONGKONG DOLLAR 100 INDIAN RUPEE 100 INDONESIAN RUPIAH 100 JAPANESE YEN 100 NORWEGIAN KRONE 100 PAKISTAN RUPEE 100 PHILIPPINE PESO 100 QATAR RIYAL 100 SAUDI RIYAL 100 SOUTH AFRICAN RAND 100 SRI LANKA RUPEE 100 SWEDISH KRONA 100 THAI BAHT

and breadth in a single stroke,” it said. Post-IPO, both Tan Sri Ananda Krishnan and Saudi Telecom will have effective control over Maxis via their direct shareholding in Binariang. OSK Research said based on the number of shares allocated for institutional investors of 2.1 billion, some 31% or 626.1 million shares, have been taken up by bumiputra cornerstone investors during the pre-IPO stage. “We expect Maxis to be included in the FBM KLCI in the next review of the index, slated for early December. It could potentially become the fifth largest component of the FBM KLCI, behind Maybank,” it said. OSK Research believes that intense competition in the mobile market will continue to pressure Maxis’ revenue and margins going forward. This is further compounded by slowing subscriber growth with mobile penetration hitting an estimated 118.3% by end2010, it said. “While Maxis has a strong following in the prepaid and postpaid segment, its dominance has and will continue to be threatened by the rejuvenated Celcom and an agile DiGi,” it added. According to OSK Research, given the slowdown in subscriber growth, the key focus for mobile operators will be on the under-penetrated areas where mobile penetration is still low. The opportunity lies in the rural markets, it said. – Bernama

October 29, 2009

Bank sell Bank buy Bank buy

TT/OD 3.4800 3.1320 2.4840 3.2260 5.1170 2.5260 1.4550 2.4835 5.6940 3.3950 96.4200 5.1500 70.9200 45.7000 7.6200 0.0376 3.8600 62.5000 4.2700 7.4300 97.0400 94.2300 46.0800 3.1300 51.0300 11.1400

TT 3.4150 3.0380 2.4220 3.1460 5.0120 2.4140 1.2050 2.4220 5.5780 3.3100 91.3100 4.7860 65.1700 43.2800 7.0000 0.0330 3.7660 57.3800 4.0000 6.9700 92.3100 89.6300 42.1800 2.8800 46.4100 9.4400

OD 3.4050 3.0220 2.4140 3.1340 4.9920 2.3980 1.1890 2.4140 5.5580 3.2950 91.1100 4.5860 64.9700 43.0800 6.8000 0.0280 3.7560 57.1800 3.8000 6.7700 92.1100 89.4300 41.9800 2.6800 46.2100 9.0400

Source: Malayan Banking Berhad/Bernama

Ancelotti won’t get carried away by freescoring Blues pg 35

Prices end easier

INDICES

T  183.95 T 178.26 T 23.86 T 110.40

KLCI

Sensitivity Company

OCTOBER 29, 2009 CHANGE

FBMEMAS 8,313.00 -54.11 FBM-KLCI 1,241.75 -7.30 INDUSTRIAL 2,670.16 -9.09 CONSUMER PRODUCT 365.11 -1.20 INDUSTRIAL PRODUCT 92.16 -0.85 CONSTRUCTION 232.73 -1.55 TRADING SERVICES 160.40 -0.37 FINANCE 10,441.14 -107.19 PROPERTIES 789.57 -9.04 PLANTATIONS 6,112.53 -43.40 MINING 310.05 UNCH FBMSHA 8,409.99 -45.09 FBMACE 4,259.10 -89.90 TECHNOLOGY 16.88 -0.12

SHARE prices on Bursa Malaysia ended easier yesterday as the market stayed in negative territory in tandem with the losses on regional markets, dealers said. The dealers also said investors had reassesed their risk on renewed concerns over the pace of the global economy, after discouraging data on new housing sales VALUE TURNOVER in the United States. 933.009mil RM1.301bil FBM KLCI was 7.3 points lower at 1,241.75. For the heavyweights, Sime Darby eased nine sen to RM8.90, Maybank declined 12 sen to RM6.63, CIMB Group Holdings lost 12 sen to RM12.32 and Tenaga Nasional slid four sen to RM8.44. As for the actives, KNM Group declined two sen to 77.5 sen, Ingress Corporation slipped seven sen to 76 sen, TPC Plus added one sen to 30 sen and DPS Resources rose 1.5 sen to 19 sen. Shares of autoparts suppliers such as Tracoma and Hirotako rose following the announcement of the revised National Automotive Policy on Wednesday. Hirotako rose 1.5 sen to 91 sen and Tracoma increased one sen to 30 sen. – Bernama

China to launch case against US Big Three automakers WASHINGTON: China has told the United States it is launching a trade investigation that could lead to new import duties on autos and sports utility vehicles made by Chrysler, Ford and General Motors, a US industry official said yesterday. President Barack Obama angered Beijing last month by slapping a 35% duty on imports of Chinese-made tyres which totalled about US$1.8 billion (RM6.12 billion) last year. China immediately challenged the action at the World Trade Organisation and also said it would launch an anti-dumping and countervailing-duty investigation against US autos to offset unfair pricing and government subsidies. “The documents containing the charges were presented by China to the US government this week, but have not yet been translated. Therefore we are not in a position to comment on the matter at this time,” Steve Collins, president of the American Automotive Policy Council, told Reuters.