Written by The Edge Financial Daily
Wednesday, 19 May 2010 07:45
KUALA LUMPUR: The weak Wall Street will push investors in key regional markets towards the sidelines on Wednesday, May 19 while on Bursa Malaysia, there could be some downside pressure despite strong corporate newsflow
On Wall Street, stocks sank on Tuesday, driven lower as the strengthening of financial regulation from Wall Street to Frankfurt crushed bank stocks, adding to worries about the sustainability of the global economic recovery, according to Reuters.
The Dow Jones industrial average fell 114.88 points, or 1.08 percent, to 10,510.95. The Standard & Poor's 500 Index lost 16.14 points, or 1.42 percent, to 1,120.80. The Nasdaq Composite Index shed 36.97 points, or 1.57 percent, to 2,317.26.
At Bursa Malaysia, stocks to watch include HONG LEONG BANK BHD [], EON CAPITAL BHD [] (EONCap), JERNEH ASIA BHD [], PARAMOUNT CORPORATION BHD [], MUDA HOLDINGS BHD [] and MALAYSIAN RESOURCES CORP []oration Bhd (MRCB).
The Edge FinancialDaily reports Hong Leong Bank may request EON Capital Bhd (EONCap) to make further provisions before the proposed acquisition of the latter is finalised.
Meanwhile, Jerneh Asia Bhd and Paramount Corporation Bhd have written to Bank Negara Malaysia (BNM) to enter into an agreement with a potential buyer for their respective 80% and 20% stakes in Jerneh Insurance Bhd.
MRCB’s net profit surged to RM9.85 million for its first quarter ended March 31, 2010 from RM153,000 a year ago. Revenue rose 24% to RM189.68 million from RM152.59 million. Earnings per share for the first quarter stood at 0.93 sen versus 0.02 sen a year earlier.
MRCB is also expected to benefit from the government’s move to develop most of the government land in the Klang valley. MRCB has the track record and it could work with other developers to undertake the project.
The Edge FinancialDaily also reported the 1Malaysia Development Bhd (1MDB) will lead the development of most of the government land, particularly in the Klang Valley, with the view of ensuring returns to the government are maximised.
SCOMI ENGINEERING BHD [] is hiving off its machine shop business to OMS Holdings Pte Ltd, a unit of Sumitomo Corp Asia Pte Ltd, for US$101.45 million (RM326.67 million) cash.
Scomi Engineering said the sale to Sumitomo Corp Asia, which in turn is a unit of diversified Japanese giant Sumitomo Corp, was likely to be concluded by the end of next month.
In mid-March, Scomi Engineering announced that it was hiving off its machine shop operations for some US$110 million but had kept the name of the buyer under wraps. It had also cautioned that the price tag could vary.
Muda Holdings Bhd has proposed to undertake a RM180 million project to build a new factory and install an additional paper machine in Kajang as it positions itself to be the largest producer of recycled industrial grade paper in the country.
JOBSTREET CORPORATION BHD [] in revising its dividend policy will distribute half of its annual net profit as dividends starting from the the current financial year ending Dec 31, 2010.
FABER GROUP BHD [] will continue to focus on its integrated facilities management (IFM) business going forward, especially in its overseas operations in India and the United Arab Emirates (UAE), said its managing director Adnan Mohammad.