Written by Joseph Chin
Tuesday, 06 July 2010 08:03
KUALA LUMPUR: The market is expected to start off on a cautious note on Tuesday, July 6 after six straight days of losses which saw the key FBM KLCI fall below the psychological important 1,300 level on Monday.
The FBM KLCI could trade in a tight range, with some buying support of key stocks but this could be offset by selling of the smaller cap stocks. It remains to be seen if the 30-stock index can hold.
There was also a lack of strong positive corporate developments on Monday which could spur buying interest. With Wall Street closed on Monday, trading interest could be thin.
Stocks to watch on Tuesday are OLYMPIA INDUSTRIES BHD [] which said the increase in pool betting duty from 6% to 8% would have an adverse financial impact on group's operating profit for FY ending June 2011.
However, the impact would be neutral on MULTI-PURPOSE HOLDINGS BHD [] (MPHB) and Berjaya Assets Bhd's subsidiary.
MPHB says the higher pool betting duty imposed on Magnum would be offset by positive contribution from jackpot games.
Berjaya Assets said its 65%-owned subsidiary, Natural Avenue Sdn Bhd, was not expected to be materially impacted by the betting duty hike.
Meanwhile, Faber Group gets RM20.38m contract for Sheikh Khalifa Medical City project in Abu Dhabi, covers maintenance of electrical installations.
EON CAPITAL BHD [] could be in focus as its lawyers may ask for more time to prepare their case at the first court hearing on Tuesday.
Primus Pacific Partners had on June 21, filed a lawsuit against certain directors and shareholders to block the takeover of EON Cap by HONG LEONG BANK BHD [] in a RM5.06 billion deal.
The hearing is set to be heard at the Kuala Lumpur High Court.
Primus, which holds a 20.2% stake in EON Cap, is against the Hong Leong Bank takeover which is estimated at RM7.30 a share. Primus paid RM9.55 a share when it bought into EON Cap in 2007.
Meanwhile, SUNWAY CITY BHD [] (SunCity) expects prices at its property launches to increase by 20% this year compared with 2008 levels. SunCity’s launches for this year will mainly be in the Klang Valley with a gross development value of RM1.5 billion.
Mah Sing’s unit Grand Prestige is teaming up with Damai Sdn Bhd to jointly develop 13.2 acres of residential land in Kinrara.
Under the agreement, Grand Prestige has the exclusive rights to continue with the sales and development of the JV land in return for RM35.40 million which will be paid over 12 months.