PBB, HLBK,MAYBAN,CIMB,BOUSTEAD,PUNCAK,AIRASIA,MAHB

Putting an end to weeks of market rumours, Public Bank Bhd (PBK MK, Buy, TP: RM12.80) said yesterday its nonexecutive chairman Tan Sri Dr Teh Hong Piow has recovered from a minor operation and will not be selling his stake in the bank. “Tan Sri Teh, the founding and single largest shareholder who owns total interests of 24.08% in Public Bank, has stressed that he has absolutely no intention of selling his stake in Public Bank”, the bank said in a statement. This overdue statement will perhaps finally and effectively put an end to rumours that have been circulating that Teh’s exit from Public Bank was imminent following news that he had been admitted to hospital for an operation in July. (Financial Daily)

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Hong Leong Bank Bhd (HLB) (HLBK MK, Hold, TP: RM6.30) is venturing into the consumer lending business in China through a 49:51 joint venture (JV) with Bank of Chengdu Co Ltd. This marks HLB’s further inroad into China’s financial services sector after its maiden foray in October when it acquired a 20% stake in Bank of Chengdu. According to an announcement yesterday, HLB and Bank of Chengdu will form a licensed consumer finance company known as Sichuan Jincheng Consumer Finance Ltd Liability Co (SJCF). “The business of SJCF will principally be in consumer financing. The registered capital will be 320m yuan (about RM160m), while HLB’s contribution shall be 156.8m yuan (RM78.4m), which will financed from internally generated funds,” said HLB. For its latest venture in China, HLB will provide SJCF with personnel, technical expertise and support in areas such as product development, risk management and information technology. (Financial Daily)

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One of Turkey's largest banks, Bank Asya, has expressed interest in working with Malaysian lenders Malayan Banking Berhad (MAY MK, Buy, TP: RM8.10) and CIMB (CIMB MK, Hold, TP: RM12.18) to develop Islamic banking in the republic. Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah said a joint venture may be possible, although this would ultimately depend on how strict Turkish regulations are in terms of foreign equity ownership in a bank. He hopes that at least one of the two banks will explore potentials for collaboration with Bank Asya. (BT)

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Boustead Holdings Bhd (BOUS MK, Buy, TP: RM3.94) is buying a 51% stake in Atlas Hall Sdn Bhd for RM8m. 20% of the stake was from vendor Tan Sri Abdul Rashid Abdul Manaf who is also a director of Atlas Hall. Boustead said that the stake buy-in was part of a group strategy to become a player in the oil & gas industry. The deal, which was slated for completion this
month, still required the green light from the respective boards of the two companies. (Malaysian Reserve)

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Puncak Niaga Holdings Bhd (PNH MK, Buy, TP: RM3.66) told the exchange yesterday that it has formed a 60:40 jointventure company with India’s Lanck Infratech Ltd to participate in a bid for a water supply and drainage tender in India. The project was identified as Hogenakkal water supply and flourosis mitigation Project-Package 1 called by Tamil NaduWater Supply and Drainage Board, India. (Starbiz)

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Malaysian budget carrier AirAsia (AIRA MK, Buy, TP: RM1.80) and subsidiary AirAsia X, which last month stunned the aviation market by offering short-haul international flights out of Kuala Lumpur priced from RM1 to RM11 (HK$2.27 to HK$25), have opened a new battlefront in the cargo market. Azran Osman Rani, the chief executive of AirAsia X’s target isto double the contribution of cargo revenue to 8% of the total for the two airlines in two to three years. To reach this target, the absolute increase in cargo revenue would have to be more than double the growth in revenue from passenger tickets, which would also be increasing over the same period, Azran said. To achieve its aim, AirAsia had launched a pricing strategy in the cargo market that was even more aggressive than its campaign on rock-bottom passenger fares, so that it could build up its brand name among exporters, he said. But agents said freight rates to Europe from Kuala Lumpur would be prices at a 30% discount to the average market price, which would be aimed at overcoming the disadvantage to shippers of a longer transit time for trucking shipments from London’s Stansted Airport, which AirAsia X started serving in March, to Heathrow Airport. (Financial Daily)

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Malaysia Airports Holdings Bhd (MAHB) expects passenger traffic growth to hit 4 to 5% next year in light of the positive trends in the global industry in the last few months. The industry is expected to fare better next year as the global economy is predicted to show recovery and hence boost air travel, MAHB managing director Tan Sri Basir Ahmad said. The airport operator had projected passenger volume to reach between 3 and 4% this year compared to last year. In 2008, total passenger volume at 39 airports operated by MAHB in the country rose 5% to 47.45m. (BT)