Thursday, 04 February 2010 07:49
KUALA LUMPUR: Key Asian markets are expected to start off on Thursday, Feb 4 on a weaker note after US stocks fell but on the local front, there will be two showdowns -- the EGMs PETRA PERDANA BHD [] and Ho Hup CONSTRUCTION [] Co Bhd.
On Wall Street, US stocks mostly fell on Wednesday, Feb 3 as Pfizer's disappointing outlook weighed on the health sector, and President Obama's pledge to complete banking and healthcare reform revived fears of increased regulation, according to Reuters
The Dow Jones industrial average slipped 26.30 points, or 0.26 percent, to end at 10,270.55. The Standard & Poor's 500 Index fell 6.04 points, or 0.55 percent, to end at 1,097.28. But the Nasdaq Composite Index inched up just 0.85 of a point, or 0.04 percent, to close at 2,190.91.
Stocks to watch include Petra Perdana, Ho Hup, DIGI.COM BHD [], EON CAPITAL BHD [] (EONCap) and Iris Corp Bhd.
At the EGMs of Petra Perdana and Ho Hup, shareholders will decide who takes control in running both companies, albeit rumours that the Ho Hup EGM might be called off due to some legal maneuvering.
Petra’s EGM is for shareholders to decide in removing four directors despite the 11 requisitioners having received suspension letters.The EGM was called following the company's move to sell 25% stake in subsidiary PETRA ENERGY BHD [].
As for Ho Hup, the TC Low faction through Low Chee & Sons Sdn Bhd and Choo Soo Har, intend to move and propose at the EGM, the removal of seven directors from Ho Hup and appoint six persons presumably friendly to Low's cause to go against the existing board’s proposed restructuring scheme for the company still under PN17 status.
One of the main grouses by TC Low’s faction is against the current board led by deputy executive chairman Datuk Vincent Lye over the company’s original regularization plan submitted last October.
As for DiGi, its 4Q net profit fell 12.7% to RM246.48 million from RM282.24 million a year ago, due to higher traffic and network operating costs, and more allowance for doubtful debts.
Interest in the stock would be underpinned by its second interim dividend of 54 sen single-tier exempt dividend to be paid on March 26.
EONCap was downgraded by analysts after it rejected HONG LEONG BANK BHD []’s RM4.92 billion cash offer to take over its assets and liabilities.
Iris Corp Bhd's joint venture has secured a RM259.7 million contract from Bangladesh's government to introduce machine readable passport and machine readable visa.
The JV was appointed to supply the goods and related services for the introduction of these passports and visas in Dhaka.
