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Strategies & Market Trends : Asia Forum -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (2493)	3/3/1998 10:17:00 PM
From: B Tate	Read Replies (3) \| Respond to of 9980

Mohan Worswick and all This AM (Wed.) market in KLSE - blood in the streets - VERY heavy losses in financial sector. Overall KLSE - 14 counters UP, 658 DOWN, 37 UNCH. More news relative to Sime Bank. Sime's loan portfolio is aprox. RM16b RM2b doubtful exposure to Indonesia, with "rumours of other doubtful loans extended to certain several prominent tycoons and share syndicates" may not be included in loss provisions for last 6 months. (see earlier post on RM 1.6b losses). Sime Banks shareholders funds depleted to RM368m from RM2.4b in June of 97. Negotiations between Sime Bank and RHB Group (RHB Bank negotiations with Commerze Bank now on hold) are at an advanced stage. IAW statement of Deputy Prime Minister and Finance Minister Anwar Ibrahim. Unclear on terms of proposed merger since RHB Bank is itself in need of capital injection to maintain capital adequacy requirements of Bank Negara. ...The RHB goup's ultimate holding company, Rashid Hussian Bhd is already debt-ridden with over RM2.4b in net debt (1.4x gearing) and insufficient cash flows to service its interest obligations. There is a possibility that the government provide some soft loans and tax incentives..... Worswick, if and when SDarby sheds this sucker it will be time for buying SD. bt