Potential Recession Minimum @1086 pts

Potential Recession Minimum at 1086 pts. To gauge how much more the KLCI has to fall, we look at the historical trading range of the KLCI PER in Figure 2. With the KLCI traditionally trading between 13 to 19x PER, we can see that only in severe situations will the PER drop lower such as in the period between Sep 2008 to Dec 2008 when global credit markets froze after the Lehman crisis. At that point of time, the KLCI traded slightly below 10x PER. Extrapolating a 10x PER against our 2012 KLCI forecasts, we derive a 1086 pts potential recession minimum for the KLCI.

(Source: OSK Research)

Alert : Malaysia could be Next Zimbabwe?

Refer to Above Table, it shows Malaysia Equities Market/Investment Capital Inflow is decreasing rapidly. What happen if your RM currency value divided by 5? Food & Oil price x5? International Fund Manager is  worrying about Malaysia Equities + Government Debt and they started to underweight Malaysia Equities to reduce their risk.

BLR(Base Lending Rate) 6.05% p.a.

Bank Negara Malaysia's (BNM) decision to increase the Overnight Policy Rate (OPR) by 25 basis points on 13 May 2010.

Base Lending Rate (BLR) from 5.80%p.a. to 6.05%p.a. with effect from Tuesday 18 May 2010.

Affin believed to have submitted rival bid for EONCap

Affin Holdings is believed to have revived its interest in EON Bank group in a rival bid that betters the one offered by tycoon Tan Sri Quek Leng Chan’s Hong Leong Bank (HLBB). Sources told The Edge Financial Daily that Affin, controlled by Lembaga Angkatan Tentera (LTAT) and its foreign partner Hong Kong’s Bank of East Asia Ltd, has put in revised proposal for EON Capital to Bank Negara to rival HLBB’s offer. According to sources this is the third time Affin has submitted a proposal for EONCap. It is believed that the offer is higher than the HLBB offer and it includes a share equity element.
(Financial Daily)

Boustead Holdings Bhd - Approval Granted

Bank Negara has approved the company's proposal to dispose its 80% stake in BH Insurance(M) Bhd to AXA Affin General insurance Bhd for RM362.6 million cash.

Malaysia to mull foreign hypermart rules

The Cabinet will mull over the long-awaited new rules that will govern the lucrative business of foreign hypermarkets in the country, as early as today. Sources say the new rules would be crucial because the Government froze licences for new stores for foreign retailers like Tesco, Giant and Carrefour last year. "It is not certain if the recommendations will be approved in totality by the Cabinet," the source told Business Times. The Ministry of Domestic Trade, Co-operatives and Consumerism will present the revised guidelines to the Cabinet. The source was unable to reveal the changes and recommendations, but said that the 30% Bumiputera equity for foreign hypermarkets remains. Industry players have indicated that changes could include a reduction in the population-to-hypermarket ratio and the revocation of licences if retailers took too long to start operation. (BT)

Malaysia - Work on GST has started, says Customs

The Customs Department is getting ready to implement the goods and services tax, which is expected to come into force in the middle of 2011. Customs director-general Datuk Seri Ibrahim Jaapar said the department has started preparing for the new tax regime. Ibrahim said the change would not be difficult as the department only had to transform the current system to GST. (NST)

BJTOTO ACQUISITION

1562
ACQUISITION

ACQUISITION OF 20% EQUITY INTEREST IN BERJAYA LOTTERY VIETNAM LIMITED [FORMERLY
KNOWN AS BERJAYA CORPORATION (LABUAN) LIMITED]
.
You are advised to read the entire contents of the announcement or attachment.
To read the entire contents of the announcement or attachment, please access
the Bursa website at http://www.bursamalaysia.com .


17/12/2009 06:07 PM


Ref Code: 20091217GA00215

4% GST to come into effect in middle of 2011

The 4% Goods and Services Tax (GST) is expected to be implemented by the middle of 2011. The GST Bill was tabled for first reading in Parliament by Finance Minister II Datuk Seri Ahmad Husni Hanadzlah yesterday. He told the house that the second reading of the Bill was scheduled for March next year. Speaking to reporters at the Parliament lobby later, Husni said the GST would be a win-win situation for all, as the Government would receive an additional RM1bn in revenue for the first year while the business and export sectors would save RM4.1bn and RM1.4bn, respectively. “The Government is proposing GST at a rate lower than the (current) sales and services tax rates, and to allow certain exemptions from GST, especially on essential goods such as padi, vegetables, basic food (rice, sugar, flour, cooking oil), fish, meat and chicken, to ensure it will not burden the rakyat, especially the lower income group. The sales and services tax will be abolished and replaced with GST,” he said.
(Source:StarBiz)


Comments:
GST %:
4%(2011) -> 4.5%(2013) ----> 7%(2020)----> 15%(2040)