Stocks to watch : Mega First , Metronic Global , Public Bank, Eng Teknologi

KUALA LUMPUR (March 19) : Malaysian stocks could take the cue from more external news flow on Tuesday as investors weigh the prospects of a recovering US economy against less optimistic updates in China.

The spotlight this week will be directed at the US housing market data, deemed a crucial indicator of the health of the world’s largest economy. Investors are also taking note of China-based banks which are due to report their quarterly earnings.

On Monday, the FBM KLCI rose 0.14% or 2.2 points to finish at 1,573.6.

Stocks to watch on Tuesday include Mega First Corp Bhd and its 60.43% subsidiary ROCK CHEMICAL INDUSTRIES (M) [] Bhd, besides KOBAY TECHNOLOGY [] BHD [] and its 53.16% subsidiary Lipo Corp Bhd.

Heavily-traded METRONIC GLOBAL BHD [] and its 17%-owned unit Ariantec Global Bhd are also worth noting. Other stocks to watch include PUBLIC BANK BHD [], and ENG TEKNOLOGI HOLDINGS BHD [].

Mega First, a power plant builder and property developer , has served a takeover notice on Rock Chemical, a building materials entity, to acquire the remaining shares it does not own at RM2.10 each.

Mega First shares rose two sen to close at RM1.72 on Monday while Rock Chemical was up 31 sen to RM2.06 after both stocks resumed trading at 2.30pm.

Trading of shares in industrial component manufacturers Kobay and Lipo has been suspended since 3.05 pm on Monday, pending an announcement. Kobay was last traded on Friday at 79 sen while Lipo was last transacted at RM1.04 on Monday.

Metronic said it was informed by its managing director Dr Ng Tek Che that he was approached by parties who are keen to acquire his 5.23% stake in the firm.

Metronic,which specialises in system integration of intelligent building management and integrated security management systems, saw its shares rose 0.5 sen to 13 sen with about 177 million shares changing hands on Monday.

Ariantec, which offers information technology services, rose four sen to 13.5 sen with some 235 million shares done.

Public Bank is expected to maintain its 50% dividend payout ratio, chief operating officer Leong Kok Nyem said at the group’s AGM. Public Bank shares rose four sen to close at RM13.64.

The founders and major shareholders of Eng Teknologi who are in the midst of privatising the hard disk drive maker said the takeover offer price has been revised downwards from RM2.50 to RM2. Eng Teknologi shares closed unchanged at RM1.77.



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KLCI starts week on positive tone, select blue chips support

KUALA LUMPUR (March 19): The FBM KLCI started the week on a positive tone and closed slightly higher on Monday, lifted by gains of select blue chips including Petronas Gas, Tenaga and MISC.

The FBM KLCI closed 2.2 points up at 1,573.60. Turnover was 1.80 billion shares valued at RM1.51 billion. Declining stocks led advancers 434 to 319 while 329 counters were unchanged.

Asian shares edged higher and the dollar was steady against the yen on Monday after the U.S. market hit an almost four-year high last week and with higher European stocks reflecting signs of growing stability in the euro zone, according to Reuters.

The Shanghai Composite Index rose 0.23% to 2,410.18, Japan’s Nikkei 225 edged up 0.12% to 10,141.99, South Korea’s Kospi was up 0.62% to 2,0467.00. However, Hong Kong’s Hang Seng Index fell 0.92% to 21,121.67, and Taiwan’s Taiex shed 0.14% to 8,043.92 and Singapore’s Straits Times Index was down 0.68% to 2,990.09.

Ariantec Global was the most actively traded counter with 235.2 million shares done. The stock gained four sen to 13.5 sen.

Other actives included Metronic Global, Pan Malaysian Industries, Naim Indah Corp, IFCA MSC, Focus Point, Asia-Bio, Carotech and Hibiscus warrants.

Among the gainers were Dutch Lady, up 52 sen to RM30.50, Petronas Gas 40 sen to RM16.40, MISC 21 sen to RM5.36, HL Bank 18 sen to RM12 and Bumi Armada 16 sen to RM4.28.

Rock Chemical Industries rose 31 sen to RM2.06 or four sen below the RM2.10 takeover offer by Mega First Corp Bhd.

Bumi Armada added 16 sen to RM4.28. CIMB Equities Research raised the target price for Bumi Armada to RM4.80 from RM4.12.

It valued Bumi Armada at 18.2 times CY13 price-to-earnings, which is a 40% premium over its target market price range which was recently raised from 12.6 times to 13 times.

However, EPMB fell the most as investors were disappointed over its proposed acquisition of the 26km Maju Expressway (MEX) from Maju Holdings Sdn Bhd which was viewed as pricey.

Under the deal, the auto parts maker will pay RM1.7 billion for the highway concessionaire which included the debts. The MEX links the city centre in Jalan Tun Razak here to Putrajaya. OSK Research said the acquisition at RM1.7 billion would include assuming debts totaling RM550 million.

“Besides, the high interest cost will erode earnings in the immediate term. Given its excellent run but this pricey acquisition, we downgrade EPMB to a Neutral from a Buy, slashing its fair value from RM1.38 to RM1.15,” it said.

Other decliners were Cybertowers, down 14 sen to 31.5 sen, Top Glove 13 sen to RM4.83 while MAHB, Maybank and Mudajaya shed nine sen each to RM5.53, RM8.72 and RM3.01.



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Rock Chemical share price surges close to offer price

KUALA LUMPUR (March 19): Shares of ROCK CHEMICAL INDUSTRIES (M) [] Bhd (RCI) jumped in late afternoon on Monday after a hesitant start and was close to the takeover offer price of RM2.10.

At 4.03pm, it was up 31 sen to RM2.06. There were 142,200 shares done.

The FBM KLCI was up 1.44 points to 1,572.84. Turnover was 1.47 billion shares valued at RM1.08 billion. There were 278 gainers, 460 losers and 313 stocks unchanged.

Mega First Corp Bhd has served a takeover notice on its 60.43% subsidiary RCI to acquire the remaining shares it does not own at RM2.10 each.

Mega First, a power plant builder and property developer, said the takeover offer will give the acquirer full control of Rock Chemical, building materials entity, hence greater flexibility to dictate the subsidiary’s business direction.

RCI’s board of directors said it had received a notice of conditional take-over offer for the shares.

“The board does not intend to seek any other person to make a competing or alternative take-over offer for the offer shares,” it said.



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Rock Chemicals Industry untraded as buy, sell bids unmatched

KUALA LUMPUR (March 19): Shares of ROCK CHEMICAL INDUSTRIES (M) [] Bhd (RCI) were untraded when they resumed trading in the afternoon session on Monday after the company received a notice of conditional take-over offer at RM2.10 per share.

At 2.38pm, there were buy bids for 1,000 shares at RM1.97 while there were sell bids for 31,100 shares at RM2.10.

Mega First Corp Bhd has served a takeover notice on its 60.43% subsidiary RCI to acquire the remaining shares it does not own at RM2.10 each.

Mega First, a power plant builder and property developer, said the takeover offer will give the acquirer full control of Rock Chemical, building materials entity, hence greater flexibility to dictate the subsidiary’s business direction.

RCI’s board of directors said it had received a notice of conditional take-over offer for the shares.

“The board does not intend to seek any other person to make a competing or alternative take-over offer for the offer shares,” it said.



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Mega First serves takeover notice on Rock Chemical

KUALA LUMPUR (March 19) : Mega First Corp Bhd has served a takeover notice on its 60.43% subsidiary ROCK CHEMICAL INDUSTRIES (M) [] Bhd to acquire the remaining shares it does not own at RM2.10 each.

In a statement to the exchange on Monday, Mega First, a power plant builder and property developer, said the takeover offer will give the acquirer full control of Rock Chemical, building materials entity, hence greater flexibility to dictate the subsidiary’s business direction.

At RM2.10 per Rock Chemical share, Mega First will have to spend RM35.2 million to acquire the remaining 39.57% or 16.76 million shares in the subsidiary.

Trading of shares in Mega First and Rock Chemical has been suspended since last Friday for the announcement. Mega First was last traded at RM1.70 on Thursday while Rock Chemical closed at RM1.75.



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Mega First offers to buy out Rock Chems

Mega First Corp, a Malaysian heavy-equipment manufacturer, made a buyout offer for Rock Chemicals Industries (Malaysia) Bhd at RM2.10 per share, according to a Kuala Lumpur exchange filing today.

Mega First already owns 60.4 per cent of Rock Chemical’s shares, it said. -- Bloomberg



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Finance stocks lift FBM KLCI

Finance stocks lifted share prices on Bursa Malaysia which ended the morning session steady today and in line with regional markets, dealers said.

The dealers also said the local market was supported by the overnight gains on Wall Street.

At lunch break, the benchmark FTSE Bursa Malaysia KLCI (FBM KLCI) gained 0.95 of a point to 1,580.33. It had opened 1.1 point higher at 1,580.48.

The dealers said buying sentiment was boosted on improved confidence in the growth outlook of the United States but investors remained cautious on concerns over China's economic progress.

The Finance Index jumped 63.1 points to 14,237.04, the Plantation Index eased 39.75 points to 8,574.21 and the Industrial Index increased marginally, 0.08 of a point, to 2,845.41

The FBM Emas Index improved 11.12 points to 10,895.63, the FBM Mid 70 Index added 26.811 points to 10,895.63 and the FBM Ace Index gained 56.7 points to 4,626.48.

Market breadth was positive with 329 advancers to 286 losers while 342 other counters were unchanged and 22 others suspended.

Trading volume stood at 1.375 billion shares valued at RM726.664 million.

Among the active stocks, Metronic Global added 4.5 sen to 12.5 sen, Ariantec Global edged up three sen to 8.0 sen and I-Power perked one sen to 6.5 sen.

Bursa Malaysia issued an unusual market activity query to Metronic Global Bhd today over the sharp increase in price and high volume of the company's shares.

Meanwhile, trading in the shares of Mega first Corp Bhd and its 60.43 per cent subsidiary, Rock Chemicals Industry (M) Bhd, was suspended from 9am-5pm today, at the request of both companies in separate statements to Bursa Malaysia.

Among the heavyweights, Maybank rose six sen to RM8.82, Sime Darby earned four sen to RM9.75, CIMB went up eight sen to RM7.65 and Petronas Chemicals inched up one sen to RM6.78. -- Bernama



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Trading of Mega First and Rock Chemical shares suspended

KUALA LUMPUR (March 16) : Trading of shares in Mega First Corp Bhd and its 60.43% subsidiary ROCK CHEMICAL INDUSTRIES (M) [] Bhd has been suspended from 9am to 5pm on Friday pending a material announcement, both companies said in separate statements to the bourse.

Mega First, a power plant builder and property developer was last traded at RM1.70 on Thursday while Rock Chemical closed at RM1.75.



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KLCI snaps losing streak, closes 0.68% higher

KUALA LUMPUR (Jan 5): The FBM KLCI snapped its losing streak on the third trading day of 2012 and closed in the positive territory for the first time in the New Year, lifted by gains at banking and select blue chip stocks.

The FBM KLCI gained 10.21 points to close at 1,514.43.

Gainers beat losers by 467 to 325, while 324 counters traded unchanged. Volume was 1.67 billion shares valued at RM1.46 billion.

However, whether the index would be able to sustain its gains on Friday remains uncertain as most Asian markets closed in the negative territory while European indices fell in early trade on Thursday.

At the regional markets, Hong Kong’s Hang Seng Index added 0.46% to 18,813.41, Taiwan’s Taiex gained 0.68% to 7,130.86 and Singapore’s Straits Times Index edged up 0.07% to 2,713.02.

Meanwhile, the Shanghai Composite Index fell 0.97% to 2,148.45, Japan’s Nikkei lost 0.83% to 8,488.71 while South Korea’s Kospi shed 0.13% to 1,863.74.

Concern about the appetite for euro zone sovereign debt pushed European stocks lower and hit the single currency on Thursday, with the first French bond auction of 2012 set to test how much progress policymakers have made in easing tensions, according to Reuters.

The price France has to pay to sell 7 to 8 billion euros of longer-term bonds will measure how much relief markets have taken from the EU leaders' December plan for resolving the crisis and the near half-trillion euros pumped into the region's banks by the European Central Bank, it said.

On Bursa Malaysia, KLK jumped RM1.76 to RM25.26, Dutch Lady gained RM1 to RM24, Can-One 31 sen to RM1.37, Nestle 30 sen to RM56.30, Timwell 28 sen to RM1.08, BHIC and Boxpak 26 sen to RM4.11 and RM2.52, Carlsberg and MISC 23 sen each to RM8.71 and RM5.96, while BLD PLANTATION []s was up 22 sen to RM7.60.

Among banking stocks, CIMB rose six sen to RM7.16, RHB Capital five sen to RM7.33, Affin seven sen to RM3.09, HLFG four sen to RM11.56, while Maybank and Public Bank gained two sen each to RM8.29 and RM13.16.

Decliners were led by RCI that lost 35 sen to RM1.45, BAT 14 sen to RM49.66, IGB 10 sen to RM2.48, Genting Plantations and IJM Corp eight sen each to RM8.60 and RM5.46, Malayan Flour Mills and WCT seven sen each to RM7.16 and RM2.18, while Mahajaya and AFG fell six sen each to 62 sen and RM3.89.

The actives included XDL, JCY, Proton, Versatile and Astral Supreme.



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KLCI rises for third day, but gains limited

KUALA LUMPUR (Dec 29): The FBM KLCI rose for the third day on Thursday and closed above the 1,500-point level, as the slight recovery at most regional markets and bargain hunting activities lifted the local bourse.

The FBM KLCI closed 2.58 points higher at 1,506.69.

Gainers led losers by 492 to 254, while 335 counters traded unchanged. Volume was 1.59 billion shares valued at RM1.16 billion.

At the regional markets, the Shanghai Composite Index rose 0.16% to 2,173.56, Taiwan’s Taiex gained 0.26% to 7,074.82, South Korea’s Kospi added 0.03% to 1,825.74 and Singapore’s Straits Times Index edged up 0.24% to 2,672.78.

Hong Kong’s Hang Seng Index fell 0.65% to 18,397.92 and Japan’s Nikkei 225 shed 0.29% to 8.398.89.

Meanwhile, European shares rose on Thursday in low volume, recovering from the previous session falls, on hope there would be demand at an Italian auction of long-term sovereign debt after the European Central Bank's three-year funding operation last week, according to Reuters.

On Bursa Malaysia, BAT rose 40 sen to RM49.60, RCI added 33 sen to RM1.80, Cocoaland gained 18 sen to RM2.18, RHB Capital and Sarawak Oil Palms added 17 sen each to RM7.30 and RM5.59, Panasonic gained 16 sen to RM20.02, JT International and Faber rose 15 sen each to RM7.15 and RM1.62, while Batu Kawan gained 14 sen to RM17.44.

Among the decliners, Nestle fell 70 sen to RM56, Box-Pak lost 24 sen to RM2.23, Chin Teck down 20 sen to RM8.79, Southern Acids and Tasek fell 15 sen each to RM2.15 and RM7.80, HLFG lost 12 sen to RM11.56, Perduren fell 10.5 sen 74.5 sen, while UMW and Supermax lost 10 sen each to RM6.85 and RM3.79.

Utopia was the most actively traded counter with 197.45 million shares done. The stock fell one sen to 6.5 sen.

Other actively traded stocks included Sanichi, Mulpha, JCY, KNM, Flonic and LFE Corp.



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