Written by Joseph Chin
Thursday, 03 June 2010 23:44
KUALA LUMPUR: The firmer European markets and Wall Street should underpin investors' confidence to continue to pick up recently battered stocks on Friday, June 4, as confidence returns to US following the latest batch of economic data.
U.S. private sector employers added jobs in May and the services sector increased payrolls for the first time in more than two years, building evidence that the labour market was picking up steam, according to Reuters.
The latest data showed US private employers added 55,000 jobs last month, a bit weaker than forecast but still a sign of improved conditions. April's tally was revised upward to 65,000 from an initially reported job gain of 32,000.
Economists expect Friday's more closely-watched payrolls report, which includes private and public sector jobs, to show the economy added 513,000 jobs in May.
At Bursa Malaysia, the FBM KLCI could test the psychological important 1,300 level after the recent selldown in the market.
Stocks to watch include Kenmark Industrial Co (M) Bhd, PARAMOUNT CORPORATION BHD [], Malaysian Corporation Resources Bhd (MRCB), SCOMI GROUP BHD [] and SUPPORTIVE INTERNATIONAL [] Holdings Bhd.
Kenmark has seen the emerge of a new shareholder in former managing director of KFC HOLDINGS (M) BHD [] (KFCH) Datuk Ishak Ismail who mopped up a 21.14% stake in the furniture makers when the shares plunged to record lows. The shares resume trading on Friday.
Paramount is on track to dispose of its 20% stake in Jerneh Insurance Bhd pending approval from Bank Negara Malaysia, which it hopes will enable it to unlock the value of its investment.
Paramount owns 20% of Jerneh Insurance through its investment arm Paramount Global Assets Sdn Bhd, while JERNEH ASIA BHD [] owns the remaining 80%.
Scomi Group Bhd plans to bid for US$10 billion (RM32.7 billion) worth of monorail projects in Brazil and India this year, and is optimistic of securing some of its jobs.
Out of US$10 billion in projects, four of them are in Mumbai and Bangalore, and are expected to be called in the next few months.
MRCB sees a "good growth" in revenue this financial year ending Dec 31, 2010 (FY10) driven mainly by its engineering and CONSTRUCTION [] business segment.
Its CEO Mohamed Razeek Hussain expected revenue to cross the RM1 billion mark in FY10 compared with RM921.62 million in the previous year boosted by its active ongoing works and healthy order book of about RM3 billion.
Supportive International Holdings has proposed a corporate exercise which includes private placement of 20% of its paid-up and the issuance of 35 million warrants.
As at June 1, its paid-up share capital is RM218.48 million, comprising of 218.48 million shares. The proposed private placement entails issuance of up to 43.69 million new shares.
The company said it had proposed to place out the shares to a strategic investor, namely GEM Global Yield Fund Ltd.
Assuming all the placement shares are issued at an indicative issue price of RM1.48 per placement share based on a subscription price of RM1.64, the exercise will raise up to RM64.672 million.