Stocks to Watch Genting Group, Glenealy, Cuscapi, Century Logistics, Dialog

KUALA LUMPUR (May 11): The FBM KLCI may cap a tumultuous week on Friday on a weaker note, as external pressures have kept Asian equities in throughout the week, while European and US markets appeared to trend lower on Thursday as well.

European shares were down around midday in choppy trade on Thursday, as political concerns in Europe and global growth worries weighed on investor sentiment with basic resource stocks under pressure after weak trade data overnight from China, according to Reuters.

Meanwhile, S&P 500 futures were flat on Thursday as investors paused from a recent bout of selling ahead of the latest report on the labor market, it said.

Among the stocks that could be in focus are the Genting stable of companies, Glenealy PLANTATION []s (Malaya) Bhd, CUSCAPI BHD [], CENTURY LOGISTICS HOLDINGS BHD [], and DIALOG GROUP BHD [].

The Genting companies declared their final dividends respectively. GENTING BHD [] declared a final gross dividend of 4.5 sen per share of 10 sen each; Genting Malaysia declared a final gross dividend of 4.8 sen per share of 10 sen each, while Genting Plantations declared a final gross dividend of 5.75 sen per share of 50 sen each.

Glenealy's net profit fell 52.97% to RM10.93 million for its third quarter ended Mar 31, from RM23.24 million a year ago, due to lower production volume and higher production costs. It said on Thursday that its revenue for the quarter decreased 13.19% to RM60.02 million from RM69.14 million a year earlier.

Cuscapi's net profit plunged 70.92% to RM567,000 for its first quarter ended Mar 31, from RM1.95 million a year ago, dragged down by delays in uncompleted projects. In a statement on Bursa Malaysia on Thursday, the group said its revenue fell 21.34% to RM12.13 million from RM15.42 million a year earlier.

Century Logistics's net profit fell 33% to RM4.29 million in its first quarter ended Mar 31, from RM6.44 million a year ago due to start-up losses from its double hull product tanker. The company said it would be paying a seven sen final dividend in respect of the financial year ended Dec 31, 2011 on May 25, bringing the total single-tier dividend in respect of the year 2011 to 12 sen per share.

Dialog's net profit for the third quarter ended March 31, 2012 rose 7.96% to RM41.39 million from RM38.34 million a year earlier, due mainly to higher revenue and increase in Malaysian operations arising from its provision of specialist products and services, engineering and CONSTRUCTION [] activities and fabrication works.

It said on Thursday that revenue for the quarter jumped 39.5% to RM420.04 million from RM301.16 million in 2011, due consolidation of the revenue of the newly acquired fabrication and multi-disciplined engineering company, Fitzroy Engineering Group Ltd, based in New Zealand contributed to the increase in the group's revenue. Dialog declared an interim 1.1 sen single tier cash dividend per share to be paid on June 29.



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Stocks to Watch Southern Steel, Sunway, TRC Synergy, Malayan Flour Mills, KKB Engineering, Sime Darby, MMHE

KUALA LUMPUR (May 10): Investor sentiment at Bursa Malaysia on Thursday may remain weak in line with the gloomy sentiment at most global markets, as political uncertainties in Greece and the rising costs of fixing Spain's banks ignited worries that the eurozone's debt crisis was worsening.

The concerns over Europe added to worries about the impact of softer growth in the US on the global economic outlook, causing a broad retreat from risky assets with world shares falling, oil prices down for a sixth straight session and the commodity-linked Australian dollar hitting new lows, according to Reuters.

The market's immediate attention was on Athens where efforts to form a government were expected to fail, putting its ability to meet the terms of its bailout deal in doubt and raising the possibility of Greece being forced out of the euro, it said.

Among the stocks that could be in focus on Thursday are SOUTHERN STEEL BHD [], Sunway Bhd, TRC SYNERGY BHD [], MALAYAN FLOUR MILLS BHD [], KKB ENGINEERING BHD [], SIME DARBY BHD [] and Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE).

Southern Steel has entered into a joint venture (JV) agreement with Belgium-based NV Bekaert SA (NV BK) to form a JV company in Singapore to manufacture specified steel wires in the Asean region. It said in a filing on on Wednesday that it would hold 45% in the JV, with NV BK holding the remaining 55%.

Sunway Bhd's unit Sunway CONSTRUCTION [] Sdn Bhd and TRC Synergy Bhd's subsidiary Trans Resources Corporation Sdn Bhd were among the companies that secured four additional construction packages worth RM3.22 billion for the Sungai Buloh-Kajang MRT.

Sunway Construction was awarded package V4 worth RM1.17 billion, for works between Section 17, Petaling Jaya and the Semantan Portal, while Trans Resources was awarded the Depot package worth RM458.98 million for works related to the Sungai Buloh depot in an open tender category.

Malayan Flour Mills is allocating some RM120 million to expand its flour factory and poultry operations in Malaysia over the next two years. Managing director Teh Wee Chye said the capital expenditure will be financed with the firm's internal funds and bank loans. It has also earmarked US$15 million (RM46.05 million) to expand its two flour factories in Vietnam, he said.

KKB Engineering's net profit for the first quarter ended Mar 31, 2012 fell 60.82% to RM7.71 million from RM19.68 million a year ago, due to the completion of major projects in 2011 and the absence of new projects for both its construction and steel fabrication divisions.

Sime Darby Property and CapitaMalls Asia Ltd will jointly develop a RM500 million shopping mall in Taman Melawati in the Klang Valley. In a joint statement Wednesday, the two companies said they had entered into a conditional agreement to form a 50:50 joint venture to develop the mall on a freehold site in Taman Melawati.

MMHE's net profit for the first quarter ended Mar 31, 2012 fell 39.16% to RM78.27 million from RM128.64 million a year ago, due to the completion of contracts under its engineering and construction arm as well as its marine conversion and repair arm.



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Stocks to Watch CIMB, Kencana, Hartalega, Grand-Flo

KUALA LUMPUR (May 8): A slew of corporate announcements, including CIMB Group Holdings Bhd's planned acquisition of 60% of Bank of Commerce (BoC) in the Philippines, could help pique investors' appetite at Bursa Malaysia on Wednesday.

Elsewhere, investor sentiment remains on tenterhooks as the weekend results of elections in Europe have raised the specter of the troubles faced by the beleaguered eurozone.

Investors sold European shares and the euro on Tuesday, unnerved by the political stalemate in Greece and the threat of a Franco-German split over policies to tackle the region's debt crisis, according to Reuters.

Among the stocks that could be in focus are CIMB Group Holdings Bhd, KENCANA PETROLEUM BHD [], HARTALEGA HOLDINGS BHD [] and GRAND-FLO SOLUTION BHD [].

CIMB Group Holdings has entered into conditional share purchase agreements (SPA) with San Miguel PROPERTIES [] Inc, San Miguel Corporation Retirement Plan and various minority shareholders for the proposed acquisition of 60% of Bank of Commerce (BoC) in the Philippines. In a statement on Tuesday, CIMB said the acquisition was for the equivalent of RM881 million cash.

Kencana's unit Kencana HL Sdn Bhd has been awarded a RM460 million engineering, procurement, CONSTRUCTION [] and commissioning (EPCC) contract from Murphy Sarawak Oil Co Ltd. In a statement on Bursa Malaysia on Tuesday, it said that Kencana HL had received a letter of award from Murphy for the fabrication of offshore topsides.

Hartalega declared a third interim dividend of six sen per share single tier for the financial year ended March 31, 2012, to be paid on June 13. Its net profit for the fourth quarter ended March 31, 2012 fell 4.55% to RM50.01 million from RM52.39 million a year earlier, despite a 24.77% increase in revenue to RM240.22 million.

The company said on Tuesday that the significant increase in revenue was in line with the continuous expansion in production capacity and increase in demand. However, its bottom line was impacted by the increase in raw material prices of nitrile latex, fuel costs and more competitive sales pricing for the current quarter compared with the corresponding quarter of the preceding year, it said.

Grand-Flo's net profit for the first quarter ended March 31, 2012 rose 5.91% to RM2.22 million from RM2.09 million a year earlier, due mainly to strong tracking solutions sales abroad. It said on Tuesday that its revenue jumped 19.6% to RM20.37 million from RM17.03 million. Meanwhile, earnings per share were 1.39 sen compared to 1.44 sen a year ago.

Grand-Flo proposed a final dividend of 1.2 sen per share, comprising a gross dividend of 0.037 sen per share and a tax exempted dividend of 1.163 sen per share for foteh financial year ended Dec 31, 2011. Grand-Flo said that in line its results, it proposed to set a dividend policy to distribute a minimum 20% of its net profit as annual dividends to shareholders effective from the financial year ended Dec 31 2011, subject to shareholders' approval.



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Stocks to Watch F&N, Bumi Armada Bhd, PerMaju Industries Bhd and MSM Holdings Bhd

KUALA LUMPUR (May 7): The FBM KLCI may extend its losses on Tuesday, in line with the tepid investor sentiment at most global markets, after most Asian and European equities were mired in the red following several electoral results in the troubled eurozone area.

Greek and French election results rattled investors on Monday by undermining confidence in the region's plans to cut spending and tackle its debt crisis, sending the euro to a three-month low, according to Reuters.

European shares also initially traded lower, with Greek stocks down 6.4 percent, but reaction was muted with the UK market closed for a holiday. Wall Street stocks were expected to reflect the weaker tone when they were being trading, it said.

Among the stocks that could be in focus on Bursa Malaysia on Tuesday are Fraser & Neave Holdings Bhd (F&N), Bumi Armada Bhd, PERMAJU INDUSTRIES BHD [] and MSM Holdings Bhd.

F&N declared an interim single tier dividend of 20 sen per share for the financial year ending Sept 30, 2012 amounting to RM73 million to be paid on Aug 1. Its net profit fell 18.93% to RM107.01 million in its second quarter ended Mar 31,2012 from RM131.99 million a year earlier as a result of the cessation of its Coca-Cola business and flood disruptions in Thailand.

Bumi Armada Bhd’s unit has secured a five-year contract worth US$65 million (RM198.9 million) to provide an accommodation workboat. The company said on Monday that its subsidiary, Bumi Armada Navigation Sdn Bhd ("BAN") had been awarded the contract by Tecnologías Relacionadas con Energía y Servicios Especializados, SA de CV (TRESE). "The Vessel will be providing accommodation and offshore support services in the Mexican territorial waters."

Meanwhile, Bursa Malaysia Securities Bhd issued an unusual market activity (UMA) query to Permaju Industries Bhd over the sharp rise in the price and high volume in the company’s shares recently.

MSM Malaysia Holdings Bhd profits rose 7.05% in its first quarter ended Mar 31, 2012 to RM66.39 million from RM62.02 million a year ago, due to higher sales volume and average selling prices. It said on Monday that its revenue for the quarter increased 5.68% to RM531.76 million from RM503.17 million a year earlier.



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Stocks to watch MAA Group, Petra Energy, Crest Builder, Malaysian Airline, Air Asia, DKLS

KUALA LUMPUR (May 5): The FBM KLCI could take trend higher next week, as the first quarter earnings reporting season kicks off, and as analysts expect better sequential earnings for companies.

Global stocks swooned and crude oil tumbled on Friday after a weak U.S. jobs report and data that suggested a deeper recession across the euro zone than previously thought dented sentiment, according to Reuters.

Major U.S. and European stock indexes fell more than 1 percent, U.S. crude oil slumped about 4 percent and government debt prices jumped after the Labor Department said American employers reduced hiring more than expected in April, it said.

MIDF Research head of equity Syed Muhammed Kifni said with the earnings reporting season for the first quarter 2012 beginning this week, he expects to see an overall sequential improvement in the bottom line figures.

“Both ours and consensus KLCI earnings growth for this year are estimated at around mid-teens, supported by decent organic earnings growth performance as well as absence of lumpy abnormal losses,” he said.

Syed Muhammmed said that despite recent difficulty of the KLCI to sustain itself above the 1,600 points levels, in our opinion, the recent liquidity-driven rally has not yet ended as the local market undercurrent remains positive.

Furthermore, notwithstanding the feeble dynamics in Europe, risk-on mood is still prevalent on Wall Street as attested by its benchmark index which is stealthily approaching the pre-2008 highs, he said.

“This continuing appetite for risk assets may help the markets in this region to also regain their upward momentum. Hence we believe the KLCI will again attempt to knock against the psychological 1,600 points ceiling in the coming days.

“We reiterate both our year-high as well as year-end 2012 KLCI base case targets of 1,670 points and 1,600 points respectively,” he said.

Among the stocks that could be in focus next week are MAA Group Bhd, PETRA ENERGY BHD [], CREST BUILDER HOLDINGS BHD [], MALAYSIAN AIRLINE SYSTEM BHD [], Air Asia Bhd and DKLS INDUSTRIES BHD [].

MAA Group Bhd is selling its wholly-owned security equipment and services unit for RM7 million, a move which will help the financial services entity focus on its core business.

Petra Energy Bhd declared a final tax-exempt dividend (single-tier) of half a per share for the financial year ended Dec 31, 2011 to be paid on July 13 this year.

The founding family of Crest Builder Holdings Bhd raked in proceeds of RM4.1 million from the sale of five million shares or 4% in the CONSTRUCTION [] firm.

Updates to the exchange show that Yong Tiok Chin who is the daughter of founder and managing director Yong Soon Chow had disposed of the shares at 82 sen each on Thursday.

Shares of Malaysian Airline System Bhd and Air Asia Bhd could continue to be in focus next week after the reversal of their share-swap agreement and the resignation of Tan Sri Tony Fernandes and Datuk Kamarudin Meranun from MAS' board.

DKLS Industries Bhd has inked a heads of agreement with the Selangor State Development Corporation (PKNS) to collaborate in the redevelopment of a 15.9-acre area in Petaling Jaya into a mixed development comprising commercial, retail and residential units.

The company said on Friday that the gross development value of the Proposed Redevelopment was estimated at the range of RM1.5 billion.



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Stocks to watch Fajarbaru, Pharmaniaga, Tasco, Quill Capita, New Hoong Fatt, APFT, MAS, AirAsia

KUALA LUMPUR (May 3): The FBM KLCI could face a struggle to eke out some gains on Friday, as investor sentiment could take a hit by external factors that have plagued global equity markets over the week.

European stocks slipped into negative territory on Thursday after a weaker-than-expected U.S. service sector data cast doubts over the strength of the recovery in the world's biggest economy, according to Reuters.

Most global equity markets trended lower on Thursday after the S&P 500 and the Dow edged lower on Wednesday as data showed that private sector hiring fell far more than expected in April, sparking concerns that Friday's U.S. jobs report will also disappoint investors, according to Reuters.

Among the stocks that could be in focus on Bursa Malaysia on Friday are Fajarbaru, Pharmaniaga, Tasco, Quill Capita, New Hoong Fatt, APFT, MAS and AirAsia.

Fajarbaru Builder Group Bhd has secured a sub-contract worth RM299.84 million to build a power substation from MALAYSIAN RESOURCES CORP []oration Bhd .

The company said on Thursday that its unit Fajarbaru Builder Sdn. Bhd had received a letter of acceptance to build the Kg Kuala Sungai Baru substation and other associated works for the Ampang (AMG) Line Extension project.

PHARMANIAGA BHD [] says first quarter net profit rose 85% from a year earlier as revenue growth mitigated the impact of higher operating cost, besides finance and tax expenses.

In a statement to the exchange, Pharmaniaga said net profit came to RM28.69 million in the quarter ended March 31, 2012 versus RM15.48 million previously as revenue grew 16% to RM446.75 million from RM385.33 million.

The firm said it plans to pay a first interim single-tier dividend of 7.5 sen a share for financial year ending December 31, 2012. Conglomerate BOUSTEAD HOLDINGS BHD [] owns some 72% in Pharmaniaga.

Tasco Bhd net profit for the first quarter ended March 31, 2012 rose 4.6% to RM6.76 million from RM6.46 million a year earlier, due to better margins from its air freight forwarding division arising from urgent export shipments.

The company said on Thursday that its revenue for the quarter edged lower to RM117.89 million from RM118.36 million in 2011.

QUILL CAPITA TRUST [], a commercial and industrial-based real estate investment trust says first quarter net profit rose 5% from a year earlier, helped by higher revenue and lower operating expenses.

In a statement to the exchange, Quill said net profit came to RM8.07 million in the quarter to March 31, 2012 from RM7.68 million previously while revenue was up 2% to RM17.78 million from RM17.51 million.

NEW HOONG FATT HOLDINGS BHD [] net profit for the first quarter ended march 31, 2012 fell 42.1% to RM4.1 million from RM7.08 million a year earlier, due mainly to increased in manufacturing and operating costs as well as higher foreign exchange loss.

The company said on Thursday that its revenue for the quarter edged up 0.6% to RM54.02 million from RM53.71 million in 2011 due to higher demand for export sales.

APFT Bhd’s unit Asia Pacific Flight Training Sdn Bhd (APFTSB), has signed a five-year MPL Services Agreement with Canada-based CAE Inc (CAE) on the Multi-crew Pilot License (MPL) training for AirAsia cadets.

In a statement to Bursa Malaysia on Thursday, A PFT said this was the first and only MPL training in Malaysia.

it said that previous batches of AirAsia CAE MPL cadets were trained in Canada.

Meanwhile, shares of MALAYSIAN AIRLINE SYSTEM BHD [] and AIRASIA BHD [] could extend their gains from Thursday after the airlines said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.



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Stocks to watch Unisem, Daya Materials, Opcom, Heitech Padu, Hock Lok Siew Corp

KUALA LUMPUR (May 2): The FBM KLCI could be hard pressed to sustain its gains on Thursday, as early trade in Europe and Wall Street on May 2 pointed to weaker performance at the equity markets as disappointing euro zone data sparked new concerns over the region's fiscal health ahead of domestic economic data.

Markit's Eurozone Manufacturing Purchasing Managers' Index dropped to 45.9 last month from 47.7 in March, marking its lowest reading since June 2009. European shares erased earlier gains and the euro dropped to its lowest level in two weeks against the Japanese yen., according to Reuters.

A slew of announcemnts on Bursa Malaysia, including that of the termination of the share swap deal between MALAYSIAN AIRLINE SYSTEM BHD [] (MAS) and AIRASIA BHD [] could spur investor activity, but whether the FBM KLCI can advance will be left to be seen.

Among the stocks that could be in focus are UNISEM (M) BHD [], DAYA MATERIALS BHD [], OPCOM HOLDINGS BHD [], HEITECH PADU BHD [] and Hock Lok Siew Corporation Bhd.

Unisem posted net loss RM13.52 million for the first quarter ended March 31, 2012 compared with net profit RM5.09 million a year earlier.

It said that revenue for the quarter fell to RM256.61 million from RM291.97 million in 2011.

Daya Materials Bhd’s unit Daya CMT Sdn Bhd has secured a CONSTRUCTION [] contract worth RM270 million from Yuk Tung Corporation Sdn Bhd.

Daya said that Daya CMT had been awarded the contract as the principal sub-contractor for the development comprising 3-Blocks of 28-Storey mixed development consisting soho units, office lots, podium car park and basement car park at Jalan Sungai Besi in Kuala Lumpur.

Opcom Holdings Bhd, a fibre-optic cable manufacturer, has secured an RM82 million variation order to an existing RM359 million contract with TELEKOM MALAYSIA BHD [].

Opcom said it had secured the RM359 million fiber-to-the-home contract from Telekom in April 2009. Opcom had in May 2011 secured a two-year extension for the project till April 19, 2013.

Heitech Padu Bhd secured a RM15.2 million job from the national registration department.

Hock Lok Siew Corp said on Wednesday that it had been designated a Practice Note 17 company after triggering the prescribed criterias of the Listing Rules.

Meanwhile, the RM1.1 billion share-swap deal involving beleaguered Malaysian Airline System Bhd (MAS) and AirAsia Bhd has been called off, according to filings to Bursa Malaysia Securities Bhd on Wednesday.

Shares in both MAS and AirAsia were suspended from trading on Wednesday ahead of the announcement, but the airlines have not announced when their respective securities would resume trading.

However, if MAS and AirAsia resume trade on Thursday, investor interest would certainly be high given the nature and magnitude of the original deal that is being called off.

In separate announcements, the two airlines on May 2 said they had entered into a Supplemental Agreement to vary the terms and scope of the original collaboration agreement inked last August.

The share-swap last August saw AirAsia’s Tan Sri Tony Fernandes and his partner Datuk Kamarudin Meranun taking up a 20.5% interest in MAS and two board positions, in exchange for Khazanah owning a 10% stake in the regional budget airline.

The airlines said on Wednesday that pursuant to the Supplemental Agreement, they had separately entered into memorandums of understanding (MoU) in respect of firstly, to jointly explore the setting up of the joint-venture company by MAS, AirAsia and AAX to provide aircraft component maintenance support and repair services.

Secondly, the MoU was to establish the broad set of business principles for the establishment of a special purpose vehicle (SPV) by MAS, AirAsia and AAX to improve value for money and increase competitiveness and benefits to customers through procurement synergies by outsourcing to the SPV the procurement processes for identified goods and services in agreed categories



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Stocks to watch Kencana, Pantech, Spritzer, KNM, Silver Bird

KUALA LUMPUR (May 1): The FBM KLCI could be range bound when trading resumes on Wednesday after May Day holiday on May 1, given the absence of fresh catalysts.

The FBM KLCI fell some 25.72 points in April, as investor sentiment took a beating given rising external and domestic uncertainties.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said he expects the FBM KLCI to trend lower in response to rising solvency risk and borrowing cost in Europe (Spain & Italy) and rising local political uncertainties.

“Despite positive comments from the USA Fed on possible monetary stimulus, a weaker than expected read on April Euro zone sentiment and rising European bond yield seemed to bring struggling European growth and debt concerns back into focus.

Most markets in Asia and Europe were closed on Tuesday to mark the May Day holidays and the Monday close at Wall Street was less then encouraging as The S&P 500 posted its first monthly decline since November on Monday, as stocks slipped in one of the lightest trading days of the year on signs the U.S. economy may be slowing and as a recession in Spain highlighted risks in the euro zone.

The Dow Jones industrial average dropped 14.68 points, or 0.11 percent, to 13,213.63. The Standard & Poor's 500 Index fell 5.45 points, or 0.39 percent, to 1,397.91. The Nasdaq Composite Index lost 22.84 points, or 0.74 percent, to 3,046.36.

Among the stocks that could be in focus on Bursa Malaysia are KENCANA PETROLEUM BHD [], PANTECH GROUP HOLDINGS BHD [], SPRITZER BHD [], KNM GROUP BHD [] and SILVER BIRD GROUP BHD [].

Kencana Petroleum Bhd’s wholly owned subsidiary, Kencana HL Sdn. Bhd. ("Kencana HL") in consortium with Shinryo (M) Sdn Bhd has secured an engineering, procurement, CONSTRUCTION [] and commissioning (“EPCC”) from PETRONAS GAS BHD [].

Kencana said on Monday that the contract was for the EPCC of two cogeneration plants, having combined capacity of 50MW of electrical power and steam capacity of 120 ton per hour.

The company said the portion of the contract value for Kencana HL was estimated at RM35 million.

Pantech Group Holdings Bhd Net profit for the fourth quarter ended Feb 29, 2012 surged 90% to RM10.68 million from RM5.11 million a year earlier, due mainly to an increase in revenue.

The company said on Monday that its revenue for the quarter jumped 76.2% to RM128.45 million from RM72.9 million in 2011 due to improved sales demand from oil and gas sector with the on-going new projects.

Earnings per share rose to 2.37 sen from 1.14 sen, whiel net assets per share was 75 sen.

Pantech proposed a final single tier dividend of 1.3 sen per share 20 sen each amounting to RM5.84 million for the financial year ended Feb 29, 2012, subject to shareholders' approval.

Spritzer Bhd net profit for the third quarter ended Feb 29, 2012 jumped 69.4% to RM3.66 million from RM2.16 million a year earlier, due mainly to higher sales of more profitable carbonated and flavoured drinks and natural mineral water products.

The company said on Monday that its revenue for the quarter rose 33% to RM45.22 million from RM34.09 million in 2011 on higher sales volume.

KNM Group Bhd (KNM) has proposed to undertake a fund raising exercise involving a Rights Issuance of RM200 million.

In a filing to Bursa Malaysia Securities Bhd on Monday, KNM said the definitive terms for the Rights Issue would be determined by the Board of the Company subject to the advice of the Company’s Corporate Advisors to be appointed in due course.

Silver Bird Group Bhd’s proposed group restructuring scheme is expected to be finalised by the middle of May 2012 said Silver Bird Group’s chairman of audit committee, Richard Azlan Abas after the company’s AGM on Monday.

“The group restructuring plan will include, but not limited to, capital reduction, share consolidation, rights issue and debt restructuring. However, it is still in its preliminary stage and very fluid. We hope to finalise the proposed plan once we get an agreement from the major stakeholders by the middle of May.” he added.

When asked about the amount of rights issue which the company intends to raise for its restructuring plan, Richard said it would amount to RM60 million.



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Stocks to watch WZ Steel, Pensonic, Bumi Armada, Chin Teck

KUALA LUMPUR (APRIL 28): The FBM KLCI is expected to trend lower next week in response to rising solvency risk and borrowing cost in Europe (Spain & Italy) and rising local political uncertainties.

On the local scene, the outcome of the Bersiih 3.0 rally, and how the ruling Barisan Nasonal government handles the issue will also play heavily on investor sentiment.

U.S. stocks advanced on Friday and posted their best weekly gains in a month as stronger-than-expected earnings from Amazon.com and Expedia Inc reinforced confidence in corporate performance, according to Reuters.

Wall Street managed a fourth day of gains as the strong earnings season outweighed a surprisingly weak reading on first-quarter economic growth, it said.

Next week's release of a slew of economic data on the U.S. labor market and the beginning of the latter half of corporate earnings will be keenly watched to see if they are enough to allow stocks to break above the recent trading range, it said.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said he expects the FBM KLCI to trend lower in response to rising solvency risk and borrowing cost in Europe (Spain & Italy) and rising local political uncertainties.

“Despite positive comments from the USA Fed on possible monetary stimulus, a weaker than expected read on April Euro zone sentiment and rising European bond yield seemed to bring struggling European growth and debt concerns back into focus.

“Following Standard & Poor's downgrade of Spain's long-term sovereign credit rating by two notches (from A to BBB+ with a negative outlook), we expect more selling to weigh on European equities and increase the risk-off appetite for German Bunds and USA Treasuries,” he said.

Among the stocks that could be in focus are WZ Steel Bhd, PENSONIC HOLDINGS BHD [], Bumi Armada Bh and CHIN TECK PLANTATION []S BHD [].

WZ Steel Bhd is acquiring an industrial land in Indonesia’s West Java province for IDR 14.58 billion (RM5.02 million) to build a new factory in the neighbouring country.

In a statement Friday, WZ Steel said it is buying the leasehold tract within the Delta Silicon industrial area in the Lippo Cikarang enclave, from Indonesia-based property developer PT Lippo Cikarang Tbk.

Pensonic Holdings Bhd posted a third quarter net loss on higher as higher revenue failed to mitigate the impact of rising operating cost for the electrical and electronic appliances manufacturer.

Pensonic said net loss came to RM1.14 million in the quarter ended February 29, 2012 against RM896,000 a year earlier. Revenue grew 7% to RM85.08 million from RM79.65 million.

“The decrease was mainly due to lower margin recorded as a result of active promotional activities carried out and also the increases in administration, selling and distribution expenses in current quarter for future expansion,” it said.Bumi Armada Bhd in response to news reports that Ananda was paring down his stake said that enquiries with its major shareholders and directors, it clarified that Ombak Damai Sdn Bhd, Wijaya Sinar Sdn Bhd and Karisma Mesra Sdn Bhd had participated in a book-building exercise conducted by CIMB Investment Bank Bhd .

It said Ombak Damai had participated with 9 million, while Ombak Damai and Karisma Mesra with a joint 284 million shares respectively, accounting for a total of 293 million Bumi Armada shares.

The Edge Financial Daily on Friday reported that Tycoon Ananda Krishnan and his bumiputera partners will sell roughly 15% of offshore services provider Bumi Armada Bhd in private placements to local and foreign institutional investors in a deal that will raise close to RM2 billion.

Financial executives involved in the placement told The Edge Financial Daily that the sale of roughly 440 million shares in Bumi Armada would cut the joint holdings of Ananda and his bumiputera partners to 55% in the company.

Chin Teck net profit for the second quarter ended Feb 29 2012 fell 33.58% to RM9.19 million from RM13.83 million a year earlier due mainly to substantial decrease in profit contribution from its associates.

The company said on Friday that its revenue for the quarter fell 2.44% to RM28.22 million from RM28.93 million in 2011 due to lower average selling prices of FFB, crude palm oil and palm kernel.

For the six moths ended Feb 29, Chin Teck’s net profit fell to RM24.48 million from RM2998 million on the back of revenue of RM60.69 million.



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Stocks to Watch MAHB, TA Global, Maybank, Aliran Ihsan, MPI

KUALA LUMPUR (April 26): The Malaysian stock market may take the cue from domestic concerns ahead of the coming general election, as investors assess the impact of the much-anticipated Bersih 3.0 rally on Saturday.

Analysts said these local factors could have the upper hand in dictating the direction of the FBM KLCI, despite more optimistic sentiment from the global backdrop.

Trading on the local bourse was volatile on Thursday, as the benchmark erased gains to sink into the red before closing up with a 0.34-point gain to 1,579.69. That could be indicative of trading dynamics on Friday.

Stocks to watch on Friday are Malaysia Airports Holdings Bhd (MAHB), TA Global Bhd, MALAYAN BANKING BHD [] (Maybank), ALIRAN IHSAN RESOURCES BHD [], and MALAYSIAN PACIFIC INDUSTRIES [] Bhd (MPI).

Airport operator MAHB said first quarter (1Q) net profit rose 7% from a year earlier, as revenue growth mitigated the impact of higher operating expenses. MAHB said net profit came to RM102.73 million in the quarter ended March 31, 2012, against RM96.09 million previously. Revenue grew 6% to RM657.71 million from RM617.77 million.

TA Global, a property developer and investor, is acquiring the Movenpick Karon Beach Resort in Thailand from Saudi Arabia-based Kingdom Holding Co for US$90.21 million (RM276.94 million), a move which will see the acquirer making its initial venture into Thailand's hotel industry. TA Global said it is purchasing the entire stake in two wholly-owned units of Kingdom Holding — namely, Kingdom 5-KR-194 Ltd and Kingdom 5-KR-195 Ltd, under which the hospitality assets are held.

Maybank and water-treatment specialist Aliran Ihsan shares will trade ex-dividend on Friday. Maybank plans to reward shareholders with a final cash dividend of 36 sen a share, less 25% tax for the six-months ended Dec 31, 2011. Note that Maybank had changed its financial year end from June 30 to Dec 31 in July last year.

Aliran Ihsan plans to pay a single-tier first interim dividend of 8.5 sen a share for financial year ending Dec 31, 2012.

Semiconductor manufacturer MPI said it posted a net loss of RM7.43 million in the third quarter (3Q) ended March 31, 2012 against a net profit of RM5.05 million a year earlier, as revenue fell 18% to RM275.76 million from RM334.82 million. The company said revenue fell as the group registered lower sales in major markets — including European and Asian countries — apart from the US. MPI said it plans to reward shareholders with a second interim tax-exempt dividend of five sen a share for financial year ending June 30, 2012.



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Stocks to Watch Dutch Lady, Opensys, TH Plantations, SunREIT, SEGi

KUALA LUMPUR (April 25): Malaysian stocks are expected to exhibit weak technical dynamics on Thursday against global economic volatility and domestic pre-election sentiment.

Analysts said crucial world highlights include the lack of clarity over European countries' ability to manage their sovereign debt woes, and the direction of US monetary policy, the effects of which may dictate the direction of global equities.

The FBM KLCI erased earlier gains to close in negative territory, with a 2.93-point decline to 1,579.35 on Wednesday.

Stocks to watch on Thursday are DUTCH LADY MILK INDUSTRIES BHD [], Opensys (M) Bhd, TH PLANTATION []s Bhd, Sunway Real Estate Investment Trust (SunREIT), and SEG INTERNATIONAL BHD [] (SEGi).

Dutch Lady and Opensys shares will trade ex-dividend on Thursday. Dutch Lady, a manufacturer of dairy products, plans to reward shareholders with a dividend of RM1.30 a share comprising a single-tier interim payout of 50 sen and a special portion of 80 sen for financial year ending Dec 31, 2012.

Opensys, an information TECHNOLOGY [] firm, plans to reward shareholders with a first interim tax-exempt dividend of 5% which is equivalent to 0.5 sen a share for financial year ending Dec 31, 2012.

MIDF Amanah Investment Bank Bhd downgraded TH Plantations shares to a "trading sell" from "neutral", with a lower target price of RM2.12 compared with RM3 previously. This follows a downward revision in MIDF's earnings forecast for TH Plantations by 41% and 33% in financial years ending Dec 31, 2012 and 2013 respectively.

SunREIT said its third quarter (3Q) net profit rose 9% from a year earlier, as the group registered higher turnover from an expanded property portfolio. In a statement to the exchange, SunREIT said net profit came to RM47.55 million against RM43.73 million previously. Revenue was up 19% to RM98.09 million from RM82.35 million.

Private equity firm Navis Capital has made a takeover offer for the remaining shares it does not own in higher education provider SEGi. This follows a shareholders' agreement between Navis and SEG managing director Datuk Seri Clement Hii Chii Kok, who is also the single-largest shareholder in the education entity. This has, in turn, triggered a mandatory general offer obligation for the remaining stake in SEGi. Navis, which already owns 27.84% in SEGi, is offering RM1.714 for each share, and RM1.214 for each warrant in the higher education firm.



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Stocks to Watch Top Glove, SelProp, MAS, Globetronics, Keck Seng

KUALA LUMPUR (April 24): Malaysian stocks will take the cue from crucial global economic data from Europe and the US as investors assess external factors against domestic pre-election sentiment.

European highlights include the sale of government bonds in Spain and the Netherlands, while across the Atlantic the spotlight will be on indications of more quantitative easing (QE) by US policymakers to sustain the world's largest economy.

Analysts said signs of a further QE may spur global equities while an opposite indication could result in profit taking. In the US, the S&P 500 futures added 3.75 points to 1,366.5, while the Dow Jones Industrial Average futures climbed 30 points to 12,901.

In Malaysia, the FBM KLCI fell 1.52 points to close at 1582.28 points on Tuesday.

Stocks to watch on Wednesday are Top Glove Corp Bhd, Selangor PROPERTIES [] Bhd (SelProp), MALAYSIAN AIRLINE SYSTEM BHD [] (MAS), GLOBETRONICS TECHNOLOGY [] BHD [], and KECK SENG (M) BHD [].

Maybank Investment Bank Bhd has raised its earnings per share (EPS) forecast for Top Glove by 8% to 12% for financial years (FY) ending Aug 31, 2012 to 2014 after taking into account lower prices of natural rubber. Maybank IN, which revised upwards its fair value for Top Glove shares by 29% to RM5.40 from RM4.20, also upgraded the stock to a "buy" from "sell".

SelProp shares will trade ex-dividend on Wednesday. Shareholders have approved the company's plan to pay a first and final dividend of 10%, less 25% tax for the financial year ending Oct 31, 2011.

MAS gained as much as 3.3% or four sen to RM1.27 in intraday trade, against a backdrop of declining crude oil prices. Commodity prices fell on concerns that European sovereign debt woes will curb demand.

Globetronics's first quarter (1Q) net profit declined 4% from a year earlier, as the electronics component manufacturer registered lower revenue and higher operating cost. In a statement to the bourse, Globetronics said net profit came to RM6.2 million in the quarter to March 31, 2012, against RM6.43 million previously. Revenue fell 15% to RM56.79 million from RM67.09 million, as the company registered less turnover from China and Singapore, it said.

Keck Seng — which undertakes oil palm cultivation, besides real estate and hospitality operations — said it plans to reward shareholders with a final dividend of 6%, less 25% tax for financial year ended Dec 31, 2011. The proposed dividend requires shareholders' consent at the firm's coming annual general meeting.



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Stocks to Watch Kencana, SapuraCrest, Oriental, KAF, BAT

KUALA LUMPUR (April 23): Malaysian stocks may see further weakness on Tuesday against less-optimistic fundamental and technical indicators. Analysts have a downside-bias perception on the FBM KLCI in anticipation that global economic data and Malaysia's pre-election sentiment could curb gains across the 30-stock benchmark.

Crucial global highlights this week include potential indications of further quantitative easing by US policymakers, and China's monetary policy, results from which will influence the direction of global financial markets.

The spotlight also falls on Europe after the Flash Purchasing Manager's Indexes for Europe indicated a quicker pace of economic decline for the region. These global updates have resulted in a sell-off across Asian stockmarkets.

The FBM KLCI fell 8.05 points to 1,583.8 on Monday.

Stocks to watch on Tuesday include KENCANA PETROLEUM BHD [], SAPURACREST PETROLEUM BHD [], ORIENTAL HOLDINGS BHD [], KAF-Seagroatt & Campbell Bhd, and BRITISH AMERICAN TOBACCO (M) [] Bhd (BAT).

Shares of Kencana and SapuraCrest rose on news that trading of both stocks will be suspended beginning May 2 to facilitate the capital repayment exercises by the oil and gas support service providers. The capital repayment is in conjunction with the merger of both firms under a new-listed entity, SapuraKencana Petroleum Bhd.

Diversified entity Oriental trades ex-dividend on Tuesday. The company — the portfolio of which includes automotive, property and PLANTATION []s — plans to reward shareholders with a single-tier interim dividend of 3% for the financial year ended Dec 31, 2011. The final lodgement day is this Thursday.

KAF's third quarter (3Q) net profit more than doubled from a year earlier, as the stockbroking firm registered higher non-operating gains, which mitigated the impact of lower revenue and higher operating expenses. In a statement to the exchange on Monday, KAF said net profit came to RM8.62 million in the quarter to Feb 29, 2012 versus RM4 million a year earlier. Revenue fell 15% to RM7.18 million from RM8.45 million.

BAT's net profit rose 9% to RM194.51 million in the first quarter ended March 31, 2012 from RM178.56 million a year earlier, helped by higher revenue and lower operating expenses. The company said revenue rose 5% to RM1.04 billion from RM992.15 million. The tobacco firm plans said it plans to reward shareholders with a first interim tax-exempt dividend of 65 sen a share for the current financial year ending Dec 31, 2012.



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Stocks to Watch Bursa, China Stationery, UMW, CMMT, Naim

KUALA LUMPUR (April 19): Economic and political factors, besides weakening technical indicators, could dictate the direction of Malaysian stocks on Friday, as investors evaluate the impact of global economic data against domestic pre-election sentiment.

Analysts said the on-going European debt crisis and slower growth in China, apart from the anticipation of Malaysia's coming general election, could lead to persistent selling pressure in the FBM KLCI.

The FBM KLCI of 30 stocks erased earlier gains to finish in the red at 1,596.62, down 2.24 points on Thursday.

Stocks to watch on Friday are BURSA MALAYSIA BHD [], China Stationery Ltd, UMW HOLDINGS BHD [], Capitamalls Malaysia Trust (CMMT) and Naim Holdings Bhd.

Bursa posted flat profit growth in the first quarter (1Q), as the stock exchange operator's lower operating expenses mitigated the impact of less revenue during the period. Bursa said its net profit rose 0.7% to RM40.77 million in the quarter ended March 31, 2012 from RM40.49 million a year earlier, while revenue fell 4.8% to RM110.52 million from RM116.11 million.

Regulators have queried China Stationery on the unusual trading patterns of the company's shares. The company said it was not aware of any factors contributing to the rise in the price and volume of the stock. China Stationery also said it had no plans to declare an interim dividend nor undertake a dual listing in Hong Kong.

AmResearch Sdn Bhd had raised its earnings forecast for UMW, an automotive and oil and gas support services entity, by up to 25% for financial years ending Dec 31, 2012 to 2014. AmResearch also revised upwards its target price for the stock by 31% to RM8.90 from RM6.80, and upgraded the shares to a "buy" from "hold".

CMMT's 1Q net profit rose 10% from a year earlier, as the retail-based Real Estate Investment Trust (REIT) registered higher revenue, following the inclusion of the East Coast Mall in Kuantan to the group's portfolio. CMMT said net profit came to RM34.44 million against RM31.44 million previously, while revenue was up 36% to RM71.4 million from RM52.68 million.

Real estate developer and builder Naim is diversifying into the healthcare business via a collaboration with KPJ HEALTHCARE BHD []. Both Naim and KPJ will set up a joint venture company on 30% and 70% basis respectively to construct and operate a hospital in Miri, Sarawak.



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Stocks to Watch PBB, TNB, Eversendai, Century Software, FSBM

KUALA LUMPUR (April 18): External factors — especially those emanating from Europe and the US — are seen as crucial drivers of global stock markets on Thursday. Investors will continue to monitor Spain government bond sales and US corporate earnings as they weigh the impact of pre-election sentiment in Malaysia.

While trading volume across the Malaysian exchange has increased due to transactions for penny and ACE Market stocks, analysts are also mindful of the lower traded value. This, they said, is an indication that the broader market and blue chip stocks could still in consolidation mode due to cautious trade.

The FBMM KLCI of 30 blue chip stocks added 2.67 points to close at 1,598.86 on Wednesday, just short of the psychological 1,600-point barrier. A total of 2.13 billion shares worth RM1.62 billion were traded.

Stocks to watch on Thursday include PUBLIC BANK BHD [] (PBB), TENAGA NASIONAL BHD [] (TNB), Eversendai Corp Bhd, Century Software Holdings Bhd, and FSBM HOLDINGS BHD [].

PBB says its first quarter net profit rose 6% from a year earlier as higher interest and fee-based income, besides lower allowance for impaired loans, mitigated the impact of higher operating expenses. It said net profit came to RM940.81 million in the quarter ended March 31, 2012 against RM884.06 million previously. Revenue was up 13% to RM3.37 billion from RM2.99 billion.

Malaysian Rating Corp Bhd (MARC) has affirmed its AAA ratings for TNB's Islamic bonds with a stable outlook. The rating is supported the utility's economic importance which should ensure a high degree of government financial support to sustain its existing ratings in the future, according to MARC.

South Korea's Hyundai Engineering & CONSTRUCTION [] Co Ltd has roped in Malaysia's Eversendai as a subcontractor for Package 2 of the Qatar National Museum project. The package is worth QAR160 million (RM134 million). Eversendai said it will fabricate and supply steel structures for the construction of the museum.

Century Software has clinched two contracts worth a combined RM5.6 million from the Inland Revenue Board (LHDN). The job includes the maintenance and upgrade of accounting software for the client, Century said.

Information TECHNOLOGY [] firm FSBM will trade ex-rights on Thursday. The firm is undertaking a renounceable rights issue of up to 60.32 million new shares with an equal number of free new detachable warrants at an issue price of 30 sen per rights unit. The exercise is undertaken on the basis of one rights share and one warrant for one existing unit held in FSBM. The rights units will start trading on the local exchange next Tuesday.



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Stocks to Watch Ariantec, V S Industry, Grand-Flo, United Plantations, APM

KUALA LUMPUR (April 17): External factors may continue to have an upper hand in dictating the direction of Malaysian stocks on Wednesday. For now, dynamics of the European sovereign debt market will be closely watched, on concerns that Spain's rising bond yields could threaten the stability of the region's economy.

That, together with the landscape in the US and China, could have an impact on Asian financial markets, as investors evaluate the effects of these major global importers on emerging exporting nations like Malaysia.

The FBM KLCI of 30 stocks fell 1.32 points to close at 1,596.19 on Tuesday.

Stocks to watch Wednesday include Ariantec Global Bhd, V.S INDUSTRY BHD [], GRAND-FLO SOLUTION BHD [], United PLANTATION []s Bhd, and APM AUTOMOTIVE HOLDINGS BHD [].

Bursa Malaysia has queried information TECHNOLOGY [] firm Ariantec on the unusual trading patterns of the stock. It was the most actively traded stocks in the morning session on Tuesday.

V S Industry shares go ex-dividend on Wednesday. The electronic products contract manufacturer plans to pay a second interim single-tier dividend of two sen a share for financial year ending July 31, 2012.

Grand-Flo, an enterprise data collection and collation system solutions provider, plans to reward shareholders with a final dividend of 1.2 sen a share for financial year ended Dec 31, 2011. The firm said that the dividend proposed is in line with its dividend policy, which aims to distribute to its shareholders a minimum of 20% of the group's net profits for each financial year.

United Plantations plans to reward shareholders with a special and final dividend with a combined value of 60 sen a share for financial year ended December 31, 2011. United Plantations said the special portion comprises a 50% gross payment of the stock's par value of RM1 less 25% tax. This translates into 37.5 sen a share. The final dividend of 30% less tax, translates into 22.5 sen.

APM has established a wholly-owned subsidiary, PT APM Auto Components Indonesia, to undertake production and sale of automotive heat exchange products on an industrial lot at Suryacipta Industrial City in Karawang, West Java. It said the Indonesian authorities had approved the deed of establishment of the subsidiary, and that completion of the facility was expected by the end of 2012. Operations would commence in the second quarter of 2013.



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Stocks to Watch Axis REIT, Chin Well, Bumi Armada, CIMB, Hartalega

KUALA LUMPUR (April 16): Malaysia's stock market benchmark could take the cue from external factors on Tuesday as global economic headwinds take centre stage in a still-fragile macro landscape.

Analysts said dynamics across the US, China and European countries will be closely watched as investors assess the impact from these major importing nations on world financial markets.

In Malaysia, it will be interesting to see whether domestic funds could offer adequate support to the FBM KLCI against a still-volatile global backdrop which have thrown most Asian indices into the red.

The FBM KLCI of 30 stocks fell 5.61 points to close at 1,597.51 on Monday.

Stocks to watch on Tuesday include Axis Real Estate Investment Trust (Axis REIT), Bumi Armada Bhd, CHIN WELL HOLDINGS BHD [], CIMB Group Holdings Bhd, and HARTALEGA HOLDINGS BHD [].

Axis REIT's first quarter net profit rose 27% from a year earlier, as a higher top line and a revaluation surplus mitigated the impact of higher expenses. In a statement to the exchange on Monday, Axis REIT said its net profit came to RM20.96 million in the quarter ended March 31, 2012 versus RM16.49 million previously while revenue was up 18% to RM32.29 million from RM27.25 million.

Bumi Armada will offer oil and gas support services to Russia-based OAO Lukoil in a deal worth an estimated U$200 million (RM614 million). In a statement to Bursa Malaysia on Monday, Bumi Armada said the job includes engineering, procurement, installation and pre-commissioning of subsea in-field and inter-field pipelines for the Filanovsky field in the Caspian Sea.

Chin Well, a screw and bolt manufacturer, plans to pay a tax-exempt interim dividend of 2% for the financial year ending June 30, 2012.

Reuters reported that CIMB will enter into an agreement to acquire a controlling 60% stake in the Philippines-based conglomerate San Miguel Corp's unlisted banking arm "soon", quoting a senior board member. The deal will allow San Miguel — the Philippines's most diverse conglomerate — to keep a minority stake in the unlisted bank while focusing on its new ventures such as power, mining, telecoms, infrastructure, and more recently, airlines.

RHB Research Institute Sdn Bhd has slashed its net profit forecast for Hartalega, a nitrile glove manufacturer, by between 6.1% and 18.5% for financial years 2012 till 2014. The research house said it has taken into account the glove manufacturer's lower capacity utilisation, and average selling prices apart for costlier raw material and higher net interest expenses.



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Stocks to watch Eversendai, Boustead, Tenaga, Genting Plantations

KUALA LUMPUR (April 14): Malaysian shares are anticipated to rise next week and analysts expect the FBM KLCI to extend its rally higher supported by positive sentiment on good Q1 earning result, further stimulus from global central banks, easing borrowing costs in Europe and stronger than expected China’s economic recovery.

Investor jitters at the regional markets over rising tensions in the Korean Peninsula dissipated with North Korea’s botched missile launch.

However, euro zone crisis is flaring up and debt auctions by safe-haven Germany and current bad boy Spain in the coming week will provide a gauge how far investor sentiment has changed since the shock and awe of recent ECB liquidity injections has worn thin, according to Reuters.

Affin Investment Bank Bhd vice president and head of retail research Dr Nazri Khan said the impressive rebound made by China stock market (China Shanghai composite posted best-in-two-months daily performance last week) would give more upside momentum to the emerging markets including Malaysia.

“As China is the world's biggest importer of commodities, we reckon stronger Chinese stocks and weaker USA dollar will lead to more commodity buying (FTSE China climbed 4%, CRB Index up 1% and Dollar Index down 2% respectively) which in turn will benefit Malaysian stocks.

Among the stocks that could be in focus on Bursa Malysia are Eversendai Corp Bhd, BOUSTEAD HOLDINGS BHD [], TENAGA NASIONAL BHD [] and Genting PLANTATION []s Bhd.

Eversendai Corp will undertake a 193 million riyal (RM158 million) structural steel job for the railway station at King Abdul-Aziz International Airport in Saudi Arabia.

The company said last Friday that it ha been appointed as subcontractor for the project by Saudi Binladin Group Architecture & Building CONSTRUCTION [] Division.

Bosutead has roped in Luxembourg-based Ikano Holding SA as a joint venture (JV) partner to acquire prime Kuala Lumpur land where both companies intend to develop and manage a shopping centre.

Boustead last Friday said the JV would it to increase its portfolio of retail investment PROPERTIES [] and leverage on its expertise to jointly develop and manage a shopping centre in the Kuala Lumpur city centre location," Boustead said.

Ikano owns and runs IKEA retail outlets across South East Asia under a franchise agreement with IKEA System BV.

Tenaga could extend its gains on Monday on the back of its net profit rising more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd mitigated the impact of costlier fuel to the state-owned utility's profits.

The stock rose 10 sen to close at RM6.61 last Friday.

Genting Plantations will acquire a controlling 63.2% stake in a joint venture (JV) company for US$116 million (about RM355 million), a move which will give the acquirer access to some 74,000 ha of oil palm plantation in Kalimantan, Indonesia.

In a statement to Bursa Malaysia on Friday, Genting Plantations said it would jointly own the Singapore-based JV entity Global Agripalm Investment Holdings Pte Ltd with Global Agrindo Investment Co Ltd which will hold the remaining stake. Global Agrindo is part of Indonesia-based Sin Tek Huat Group.



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Stocks to Watch Axis REIT, K-One Tech, IOI, Tan Chong, TNB

KUALA LUMPUR (April 12): Malaysian stocks could take the cue from China's first quarter gross domestic product (GDP) numbers, and the US corporate earnings dynamics on Friday.

Against the backdrop of external uncertainties, analysts cautioned that the FBM KLCI could see limited gains in the absence of domestic catalysts. The FBM KLCI rose 4.1 points to close at 1,601.27 on Thursday.

Stocks to watch on Friday include Axis Real Estate Investment Trust, K-ONE TECHNOLOGY [] BHD [], IOI Corp Bhd, TAN CHONG MOTOR HOLDINGS BHD [], and TENAGA NASIONAL BHD [] (TNB).

Axis REIT plans to acquire land within Negeri Sembilan's Nilai Industrial Area for RM26.5 million. The leasehold sites will be acquired from LRS Property Sdn Bhd, according to the acquirer.

K-One Tech, an electronic systems manufacturer, said one of its three factories in Ipoh was gutted by fire on Tuesday afternoon. The damaged is estimated at RM13 million, it said.

IOI's 30.4% associate Bumitama Agri Ltd rose as much as 36% on the PLANTATION [] firm's debut on the Singapore bourse on Thursday. Bumitama shares added 27 Singapore cents to an intraday high of S$1.02 (RM2.49) before closing lower at 98 Singapore cents.

CIMB Investment Bank has raised its fair value for Tan Chong from RM4.60 to RM4.75 with a "Neutral" recommendation.

TNB's second quarter net profit rose more than four fold from a year earlier, as a RM2.02 billion fuel-cost compensation from the government and Petroliam Nasional Bhd (Petronas) mitigated the impact of costlier fuel to the state-owned utility's profits.

TNB said its bottom line was also helped by higher electricity sales and foreign exchange translation gains. It said net profit came in at RM2.82 billion in the second quarter ended Feb 29, 2012 against RM641.1 million a year earlier as revenue grew 17% to RM8.63 billion from RM7.37 billion.



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Stocks to Watch S P Setia, Xian Leng, SMPC, MBSB, Yinson

KUALA LUMPUR (April 11): The FBMKLCI could experience some minor pullback amidst cautious trading on Thursday, in line with its regional peers’ performance on Wednesday.

Asian shares fell for a third straight day on Wednesday as investors continued to cut back their risk exposure given uncertainty over global growth prospects and resurfacing worries about debt restructuring in struggling euro zone economies, according to Reuters.

European shares hit a 10-week low on the first trading day after the four-day Easter holiday on Tuesday, and Wall Street's benchmark Standard & Poor's 500 Index followed through with a 1.71% slide, its worst day in four months.

The sell-off was triggered by last Friday's data, which showed a sharp slowdown in US jobs creation last month, along with Tuesday's data, which suggested softening Chinese demand even when Beijing returned to an export-led trade surplus in March, said Reuters.

The mood at the local market may also be impacted by the less that encouraging outlook for Malaysia by the Asian Development Bank (ADB) in its Asian Development Outlook 2012: Confronting Rising Inequality in Asia report.

The ADB said that given Malaysia’s close integration with the world economy — exports and imports of goods and services are equivalent to over 100% of gross domestic product (GDP) — weakness in the global outlook clouds the country’s prospects in 2012.

“Growth is seen moderating to about 4.0% in 2012, then quickening to 5.0% in 2013 as the external environment improves,” ADB said in the report released on Wednesday.

Among the stocks that could be in focus on Thursday are S P Setia Bhd, XIAN LENG HOLDINGS BHD [], SMPC Corp Bhd, MALAYSIA BUILDING SOCIETY BHD [] (MBS), and YINSON HOLDINGS BHD [].

The Securities Commission has approved a proposed RM505 million bond scheme by Setia Ecohill Sdn Bhd, a wholly-owned subsidiary of property developer S P Setia Bhd.

The board of Xian Leng Holdings Bhd will improve the company’s corporate governance, following a special audit which revealed financial irregularities in the commercial breeder of ornamental fish. In a statement to the exchange on Tuesday, Xian Leng said its directors will consider and implement preemptive and corrective measures including the appointments of key personnel to oversee its business. These include a legal advisor and monitoring accountant, apart from an officer in charge of the daily operations of the firm.

SMPC Corp shares rose as much as 7% on Tuesday morning as investors chased the stock before it goes ex-rights on Thursday (April 12). The final day of lodgement is on April 16. The steel manufacturer climbed 17 sen to reach an intraday high of RM2.53, before trading lower at RM2.50 at 11.56am.

Financial services entity MBS — which is paying a final dividend of 7% less 25% tax for financial year ending Dec 31, 2011 — will go ex-dividend on Thursday as well.

Kenanga Investment Bank Bhd has initiated coverage on logistics firm Yinson Holdings Bhd, with an "outperform" call and fair value of RM2.29.



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