UMW, SUNWAY CITY, TENAGA,PUBLIC BANK,MAYBANK, TELEKOM

UMW Holdings Bhd (UMWH MK, Hold, TP: RM5.70), through its subsidiary UMW Sher (L) Ltd, is taking up a 65% stake in Arab Drilling Services LLC for US$2.97m (RM10.5m) as a springboard for further investments and inroads into the Middle East. UMW Sher will end up with the 65% stake via a subscription and acquisition of shares in Arab Drilling. (Financial Daily)

* * * * *
Sunway City Bhd’s (SCITY MK, Buy, TP: RM3.60) wholly owned subsidiary Sunway Platinum Success Sdn Bhd has secured a Musharakah Mutanaqisah Term Financing-I (MMTF-I) facility amounting to RM132m from Maybank Islamic Bhd. Suncity said it was to refinance the existing term loans granted by HSBC Bank Malaysia Bhd and OCBC Bank (Malaysia) Bhd that was obtained to part-finance the construction of Monash University Sunway Campus. (Financial Daily)

* * * * *
Tenaga Nasional Bhd (TNB MK, Buy, TP: RM9.90) has failed its High Court appeal bid to set aside an arbitration sum totalling RM113m plus interest awarded against it in favour of two other parties and has appealed to the Court of Appeal against the court order. Tenaga’s wholly owned subsidiary TNB Transmission Network Sdn Bhd (TNBT) had in 2005 filed an arbitration proceeding for a restitution of all rentals, warehouse management and other payments made to Irham Niaga Sdn Bhd (INSB) and Irham Niaga Logistics Sdn Bhd (INLSB) under five year tenancy agreements. Both parties had filed a counterclaim against TNBT. (Financial Daily)

* * * * *
Public Bank Bhd’s (PBK MK, Buy, TP: RM12.80) non-executive chairman and founder Tan Sri Teh Hong Piow isrecovering well following a minor operation. The banking group registered a 3% growth in net profit to RM610.74m growth for 2Q ended June 30, 2009, from RM539.54m a year earlier. The group managed to keep its net non-performing loans ratio below 1%, despite the tougher operating environment in light of the economic downturn. PBB closed 10 sen lower at RM10.20 yesterday. (Financial Daily)
* * * * *
Malayan Banking Bhd (Maybank) (MAY MK, Buy, TP: RM6.40) expected non performing loans (NPLs) to be on a downward trend. Maybank declined to give figures ahead of the full year June 30 results. However, head of consumer banking Lim Hong Tat said that in terms of receivables, the bank expected above industry average growth in credit card debt and auto loans. Credit card debt grew 16% y-o-y compared with 6% for the industry while auto loans registered 10% growth
compared with industry average of 4%-5%. (Financial Daily)

* * * * *
KUB Malaysia Bhd has been awarded a RM26.77m contract from Telekom Malaysia Bhd (T MK, Buy TP: RM4.90) for the supply of digital subscriber line access multiplexer (DSLAM) system and the provision of works. The tenure of the contract is 3 years for the supply of DSLAM and 5 years for the comprehensive maintenance. KUB said the contract should contribute positively to the group’s earnings and earnings per share for the financial year ending Dec 31, 2009.(Financial
Daily)
* * * * *