Written by Isabelle Francis
Wednesday, 05 August 2009 20:29
KUALA LUMPUR: The selling on Bursa Malaysia was well-absorbed on Aug 5 as institutional players were in the market to pick up selected stocks and big capitalsied counters. This was despite the more cautious key Asian markets.
Insider Asia said the lack of profit taking, even after recent sharp gains, suggested investor risk appetite has returned and many are just waiting for fresh leads to drive the market higher.
After market close, the government announced that Malaysia’s exports fell at the slowest pace in three months in June, adding to signs of a recovery in world demand as the global recession eases. Exports fell 22.6% from a year ago to RM45.1 billion after declining 29.7% in May. This was better than the 25% decline in a survey carried out by economists, according to Bloomberg.
Stocks to watch on Aug 6 include TSR Capital, Axiata, MEMS and NSTP.
TSR Capital received the Negeri Sembilan government's approval to develop a tax-free mall and CIQ complex as well as tourism related projects in the centre of Port Dickson with a gross development value (GDV) of RM1.8 billion.
Axiata is expected to continue generate interest with its recent tie-up Dubai-based Mobile Virtual Network Operator, FRiENDi Group FZ-LLC right. Axiata's Indonesian subsidiary PT Excelcomindo Pratama Tbk had also announced plans to raise US$300 million (RM1.05 billion) via a rights issue.
The Securities Commission has directed MEMS TECHNOLOGY [ TECHNOLOGY 16.860 -0.090 (-0.531%) ] BHD [ MEMS 0.155 -0.010 (-6.061%) ] to exclude a total of RM49.16 million from its revenue for the financial years ended Juy 31, 2007 (FY07), FY08 and the first six months ended Jan 31, 2009.
The SC had ordered it to rectify and reissue the audited financial statements for FY07 by excluding RM13 million from its revenue of RM53.699 million. It was also ordered to rectify and reissue the audited statements for FY08 by excluding RM24.161 million from its revenue of RM71.99 million.
For the six-month period ended Jan 31, 2009, it was directed to rectify and reannounce the unaudited condensed consolidated income statements by excluding RM12.01 million from its revenue of RM37.36 million.
The shareholders of The New Straits Times Press (M) Bhd (NSTP) are mulling various ideas and plans to enhance shareholder which may include a possible privatisation, de-merger and spin off. The company said that however, no date and no firm decision have been taken by NSTP's major shareholders.
Meanwhile, PLANTATION [ PLANTATION 5,760.010 85.120 (1.500%) ] counters would continue generate interest after Dorab Mistry, director of Godrej International Ltd, said palm oil futures may drop to RM2,000 (US$573) a tonne if inventories pick up in September as production peaks. CPO for October delivery rose RM29 to RM2,333.
Another stock-to-watch is LION CORPORATION BHD [ LIONCOR 0.465 -0.010 (-2.105%) ] following a Bloomberg report that said the company’s 90%-owned Megasteel Sdn Bhd plans to sell some of its non-core assets to pay debt. Megasteel is in the "final stage" of negotiating with Bank Pembangunan Malaysia Bhd and its syndicated term-loan lenders in order to meet its financial obligations.