Reuters: Hot Stocks: STOCKS NEWS MALAYSIA-Kenanga raises IJM Land target price

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STOCKS NEWS MALAYSIA-Kenanga raises IJM Land target price Aug 6th 2012, 04:03 Mon Aug 6, 2012 12:03am EDT KUALA LUMPUR, Aug 6 - Kenanga Research raised IJM Land Berhad's target price to 2.75 ringgit from 2.64 ringgit after it was reported that the company has formed a joint venture to develop a property site in London. "We are positive on the venture as the group is now seeking new earnings growth avenues overseas given its already high earnings base in Malaysia," Kenanga said in a research note on Monday. IJM Land said in a stock exchange filing that it formed a joint venture with Lite Bell Consolidated Sdn Bhd to buy a 2.7 acre site on Royal Mint Street in London for 98.4 million ringgit. There are no issues with the financing of the project and IJM Land's net gearing is set to rise only marginally, Kenanga said, adding that the project, due to be launched in the latter part of 2014, will start contributing to revenue from the financial year 2015 onwards. At 11.25 am, (0325 GMT) IJM Land was unchanged at 2.45 ringgit while the FTSE Bursa KLCI index was up 4.39 points at 1639.45. 10:35 STOCKS NEWS MALAYSIA-Kenanga downgrades plantation sector to neutral Kenanga Research downgraded Malaysia's plantation sector stocks to 'neutral' ahead of what it expects to be a weak results season and lower crude palm oil prices. "We estimate that CPO prices will need to reach another new high of 3,300 ringgit in 2012 for most planters just to maintain their same earnings achieved in 2011," it said in a research note on Monday. Five of the seven plantation stocks Kenanga covers are expected to report below-consensus earnings in quarterly results due this month. The five are KL Kepong Berhad, Genting Plantations Berhad, IJM Plantations Berhad, TSH Resources Berhad and Ta Ann Holdings Berhad. Tree stress is taking a toll across the sector, Kenanga said, citing crude palm oil production in the first half of 2012 which came in 7 percent below its own estimate. At 10:48 am, KL Kepong was down 0.16 ringgit at 23.26 while TSH Resources and Genting Plantations were unchanged at 2.64 ringgit and 9.29 ringgit respectively. IOI Corp Berhad was down 0.01 ringgit at 5.17 ringgit and Sime Darby was up 0.01 ringgit at 9.82 ringgit. The FTSE Bursa KLCI index was up 5.89 points at 1640.84. (Reporting by Siva Sithraputhran in Kuala Lumpur; siva.sithraputhran@thomsonreuters.com) Link this Share this Digg this Email Reprints

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