Finally, the merger between Hong Leong bank & EON bank has completed. This exercise creates Malaysian fourth largest bank based on assets size & market capitalization.
The table below shows the ranking of Malaysian Banks based on assets size and market capitalization as of early 2011.
Ideal Jacobs (Malaysia) Corporation Berhad Initial Public Offering (IPO) received an overwhelming response with its Malaysian public portion of 2 million shares. It was oversubscribed by 315.17 times.
The IPO attract 12,482 applications or 632.3 million shares with the value of RM170.7 million. The new 28 million shares made available for private placement have been fully placed by placement agent.
Below are the allotment summary
Real Estate Investment Trust (REIT) becoming popular in Malaysia due to high dividend yield paid by the management company. Currently, there are 14 REITs approved by Security Commission (SC) and listed in Bursa Malaysia.
The main advantage of (REIT) when compare with actual property investment is the investors earn better liquidity and cash flow.
How do they performed? The table below shows the comparison between the 14 REIT available in Malaysia in terms of Market Capitalization, Earnings per Share (EPS) and Dividend Yield for the past 1 year.
OSK foresee that market will recover in May as they believe the 1Q2011 will at least meet downbeat expectations after the past 4 quarters of disappointments. With the potential for reasonable results, OSK believe the market will shift back to fundamentals and look back at Big Caps.
Strategy for the month would be to Buy fundamentally strong Big Caps as well as Trade on the Property sector as the newsflow here could resume after a couple of months hiatus.
OSK Top Buys are big caps with Maybank, CIMB, and Axiata are top banking & telcos stocks. AirAsia’s reintroduction of fuel surcharges and upcoming listing of its associates should help its share price while UEM Land is an excellent proxy for newsflow in the property sector
The table below are the target price for OSK’s May 2011 top picks.
At the Monetary Policy Committee (MPC) meeting on 5th May 2011, Bank Negara Malaysia decided to raise the Overnight Policy Rate (OPR) by 25 basis points to 3.00 percent with immediate effect. The floor and ceiling rates of the corridor for the OPR are correspondingly raised to 2.75 percent and 3.25 percent respectively.
Following this, banks will Base Lending Rate (BLR) & Base Financing Rate (BFR) later. For those who have variable loans specially home loan, will have to pay more in their monthly installment. On the positive side, the increase also will raise the current fixed deposit rate. For the latest BLR & BFR rate kindly refer to Rate Page.