Saturday, 7 January 2012

Stocks to watch: Harvest, Can-One, Astral Supreme, Muhibbah

KUALA LUMPUR (Jan 7): Stocks on Bursa Malaysia could start on a cautious note next week, Jan 9, on continuing worries about a looming recession in Europe and the eurozone crisis, but fresh corporate news could provide some support.

On the local political front, the court is set to deliver its ruling on Parti Keadilan Rakyat (PKR) advisor Datuk Seri Anwar Ibrahim’s sodomy trial on Monday morning.

On Friday, the police agreed to allow PKR supporters to gather peacefully at the car park outside the Jalan Duta court complex here when the court is scheduled to deliver the verdict in Anwar's sodomy case.

On Wall Street, U.S. stocks rose in the first week of 2012, even though news that the U.S. jobless rate neared a three-year low did not whet interest in equities on Friday.

For the week, the Dow Jones Industrial Average rose 1.2%, the S&P gained 1.6% and the Nasdaq added 2.7% for the week, with most gains coming from cyclical sectors tied to growth.

Reuters reported on Friday that fears a capital black hole are spreading over the euro zone's banking sector threatens to overshadow the first meeting in 2012 of German Chancellor Angela Merkel and French President Nicolas Sarkozy next week to discuss the region's debt crisis.

European banks technically have until Jan. 20 to say how they will raise the estimated 115 billion euro ($147.12 billion)of capital needed by the end of June to repair balance sheets devastated by the euro zone's sovereign debt crisis.

But investors' nerves have become frayed after seeing Italian bank UniCredit forced to deeply discount a planned one-for-one equity rights issue, and calls for more details on how others plan to raise funds are set to grow, Reuters said

At Bursa Malaysia, among the stocks to watch include HARVEST COURT INDUSTRIES BHD [], CAN-ONE BHD [], KIAN JOO CAN FACTORY BHD [], ASTRAL SUPREME BHD [] and Muhibbah Engineering Bhd.

Bursa Malaysia Securities Bhd is removing the trading curbs on Harvest Court Industries Bhd’s shares and warrants with effect from Monday – nearly eight weeks after they were imposed on Nov 16.

Can-One Bhd won the legal tussle to acquire the 146.13 million Kian Joo Can Factory Bhd held by Kian Joo Holdings Sdn Bhd after a Federal Court ruled in its favour on Thursday.

Can-One announced to Bursa Malaysia that the apex court had allowed its appeal to proceed with the completion of the acquisition of the 32.9% stake for RM241.11 million.

Astral Supreme secured a €2.96 million (RM12.45 million) contract from Germany’s Sphairon Technologies GmbH.

What would interest investors is that based on the company’s annual revenue for financial year ended Dec 31, 2010 of RM13.36 million, the order value was about 93.2% of the latest annual revenue.

Muhibbah’s shares could be given a boost after CIMB Bank Bhd, which is the financier of the Asia Petroleum Hub Sdn Bhd (APH) project, has appointed PricewaterhouseCoopers (PwC) as receivers and managers over APH to facilitate a restructuring exercise.

Muhibbah maintained the APH project was viable and it was “working with various financiers, including CIMB, and other relevant parties towards an amicable solution”.

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