Written by Joseph Chin
Saturday, 05 June 2010 20:40
KUALA LUMPUR: Key regional markets will again face a volatile week on Monday, June 7 as sentiment will take a hit from the decline on Wall Street when the indices fell to their lowest since February.
On Wall Street, stocks fell after the US economy added fewer-than-expected jobs in May. Another developing debt crisis, this time in Hungary, also weighed on the markets, according to Reuters.
The Dow Jones industrial average fell 323.31 points, or 3.15%, to 9,931.97. The broader Standard & Poor's 500 Index lost 37.95 points, or 3.44%, to 1,064.88. The Nasdaq Composite Index tumbled 83.86 points, or 3.64%, to 2,219.17.
Stocks to watch on Bursa Malaysia include Berjaya Corp Bhd, OCTAGON CONSOLIDATED BHD [], George Kent (Malaysia) Bhd and Loh & Loh Corp Bhd, TRANSMILE GROUP BHD [].
Business tycoon Tan Sri Vincent Tan said on Saturday he will donate to charity all the RM525 million accrued from the sale of his 70% stake in Ascot Sports Sdn Bhd to BERJAYA CORPORATION BHD [].
Reports state Tan is donating all the proceeds in a move to counter allegations from some quarters that he has been unjustly enriched by the sale of the sports betting entity.
Meanwhile, Octagon Consolidated has proposed a corporate exercise to raise up to RM139.65 million which would involve the issuance of irredeemable convertible unsecured loan stocks (ICULS).
The exercise would involve the renounceable rights issue of up to RM139.65 million nominal value of five-year 5% ICULS at 100% of its nominal value. This would be on the basis of two 30 sen ICULS for every 50 sen share held.
The consortium of Loh & Loh-George Kent-Hazama has secured the RM317.6 million contract for part of the massive Pahang-Selangor raw water transfer project tendered out by the government.
George Kent (Malaysia) Bhd and Loh & Loh Corp Bhd said in separate statements in Friday, June 4 the contract was for Lot 1-3A Semantan intake pumping station and related works of the raw water transfer project.
Transmile Group’s subsidiary Transmile Air Services Sdn Bhd has been served with a winding-up petition after defaulting on the payment of its debt notes.
The petition was presented to the High Court, Kuala Lumpur on May 19 and the petition was served and received on Friday. The matter is fixed for hearing on July 29.
Transmile Air had issued commercial papers/medium term notes with an aggregate face value of RM105 million. It had defaulted in the payment of the notes due on Aug 29, 2008.