Written by Joseph Chin
Tuesday, 09 February 2010 07:48
KUALA LUMPUR: The bears will be on the prowl again on Tuesday, Feb 9 as markets come under selling pressure with US stocks falling below the crucial 10,000 for the first time since November.
In Japan and Hong Kong, the key indices also fell below the crucial 10,000 and 20,000 levels respectively on Monday. At Bursa Malaysia, the FBM KLCI fell to a three-month low.
There seems to be no firm resolution in sight as to how the governments in the euro zone will be able to resolve sovereign debt troubles.
Investors sold bank shares, sending the 30-stock Dow Jones industrial average down 103.84 points, or 1.04 percent, at 9,908.39. The Standard & Poor's 500 Index dropped 9.45 points, or 0.89 percent, at 1,056.74. The Nasdaq Composite Index declined 15.07 points, or 0.70 percent, at 2,126.05.
At Bursa Malaysia, stocks to watch are WCT BHD [], EON CAPITAL BHD [] (EONCap), HONG LEONG BANK BHD [], MALAYAN BANKING BHD [] and COUNTRY HEIGHTS HOLDINGS BHD [] (CHHB). ALso on the watch list will be ACE Market-listed TEJARI TECHNOLOGIES BHD [].
WCT's 50% owned Cebarco-WCT W.L.L. (CWCT) has received a contract from MAF Investments Bahrain BSC for the Bahrain City Centre in Manama and the final value is RM467 million compared with the initial value of RM246 million.
WCT had received the duly executed contract dated Feb 4 from MAF and the date of full completion and handover is Dec 16, 2010.
Meanwhile, investors are expected to stay on the sidelines over the latest development in the
high-profile potential RM4.92 billion takeover in EONCap by Hong Leong Bank.
Hong Leong Bank rejected a request by Kualapura (M) Sdn Bhd and Lintang Emas Sdn Bhd to retain the offer that has lapsed on Feb 4.
Maybank is scheduled to release its second quarter earnings this evening.
CHHB was slapped with a RM22.6 million bill by the government for real property gains tax (RPGT) for assessment years 1993, 1998 and 1999.
Tejari's single largest shareholder KOM2 Holdings Sdn Bhd has increased its direct holdings to 29.85% stake or 48.66 million shares, raising speculations that a takeover could be on the cards.
Maxis Bhd is looking at providing telecommunication services for at least 100 new commercial buildings this year in the Klang Valley, Johor and Penang, and sees partnership with developers as one of its key strategies.
