Written by Joseph Chin
Saturday, 12 June 2010 18:19
KUALA LUMPUR: Key regional markets could perk up on Monday, June 14 underpinned by the firmer close on Wall Street while the CBOE Volatility Index, a gauge of investor anxiety, fell 5.8% to settle at 28.79, its lowest level since May 13.
On Wall Street, the Dow Jones industrial average gained 38.54 points, or 0.38 percent, to end last Friday at 10,211.07. The Standard & Poor's 500 Index rose 4.76 points, or 0.44 percent, to 1,091.60. The Nasdaq Composite Index climbed 24.89 points, or 1.12 percent, to 2,243.60.
For the week, the Dow rose 2.8 percent, the S&P gained 2.5 percent and the Nasdaq advanced 1.1 percent.
Reuters reported that in another bullish sign, the S&P 500 found technical support around the 1,077 level that marks its 14-day simple moving average. The benchmark posted its first back-to-back close above its 14-day SMA since late April.
At Bursa Malaysia, sentiment could firm up further as investors digest news from the 10th Malaysia Plan announced last Thursday. Infrastructure stocks could advance as more jobs are rolled out.
Stocks to watch include PHARMANIAGA BHD [], BOUSTEAD HOLDINGS BHD [], Berjaya Corp Bhd, WAH SEONG CORPORATION BHD [], SAAG Consolidated Bhd and Tomei.
Boustead has launched a RM534 million acquisition of Pharmaniaga Bhd to buy an 86.81% stake from the UEM Group Bhd. The move is seen as crucial for Boustead as it seeks to strengthen its pharmaceutical business.
The offer price works out to RM5.75 per share or a 12% premium to its last traded price on Thursday of RM5.10. Both counters start trading on Monday.
Meanwhile, Berjaya Corp has clarified Ascot Sports Sdn Bhd has the Minister of Finance's approval to conduct a sports betting operations and that the formal licence which was first issued in 1987 is pending re-issuance.
It went on to state that "as such it is evident from the above statements that Ascot has the approval from the Minister of Finance to conduct a sports betting operations and that the formal licence which was first issued in 1987 is pending re-issuance".
In Wah Seong Corp, its managing director and chief executive officer Chan Cheu Leong says the group has an order book of RM1.2 billion, with the bulk or 57 % coming from its pipe-coating business.
He added the company is bidding for RM5.3 billion of projects, most of them located in Malaysia, Australia and Southeast Asia.
Chan said the oil and gas industry will see about US$170 billion being spent on deepwater exploration and production in the next five years, 75% of which will be in the Golden Triangle – comprising Brazil, Mexico and North Africa.
“Deepwater developments present an opportunity as WSC is one of the few companies who have the TECHNOLOGY [] and track record. This will enable us to further expand our core O&G pipe-coating activities, not only in the region but also globally,” said Chan.
Filings to Bursa Malaysia showed that Doraley Assets Management Ltd had sold down its stake in SAAG Consolidated Bhd from June 2 to 9
The British Virgin Islands-registered fund management company sold 60.38 million shares during that period, reducing its stake to 132.58 million shares or 7.34%.
As for Tomei, the country's second largest gold jewellery maker has its own unique means of protecting itself against the price fluctuations of the precious metal. More in The Edge weekly.