IOI, MAS AIR ASIA

to take advantage of higher profit margins. About RM250m will be spent on an existing refinery in Rotterdam to raise the annual output of palm oil products, including specialty fats, by 35% to 1.15m metric tonnes this year. Another RM200m will be invested in Johor, which will supply ingredients to facilities in Europe and the U.S., said executive director Lee Yeow Chor. IOI will seek ventures in South America and Russia to tap new markets for specialty fats. (The Malaysian Reserve)


IOI Corporation Bhd (IOI MK, Sell, TP: RM4.00), said yesterday that the worst is over for the plantation sector as palm oil prices have recovered form last year’s slump although M&A activity would be muted. Earnings of Malaysian palm oil producers plunged in the 1Q09 as crude palm oil prices more than halved from 1 year ago. (Financial Daily)


Malaysian Airline (MAS MK, Sell, TP: RM2.00) is offering 1st class seats for business class fares for some of its international flights. In a statement yesterday, MAS said customers flying on B747 aircraft to London, Los Angeles, Sydney and Buenos Aires now had the choice of being upgraded to 1st class with Business First while accruing Enrich miles at 150%. It said the perks of flying 1st class included 30kg baggage allowance, advance seat selection and no charge for any changes in bookings. (Financial Daily)


AirAsia (AIRA MK, Buy, TP: RM1.90) has launched another international route, this time from Kota Kinabalu (KK) to Brunei. In a statement yesterday, the low-cost carrier said the new service would be its 6th international service form KK and 2nd international service from Brunei. The daily flight from KK to Brunei opens for sale for the booking period July 3 to July 12,
2009 for the travel period Sept 9, 2009 to April 30, 2010. In conjunction with this launch, AirAsia will be offering all-in-fare from RM29 one way. (Financial Daily)
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