Written by Joseph Chin
Wednesday, 17 March 2010 07:39
KUALA LUMPUR: Stocks on Bursa Malaysia could snap the recent losing streak on Wednesday, March 17, after US stocks rose to a fresh 17-month high on Tuesday as investors' sentiment perked up when the Federal Reserve held benchmark rates near zero and maintained its pledge to keep them low for an extended period.
The Dow Jones industrial average gained 43.83 points, or 0.41%, to end at 10,685.98. The Standard & Poor's 500 Index rose 8.95 points, or 0.78%, to finish at 1,159.46. The Nasdaq Composite Index added 15.80 points, or 0.67%, to close at 2,378.01
Stocks to watch on Wednesday include banks, which are the proxy to whether investors believe the market can stage a recovery. CIMB has fallen in recent days and the selling could dry up if investors are convinced about a recovery on Bursa Malaysia.
Other stocks include HONG LEONG BANK BHD [], EON CAPITAL BHD [], Ho Hup CONSTRUCTION [] Company Bhd, SEG INTERNATIONAL BHD [] (SEGi) and Nam Fatt Corp Bhd.
Top Glove Corp Bhd will announce its earnings on Wednesday. HwangDBS Vickers research has raised its target price to RM14.40 based on 15 times PE and rolling forward its valuation to CY11F EPS.
“We remain positive on Top Glove given its strong earnings delivery record. Management raised its dividend payout target to 40% (from 30%), within our expectation,” said the research house.
ASTRO ALL ASIA NETWORKS PLC [] is scheduled to announce its corporate exercise after market close. Analysts speculate major shareholder Ananda Krishnan may be buying either Astro’s 20% stake in an Indian venture, Sun Direct TV or taking the entire Astro group private. The stock is suspended from trading at RM3.56.
Rin Kin Mei, a substantial shareholder of EONCap, has won shareholders' support to appoint seven directors but it may be too early for him to declare victory as Hong Leong Bank has yet to revive its offer to take over the group's assets and liabilities.
HO HUP CONSTRUCTION COMPANY [] Bhd's shareholders, including Low Chee & Sons Sdn Bhd, will have the chance to vote at its EGM to decide whether to replace its existing board or not.
ECOFIRST CONSOLIDATED BHD [] group has proposed to dispose of its collective 19.86% stake comprising 17.69 million shares in education services provider SEGi to Rexter Capital Sdn Bhd (RCSB) for RM30.6 million cash, representing RM1.73 per share.
Nam Fatt dropped 35% in active trade after it was placed under Practice Note 17 of the Main Market listing requirements of Bursa Malaysia Securities Bhd.
