PETALING JAYA: Amid the bearish market sentiment yesterday, several stocks bucked the generally downward trend, perked up by company-specific news.
Stocks such as stockbroker KAF-Seagroatt & Campbell Bhd, property developer UEM Land Holdings Bhd and hard disk drive (HDD) component maker JCY Holdings Bhd ended the day higher, outpacing the broader FBM KLCI which shed 12.61 points or 0.85% to settle at 1465.17.
KAF rose 15 sen or 11.3% to end at RM1.48 after The Edge Financial Daily reported yesterday that a Singapore bank, speculated to be OCBC Bank, is looking to acquire the company’s securities business.
OCBC, the second largest banking group in Singapore and Southeast Asia, is the only one of Singapore’s big three banks with no presence in Malaysia’s capital market services industry.
Following The Edge Financial Daily article, Bloomberg also reported yesterday that OCBC is planning to acquire 49% of KAF’s equities brokerage unit for 1.3 to 1.4 times book value, and that the transaction will be completed in early 2012, quoting unnamed sources.
Last week, United Overseas Bank (UOB), Singapore’s third largest banking group, entered into an agreement to acquire Innosabah Securities Bhd from Kretam Holdings Bhd for RM56.68 million.
Government-linked property developer UEM Land closed three sen or 1.3% higher at RM2.28, on high volume of 16.71 million shares. This came a day after the stock was included as one of the constituents of the 30-stock FBM KLCI on Monday. As the only pure property developer on the KLCI, analysts said the status may attract investors looking for exposure to Malaysia’s property sector, and in particular Iskandar Malaysia.
In a recent report, Maybank-Kim Eng said the group will likely win more government land deals such as the Rubber Research Institute of Malaysia (RRIM) land in Sungai Buloh, Selangor, the former Pudu jail land development project in Jalan Hang Tuah, as well as the former Unilever factory land in Bangsar, Kuala Lumpur.
Another stock which captured investor interest yesterday was JCY, which closed three sen higher at 91 sen per share, following a three sen gain on Monday. The stock was among the most actively traded with 34.1 million shares changing hands.
An article in The Edge weekly noted that JCY’s plant in Thailand had escaped the flooding that devastated the country’s industrial parks, and that the company is poised to benefit from higher prices of HDD components.
JCY managing director James Wong told The Edge that the price of HDD components has increased by 20% due to a shortage following the supply chain disruption in Thailand.
“Before the floods, the average selling price [ASP] of HDD had been falling around 2% to 3% every quarter. But the floods caused a shortage of HDDs, which pushed up ASP,” he said Wong.
This article appeared in The Edge Financial Daily, December 21, 2011.
Stocks such as stockbroker KAF-Seagroatt & Campbell Bhd, property developer UEM Land Holdings Bhd and hard disk drive (HDD) component maker JCY Holdings Bhd ended the day higher, outpacing the broader FBM KLCI which shed 12.61 points or 0.85% to settle at 1465.17.
KAF rose 15 sen or 11.3% to end at RM1.48 after The Edge Financial Daily reported yesterday that a Singapore bank, speculated to be OCBC Bank, is looking to acquire the company’s securities business.
OCBC, the second largest banking group in Singapore and Southeast Asia, is the only one of Singapore’s big three banks with no presence in Malaysia’s capital market services industry.
Following The Edge Financial Daily article, Bloomberg also reported yesterday that OCBC is planning to acquire 49% of KAF’s equities brokerage unit for 1.3 to 1.4 times book value, and that the transaction will be completed in early 2012, quoting unnamed sources.
Last week, United Overseas Bank (UOB), Singapore’s third largest banking group, entered into an agreement to acquire Innosabah Securities Bhd from Kretam Holdings Bhd for RM56.68 million.
Government-linked property developer UEM Land closed three sen or 1.3% higher at RM2.28, on high volume of 16.71 million shares. This came a day after the stock was included as one of the constituents of the 30-stock FBM KLCI on Monday. As the only pure property developer on the KLCI, analysts said the status may attract investors looking for exposure to Malaysia’s property sector, and in particular Iskandar Malaysia.
In a recent report, Maybank-Kim Eng said the group will likely win more government land deals such as the Rubber Research Institute of Malaysia (RRIM) land in Sungai Buloh, Selangor, the former Pudu jail land development project in Jalan Hang Tuah, as well as the former Unilever factory land in Bangsar, Kuala Lumpur.
Another stock which captured investor interest yesterday was JCY, which closed three sen higher at 91 sen per share, following a three sen gain on Monday. The stock was among the most actively traded with 34.1 million shares changing hands.
An article in The Edge weekly noted that JCY’s plant in Thailand had escaped the flooding that devastated the country’s industrial parks, and that the company is poised to benefit from higher prices of HDD components.
JCY managing director James Wong told The Edge that the price of HDD components has increased by 20% due to a shortage following the supply chain disruption in Thailand.
“Before the floods, the average selling price [ASP] of HDD had been falling around 2% to 3% every quarter. But the floods caused a shortage of HDDs, which pushed up ASP,” he said Wong.
This article appeared in The Edge Financial Daily, December 21, 2011.
